December 10, 2023, Sunday
Nepal 1:37:26 pm

FNCCI Sr. VP Dhakal draws attention for increasing private sector’s access to GCF

The Nepal Weekly
August 30, 2022

Senior Vice President of the Federation of Nepal Chamber of Commerce and Industry (FNCCI) Chandra Prasad Dhakal said that private sector to the Green Climate Fund should be increased to reduce the impact of climate change.

Speaking on behalf of the private sector in the technical session of the four-day national workshop on ‘South-South Exchange on Preparing Smooth Transition Strategies: Graduating cohort of 2021’ organized by the United Nations in Bangkok, Dhakal said that in order to reduce the impact of climate change, which is seen as the biggest problem facing the world now, private sector’s access to Green Climate Fund should be increased so as to develop hydropower projects and the construction of transmission lines.

Dhakal added that the private sector should be assisted in raising subsidized investment. 

“We are currently exporting Nepal’s hydroelectricity to India and Bangladesh by building a cross-border transmission line. If we can raise investment by facilitating the access of the private sector to the Green Climate Fund, it can be further developed and expanded to other South Asian countries as well,” he mentioned.

He further stated that the private sector will play an important role in the development and expansion of new technology. The private sector is capable of finding a solution to the climate change problem by making use of it if it can provide investment from the fund at a concessional rate.

“Now small and medium businesses have been hit by the impact of climate change. If the Green Climate Fund is provided for the development of hydropower projects and the construction of transmission lines at a concessional rate, it will help reduce the impact of climate change and protect small and medium businesses,” he said.

Dhakal also urged the United Nations, the governments and other non-governmental organizations to move forward with the private sector as climate change is becoming the world’s biggest challenge.

The national workshop is scheduled to discuss common challenges of graduation and identify pathways to address them collaboratively in devising the smooth transition strategies.

Nepali delegation led by National Planning Commission Secretary Kebal Prasad Bhandari along with the representatives of Nepal government, private sector and various non-governmental organizations participated in the conference.

Moreover, Green Climate Fund (GCF) was established as an operating entity of the United Nations Framework Convention on Climate Change (UNFCCC) in 2010. The GCF is expected to channel a large share of the USD 100 billion by 2020 in international climate finance that developed countries have committed to mobilize. Nepal as a party to the convention is eligible to access funding from GCF through national and international entities. The Government of Nepal has nominated the Ministry of Finance (MoF) as the National Designated Authority (NDA), while the International Economic Cooperation Coordination Division (IECCD) serves as the contact point for the GCF. The IECCD operates as the interface between Nepal and the GCF, and the NDA ensures that activities supported by the GCF align with the country’s national policies and priorities. The Government of Nepal needs to strategically engage with the GCF, which will require developing effective processes for allocating and prioritizing investment, engaging and coordinating national stakeholders, and managing GCF project and programme development and implementation. The Nepal GCF Engagement Strategy has been prepared to guide the NDA and the Government of Nepal in meeting these requirements. This strategy is country driven and is based on Nepal’s key national and sectoral priorities, including the Nationally Determined Contribution and the National Adaptation Programme of Action. With Nepal’s extreme climate vulnerability and its growing greenhouse gas emissions, the resource requirements for the country to achieve low carbon climate resilient growth are substantial.