The role, challenges and opportunities of climate finance in natural resource–based enterprises
Two-days’ 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 15th –16th January 2026 in Tripurasundari Rural Municipality and Barhabise Municipality, Sindhupalchowk respectively, 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 (preferably women led), banking and financial institutions, and market actors, creating a strong platform for dialogue and shared learning on climate finance.
Key Insights
- – Climate finance is recognised as a crucial tool for supporting natural resource-based enterprises, yet direct application of climate finance codes at the municipal level is still limited.
- – Women-led and forest/resource-based enterprises (e.g., nettle (sisnu), broom, coffee, lapsi candy, bamboo crafts, Nepali paper, NTFP processing) show high potential but need technical support, market linkages, and investment.
- – Municipalities have demonstrated proactive commitment through budget allocations, nursery facilities, and provision of production land to support climate-smart enterprises.
- – Strong collaboration between local governments, financial institutions, markets and entrepreneurs is essential for mobilising climate finance at local level and promoting sustainable, climate-resilient businesses.
Key Takeaways
- – Awareness of climate finance among entrepreneurs and financial institutions remains low, though interest in leveraging these opportunities is growing.
- – Capacity building and practical use of climate finance mechanisms are critical for enabling enterprises to thrive.
- – Empowering women entrepreneurs and promoting locally viable natural resource-based products are essential for sustainable and inclusive economic development.
- – Policy support, institutional coordination, and active engagement from entrepreneurs themselves are required to stabilize and grow the sector.
- – Breakout group discussions and stakeholder commitments have strengthened understanding, coordination, and pathways for climate-resilient enterprise development at the local level.
