Climate change is happening and people have begun to feel its impacts on their daily lives. Clear indications of these impacts can be seen on Himalayan glaciers, which are melting at rapid rates and consequently form massive glacial lakes (Figure 1), with a risk of catastrophic glacial lake outburst floods (GLOFs). GLOFs result in loss of lives, property, and costly infrastructure, as well as displacement of local people. They represent a particular threat in Nepal, where resources are already scarce. In least developed countries (LDCs) like Nepal, where poverty reduction is a national priority, the impact of climate change appears to be an obstacle to the process of sustainable development. Institutionalizing the climate change issue in national policies has now become an urgent need rather than a choice. As a signatory to the United Nations Framework Convention on Climate Change (UNFCCC), Nepal has agreed to take climate change considerations into account in its national development agenda. The first step was the ratification of the Kyoto Protocol; the second is building the necessary institutional services such as a Designated National Authority (DNA), which is in the process of establishment. Moreover, climate change policies and strategies, the interconnections between different sectors, and coordination among different line ministries and government departments are issues to be addressed in the near future. WWF has initiated a Climate Witness Project to raise national and international awareness, and supports national efforts to shape adequate institutional responses to climate change.