Investing in Nature-based Solutions for sustainable development and climate resilience in Nepal

About the workshop

The Himalayan Resilience Enabling Action Programme (HI-REAP) of ICIMOD is organising this workshop to engage Banking and Financial Institutions (BFI), environmental practitioners, and select local government representatives (mayors) from Nepal, to explore co-finance for scaling of Nature-based Solutions (NbS) such as springshed management, and rangeland management for multiple benefits.

We aim to harness investment opportunities not only as a financial trade-off, but also as a wise financial strategy for BFI. The workshop will bring together mayors from Kavre and Dhulikhel to discuss  the pilot interventions, and opportunities for public-private-people partnerships. We will highlight the rationale for scaling NbS and the role of private sectors and BFI in leveraging investments for greener, more inclusive and climate-resilient Nepal. Discussions on potential incentive mechanisms and engagement processes will help these institutions understand diverse investment portfolio for wider sustainability impact.

Objectives

The primary aim of this workshop is to create the avenue for BFI to invest and support NbS,  especially springshed and rangeland management and bioprospecting businesses that generate long term social, environmental, climate and governance outcomes.

Specific objectives include:

• Sharing business cases for springshed and rangeland management in Nepal, demonstrating impact and investment areas
• Co-designing of incentive mechanisms to enable blended financing
• Identifying prospective investment plans and partnership opportunities (mapping interest of mayors and interest of BFI)

Background

NbS are actions to protect, sustainably manage, or restore natural ecosystems that address environmental, social, economic, and gender related challenges while simultaneously providing human well-being and biodiversity benefits. For example, NbS like springshed management, and rangeland management for multiple benefits, can lead to significant improvements in ecosystem health, water security, and community livelihoods security. These interventions not only restore natural habitats and sustain multiple ecosystem services, but also enhance the resilience of communities to climate impacts and trigger inclusive participation and partnerships.

Local governments in Nepal, such as those in Kavre and Dhankuta Municipality, are actively engaging in springshed management to combat water insecurity. However, small-scale efforts cannot match the pace of growing water insecurity across Nepal. It is crucial to accelerate the deployment of NbS with greater urgency and efficiency. Key constraints for scaling include insufficient financing, limited capabilities for impact financing, and policy enablers supporting wider scale adoption.

Private sector involvement is therefore vital for scaling NbS. Furthermore, by investing in a Gender Equality and Social Inclusion (GESI)- responsive NbS and private enterprises, BFIs can not only help countries achieve their national objectives and commitments to global biodiversity, climate and sustainable development goals but also improve corporate sustainability, enhanced brand reputation, and derive long-term economic returns. Furthermore, such engagement can catalyse public-private partnerships, leverage additional funding and expertise needed for local governments to push wider scale adoption of NbS.

HI-REAP is working to promote NbS for socio-ecological resilience, low-carbon economies, and improved air quality in Bangladesh, Bhutan, India, and Nepal, building on knowledge and learning from China. The programme aims to ensure communities are better prepared to cope with shocks and more able to adapt to change. This engagement workshop with BFI will be a pioneering effort to scaling of NbS in Nepal. We will bring a business case that combines scientific knowledge, community practices, supportive policies, investment opportunities. BFI’s role is going to be critical in providing the necessary impetus for scaling. Collectively, we create the opportunity for Nepal for such investment, paving the way for a sustainable and resilient financing situation for scaling NbS.