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Stakeholders have underscored the imperative of placing the private sector at the forefront of investment, innovation and solution implementation to drive climate-resilient economic growth while addressing Nepal’s escalating climate risks. They noted that effective collaboration among the government, private sector, financial institutions, development partners, academia and local communities is essential to channel climate finance toward vulnerable populations.

Speaking at a special session titled “Private Sector for Climate Justice”, organised on Saturday in Kathmandu by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) as part of Kathmandu Climate Week 2026, participants highlighted the need to mitigate climate impacts while unlocking emerging economic opportunities. Being held from October 2 to 5, Climate Week brings together policymakers, entrepreneurs, experts and climate advocates from Nepal and abroad.

During the event, Shiva Prasad Ghimire, Chairperson of FNCCI’s Agriculture Committee, affirmed that the private sector stands ready to partner with government bodies, academic institutions and international development agencies to drive meaningful climate action. He emphasised that FNCCI’s extensive network across all seven provinces and 77 districts can be leveraged to advance climate justice, strengthen disaster management, safeguard micro and small enterprises, and generate green jobs.

He added that although Nepal’s contribution to global greenhouse gas emissions remains minimal, the country faces disproportionately severe climate consequences.

Ghimire cited the destruction caused by recent flooding along the Bhotekoshi-Trishuli river corridor as a stark indicator of Nepal’s growing climate vulnerability. He noted that FNCCI continues to offer technical assistance to foster energy efficiency, implement energy management systems, and embed Environmental, Social, and Governance (ESG) standards across the private sector.

The inaugural session, “Mobilising Private Climate Finance for Climate Justice in Nepal,” centred on expanding capital flow to rural, remote and low-income communities.

Participants observed that while urban solar power and electric mobility have attracted investment, initiatives focused on off-grid electrification, renewable energy and localised climate solutions still struggle to secure traditional financing. They called for blended finance models, risk-sharing frameworks and risk-mitigation instruments, stressing that climate finance assessments must extend beyond profitability to account for risk, equity and climate justice.

The second session, “Innovation in the Private Sector for Climate Action,” explored the potential of modern technology, entrepreneurship and context-specific solutions. Key barriers identified included constrained capital access, underdeveloped innovation ecosystems, regulatory ambiguity, limited climate literacy and weak coordination among government agencies, businesses and local communities. Conversely, sustainable technology adoption, pollution tracking, carbon trading, electric mobility and green industrial development were highlighted as strategic growth areas for Nepal.

In the third session, “How Green Are Our Banks?”, speakers asserted that financial institutions must embed ESG principles directly into their core lending, investment and risk management operations when allocating capital to climate-resilient initiatives. They called for a comprehensive greening of the entire banking architecture rather than confining sustainability efforts to renewable energy or electric vehicles. Identifying data gaps, environmental risk assessment hurdles, and insufficient climate funding as major obstacles, participants advocated for mandatory pre-lending environmental evaluations, disaster recovery mechanisms, and expanded insurance and compensation networks.

Across all three sessions, a clear consensus emerged that the private sector must not be treated merely as a passive stakeholder or discussion participant but as active investors, innovators and implementers of Nepal’s climate agenda. Attendees identified promising investment prospects in renewable energy, energy efficiency, electric mobility, green manufacturing and climate-proof infrastructure.

The event concluded with the shared understanding that achieving climate resilience, inclusive economic growth and climate justice in Nepal hinges on delivering climate finance to the rural, remote and frontline communities most affected by climate impacts, while concurrently opening new commercial avenues for the private sector.