Prioritizing Adaptation

Given Nepal’s already clean energy mix, primarily reliant on hydropower, adapting to the impacts of climate change should be the primary focus. This includes measures to mitigate the risks associated with extreme weather events, such as floods and droughts, which can significantly impact economic activities.

Furthermore, transitioning to a circular economy model is crucial. This involves minimizing waste and maximizing resource utilization, thereby reducing environmental impact and promoting sustainable economic growth.

Key Considerations for Nepali Banks in Climate Finance

Challenges

• Limited availability of emissions data from borrowers
• Need for enhanced customer education on climate finance
• Potential for higher costs associated with green solutions
• Limited scalability of some green technologies in emerging markets