European Union, NRB, and IFC Host Seminar on Climate Risks and Opportunities in Nepal’s Banking Sector

KATHMANDU

In a significant move to address the pressing issue of climate change and its impact on the financial sector, a seminar titled ‘Climate Risks and Opportunities in Nepal’s Banking Sector’ was held today by the Nepal Rastra Bank (NRB) and International Finance Cooperation (IFC), supported by the European Union (EU) under their regional initiative ‘Accelerating Climate Smart and Inclusive Infrastructure in South Asia’ (ACSIIS).

The seminar focused on disseminating the findings of the Climate Finance Risk Exposure Assessment and facilitated the discussion of risks, opportunities, and potential steps to develop and implement a regulatory framework that supports the growth of a green finance market in Nepal.

“A well-defined and structured regulatory framework to develop a green finance market will enable Nepal’s financial sector to channel private sector capital towards climate-related projects, which will contribute to achieving our climate commitments,” said Mr. Bam Bahadur Mishra, Deputy Governor, Nepal Rastra Bank (NRB). “With support from the World Bank Group, NRB will work with the banking sector to strengthen Nepal’s financial sector to adapt to the growing challenges of climate change.”

The full-day seminar was attended by key stakeholders from the Government of Nepal, NRB, the World Bank Group, banking and non-banking financial institutions and associations, the private sector, and development partners, including the European Union.

“Climate change poses a significant threat to financial stability, but it also presents a unique opportunity for banks to lead the way in sustainable development. By helping integrate climate risks into the operations, we can together build a more sustainable banking sector,” said Mr. David N. Sislen, Regional Country Director for Maldives, Nepal, and Sri Lanka, The World Bank. “Making a difference on climate will require coordinated action between the public and private sectors, and the financial sector is central to that work. Partnerships with all stakeholders are essential to supporting climate finance in Nepal, fostering collaboration and unlocking the resources needed to tackle climate challenges and promote sustainable finance.