Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) and International Finance Corporation (IFC) have signed a memorandum of understanding (MoU) on climate finance. The agreement was signed in the presence of Deputy Governor Bam Bahadur Mishra at the bank’s office today.

The MoU was signed by Dayaram Sharma Pangeni, Executive Director of the Office of the Governor on behalf of the Bank and Gregory Smith, Country Advisory and Economics Manager of IFC South Asia. According to the MoU, IFC would provide technical support to NRB for the development of climate finance in Nepal.

Under the project, a climate finance strategy and a roadmap will be drafted. A framework to implement the strategy in a phased manner would be prepared. IFC will conduct training and capacity building programmes to enhance the capacity of the NRB and the overall financial sector in the context of the formulation and implementation of climate finance strategies.

The implementation of the project is expected to support promote mobilization of finance in the climate adaptation sector in Nepal by addressing climate finance risks. The project will run until September 2028.

On the occasion, Deputy Governor Mishra said that IFC and NRB have been working together since the past to strengthen the financial sector of Nepal and expressed his confidence that the new MoU would help in policy development and implementation of climate finance in Nepal. Smith, manager of IFC, is hopeful that the partnership with the NRB will yield fruitful results towards the strategic development and implementation of climate finance in Nepal.

Executive Director of Bank and Financial Institutions Regulation Department Ramu Poudel, Director Govinda Prasad Nagila and Acting Director of the Office of the Governor were present on the occasion. Director Suman Neupane, IFC Resident Representative Rathnija Arandara and other officials were present on the occasion.