Nepal Advances ‘Just Transition’ Strategy to Link Climate Action with Jobs and Social Protection

Nepal is taking a major step toward ensuring that climate action supports both environmental sustainability and economic inclusion by advancing a national Just Transition Strategy and Action Plan linked to the country’s updated climate commitments under Nationally Determined Contribution (NDC 3.0).

The initiative aims to ensure that Nepal’s shift toward a greener and more climate-resilient economy also protects workers, strengthens businesses, creates decent jobs, and supports vulnerable communities affected by economic and environmental change.

The process has brought together a broad coalition of stakeholders, including the Government of Nepal, workers’ and employers’ organizations, industry representatives, climate experts, civil society groups, development partners, and the International Labour Organization (ILO).

At the heart of the discussions is a critical question: how can Nepal tackle climate change while also promoting social justice, employment security, enterprise growth, and economic resilience?

Officials say the Just Transition approach seeks to ensure that climate policies do not leave workers, small businesses, or vulnerable populations behind as the economy adapts to low-carbon development and environmental sustainability goals.

The initiative is being supported by the findings of Nepal’s Green Employment Diagnostics Report, developed with support from the ILO. The report identifies sectors where green jobs can expand, where workers may need new skills and retraining, and where targeted policy interventions are required to manage the transition effectively.

Speaking at the workshop on the Green Employment Diagnostics Report and the National Just Transition Strategy linked to NDC 3.0, ILO Country Director for Nepal Numan Özcan stressed the importance of connecting climate ambition with inclusive economic development.

“Through this process, Nepal has an opportunity to connect its climate goals with employment creation, skills development, social protection, and inclusive growth,” Özcan said.

Nepal’s updated climate commitments under NDC 3.0 already recognise the need for dedicated institutional arrangements to manage a Just Transition process.

The framework proposes leadership from the Ministry of Youth, Labour and Employment (MoYLE) alongside participation from trade unions, employers’ associations, business groups, and climate specialists.

Officials say this structure creates a strong foundation for social dialogue and coordinated national action.

A Just Transition framework is designed to help countries manage the economic and social consequences of climate action while ensuring workers and communities benefit from new opportunities created through green development.

In Nepal’s case, the strategy is expected to focus on several key priorities, including:

• Green job creation

• Skills development and workforce retraining

• Expansion of social protection systems

• Occupational safety and health

• Support for sustainable enterprises, especially MSMEs

• Strengthening social dialogue and worker participation

Particular emphasis is being placed on ensuring that vulnerable groups — including women, youth, informal workers, and small enterprises — are able to benefit from the opportunities emerging through climate-related investments and economic transformation.

The initiative also recognises that many sectors may face disruption as environmental regulations, clean technologies, and climate adaptation measures reshape labour markets.

By preparing workers early and strengthening social protection systems, policymakers hope to reduce risks associated with economic transition.

The national dialogue process, jointly organised with the Ministry of Youth, Labour and Employment, has already identified priority areas for practical action and institutional cooperation.

Participants have worked on developing a phased action plan outlining responsibilities, timelines, and opportunities for collaboration between government agencies, employers, workers’ groups, and development partners.

Rather than functioning as a one-time consultation, the process is intended to establish a long-term national framework linking climate policy with labour market development and social inclusion.

The initiative aligns closely with the ILO Guidelines for a Just Transition towards environmentally sustainable economies and societies for all and broader international efforts under the Global Accelerator on Jobs and Social Protection for Just Transitions.

The workshop brought together representatives from government ministries, trade unions, employer organisations, academia, civil society, development agencies, and United Nations bodies to ensure the process remains inclusive and participatory.

Experts say Nepal’s approach could serve as an important model for other developing countries seeking to balance climate commitments with economic fairness and workforce protection.

As climate change increasingly affects agriculture, infrastructure, tourism, water resources, and livelihoods across South Asia, policymakers are under growing pressure to ensure environmental policies also address social and economic realities.

Nepal, one of the countries most vulnerable to climate-related disasters despite contributing minimally to global greenhouse gas emissions, faces significant risks from flooding, glacial melting, landslides, and changing weather patterns.

Officials believe linking climate action with employment creation and social justice could help communities become more resilient while also supporting sustainable economic growth.

The initiative ultimately aims to ensure that Nepal’s transition to a greener economy is not only environmentally sustainable but also fair, inclusive, and capable of creating long-term opportunities for workers, businesses, and communities across the country.