KATHMANDU, Feb 8: Minister for Forests and Environment Madhav Prasad Chaulagain has said the government is ready to introduce and amend policies and regulations to encourage greater participation of the private sector in carbon trading.
Stressing the need for the involvement of Nepal’s financial institutions in the carbon market, Minister Chaulagain said the Ministry of Forests and Environment is prepared to provide policy-level facilitation to attract private investment. He was speaking at the inauguration of a workshop organised in Kathmandu on Saturday.
Nepal opens commercial pathway to facilitate carbon trading
Referring to Nepal’s recent climate finance breakthrough, the minister said the country had signed a “historic agreement” with the LEAF Coalition, securing climate finance in recognition of its efforts to reduce deforestation. He also noted that policy challenges related to environmental conservation and infrastructure development have been addressed since he assumed responsibility at the ministry.
Forest Secretary Dr Govinda Prasad Sharma said Nepal’s entry into the carbon market was the result of sustained efforts by the ministry but acknowledged that the country has yet to reap the expected benefits from carbon trading.
The workshop featured discussions on the role of financiers in carbon trading, as well as investment opportunities and risks associated with carbon projects. Chief Executive Officer of Nabil Bank Manoj Kumar Gyawali, Senior Vice-President of the Federation of Nepalese Chambers of Commerce and Industry Anjan Shrestha, and Nepal Country Representative of the Global Green Growth Institute Laura Jalasjoki shared their perspectives on mobilising private capital in the sector.
Presentations were also made by Dr Maheshwor Dhakal, Joint Secretary and Chief of the Climate Change Management Division at the ministry; Dr Mukesh Ghimire, Director of the Alternative Energy Promotion Centre; and Dinesh Dulal, Sustainable Energy Banking Chief at NMB Bank, focusing on regulatory frameworks, opportunities and risks in climate finance.
