Nepal's Environment Minister Pledges Support for Private Sector in Carbon Trading

Kathmandu. Minister for Forest and Environment, Madhav Prasad Chaulagai, has stated that the government is ready to cooperate in formulating necessary policies and regulations to increase private sector participation in carbon trading. He mentioned that the participation of Nepal's financial institutions alongside the government is also necessary in carbon trading and that the ministry is ready to facilitate policy-wise for this.

Minister Chaulagai made these remarks today while inaugurating a workshop organized here with the objective of enhancing the understanding of Nepali financial institutions regarding Article 6 of the Paris Agreement and the financialization of carbon projects. "Some time ago, after much effort, we signed a historic agreement to receive climate finance from the LEAF Coalition (Lowering Emissions by Accelerating Forest finance) in recognition of our efforts to reduce forest degradation," he said.

Minister Chaulagai informed that after taking charge of both the Ministry of Forest and the Ministry of Physical Infrastructure and Transport, he has initiated efforts to address the policy challenges observed in environmental conservation and infrastructure development.

At the program, Forest Secretary Dr. Govinda Prasad Sharma stated that carbon trading has commenced due to the long-standing efforts of the ministry, but noted that Nepal has not yet been able to reap the expected benefits from carbon trading.

At the program, Manoj Kumar Gyawali, CEO of Nabil Bank, Anjan Shrestha, Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), and Laura, National Representative of the Nepal Global Green Growth Institute, shared their views on the perspective of financiers in carbon trading, the opportunities and risks involved in financial investment in carbon projects, among other topics.

Dr. Maheshwar Dhakal, Chief and Joint Secretary of the Climate Change Management Division of the Ministry of Forest, Dr. Mukesh Ghimire, Executive Director of the Alternative Energy Promotion Centre, and Dinesh Dulal, Head of Sustainable Energy Banking at NMB Bank, gave presentations on the opportunities, risks, and regulatory aspects involved in engaging in carbon finance.

Participants at the program engaged in presentations, discussions, and interactions regarding the practical knowledge related to the opportunities, risks, and regulatory aspects involved in engaging in carbon finance.