Planning and budgeting for a climate resilient agriculture: Nepal Experience

1. Government of Nepal Ministry of Agriculture & Livestock Development Planning and budgeting for a climate resilient agriculture: Nepal Experience Regional Dialogue on the role of Climate Proofing Growth and Development to achieve the SDGs. Bangkok, 3-6 March, 2019 Lal Kumar Shrestha Chief, Budget & Program Section Ministry of Agriculture & Livestock Development, Nepal

2. Government of Nepal Ministry of Agriculture & Livestock Development Outline • Background (Problem statement) • Challenges faced • Solutions /some improvements • Key Message • Key Learning

3. Government of Nepal Ministry of Agriculture & Livestock Development Background • Agriculture in Nepal • Population: 60.4%, GDP: 27.6% diverse geographical area, commodity • Climate vulnerability • Nepal is fourth most vulnerable country to climate change impacts. • Agriculture is highly sensitive to extreme events such as floods and droughts, long-term changes to rainfall and temperature leading to reduction in yields and shifts in cropping patterns. • Small farmers • With 26.69% having less than 0.2 ha and 47.31% with less than 0.5 ha.Large numbers of these farmers are already poor and extremely vulnerable to climate change.

4. Government of Nepal Ministry of Agriculture & Livestock Development Background • Impacts on agriculture • pronounced among women and smallholders, who have poor access to natural resources and public services, and limited livelihood options. • are highly exposed and sensitive to climatic threats, such as droughts, floods, soil erosion, landslides, pest outbreaks, and heat and cold waves.

5. Government of Nepal Ministry of Agriculture & Livestock Development Challenges faced • Policy address & Institutionalization • Planning & budgeting, monitoring reporting in the federal context (three tiers of government) • Strengthening Capacity gaps: information & knowledge • Technology development and serve

6. Government of Nepal Ministry of Agriculture & Livestock Development Climate initiatives • Climate smart village • 170 (SDGs gold 13), GAP, OA, Adaptation Plan in local level, cattle shed improvement massively, Agro advisory services, crop and Livestock insurance • Climate budget tracking • Climate budget coding at program level • CCFF developed, IMCCC formed • Improved method • Addressing specific needs of agriculture sectors • Improving accuracy of climate budget • Inform policy makers regarding the climate related budget & expenditure • Bring about uniformity in tracking climate related budget & expenditure in agriculture at federal, province and local levels.

7. Government of Nepal Ministry of Agriculture & Livestock Development Climate initiatives • 1st Step • Development of typologies to improve identification of climate activities in agriculture sector. • 7 typologies include • sustainable land management, • sustainable water management, • food security and promotion of agriculture biodiversity, • livestock development, • Disaster preparedness for extreme events, and so on • 2nd step • Identification of climate objectives : adaptation, mitigation or both of each typology

8. Government of Nepal Ministry of Agriculture & Livestock Development Climate initiatives • 3rd step • identification of agriculture programmes being implemented • 4th step • identification of activities under each programme • 5th step • assessing level of climate relevancy based on 3 key questions: • Which CC vulnerability is being addressed, • Who are the beneficiaries including gender, • How does the activity support national commitments (NDC, SDG).

9. Government of Nepal Ministry of Agriculture & Livestock Development Climate initiatives • Guidelines • New guidelines (2019-20) have been developed to help planners. • LMBIS database has incorporated provision for activity level coding • Vulnerability assessment and monitoring and reporting • Tools for vulnerability assessment and monitoring and reporting of climate actions has been developed as part of formulating NAP-Ag. • Message • With the new tools of vulnerability assessment and methods of budget coding at activity level we hope to better target climate actions with increased climate budget accuracy, which eventually is expected to help us assess financing gap to plan for effective climate investment.

10. Government of Nepal Ministry of Agriculture & Livestock Development Key learning • On the CC impacts • Microclimates in the mountains vary within a short distance. • Climate change has already impacted timing of planting and ripening period affecting yields of major crops. • New diseases and insects/pests have been seen affecting both crops and animals. • Floods and landslides as well as extended recurrent droughts have been damaging the crop yield forcing displacement of farmers from agriculture.

11. Government of Nepal Ministry of Agriculture & Livestock Development Key learning • On roadblocks to increase resilience • Unavailability of the information about degree and nature of climate impacts • Low level of understanding of the capacity of farmers to adapt to the impacts. • Diverse geography with varying degree and nature of climate impacts requiring diverse responses demand increased capacity • Required level of finances.

12. Government of Nepal Ministry of Agriculture & Livestock Development Key learning • On tools, methods and frameworks being used. • Budget tagging before plans are made helps improve climate responses rather than after plans have been formulated. • Mainstream climate change in the planning and budgeting requires an increased understanding of climate impacts. It is difficult to build such understanding in rapidly changing scenario of climate impacts especially in mountainous regions. • Recognition of climate threats as hurdle achieving the sectoral objectives ( for example by ADS in Nepal) help address climate change in the long-term. • Early warning systems and insurances against losses are extremely important in improving resilience of farmers.

13. Government of Nepal Ministry of Agriculture & Livestock Development Thank you for your kind attention