Nepal Bankers’ Association (NBA) and International Finance Corporation (IFC), World Bank Group have signed a Memorandum of Understanding (MoU) to enhance climate finance initiatives, strengthen the sustainable finance practices and to address the climate change challenges.
The MoU was signed by Mr. Santosh Koirala, President, Nepal Bankers’ Association and Mr. Allen Forlemu, Regional Industry Director, FIG Asia and Pacific, IFC, at a formal ceremony held at IFC Nepal’s office. The agreement marks a significant step in fostering collaboration to support the Nepalese banking industry in integrating climate risk considerations into financial decision-making and mobilizing resources for sustainable investments.
Speaking at the signing ceremony, Mr. Koirala emphasized NBA’s commitment to advancing sustainable finance practices in Nepal’s banking sector. He highlighted that the growing risk of climate change requires a concerted effort from all stakeholders and these challenges demand urgent action, not just from governments and policymakers, but also from the private sector, particularly the banking industry, which plays a key role in mobilizing resources and driving sustainable development.
Mr. Forlemu emphasized the strong partnership between IFC and NBA, highlighting that NBA is a highly valued partner in advancing sustainable finance in Nepal. He stated that this collaboration would be instrumental in supporting Nepalese banks to integrate Environmental, Social, and Governance (ESG) principles into their operations. By doing so, banks can align with global sustainability standards, enhance risk management, resource mobilization and contribute to a more resilient and responsible financial sector.
The collaboration between NBA and IFC, supported by the European Union ACSIIS Program, will focus on key areas such as conducting baseline and market opportunity studies, and facilitating training/workshop for concerned stakeholders to promote the climate resilience.
