Climate Adaptation and Disaster Risk Reduction Investments in Nepal

This study analyzes the budget allocation and expenditure for CCA and DRRM at the provincial and local government (LG) levels in Nepal. Specifically, the study aims to understand the integration of climate and disaster risks into financial planning, assess the scale and focus of budget allocations, explore barriers to effective budget integration, examine the impact of allocations on vulnerable communities, and evaluate opportunities for innovative financing and private sector involvement.

The study focuses on two provinces Madhesh and Sudurpaschim and seven LGs, analyzing budgets across Fiscal Years (FYs). It relies on government budget data from the Sub-National Treasury Regulatory Application (SuTRA) and the Provincial Line Ministry Budget Information System (P-LMBIS). The study employs criteria based on the National Adaptation Plan (NAP- MOFE, 2020) for budget tagging and excludes off-budget and off-treasury financing and pandemic or earthquake response budgets to avoid skewing results. It addresses key questions around budget sources, prioritization, efficiency, alignment with community needs, and potential for innovative financing mechanisms in Nepal’s CCA and DRRM landscape.