In the Himalayan region, glacier retreat is no longer a distant scientific observation. Rivers shift their courses. Hydropower output fluctuates. Roads and bridges require continuous reinforcement. Changing agricultural patterns are widespread, often threatening agricultural productivity.

These developments begin as mere environmental phenomena, but they end with serious fiscal consequences. For mountain economies such as Nepal, and for many other climate-exposed jurisdictions around the world, climate change is already influencing public expenditure patterns, infrastructure planning, revenue stability, and long-term development priorities. What was once treated primarily as an environmental policy issue is increasingly taking centre stage as a key public financial management (PFM) concern.

Thus, climate risk has undeniably become fiscal risk.