Nepal, highly vulnerable to climate change, faces erratic weather patterns, glacial retreats, and extreme events. Glacier melting creates a dual challenge: excess water upstream leading to floods and damage, and insufficient water downstream, impacting agriculture, tourism, and ecosystems. This underscores the need for a comprehensive climate action strategy addressing both upstream and downstream challenges. Enterprises in Nepal, pivotal to the nation’s economic vitality, must adeptly respond to the evolving dynamics of climate change. The inadequacy of current policies to incorporate the loss and damage concept further underscores critical gaps in the existing framework.

In response to this gap, Nepal has developed a National Climate Change Policy 2076, aiming to integrate climate change into the country’s development strategy and build resilience to climate change.