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Nepal participated in 324 out of the 392 negotiation meetings it was expected to attend during the 29th Conference of Parties to the United Nations Framework Convention on Climate Change (UNFCCC) (COP29) held in Baku, Azerbaijan, from Nov 11 to 22. At an event titled ‘Reflection on Nepal’s Participation in COP29 and the International Court of Justice’, organized by the Ministry of Forests and Environment (MoFE) in Kathmandu on Thursday, Ministry Secretary Deepak Kumar Kharal explained that COP29 featured negotiations on 14 agenda items and 96 sub-agendas, totaling 392 meetings, of which Nepal missed 68.

Each of these 14 thematic agendas was attended by Nepali negotiation teams, led by joint-secretaries specializing in the respective topics. Despite criticism at home over the size of the Nepali delegation sent to COP29, Secretary Kharal attributed the missed meetings to an insufficient number of negotiators. He emphasized that the ministry had learned valuable lessons and would aim for better preparation at COP30 and beyond. “We need to establish a dedicated and permanent negotiation team with clear standards and procedures for inclusive participation, involving national delegates, technical experts, and relevant stakeholders,” Kharal said. He also stressed the importance of capacity building for national delegates and technical experts to enhance negotiating skills.

Manjeet Dhakal, a Nepali negotiator and Advisor to the Chair of the Least Developed Countries (LDC) for the multilateral process under the UNFCCC, highlighted the significant improvement in Nepal’s participation in COP over the years, both in terms of quantity and quality. “In the past, Nepal was represented at COP by a very small team from MoFE. However, these days, representatives from other ministries, such as the Ministry of Foreign Affairs and the Ministry of Finance, as well as private sector actors and civil society organizations, also join the discussions, contributing their expertise as needed.” 

Dhakal added that Nepal’s focus has expanded from a limited set of priorities, such as climate finance and adaptation, to a broader range of thematic areas. “For instance, this year alone, we actively participated in discussions across 14 thematic groups, including carbon emissions reduction, loss and damage, and mitigation. This demonstrates that both the quantity and quality of our participation have improved significantly.”

Nepali officials’ inclusion in various global committees also reflects the country’s growing negotiating power. Dhakal pointed out that Maheshwar Dhakal, joint-secretary at MoFE, serves on the Loss and Damage Fund, while Naresh Sharma, under-secretary at MoFE, is a member of the Adaptation Fund. “Through these committees, Nepal is making meaningful interventions.” 

In addition to thematic meetings, COP29 included sessions of the Subsidiary Body for Scientific and Technological Advice (SBSTA), the Subsidiary Body for Implementation (SBI), the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA), and the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP). These also included 48 coordination meetings of the Least Developed Countries (LDC) Group and ‘G77 and China’, seven plenary sessions, 10 head-of-delegates meetings, and 115 daily thematic coordination meetings, bringing the total to over 500 meetings in which Nepal needed representation.

Buddi Sagar Poudel, the joint-secretary heading the Forest and Watershed Division at the MoFE, also serves as a negotiator representing Nepal at climate conferences. Leading Nepal’s efforts on the ‘Enhanced Transparency Framework’ and ‘Global Stocktake’ themes, he noted that while Nepal has actively engaged in significant negotiations, missing less-priority meetings is inevitable due to the simultaneous nature of numerous sessions. “However, the fact is that we have weak negotiating power. The meetings are multilateral, not bilateral, and sometimes, we feel intimidated in front of hundreds of representatives from powerful countries. There’s a fear of appearing uninformed if we make a mistake. If we fail to communicate our stance clearly and convincingly, we risk offending others or being misunderstood.”

Before COP29, Nepal undertook extensive preparations, including forming thematic groups, conducting consultations and council meetings, training negotiators, organizing a National Climate Summit, and drafting Nepal’s position paper. During COP29, Nepal not only participated in official meetings but also organized side events in pavilions and held bilateral discussions. However, Nepal did not have its own pavilion this time and relied on borrowing space from other countries. This limitation underscored the need for greater logistical and strategic investment in Nepal’s future participation.

To address multilateral challenges, Poudel stressed the importance of building a robust pool of negotiators. “We need individuals with strong research and expertise on the topics being negotiated, but Nepal has very few such resources.” He proposed several measures to strengthen Nepal’s negotiation capacity, including institutional memory and the development of a consistently trained negotiation team. “For instance, if a meeting involves cross-cutting issues related to climate change and energy, we need informed representatives from the Ministry of Energy, Water Resources, and Irrigation, or experts from the relevant field. The same applies to other sectors, like finance.” 

To enhance both the quantity and quality of negotiators, Poudel recommended early training and practical exposure. “Institutions must invest in their negotiators by organizing model COPs and offering practical sessions. Negotiation is a continuous learning process—after attending two or three COPs, a negotiator becomes experienced and can engage more effectively,” Poudel said. Practical exposure would also help build confidence among negotiators when dealing with representatives of more powerful nations.

At COP29, Nepal coordinated thematic presentations and advocated for its position at the LDC meetings. In the G77 and China meetings, Nepal presented the LDC position while also lobbying for its own priorities. According to government officials, Nepal was successful in doing so.

Nepal also participated in other key events, including the Hindu Kush Himalaya Environmental Ministers’ Meeting organized by Bhutan and the High Ambition Coalition Meeting hosted by the Marshall Islands. There too, Nepal got a chance to press its Mountain agenda. Such participation helped Nepal raise awareness about the unique challenges faced by mountain regions, bringing attention to the importance of including mountain-specific strategies in global climate policies.

On the sidelines of COP29, Nepal held numerous bilateral meetings with key stakeholders, including the Secretary-General of the United Nations (UN), the President of the World Green Economy Organization (WEGO), the President of the Maldives, the UN Assistant Secretary-General, and the Executive Director of the Loss and Damage Fund, among others. These discussions provided Nepal with a platform to build alliances and secure commitments for support in addressing climate vulnerabilities. Secretary Kharal noted that UN Assistant Secretary-General Elliott Harris expressed strong support for Nepal’s climate efforts, pledging to provide remarks on behalf of the UN Secretary-General at any event organized by Nepal, provided adequate notice is given. “He was very pleased with Nepal’s commitment to combating the climate crisis, and this is a result of our extensive meetings, negotiations, and efforts on achieving national and global goals.” 

Nepal made significant strides at COP29 by successfully advocating for the mountain agenda and addressing critical climate issues, according to Kharal. “Mountain is not a formal agenda in COP, but Nepal emphasized the inclusion of mountain-based actions and a mountain-to-marine approach to tackle climate change impacts.” Nepal also played a leading role in coordinating and raising awareness about the common mountain agenda, drawing international attention to the unique challenges faced by mountain regions.

In climate finance, Nepal and other climate-vulnerable countries successfully lobbied to increase annual funding from $100bn to $300bn. The country supported the operationalization of the Loss and Damage Fund, which includes a $1.3trn roadmap from Baku to Belém (Brazil), set to begin in 2025. “We strongly said that we won’t take loans for climate finance,” Kharal said. This firm stance highlighted Nepal’s demand for equity and fairness in accessing climate finance.

Additionally, Nepal highlighted the importance of implementing the National Adaptation Plan (NAP) and operationalizing Article 6 of the Paris Agreement for carbon trading. A bilateral agreement with Sweden for carbon trading marked a key milestone in advancing Nepal’s mitigation efforts. This agreement demonstrated Nepal’s growing capability to engage in meaningful international collaborations.

Nepal also demonstrated progress in transparency and gender inclusion, supporting the launch of the Baku Global Climate Transparency Platform and the ‘Building National Capacities of Nepal to Meet Requirements of the Enhanced Transparency Framework of the Paris Agreement’ (CBIT) Project. The country committed to extending the Enhanced Lima Work Plan for Gender and Inclusion until 2035. High-level political engagement ensured Nepal’s active participation in international dialogues, resulting in Nepal’s election as a member of the Adaptation Fund Board and accreditation for the National Trust for Nature Conservation (NTNC). These achievements underscored Nepal’s commitment to inclusivity and accountability in climate action.

Besides these achievements, Dhakal noted other milestones in Nepal’s climate diplomacy. In May 2024, Nepal hosted the International Expert Dialogue on Mountains, People, and Climate Change, which was attended by a representative from Azerbaijan, the host of COP29. Additionally, Nepal was invited to the pre-COP29 ministerial meeting for the first time in 12 years. “These achievements indicate that Nepal’s voice is being heard on the global stage,” Dhakal said. Such recognition marks a shift in Nepal’s global standing, opening doors for more significant collaborations.

While acknowledging the progress, Dhakal stressed that more work needs to be done. “We are never fully satisfied, but looking back at where we started, we have made significant progress.” However, this progress must be supplemented with more strategic planning and capacity-building initiatives to maximize Nepal’s impact in global forums.

Joint-secretary Poudel proposed hiring international trainers to provide specialized training. “Such training is not only crucial for COPs but also for other multilateral meetings and negotiations,” Poudel pointed out. “Moreover, these training shouldn’t be limited to one or two officials but should involve at least 15–20 officers to build a permanent negotiation team.” 

At Thursday’s event, Foreign Minister Arzu Rana Deuba said that through effective negotiations, Nepal should aim to secure at least $10bn annually in climate finance from the designated $300bn global climate fund. She emphasized the need for Nepal to raise its voice more assertively on the global stage for climate justice, climate finance, and compensation. She highlighted the paradoxical situation where Nepal, despite contributing negligibly to carbon emissions, suffers disproportionately from their adverse effects. This underscores the necessity for Nepal to play a more active role internationally to tackle these challenges and advocate for equitable solutions.

Minister Rana also shared that on Dec 9, her delegation, representing Nepal, made its first oral submission on ‘State Responsibilities on Climate Change’ at an international hearing at the International Court of Justice. During the hearing, she forcefully raised the issue of Nepal enduring consequences for mistakes it never made and stressed the need for responsible developed nations to take equal responsibility in addressing the climate crisis and establishing the principle of climate justice. Such advocacy is critical for amplifying Nepal’s voice on the international stage.

Prime Minister KP Sharma Oli also vowed that the government would take the lead in managing climate finance to cope with the climate crisis. He emphasized that climate change issues in mountains are not just the concerns of mountainous countries. “Our efforts should be for protecting the mountains to seas,” he stressed. He urged stakeholders to prepare for COP30 through bold negotiations and a thorough evaluation of COP29. 

Key achievements

• Nepal played a pivotal role in highlighting mountain dialogues and drawing international attention to the mountain agenda.
• Successfully coordinated the collective mountain agenda and ensured high-level political engagement.
• Signed an agreement with the Swedish government for carbon trading.
• Nepal was elected as a member of the Adaptation Fund Board and secured accreditation for the National Trust for Nature Conservation (NTNC).
• Launched two climate-related projects in the presence of a Global Environment Facility (GEF) representative.
• Enhanced the capacity of Nepali delegates in climate negotiations and technical discussions.

Commercial banks in Nepal are experiencing a decline in dividend capacity due to weak credit demand and high non-performing loan levels amid a prolonged economic slowdown. Most banks declaring dividends for the fiscal year 2023/24 have reduced their payouts, with some opting not to distribute dividends at all.

Of the 20 commercial banks in the country, 11 have decided to distribute dividends from their earnings in the previous fiscal year, while five have opted not to distribute dividends. Four are yet to announce their decision on dividend payouts. Among the 11 banks which provided dividends to their shareholders, seven have reduced their rates compared to the previous fiscal year.

Himalayan Bank Ltd, Machhapuchchhre Bank Ltd, NMB Bank Ltd, Rastriya Banijya Bank Ltd and Prabhu Bank have announced they would not distribute dividends from last fiscal year’s profits. Among these, Machhapuchchhre had distributed 14 percent dividend in 2022/23 (13.3 percent bonus shares and 0.7 percent cash for tax purposes). Rastriya Banijya Bank had provided 5.5 percent cash dividend last year. Himalayan, NMB, and Prabhu Bank did not distribute dividends last year either.

Four commercial banks—Kumari Bank Ltd, Nepal Investment Mega Bank Ltd, Nepal Bank Ltd and NIC Asia Bank Ltd—are yet to make their dividends announcements. Despite low credit expansion, commercial banks posted a profit of Rs 64.15bn in 2023/24, a 13.4 percent compared to net profit of Rs 56.57bn in 2022/23. However, most banks could not increase their dividend payouts as they had to set aside substantial funds for provisioning for their non-performing loans.

Commercial banks set aside a combined Rs 201bn for provisioning in 2023/24, compared to Rs 147bn in 2022/23. Himalayan, NMB and Prabhu have not distributed dividends for two successive fiscal years. Himalayan is not in a position to distribute dividend because non-performing loans of its merging partner—Civil Bank—was 27 percent at the time of the merger which necessitated provisioning of substantial funds. The two Class ‘A’ banks started joint operation after merger on Feb 24 last year.

Four banks have increased their dividend payouts compared to the previous fiscal  year. Standard Chartered Bank Nepal has announced a dividend of 25.5 percent (6.5 percent bonus shares and 19 percent cash) from its profits of 2023/24 compared to 19 percent cash dividend a year earlier. Payout of Nepal SBI’s dividend payout has increased slightly from 10.55 percent (3.75 percent bonus shares and 6.8 percent cash) to 10.65 percent (3.8 percent bonus shares and 6.85 percent cash). Prime Commercial Bank Ltd and Agricultural Development Bank (LTD), which didn’t provide dividends from the earnings last year, have announced five percent cash dividend and 10.53 percent dividend (three percent bonus shares and 7.53 percent cash), respectively, this year. However, Everest Bank Ltd, Nabil Bank Ltd, Global IME Ltd, Laxmi Sunrise Ltd, Sanima Bank Ltd, Citizens Bank International Ltd and Siddhartha Bank Ltd have reduced their dividend rates.

The death of India’s former Prime Minister Manmohan Singh nudges us to revisit his legacy in policymaking. As India’s technocrat Finance Minister in the PV Narasimha Rao government from 1991-1996, Singh is credited for liberalizing India’s economy at a time when it was nearing an economic crisis, caused by political actors governing the economy, and dismal foreign exchange reserves enough only to support imports for a few weeks. India was then suffering from low output and inefficient markets. 

However, Singh’s aggressive liberalization policies raised domestic productivity, making way for decades of economic expansion. Today, Nepal is also dealing with major institutional inefficiencies, and although not to the same magnitude, an underperforming economy. India’s liberalization story helps understand what holds Nepal back from realizing its economic potential, and as Singh said in his historic 1991 budget speech, from awakening, prevailing and overcoming.

India’s growth, despite being fueled by its geographic advantages, was held back by excessive regulations and centralized economic policies. Before 1991, trade in India remained strictly controlled by political actors that governed the economy. The License Raj, a protectionist system initially designed to nurture young industries, slowed economic activities through its stringent licensing requirements. While elite-backed businesses were able to obtain licenses easily, smaller industries at the core of the economy found it impossible to do so. Low domestic production and widespread inefficiencies largely suppressed economic activities. 

In 1991, India experienced a paradigm shift when the economic reforms brought by Singh reduced licensing requirements, eased trade, deregulated institutions. This increased productivity reformed the economy and political institutions, strengthened core industries and attracted FDI rapidly.

It is worth noting that while India opened up, Nepal also attempted to follow suit. In fact, Praveen Dixit, a member of the USAID’s economic liberalization project in Nepal, recounts in one of his works that Nepal had liberalized its currency before the Indian currency was fully liberalized. Due to unrestricted access to international trade, Nepal was on its way to align with the global economic order. By the end of the 90’s, public enterprises, banks and financial enterprises were privatized; tax reforms were introduced; industry registration was streamlined; and stock trading began. Judicial reforms enhanced the rule of law. 

Today, as India is set to become the world’s third largest economy, Nepal lags behind. This raises an important question—although India and Nepal underwent significant liberalization at the same time, why has Nepal’s liberalization story diverged so significantly?

Nepal’s political instability caused by frequent changes in governments has disrupted long-term planning and policy continuity. Between 1990 and 2024, there have been 32 government changes, a transition from monarchy to a federal democratic republic and institutional frameworks have been overridden by inefficiencies. As Dixit notes, the surge of FDI that followed liberalization in the 1990s came to a halt after the 1994 midterm polls. This disruption highlights how political instability has a direct and negative impact on Nepal’s economic progress. A simple extrapolation gives us an idea of how much economic potential has been wasted in the last 34 years. 

Nepal’s hydropower sector exemplifies these inefficiencies. While hydropower has the potential to transform Nepal into a key energy exporter, institutional inefficiencies prevent this. For example, the Arun III hydropower project, first conceived by the government in 1992, reached financial closure 28 years after its inception in 1992. Another case, a recent tripartite electricity export agreement between Nepal, India and Bangladesh allowed Nepal to earn around Rs 3.8m by exporting electricity for just a little less than 12 hours to Bangladesh on Nov 15. Nepal is projected to make around Rs. 1.2bn annually by selling electricity to Bangladesh for five months each year. Although a net exporter of electricity, the NEA’s margin from exports is only Rs 120m, 0.12 percent of Nepal’s electricity exports. Had this agreement been signed a decade ago, Nepal today would have earned enough to construct a power plant of the size of the Sunkoshi III hydropower project. Combined, these examples highlight the ineffectiveness of institutions working to transform Nepal into a regional hub for electricity trade in South Asia. Clearly, Nepal’s institutional frameworks prevent it from realizing its comparative geographic advantage.

Singh’s legacy highlights the transformative potential institutions have. As the economic center of gravity shifts eastward, Nepal can reap benefits from regional growth. Nepal’s geographic endowments offer immense opportunities for growth, but they alone cannot guarantee prosperity. Without healthy institutions, its comparative advantages will remain underutilized. Therefore, Nepal’s leaders must embrace bold reforms to address inefficiencies within institutions, as Singh did, and unlock the economy’s full potential. Without institutional reforms, Nepal may risk missing the window to achieve sustainable economic development.

Langtang, Nepal’s third most popular tourist destination, attracts thousands of domestic and international trekkers annually. However, locals have not been able to get much benefit from tourism—a major source of revenue for Nepal—due to inadequate government investment in infrastructure.

Tourist hotspots like Langtang, Gosainkunda, and settlements on the Tamang Heritage Trail see a high influx of visitors. According to Langtang National Park, it mobilized Rs 41.05m from entry fees from 32,597 tourists in fiscal year 2023/24. Likewise, it collected Rs 3.42m as royalty from forest products and Rs 51,017 as fine. In 2022/23, a total of 30,159 tourists visited the national park, contributing Rs 42.47m to the state coffers, according to Ganesh Prasad Adhikari, the information officer at the Dhunche-based Langtang National Park Office. 

Langtang National Park charges Rs 100 for Nepali visitors, Rs 1,500 for SAARC nationals, and Rs 3,000 for other foreign tourists. However, local tourism entrepreneurs argue that the revenue collected is not reinvested sufficiently into infrastructure development.  

Subba Lama, proprietor of Hotel Red Panda in Chandanbari, said tourism destinations in the Langtang region lack proper amenities. “Despite its religious and tourism significance, the Gosainkunda trail lacks comprehensive development plans. Even a tourist information centre has not been established. Above Chandanbari, internet access is almost non-existent. How can we ensure convenience for tourists without proper communication facilities?” he questioned.  

Entrepreneurs also criticize the government for neglecting emergency rescue services and tourist information centres which are essential for enhancing the visitor experience.

Revenue generated from tourists is deposited with the federal government and later shared with provincial and local governments. Although all three tiers of the government are collecting taxes, the collected revenue has not been channeled for the development of areas from where it is collected.

Davasidar Waiba, Ward Chair of Gosainkunda Rural Municipality-6, said that providing only basic facilities is not enough. “Additional amenities like well-maintained trails, tourist information centres, and other infrastructures are vital,” he added.

Local representatives and residents believe that federal and provincial governments should coordinate and allocate resources to address these gaps. They say a lack of synergy among three tiers of government has hindered progress in tourism and infrastructure development.

Bongjomane and Jyarsha Gothen community forests above Gatlang in Aamachhodingmo Rural Municipality-3 were devastated by a fire 15 years ago. Despite repeated assurances from various government ministers, no reforestation initiatives have been implemented. “Government representatives have visited the area, made speeches, but left without doing anything. No budget has been allocated for reforestation,” he added.

Minister for Forest and Environment of Bagmati Province Government, Krishna Prasad Silwal, recently visited the area and stressed the need for scientific studies before launching reforestation projects. Ashok Kumar Ghimire, chief of the District Coordination Committee, Rasuwa, told Minister Ghimire to formulate plans to rehabilitate the forest instead of just touring the area. 

Ram Sharan Gajurel, who leads a federation of hotels and tourism enterprises, said the government should not merely collect revenue from tourists but also focus on developing tourism infrastructure. He highlighted the need to develop trekking routes, rest areas, water and sanitation facilities, electricity, information centers at various locations, and proper tourist amenities. “While the region has significant potential for religious and ecotourism across all five rural municipalities, there are challenges in development vision and leadership,” Gajurel said. “Local governments should collaborate with businesses and stakeholders to create comprehensive tourism promotion plans.”

Aamachhoding Rural Municipality offers numerous tourism opportunities. “Beyond well-known locations like Paldor Peak, Jageshwar Kunda, Dilpu Kunda, Parbati Kunda Gopa Kunda and Sanzen valley,  there are other interesting destinations like Golsung, Gatlang, Chilime, Tatopani, Nagthali, and Thuman that showcase the depth of Tamang cultural heritage,” said Bikas Lama, a seasoned trekking guide.

Similarly, promising locations in Gosaikunda Rural Municipality-2 like Dudh Kunda and Pangsang are also awaiting tourists. Local youth social worker Kaminu Tamang said Dudh Kunda lacks proper infrastructure. “The area lacks adequate accommodation despite having breathtaking views accessible within two days,” he added.

Fikuri highlands in Uttargaya Rural Municipality-2, is a stunning high-altitude scenic spot. From here, visitors can enjoy panoramic views of Nuwakot, Rasuwa and Dhading districts. The Fikuri region, which sits at an elevation of approximately 3,800 meters, offers spectacular views of Rasuwa, Nuwakot, and Himalayan ranges including Langtang, Gosaikunda, Nargajun, Kakani, Ganesh, and Dorje Lakpa. Additional attractions include Uttargaya Dham and Bhange waterfall. 

Similarly, Jure Dhunga-Naukunda trail in Naukunda Rural Municipality holds significant tourism potential, according to vice chairperson Chandra Bahadur Tamang. “The local government can generate substantial tourist revenue by promoting this trail,” he added.

The national park and its wildlife, including red pandas, snow leopards, and deer, attract tourists but create conflicts with local farmers. Wild animals frequently destroy crops, forcing some farmers to abandon agriculture. “Instead of spending on compensation, preventive measures against wildlife intrusion should be prioritized,” said Jhanknath Neupane, a social worker from Kalika Rural Municipality-2.  

Langtang National Park generates over Rs 40m annually, but this revenue fails to translate into tangible development for the region. The existing revenue allocation policy proposes distributing revenue among different tiers of government: 50 percent to the federal government, and 25 percent each to the provincial government and local government. However, this allocation is not effectively being used for tourism sector development.

Amar Raj Mishra, a member of the National Natural Resources and Fiscal Commission, said royalty is split among five sectors—water resources, electricity, forests, conservation areas and tourism. “The commission can only recommend conditional grants, it is up to the government to take the final decision,” he added.

Locals say the Langtang National Park Buffer Zone Management Committee has not developed a systematic plan for proportional budget distribution. Moreover, there is no mandatory requirement to allocate funds specifically to the tourism sector.

Experts and stakeholders suggest better coordination between federal, provincial, and local governments to ensure fair allocation of resources and foster sustainable tourism development. Unless the government addresses these shortcomings, tourism potential of Langtang Region, like other areas of the country, risks remaining underutilized.

Call to reinvest tourism revenue in Lantang

Although royalty collection from tourism is high, there has not been much focus on tourism sector development in the national park and surrounding areas. Most of the spending made from this share of royalty that the area receives does not contribute to tourism development. Some resources are allocated to nature conservation.

The religious tourism area of Gosaikunda and cable car projects are under discussion of late. However, investment or economic resources for the project has not been secured.  or investment secured. Likewise, although the district is home to different tourism products and services like Uttargaya Dham, Kalika Mai Temple, Langtang National Park, Gosaikunda, and Ganesh Himal range, no effort has been made to develop the package by including all these attractions.

Similarly, the region is home to globally significant wetland sites and endangered wildlife and plant species. These natural heritage and biological diversity must be preserved and handed over to future generations. Successful tourism development can create employment opportunities for youth within the country.

For this, the government should encourage the private sector to build quality hotel and lodge facilities, build infrastructure for clean and competitive tourism, establish a business revival fund targeting potential pandemic-related challenges, and strategically reinvest a substantial portion of tourism revenue back into sector development.

The impact of climate change is becoming evident not only in the tourism sector but also in agriculture and nature, said Nurpusangbo Ghale, Chairperson of Naukunda Rural Municipality. 

He highlighted that, in collaboration with the National Trust for Nature Conservation and other stakeholders, with support from the Green Climate Fund, efforts are being made in the Gandaki Watershed Climate Resilience Project area. These efforts aim to enhance the climate resilience of vulnerable communities and ecosystems, reduce climate-induced disasters and risks, implement disaster response strategies, and promote nature-based solutions, climate resilience, and climate coding. 

Chairperson Ghale also emphasized the need to mitigate climate change impacts, promote tourism by identifying new destinations, and increase investment in infrastructure development. 

Meanwhile, Information Officer Ashesh Khadka from the Ministry of Tourism, Culture, and Cooperatives of Bagmati Province stated that the provincial government does not collect taxes independently and operates based on budgets and plans prepared by the Ministry of Finance. 

He added that development projects carried out in coordination with local governments and other tiers of government could prevent duplication and increase community ownership. However, locals have complained that funds allocated by the provincial government are often not utilized effectively, as they are distributed based on political influence rather than addressing urgent needs.

This story has been produced with the support of the Internews Earth Journalism Network through the Media for Inclusive Green Growth project