NRB, IFC sign MOU to develop climate finance strategy for Nepal

KATHMANDU: Nepal Rastra Bank (NRB) and the International Finance Corporation (IFC) have signed a memorandum of understanding (MOU) to develop a climate finance strategy for Nepal.

The MOU was signed at a programme organised at the NRB office on Sunday in the presence of NRB Deputy Governor Bam Bahadur Mishra. Daya Ram Sharma, Executive Director of the Office of the Governor, on behalf of NRB, and Gregory Smith, Manager of Country Advisory and Economics for IFC in South Asia, signed the MOU.

Under the understanding, IFC will provide technical assistance to NRB to develop climate finance in Nepal. A draft climate finance strategy and its roadmap will be prepared, and a framework will be developed for the phased implementation of the strategy. IFC will also conduct training and capacity-development programmes to enhance the capacity of NRB and the wider financial sector in the formulation and implementation of the climate finance strategy.

The project is expected to promote the mobilisation of financial resources for climate adaptation while addressing climate-related financial risks in Nepal. The project will operate until September 2028.

Speaking at the programme, NRB Deputy Governor Mishra said collaboration between IFC and NRB to strengthen Nepal’s financial sector has been ongoing for some time, and he expressed confidence that the new understanding would assist policy development and the implementation of climate finance in Nepal.

IFC Manager Smith said he expected the partnership with NRB to deliver results in the strategic development and implementation of climate finance in Nepal.

NRB’s Banks and Financial Institutions Regulation Department Executive Director Ramu Paudel, Director Govinda Prasad Nagila, Acting Director of the Office of the Governor Suman Neupane, IFC’s Resident Representative for Nepal Rathnija Arandara, and other officials were present at the programme.