ANTALYA, Nov 14: Stakeholders have called for an increase in grant-based climate finance for Nepal, arguing that the country should not be forced to take on additional debt to address a climate crisis to which it has contributed little.
Speaking at a discussion on “Access, Quality and Equity of Climate Finance in Nepal” organized at the Nepal Pavilion at COP31, participants stressed the need to improve the quality and accessibility of climate finance for mitigation and adaptation efforts.
According to data presented by the NGO Federation Nepal and Oxfam, Nepal received US$5.71 billion in climate finance from various sources between 2011 and 2021. Of the financing received from multilateral sources, 61 percent was in the form of loans, 38 percent grants and one percent shares and equity.
SHIFT for Our Planet: Youths urge authorities to make climate j...
Arjun Dhakal, undersecretary at the Ministry of Finance, said the choice between grants and loans depends on the nature and needs of projects, availability of financial resources and expected economic returns.
He said grants should be prioritized for adaptation projects in vulnerable countries such as Nepal, as most adaptation investments do not generate direct economic returns. Concessional loans, he added, could be used for renewable energy, hydropower and climate-related infrastructure that can generate economic returns.
“In case of foreign loans, repayment period, grace period, ability to repay and overall sustainability of the loan” should be considered, Dhakal said.
Neha Sharma of the Adaptation Fund said strengthening institutional capacity and meeting required criteria are essential to enable national institutions to directly access climate finance. She said criteria related to gender equality, environmental and social safeguards, procurement and financial management must be fulfilled by national implementing agencies seeking direct financing from international climate funds.
Dr Manish Raj Pandey, director of the National Nature Conservation Fund, shared Nepal’s experience in accessing biodiversity and genetic resources and benefit-sharing mechanisms.
Harjeet Singh, founding director of the Satat Sampada Climate Foundation, said climate finance should not be viewed as donations or aid but as a responsibility of developed countries that have contributed significantly to climate change and as a right of countries affected by its impacts.
The discussion was attended by NGO Federation President Arjun Bhattarai and representatives of climate finance institutions, government agencies and the conservation sector.
RSS
