India VS Pakistan
Kathmandu/Luxembourg – Global IME Bank Limited (GIBL) and the Global Climate Partnership Fund (GCPF) have officially inked a historic USD 25 million loan agreement aimed at advancing climate-conscious lending in Nepal. This groundbreaking deal represents GCPF’s maiden climate-related funding endeavor in Nepal, underscoring their shared commitment to addressing environmental concerns in the region. The funds are specifically allocated for bolstering energy efficiency and renewable energy projects within the country, providing a significant boost to Nepal’s sustainability efforts.
GCPF operates as a blended partnership model, utilizing public funds to catalyze private sector investment and stimulate growth in developing markets. This partnership promises to foster climate resilience and environmental sustainability through strategic investments.
Commenting on this milestone, Mr. Ratna Raj Bajracharya, CEO of Global IME Bank, emphasized the pivotal role of the GCPF facility in supporting energy efficiency projects and reducing greenhouse gas emissions in Nepal. He expressed the bank’s unwavering dedication to environmental initiatives, as they align with their strategic climate management objectives.
“We are delighted to expand our presence in Nepal, a country highly susceptible to climate change, through collaboration with a committed and like-minded financial institution such as Global IME Bank. We eagerly anticipate supporting the bank in its climate financing journey through our in-house team of Climate Advisory Specialists and the fund’s Technical Assistance Facility,” said Mr. David Diaz Formidoni, Head of FI Investments and Climate Finance at GCPF.
The Global Climate Partnership Fund, based in Luxembourg, serves as a pioneering public-private partnership devoted to mitigating climate change by reducing greenhouse gas emissions in emerging and developing markets. It prioritizes investments in energy efficiency and renewable energy projects, whether through local financial institutions or direct funding. Only projects demonstrating significant energy savings and a commitment to reducing greenhouse gas emissions by at least 20% qualify for GCPF funding.
GCPF was established in 2009 as a public-private partnership, with contributions from several investors, including the German Federal Ministry for Economic Affairs and Climate Action (BMWK), KfW Entwicklungsbank, the International Finance Corporation (IFC), and others.
This collaboration between Global IME Bank and GCPF marks a significant stride towards Nepal’s sustainable future, emphasizing the importance of climate-conscious initiatives in the country’s banking sector.
