This report investigates key climate change hazards affecting Nepali households and livelihoods: river flooding, heat exposure, drought, landslides, and air pollution. It analyses the distributional impacts of these hazards by combining spatial distributions of exposure with measures of socio-economic vulnerability and coping ability.
While landslides are more likely to occur in the northern mountainous areas of Nepal, the southern parts of Nepal are at higher exposure to river flooding, heat, and drought hazards. Coping ability is highest in the southern lowlands (Terai) and urban settlements, which leaves northern, mountainous areas more vulnerable, despite being less affected. Overall, the northern parts of the country will require concerted support to withstand shocks, and in the south, investments in agricultural livelihoods will be needed to support adaptation to climate risk. Proactive, spatially targeted investments are needed by all levels of government to mitigate the welfare impacts of these diverse climate change hazards. National investments in human capital are required to transform Nepali livelihoods in line with a green transition.