This study aims to mainstream environmental protection, climate change mitigation, and disaster risk management in the Asian Development Bank's country partnership strategy for Nepal in 2020–2024. It reviews the country's environmental situation, institutional and legislative provisions, status toward achieving the Sustainable Development Goals, and key challenges in creating environmentally sustainable, climate-friendly, disaster-resilient, and socially inclusive economic growth. Based on extensive stakeholder consultations and cause-and-effect analysis, the study recommends updating national and subnational environment policies and ensuring that national, provincial, and local levels of the new federal system are harmonized. Institutional strengthening and capacity building should also be conducted to improve environmental governance.

The 2020 edition of the WWDR, titled Water and Climate Change illustrates the critical linkages between water and climate change in the context of the broader sustainable development agenda. Supported by examples from across the world, it describes both the challenges and opportunities created by climate change, and provides potential responses – in terms of adaptation, mitigation and improved resilience – that can be undertaken by enhancing water resources management, attenuating water-related risks, and improving access to water supply and sanitation services for all in a sustainable manner. It addresses the interrelations between water, people, environment and economics in a changing climate, demonstrating how climate change can be a positive catalyst for improved water management, governance and financing to achieve a sustainable and prosperous world for all. The report provides a fact-based, water-focused contribution to the knowledge base on climate change. It is complementary to existing scientific assessments and designed to support international political frameworks, with the goals of helping the water community tackle the challenges of climate change, and informing the climate change community about the opportunities that improved water management offers in terms of adaptation and mitigation.

This report identifies potential reforms that ADB could support to reduce governance vulnerabilities as Nepal transitions to a new federal system of government. With the adoption of its new constitution on 20 September 2015, Nepal became a federal democratic republic. Since then, the country's transition from a unitary system of government to the new federal system has been ongoing and remains a challenging process. The report examines the evolving institutional arrangements, challenges, and governance risks for the sectors in which ADB operates. It also identifies potential reform measures that ADB could support to help address these governance risks. The report aims to contribute to the preparation of ADB's 2020-2024 country partnership strategy for Nepal.

Digital transformation is revolutionising economies and societies with rapid technological advances in AI, robotics and the Internet of Things. Low and middle-income countries are struggling to gain a foothold in the global digital economy in the face of limited digital capacity, skills, and fragmented global and regional rules.