{"id":60143330,"date":"2026-07-23T12:30:07","date_gmt":"2026-07-23T11:30:07","guid":{"rendered":"https:\/\/dialogue.earth\/?p=60143330"},"modified":"2026-07-23T12:55:46","modified_gmt":"2026-07-23T11:55:46","slug":"is-climate-finance-reaching-local-and-indigenous-communities-in-nepal","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/climate\/is-climate-finance-reaching-local-and-indigenous-communities-in-nepal\/","title":{"rendered":"Is climate finance reaching local and Indigenous communities in Nepal?"},"content":{"rendered":"\n

In February, Nepal issued its Climate Finance Mobilisation Procedure<\/a>, in part to improve local community access to such finance.<\/p>\n\n\n\n

What is climate finance?<\/span>
\n

Climate finance is funding to support developing countries to deal with climate change. It can be for mitigation projects which cut greenhouse gases from the air, for example by building wind a wind farm. Or it can be for adaptation projects which adjust life and nature to deal with the effects of climate change, such as by building sea walls.<\/p>\n\n\n\n

Climate finance sits at the heart of international climate cooperation, and is a frequent source of conflict. Disputes centre on who should deliver finance, how and for what: public or private, grants or loans, mitigation or adaptation.<\/p>\n<\/div><\/div><\/div>\n\n\n\n

This aim reflects commitments made in the country\u2019s 2019 climate policy<\/a>, which states that \u201c80% of the funds of any climate project should reach the local community\u201d, Maheshwar Dhakal, chief of the environment ministry\u2019s climate change division, told Dialogue Earth last November.<\/p>\n\n\n\n

Editor\u2019s note:<\/p>

This article is part of Dialogue Earth\u2019s Indigenous Voices fellowship. The eight fellows are Indigenous journalists and storytellers from across the Global South. The fellowship aims to foreground not just Indigenous issues, but also the storytelling, reporting and insights of Indigenous journalists themselves.<\/p><\/div><\/div>\n\n\n\n

But the mobilisation law contains a critical omission: reference to Indigenous peoples. This is despite Indigenous rights and knowledge being acknowledged in the updated climate action plan<\/a> Nepal submitted to the UN climate process in May 2025.<\/p>\n\n\n\n

According to local community and Indigenous representatives Dialogue Earth spoke to, Nepal\u2019s marginalised communities face considerable challenges accessing climate finance. They suggest that it is too soon to tell if the new government, in place since March, will remedy this.<\/p>\n\n\n\n

Nepal\u2019s climate finance policies<\/h2>\n\n\n\n

The policy framework for managing climate finance has historically been fragmented in Nepal. The Foreign Aid Mobilisation Policy 2025<\/a>, issued by the finance ministry, provides broad guidelines for all foreign aid, including climate finance. While the 2019 National Climate Change Policy<\/a> shapes climate finance programming across different sectors and levels of government. The National Adaptation Plan<\/a> and Local Adaptation Plans for Action<\/a> also shape the flow of climate finance, but lack a unified approach to mobilising it.<\/p>\n\n\n\n

The new procedure aims to streamline these processes to effectively mobilise climate finance from various domestic and international sources. It permits the use of climate funds in private-sector projects. NGOs are also eligible for climate finance through the government\u2019s Social Welfare Council, provided they coordinate with federal, provincial or local authorities to avoid duplication of efforts.<\/p>\n\n\n\n

The procedure states that all climate-finance-backed projects should align with Nepal\u2019s climate action plan, known as its Nationally Determined Contribution to the Paris Agreement. Criteria for selecting projects include achieving a good spread across the country and job creation.<\/p>\n\n\n\n

However, the law does not mention Nepal\u2019s Indigenous population.<\/p>\n\n\n\n

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Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

Mankesh Gupta, Indigenous Peoples and Local Communities coordinator at the Center for Indigenous Peoples\u2019 Research and Development, says: \u201cThe government\u2019s intention is to channel all climate finance through a single system. The question, however, is whether this approach delivers justice [for Indigenous communities] or whether it creates new gaps.\u201d<\/p>\n\n\n\n

The procedure assigns the finance ministry as the administrator of climate funding, coordinating with international agencies, managing project submissions, and overseeing fund disbursements. Characterising it as a \u201cone-door system\u201d, Gupta notes: \u201cWhile this may improve coordination, it also creates an additional administrative layer and legal hurdle. Accessing finance now requires navigating several government institutions and subsidiary bodies, each adding time, administrative costs and human resource expenses. As a result, ensuring direct access to finance for Indigenous communities remains critically important.\u201d<\/p>\n\n\n\n

Nepal\u2019s 35%<\/h2>\n\n\n\n

Of the country\u2019s nearly 30 million citizens, 35%<\/a> are considered Adivasi Janajati<\/a><\/em> (Indigenous Nationalities), though some Indigenous organisations and experts say<\/a> the true figure could be up to half the population.<\/p>\n\n\n\n

The government defines such peoples \u201cas a tribe or community… having its own mother language and traditional rites and customs, distinct cultural identity, distinct social structure and written or unwritten history\u201d. It formally recognises 61<\/a> of these groups, while 19<\/a> more were identified in the 2021 census but are yet to be formally recognised.<\/p>\n\n\n\n

Many Indigenous communities continue to face disproportionate levels of poverty, limited access to education and healthcare, and geographic isolation. These vulnerabilities are compounded by the fact that many reside<\/a> in climate-sensitive mountain, hill, forest and riverine ecosystems increasingly affected by climate change through glacier retreat, floods, landslides and changing rainfall patterns<\/a>.<\/p>\n\n\n\n

Despite the severity of these issues, Indigenous peoples have historically experienced challenges accessing climate finance in Nepal.<\/p>\n\n\n\n

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Climate finance has not been people-centred or rights based, says Pratima Gurung, founder and president of the National Indigenous Disabled Women Association Nepal. It has also failed to \u201cpierce the multiple layers of structural barriers that discriminate\u201d, she notes.<\/p>\n\n\n\n

Gupta points to data collection and submission as example barriers.<\/p>\n\n\n\n

\u201cThere is a lot of discussion about dedicated funding, but the government continues to demand data as a prerequisite for allocation. Indigenous communities, however, often do not have such data, nor the capacity to generate and submit it,\u201d Gupta tells Dialogue Earth.<\/p>\n\n\n\n

He highlights that even applications for small climate funding schemes require evidence of a certain number of prior financial transactions, thereby creating an \u201cindirect barrier\u201d for such communities.<\/p>\n\n\n\n

Facilitating Indigenous people\u2019s access to climate finance is a responsibility that lies with the state, Gupta notes. When it comes to evidence requiring data, he suggests that the state document Indigenous peoples\u2019 contributions, communities and oral histories. \u201cWe can start anew,\u201d he says. \u201cWe can begin with documentation.\u201d<\/p>\n\n\n\n

Gurung points out the low technical capacity of communities in navigating international climate funds and domestic bureaucracy. She says marginalised people find themselves unable to apply to access these funds \u201cbecause the process is so long and complicated\u201d.<\/p>\n\n\n\n

Gurung says: \u201cThe Nepal government should start the overall climate conversation in simple terms, explaining what climate change is to us, what the international processes are, and how we can relate our lived experiences to this international agenda.\u201d  <\/p>\n\n\n\n

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Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

Even where funding is accessed, distribution can be politically thorny. Gupta points out that the finance ministry channels resources under the Forest Development Fund: 80% goes through a performance-based allocation mechanism for forest management including by communities and the government. The remaining 20% is reserved for operational costs, private forests and benefits to reduce households\u2019 dependence on forest resources.<\/p>\n\n\n\n

\u201cThe assumption is that when funds are given to community forests, they reach the Indigenous communities within those forests. However, even within community forests, leadership is often dominated by elites, and there are differences and disputes in governance,\u201d he says.<\/p>\n\n\n\n

With the mobilisation law, the eligibility criteria similarly presents \u201csignificant barriers\u201d to access for Indigenous communities, Gupta adds. \u201cFor example, accessing carbon finance requires extensive documentation, including regulatory framework documents, benefit-sharing mechanisms, and verification systems that must be formally approved before funding can be released. These technical and institutional requirements are often beyond the capacity of many Indigenous organisations.\u201d<\/p>\n\n\n\n

Gupta notes that the mobilisation law\u2019s one-door system raises concerns about bureaucracy\u2019s impacts on the local community. \u201cWhat happens if the government delays or withholds the funds? If a five-year project spends three years merely completing administrative procedures, a significant portion of the project\u2019s value and impact is lost,\u201d he says.<\/p>\n\n\n\n

He adds that policy incoherence continues to undermine effective climate finance delivery. \u201cNumerous clauses, administrative requirements, procedural loopholes and bureaucratic layers create barriers that disproportionately restrict Indigenous peoples\u2019 access to climate finance. These overlapping and often invisible obstacles make it increasingly difficult for Indigenous communities to directly benefit from the resources intended to support them.\u201d<\/p>\n\n\n\n

What next?<\/h2>\n\n\n\n

At the COP30 climate conference last November, Dhakal from the environment ministry acknowledged room for improvement in delivering finance to Indigenous and marginalised communities, though he insists that \u201ccomparatively, we are in a much better position than other countries\u201d.<\/p>\n\n\n\n

Following a period of political upheaval that began in September 2025, Nepal witnessed a historic political shift. Former rapper and structural engineer Balendra Shah secured a landslide victory in the March 2026 elections, displacing many of the country\u2019s long-established political forces.<\/p>\n\n\n\n

Some of the Shah administration\u2019s proposals have worried Indigenous organisations and experts. For example, it has proposed<\/a> dissolving the National Foundation for Development of Indigenous Nationalities (NFDIN), among 31<\/a> other state agencies, as part of a broader institutional restructuring aimed at reducing costs. Indigenous communities have protested against this decision.<\/p>\n\n\n\n

Gupta calls the proposal \u201ca big blow\u201d as NFDIN works for the welfare of Indigenous people. \u201cIt has made us wonder how this decision will affect other organisations as well.\u201d<\/p>\n\n\n\n

Additionally, he notes that the budget speech<\/a> for the upcoming fiscal year, delivered at the end of May, was \u201cnot very specific or focused on climate change and Indigenous communities\u201d, focusing instead on the private sector. But impacts of these initiatives on Indigenous populations remain unaddressed. \u201cFrom the voluntary carbon market to hydropower, they have talked about positive initiatives. However, while promoting hydropower projects, we do not know how they will address the rights of Indigenous communities connected to those projects or what will happen if they are displaced.\u201d<\/p>\n\n\n\n

\"woman<\/div>
The growing number<\/a> of hydropower projects on Nepal\u2019s Marsyangdi river have drawn protests<\/a> from local communities and Indigenous groups facing displacement, the violation of their rights<\/a>, and impacts to their environment and cultural traditions (Image: Oliver Foerstner \/ imageBROKER \/ Alamy)<\/div><\/div><\/div><\/div>\n\n\n\n

Gupta acknowledged the new administration has been \u201cworking strongly\u201d in its governance, but said it is too soon to judge its work. \u201cWe do not know how the government will work \u2013 whether it will be understanding and cooperative or instead create additional barriers [for Indigenous peoples]. For now, it is a matter of \u2018wait and watch\u2019\u201d. <\/p>\n\n\n\n

The government has recently indicated some commitment to distributing climate finance. In its budget<\/a> of 29 May, it allocated NPR 12.31 billion (USD 81.3 million) for the forest, environment and climate sector. It pledged to implement a results-based REDD+ programme to reduce emissions, prioritising local communities in the distribution of benefits generated. The government also committed to facilitating private sector access to concessional financing from international climate funds.<\/p>\n\n\n\n

But several key questions need to be addressed so Indigenous communities can access climate funding, notes Gurung: \u201cHow can we develop the capacity of communities on the ground? Who will teach them these technical and financial terms? Who has access to information? Who has power? Who has money?\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The country\u2019s new climate finance policy must be a pathway to access climate funds, not another bureaucratic hurdle<\/p>\n","protected":false},"author":50000857,"featured_media":60143349,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[761],"tags":[17827,50041623,544,555,580],"hashtags":[],"country":[20000113],"class_list":["post-60143330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate","tag-climate-adaptation","tag-environmental-defenders","tag-finance","tag-indigenous-peoples","tag-policy","country-nepal"],"acf":[],"yoast_head":"\nIs climate finance reaching local and Indigenous communities in Nepal? | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"The country\u2019s new climate finance policy must be a pathway to access climate funds, not another bureaucratic hurdle\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dialogue.earth\/en\/climate\/is-climate-finance-reaching-local-and-indigenous-communities-in-nepal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is climate finance reaching local and Indigenous communities in Nepal?\" \/>\n<meta property=\"og:description\" content=\"The country\u2019s new climate finance policy must be a pathway to access climate funds, not another bureaucratic hurdle\" \/>\n<meta property=\"og:url\" content=\"https:\/\/dialogue.earth\/en\/climate\/is-climate-finance-reaching-local-and-indigenous-communities-in-nepal\/\" \/>\n<meta property=\"og:site_name\" content=\"Dialogue Earth\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-23T11:30:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-23T11:55:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/dialogue.earth\/content\/uploads\/2026\/07\/Kumrose-community-forest-woman_Alamy_2H606M1-1-e1784797127756.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nerabung Kulung\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/dialogue.earth\/en\/climate\/is-climate-finance-reaching-local-and-indigenous-communities-in-nepal\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/dialogue.earth\/en\/climate\/is-climate-finance-reaching-local-and-indigenous-communities-in-nepal\/\"},\"author\":{\"name\":\"Nerabung Kulung\",\"@id\":\"https:\/\/dialogue.earth\/en\/#\/schema\/person\/36fdbd24af1de2bc6608d512c07d2674\"},\"headline\":\"Is climate finance reaching local and Indigenous communities in Nepal?\",\"datePublished\":\"2026-07-23T11:30:07+00:00\",\"dateModified\":\"2026-07-23T11:55:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/dialogue.earth\/en\/climate\/is-climate-finance-reaching-local-and-indigenous-communities-in-nepal\/\"},\"wordCount\":1736,\"publisher\":{\"@id\":\"https:\/\/dialogue.earth\/en\/#organization\"},\"image\":{\"@id\":\"https:\/\/dialogue.earth\/en\/climate\/is-climate-finance-reaching-local-and-indigenous-communities-in-nepal\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/dialogue.earth\/content\/uploads\/2026\/07\/Kumrose-community-forest-woman_Alamy_2H606M1-1-e1784797127756.jpg\",\"keywords\":[\"Climate adaptation\",\"Environmental defenders\",\"Finance\",\"Indigenous peoples\",\"Policy\"],\"articleSection\":[\"Climate\"],\"inLanguage\":\"en\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/dialogue.earth\/en\/climate\/is-climate-finance-reaching-local-and-indigenous-communities-in-nepal\/\",\"url\":\"https:\/\/dialogue.earth\/en\/climate\/is-climate-finance-reaching-local-and-indigenous-communities-in-nepal\/\",\"name\":\"Is climate finance reaching local and Indigenous communities in Nepal? 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