Collection and disposal of solid waste is a major urban environmental management issue in Nepal and Indonesia. Currently, only a fraction of generated wastes are collected and disposed of in non-engineered sites. Therefore, both collected and uncollected wastes decompose anaerobically, releasing greenhouse gases. This project aims to improve waste management practices by utilising the funds available under the Clean Development Mechanism ( CDM) framework. Intended outcomes of the project include raising the awareness of target municipalities on the new concepts for better waste management, as well as increased awareness of policy-makers, development practitioners and the general public on the innovative funding mechanisms to solve these local problems. The project outputs will also provide information to international parties looking at investment opportunities in developing countries under the CDM framework.