NDF - Financing for climate change and development projects

NCF: Building Resilience and Climate Adaptive Planning in Urban Centres of Nepal [NDF C82 B4]

Photo: Environmental Development Society (EDS)
Participants of capacity need assessment in Birendranagar.
Photo: Bheri Environmental Excellent Group (BEEG)
Capacity need assessment training in Nepalgunj.
Photo: Environmental Development Society (EDS)
Capacity need assessment training in Birendranagar.
The objective of the project is that Urban centres of Nepal become people-centred and resilient to climate extremes and disasters.

Building Resilience and Climate Adaptive Planning in Urban Centres of Nepal
Ref: NDF C82 B4

Nordic partner: Arbonaut Ltd.
Local partners: Oxfam in Nepal, Clean Energy Nepal
Other partner(s): N/A
Total project cost: EUR 613,730
NCF financing: EUR 460,299
Agreement signed: 18 May 2016
Project classification: Adaptation
Duration: 30 months

Project objective

The project has four main objectives, namely, i) building climate adaptation and resilience into vulnerable urban centres, ii) developing adaptation-friendly policy, practice and business, iii) equipping vulnerable urban dwellers with information, resources and appropriate technology to respond to climate extremes and disasters, and iv) knowledge documentation and dissemination.

Main results/outputs

  • 20% increase in project districts and municipalities’ budgets for Climate Change Adaptation (CCA) and Disaster Risk Reduction (DRR) activities.
  • 40% of target local government officials are better equipped with climate adaptive skills and knowledge
  • 2 climate adaptive technologies from Nordic countries adopted
  • 5 private sector actors incorporating climate adaptive practices into their business plans.
  • At least 10 private sectors supporting actions promoting female entrepreneurs
  • 20 climate-resilient and innovative business enterprises set up/ retrofitted
  • 60% (7063) of target groups demonstrate skills and showcase knowledge to minimise exposure and vulnerability and adapt to climate extremes and disaster.
  • A city to city exchange programme/ visit between the project municipalities and Nordic cities
  • 5 briefing papers and policy briefs used as tool for influencing national policies and programmes.
  • 5 multi-stakeholder dialogues organised to disseminate project learning and best practices.


The project will be implemented in two municipalities in the Mid-western region of Nepal, Birendranagar in Surkhet district and Nepalgunj in Banke district. These districts have suffered from increased frequency of extreme weather events such as landslides, floods and droughts resulting to the loss of human lives as well as high social and economic costs. The project aims to develop adaptation plans in the two municipalities and leverage resources from private sectors in financing adaptation actions. Approximately 235,418 populations residing in two cities will benefit from the project. A detailed climate vulnerability assessment will be conducted; local adaptation plans will be formulated, integrated and implemented in development plans of municipalities. A guideline will be developed to integrate climate adaptation in urban plans.

Skill development trainings in coordination with Council for Technical Education and Vocational Training (CTEVT) and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) would be conducted for the vulnerable communities. The project will support daily wage earners by initiating innovative schemes and securities plans for ensuring their employment. They will be linked with micro credit facility for enterprise development after skill development activities for sustainability. The project will also work with private sectors to retrofit their business and prepare business continuity plans to make their businesses resilient to climate extremes and disasters. The project has identified the private sector (e.g. hotel owners, local retailers) as a key actor for building urban resilience and seeks to harness private sector growth as a positive force for change in urban areas and develop new partnerships and alliances to influence the path of private sector development so that it contributes to positive social, economic and environmental gains. This includes existing water service providers who need to retrofit their system to respond to needs of growing population and current availability of water.

Relevance for climate change

As Banke and Surkhet districts are highly vulnerable to climatic extremes like drought, flood, inundation and landslide, the project will play a key role in bringing awareness to people about climate change and its impact in building climate resilience. One of the major components of this project is to develop and implement local adaptation plans in an urban context based on adopted Local Adaptation Plans of Action (LAPA), Local Disaster Risk Management Planning (LDRMP) and Environment Friendly Local Governance (EFLG) guidelines and frameworks and integrate the plans in local development and sectorial plans and programme as envisioned in national plans and policy. This project aims to disseminate the knowledge of climate change and adaptation to the private sectors so that they can build an adaptation-friendly business plan, which ultimately helps to improve the livelihood. The private sector will be influenced to adopt climate-adaptive strategies into existing processing and distribution systems. The project will support women’s groups in setting up climate-adaptive livelihoods to build their resilience.

Innovation aspects

The project will build resilience of the two municipalities to climate extremes and disasters by working with all the relevant stakeholders including different tiers of the government, private sector, chambers of commerce, technical training institutes, and local communities. The project aims to mainstream the climate change and DRR frameworks within an urban context for the first time in Nepal. The tri-partite relationship being set up between the private sector, technical training institutes and vulnerable communities is a unique feature of this initiative. A resilience fund, which is an investment in a range of business enterprises and services, will help in reducing exposure to climate extremes and disasters for most of the vulnerable populations of urban centres. The business partnerships between Nordic enterprise providing appropriate technologies and local enterprises with capacity to gain new business will be promoted.

More information
Arbonaut Ltd.  (basanta.gautam@arbonaut.com)
Oxfam in Nepal
Clean Energy Nepal