Strengthening Municipal Financing and Localizing Climate Actions at the Local Level

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Lamahi, Dang | 31 July – 1 August 2025

Lamahi Municipality, in collaboration with the United Nations Human Settlements Programme (UN-Habitat), organized a two-day workshop on “Strengthening Municipal Financing and Localization of Integrated Climate Actions.” The event was conducted under the United Nations Joint SDG Fund project “Accelerating the Localization of Integrated Climate Actions in Nepal,” which is jointly implemented by the World Food Programme (WFP), UNDP Nepal, and UN-Habitat Nepal.

The workshop convened the Mayor, Deputy Mayor, elected representatives, section heads, and council members of Lamahi Municipality, along with representatives from neighboring Rapti, Gadhwa, and Rajpur Rural Municipalities. Development partners, including PLGSP Lumbini Province, were also present, ensuring a diverse and multi-level exchange of perspectives.


The first day of the workshop focused on strengthening municipal financing and building fiscal sustainability. Dr. Gopi Khanal, municipal finance expert and former Secretary of the Government of Nepal, shared strategies to enhance local governments’ own-source revenue. Around 50 Participants engaged in exercises to map current revenue streams and estimate collection potential, which fostered discussion on how to broaden the municipal revenue base and strengthen Lamahi’s financial capacity for service delivery and development.


The second day turned attention to climate financing and the localization of integrated climate actions. Ms. Anu Adhikari from the United Nations Capital Development Fund (UNCDF) Nepal introduced local climate financing opportunities, including intergovernmental fiscal transfers and innovative mechanisms being advanced through the LoCAL 2030 programme. Using the UN-Habitat CityRAP tool, participants identified and prioritized climate challenges facing Lamahi. They worked collectively to develop initial climate action plans around four priority areas: climate-smart agriculture and food security; resilient infrastructure and disaster risk reduction; health, drinking water, and sanitation; and gender equality, disability, social inclusion, and good governance.


This workshop represents an important step toward enhancing local fiscal capacity while accelerating climate action at the municipal level. It not only validated priority issues within Lamahi but also promoted cross-learning with neighboring municipalities. By linking municipal financing reforms with localized climate action planning, Lamahi Municipality is laying the foundation for more resilient, climate-smart, and inclusive local governance in Nepal.