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A new initiative has been launched to improve the livelihoods of marginalized communities in Nepal that are highly vulnerable to climate change.

Under the Inclusive Climate Finance for Vulnerable Communities in Asia-Pacific (ICCFP) project, efforts will be made to enhance financial access for marginalized communities affected by climate-related risks.

The project aims to enhance communities¡¯ access to financial resources needed for climate adaptation.

The regional initiative, which will be implemented in six Asia-Pacific countries - Nepal, Bangladesh, Bhutan, Cambodia, Fiji, and Laos - is being led by the Asia-Pacific Rural and Agricultural Credit Association (APRACA).

Implemented in partnership with the Stockholm Environment Institute and ADA, the project is financially supported by the German government¡¯s International Climate Initiative.

Speaking at a multi-stakeholder event organized to share information about the project, Dr. Rajendra Prasad Mishra, Secretary at Nepal¡¯s Ministry of Agriculture and Livestock Development, expressed confidence that the project would help address the gap in financial access faced by communities highly vulnerable to climate change.

¡°The project¡¯s focus on strengthening climate finance policies, enhancing the capacity of financial service providers, promoting investments in climate adaptation, supporting multi-stakeholder engagement, and ensuring gender equality and social inclusion is both timely and relevant. These efforts can significantly strengthen national capacities and improve access to climate finance for vulnerable communities,¡± he said.

Emphasizing the importance of such initiatives for countries like Nepal, he added: ¡°Beyond providing financial resources, projects like this support policy development, technology transfer, and capacity building. They help strengthen institutions, improve policy frameworks, and develop innovative approaches to ensure climate finance reaches those who need it most. I express my gratitude to the International Climate Initiative for supporting this important regional project. I believe the project will contribute to strengthening climate resilience and promoting inclusive climate finance across the Asia-Pacific region.¡±

At the event, Dr. Prasoon Kumar Das, Secretary General of the Asia-Pacific Rural and Agricultural Credit Association (APRACA), stressed that inclusive climate finance is indispensable for translating global climate commitments into meaningful outcomes at the local level.

He expressed confidence that the project would pave the way for evidence-based policymaking and play a significant role in strengthening the capacities of financial institutions.

¡°This project focuses on inclusive climate finance for vulnerable communities across the Asia-Pacific region. We are implementing it in six countries, and Nepal is one of the priority countries. The German government has therefore provided grant support to expand climate finance access for vulnerable communities in Nepal,¡± he said.

¡°We are working to expand climate finance access for communities in Nepal that are vulnerable to climate change. Through this project, we will support climate policy, institutional capacity building, and technology development. Our priority will be women and households from marginalized communities,¡± he added.

He further noted that the consortium aims to implement the project in Nepal through three financial institutions jointly identified with the German government.

¡°This is a five-year project. Our primary goal is to ensure inclusivity and support vulnerable communities,¡± he said.

The project will focus on five key areas: strengthening the national climate finance policy framework; enhancing the capacity of financial service providers and developing green financial portfolios; designing innovative financial instruments for climate adaptation; operating multi-stakeholder Action Labs to develop local climate solutions; and mainstreaming gender equality and social inclusion across all aspects of climate finance.

The project is expected to benefit 14,000 households across the six participating countries, including Nepal. The total project cost is estimated at €250 million.

Nepal¡¯s Ministry of Finance serves as the national focal point for the project. The initiative is expected to strengthen Nepal¡¯s national climate finance system and enhance the adaptive capacity of vulnerable communities.

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