This law was approved following the Shrestha v. Office of the Prime Minister et al. case mandating Nepal to take legislative action to be able to meet its commitments to the Paris Agreement.

Chapter 4 set provisions related to climate change. Article 23 mandates the relevant ministry to periodically provide information to local communities about the impacts of climate change. Article 24 charges authorities at national and local levels to adopt adaptation plans. Article 25 mandates the state to identify mitigation-prone sectors and set national targets. Following articles grant the state increased powers with regard to risk management (art. 26), adoption of technological standards (art. 27), and ability to participate in carbon trading (art. 28).

Article 31 creates the Environment Protection Fund responsible for the protection of environment, prevention and control of pollution, management of climate change and protection of the national heritages.