Finland Commits €13 Million Grant to Nepal for Local Climate Adaptation

Finland has pledged a substantial grant to support Nepal's local climate adaptation program. The grant agreement was formally signed at a ceremony held at the Ministry of Finance on Tuesday.

Sri Krishna Nepal, Joint Secretary of the Ministry of Finance and Head of the International Economic Assistance Coordination Division signed the agreement on behalf of Nepal. Representing Finland was Rina-Rikka Hekka, the Finnish Ambassador to Nepal.

The Cabinet of Nepal approved the acceptance of the grant, totaling €13 million (approximately Rs 1.878 billion), on May 16. This funding is part of a comprehensive financial collaboration, which also includes €51 million from the European Union and an additional €20 million from the Government of Nepal. These funds are earmarked for climate adaptation initiatives in the Karnali and Sudurpaschim provinces.

This agreement is particularly noteworthy as it coincides with the 50th anniversary of the establishment of diplomatic relations between Nepal and Finland, as well as with the European Union. The project is slated for implementation in the fiscal year 2024/25. At the signing event, Joint Secretary Nepal emphasized the project's objectives, which include mitigating the impacts of climate change through localized adaptation strategies and sustainable natural resource management. He expressed confidence that the initiative would enhance sustainable natural resource management and improve the livelihoods of local communities.