Climate change has become one of the most challenging global environmental issues facing humanity. Urban centers especially cities with industries and infrastructure play a crucial role in the climate change and greenhouse gases which is expected to aggravate. Nowadays the expansion of cities is experiencing the growth of large slum areas notably in developing countries, threatening all aspects of the quality of life. This study focuses on Adaptation to Climate change and developing strategies for managing environment in such circumstances based on squatter settlement in Nepal. It is concerned with becoming better prepared and resilient to respond to changes in climate. More over it prioritizes the environmental problems and describes the importance of bio-degradable solid waste to generate bio-gas, carbon sequestration to reduce total carbon in the atmosphere together with the frequent flood control system.