FNCCI emphasises private sector investment, innovation for climate justice

KATHMANDU: Stakeholders have stressed the necessity of placing the private sector at the forefront of investment, innovation, and solution implementation to stimulate climate-resilient economic growth in Nepal. 

Speaking at a special session titled 'Private Sector for Climate Justice,' organised on Saturday by the Federation of Nepalese Chambers of Commerce and Industry as part of Kathmandu Climate Week 2026, participants noted that addressing the country's escalating climate risks requires deep collaboration. They observed that cooperation among the government, financial institutions, development partners, academia, and local communities is crucial to direct climate finance towards vulnerable populations.

FNCCI's Agriculture Committee Chairperson Shiva Prasad Ghimire said the private sector stands ready to partner with government bodies, academic institutions and international development agencies to drive meaningful climate action. He said the federation's extensive network across all seven provinces and 77 districts can be used to advance climate justice, strengthen disaster management, safeguard micro and small enterprises and generate green jobs, and warned that although Nepal’s contribution to global greenhouse gas emissions remains minimal, the country faces disproportionately severe climate consequences.

Citing the destruction caused by recent flooding along the Bhotekoshi-Trishuli river corridor as a stark indicator of Nepal’s growing climate vulnerability, Ghimire said the FNCCI continues to offer technical assistance to encourage energy efficiency. He added that the federation is helping to implement energy management systems and to embed environmental, social and governance standards across the private sector.

The inaugural session, 'Mobilising Private Climate Finance for Climate Justice in Nepal', focused on expanding capital flow to rural, remote and low-income communities. 

Participants said that while urban solar power and electric mobility have attracted investment, initiatives focused on off-grid electrification, renewable energy and localised climate solutions still struggle to secure traditional financing. They called for blended finance models, risk-sharing frameworks and risk-mitigation instruments, stressing that climate finance assessments must extend beyond profitability to account for risk, equity and climate justice.

A subsequent session, 'Innovation in the Private Sector for Climate Action', explored the potential of modern technology, entrepreneurship and context-specific solutions. Attendees identified key barriers including constrained capital access, underdeveloped innovation ecosystems, regulatory ambiguity, limited climate literacy and weak coordination among government agencies, businesses and local communities. Sustainable technology adoption, pollution tracking, carbon trading, electric mobility and green industrial development were highlighted as strategic growth areas.

In the third session, 'How Green Are Our Banks?', speakers said financial institutions must embed environmental, social and governance principles directly into their core lending, investment and risk-management operations. They urged a comprehensive greening of the entire banking architecture rather than confining sustainability efforts to renewable energy or electric vehicles. Identifying data gaps, environmental risk-assessment hurdles and insufficient climate funding as major obstacles, participants recommended mandatory pre-lending environmental evaluations, disaster recovery mechanisms and expanded insurance and compensation networks.

Across all discussions at Kathmandu Climate Week, which concludes on October 5, a clear consensus emerged that the private sector must act as active investors, innovators and implementers of Nepal’s climate agenda. Attendees identified promising investment prospects in renewable energy, energy efficiency, electric mobility, green manufacturing and climate-proof infrastructure, and the event ended with the shared understanding that achieving climate resilience, inclusive economic growth and climate justice depends on delivering climate finance to the rural, remote and frontline communities most affected by climate impacts while opening new commercial avenues for private enterprises.