The 2015 Constitution of Nepal envisages Local Governments (LGs) as pivotal actors in climate action and local development. However, this potential remains underutilized. Persistent institutional constraints, including ambiguous roles, limited human resource (knowledge and technical expertise) capacities, and inadequate financing, continue to hinder LGs from moving beyond planning to effective implementation.Even where legal frameworks have devolved authority for climate action, structural gaps remain, thereby undermining LGs ability to deliver meaningful outcomes. Bridging this implementation gap is a pressing policy challenge. Strengthening the institutional capacity of the LGs is increasingly important as Nepal advances its National Adaptation Plan (2021–2050) and prepares to implement its Third Nationally Determined Contribution (NDC 3.0), both of which emphasize locally led adaptation and resilience-building.

In this Policy Brief, the term ‘institutional capacity’ refers to the human resources (knowledge and technical expertise) and financial capacities required to drive climate action. The analysis draws on existing literature on decentralized climate governance, review of national and local-level policies and plans, and the authors’ long-standing research and engagement with Nepal’s local climate governance. It examines constraints faced by LGs across three dimensions: clarity of roles, human resources (knowledge, expertise, and technical capacities), and access to financial resources, while identifying emerging opportunities to strengthen locally led climate action. The brief concludes with recommendations aimed at improving policy coherence and institutionalizing long-term investments in local government capacity, including stable financing, skilled personnel, and sustained institutional support.

Full policy brief can be found here: https://ifsd.com.au/wp-content/uploads/2026/02/PB_Strengthening-Local-Governments-for-Climate-Action-in-Nepal.pdf