KATHMANDU, July 2: The Green Climate Fund (GCF) under the United Nations Framework Convention on Climate Change (UNFCCC) has approved an $8.5 million grant for a new climate resilience project in Karnali Province, aimed at strengthening the livelihoods of forest-dependent communities and enhancing their capacity to cope with climate change.
The funding was approved during the 45th meeting of the GCF Board currently underway in Tajikistan under the Simplified Approval Process (SAP), according to officials of National Trust for Nature Conservation (NTNC). The four-year project, titled Building Climate Resilience of Forest-Dependent Communities through Enhanced Livelihood Opportunities and Local Capacity in Karnali Province, Nepal, has a total investment of $9.2 million.
The project has been developed by the National Trust for Nature Conservation (NTNC), which is accredited as a Direct Access Entity to the GCF.
According to NTNC, the initiative will focus on ecosystem restoration, nature-based solutions, climate-resilient livelihoods, community-based early warning systems and strengthening local institutions in Karnali, one of Nepal's most climate-vulnerable provinces.
The project is expected to directly benefit more than 100,000 people while indirectly improving the resilience of over 400,000 people across the province. It will prioritize women, indigenous peoples, Dalits and other marginalized communities.
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Implementation will be carried out jointly by NTNC, the Ministry of Finance and the Ministry of Industry, Tourism, Forest and Environment of Karnali Province, in coordination with provincial and local governments.
Welcoming the approval, Minister for Agriculture, Forests and Environment and NTNC Chairperson Gita Chaudhary said the project would help translate Nepal's climate commitments into practical action for vulnerable communities.
Similarly, Dhani Ram Sharma, Chief of the International Economic Cooperation Coordination Division at the Ministry of Finance and Nepal's National Designated Authority Focal Point to the GCF, said the approval reflected Nepal's growing ability to mobilize and manage international climate finance through national institutions.
NTNC Member Secretary Dr Chiranjibi Prasad Pokheral described the approval as an important milestone for the organization, saying it demonstrated the value of science-based conservation and locally led climate action.
The proposal was prepared through consultations with the Karnali provincial government, 31 local governments, community forest user groups, women's groups, indigenous peoples and other stakeholders in Jajarkot, Jumla, Dolpa and Dailekh districts.
According to NTNC, the project aims to restore 1,000 hectares of degraded forest landscapes, promote sustainable forest-based enterprises, establish community-based early warning systems and strengthen the adaptive capacity of local institutions. It is also expected to generate an estimated 1.1 million tonnes of carbon dioxide equivalent mitigation benefits over the next 20 years.
The project will enter the implementation phase after the signing of the Funded Activity Agreement. NTNC said it is expected to serve as a national model for community-led, nature-based climate adaptation while supporting Nepal's commitments under the Paris Agreement and the Sustainable Development Goals.
Accreditation to the Town Development Fund
The Green Climate Fund (GCF), during the ongoing 45th board meeting, also granted accreditation to the Town Development Fund (TDF) established by the Government of Nepal to mobilize resources for urban infrastructure and municipal development projects.
The Town Development Fund was selected to receive the accreditation required for direct access to Green Climate Fund resources.
With this accreditation, the Town Development Fund becomes the fourth Nepali institution authorized to submit funding proposals directly to the GCF, joining the Alternative Energy Promotion Centre (AEPC), the National Trust for Nature Conservation (NTNC), and Nepal Investment Mega Bank.
Till date, the Green Climate Fund has accredited 120 national entities from 65 countries.
With this decision, Nepal has become the least developed country (LDC) with the highest number of accredited national entities under the Green Climate Fund.
Previously, the Alternative Energy Promotion Centre and the National Trust for Nature Conservation had each secured one GCF-funded project, while Nepal Investment Mega Bank is currently preparing its first funding proposal. Following its accreditation, the Town Development Fund is expected to begin preparing project proposals for submission to the Green Climate Fund.
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