Women in Nepal, who are the backbone of the agriculture sector, are faced with an escalating challenge: the climate crisis. 

For rural farmers like Gnaga Maya Adhikari, the impacts of climate change are already a harsh reality: “Over the past 5 years, my coffee production has been on the decline primarily due to the harsh cold experienced during the winter months. This extreme cold was an unfamiliar event for me in Lamjung and resulted in the unfortunate death of numerous coffee plants due to frost.”

Nepal ranks as the fourth most vulnerable country globally to climate change, affecting 80 per cent of the population. While the climate crisis spares no one, its disproportionate impact on women intensifies existing gender inequalities. Agriculture, which employs 75 per cent of Nepal’s female labour force, is particularly vulnerable to changing weather patterns. Women farmers bear the brunt of these challenges due to limited access to resources, information, and technology. 

Their economic vulnerability is compounded by societal norms that confine women to subordinate roles, and the gender wage gap - with women earning 25 per cent less than men. These women face a higher burden of unpaid work, both in their homes and family farms. In Nepal, six million women are unpaid family workers, primarily in agriculture, compared to 2.8 million men. Often, women work on family farms owned and managed by their husbands or male relatives, receiving little to no financial benefit for their contributions, while also shouldering household responsibilities.

Coffee and pashmina are vital sources of income for rural communities in the Himalayan region, with women farmers making up 45 per cent and 50 per cent of the labour force respectively. In the coffee value chain, women are primarily engaged in fieldwork, harvesting, and processing—stages highly susceptible to climatic conditions. In the pashmina value chain, women are involved in goat rearing, wool collection, and weaving. However, the climate crisis threatens the health and productivity of Chyangra goats, reducing wool yields and causing economic instability for women farmers. 

Climate finance - encompassing local, national, and transnational financial flows aimed at addressing climate change - can be a game-changer for these women. It has the potential to build resilience and ensure sustainable livelihoods. Yet, current climate finance allocations often fail to reach women and other vulnerable groups. To make a meaningful impact climate finance must be gender-smart and recognize the unique needs of women.  

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 organizations and associations: Women’s associations and producer organizations 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.