Climate change has been a major concern and created additional stress to the least developed and developing countries across the world. Global climate risk index 2014 identified Nepal as 14th most vulnerable country to risk of climate change. To address the challenges additional finance is required so, the study of climate finance governance was very crucial. The study aimed to increase the understanding of the state of climate governance and identied the gaps. The climate change policy 2011 states that 80 percent of total available fund should reach the community level. In reality less than half of fund actually reached the local level. The study provided recommendation to GoN to make substantial improvement in the implementation domain. Climate finance governance still faces challenges at both conceptual and operational level.