LocationsNepal and the Philippines exchange climate finance and carbon solutions
April 9, 2026
Delegation from Nepal visiting the Philippine Department of Finance (DOF).
As the race to meet global climate goals intensifies, two of Asia’s most climate-vulnerable nations are partnering to accelerate climate action. A high-level delegation from Nepal visited Manila for a peer-to-peer exchange with the Philippine government. This direct, country-to-country cooperation allowed government experts to share the specific tools and policies they have built to manage climate funding and carbon markets.
While separated by thousands of miles and vastly different geographies, Nepal and the Philippines face similar climate risks. By sharing their experiences and progress with one another, both delegations identified ways to skip years of trial and error by adopting systems that are already working in a similar regional context.
The exchange was centered on exchanging national innovations:
National climate finance strategies and tracking systems: The Philippine Department of Finance shared the development of the country’s Climate Finance Strategy, which is anchored in transparency, accountability, and innovation. A key focus of this strategy is tracking finance flows from both the public and private sectors to ensure policy decisions are backed by data. Complementing this, the Philippine Climate Change Commission demonstrated its national system for tagging climate-related spending within the budget. This process allows the government to show exactly how public funds meet climate goals, fostering international trust. As a long-time pioneer in climate budget tagging (CBT), the Nepal Ministry of Finance engaged in a technical exchange to compare these systems. The two delegations discussed how to align budget tagging with National Adaptation Plans (NAP) and NDC Implementation Plans, ensuring these tools remain central to Nepal’s overarching Climate Change Financing Framework.
“This exchange exemplifies the strength of South–South cooperation in advancing public financial management for climate action. As Nepal continues to institutionalize climate budget tagging and integrate climate considerations within the Chart of Accounts, our focus is on moving from fragmented tracking toward a more coherent, transparent, and results-oriented system. Learning from the experience of the Department of Finance of the Philippines provides valuable insights to strengthen our frameworks—enabling us to better align public expenditures with national climate priorities while enhancing accountability and impact.” Ms Kamala Kharel, Under Secretary, Ministry of Finance, Nepal.
“Climate budget tagging is not just about tracking expenditures, but about ensuring that public resources are aligned with climate priorities.” Ms. Aimee Evangelista, Climate Change Commission.
Carbon-market readiness and nature-based solutions: The Nepal delegation, represented by the Ministry of Forests and Environment, shared the recent launch of their National Carbon Registry. This digital infrastructure positions Nepal as a regional leader in Article 6 readiness, providing the accurate tracking and transparency required to participate in international carbon markets. In turn, the Philippine Department of Environment and Natural Resources (DENR) presented its own progress on forest and blue carbon initiatives, alongside new project development guidelines and a strategic roadmap for the country’s forest carbon market. By sharing these national innovations, both delegations were able to align their climate ambitions and explore practical ways to turn high-level plans into measurable results.
“This exchange reflects the true spirit of South–South cooperation. As Nepal advances its digital carbon registry under Article 6, our focus is on moving from readiness to implementation—ensuring transparency, environmental integrity, and real impact on the ground. Through such partnerships, we are strengthening our systems to confidently participate in global carbon markets while delivering tangible benefits to our communities.” — Mr. Sandip Kumar Dev, Joint Secretary, Ministry of Energy, Water Resources and Irrigation.
“With this South-South cooperation, we want to move beyond readiness and toward implementation—ensuring that our financial mechanisms directly support the resilient communities we serve.” Atty. Analiza Rebuelta-Teh, Undersecretary, Department of Environment and Natural Resources.
- Accelerating low-carbon energy transition: The Philippine Department of Energy (DOE) showcased its strategy for mobilizing investment through non-fiscal incentives. These include the Green Energy Option Program (GEOP), the Feed-in-Tariff (FIT) scheme, and the Green Energy Auction Program (GEAP), which has already awarded over 10 gigawatts of capacity. In turn, the Nepal Alternative Energy Promotion Center (AEPC) presented its unique governance model, which integrates both public and private actors. Central to this is Nepal’s Sustainable Energy Challenge Fund (SECF), managed through the Central Renewable Energy Fund (CREF). Supported by the Nepal Renewable Energy Programme (NREP), this mechanism provides viability gap funding to attract private investment into solar PV, mini-grids, and electric mobility.
Delegation from Nepal visiting the Philippine Department of Energy (DOE), Philippines.
The exchange concluded with a visit to the Pililla Wind Farm in Rizal. This visit allowed the delegation to observe how fiscal and non-fiscal incentives successfully roll out renewable energy systems. The site visit offered practical lessons for expanding energy access in isolated regions—specifically for the remote mountain communities of Nepal and the off-grid island areas of the Philippines.
“For countries such as the Philippines and Nepal, investing in sustainable and renewable energy is not only a climate imperative—it is also a strategic pathway toward resilience and independence. By learning from each other’s successes and challenges, we can accelerate progress toward our shared climate goals.” Undersecretary Mylene Capongcol, Department of Energy.
“For countries like Nepal, scaling up renewable energy deployment is not only a climate imperative—it is a strategic opportunity to unlock carbon finance and mobilize private capital at scale. By leveraging robust MRV systems, high-integrity carbon markets, and blended finance instruments, we can enhance project bankability while delivering measurable emission reductions. Strengthening regional collaboration and aligning standards will be critical to accelerating investment flows and achieving our shared net-zero and sustainable development objectives.” Executive Director Nawaraj Dhakal, Alternative Energy Promotion Center.
Representatives from the Governments of Philippines and Nepal visiting the Pililla Wind Farm.
The role of the Climate Finance Network
This exchange is an initiative of the flagship UNDP Climate Finance Network (CFN), supported by the UK’s FCDO Climate Action for Resilient Asia (CARA) programme and Sweden through Sida. The CFN acts as a platform connecting 18 countries in the region, recognizing that the $1.5 trillion annual climate funding gap in Asia-Pacific cannot be closed by money alone.
By promoting regional knowledge exchange, the CFN supports governments to build the capacity to access and manage climate funds. This peer-to-peer model ensures that technical expertise is shared within the region, transforming national successes into regional standards. It moves South-South cooperation from an abstract concept into a practical tool for implementing Nationally Determined Contributions (NDCs).
Looking ahead
The conclusion of the mission in Manila marks a transition from dialogue to formal technical cooperation. Through the development of a Joint Cooperation Roadmap, both countries are establishing a framework for continued alignment of carbon pricing, registry interoperability, and renewable energy initiatives. This partnership underscores the key role of regional cooperation as a core pillar of the CFN’s work. By prioritizing peer-to-peer learning, the network fosters a self-sustaining ecosystem where countries on the frontlines of climate change can collectively build the institutional capacity required to meet their national commitments. This model demonstrates that regional cooperation is not just a strategic choice, but a practical mechanism for turning shared climate ambitions into a reality for the entire Asia-Pacific.