FNCCI President advocates for climate-friendly investments at International Dialogue

KATHMANDU, MAY 23: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), emphasized the crucial role of the private sector in mobilizing climate finance and driving sustainable development initiatives during his speech at the International Expert Dialogue on “Mountains, People, and Climate Change”. The two-day dialogue kicked off today at Chandragiri in Kathmandu.   Dhakal highlighted Nepal’s commitment to combating climate change and leveraging its rich natural heritage for sustainable progress.

Dhakal stressed the urgent need for climate finance to enhance resilience, mitigate risks, and transition towards a sustainable economy, particularly in mountain regions that support a significant share of the global population and biodiversity. He showcased several recent initiatives that underscore Nepal’s progress in climate-friendly investments.

One notable example is the US$25 million agreement between Global IME Bank and the Global Climate Partnership Fund (GCPF), aimed at financing projects to reduce CO2 emissions and energy demand. This funding will support renewable energy and energy efficiency projects, benefiting Micro, Small, and Medium Enterprises (MSMEs) and strengthening Nepal’s climate resilience.

The private sector has made substantial contributions across various sectors. Investments in hydropower have led to the generation of 1,744 megawatts of electricity by private entities. Solar energy projects are increasingly prevalent, particularly in rural areas, reducing dependence on non-renewable sources. Additionally, Nepal’s issuance of its first Green Bond highlights the nation’s commitment to sustainable finance.

Government policies further support the shift towards renewable energy. Reduced customs duties on electric vehicles promote eco-friendly transportation. Initiatives like promoting eco-tourism and developing cable car projects also align with efforts to lower carbon emissions and foster sustainable development.

Dhakal called for the continued expansion of climate-friendly investments and stronger public-private partnerships. He underscored the importance of integrating climate finance into national strategies and fostering collaboration with international partners for concessional financing and technology transfer. These partnerships are essential for aligning investments with Nepal’s vision of achieving net-zero emissions by 2045.

Reaffirming FNCCI’s commitment to mobilizing climate finance, Dhakal encouraged potential partners to collaborate in addressing climate change. The dialogue served as a vital platform to highlight the private sector’s key role in fostering innovation and building a sustainable future for Nepal’s mountains, people, and ecosystems.