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.