Kathmandu: A memorandum of understanding (MoU) has been signed between the Nepal Rastra Bank (NRB) and International Finance Corporation (IFC) on climate finance. Amidst a programme held at the central bank today, NRB’s Executive Director Dayaram Sharma Pangeni and Manager of Country Advisory and Economics for IFC in South Asia, Gregory Smith, signed the memorandum of understanding.
According to National News Agency Nepal, the IFC will provide technical support to the Rastra Bank for climate finance development in Nepal. As part of the project, a climate finance strategy and a draft of its roadmap will be developed. A framework will also be created to implement the strategy in different phases. The IFC will deliver training and capacity building programmes for the Rastra Bank and the overall financial sector to support the formulation and implementation of the climate finance strategy.
The project aims to promote financial resource mobilization in the climate adaptation sector by addressing climate change-related financial risks in Nepal. It is scheduled to be implemented by September 2028. On the occasion, Deputy Governor of NRB, Bam Bahadur Mishra, expressed confidence that the new agreement would help improve climate finance policy and push for its implementation in Nepal. Similarly, Manager Smith anticipated concrete outcomes toward the strategic development of climate finance and its execution in Nepal through the partnership with the central bank.