FNCCI Senior VP Stresses Need for Clear Policy to Expand Carbon Financing in Nepal

Anjan Shrestha, Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), stated that a clear policy is necessary to effectively expand carbon financing. Addressing a program on carbon trading in Lalitpur on Sunday, he mentioned that banks would expand carbon financing if there were clear policy arrangements. He informed that banks are currently investing under green finance. He stated that having a clear policy regarding carbon financing would facilitate investment. He emphasized the need for technical support and a clear policy to enable banks to understand and evaluate carbon credits as a financial asset. He stressed that when revising the regulations and procedures for carbon mitigation, the real problems faced by the private sector must be addressed. He opined that carbon financing would only become practical and sustainable if the private sector is involved in a participatory manner. He emphasized starting some successful pilot projects before talking big about carbon mitigation. He stated that establishing a few successful model projects would increase confidence among banks and investors. Shrestha claimed that Nepal could bring in billions of rupees in revenue through carbon trading if the government plays the role of a facilitator. For this, he stressed that the government must encourage and trust the private sector. He said, "When revising the carbon mitigation regulations and procedures, the real problems of the private sector must be addressed, and the private sector must also be involved. Instead of talking big, let's start some successful model projects as pilot projects. This will increase the confidence of banks and investors. Technical support and a clear policy must be created for banks to understand and evaluate carbon credits as a financial asset. This will allow banks to move forward with investment. Currently, banks are financing under the umbrella of green finance. But to advance further, there must be a clear policy arrangement for banks to come forward in carbon financing. If the government plays the role of a facilitator, Nepal can bring in billions in revenue. The government must encourage and trust the private sector. We are ready to collaborate with the government and international partners to secure the right for FNCCI in carbon trading. Although some call this 'trading air,' this is a very important trade. Even if this sounds like idle talk, the country can benefit from it." He stated that FNCCI is ready to collaborate with the government and international partners to ensure its right in carbon trading. He mentioned that although some consider carbon trading as 'trading air,' it is an extremely important trade. He stated that the country could gain economic benefits from it. – News Agency Nepal