IOSR Journal of Economics and Finance (IOSR-JEF) e-ISSN: 2321-5933, p-ISSN: 2321-5925. Volume 12, Issue 1 Ser. VII (Jan. – Feb. 2021), PP 01-14 www.iosrjournals.org DOI: 10.9790/5933-1201070114 www.iosrjournals.org 1 | Page Climate Change Adaptation Strategies and Capabilities of Small- scale Farmers in Nepal: Signifiers from Manohara River Basin Bibhuti Raj Basnet 1 (MPPG, MEcon, LL.B, BBA); Gyan Mani Adhikari 2 1 Freelance researcher interested in public policy, economics, laws, and business administration 2 Director of MBA, Central Department of Management, Tribhuvan University, Nepal Abstract Background: Climate change is emerging as one of the most complex challenges of this century, and dealing with this change is particularly daunting to developing societies especially because of their limited capabilities to deal with the effects of hazardous events. As climate change takes place and the effects continue to spread and become more intense, a focus on adaptation is an important consideration. So this research attempted to seek evidence of adaptation undertaken as a result of climate change impacts and analyze the factors affecting capability and strategies adapted by small-scale farmers in Nepal. Methods: A descriptive cum analytical (correlational) research design was employed following quantitative approach where the reliability and validity of the research instrument was tested with Cronbach’s Alpha (α) Test, and descriptive statistics - Kendall Rank Correlation and Chi Square Test were used while analyzing the data and testing the hypotheses; and the inferences were made at 5% and 1% level of significance. Results: The study argued that climate change adaptation is intervened by strategies and capabilities of farmers which depends upon their socio-economic condition and resulted with statistically significant association between the variables. The findings indicated that the small scale farmers are experiencing varied level of changes in climate and are realizing the dire need for further climate change adaptation strategies despite up- taking of various strategies, knowingly or unknowingly, to minimize its impacts. Conclusion: It concluded that the farmers are prone to suffer from capability losses due to climate change, and implied that some influencing factors should be taken into prime consideration t o enhance farmers’ capabilities to better cope with climate change effects; improving their adaptation measures for maintaining a flourishing relationship with the changing climate. Keywords: Climate Change Adaptation, Strategies, Capabilities, Small Scale Farmers, Nepal --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 01-02-2021 Date of Acceptance: 16-02-2020 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction Studies certainly agree that climate changes are taking place, and the changed climate is affecting, in one or the other way, the economic activities, human welfare and livelihoods of the people all over the world. Climate change simply refers to a persistent change in the mean and variability of climate parameters such as temperature, rainfall, humidity, and soil moisture particularly due to change in composition of the atmospheric gases but complexly striking with ever escalating impacts. Climate change may have a permanent negative impact on the natural resource base upon which agriculture thrives especially considering that it is happening at a time of growing demand for basic human requirements such as food, fiber and fuel 1 . There are several impacts of climate change ranging from impacts on human health, on ecosystems, on species, on water resources, and on agriculture 2 . There is a growing concern among the scientists that it has highly adverse effects on the agricultural sector and the farmers in the least developed and developing countries are the hardest hit 3 . Land-locked least developed countries like Nepal primarily with a subsistence agrarian economy, endowed with a combination of landscape features of rugged mountainous terrain, high poverty levels, and narrowed government capability. The impacts of climate change on different sectors constitute a serious threat to Nepal’s economy and society 4 . Globally, Nepal is ranked thirtieth, eleventh and fourth in terms of flood risks, earthquake and vulnerability to climate change respectively 5 . Already being the fourth most country in the Climate Change Vulnerability Index (CCVI), Nepal seems to remain in perilous condition according to a (study by Barlett et al. as cited in Poudel 6 ) projected impact of climate change from 2030 to 2090; as depicted below: