Download Session 6.2.2 Nepal - Climate Change Finance and Development

INTEGRATING CLIMATE CHANGE FINANCE
WITHIN LOCAL PLANNING AND BUDGETING IN
NEPAL
Ramesh Kumar Adhikari
Under Secretary
Ministry of Federal Affairs and Local Development(MOFALD)
Government of Nepal
Policy Context
• Climate Change Policy, 2011.
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Vulnerability Assessment
Capacity Enhancement
Resource Allocation
Mainstreaming in Planning Process
Social Mobilization
• National Periodic Plan (2013/14-2015/16)
– Information Dissemination
– Integration in Development Programs
– Capacity for Climate Change Resilient
• Climate Change Budget Code, 2012
– Budget tracking
NAPA/LAPA
• National Adaptation Program of Action (NAPA)
– Country Vulnerability Assessment
– Coping Strategy Development
– Community Engagement
( The total cost for implementing National Adaptation program of Action
(NAPA) is estimated at US$ 350 million)
• Local Adaption Plan for Action (LAPA)
– Integrating climate change into local participatory
planning process.
– Implementing adaptation actions
(80% of estimated NAPA cost is committed to be spent at the local village/municipal level)
MOFALD’s Innovation / Initiation
• Environment Friendly Local Governance (EFLG)
Framework
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Environment
Climate Change Resilience
Disaster Risk Reduction
Solid Waste Management/Sanitation
• CPEIR initiation
– Fact and insight of Climate Change Finance
– Basis for Climate Budget Code
Climate Change Expenditure
Rapid Rise in
Total National
Budget:
Climate Budget as a Proportion of
Total Budget
(Current Prices)
400,000,000
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
Even more
rapid rise in
Climate
Change
Budget:
Climate
Change
Budget
100,000,000
50,000,000
0
Other
Climate Public Expenditure
• About 2 % of GDP and 8% of
Government Expenditure is on climate
activities . The trend is increasing.
• Around 80% of climate change
expenditure relates to adaptation
activities.
• Around 60% of the expenditure is
executed directly by Central Agencies
and 40% through Local Agencies
(Unconditional Capital grants ).
Strengths /Opportunities
– Mainstreaming climate change into national and local development
planning and budgeting process
– Local initiatives and some discretion on revenue and expenditure
– Compliance of National guidelines and directives in local development
planning and budgeting by local bodies
– Strong social mobilization
– Capacity development of stakeholders
Challenges
• Offering to Covering (people, place and purpose)
• Sensitize to Satisfy (time, resource, efforts)
• Exclusive to Inclusive (country partner, development partner)
Way Forward
• Undertake Climate Change Public Expenditure Institutional
Review (CPEIR) regularly to track climate change
expenditure
• Follow orientation -consultation –consensus approach on
climate change issues among stakeholders to strengthen
climate change resilience
• Integrate climate change component in Minimum
Conditions Performance Measure (MCPM) system and
provide incentive accordingly
Thank You All!!
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