Strengthening climate finance for natural resource–based enterprises at the local level
A one-day workshop on “The role, challenges and opportunities of climate finance in natural resource–based enterprises” – प्राकृतिक स्रोतमा आधारित उद्यममा जलवायु वित्तको भूमिका, चुनौती र अवसर, was successfully held on 4th –5th January 2026 in Devchuli and Gaidakot Municipalities, Nawalpur, under the Climate Action Financing through Women and Social Enterprise (CAFIN) project, an International Development Research Centre (International Development Research Centre (IDRC) funded initiative through Climate Policy Initiative (CPI).
The event brought together local governments, natural resource-based enterprises, banking & financial institutions, and market actors, creating a strong platform for dialogue and shared learning on climate finance.
Key Insights
- – Climate finance code was introduced to Nepal’s budgetary system in 2012 as the first country to do so but its practical application has been a challenge.
- – Municipal representatives shared that although direct climate finance coding is not yet practiced, several investments already contribute to adaptation and mitigation.
- – Limited awareness and capacity remain major challenges in integrating climate finance into local planning and budgeting.
Key Takeaways
- – Natural resources-based enterprises have strong resource and market potential but lack processing technologies and access to finance.
- – Awareness on climate finance is low among entrepreneurs and banks, though interest and opportunities are growing.
- – Capacity building, policy revision, and practical use of climate finance budget codes are crucial.
- – Municipalities expressed readiness to collaborate on training and capacity development.
