As the world’s climate clock ticks louder, Nepal’s call in Rome is not just a plea for help. It’s a reminder that global climate justice begins with recognizing and supporting those most vulnerable.

In a passionate address at the 44th General Assembly of the United Nations Food and Agriculture Organization (FAO) in Rome on Monday, Nepal’s Minister for Foreign Affairs, Dr Arzu Rana Deuba, made a compelling appeal to the international community for immediate support in climate finance and sustainable agriculture, especially for vulnerable mountainous nations like Nepal.

Dr Rana emphasized the urgent need for grant-based international climate finance to help Himalayan countries mitigate and adapt to the growing impacts of climate change. She said that despite being among the most climate-vulnerable areas globally, Nepal’s mountainous regions remain neglected in international climate funding.

“The mountainous region of Nepal and countries like Nepal are the most vulnerable due to the climate crisis. However, these areas have been neglected in climate finance and adaptation efforts. It is essential that all those concerned over this issue pay attention to it,” Minister Rana said.

Agriculture and Climate: A Crucial Intersection

Minister Rana highlighted that agriculture remains the backbone of Nepal’s economy, contributing around 23 per cent to the country’s gross domestic product (GDP) and sustaining nearly two-thirds of its population. She underscored the role of agriculture in ensuring food security, alleviating poverty, and advancing rural development.

While acknowledging global efforts toward ending hunger by 2030, Rana expressed concern that the vision remains unfulfilled, with challenges from climate change, pandemics, economic instability, and geopolitical tensions. She called for the promotion of sustainable and resilient mountain agriculture, not only to protect livelihoods but also to safeguard biodiversity and maintain ecological balance.

“We are seeking collaboration to expand farmers’ access to early warning systems. In the context of increasing climate risks, we expect stronger collaboration with FAO,” she said, urging greater investment in mountain farming and the inclusion of women and youth in leadership roles.

On the Frontlines of Climate Change

Nepal has experienced a string of severe climate-related disasters in recent years, including a Glacial Lake Outburst Flood in the Everest region this month, widespread forest fires earlier this year, and devastating floods in Kagbeni (2023) and Melamchi (2021). Beyond these catastrophic events, slower-onset climate changes are also driving poverty, displacement, and economic strain.

Implementing Nepal’s climate goals will require massive financial commitments:

• USD 33 billion to meet its Nationally Determined Contribution (NDC) goals by 2030,
• USD 47.4 billion for its National Adaptation Plan (NAP) through 2050, and
• USD 196 billion to achieve net-zero emissions by 2045.

However, Nepal can only contribute a fraction of this — just USD 1.5 billion — highlighting a stark financial gap that must be filled by international partners.

Strengthening Domestic Climate Finance

Though Nepal has introduced climate budget tagging to track climate-related public spending, gaps remain in strategy, transparency, and alignment with national climate goals. The current system lacks provisions for local-level tracking or identifying spending with negative environmental impacts.

Experts argue that Nepal must integrate climate change into its entire public financial management system. This includes introducing environmental criteria into investment evaluations and conducting climate-risk assessments for all public projects. Moreover, the Ministry of Finance (MoF) must take a leading role in coordinating cross-sectoral climate policy and mobilizing international funds.

Mobilizing Private Sector and Learning from Mongolia

Nepal’s financial regulators are beginning to take action. The Central Bank has issued Environmental & Social Risk Management (ESRM) guidelines and is drafting a green finance taxonomy to steer investments toward environmentally sustainable projects. It has already enacted policies favoring electric vehicle financing while discouraging fossil-fuel vehicle purchases.

Still, Nepal lags behind other nations. Mongolia, for instance, has mobilized USD 468 million from the Green Climate Fund, issued its first green bond worth USD 60 million, and adopted a sustainable finance roadmap with concrete targets for banks. In contrast, Nepal has only accessed USD 112 million, due to limited institutional capacity and a lack of bankable green projects.

Smart Development Choices Needed

With over USD 7.4 billion in pledged support for green, resilient, and inclusive development (GRID), Nepal must ensure that projects truly align with climate goals. Misclassifying traditional infrastructure — such as multi-lane highways — as green development poses a serious risk of greenwashing. The government must prioritize investments in public electric transport, railways, and low-carbon infrastructure over carbon-intensive alternatives.

According to experts, the promise by developed countries to provide USD 100 billion annually by 2020 was only partially met by 2022. Moreover, the majority of international climate finance comes as loans — around 69 per cent in 2022 — rather than grants, burdening countries like Nepal with unsustainable debt while they deal with escalating climate impacts.

Experts say that Nepal cannot afford to delay action any further. The government must continue mobilizing domestic public finance, incentivize private green investments, and consider new revenue mechanisms like a carbon tax. But lasting change requires institutional reform, strong governance, and global solidarity.

“Ensuring a successful transition and financing climate resilience are primarily government responsibilities and should not be left to the free market,” the Minister concluded.