By Erica Slowik
Situated in the heart of the Hindukush-Himalaya region, the relatively small country of Nepal forms the southern face of the world’s highest mountain range. Impressive variations in altitude bless the country with spectacular landscapes and a wide range of ecosystems that support rich biodiversity and ways of life . Yet the future is daunting for communities as well as their environment: extreme levels of poverty and poor physical infrastructure render Nepal particularly vulnerable to climate change. Calamities like glacial lake outburst flooding and prolonged drought, for example, have the potential to wreck untold destruction and devastation.
The good news? Nepal is demonstrating “steady momentum on its path towards climate readiness” . In 2013, the Government of Nepal affirmed its commitment to low-emission, climate-resilient development by incorporating climate change into its Three Year Plan. Today, it is gearing up to launch a second phase of readiness support from the Green Climate Fund.
In November 2017, Nataij travelled to Kathmandu, Nepal to support the Ministry of Finance (MoF) for a second time in selecting nominees for Direct Access Entity (DAE) accreditation to the Green Climate Fund (GCF). In its latest call for applications, the MoF solicited submissions from institutions capable of accessing loans, equity, and guarantees from the GCF. The ultimate goal: broaden the portfolio of financial instruments that can be leveraged for responding to the climate challenge.
The Nataij team developed scoring matrices to assess applicants and recommend a short-list; interfaced with executive teams to perform initial gap analyses of each short-listed entity; and examined overarching procedures, processes, and policies to determine which short-listed entities demonstrated (i) the fewest gaps against the GCF accreditation standards and (ii) expertise that aligned most closely with the priorities of the MoF. To ensure client satisfaction, Nataij collaborated with technical experts from the Nepal Rastra Bank (Central Bank of Nepal) to further understand the financial operations and performance of candidates before providing the MoF with a final recommendation. Ultimately, two candidates were selected for nomination. Although nominees still have a long road ahead of them before obtaining DAE accreditation, Nataij anticipates the entities will become leaders in driving transformational investments, and the team looks forward to supporting them along their journey.
Dixit, A. et al. Vulnerability Through the Eyes of the Vulnerable Climate Change Induced Uncertainties and Nepal’s Development Predicaments. (2009).
Nepal accelerates effective engagement with Green Climate Fund. Green Climate Fund Readiness Program (2017). Available at: http://www.gcfreadinessprogramme.org/news-content/nepal-accelerates-effective-engagement-green-climate-fund. (Accessed: 8th August 2018)