MoU signed on strategic development of climate finance

Kathmandu, Dec 15: 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. 

As per the MoU, the IFC would 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 would be developed. 

Likewise, a framework to this effect would be developed to implement the strategy in different phases. 

"In regard to the formulation of climate finance strategy and implementation, IFC would deliver training and capacity building programme of the Rastra Bank and overall financial sector", stated in a press release issued by the central bank. 

The project is expected to help promote financial resource mobilization in the climate adaptation sector by addressing climate change related financial risks in Nepal. 

The project would be implemented by September 2028. On the occasion, Deputy Governor of NRB, Bam Bahadur Mishra expressed his confidence that the new agreement would help improve climate finance policy and push for its implementation in Nepal. 

Likewise, Manager Smith expected concrete outcomes towards the path of strategic development of climate finance and its execution in Nepal through the partnership with the central bank. (RSS)