Proper assessment of climate risks for inclusion in the financial management procedure is beneficial in strengthening the financial policies of Nepal regarding climate change
Nepal remains the most susceptible country to the impacts of climate change mainly due to its geographical location and intensive agriculture. Glacial melt has been rapid, and variations in climate patterns and natural disasters have become frequent. These challenges put at risk millions of people's ability to feed themselves and the progress of the country. Investments are a key issue, and green finance emerges as a solution, allowing for financing renewable energy sources, climate-resilient infrastructure and sustainable agriculture. Green financing can help Nepal achieve lasting advancement and improve people's well-being by transitioning to a low-carbon economy that reduces the effects of climate change impacts.
Nepal is highly exposed to such disasters as landslides and floods, given its strategic geographical location and the effects of climate change. It is thus necessary to provide for obligatory funding of early warning systems and the construction of more resilient infrastructure to reduce these risks. The construction of flood-resistant bridges and applying some methods to avoid the formation of slopes provide no possibility for landslides and provide safer transportation routes.
Green finance is instrumental in fostering sustainable investment relevant to the growth of Nepal's economy and the sustainability of its environment. Nepal has a significant advantage in renewable energy, especially hydroelectricity. Renewable electricity generation enhances power supply, attracts investors and promotes the development of resources for power generation. Furthermore, these investments reduce carbon emissions, contributing positively to global climate change.
Proper assessment of climate risks for inclusion in the financial management procedure is beneficial in strengthening the financial policies of Nepal regarding climate change. The green finance principles have to be maintained and incorporated by banks and other financial institutions so that there is a certain provision for a loan or investment for environmental causes. Green bonds and loans that are linked to sustainable projects help to attract sustainable investments. These finance renewable power, green agriculture, and climate-resilient infrastructure for growth and development while at the same time reducing the impact of climate change. Moreover, the shift towards a green economy increases productivity and competitiveness through such factors as innovation, energy cost savings and the creation of new market opportunities for eco-friendly products and services, increasing the stability of the financial system.
The green economy holds significant potential for job opportunities, particularly in sectors such as renewable energy, eco-agriculture and eco-tourism. By increasing renewable electricity generation such as hydropower or solar power in Nepal, it is possible to create vast employment opportunities in development and operation. Sustainable agriculture and the development of eco-tourism can benefit the farmers and the local economies by attracting international visitors interested in conservation and nature experiences.
Green finance is a catalyst for innovation in climate solutions, driving the development of new technologies and sustainable practices. Investments in research and development remain important in funding novel technologies in renewable energy, energy efficiency and climate change resilient infrastructure. By funding innovative projects, green finance boosts the development and utilisation of sustainable solutions against the effects of climate change. Additionally, international collaborations and technology transfers bring advanced expertise and resources to Nepal, enhancing local capacities.
Public health can be enhanced by linking with environmental health as pollution and poor environmental conditions can lead to a range of health issues. Green finance can greatly enhance air quality by funding renewable energy sources. Sustainable water management increases the availability of clean water and in turn eradicates waterborne diseases, while improved systems of waste disposal prevent contamination and spread of infectious diseases. Sustainable agricultural practices reduce the use of toxic pesticides hence enhancing the health of the people.
Nepal plays an active role in international climate agreements, including the Paris Agreement, and contributes towards the global cause of reducing climate change. The Nepal government mobilises climate finance or seeks international cooperation possible for Nepal to achieve the set climate change goals and foster sustainable climate change projects in the country. It is possible to establish cooperation with foreign partners based on which Nepal can count on grants or investments in its green projects, including renewable energy or afforestation, and building climate resilience.
Thus, the prospects of climate and green finance present multiple possibilities for Nepal's climate resilience, economy, jobs, advanced health, and the most efficient financial organisations. Green finance opens new opportunities for the development of an increased share of the Nepali economy and investing in the sphere of renewable energy and energy savings. It has the potential of decreasing reliance on conventional energy sources lowering the energy risks of insecurity and fuel price fluctuation.
