Nepal’s power sector predominantly relies on hydropower generation. Hydropower is vulnerable to climate change and natural disasters caused by climate change. An understanding of the future impact of climate change on hydropower assets and their performance is important for the successful implementation of hydropower projects. Climate risk and adaptation (CRA) assessment is required for Dudhkoshi hydroelectric project (DKSHEP) to ensure the project addresses climate change mitigation and adaptation in accordance with ADB’s requirements. Based on an initial climate risk screening assessment of the project, the project is likely to be affected by future changes in climate conditions and their impacts including temperature increase, precipitation increase, flood, glacial lake outburst flood (GLOF), and landslide risk.

The Asian Development Bank (ADB) identified the need for a detailed Climate Risk and Adaptation (CRA) assessment for the DKSHEP to understand the risk posed by the changing climate on hydropower and the environment. Therefore, the objective of this Climate Risk and Adaptation Assessment (CRA) is to assess the vulnerability of the project components to future climate change and recommend adaptation options for climate-proofing of the design. Therefore, this CRA covers both type 2 adaptation, related to system change and resilience building, as well as type 1 adaptation related to climate-proofing This CRA assesses historic trends in relevant climate-related variables and analyses climate projections for the DKSHEP. Based on these projections, an assessment of the current and future climate risks and vulnerabilities relating to the proposed project activities will be outlined. Finally, recommendations will be presented for climate adaptation measures.