Second Nationally Determined Contribution (NDC), 2020

1. Introduction Nepal is among the most vulnerable countries to climate change. It is at high-risk due to the country’s fragile topography, the climate-sensitive livelihoods of the people and their limited adaptive capacity. Nepal is committed to acting on climate change in line with the Paris Agreement, despite the country’s negligible emissions. It is because efforts to limit global average temperature rise to 1.5°C would result in significantly lower risks for Nepal when compared to 2°C or higher. These risks are in addition to the existing impacts and vulnerabilities of climate change in the country. Nepal, therefore, calls on all Parties to increase ambition and move collectively onto emission reduction pathways consistent with the Paris Agreement's 1.5°C warming limit. The Government of Nepal hereby presents its enhanced Nationally Determined Contribution (NDC) under the Paris Agreement for the period 2021-2030, following Articles 4.2 and 4.11 of the Paris Agreement, and Decision 1/CP.21 paragraph 23 and 24, and other relevant provisions of the Paris Agreement. The NDC takes into account the principle of common but differentiated responsibilities and respective capabilities, in light of national circumstances.

2. Nepal's Long-Term Low Greenhouse Gas Emission Development Strategy Nepal envisions achieving socio-economic prosperity by building a climate-resilient society. To this end, the country has developed its policy and institutional framework. In accordance with Article 4, paragraph 19 of the Paris Agreement, Nepal is formulating a long-term low greenhouse gas emission development strategy by 2021. The strategy aims to achieve net-zero greenhouse gas emission by 2050.

3. Mitigation Component of Nationally Determined Contribution (NDC) Quantified targets of NDC Type Activity-based targets and policy targets in key sectors, including emissions reduction in some sectors 1 The targets in this section, unless otherwise specified, are conditional upon international support. Coverage Energy; Industrial Processes and Product Use (IPPU); Agriculture, Forestry and Other Land Use (AFOLU); and Waste Timeframe From 1st January 2021- 31st December 2030 Single year target – 2030, including updates on 2025 targets Energy (Energy generation)  By 2030, expand clean energy generation from approximately 1,400 MW to 15,000 MW, of which 5-10 % will be generated from mini and micro-hydro power, solar, wind and bio-energy. Of this, 5,000 MW is an unconditional target. The remainder is dependent upon the provision of funding by the international community.  By 2030, ensure 15% of the total energy demand is supplied from clean energy sources. (Transport)  Sales of electric vehicles (e-vehicles) in 2025 will be 25% of all private passenger vehicles sales, including two-wheelers and 20% of all four-wheeler public passenger vehicle sales (this public passenger target does not take into account electric- rickshaws and electric-tempos) in 2025. Due to this e-vehicle sales target, fossil fuel energy demand for the transportation sector will decrease from approximately 40 million GJ in the Business As Usual (BAU) scenario in 2025 to 36 million GJ. This would be around a 9% decrease in fossil fuel dependency. This target will reduce emissions from a projected BAU of 2,988 Gg CO2 eq. in 2025 to 2,734 Gg CO2 eq., which is around 8% decrease in emissions.  By 2030, increase sales of e-vehicles to cover 90% of all private passenger vehicle sales, including two-wheelers and 60% of all four-wheeler public passenger vehicle sales (the public passenger target does not take into account electric-rickshaws and electric-tempos). As a consequence, energy demand for fossil fuels will decrease from approximately 48 million GJ in the 2030 BAU scenario to 34.5 million GJ, which is around 28% decrease in fossil fuel dependency. This target will reduce emissions from a projected BAU of 3,640 Gg CO2 eq. in 2030 to 2,619 Gg CO2 eq., which is around 28% decrease in emissions.  By 2030, develop 200 km of the electric rail network to support public commuting and mass transportation of goods. 2 (Residential cooking and biogas)  By 2030, ensure 25% of households use electric stoves as their primary mode of cooking.  By 2025, install 500,000 improved cookstoves, specifically in rural areas.  By 2025, install an additional 200,000 household biogas plants and 500 large scale biogas plants (institutional/industrial/ municipal/community). These three combined targets can reduce emissions from approximately 1,999 Gg CO2 eq. in BAU in 2025 to approximately 1,774 Gg CO2 eq. This is around 11% reduction in emissions from the cooking sector. For 2030, these three targets can reduce emissions from approximately 2,064 Gg CO2 eq. from BAU to 1,599 Gg CO2 eq., which is around 23% reduction in emissions. AFOLU (Forestry)  By 2030, maintain 45% of the total area of the country under forest cover (including other wooded land limited to less than 4%).  By 2030, manage 50% of Tarai and Inner Tarai forests and 25% of middle hills and mountain forests sustainably, including through the use of funding from REDD+ initiatives. Waste  By 2025, 380 million litres/day of wastewater will be treated before being discharged, and 60,000 cubic meters/year of faecal sludge will be managed. These two activities will reduce around 258 Gg CO2 eq. compared to BAU. Detailed Description of Mitigation Component of NDC1

1. Quantified information on the reference point, including, as appropriate, a base year Nepal's NDC comprises of sectoral activity-based targets. As per the Greenhouse Gas Inventory, prepared for the Third National Communication (TNC), the net a Reference year(s), GHG emissions of 31,998.91 Gg CO2 eq. was estimated base year(s), reference for Nepal in the base year 2011. The direct GHG period(s) or other starting emission for the following sectors are: point(s) Energy: 14713.36 Gg CO2 eq. IPPU: 379.80 Gg CO2 eq. AFOLU: 15982.16 Gg CO2 eq. Waste: 923.59 Gg CO2 eq. b. Quantifiable information Energy on the reference  Current total installed capacity for energy 1 Information to facilitate Clarity, Transparency and Understanding (ICTU) Guidelines 3 indicators, their values in generation is approximately 1400MW, mainly from the reference year(s), hydropower. Nepal categorizes mini and micro- base year(s), reference hydropower (i.e. hydropower of less than 1MW period(s) or other starting capacity) and solar and wind as renewable point(s), and, as energy. applicable, in the target  Current energy demand satisfied by clean energy year sources is well below 15%.  The current share of electric vehicles is approximately 1%.  The current rail network –a reference not available  Currently, around 5% of households use electric induction stoves, either as their primary or secondary mode of cooking. Industry  Currently, emission standards are not in place for emissions in the brick and cement industries. Waste  Currently, 2.1 % of wastewater and less than 1% of the faecal sludge is treated. AFOLU (Forestry)  Nepal's 2016 NDC sets a target to maintain 40% of the total area of the country under forest cover.  Current forest cover is approximately 44.74% of which 4.38% is another wooded land (OWL). (Agriculture)  The current soil organic matter content of agricultural land is 2%.  The number of the organic fertilizer production plant is 23.  The number of improved cattle shed is 100,000. c. For strategies, plans The targets in this section, unless specified, are all and actions referred to in conditional upon international support and will be Article 4, paragraph 6, of implemented by 2030. the Paris Agreement, or policies and measures as Energy components of nationally  By 2030, increase the reliable supply of clean determined contributions energy, ensuring access to all. where paragraph 1(b)  Increase the quantity (kWh), quality, reliability, above is not applicable, and affordability of electricity access from 4 Parties to provide other renewable sources. relevant information  Strengthen transmission and distribution links to support upscaling of e-cooking, e-heating, e- transport and charging stations.  Develop enabling environment to provide power to small and mid-size enterprises (SMEs) using distributed renewable energy generation sources.  Promote public electric mobility through policy incentives, including subsidy policies and other financial mechanisms.  By 2025, ensure at least three provinces operate electric public transport, three provinces establish vehicle fitness test centres to monitor and regulate vehicular emissions, and all metropolitan cities have roads paved with bicycle and pedestrian lanes. Agriculture, Forestry and Other Land use (AFOLU) (Forestry)  Forests under community-based management will comprise at least 60% of Nepal’s forest area; management committees will have 50% women representation and proportional representation of Dalits and Indigenous People in key posts.  By 2030, institutional mechanisms and structures in place and adequate provision of budget to ensure social and environmental safeguards including Free, Prior and Informed Consent (FPIC); forest tenure and access to finance and technology for Local Communities, women and Indigenous People.  Ensure fair and equitable benefits (carbon and non-carbon) from sustainable forest management, watershed management, and biodiversity- conservation among Local Communities, women and Indigenous People.  By 2030, upgrade watershed health and vitality in at least 20 districts to a higher condition category.  By 2030, create an inventory of wetlands in Nepal and sustainably manage vulnerable wetlands.  By 2025, enhance the sink capacity of the land- use sector by instituting the Forest Development 5 Fund (FDF) for compensation of plantations and forest restoration.  Increase growing stock including Mean Annual Increment in Tarai, Hills and Mountains.  Afforest/reforest viable public and private lands, including agroforestry.  Restore and manage degraded forest land, including in the Chure region. (Agriculture)  By 2030, soil organic matter content of agriculture land will reach to 3.95%.  By 2030, mulberry and fruit orchard areas will be expanded to 6,000 ha.  By 2030, the number of additional improved cattle sheds will reach to 5,00,000 for quality farm-yard manure production and use.  By 2030, the number of organic fertilizer production plants in the country will reach 100.  Integrate climate change in the upcoming revised Agriculture Policy.  By 2025, update the Rangeland Policy and develop plans for the sustainable management of rangelands.  By 2030, establish 200 climate-smart villages and 500 climate-smart farms.  Promote intercropping, agroforestry, conservation tillage, and livestock and agricultural waste management.  Ensure increased access of climate-smart agricultural technologies to women, Indigenous People, smallholder farmers and marginalized groups.  Protect, promote and support climate-resilient indigenous seeds/crop varieties through community seed banks and national gene banks. Industry  By 2030, adopt low emission technologies in brick and cement industries to reduce coal consumption and air pollution, including through the development and/or enactment of emission 6 standards.  By 2025, formulate guidelines and establish mechanisms to monitor emissions from large industries. Waste  By 2030, create an enabling environment for both public and private sector to treat industrial and municipal waste, including faecal sludge.  By 2030, adopt and implement waste segregation, recycling and waste-to-energy programs in at least 100 municipalities.  By 2030, the burning of healthcare waste in 1,400 healthcare facilities will be prohibited by proper management of healthcare waste through the application of non-burn technologies.  Promote the 3Rs (Reduce, Reuse, Recycle) approach to waste management, along with source segregation and management of degradable and non-degradable waste.  Focus on co-production of energy and organic fertilizer from solid waste, wastewater and faecal sludge. Other Relevant Targets (Tourism)  By 2025, formulate and implement nature-based tourism plans in at least five main tourist destinations.  By 2030, ensure at least five tourist destinations are carbon neutral.  By 2030, including measures in policies to offset the carbon footprint of emissions resulting from tourism transport. (Urban Settlements)  Adopt national building codes and prepare Integrated Urban Development Plans (IUDPs) emphasizing low carbon and climate-resilient urban settlements in all municipalities.  By 2025, revise the urban environment management guidelines to incorporate activities 7 related to promoting low carbon and climate- resilient urban settlements. Gender Equality and Social Inclusion (GESI) By 2030, develop an Action Plan for integrating GESI in achieving NDC targets. ● Develop specific programs with dedicated resources (human and financial) to ensure full, equal and meaningful participation of women, children, youth, Indigenous Peoples and marginalized groups in climate change-related policy development; and during the planning, monitoring and implementation processes at local, provincial and national levels. ● Promote the leadership, participation and negotiation capacity of women, Indigenous Peoples and youth in climate change forums. ● Ensure gender-disaggregated data when reporting on progress and achievements. d. Target relative to the See NDC and section 1b. reference indicator, expressed numerically, for example in percentage or amount of reduction e. Information on sources Greenhouse Gas Inventory prepared for the Third of data used in National Communication. quantifying the reference point(s) In the next Greenhouse Gas Inventory, Nepal may f. Information on the update the reference indicators of existing sectors and/or circumstances under may provide new values for sectors not previously which the Party may covered. Nepal will update the values of reference update the values of the indicators in such cases. reference indicators

2. Time frames and/or periods for implementation a. Time frame and/or period for implementation, From 1st January 2021- 31st December 2030. including start and end date, consistent with any further relevant decision adopted by the CMA; b. Whether it is a single- Single year target – 2030, including updates on 2025 year or multi-year target, targets. as applicable. 8

3. Scope and coverage Sectoral activity-based and policy targets, including emissions reduction in some sectors. The Government of Nepal will meet unconditional targets a. General description of from its resources. the target; Conditional targets are dependent on international support on financing, technology transfer and/or capacity building. Sectors: ● Energy o Electricity generation o Transportation o Residential demand (energy demand for b. Sectors, gases, cooking) categories and pools ● Agriculture, Forestry and Land Use (AFOLU) covered by the nationally o Deforestation and forest degradation determined contribution, o Agriculture including, as applicable, ● Industrial process and product use (IPPU) consistent with IPCC ● Waste guidelines; Gases: ● Carbon Dioxide (CO2) ● Methane (CH4)  Nitrous Oxide (N2O) The detailed assessment carried out during the NDC formulation process concluded that the data needed to define targets and to rigorously assess the impact of c. How the Party has policies and actions on emissions for all sectors was not taken into consideration available. paragraphs 31(c) and (d) of decision 1/CP.21; Nepal will extend the scope of the coverage of its NDC overtime to all categories of anthropogenic emissions and removals, as more robust data becomes available. d. Mitigation co-benefits resulting from Parties’ Not applicable. adaptation actions and/or economic diversification plans, including a description of specific projects, measures and initiatives of Parties’ adaptation actions and/or economic diversification plans. 9

4. Planning process a. Information on the planning processes that the Party undertook to prepare its NDC and, if available, on the Party’s implementation plans, including, as appropriate: The NDC was developed through an inclusive and participatory process, with a series of consultations at national and provincial levels. Nepal’s NDC formulation was a country-driven process following the principle of Leave No One Behind (LNOB). A team of experts reviewed overarching and sectoral i. Domestic policies, strategies and programs; and coordinated the institutional process of gathering data and performing analysis. arrangements, These assessments were later verified through in-person public and virtual consultations both at national and provincial participation levels with line ministries, experts, Local Peoples, and women, Indigenous Peoples and youth. engagement with local The reviewed targets served as inputs for the technical communities work, such as the Low Emissions Analysis Platform and indigenous (LEAP) modelling for building scenarios and projections. people, in a The output of the technical work and inputs from gender- consultations were further reviewed and verified by the responsive NDC Working Committee, established by the Ministry of manner; Forests and Environment and comprising representatives from government agencies and relevant experts. Furthermore, the NDC was discussed at the Inter-Ministerial Coordination Committee on Climate Change (IMCCCC) and shared with respective line ministries and civil society organizations for formal input. Finally, it was submitted to the Cabinet for approval. ii. Contextual matters, including, inter alia, as appropriate: Nepal is a landlocked country that lies in the southern face of the Himalayan mountain range. The country is located between 260 22' and 300 27' North latitude and 800 04' and 880 12' East longitude and covers an area of (a) National 147,181 square kilometres. Physiographic regions within circumstances, such the country include High Himal, High Mountain, Middle as geography, Mountain, Siwalik, and the Tarai. Within these regions, climate, economy, elevations range from 59 meters to 8,848 meters. sustainable development and Nepal’s climate is influenced by the Himalayan mountain poverty eradication; range and the South Asian Monsoon. The climate has four distinct seasons: pre-monsoon (March-May), monsoon (June-September), post-monsoon (October- November) and winter (December-February). 10 Nepal is a Least Developed Country (LDC) whose economy mostly depends on agriculture and remittances. Nepal’s per capita GDP was USD 1,085 in the fiscal year 2019/2020 with a growth rate of 7.5% from the last fiscal year. However, the impact of COVID- 19 is already bringing these numbers down. In the past two decades, the proportion of Nepali people living in absolute material poverty has more than halved from 49% in 1992 to 23% in 2015. Rates of child and maternal mortality reduced significantly as well. Primary school enrolment now exceeds 96% and has gender parity. Average life expectancy at birth has crossed 70 years. Nepal’s pace of development has been one of the highest in the world. The latest Multi- dimensional Poverty Index (MPI) shows that 28.6% of the population is still low. This means their lives are impacted by several deprivations simultaneously. However, It also reveals that Nepal halved its official MPI between 2006 and 2014. Building on the relative success of the Millennium Development Goals, Nepal is committed to pursuing and achieving the Sustainable Development Goals (SDGs) by 2030, including the target set by the Sendai Framework on Disaster Risk Reduction. These global ambitions are broadly aligned with the social, economic, environmental and risk reduction aspirations that Nepal has set for itself in its new constitution. (b) Best practices See above 4 (a, i) and experience related to the preparation of the NDC; The provision in the Paris Agreement to limit global average temperature rise to 1.5°C results in lower risks for Nepal when compared to 2°C or higher temperatures (c) Other contextual aspirations and Nepal’s commitment to reduce national GHG emission priorities levels will require international support on financing, acknowledged when technology transfer and/or capacity building. joining the Paris Agreement; Furthermore, Nepal aspires to avoid the residual risks caused by Loss and Damage and to receive financial and any other support for the risks that may still materialize. b. Specific information Not applicable. 11 applicable to Parties, including regional economic integration organizations and their member States, that have reached an agreement to act jointly under Article 4, paragraph 2, of the Paris Agreement, including the Parties that agreed to act jointly and the terms of the agreement, in accordance with Article 4, paragraphs 16–18, of the Paris Agreement; The first global stocktake will take place in 2023. c. How the Party’s Nepal organized the Talanoa Dialogue in 2018, which preparation of its NDC has generated political momentum for enhanced climate been informed by the action, including a call for Parties to update their NDCs. outcomes of the global stocktake, in accordance Nepal’s new NDC is more ambitious than its previous with Article 4, paragraph one, both in terms of its sectoral coverage (through the 9, of the Paris Agreement; inclusion of land-use change and forestry, energy, and waste) and in terms of its net emission reduction contribution. d. Each Party with an Not Applicable. NDC under Article 4 of the Paris Agreement that consists of adaptation action and/or economic diversification plans resulting in mitigation co-benefits consistent with Article 4, paragraph 7, of the Paris Agreement to submit information on: i. How the Not Applicable. economic and social consequences of response measures have been considered in developing the NDC; ii. Specific Not Applicable. projects, measures and activities to be implemented to contribute 12 to mitigation co-benefits, including information on adaptation plans that also yield mitigation co- benefits, which may cover, but are not limited to, key sectors, such as energy, resources, water resources, coastal resources, human settlements and urban planning, agriculture and forestry; and economic diversification actions, which may cover, but are not limited to, sectors such as manufacturing and industry, energy and mining, transport and communication, construction, tourism, real estate, agriculture and fisheries.

5. Assumptions and methodological approaches, including those for estimating and accounting for anthropogenic greenhouse gas emissions and, as appropriate, removals: a. Assumptions and Nepal will account for its anthropogenic GHG emissions methodological and removals using the 2006 Intergovernmental Panel approaches used for on Climate Change (IPCC) Guidelines for National accounting for Greenhouse Gas Inventories. anthropogenic greenhouse gas Two additional guidelines will be considered for quality emissions and removals assurance: corresponding to the  The IPCC Good Practice Guidance and Party’s nationally Uncertainty Management in National GHG determined contribution, Inventory (2000) consistent with decision  The IPCC Good Practice Guideline for Land Use, 1/CP.21, paragraph 31, Land-Use Change, and Forestry (2003). and accounting guidance adopted by the CMA; b. Assumptions and See 5(a) above. methodological approaches used for Nepal will also apply specific assumptions and accounting for the methodologies where relevant when accounting for implementation of various policies and measures in its Biennial Update policies and measures Report, Biennial Transparency Report, or National or strategies in the Communication. 13 nationally determined contribution; c. If applicable, See 5 (a) above. information on how the Party will take into The IPCC 2006 Guidelines has been used to calculate account existing emissions in the GHG Inventory of Nepal’s Third methods and guidance National Communication. under the Convention to account for anthropogenic emissions and removals, in accordance with Article 4, paragraph 14, of the Paris Agreement, as appropriate; d. IPCC methodologies See 5(a) above. and metrics used for Nepal’s emissions will be derived by using the Tier 1 estimating anthropogenic (and in a few cases Tier II) methodologies of the 2006 greenhouse gas IPCC Guidelines. emissions and removals; Due to limited data availability, not all sectors are e. Sector-, category- or covered in Nepal’s NDC. In the future, Nepal would like activity-specific to update its emission inventories, develop emission assumptions, factors for all sectors following the 2006 IPCC methodologies and guidelines, carry out modelling to build sector-specific approaches consistent scenarios and projections, establish a mechanism to with IPCC guidance, as collect, store and maintain datasets and account for appropriate, including, as conditional targets that require financial, capacity applicable: building and technical support. i. Approach to See (e) above. addressing emissions and subsequent removals from natural disturbances on managed lands; ii. Approach used Not applicable. to account for emissions and removals from harvested wood products; iii. Approach used Not applicable. to address the effects of age-class structure in forests; f. Other assumptions and methodological approaches used for understanding the nationally determined 14 contribution and, if applicable, estimating corresponding emissions and removals, including: i. How the reference Not applicable. indicators, baseline(s) and/or reference level(s), including, where applicable, sector-, category- or activity- specific reference levels, are constructed, including, for example, key parameters, assumptions, definitions, methodologies, data sources and models used; ii. For Parties with Not applicable. nationally determined contributions that contain non-greenhouse-gas components, information on assumptions and methodological approaches used in relation to those components, as applicable; iii. For climate Not applicable. forcers included in nationally determined contributions not covered by IPCC guidelines, information on how the climate forcers are estimated; iv. Further Not applicable. technical information, as necessary; Nepal may explore potential markets that allow higher g. The intention to use mitigation ambition while promoting sustainable voluntary cooperation development and environmental integrity. under Article 6 of the Paris Agreement, if applicable.

6. How the Party considers that its NDC is fair and ambitious in light of its 15 national circumstances Nepal is a Least Developed Country with an insignificant a. How the Party contribution to past and current global emissions. considers that its NDC is Nevertheless, Nepal recognizes that to meet the 1.5°C fair and ambitious in the temperature goal, all countries need to undertake light of its national ambitious mitigation actions. This NDC and circumstances; accompanying information reflect Nepal’s commitment under the Paris Agreement to address climate change. b. Fairness See above, 6 (a). considerations, including reflecting on equity; c. How the Party has This NDC broadens the ambition of the 2016 NDC, both addressed Article 4, in terms of sectoral coverage and net emission reduction paragraph 3, of the Paris contribution. Agreement; In addition to the sectoral activity-based targets for transport, cooking, forestry and waste sectors, the 2020 d. How the Party has NDC also includes policy targets for sectors where data addressed Article 4, and/or baseline information is not available such as for paragraph 4, of the Paris electric railroads, solid waste management and Agreement; industries. This paves the way for Nepal to establish an economy-wide emissions target, based on national circumstances and capabilities. In addition to sectoral activity-based targets, Nepal’s e. How the Party has 2020 NDC also includes policy targets (See section 1(d)) addressed Article 4, for areas where data and/or baseline information is not paragraph 6, of the Paris available. These areas include electric railroads, solid Agreement. waste management and industries.

7. How the NDC contributes towards achieving the objectives of the Convention as set out in its Article 2 a. How the NDC See above, 6 (a). contributes towards achieving the objective of the Convention as set out in its Article 2; b. How the NDC See above, 6 (a) and 7(a). contributes towards Article 2, paragraph 1(a), and Article 4, paragraph 1, of the Paris Agreement.

4. Adaptation Component of NDC As per Article 7.10 and 7.11 of the Paris Agreement, Nepal will submit an adaptation communication, which will include its priorities, implementation and support needs, 16 plans and actions through the National Adaptation Plan (NAP). The NAP will outline Nepal's contribution towards meeting the adaptation goals set out in the Paris Agreement and the required means of implementation to implement that contribution fully. Nepal is at high-risk to the effects of climate change. Thus, adaptation will be a constant requirement for the country. Adaptation priorities and actions, as per the National Climate Change Policy (2019), adopt an integrated approach to cover climate-sensitive sectors exemplifying the inter-sectoral nature of the responses. The adaptation priorities cover eight thematic and four cross-cutting areas. The thematic areas are:  Agriculture and Food Security;  Forests, Biodiversity and Watershed Conservation;  Water Resources and Energy;  Rural and Urban Settlements;  Industry, Transport and Physical Infrastructure;  Tourism, Natural and Cultural Heritage;  Health, Drinking Water and Sanitation;  Disaster Risk Reduction and Management. The cross-cutting areas are:  Gender Equality and Social Inclusion (GESI), Livelihoods and Governance;  Awareness Raising and Capacity Building;  Research, Technology Development and Extension;  Climate Finance Management. Nepal will accelerate adaptation by implementing the National Environment Policy (2019), National Climate Change Policy (2019), Environment Protection Act (2019), Environment Protection Regulation (2020), National Adaptation Program of Action (NAPA) (2010), Framework on Local Adaptation Plans of Action (LAPA) (2019), Disaster Risk Reduction National Strategic Plan of Action 2018 – 2030, Fifteenth Plan 17 (2019/2020-2023/2024), and other national strategies and action plans. The key policy priorities of Nepal, on adaptation, include the following:  By 2030, all 753 local governments will prepare and implement climate-resilient and gender-responsive adaptation plans. The plans will address climate change and disaster vulnerability and risks and prioritize adaptation and disaster risk reduction and management measures focusing on women, differently-abled, children, senior citizens, youth, Indigenous Peoples, economically deprived communities and people residing in climate-vulnerable geographical areas.  The National Adaptation Plan (NAP) will be updated every ten years. Likewise, a National level Vulnerability and Risk Assessment (VRA) will be carried out every five years to inform climate resource allocation policies.  By 2025, institutional mechanisms will be established and/or operationalized including Environment Protection and Climate Change Management National Council, Inter-Ministerial Climate Change Coordination Committee (IMCCCC), thematic and cross-cutting working groups (TWGs/CWGs), Climate Change Research Centre, Provincial Climate Change Coordination Committee and local level institutional structures.  By 2021, GESI and Climate Change Strategy and Action Plan, and Climate Resilient Planning and Budgeting Guidelines will be formulated.  By 2025, a strategy and action plan on gender-responsive climate-smart technologies and practices will be prepared and implemented.  By 2025, climate change-related education will be included in all secondary schools and 2,000 climate change adaptation resource persons will be mobilized locally.  By 2025, climate-sensitive diseases surveillance systems will be strengthened through the integration of climate and weather information into existing surveillance systems.  By 2030, the population with access to the basic water supply will increase from 88% to 99%; and population with improved water supply will increase from 20% to 40%. 18  By 2025, climate risk assessment mechanisms will be integrated into WASH program planning and implementation cycle.  Public Weather Services (PWS), including the Agro-Meteorological Information System, will be strengthened and established.  By 2030, a multi-hazard monitoring and early warning system covering all the provinces will be established.  By 2025, a national strategy and action plan on Loss and Damage (L&D) associated with climate change impacts will be devised.  By 2022, a Climate Finance Strategy, and National Capacity on Climate Finance Management will be formulated.  Adaptation measures based on circular economy and sustainable resource use will be developed and implemented. Nepal is in the process of developing its National Adaptation Plan (NAP). Through this process, Nepal intends to implement medium and long-term adaptation needs, including urgent and immediate priorities. Key outputs of NAP include the following:  The NAP will be formulated by 2021. It will incorporate adaptation and resilience milestones to be achieved in the short-term (by 2025), medium-term (by 2030) and long-term (by 2050).  By 2025, a Climate Information System will be established and operationalized.  By 2022, a NAP Monitoring, Reviewing and Reporting Framework will be developed and operationalized.

5. Means of Implementation The cost of achieving Nepal's NDC conditional mitigation targets is estimated to be USD 25 billion. The cost of achieving unconditional targets outlined in the NDC is estimated to be USD 3.4 billion. This estimate only covers activity-based targets and does not include the cost of policies, measures and actions. The cost of achieving the adaptation component will be detailed in the upcoming National Adaptation Plan (NAP). To achieve the conditional targets, Nepal anticipates financial, technological and capacity-building support from global funds such as the Green Climate Fund, Global 19 Environment Facility, Adaptation Fund, Least Developed Countries Fund and bilateral/multilateral agencies and development partners. These funds will be utilized to bolster limited national resources and technical capacities for scaling up climate action. The activities will be implemented for 10 years (2021-2030) by integrating them under the fiscal budget as various subsidy policies, projects or programs. As these targets are well aligned with the country’s existing policies and plans, they will have high ownership and will be implemented on time at the national and sub-national levels. The key elements during implementation include: ● Governance: Enact key acts and regulations and strengthen institutional capacity to facilitate NDC implementation. ● Finance: Develop NDC financing and investment framework along with a strategy to streamline access to funds while bridging the gaps in the public and private sectors. ● Economic Efficiency and Cost Effectiveness: Ensure maximization of economic benefits and cost-effectiveness during the implementation of the NDC. ● Equity and Inclusiveness: Include the principles of equity, ensuring equal access to women, children, youth, Indigenous Peoples and marginalized groups during participation, decision-making and benefit-sharing from NDC implementation. ● Monitoring, Reporting and Verification (MRV): Promote data-driven tracking of NDC targets along with a strengthening of data generation and validation framework. Identify best practices while also incorporating lessons learnt. Maintain transparency by widely disseminating the methodology and results of the MRV. Nepal will prepare a detailed NDC implementation framework/roadmap/plan to ensure the targets will be achieved in a systematic matter. The key elements of this framework/roadmap/plan include: 20 ● Capacity Building: Identify and meet capacity-building needs across government bodies to enable implementation of relevant policies and improve collaboration across key ministries. ● Knowledge Management: Establish processes to retain knowledge within institutions, including through data management systems for transparency and MRV purposes.  Institutional mechanism: Implement the NDC through federal, provincial and local governments, in collaboration with other relevant stakeholders including youth, women and Indigenous People. Coordinate NDC implementation through the Environment Protection and Climate Change Management National Council, Inter-Ministerial Climate Change Coordination Committee (IMCCCC), Thematic and Cross-Cutting Working Groups, and Provincial Climate Change Coordination Committees. ● Communication and Coordination: Develop clear lines of communication between different levels of governance (local, provincial, national and international) and across different sectors and stakeholders, including women, Indigenous Peoples and youth. ● Finance: Develop a financing and investment framework that ensures efficient access to climate funds and evidence-based allocations to areas of demand, including the green recovery agenda. Ensure that the framework differentiates between sources of finance to be used in each area, including in adaptation, mitigation, and Loss and Damage. ● Tools: Develop tools and models to support inclusive decision-making during planning and implementation of activities. 21