NP07 Building Climate Resilience and Reintegrating Economically Displaced Workers Through Climate Smart Agriculture in Terai Flood Plains Nepal
Location
Period
Jun 2022 - Dec 2025
Funding (USD)
5,990,000
Project Code
NP07
Theme
03 Climate-Smart Agriculture
Status
Active
Project Summary
The KOICA-funded Climate Smart Agriculture Project is designed to support widespread adoption of Climate-Smart Agriculture (CSA) to reduce vulnerability and improve food and job security, especially for women, youth, and returned migrant workers. Specifically, this project improves emergency management in the agriculture sector to protect lives and livelihoods; strengthens resilient agriculture planning and implementation; builds and finances climate-smart agriculture businesses for job creation and long-term resilient green growth.
Specifically, this project includes setting up and operationalizing a Terai Agribusiness and Enterprise Challenge Fund (TAECF) that provides grants to directly incubate, accelerate, and champion the green agribusinesses and ensure green job creation and growth in the agriculture sector.
Project Goal and Objectives
– Improving climate-induced emergency management in the agriculture sector to protect lives and livelihoods
– Strengthening resilient agriculture planning and implementation at the provincial and local level
– Building and financing climate-smart agriculture businesses for job creation and long-term resilient green growth
This project expects to benefit 6,360 people, including local government officers and farmers, while creating 1,100 green job opportunities. Indirect beneficiaries will be 413,358 residents in the participating municipalities.
Context and Background
In Nepal, agriculture is the second-biggest sector economically after services, and it is the largest source of employment. Nepal’s lowland flood plains (Terai) contain most of the country’s agriculture and agricultural workers. Climate-driven emergencies, particularly floods and droughts, regularly damage the sector and undermine livelihoods.
This vulnerability has been exacerbated by the large-scale return of economically displaced migrant Nepali workers due to the COVID-19 pandemic. The agriculture sector requires urgent support to render it more climate resilient and to reintegrate workers.
Project Outcomes
Achieved widespread adoption of climate-smart agriculture in 10 local governments, reducing vulnerability and improving economic security for 6,300 farmers and workers, creating 1,100 new green jobs for women, returned migrant workers and youths, and unlocking green investment of USD 36 million through the first Green Bond of Nepal.
Currently, 10 local governments are prepared to respond to climate emergencies, particularly flood and drought, protecting the livelihoods of community members and creating green jobs for women, returned migrant workers, and youths.
Local farming communities also adopt CSA, spurring investment of USD 1.56 million into 109 agribusinesses, creating 750 new jobs for women, returned migrant workers, and youth, and leveraging an additional USD 36 million in scale-up financing.
– Local Emergency Operation Centers established in 10 Project Municipalities to address climate emergencies in agriculture.
– CSA Plans developed and endorsed in 10 project municipalities, mainstreaming CSA planning and localization.
– 3,009 farmers trained in different aspects of climate-smart agriculture and adopted CSA technologies in their farms.
– 109micro and smallagribusinesses and agriculture cooperatives supported with grant money under the Terai Agribusiness and Enterprise Challenge Fund , benefiting more than 10,000 farmers and creating 731 green jobs.
– 288 irrigation schemes increased year-round irrigation facilities to 625 Ha of land, benefitting 1737 farming households.
– Nepal Infrastructure Bank Limited (NIFRA) issued Nepal’s first public green bond, worth NPR 5 billion (approx. USD 36 million), with technical support from the Global Green Growth Institute (GGGI) under the CSA project.