Climate change has created additional stresses to least developed and developing countries that are already vulnerable to existing socio-economic conditions. As additional finances is thus required to address these challenges. In practice, the climate finance adaptation has not been much differentiated from regular developmental activities. Thus, the study of climate finance governance is very crucial.
Nepal ranks 14th in the countries that are vulnerable to impacts of climate change. After CoP 2009 held in Copenhagen, Nepal progressed in developing climate-related policies, plans and acts. However, gaps exist. The climate change policy 2011 states that 80 per cent of the total available fund should reach the community level. But it has failed to devise proper mechanisms to transfer fund. In reality, less than half of the fund actually reaches to the local level. NAPA on the hand has also failed to capture local needs. Similarly, the LAPA clearly mentions the need to support adaptation planning through the meaningful participation of stakeholders however, it lacks a mechanism to explicitly seek out and incorporate available scientific knowledge into the planning process. It does not consider the climate change element in assessing vulnerability. The latest addition to Nepal’s commitment to addressing climate change is the submission to the UNFCCC of its nationally determined contributions. The country has specified commitments but this looks ambitious. Any target for reducing the emission of greenhouse gases has not been mentioned. The are several agencies in the Government responsible for climate finance governance such as NPC, MoF, MoFE, MOFAGA, and other sectoral departments along with provincial and local governments, the proper coordination and cooperation among these organization or bodies are poor which is directly affecting implementation.