Climate Change is seen and felt acutely in the mountains as it dramatically accelerates altitude-dependent temperatures. These changes threaten food and water insecurity, biodiversity, hazards, ecosystems, and cultural heritage. Further, migration, conflicts and economic losses are becoming rampant in these regions. Limiting warming to 1.5°C instead of 2°C is projected to save an estimated 1.5–2.0% of global GDP by 2050 and 3.5% by 2100 from avoided climate impacts.

Mountain economies are highly vulnerable to climate change due to their unique geographical and ecological features. For example, the Himalayas, also known as the “Third Pole”, are warming faster than the lowlands, leading to accelerated glacier retreat, snow cover reduction, and changes in water availability. These changes disrupt key economic sectors such as agriculture, hydropower, drinking water, and tourism. Climate impacts in mountain regions also affect downstream regions by disturbing freshwater availability, climate regulation, biodiversity preservation, agricultural soil fertility, and contributing to sea-level rise.

Mountains are vital water towers and are vulnerable to precipitation shifts and glacier melt, resulting in water shortages, floods and landslides. Erratic weather, rising temperatures, and snow cover loss strain the agriculture, hydropower, drinking water and tourism sectors. The Himalayan region has already faced billions in economic losses alongside substantial non-economic losses. Inadequate resources and infrastructure further worsen the vulnerability of mountain communities.

In this context, Nepal aims to achieve resilient economic growth through climate action as detailed in its National Adaptation Programme of Action  (NAPA, 2021) for a sustainable mountain economy. The draft document of the Nationally Determined Contribution (NDC) 2025 also embeds the goal of resilient economic growth in the mountains. Nepal aims to ensure inclusive and just pathways to economic growth through climate action. Mitigation actions include scaling up renewable electricity, electric transport, clean cooking, waste management, sustainable forests and cleaner industries. Adaptation actions include disaster risk reduction, early warning systems, climate-resilient agriculture, forest conservation, and managing water resources including wetlands and glacial lakes. The environmental and ecosystem services provided by Nepal’s mountains serve as environmental lifelines at the regional level. Given the transboundary nature of climate impacts, there are significant opportunities for international, regional and thematic cooperation. Most importantly, climate action in mountain regions can bring multiplier benefits for regional and global efforts.

Objectives:

1. Advance our understanding of resilient economic growth through climate action to ensure sustainable mountain economies.
2. Highlight the importance of inclusive and just economic growth through climate action in mountain regions and its corollary implications in the region and beyond.
3. Explore nature-based tourism, forest and agriculture entrepreneurship, the economic valuation of ecosystem and biodiversity services as innovative financial resources to sustain the mountain economy.
4. Identify opportunities for international, regional and thematic cooperation for climate action and negotiations.