© Helvetas
Nepal

Green economic development in Nepal

© Helvetas

Nepal is one of the countries in the world that is most affected by the impacts of climate change. Droughts, extreme rainfall, floods and landslides, climate extremes like these are already steadily increasing. This is having an increasingly severe impact on agriculture, the country's most important economic sector. Therefore, the country's economic development is highly dependent on its ability to adapt to changing climate conditions and incorporate climate resilient approaches into its agricultural value chains.

  • Project Name
    GRAPE - Implementing Green Resilient Agricultural Productive Ecosystems in Humla
  • Project Phase
    2022 to 2024
  • Funding
    The project is carried out on behalf of the German Society for International Cooperation (GIZ).
  • Thematic focus
    Climate & Disaster Resilience
    Sustainable and Inclusive Economies

Agriculture, as the most weather-dependent industry, is not only Nepal's most important economic sector, but also one of the country's most important employment providers. Currently, about 66% of Nepal's labor force works in agriculture but generates only 27% of gross domestic product, and people working in agriculture in the western part of the country are among the poorest in the population. Therefore, the country's economic development potential is closely linked to its ability to adapt to the impacts of climate change and increase agricultural productivity through green and climate resilient approaches.

The GRAPE project is intended to contribute to the Nepalese government's approach to sustainable development, which aims to address risks to people, the planet, and the economy in an integrated way. ICON Institute GmbH and HELVETAS have jointly developed an approach that brings together international best practices in sustainable rural economic development with local knowledge and experience in agricultural value chains so that climate resilience and green economic growth is promoted.

The main objective of the project is to improve framework conditions for local economic development in selected municipalities and value chains at local and provincial level. Through the adaption of agricultural practices to climate change, income opportunities of marginalized households are strengthened. Socially disadvantaged groups and women will benefit from greater participation in the value chains.

The project adopts a market-oriented and multi-actor approach that includes measures to improve cooperation between the public, private and civil society sectors from the partner municipalities Simikot and Kharpunath. Relevant stakeholders for climate-resilient, agriculture-based local economic development include policy stakeholders, agricultural producers and processors as well as regional knowledge organizations, NGOs and universities that provide technical support to municipalities for agricultural extension services. The achievements and findings of the knowledge exchange and cooperation will support the roll-out of proven climate smart agriculture measures. Further, the capacities of 19 partner municipalities are strengthened to integrate environmentally friendly and climate-resilient agricultural production and processing methods as a basis for sustainable local economic development. This is expected to create favorable conditions for the transformation of the local agricultural economy, improve the performance of agricultural sector actors, and increase resilience to climate-related impacts on the local economy.

 

The project is carried out on behalf of the German Society for International Cooperation (GIZ).

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Our vision is of a just world in which all men and women determine the course of their lives in dignity and security, using environmental resources in a sustainable manner.