NIMB’s Climate Resilience Initiatives: Insights from Nayapal Pande
12th February 2025, Kathmandu
Nepal faces a significant climate finance gap. To meet climate targets, the country needs over $46 billion by 2050. Bridging this gap requires new solutions, strategic partnerships, and collective action.
NIMB’s Climate Resilience Initiatives
Nayapal Pande emphasized these points at the GCF South-South Learning Exchange while discussing NIMB’s role in driving climate finance.
NIMB’s Historic GCF Accreditation
NIMB, established in 1986, is a leading commercial bank in Nepal. In March 2024, it became the first private sector bank in Nepal accredited by the Green Climate Fund (GCF). This accreditation allows NIMB to channel funds into sustainable projects. In August 2024, the bank signed the Accreditation Master Agreement (AMA) with GCF, unlocking access to medium-sized projects ranging from USD 50 million to USD 250 million.
NIMB’s Approach to Climate Finance
Pande outlined NIMB’s strategic approach to climate finance during his presentation. The bank focuses on three core areas:
Mobilizing Finance: NIMB seeks concessional finance for transformative green projects.
Aligning with National Priorities: All projects are aligned with Nepal’s Nationally Determined Contributions (NDCs).
Government Partnerships: NIMB works closely with the government to create an enabling environment for climate investments.
NIMB’s Critical Role in Bridging the Climate Finance Gap
The climate finance gap in Nepal is significant. Pande highlighted that the country needs $46 billion by 2050 to meet its climate goals. NIMB plays a key role in addressing this gap. The bank focuses on empowering local stakeholders, particularly vulnerable communities and small businesses, ensuring that they have access to climate finance. NIMB also strengthens Nepal’s financial sector by helping local institutions adopt climate-smart investment strategies.
Furthermore, NIMB supports the development of innovative technologies to enhance climate resilience in Nepal. These solutions are specifically tailored to the country’s unique environmental challenges.
Challenges in Scaling Climate Finance
Despite NIMB’s progress, several challenges remain. These include:
Limited local expertise in climate finance.
Institutional constraints in managing large projects.
Developing a bankable pipeline of projects.
Building technical capacity in climate finance.
To overcome these challenges, NIMB is focusing on collaboration with both the private and public sectors.
The Path Forward
NIMB’s commitment to a greener future for Nepal is unwavering. Pande emphasized that collaboration, technical expertise, and vision are key to advancing climate finance. With NIMB’s leadership, Nepal can drive climate action and attract private investment to its green transition. The bank continues to shape a sustainable future for the country, ensuring a positive impact for generations to come.
For more: NIMB’s Climate Resilience Initiatives
