This study provides estimates of the impacts and economic costs of climate change for key risks in Nepal. The primary objectives were: to provide headline and sectoral estimates of the impacts and economic costs of climate change for key risks in Nepal (agriculture, hydroelectricity and water-induced disasters); and to identify climate compatible development adaptation options which address these potential impacts. This report provides a summary of the work. The report concludes that Nepal suffers high economic costs due to current climate variability and extremes and that future climate change is likely to increase current impacts and lead to additional future costs. It is argued that while adaptation can reduce these impacts, it requires an iterative approach.