Finland to Provide Grant Assistance for Nepal’s Local Climate Adaptation Program

In a significant step towards enhancing climate resilience, Finland has committed to providing grant assistance for the implementation of Nepal’s Local Climate Adaptation Program. The agreement was formalized today at a ceremony held at the Ministry of Finance.

Shree Krishna Nepal, the Joint Secretary and Chief of the International Economic Assistance Coordination Division at the Ministry of Finance, and Riina-Riikka Heikka, the Ambassador of Finland to Nepal, signed the agreement on behalf of their respective countries.

The Council of Ministers had approved the acceptance of this grant assistance in a meeting held on May 20. Under this agreement, Finland will provide 13 million Euros, equivalent to approximately Rs 1.87 billion, to support climate adaptation initiatives at the local levels in the Karnali and Sudur Paschim provinces.

This financial support will be instrumental in addressing the climate challenges faced by these regions, promoting sustainable development, and enhancing the resilience of local communities against climate-related impacts. The programs will commence in the upcoming fiscal year 2024/25.

This agreement builds on a memorandum of understanding signed on July 22, 2023, between the European Union and the Ministry of Finance, further solidifying international cooperation in Nepal’s climate adaptation efforts. The timing of this agreement coincides with the 50th anniversary of diplomatic relations between Nepal and Finland, as well as with the EU, marking a milestone in their longstanding partnership.

The Local Climate Adaptation Program aims to empower local governments and communities by providing the necessary resources and support to implement effective climate adaptation strategies, ensuring sustainable and resilient development in the face of climate change.