The government of Nepal and the government of Finland signed country agreements for the project, “Local Adaptation to Climate Change”.

This initiative, marking the 50th anniversary of diplomatic relations between Finland and Nepal, as well as the EU and Nepal, is a 51 million Euro collaborative effort towards climate financing in Nepal.

According to the agreement, Finland will provide a grant of 13 million Euros (approximately Rs. 1.87 billion) to Nepal.

With Finland contributing 13 million Euros (approximately Rs. 1.878 billion) as a grant, and 18 million Euros as grant from the EU, 20 million Euros will be raised from government of Nepal, its municipalities, and local communities.

Joint Secretary of the Ministry of Finance Shreekrishna Nepal and Finnish Ambassador to Nepal Riina-Riikka Heikka signed an agreement on behalf of their respective governments amidst a function Tuesday, according to a press statement issued by the Ministry of Finance.

Climate adaptation programmes will be conducted at various local levels in Karnali and Sudurpaschim Province with 51 million Euros -- 18 million Euros and 13 million Euros from Finland and 20 million Euros from the government of Nepal.

Both parties have signed their respective agreements with the EU earlier in 2023.

"A joint development cooperation project, Local Adaptation to Climate Change (LACC), aiming to minimize the effects of climate change through natural resource management and this project is the good example of the development partner harmonization and also coordination of three tires of the government of Nepal which contributes the sustainable natural resource management and livelihoods,” said Nepal, Joint Secretary, Ministry of Finance.

LACC is Finland’s fourth intervention under the EU's delegated agreement as part of Global Gateway Initiative, highlighting the strong Team Europe collaboration.

“This LACC project represents an essential step for Finland to support Nepal in climate resilience, aligning with the commitments discussed at COP28. As communities in Nepal increasingly suffer from the harsh impacts of climate change, our joint efforts with Nepal and the EU aim to provide essential resources and support to build resilience and sustainable development. Through this initiative, we are demonstrating our commitment to global climate goals and tangible action on the ground. It is through projects like these that we can make a real difference in the lives of those most affected by climate change,” said Heikka.

The LACC project aims to improve the daily lives of people, areas vulnerable to climate change working through the local levels in Sudurpaschim and Karnali Province.

It promotes sustainable natural resource management to help residents adapt to environmental changes, secure their livelihoods, and improve the living conditions.

The key initiatives include strengthening climate-resilient agricultural and agro-forestry practices to promote food security and increase incomes, said the press statement.

The project will enhance sustainable use of natural resources as energy sources, particularly benefiting women by saving time for income generating activities.

The project also aims to establish effective, gender-equal, and inclusive governance at provincial and municipal levels, supporting federal structures and comprehensive planning.

It aims to build connections with the private sector, civil society, rights-holder organizations, and academia, strengthening capacity and creating enabling conditions for all involved.

The LACC project builds on the successful Rural Village Water Resources Management Project (RVWRMP), which operated in Sudurpashchim and Karnali for 16 years, benefiting hundreds of thousands of individuals in water supply and livelihoods.

Just like the RVWRMP project, the LACC project is implemented under the Ministry of Federal Affairs and General Administration through the local levels in the provinces of Sudurpaschim and Karnali Province, with Finland technical assistance from Finland.

This partnership between Nepal, Finland, the EU, and local stakeholders is a significant step towards building resilient communities capable of facing climate change challenges.