ShodhPatra: International Journal of Science and Humanities

Prospects and Challenges of Green Finance: Pathway to a Sustainable Financial System in Nepal

This article assesses the role of green finance in fostering a sustainable financial system in Nepal, focusing on its alignment with specific Sustainable Development Goals (SDGs) such as 7, 9, 11, and 13. It examines the current state of green finance, identifying the primary challenges that impede its growth, including regulatory ambiguity, limited institutional capacities, and insufficient public awareness. Despite these obstacles, significant opportunities exist, notably Nepal's vast renewable energy resources, the development of eco-friendly infrastructure, and the potential for innovative financing mechanisms such as green finance. The study highlights initial steps taken, including the NRB's Green Banking Guidelines and the government's commitment to achieving net-zero emissions by 2045. By advocating for capacity building, clears regulatory frameworks, and enhanced multi-stakeholder coordination, the research underscores a pathway towards a robust green finance sector, ultimately contributing to a climate-resilient economy in Nepal.