Legal and Policy Framework in Climate Change by Rabindra

Legal and Policy Framework in Climate Change by Rabindra

1. UNIT 6: LEGAL AND POLICY FRAMEWORK ON CLIMATE CHANGE

2. Contents UNIT 6: LEGAL AND POLICY FRAMEWORK ON CLIMATE CHANGE [8] 6.1 Climate policies and institutions (UNFCC, IPCC, COP) at the international level: debates on climate change mitigation and adaptation; debates on climate justice 6.2 Climate change policy at the National, Province and Local context: national climate change policy; adaptation planning (NAPA, LAPA, NAP), loss and damage (L&D) 6.3 Climate financing, institutions, technology and capacity building, 6.4 Cross cutting issues: Gender, indigenous community, governance, political economy

3. UNFCC The UNFCCC was adopted on May 9, 1992, during the Rio Earth Summit (United Nations Conference on Environment and Development) in Rio de Janeiro, Brazil. Formal Inception Opened for Signature : May 9, 1992 Entry into Force : March 21, 1994 Initial Participating Countries : 154 nations signed the convention at the Rio Summit Nepal signed for UNFCCC on 12 June 1992

4. UNFCC Objectives of UNFCCC The primary objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. 1) Enhancement of green energy utilization 2) Develop renewable energy sources. 3) Limit and reduce of transport and waste management-related emissions. 4) Policy reform to support GHG limits and reductions. 5) Achieve stabilization of greenhouse gas concentrations to prevent dangerous anthropogenic interference.

5. UNFCC UNFCCC Permanent Bodies Conferences of the Parties(COP): It is the supreme decision making group of UNFCCC. Arranges formal meetings to assess progress in dealing with climate change Subsidiary Bodies: Assists the Conference of the Parties. 1. Subsidiary Body of Scientific and Technological Advice (SBSTA) is established to provide information and advice on scientific and technological matters relating to the convention. It serves as a link between assessments provided by IPCC. 2. The Subsidiary Body of Implementation (SBI) is established to assess and review the effective implementation of the convention. It makes recommendations on policy and implementation. Secretariat: United Nations entity tasked with supporting the global response to the threat of climate change.

6. UNFCC Parties Annex 1: Developed countries like USA, UK and Russia + Economies in Transition (EIT) like Ukraine, Turkey and some East European countries are a part of Annex 1 countries. Annex 2: Developed countries are a part of it. These countries are required to provide financial and technical support to EITs and developing countries to assist them in reducing their emissions. Annex B: Annex 1 countries with first or second round Kyoto GHG emissions targets come under it. The first-round targets apply over 2008-12 and the second-round targets apply over 2013- 20. Countries under Annex B have compulsory binding targets to reduce GHG emissions. Non-Annex 1: Parties to the UNFCCC not listed under Annex 1, include mostly the low-income developing countries and have no binding emission reduction targets are in Non-Annex 1. LDCs: These refer to the least-developed countries and have no binding GHG reduction targets.

7. UNFCC

8. UNFCC

9. IPCC Intergovernmental Panel on Climate Change (IPCC) The Intergovernmental Panel on Climate Change (IPCC) is an intergovernmental body of the United Nations responsible for advancing knowledge on human-induced climate change. Established by: World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP), and endorsed by United Nations General Assembly. Founded: 1988 Headquarter: Geneva, Switzerland (comprised of 195 member states) Awards: The IPCC shared the 2007 Nobel Peace Prize with Al Gore for contributions to the human understanding of climate change. Thousands of scientists and other experts volunteer to review the data and compile key findings into "Assessment Reports", described as the most prominent peer review process in the scientific community. Reports plays role in COP of UNFCCC.

10. Objectives of IPCC: To provide regular assessments of the scientific basis of climate change, its impacts and future risks, and options for adaptation and mitigation.

11. IPCC

12. IPCC

13. IPCC

14. Conference of the Parties (COP) The COP is the supreme decision-making body of the UNFCCC, meeting annually since 1995, with the first meeting in Berlin, Germany, in March 1995. It reviews the implementation of the Convention and other legal instruments, taking decisions to promote effective action, including institutional and administrative arrangements. Key tasks include reviewing national communications and emission inventories, assessing progress, and negotiating agreements.

15. COP Year Location Key Achievements COP1 1995 Berlin, Germany The Berlin Mandate established a process to strengthen commitments of developed countries, leading to the Kyoto Protocol. COP2 1996 Geneva, Switzerland The Geneva Declaration endorsed the IPCC Second Assessment Report and called for legally binding mid-term targets. COP3 1997 Kyoto, Japan Adoption of the Kyoto Protocol , the first legally binding agreement for developed countries to reduce greenhouse gas emissions by an average of 5% below 1990 levels during 2008-2012. COP6 2001 Bonn, Germany The Bonn Agreements resolved most operational details of the Kyoto Protocol after initial talks stalled at COP6 in The Hague. COP7 2001 Marrakech, Morocco The Marrakech Accords established detailed rules for implementing the Kyoto Protocol and set up new funding mechanisms including the Special Climate Change Fund and Least Developed Countries Fund. COP8 2002 New Delhi, India The Delhi Ministerial Declaration emphasized adaptation and called for technology transfer to developing countries. COP11 2005 Montreal, Canada The Kyoto Protocol officially came into force . The Montreal Action Plan initiated a two-track approach to future climate action. COP12 2006 Nairobi, Kenya Adoption of the Nairobi Work Programme on impacts, vulnerability, and adaptation to climate change for developing countries. COP13 2007 Bali, Indonesia The Bali Road Map established a framework for climate change mitigation negotiations and introduced the four pillars of climate action: mitigation, adaptation, technology, and financing.

16. COP Year Location Key Achievements COP15 2009 Copenhagen, Denmark The Copenhagen Accord recognized the need to limit global temperature increase to 2°C and established a goal of mobilizing $100 billion annually by 2020 for developing countries. COP16 2010 Cancún, Mexico The Cancún Agreements established the Green Climate Fund , the Technology Mechanism, and a framework for adaptation. COP17 2011 Durban, South Africa The Durban Platform for Enhanced Action launched negotiations for a new legal agreement applicable to all parties, setting the foundation for what would eventually become the Paris Agreement. COP19 2013 Warsaw, Poland Establishment of the Warsaw International Mechanism for Loss and Damage to address climate change impacts in vulnerable developing countries. COP20 2014 Lima, Peru The Lima Call for Climate Action required countries to publish their Intended Nationally Determined Contributions (INDCs) ahead of COP21. COP21 2015 Paris, France Adoption of the Paris Agreement , a landmark accord to combat climate change by limiting global warming to well below 2°C above pre-industrial levels, with efforts to limit it to 1.5°C. COP22 2016 Marrakech, Morocco The Marrakech Action Proclamation reaffirmed global commitment to the Paris Agreement and launched the Marrakech Partnership for Global Climate Action. COP23 2017 Bonn, Germany (Fiji Presidency) Launch of the Talanoa Dialogue and the Ocean Pathway Partnership recognizing the critical role of oceans in climate regulation. COP24 2018 Katowice, Poland The Katowice Climate Package (Paris Rulebook) set detailed guidelines for implementing the Paris Agreement, including rules for reporting and reviewing countries' climate actions.

17. COP Year Location Key Achievements COP25 2019 Madrid, Spain (Chile Presidency) Launch of the Santiago Network for Loss and Damage , though key decisions on carbon markets (Article 6) were postponed. COP26 2021 Glasgow, UK The Glasgow Climate Pact reaffirmed the 1.5°C goal, included pledges on methane emissions, deforestation, coal phase-down, and finalized rules for international carbon markets under Article 6. COP27 2022 Sharm El-Sheikh, Egypt Historic agreement to establish a Loss and Damage Fund to provide financial assistance to nations most vulnerable to the effects of climate change. COP28 2023 Dubai, UAE The UAE Consensus marked the first explicit mention of transitioning away from fossil fuels in a COP agreement and operationalized the Loss and Damage Fund with initial pledges exceeding $700 million. COP29 2024 Baku, Azerbaijan. Calls on “all actors” to raise at least $1.3 trillion per year, and on developed countries to lead the mobilization of at least $300 billion, by 2035.  COP30 2025 Belém, Brazil

18. Mitigation vs. Adaptation: Which Should Take Priority? Pro-Mitigation Argument: Advocates argue that mitigation tackles the root cause—and is crucial to limit long-term damage. IPCC emphasizes the urgency of reducing emissions to keep global warming below 1.5°C, warning that exceeding this threshold could lead to catastrophic, irreversible consequences. Focusing on mitigation now, could reduce the need for extensive adaptation later. Pro-Adaptation Argument: Critics counter that climate change is already happening, with impacts like heatwaves, floods, and droughts affecting millions. They argue that adaptation is a practical necessity, especially for vulnerable populations who lack the means to wait for mitigation efforts to take effect. Some view overemphasizing mitigation as neglecting immediate human suffering. Middle Ground: Many experts suggest an integrated approach, arguing that mitigation and adaptation are complementary. Mitigation reduces future risks, while adaptation addresses present. However, agreeing on the balance remains difficult, often influenced by political and economic priorities.

19. Mitigation Costs: Supporters of less aggressive mitigation policies, like carbon taxes or renewable energy subsidies, say they are costly to the economy, especially for fossil fuel-dependent industries. Moving to a low-carbon economy could put pressure on jobs, for instance in coal mining. Critics also raise doubts about the possibility of scaling up technologies such as carbon capture to the level required in a relatively short time. Adaptation Costs: Adaptation measures, e.g., enhancing infrastructure or relocating communities, are also costly. These critics argue that in some instances, the costs may outweigh the benefits, especially if climate impacts turn out to be worse than expected Counterpoint: The advocates of both strategies stress the long-term benefits. Mitigation could prevent costly damages, while adaptation could help economies avoid disruptions like crop failures or flooding. But the issue of who should bear the costs has remained unresolved: do the developed nations, who have emitted the most greenhouse gases in the past, or does every country share this burden? Debate on Economic Costs and Feasibility of Adaptation and Mitigation

20. Climate Justice Climate justice is a type of environmental justice that focuses on the unequal impacts of climate change on marginalized or otherwise vulnerable populations. Climate justice seeks to achieve an equitable distribution of both the burdens of climate change and the efforts to mitigate climate change. The objectives of climate justice can be described as: "to encompasses a set of rights and obligations, which corporations, individuals and governments have towards those vulnerable people who will be in a way significantly disproportionately affected by climate change. It seeks solutions that address the root causes of climate change and in doing so, simultaneously address a broad range of social, racial, and environmental injustices.

21. 1. Just Transition Just transition represents the transition of fossil fuel-based economies to equitable, regenerative, renewable energy-based systems. However, a just transition is not only centered around technological change. It emphasizes employment in renewable energy and other green sectors, sustainable land use practices, and broader political economic transformations.

22. 2. Social, Racial and Environmental Justice Climate justice connects the climate crisis to the social, racial and environmental issues in which it is deeply entangled. It recognizes the disproportionate impacts of climate change on low-income and BIPOC communities around the world, the people and places least responsible for the problem. 3. Indigenous Climate Action Indigenous communities around the world are facing some of the most severe climate impacts. Indigenous communities are not only reliant on their surrounding ecosystems for their lives and livelihoods; their identities are also deeply interwoven with the land and water. As a result, Indigenous Peoples are leading efforts in climate change mitigation and adaptation across the globe.

23. 4. Community Resilience and Adaptation 5. Natural Climate Solutions Natural climate solutions recognize the importance of forests and agricultural lands as critical ecosystems for equitable climate action. From a climate justice perspective, natural climate solutions take a systems approach and include regenerative farming, agroforestry, permaculture, urban gardens, and forest restoration. 6. Climate Education and Engagement Climate education is essential for widespread climate action, and this is necessary given the existing misinformation and denial. It demonstrate how climate change impacts social justice, racial inequality, and the environment. The public will know why equity is crucial in the fight against the crisis. This understanding can lead to civic engagement.

24. National Climate Change Policy, 2019 The National Climate Change Policy, 2019, of Nepal aims to create a climate-resilient society and to support the country’s socio-economic development while managing the risks of climate change. The policy is formed because of Nepal’s fragile topography, high climate vulnerability, and low emissions contribution, This policy focuses on adaptation, resilience building, and green economic transformation. https://faolex.fao.org/docs/pdf/nep199367.pdf

25. National Climate Change Policy, 2019 Goal “To contribute to socio-economic prosperity of the nation by building a climate resilient society” Objectives To enhance climate change adaptation capacity of persons, families, groups and communities vulnerable to, and at risk of, climate change; To build resilience of ecosystems that are at risk of adverse impacts of climate change; To promote green economy by adopting the concept of low carbon emission development; To mobilize national and international financial resources for climate change mitigation and adaptation in just manner; To conduct research, make effective technology development and information service delivery related to climate change; To mainstream or integrate climate change issues into policies, strategies, plans and programs at all levels of State and sectoral areas; To mainstream gender equality and social inclusion (GESI) into climate change mitigation and adaptation programs"

26. Policy Area Policy Focus Key Strategies and Working Policies Sectoral Policies 1. Agriculture and Food Security Climate-smart agriculture - Climate-resilient crops for dry and waterlogged areas - Water-efficient irrigation and organic farming - Crop diversification and home gardens for nutrition security - Climate-induced disaster (risk) insurance for farmers 2. Forest, Biodiversity, and Watershed Conservation Sustainable environmental services - Sustainable forest management to increase carbon sequestration - REDD+ for reducing deforestation emissions - Integrated watershed management in climate-sensitive areas - Protection of endangered species and ecosystems 3. Water Resources and Energy Efficient water and energy management - Rainwater harvesting and groundwater recharge - Low-carbon energy promotion (hydropower, solar, bioenergy) - Infrastructure design for climate resilience - Monitoring of glacial lakes to prevent outbursts 4. Rural and Urban Settlements Climate-resilient urban planning - Land use planning based on climate risk - Incorporating green spaces in cities - Construction of cycle lanes and footpaths - Climate-friendly building standards Sectoral and Inter-Sectoral Policies, Strategies, and Working Policies

27. Policy Area Policy Focus Key Strategies and Working Policies Sectoral Policies 5. Industry, Transport, and Infrastructure Low-carbon economic development - Energy-efficient technologies in industries - Promotion of electric vehicles - Climate risk assessment in infrastructure development - Air transport emission reduction strategies 6. Tourism and Cultural Heritage Sustainable tourism - Eco-tourism and green trekking routes - Climate-friendly infrastructure in tourist destinations - Conservation of climate-vulnerable cultural heritage 7. Health, Drinking Water, and Sanitation Public health resilience - Early warning systems for climate-induced diseases - Safe drinking water programs - Waste management for pollution control 8. Disaster Risk Reduction and Management Minimizing climate disaster impacts - Expansion of weather stations and early warning systems - Integration of climate adaptation into disaster risk reduction - Community-based disaster response mechanisms Sectoral and Inter-Sectoral Policies, Strategies, and Working Policies

28. Policy Area Policy Focus Key Strategies and Working Policies Inter-Sectoral Policies 9. Gender Equality and Social Inclusion (GESI), Livelihoods, and Good Governance Inclusive climate policies - Climate programs targeting vulnerable groups (women, indigenous people, marginalized communities) - Ensuring transparency and participation in decision-making 10. Awareness Raising and Capacity Development Climate education and awareness - Inclusion of climate change topics in school curricula - Training programs for local government officials - Use of media for public awareness 11. Research, Technology Development, and Expansion Strengthening scientific understanding - Regular monitoring of climate risks (glacial lake outbursts, floods, landslides) - Promotion of green technology and indigenous knowledge - Development of climate risk assessment tools 12. Climate Finance Management Mobilizing financial resources - Access to international climate funds (Green Climate Fund, REDD+, Adaptation Fund) - Budget allocation for climate adaptation at all government levels - Encouraging private sector investments in green projects Sectoral and Inter-Sectoral Policies, Strategies, and Working Policies

29. National Climate Change Policy, 2019 Climate Finance and Legal Provisions International finance mobilization (Green Climate Fund, Adaptation Fund, REDD+). Carbon trading mechanisms should be established. All levels of government (Federal, Provincial and Local) need sectoral climate budget allocations.

30. National Climate Change Policy, 2019 Strengths of the Policy The policy adopts multi-sectoral structure which addresses all essential climate-sensitive sectors. The policy combines adaptation and mitigation approaches to establish resilience-building measures. The policy aligns to international agreements which include the Paris Agreement together with the Kyoto Protocol and Sendai Framework. The policy places local governance together with community-based adaptation at its core. The policy maintains a dedicated focus on integrating gender equality and social inclusion (GESI) throughout climate planning processes.

31. National Climate Change Policy, 2019 Weaknesses and Challenges The limited financial and technical capacity for policy implementation especially at the local level. Lack of coordination mechanism for Multiple ministries, agencies and stakeholders. Challenges in accessing international climate finance, including delays in fund disbursement. There are gaps in climate data and research which obstructs evidence-based decision making. There are no enforcement mechanisms in place which makes compliance uncertain.

32. National Adaptation Plan (NAP) NAP sets out priority programmes in the nine thematic sectors as outlined in the National Climate Change Policy (2019). Include adaptation actions that are best able to address climate vulnerabilities and risks in the short (2025), medium (2030), and long-term (2050) 64 priority programmes were identified. total budget of Nepal NAP implementation is USD 47.4 billion Nepal will contribute USD 1.5 billion and external support of USD 45.9 billion is required to implement the NAP to 2050.

33. Vision To contribute to the socio-economic prosperity of the nation by building a climate-resilient society and reducing the risk of climate change impacts on people and ecosystems through the integration of adaptation across sectors and levels of government. Goals Build the adaptive capacity and resilience of key natural, social, and economic sectors vulnerable to and at risk of climate change, and service providers. Integrate climate change issues into policies, strategies, plans, and programs of all sectors and at local, provincial, and federal levels emphasizing Gender Equality, Social Inclusion, Livelihoods and Governance (GESILG) concerns. Ensure equitable resource mobilization and distribution of resources for climate change adaptation through national and international financing, research, technology, and extension services related to climate change adaptation.

34. Principles Responsiveness  to the actual adaptation needs through the identification of actions that reduce the adverse impacts of climate change and maximize resilience, informed by a robust body of research and analysis undertaken through the NAP process. Policy coherence with: – National policies, strategies, plans, development goals, and priorities; and International commitments under the UN conventions including the UNFCCC, Paris Agreement, SDGs, Sendai Framework for Disaster Risk Reduction, UNCCD, and UNCBD. Integration  of climate change adaptation in the planning, budgeting, and implementation of actions at the three levels of government – federal, provincial, and local. Gender responsive and social inclusive  actions to ensure that people of all genders are engaged in all stages of climate adaptation planning, budgeting, implementation, and monitoring and evaluation. Multi Stakeholder engagement, coordination, and cooperation  to promote transparency, better decision making, and enhanced implementation of adaptation. Ecosystem integrity to maintain naturally biodiverse, healthy, and resilient ecosystems . ‘ Leave-No-One-Behind’  through commitment to an inclusive NAP process that prioritizes planning and implementation of adaptation actions by identifying who is left behind, identifying measures to meet their needs, and generating evidence and data to monitor progress.

35. Priority adaptation programs Sector Budget (USD) Key Focus Areas Agriculture and Food Security 11.2 billion Sustainable agriculture, food security, climate-resilient water systems, insurance models, and professional capacity building. Forest, Biodiversity, and Watershed Conservation 8.7 billion Forest fire prevention, watershed management, biodiversity conservation, sustainable forestry, and habitat restoration. Water Resources and Energy 5.35 billion Climate-resilient water systems, renewable energy, GLOF risk reduction, and sustainable hydropower. Rural and Urban Settlements 2.85 billion Circular economy, climate-resilient urban planning, and infrastructure improvements. Industry, Transport, and Physical Infrastructure 3.05 billion Clean energy transportation, resilient infrastructure, relocation of vulnerable industries. Tourism, Natural, and Cultural Heritage 1.13 billion Climate-resilient tourism, eco-tourism, disaster response in adventure tourism, and cultural heritage protection. Health, Drinking Water, and Sanitation 4.75 billion Resilient health and hygiene services, water and sanitation infrastructure, and disease surveillance. Disaster Risk Reduction and Management 8.05 billion Early warning systems, disaster preparedness, social protection, and climate risk-sensitive land use. Gender, Social Inclusion, Livelihoods, and Governance 0.7 billion Climate-resilient livelihoods, social inclusion, and gender-responsive policies. National Capacity Building, Research, and Awareness Raising 0.16 billion Climate research, stakeholder capacity building, and climate change data management.

36. NAP Milestones

37. Institutional Framework for NAP process

38. National Adaptation Programme of Action (NAPA) NAPA is a strategic tool to assess climatic vulnerabilities and systematically respond to climate change adaptation issues by developing appropriate adaptation measures. COP7 to the UNFCCC held at Marrakesh in 2001 and established funds relevant for adaptation, including the Least Developed Countries Fund (LDCF) under the Convention to support the 49 Least Developed Countries (LDCs) to adapt to climate change. Initially the LDCF has been used to support the preparation of National Adaptation Program of Action (NAPA). The NAPA preparation is a pre-requisite for accessing funding from the LDC Fund. The NAPA provides a process for LDCs to identify, communicate and respond to their most “urgent and immediate” adaptation needs, and priorities those needs. The NAPA was endorsed by the Government of Nepal on 28 September 2010.

39. Objectives of the NAPA document assess and prioritize climate change vulnerabilities and identify adaptation measures; develop proposals for priority activities; prepare, review and finalize the NAPA document; develop and maintain a knowledge management and learning platform; and develop a multi-stakeholder framework of action on climate change NAPA envisions that mainstreaming climate change into the national development agenda will contribute to poverty reduction, livelihood diversification, and building community resilience.

40. Combined Profile Title Estimated Total Cost (USD) 1 Promoting Community-based Adaptation through Integrated Management of Agriculture, Water, Forest and Biodiversity Sector 50 million 2 Building and Enhancing Adaptive Capacity of Vulnerable Communities Through Improved System and Access to Service Related to Agricultural Development 44 million 3 Community-based Disaster Management for Facilitating Climate Adaptation 60 million 4 GLOF Monitoring and Disaster Risk Reduction 55 million 5 Forest and Ecosystem Management for Supporting Climate-Led Adaptation Innovations 25 million 6 Adapting to Climate Challenges in Public Health 15 million 7 Ecosystem Management for Climate Adaptation 31 million 8 Empowering Vulnerable Communities through Sustainable Management of Water Resource and Clean Energy Supply 40 million 9 Promoting Climate Smart Urban Settlement 30 million Prioritized activities for climate change adaptation in NAPA

41. LAPA framework The Local Adaptation Plan of Action (LAPA) is a plan prepared at local level by involving multistakholder team including the vulnerable communities. To support implementation the government of Nepal has recently developed a national framework for a local Adaptation Plan for Action (LAPA). LAPA framework aims to make adaptation planning a bottom up, inclusive, responsive and flexible process that will identify the most climate vulnerable people and allow them to make informed decisions on priority adaptation actions. It provides an opportunity for undertaking developmental activities that are climate resilient with strong co-benefits for poverty reduction.

42. Developing a LAPA can help bridge central planning and local priorities , connecting higher level mobilization of resources for adaptation and channeling those resources into the hands of those who need them. Local level responses to climate change could help produce and promote new forms of partnerships and perhaps even a more democratic society in the context of a fragile state. NAPA involves decentralized and bottom up planning process. The proposed LAPA would identify adaptation needs at the local level that focuses on reducing local-level climate risk and vulnerabilities and ways of increasing resilience. It would also focus on strengthening mechanisms for ensuring consolidated and coordinated adaptation responses at local levels through the existing planning process. In turn the LAPAs could be used as a vehicle to inform sectoral programs and catalyze cross- sectoral coordination and complementarities to build climate resilience. Moreover, mainstreaming climate change adaptation into existing local development planning particularly at the district and village levels is important to ensure a bottom-up perspective to climate resilience development pathways.

43. LAPA Framework National Climate Change Adaptation Initiatives Mainstreaming Climate Change adaptation into National Development Policies, governing/ coordinating bodies, regulations, Programs National Adaptation Program of Action(NAPA) NAPA Outcomes 1. NAPA document 2. Climate change knowledge management platform 3. National and regional climate change learning centre 4. NAPA project(s) implementation NAPA Process 1. Project setup 2. TWG setup 3. Consultations 4. Vulnerability assessment 5. Project prioritization 6. Project proposals NAPA Objectives 1. Poverty reduction 2. Livelihoods diversification / improvement 3. Building community resilience Multi-stakeholder partnership framework of action NAPA Update Local Adaptation Plan of Action (LAPA) Decentralized adaptation program implementation mechanism development LAPA coordination mechanism LAPA Formulation mechanism LAPA implementation mechanism LAPA piloting

44. Process of Local Adaptation Planning Multi-stakeholder platform at local level (District level) Wider consultation process on key principles and processes of LAPA Awareness raising and sensitization in order to ensure relevant stakeholders and communities are aware about the process Participatory vulnerability assessment and identification of vulnerable sites and communities (preparation of district atlas) Local level vulnerability assessment, impact mapping Institutional analysis and mapping Adaptation planning at local level (discussion with local communities and actors) Sharing the plans at district level and finalizing Agreeing on institutional structure and modality for delivery of plans Piloting of adaptation plans at local level Joint monitoring and review of adaptation pilots Wider lesson learning and dissemination Adoption and mainstreaming national wide

45. Loss and Damage The “loss” of loss and damage refers to things that are lost permanently to the climate crisis such as human and animal lives, species, ecosystems, livelihoods. The “damage” of loss and damage refers to things that have been affected by the climate crisis but can be restored, such as impacts to physical and mental health, soils, roads, schools. Loss and damage refers to the negative effects of climate change that occur despite mitigation and adaptation efforts. Under the Paris Agreement, there are three pillars of climate action: 1. Mitigation 2. Adaptation 3. Loss and Damage

46. Loss and Damage loss and damage encompasses both economic losses and non-economic losses Economic loss and damage refers to negative impacts where the costs are quantifiable, such as damage to infrastructure or reduced crop yields. Non-economic loss and damage refers to negative impacts that are not easily traded in markets, and typically harder to measure in monetary terms, such as loss of culture, ecosystem services, and displacement. These tends to be more irreparable and irreversible.

47. Loss and Damage in Climate Negotiations

48. Loss and Damage https://mofe.gov.np/uploads/documents/national-framework-on-loss-and-damage-approved-document-20211653988842pdf-0805-652-1658826902.pdf

49. Climate Financing Climate finance refers to local, national, or transnational financing from public, private, and alternative sources to support mitigation and adaptation actions addressing climate change Climate finance is supported by the UNFCCC (1992), Kyoto Protocol (1997), and Paris Agreement (2015), guided by "common but differentiated responsibilities and respective capabilities." Developed countries are expected to provide financial resources to developing nations, a principle reaffirmed in the Paris Agreement with a commitment to mobilize $100 billion annually by 2020, extended to 2025.

50. Climate Financing T wo main sub-categories of climate finance based on different aims.  Mitigation  finance is investment that aims to reduce global  carbon emissions .  Adaptation  finance aims to respond to the consequences of climate change. Mitigation accounting for over 90% of spending on climate.

51. Climate Financing Types of finance Multilateral climate finance Multilateral climate funds Fund Name Established Primary Purpose Funding Instruments Annual Funding Range Green Climate Fund (GCF) 2010 Support climate action in developing countries - Grants- Concessional loans- Equity investments- Risk mitigation $1-3 billion annually Adaptation Fund (AF) 2007 Climate adaptation for vulnerable countries - Grants- Innovative financing $300-500 million annually Least Developed Countries Fund (LDCF) 2001 Support adaptation in least developed countries Primarily grants $100-200 million annually Special Climate Change Fund (SCCF) 2001 Addressing diverse climate challenges - Grants- Mixed financing $50-150 million annually Global Environment Facility (GEF) 1992 Broader environmental protection - Grants- Blended finance $900 million-1.2 billion annually

52. Climate Financing Multilateral Development Banks Development Bank Primary Focus Key Climate Initiatives Annual Climate Investment World Bank Group Global economic development - Climate Investment Funds- Forest Carbon Partnership- BioCarbon Fund $20-25 billion annually Asian Development Bank (ADB) Asian region development - Clean Energy Program- Climate Technology Fund $5-7 billion annually African Development Bank African continent development - Renewable Energy Fund- Climate Resilience Strategy $3-5 billion annually Inter-American Development Bank Latin American development - Sustainable Energy Framework- Climate Change Adaptation Fund $2-4 billion annually European Investment Bank European economic development - Climate Action Program- Clean Energy Lending $4-6 billion annually

53. Climate Financing Bilateral climate finance Bilateral  institutions include development cooperation agencies and national development banks. Bilateral institutions include donors such as the USAID, the Japan International Cooperation Agency (JICA), Germany's KfW Development Bank and the UK-Aid, Commonwealth and Development Office (FCDO). Domestic public climate finance It includes budget allocated by government through its annual budget

54. Climate Financing Private climate finance Financial institutions (banks, pension funds, insurance companies) Investment through venture capital, infrastructure funds Sector-specific companies (renewable energy, water technologies) Individual investors and communities Carbon offsetting through voluntary carbon markets

55. Climate Financing

56. Climate Financing Financial Instruments 1. Debt-for-Climate Swaps The financial mechanism enables debtor nations to obtain debt restructuring or forgiveness which leads to funding domestic climate mitigation and adaptation projects. The agreement between creditors enables them to reduce debt payments so that released local currency funds climate-related projects such as reforestation and renewable energy development and biodiversity conservation. 2. Green Bonds (Climate Bonds) A green bond is a fixed-income financial instruments (bond) which is used to fund projects that have positive environmental benefits.

57. Climate Financing Financial Instruments 3. Carbon Offsetting (Credit Trading) The market-based system enables entities to reduce their emissions through credit purchases from projects which decrease or eliminate GHG emissions in different locations. 4. Other Financial Instruments Revenue-Generating Models: (Fee-for-service (e.g., water tariffs), Subscription models (e.g., pay-for-preservation programs). Revolving Loan Funds (RLFs): Capital is recycled as loans are repaid, sustaining long-term climate projects. Public-Private Partnerships (PPPs): Shares risks/rewards between governments and private investors (e.g., renewable energy grids). Blended Finance: Combines concessional (public/donor) funds with private capital. Land Value Capture (LVC): Funds climate projects via taxes on increased land value from infrastructure (e.g., transit-oriented development).

58. Capacity Building Capacity building is the process of enhancing the abilities of individuals, organizations, and institutions to perform functions, solve problems, and achieve objectives related to climate change. Capacity building is necessary to Access climate finance from international and domestic donors. Manage funds efficiently and transparently. Utilize these resources effectively to implement climate projects and policies. Developing countries require capacity building because they encounter three main barriers which include insufficient technical skills and inadequate institutional systems and limited infrastructure capabilities. Without enough capacity a nation will fail to obtain Green Climate Fund funding because it cannot create strong project proposals or track project results.

59. Capacity Building Capacity Building under the UNFCCC Explicitly addressed in Article 6 of the UNFCCC, which focuses on education, training, and public awareness . Within the UNFCCC framework, capacity building is seen as a vital mechanism to empower developing countries to: Participate in international climate negotiations (e.g., Conference of the Parties, or COP meetings). Develop and implement national climate strategies, such as National Adaptation Programmes of Action (NAPAs). Access and manage climate finance from mechanisms like the Global Environment Facility (GEF). The UNFCCC has established initiatives like the Capacity-building Framework at COP 7 in 2001, which outlines priorities such as strengthening institutional structures, enhancing technical skills, and improving access to financial resources in developing countries.

60. Capacity Building Capacity building in the Paris Agreement Article 11 of the Paris Agreement is dedicated to capacity building. It stipulates that: Capacity building should be country-driven , reflecting national priorities. It should be an iterative, participatory process that is cross-cutting and gender-responsive . Developed countries are urged to enhance support for capacity-building efforts in developing nations, including through financial and technical assistance. To operationalize these commitments, the Paris Agreement established the Paris Committee on Capacity-building (PCCB) in 2015. The PCCB’s mandate is to identify capacity gaps, promote best practices, and coordinate capacity-building efforts globally.

61. Capacity Building Capacity Description Examples Ways to Build Capacity Technical Capacities Expertise in climate science, technologies, and adaptation strategies. Renewable energy, climate modeling, ecosystem-based adaptation. Research investments, technology transfer, specialized training. Institutional Capacities Strengthening organizations to plan, coordinate, and implement policies. Clear mandates, governance structures, climate integration in sectoral plans. Organizational reforms, training for public officials. Financial Capacities Ability to secure, manage, and allocate climate finance. Proposal writing, financial management, leveraging funds. Training finance professionals, developing project developers. Human Capacities Developing a skilled workforce for climate action. Education programs, specialized training, community empowerment. Investment in education, vocational training, and workshops. Stakeholder Engagement Capacities Ensuring inclusive participation of diverse groups. Communication skills, participatory processes, partnership building. Facilitation training, gender-responsive approaches. Data and Information Capacities Collecting and analyzing climate data for decision-making. Monitoring systems, data analysis, information systems. Investing in technology, training data analysts. Policy and Regulatory Capacities Developing and enforcing climate policies and regulations. Policy analysis, legal drafting, enforcement of commitments. Training policymakers, legal experts, and policy research. C apacities needed for climate action

62. Cross cutting issues Gender Perspectives in Climate Change Gender dynamics shape climate change vulnerability and adaptation strategies. Women, traditionally responsible for water collection, agriculture, and household management, Nepalese women experience direct impacts of climate disruptions like water scarcity, agricultural unpredictability, and increased migration pressures. Despite these challenges, women represent critical agents of community resilience, possessing local knowledge about sustainable resource management and innovative adaptation techniques.

63. Cross cutting issues Indigenous Community and Climate Change Nepal's diverse indigenous communities represent crucial sources of traditional ecological knowledge. These communities have historically developed environmental management strategies adapted to Nepal's complex topographical landscapes. Their understanding of mountain ecosystems, forest conservation, and agricultural practices offers invaluable insights into climate resilience. However, indigenous groups face marginalization in national policy making, with limited representation in climate change decision-making processes despite their deep environmental knowledge.

64. Cross cutting issues Governence The climate change governance system in Nepal functions through multiple institutional levels that include national and provincial and local administrative bodies. The Ministry of Forests and Environment leads national climate policy coordination yet local governments now create adaptation plans that suit their specific contexts. The National Adaptation Programme of Action (NAPA) and Local Adaptation Plans of Action (LAPA) serve as organized approaches to decentralize climate response strategies. The established frameworks work to develop locally relevant interventions which respond to community-specific vulnerabilities while keeping national strategic direction intact.

65. Cross cutting issues Political Economy The political economy framework of Nepal reveals specific obstacles and possibilities for climate change response. The country faces economic instability because it remains a least developed nation while depending heavily on agriculture and natural resources for its economy. Nepal's political shift toward federalism established better local governance but it also complicated the execution of policies. The policy needs adaptive strategies because balance between sustainable development objectives with immediate poverty alleviation is needed.