KATHMANDU, Jan 16: The Alternative Energy Promotion Center (AEPC) has signed the Accreditation Master Agreement with UN’s Green Climate Fund (GCF) for accessing financing for climate change related-projects and programs in Nepal.
With the signing of the agreement last week, AEPC has become the first Nepali national entity to be accredited by the GCF. “We are happy to become the first Direct Access Entity to the Green Climate Fund from Nepal,” said AEPC Executive Director Madhusudan Adhikari.
Adhikari said the agreement will open up new opportunities for leveraging finances for implementing Low Carbon and Climate Resilient programs and projects in Nepal.
AEPC gets $50 million for climate resilient programs
AEPC Director Nawa Raj Dhakal informed that the AEPC would now be able to access funding for the projects valued up to US $50 million. The agreement is expected to open new avenues for mobilizing climate finance for developing and implementing climate change-related projects in all thematic sectors prioritized by the government.
Officials are confident that the agreement would further strengthen AEPC’s capacity for contributing to Sustainable Energy for All (SE4All), Nationally Determined Contributions (NDCs) and the National Climate Change Policy, all of which are part of the Sustainable Development Goals (SDGs).
Director Dhakal informed that Nepal is currently preparing concept notes for 11 projects that focus on renewable energy and energy efficiency to attract the GCF funding.
“Two projects related to clean cooking and green agriculture are almost finalized. Preparations are underway to submit full funding proposals for at least two projects by the mid-2020,” informed Dhakal. “We are also working in additional nine projects to secure GCF funding.”
As a Direct Access Entity (DAE), AEPC would now be able to propose other sectoral projects that are aligned with the country priorities criteria of GCF. The soft loan will complement the ongoing “Extended Bio-gas Project” under the Scaling Up Renewable Energy Program funded by the World Bank, which has provided a grant assistance of Rs 7 million to promote bio-gas in Nepal.
Nepal has been benefiting from carbon trading in the global market through biogas, improved water mills, micro-hydro projects and use of improved cooking stoves under Clean Development Mechanisms (CDM). AEPC has attracted over US $15 million for eight clean development mechanism-related projects under carbon funding since 2005.
On Sunday, AEPC secured soft loan amounting to US $10 million from Abu Dhabi Fund for Development (ADFD) for its bio-gas projects. Nepal secured the soft loan along with eight other renewable energy projects in developing countries in the seventh cycle of the International Renewable Energy Agency (IRENA) and ADFD project facility.
