Global Compact Nepal hosts final session of Sustainable Finance PLG series

KATHMANDU: Global Compact Nepal (GCN), in collaboration with FlexTecs Nepal, successfully hosted the sixth and final session of its Sustainable Finance Peer Learning Group (PLG) series in Lalitpur on Friday.

The event, attended by about 50 stakeholders from the private sector, government and sustainability fields, focused on the evolving carbon market in Nepal, the readiness of the private sector and practical pathways for businesses to participate in carbon projects.

Rajshree Karki, an associate at GCN, served as master of ceremonies. GCN Executive Director Krishna Bikram Shah delivered the opening remarks, emphasising the increasing importance of engaging the private sector in the country’s climate and sustainable finance agenda and noting the potential for collective action through a dedicated task force for member companies.

The central session, titled ‘From policy to practice: a company pathway into Nepal’s carbon market’, was led by Nabaraj Pudasaini, chief or joint secretary at the REDD Implementation Centre. Pudasaini provided an overview of Nepal’s carbon market journey, covering institutional arrangements, regulatory developments and practical implications for businesses. He explained the evolving institutional mechanisms under the Ministry of Agriculture, Forests and Environment, stressing that while environmental management spanned various government levels, carbon trading remained under federal authority.

EDD Implementation Centre Chief Pudasaini also detailed the broader climate policy structure of the nation, including the Nationally Determined Contributions (NDCs), the 16th Plan and the Carbon Trade Regulation 2025, noting how these developments were creating the foundation for increased market participation. He highlighted the significant potential for climate action in Nepal through forestry resources, renewable energy, waste management, agriculture and energy efficiency, and pointed to the Terai Arc Landscape Emission Reductions (ER) Programme, noted as the first such programme in South Asia, as a key example of how emission reduction activities could generate economic value and attract international buyers.

A major focus of the presentation was the emerging digital and technical architecture for the carbon market in Nepal, including the MRV Lab, MRV Portal 2026 and the National Carbon Registry. Pudasaini highlighted the need for clear Benefit Sharing Plans (BSPs) and robust data integrity as Nepal explored private sector engagement in various emission reduction activities.

Bishnu Pandey, a project associate at Youth Action for Sustainable and Eco Nepal (YASEN), introduced his organisation’s work in promoting youth-led climate action and highlighted EcoTracker, a digital initiative helping individuals track their personal carbon footprints.

Nilma Karki, audit operations manager at FlexTecs Nepal, delivered the closing remarks, sharing her company’s sustainability initiatives and responsible business practices. The programme concluded with Shah outlining the future direction of the group by launching a new Sustainable Finance Learning Taskforce, a platform intended to bring private sector voices together to identify emerging issues, share practical challenges and shape future initiatives on sustainable finance in Nepal.

The session marked the culmination of the Sustainable Finance PLG series, an initiative designed to help Nepali businesses align their financial decisions with environmental, social and governance (ESG) goals while contributing to national priorities and global sustainability agendas.