The Green Climate Fund (GCF) and Nepal Investment Mega Bank (NIMB) signed a grant agreement on Monday, February 9, 2026. The partnership with one of Nepal’s largest commercial banks will be the first step to unlocking increased domestic and international private capital for climate action in Nepal.
It is GCF’s first-ever Readiness and Preparatory Support grant for a private-sector Direct Access Entity. It is believed that readiness support will strengthen the bank’s institutional capacity to scale up financing for renewable energy, resilient infrastructure, and other climate-smart initiatives.
The initiative will demonstrate how local financial actors can play a catalytic role in achieving country-driven climate goals, and is in line with GCF’s commitment to strengthen the role of local financial institutions in domestic climate finance markets.
Achala Abeysinghe, GCF’s Director of the Department of Investment Services, commented that catalysing various climate finance instruments would also support job creation and small, medium-sized enterprises in Nepal.
“This is a very important milestone, and it takes GCF a step further in our partnership with NIMB and indeed the country of Nepal,” Abeysinghe said.
Jyoti Prakesh Pandey, NIMB’s Chief Executive Officer, said: “Today marks the beginning of a new chapter in Nepal’s climate finance ecosystem. It will strengthen institutional readiness and enable the private sector to translate climate ambition into investible projects.”
Through this Readiness support, NIMB will build its institutional systems, governance, and technical capacity to mobilise private and concessional capital in support of Nepal’s national climate priorities. The programme will focus on:
- Strengthening fiduciary, safeguards, and institutional systems
- Developing investment-ready climate pipelines aligned with Nepal’s Nationally Determined Contributions and National Adaptation Plan
- Establishing climate finance management and oversight frameworks
- Designing the enabling environment for a future blended finance pathway.