15th April 2025, Kathmandu
The Nepal Bankers’ Association (NBA) and the International Finance Corporation (IFC), a member of the World Bank Group, have signed a Memorandum of Understanding (MoU) to strengthen climate finance in Nepal.
Nepal Banking Climate Finance
The agreement focuses on improving sustainable finance practices and helping banks address climate-related challenges. The signing ceremony took place at IFC Nepal’s office in Kathmandu.
Leaders Highlight the Urgency of Climate Action
Mr. Santosh Koirala, President of NBA, and Mr. Allen Forlemu, Regional Industry Director for IFC’s Financial Institutions Group in Asia and the Pacific, signed the MoU.
During the event, Mr. Koirala stressed the importance of climate action in the financial sector. He said climate change is a growing threat and needs a joint response.
“Governments and policymakers must act,” he said. “But the private sector, especially banks, has a crucial role in driving change and supporting sustainable development.”
Shared Vision for Green Finance
Mr. Forlemu described the NBA as a key partner in Nepal’s journey toward sustainable finance. He said the partnership will help banks in Nepal adopt international standards in Environmental, Social, and Governance (ESG) practices.
He added that through this collaboration, banks can improve risk management, attract climate-related investment, and create a stronger and more responsible financial system.
Focus Areas of the MoU
The MoU outlines several priority areas. These include:
Conducting baseline studies on climate finance readiness
Identifying market opportunities in green finance
Organizing training programs and workshops for key stakeholders
These efforts aim to help banks develop strategies that are both environmentally and financially sustainable.
The partnership is supported by the European Union’s ACSIIS Program, which works to promote climate resilience and sustainable private sector growth in South Asia.
Strengthening the Role of Banks in Climate Finance
NBA and IFC plan to guide banks in understanding and addressing climate risks. They aim to help banks include climate risk considerations in lending decisions and long-term strategies.
The goal is to support banks in transitioning toward sustainable portfolios that promote green energy, climate-smart agriculture, and low-carbon projects.
This collaboration also seeks to build awareness about the economic impact of climate change and the financial opportunities that green investments offer.
A Step Forward for Sustainable Development in Nepal
This MoU marks a major step in Nepal’s financial sector toward aligning with global climate finance trends. Both organizations believe that strong public-private cooperation is essential for climate action.
Together, the NBA and IFC aim to create a future where financial institutions lead in resilience, sustainability, and innovation.
For more: Nepal Banking Climate Finance