ADB, World Bank, and SDC Partner to Boost Climate Resilience in Nepal

Nepal’s hydropower sector, a key driver of economic development and energy security, is especially vulnerable to extreme weather and glacial changes.

 

In a major step toward climate-resilient development, the Asian Development Bank (ADB), the World Bank Group’s International Development Association (IDA), and the Swiss Agency for Development and Cooperation (SDC) have signed a three-year Memorandum of Understanding (MoU) to strengthen Nepal’s disaster risk management and climate-resilient infrastructure. The partnership aims to enhance coordination, mobilize resources, and co-develop innovative solutions to tackle Nepal’s growing climate vulnerabilities.

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Facing the Frontlines of Climate Change

Nepal is among the world’s most climate-vulnerable countries, facing increasing threats from floods, droughts, landslides, and the melting of glaciers—events that pose a serious risk to communities, infrastructure, and the economy. In recent years, these climate-induced disasters have displaced thousands, destroyed public infrastructure, and disrupted livelihoods, particularly in remote and mountainous regions.

Nepal’s hydropower sector, a key driver of economic development and energy security, is especially vulnerable to extreme weather and glacial changes. Agriculture, water resources, and ecosystems are also at risk, making resilient infrastructure and robust risk mitigation strategies a national priority.

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A Shared Vision for Resilience

The MoU outlines a shared vision between ADB, IDA, and SDC to support the Government of Nepal in building resilient infrastructure and reducing disaster risks, particularly in climate-sensitive regions like the Dudh Koshi River Basin in Koshi Province.

“Investing in climate-resilient infrastructure and disaster risk management has never been more critical,” said Arnaud Cauchois, ADB Country Director for Nepal. “These investments will strengthen communities, safeguard essential assets, create jobs, and foster long-term economic growth.”

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Strategic Goals of the Partnership

The collaboration focuses on key areas that are essential to improving Nepal’s climate resilience:

• Multi-hazard risk assessment models to understand and map vulnerabilities across different disaster types

• Early warning systems to better prepare for and respond to emergencies

• Climate risk financing and improved access to financial tools for climate-resilient infrastructure

• Capacity building and institutional strengthening to ensure local and national actors can manage long-term risk

• Knowledge sharing, with emphasis on inclusive, evidence-based policy and planning

• Technical coordination between international development agencies and Nepali institutions to avoid duplication and maximize efficiency

“As one of the world’s most vulnerable countries to climate shocks and natural disasters, building resilience is an imperative for Nepal,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka. “Our collaboration is designed to protect communities, investments, and jobs, while aligning closely with Nepal’s development agenda.”

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Swiss Expertise and Commitment

Switzerland brings its long-standing experience in disaster risk reduction and sustainable mountain development to the table. Through SDC, a team of Swiss experts from academia and the private sector will work closely with Nepali institutions, ADB, and IDA to co-develop context-specific, science-based solutions.

“Switzerland is strongly committed to fostering resilience and sustainable development in Nepal,” said Ambassador Arno Wicki, SDC Assistant Director General. “This partnership reflects our belief in inclusive, knowledge-driven collaboration for a safer, more sustainable future.”

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Supporting Nepal’s Green Development Pathway

The MoU highlights a shared commitment to Nepal’s green and inclusive development goals, reinforcing the country’s capacity to achieve both climate adaptation and disaster preparedness while also contributing to the global climate agenda, including the Paris Agreement and Sendai Framework for Disaster Risk Reduction.

The cooperation also supports Nepal’s National Adaptation Plan (NAP) and Nationally Determined Contributions (NDCs), with an emphasis on ensuring that infrastructure investments today can withstand the climate challenges of tomorrow.

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Looking Ahead

Through this three-year agreement, the ADB, IDA, and SDC are not only improving project coordination and impact but also laying the foundation for long-term resilience and sustainable development in Nepal.

By leveraging their combined expertise, technical capabilities, and funding mechanisms, these agencies aim to create a model for multi-partner collaboration that can be replicated across other vulnerable regions facing similar climate challenges.

“We are joining forces to create lasting, climate-smart development outcomes for Nepal,” said the partners in a joint statement. “Together, we can help build a future that is safer, greener, and more resilient for all.”