Kathmandu, July 3 - Nepal has achieved a significant milestone in climate finance and locally led climate action as the National Trust for Nature Conservation (NTNC) officially signed the Funded Activity Agreement (FAA) for its first Green Climate Fund (GCF) project under the Direct Access modality.
The agreement for the project titled "Building Climate Resilience of Forest-Dependent Communities through Enhanced Livelihood Opportunities and Local Capacity in Karnali Province, Nepal (SAP071)" was signed on the closing day of the 45th Green Climate Fund (GCF) Board Meeting held in Dushanbe, Tajikistan.
The agreement was signed on behalf of NTNC by Member Secretary Dr. Chiranjibi Prasad Pokheral, while Hemant Mandal, Director of the Department of the Asia and the Pacific Region at the Green Climate Fund Secretariat, signed on behalf of the GCF. The signing ceremony was witnessed by Dr. Manish Raj Pandey, Head of the Department of Climate Change, and Lina Chalise, Senior Climate Change Officer. The funding proposal had received formal approval from the GCF Board a day earlier.
The project represents NTNC's first climate initiative financed through the GCF's Direct Access modality, marking an important step toward strengthening Nepal's ability to directly access international climate finance while promoting nationally driven and community-based climate solutions.
With a total investment of USD 9.2 million, including an USD 8.5 million grant from the Green Climate Fund, the four-year project will be implemented in Jajarkot, Jumla, Dolpa, and Dailekh districts of Karnali Province.
The initiative aims to restore 1,000 hectares of degraded forests, improve climate-resilient livelihood opportunities for forest-dependent communities, establish community-based early warning systems, and enhance the capacity of local institutions to better manage increasing climate-related risks.
NTNC will serve as both the Accredited Entity and co-Executing Entity. The project will be implemented in collaboration with the Ministry of Finance, acting as Nepal's National Designated Authority to the Green Climate Fund, and the Ministry of Industry, Tourism, Forest and Environment (MoITFE), Karnali Province, alongside provincial and local governments. The partnership is expected to ensure effective implementation in line with Nepal's federal governance system.
According to NTNC, the project is expected to directly benefit more than 100,000 people while strengthening climate resilience for over 400,000 residents across Karnali Province.
The signing of the Funded Activity Agreement officially marks the commencement of project implementation and reinforces Nepal's commitment to locally led climate action, ecosystem restoration, resilient livelihoods, and sustainable development.
NTNC also acknowledged the support of the Green Climate Fund, the Ministry of Finance, the Ministry of Agriculture, Forests and Environment, the Ministry of Industry, Tourism, Forest and Environment of Karnali Province, and other partner institutions. The organization further expressed appreciation to the UK Foreign, Commonwealth and Development Office (FCDO) for supporting the project's preparation through the RAIN programme, as well as to the local governments and communities of Karnali Province for their continued cooperation.
#EcosphereNews #NTNC #GreenClimateFund #ClimateFinance #ClimateResilience #KarnaliProvince #ForestConservation #CommunityResilience #ClimateAction #SustainableDevelopment #Nepal #LocallyLedClimateAction #EnvironmentalConservation #ClimateAdaptation #GCF
