Rethinking climate finance to work for women in Nepal’s coffee, pashmina value chains

Recommendations for policymakers 

1. Strengthen monitoring of gender and climate dimensions of funding flows: Robust monitoring of gender and climate dimensions is essential for climate finance. Training project officials on classification criteria and mainstreaming these considerations will help direct funds to priority actions. Enhanced data collection and reporting mechanisms will improve impact assessment and guide future funding. 

2. Ensure climate finance is allocated at the local level: Nepal’s National Climate Change Policy mandates that 80 per cent of climate finance be used locally. Raising awareness among local governments and stakeholders about this provision, alongside capacity-building support, will facilitate fund distribution to the most vulnerable communities. Improved monitoring systems will promote compliance and effective use of resources. 

3. Mainstream disability inclusion in climate finance: Women with disabilities face multiple layers of inequality. Allocating climate finance to create livelihood opportunities — such as developing accessible agricultural tools and expanding training programs – can enhance their economic participation. Mainstreaming disability inclusion in climate policies will help direct funding to those most in need. 

4. Support women producer organisations and associations: Women’s associations and producer organisations provide critical access to information, markets, and finance. Strengthening these groups through funding and capacity-building can enhance women’s bargaining power and control over resources. Expanding their reach to remote areas will ensure smallholder women farmers receive the support they need. 

5. Invest in climate-smart and labour-saving technology: Climate-smart innovations can help women increase their productivity and adapt to climate impacts. Investing in labour-saving technologies and ICT can reduce women’s time poverty and improve farm-level performance. Involving local actors in the design and roll-out of technologies will align these tools with the needs of women farmers.

6. Channel climate finance funds through grants coupled with tailored support: Grant financing, paired with training and advisory support, can strengthen the resilience of women farmers to climate risks. Easy-to-understand guidelines and outreach activities will ensure that grants reach those who need them most. Monitoring and evaluating grant programs will enhance their effectiveness. 

7. Bundle climate-related insurance with other services: Bundling agricultural insurance with services such as agro-economic advice and weather information can increase uptake among farmers. Tailoring these bundled services to different crops and geographic contexts will improve relevance to farmers’ needs. Government subsidies can enhance affordability and accessibility. 

8. Invest in women’s skills and participation in exports: Training women entrepreneurs in climate-smart agriculture, value addition, and digital skills will improve their access to export value markets. Direct incentives can encourage women to enter higher value-added segments, ensuring they benefit from export-driven opportunities.

For a deeper dive into these recommendations and more, explore the report “Empowering Women Entrepreneurs in Nepal’s Coffee and Pashmina Value Chains through Climate Finance”, developed by ESCAP in collaboration with the International Trade Centre.