GCN, UNDP Nepal hold fifth sustainable finance PLG session on carbon markets

KATHMANDU: Global Compact Nepal (GCN) and UNDP Nepal, together with Pioneer Law Associates, held the fifth session of the Sustainable Finance Peer Learning Group (PLG) on June 2. The event took place at Pioneer Law Associates’ Anamnagar premises and drew more than 30 participants from the private sector.

The monthly series, now in its fifth of six sessions, aims to help businesses integrate sustainability and climate considerations into financial strategies. This meeting focused on the emerging carbon market in Nepal, the implications of the country’s Carbon Regulations Act and how companies can engage with evolving climate finance mechanisms.

Rajshree Karki, Associate at GCN, opened the session and outlined the day’s objectives, which included discussions on carbon markets, regulatory developments and private sector opportunities in Nepal’s climate finance landscape. Krishna Bikram Shah, GCN Executive Director, delivered opening remarks, noting the continued commitment of participating organisations to advance sustainable finance and highlighting GCN’s engagement in international climate forums this year.

Dr Prem Kumar Pokharel, Director of Prakriti Consult, then gave a technical overview of carbon markets, covering emission reduction credits, compliance and voluntary markets, and the carbon project development cycle. He reviewed global trends and Nepal’s progress on regulatory measures, and identified priority sectors for carbon projects as well as distinctions between carbon project accounting and broader sustainability reporting.

Advocate Anup Raj Upreti, Managing Partner of Pioneer Law Associates, addressed the legal and taxation aspects of carbon credit transactions in Nepal. His presentation covered income tax and VAT treatment from both project developer and foreign buyer perspectives and outlined financial instruments relevant to carbon markets and climate finance.

The session concluded with closing remarks and a vote of thanks from Shah, who acknowledged the speakers and participants and urged continued collaboration to advance Nepal’s carbon market and climate finance ecosystem.

The active engagement during the session reflected growing private sector interest in carbon markets, regulatory developments and legal and taxation frameworks as drivers of climate action in Nepal. The PLG series will continue next month with the sixth and final session in the current cycle.