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Inclusive climate governance
Private sector must be recognised as a stakeholder and strategic partner in achieving net-zero.
Mukesh Dangol & Shreejana Bhusal
As the Himalayas melt, upsurging the frequency of floods downstream, Nepal finds itself on the frontlines of the global climate crisis, despite contributing merely 0.03 percent to the cause. Yet the country is stepping up as a climate leader, proving that moral leadership matters as much as material capacity. With the submission of its third Nationally Determined Contribution (NDC 3.0) under the Paris Agreement, Nepal has pledged to reach net-zero carbon emissions by 2045, five years ahead of the global target. While this commitment is bold and commendable, ambition alone is not sufficient. Translating climate goals into reality requires something deeper, like inclusive governance.
The impacts of climate change know no boundaries; they are already being felt and growing across regions, countries, sectors and social settings. With a high degree of vulnerability and a limited coping capability, Nepal is experiencing rising temperatures in the Himalayas and erratic rainfall disrupting agriculture in the Tarai, for which Nepal is undoubtedly not responsible.
Since its first report, the Intergovernmental Panel on Climate Change (IPCC) has long emphasised the need for multi-level cooperation, from governments to local communities. Unlike previous commitments based on top-down models, the 2015 Paris Agreement focused on inclusivity, which calls for collaboration among governments, civil society, private companies and stakeholders. NDCs resulting from this shift must be designed through consultation with various stakeholders, including civil society, indigenous communities, youth, women, private sector actors and academics.
Nepal’s NDC 3.0 builds on earlier commitments and achievements, which set specific sectoral targets for energy, transport, waste and land use. It particularly recognises the roles of non-state actors, echoing the Paris Agreement’s call for inclusive participation. This is a promising start.
Inclusive governance goes beyond consultation and should ensure meaningful participation, representation and equity. Unlike state-centric policies, it involves multi-level and multi-actor networks, ensuring fair distribution of climate burdens and benefits. Were community voices genuinely heard during the formulation of the NDC? Were their ideas reflected in its final form? Are they empowered to participate in implementation and monitoring?
True inclusion means involving all stakeholders, not just during planning, but throughout the policy cycle. Only then can people-centric, equity-driven and adaptive decision-making take shape, resulting in legitimacy, resilience and justice in climate action.
One of the driving forces in implementing climate actions is the private sector. Energy and transport—the two prominent emitters—are largely driven by private actors. The industrial sector, hydropower projects, solar energy and urban and rural mobility depend on private investment and innovation. Achieving net-zero without their full engagement is not just unlikely but impossible. The private sector must be seen not merely as a stakeholder but as a strategic partner. Public-private partnerships, incentives for investment in clean energy technologies and enabling regulatory frameworks are essential to align private interests with national goals.
The real stewards of sustainability and climate resilience are local communities and indigenous people. For instance, the 16th national plan reports that approximately 23,000 community forest user groups manage more than 2.2 million hectares of forest land. Their grassroots stewardship has helped increase forest cover to nearly 45 percent while contributing to climate mitigation and adaptation efforts.
Likewise, indigenous knowledge systems developed and transferred through generations offer time-tested strategies for climate adaptation, especially when coupled with scientific research and modern technology. Inclusion means inviting these groups to the decision-making table, not just recognising their value from afar. Their voices must be amplified by creating mechanisms through which their experience and insight can shape national policy.
The NDC 3.0 acknowledges the role of these actors in areas such as renewable energy and the clean industry. Now it is essential to ask whether these groups are engaged as partners. Or, are they being given a voice in decision-making and a role in monitoring progress? Inclusion means co-creation—not just top-down directives; these actors must be part of the process to bring real outcomes.
For climate governance to be effective, the availability of accurate and timely data is a prerequisite. Many policy decisions are based on outdated or fragmented information, undermining effectiveness and reducing trust. In today’s world, access to real-time information, satellite images and university-led research can significantly improve climate planning. Involving academic institutions in data collection, modelling and technology development can lead to more targeted, evidence-based policies. But again, this requires inclusive collaboration between government, academia and international partners.
Inclusion must also reach those who are most vulnerable to climate impacts. While the NDC mentions vulnerable groups, including women, indigenous peoples, youth and people with disabilities, they must not be seen merely as victims of climate change. They are agents of change, and their ideas, energy and leadership are critical to building a future that works for all. They must be given meaningful roles through formal representation in governance, access to funding and leadership roles in local projects.
Transparent and accountable climate governance is the need of the hour. Citizens deserve to know who is responsible for what actions, how progress is tracked, and how they can stay informed and participate in the process. We must strengthen our climate data systems, create communication channels and empower the public to engage with and monitor the process.
The Paris Agreement calls on each country to act according to its capacity and to do so in a fair, inclusive and transparent manner. Setting targets through NDC 3.0 is a step towards saving our planet. Building inclusive systems to achieve them needs partnerships across government, business, science and society. It means recognising that while climate change affects us all, those most affected must have the loudest voices.
Nepal has shown leadership in ambition. Now, it must show leadership in governance. Climate action is not just about cutting emissions. It is about creating a future that is just, inclusive and shared by all.
Dangol is a joint secretary at the Tourism Ministry, and Bhusal is a government officer and Phd candidate at the University of Southern Queensland, Australia.