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Nepal is determined to address the impacts and opportunities of climate change, and has taken the remarkable step of introducing a climate change budget code to prioritise and track climate-sensitive initiatives and expenditure. The government allocated 10.3 per cent of its budget to climate change in 2013/14, while total adaptation-friendly commitment from international sources was US$236.62 million for 2009–2012. Although the wide range of intermediaries, instruments and planning systems used by Nepal have been effective to date, increasing synergy between them would help avoid fragmentation and duplication in resource allocation and disbursement. Establishing a climate change fund to pool and disburse resources and building local capacity would also help the
government reach its target of investing 80 per cent of climate-sensitive budget at a local level.