Why robust data systems and MRV mechanisms are essential
As Nepal faces escalating climate uncertainty, the need for robust data systems and transparent frameworks has never been more urgent. Climate change is no longer a distant threat—it is a present-day challenge that affects every sector, from agriculture and water resources to energy, health and infrastructure. Rising temperatures, erratic weather, and more frequent climate-related disasters are already disrupting livelihoods, increasing social vulnerability, and hindering national development.
To respond effectively, Nepal must strengthen its capacity for evidence-based planning, transparent governance, and adaptive management. Measurement, Reporting, and Verification (MRV) systems are critical in this process. They enable the systematic collection, analysis, and reporting of climate data, allowing stakeholders to track the effectiveness of mitigation and adaptation actions and refine strategies over time. MRV systems also foster accountability and build trust among government bodies, development partners, the private sector, and local communities by providing credible, transparent information on climate progress. A well-functioning MRV framework is increasingly required to access international climate finance, including from mechanisms like the Green Climate Fund (GCF), which demand verifiable proof of impact. Strengthening MRV is not just a technical necessity but a strategic investment in Nepal’s climate-resilient, low-carbon future. By grounding policy in reliable data and continuous learning, Nepal can enhance the credibility of its climate actions, attract sustainable investment, and protect both its people and ecosystems for the long term.
What is MRV and why does it Matter?
At its core, Measurement, Reporting, and Verification (MRV) is a fundamental process that underpins effective climate governance. It encompasses three interrelated functions: systematically collecting data on greenhouse gas (GHG) emissions and climate-related activities; reporting that information in a consistent, transparent, and standardized format; and verifying its accuracy through independent assessment or third-party review. These processes.
ensure the integrity and credibility of climate data, which is essential for informed decision-making and adaptive management. A well-designed and operational MRV system empowers countries to track progress toward their climate targets, assess the effectiveness of mitigation and adaptation policies, and maintain accountability in the deployment of climate finance. It also provides a basis for aligning national actions with international commitments, including the goals outlined in the Paris Agreement.
For Nepal, MRV is far more than a bureaucratic requirement—it serves as a strategic instrument for advancing national climate priorities. A credible MRV system builds confidence among development partners and international donors, making it possible to mobilize and scale up climate investments from global mechanisms such as the Green Climate Fund (GCF) and the Adaptation Fund. It also strengthens the capacity of domestic institutions to coordinate across sectors, evaluate climate risks, and refine policies based on measurable outcomes. Without a reliable and transparent MRV framework, Nepal risks not only falling short of its Nationally Determined Contributions (NDCs) but also missing critical opportunities to demonstrate leadership, attract financing, and protect vulnerable communities from the accelerating impacts of climate change. Investing in MRV is, therefore, an investment in trust, resilience, and long-term development.
The current landscape: progress and gaps
Nepal has taken commendable early steps toward institutionalizing its MRV system. The Ministry of Forests and Environment (MoFE) has been officially designated as the Single National Entity (SNE) responsible for coordinating all MRV-related activities. Within MoFE, a dedicated MRV Unit has been established under the Climate Change Management Division (CCMD), reflecting a clear intent to build a structured, functional, and responsive climate data architecture. Key roles have been outlined for unit heads, data analysts, and sectoral focal points, signaling a foundational move toward operational coherence and inter-agency collaboration. While the vision is ambitious, implementation remains a work in progress. MRV coverage across sectors—energy, agriculture, forestry, waste, and industry—is currently fragmented and uneven. In some sectors, such as forestry and agriculture, data systems are improving, but still lack harmonized methodologies or standardized emission factors. Others, particularly waste and industry, suffer from outdated or incomplete inventories and weak institutional linkages.
Several persistent challenges impede the full realization of an integrated MRV system. A critical gap is the lack of standardized baseline data for both emissions and adaptation indicators, which hampers the ability to measure real progress or assess effectiveness. Data fragmentation is common, with different agencies collecting information in silos without common reporting formats or interoperable databases. Overlapping mandates among ministries, unclear delineation of responsibilities, and limited coordination further exacerbate inefficiencies.
At the subnational level, capacity constraints are even more pronounced. Provincial and local governments often lack trained personnel, adequate funding, and technological tools to collect, process, and report climate data reliably. The flow of information between national and subnational levels remains inconsistent, undermining efforts to build a bottom-up MRV structure that reflects local realities. The absence of a strong legal and policy mandate for MRV weakens the authority of the system as a whole. Without binding legal provisions, enforcing reporting obligations or ensuring data quality becomes difficult. This limits the country’s ability to produce credible, verifiable data necessary to access climate finance, influence policy development, and track NDC implementation. To close these gaps, Nepal must prioritize the development of a comprehensive legal framework that mandates MRV obligations across sectors and levels of government. Standard operating procedures, capacity-building programs, and interoperable digital platforms will also be essential. With sustained political commitment and strategic investment, Nepal can transform its MRV system from a foundational concept into a powerful engine for climate accountability, transparency, and ambition.
Integrating MRV with the Biennial Transparency Report
To comply with its international obligations under the Paris Agreement, Nepal is required to submit a Biennial Transparency Report (BTR). This reporting framework is central to the Enhanced Transparency Framework (ETF) of the Paris Agreement and includes several critical components:
● A national inventory of greenhouse gas (GHG) emissions, covering all major sectors such as energy, agriculture, land use, waste, and industry;
● Progress tracking toward achieving the country’s Nationally Determined Contribution (NDC) targets, including sectoral mitigation actions;
● Adaptation communication, which outlines how the country is responding to climate risks and building resilience across vulnerable communities and ecosystems;
● Reporting on support received, particularly in the form of climate finance, capacity-building initiatives, and technology transfers from international partners.
Delivering on these requirements demands more than just emissions accounting—it requires integrated, multi-dimensional MRV systems capable of capturing, analyzing, and communicating diverse types of climate-related data. For example, Mitigation MRV tracks greenhouse gas (GHG) emission reductions across key sectors using internationally accepted methods. It shows how policies like renewable energy expansion, energy efficiency, and sustainable land use contribute to emission cuts.
Adaptation MRV focuses on resilience, monitoring indicators such as reduced climate-related losses, improved food and water security, and better disaster preparedness. Support MRV ensures transparency in climate finance, capacity-building, and technology transfer. It tracks how resources are used, evaluates their impact, and builds trust with donors and stakeholders. Integrating these three strands—mitigation, adaptation, and support of MRV—into a cohesive system will strengthen Nepal’s credibility on the global stage, improve access to international climate finance, and help guide strategic decision-making at home. A robust MRV architecture not only fulfills reporting obligations but also becomes a critical tool for steering climate-compatible development in Nepal.
What Needs to Be Done?
1. Legal and institutional reform: Nepal must legally recognize the MRV framework and clearly assign roles across central, provincial, and local governments. Embedding these responsibilities in climate policies and regulations will strengthen enforcement, coordination, and long-term sustainability.
2. Capacity building: Sustained training is essential for government staff, technical experts, and non-state actors. Skills must extend beyond data collection to areas like GHG inventories, statistical modeling, climate risk assessment, and gender-responsive reporting.
3. Digital infrastructure and data sharing: A centralized, interoperable digital MRV platform is needed to collect, validate, and analyze real-time data across sectors. Standardized formats, open-access dashboards, and strong data protection will enhance transparency and efficiency.
4. Stakeholder coordination: Clear roles, reporting timelines, and performance indicators must be defined for all institutions. Strengthening collaboration among national, provincial, and local actors—along with civil society and the private sector—will improve data quality and inclusiveness.
5. Donor alignment and trust: A robust MRV system demonstrates Nepal’s commitment and builds confidence with international partners. Meeting global reporting standards, like the Biennial Transparency Report (BTR), will improve access to climate finance and technical support.
The Way Forward
Climate change poses one of the greatest challenges in Nepal’s development journey—but it also presents a unique opportunity to build more transparent, data-driven, and resilient institutions. A well-functioning MRV system is not just a reporting tool—it is a strategic asset that enables the country to measure progress, guide investments, and deliver real results for communities and ecosystems.
To translate commitments into outcomes, Nepal must treat MRV as a national development priority. Strengthening MRV systems is a prerequisite for unlocking climate finance, meeting Nationally Determined Contribution (NDC) targets, and achieving a just and inclusive transition to a low-carbon economy. By institutionalizing MRV with legal backing, investing in digital tools, and fostering a culture of collaboration and accountability, Nepal can move from aspirational promises to measurable climate action—demonstrating both to its citizens and to the international community that it is serious about building a sustainable future.
(Budhathoki is a development professional based in Kathmandu, focused on climate change, climate finance, and governance.)
