NIFRA’s Commitment to Green Resilient & Inclusive Development
Nepal Infrastructure Bank (NIFRA) is deeply committed to driving Green, Resilient, and Inclusive Development (GRID) in Nepal. As the country's sole infrastructure bank, NIFRA recognizes the importance of integrating sustainable practices into its operations. By aligning with the national and international climate goals, NIFRA aims to play a pivotal role in addressing climate change and promoting sustainable infrastructure development.
NIFRA's commitment GRID is rooted in its core objectives. The Bank actively incorporates climate resilience into project identification, project development and financing practices, ensuring that infrastructure projects supported by NIFRA are designed to withstand and adapt to climate risks. To address the direct impact of climate change on its operations, NIFRA places high priority on SDG 13 - Climate Action and strives to promote sustainable infrastructure GRID. To this end, NIFRA has developed the "Climate Risk Mitigation and Adaptation Guidelines, 2023," which is an integral part of its Environmental and Social Risk Management Policy, 2020. These guidelines provide the necessary framework for effectively managing climate risks associated with NIFRA's projects. Moreover, NIFRA aligns its investments with the government's climate priorities, including the Nationally Determined Contributions (NDCs), to contribute effectively to Nepal's climate action agenda. By adhering to the objectives outlined in Articles 4.2 and 4.11 of the Paris Agreement for the 2021-2030 period, NIFRA supports the need to actively contribute to the achievement of Nepal's climate goals. Furthermore, the Bank’s portfolio makes a direct contribution to the following UN Sustainable Development Goals (SDGs):
NIFRA's commitment to inclusive development extends beyond environmental considerations. The Bank prioritizes social inclusivity, working to ensure that infrastructure projects funded by NIFRA benefit all segments of society. By promoting transparency, accountability, and participation, NIFRA creates opportunities for stakeholders to engage in decision-making processes, fostering an inclusive and equitable approach to infrastructure development. The Bank actively collaborates with stakeholders across sectors including government agencies, development partners, and communities, to exchange expertise and enhance collective capacity.
NIFRA’s current portfolio contains 28 projects generating various economic, social, and environmental benefits. These projects encompass various sectors such as Energy, Urban, Tourism, Agro Logistics, ICT, Industry and others. For example, the 12 hydropower projects, under NIFRA’s financing, generates around 400 MW which accounts to 21 % of the total electricity demand of Nepal which is 1897 MW.
NIFRA has recently been nominated by the Ministry of Finance, the National Designated Authority for Green Climate Fund and the Bank is in the process of accreditation.