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Workshop on Green Taxonomy

Nepal Bankers’ Association and USAID Urja Nepal jointly organized a Workshop on “Green Taxonomy”. The main objective of the workshop was to discuss the objectives, principles and standards of Green Taxonomy, and delve into the various challenge in the implementation of Green Taxonomy framework, exploring opportunities, challenges and potential solutions.

Urja Nepal Chief of Party, Mr. Robert Kremer delivered the opening remarks highlighting the necessity to align with Green Taxonomy standards to prevent greenwashing practices and the need to enhance understanding of sustainability financing and its relevance and benefits for energy sector development. He further emphasized the critical importance of collaboration among stakeholders for the effective implementation of Green Taxonomy.  

During the program, NBA President Mr. Sunil KC underscored the timeliness and relevance of the workshop, noting that the topic of green financing is relatively new for Nepalese banking industry. He pointed out that the workshop is expected to serve as a valuable platform for sharing insights, experiences, and best practices from both national international contexts. Additionally, he highlighted the evolving regulatory environment surrounding green financing in Nepal and commended Nepal Rastra Bank (NRB) for its effective policies and regulations. Mr. KC also appreciated the encouragement provided by NRB to Banks and Financial Institutions on their journey toward green financing.

The Joint Secretary of Ministry of Energy, Water Resources and Irrigation, Mr. Sandip Dev highlighted that the government has taken green financing issues with high priority and has introduced various policies to support this initiative. Furthermore, in the context where government has established long-term agreements specifically focusing on the energy sector, which require substantial investments. To attract foreign investment, the successful implementation of green taxonomy is essential. He also emphasized that the alignment between government priorities and regulatory support plays a critical role for the development of green financing initiatives in Nepal.

The Keynote Speaker and Chief Guest of the program Hon. Governor of Nepal Rastra Bank, Mr. Maha Prasad Adhikari, emphasized Nepal Rastra Bank’s initiatives in promoting green financing. He highlighted that as the Nepalese banking sector begins to adopt sustainable financing practices, green taxonomy provides a clear framework for sustainable investments, ensuring that funds are directed toward environmentally friendly projects. This approach not only addresses the financial needs of the energy sector but also promotes a sustainable and eco-friendly economy, making the country more attractive to international investors. Furthermore, Mr. Adhikari highlighted the importance of continuous efforts to increase awareness, enhance technical capabilities, and build capacity among stakeholders for the successful implementation of green financing practices.

Throughout the workshop, various presentations and panel sessions covered a range of topics, including both national and international perspectives on green financing. The discussions following the presentations were productive and fruitful, the program was well-attended by government officials, development partners, representatives from commercial banks, IPPAN officials, and other concerned stakeholders, among others.

The workshop served as a platform for stakeholders to not only comprehend the nuances of sustainability financing but also to engage in constructive discussions on the challenges, opportunities, and potential solutions. The workshop also helped to foster a collaborative environment that ensures the successful implementation of the Green Taxonomy and pave the way for a sustainable future in Nepal.