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Nepal’s private banking sector in the past years has collaborated with international organizations to finance climate resilience projects in the country. Several banks have secured funding and accreditation to support renewable energy, sustainable agriculture, and climate adaptation initiatives. But where are they allocating the funds and what type of project is those funds benefiting? Or really these banks are funding the right project or are they investing these climate-related funds to other non-climate projects?

In June 2023, Laxmi Sunrise Bank collaborated with Global Green Growth Institute (GGGI) to implement the Tarai Agribusiness and Enterprise Challenge Fund (TAECF) under the Korea International Cooperation Agency (KOICA)-GGGI Climate Smart Agriculture project. This initiative aims to support micro and small enterprises in the agriculture sector by providing grants and facilitating access to finance. The Bank has to play a crucial role in offering loans to grantees approved by GGGI, strengthening the agricultural value chain in Madhes Province.

Despite efforts to obtain comments and updates on the project, Chief Information Officer (CIO) of Laxmi Sunrise Bank, did not respond to inquiries via email or phone. Even after reporting it to the Chief Grievances Officer, there was no further update.

In March 2024, Nepal Investment Mega Bank Limited (NIMB) became the first private-sector commercial bank in Nepal to receive accreditation from the Green Climate Fund (GCF). This accreditation enables NIMB to manage climate projects ranging from $50m to $250m, facilitating investments in renewable energy, solid waste management, and climate adaptation projects through public-private partnerships.

Khushbu Thapa Magar, the Green Climate Fund (GCF) Project Manager at NIMB, provided an in-depth response regarding the bank’s role in climate finance. Her response outlined the bank’s structured approach to climate finance, which includes two key stages: ‘Concept Note Preparation’ and ‘Full Funding Proposal Development’. Initially, the bank identifies and develops investment-ready projects aligned with Nepal’s climate priorities and GCF criteria. Once approved, a detailed funding proposal is created, including feasibility studies, financial structuring, environmental and social assessments, and a Gender Action Plan.

“NIMB’s project pipeline focuses on various sectors crucial to Nepal’s climate goals, including renewable energy, e-mobility, waste-to-energy solutions, sustainable agriculture, urban resilience, and climate adaptation efforts,” says Magar. “The bank prioritizes projects with high paradigm shift potential, ensuring that they can be scaled and replicated nationwide.”

Magar further highlighted NIMB’s investment strategy, which includes concessional funding, public-private partnerships, and structured financial mechanisms to de-risk climate projects. “Additionally, NIMB follows strict environmental and social safeguards, promotes gender equality and social inclusion (GESI), and aligns its projects with Nepal’s Nationally Determined Contributions (NDCs) and Long-Term Strategies (LTS).”

In Oct 2023, Global IME Bank Limited (GIBL) secured a $25m loan from Global Climate Partnership Fund (GCPF) to promote climate-positive lending in Nepal. This funding is specifically allocated for energy efficiency and renewable energy projects, with a strong emphasis on electric mobility.

In Feb 2024, International Finance Corporation (IFC) invested $56m in GIBL to enhance access to finance for small and medium enterprises (SMEs), particularly women-owned businesses and those in rural areas. A portion of this funding is dedicated to climate mitigation efforts, including clean transportation, climate-smart agriculture, and solar energy projects.

In June 2024, the OPEC Fund for International Development provided a $25m loan to GIBL to support micro, small, and medium enterprises (MSMEs) while enhancing climate resilience in Nepal. This funding seeks to bridge financing gaps for MSMEs and expand the bank’s climate finance portfolio.

Despite attempts to obtain a statement, the CIO of GIBL did not respond to requests via email or phone. Even after reporting it to the Chief Grievances Officer, there was no update.

In May 2023, IFC invested $55m in Siddhartha Bank Limited (SBL) to increase access to finance for small businesses and foster climate finance in Nepal. The investment is expected to support clean transportation, climate-smart agriculture, and solar projects. However, no response was received from the CIO of SBL, despite multiple inquiries. The Chief Grievance Handling Officer was also not available.

These kinds of partnerships reflect Nepal’s growing engagement in climate finance and the private sector’s increasing role in sustainable development. With these collaborations, Nepal’s banking sector is positioning itself as a key player in financing the country’s transition toward a greener economy. However, challenges remain in ensuring the effective implementation of these funds and fostering greater transparency in climate-related investments.

The Donald Trump administration has sent a clear signal that it intends to pursue an aggressive strategy to counter Chinese influence across the Indo-Pacific region. In a significant policy address on March 25, US Secretary of Defense Pete Herseth outlined the administration’s vision for the region, marking the first comprehensive articulation of its Indo-Pacific strategy after assuming office in January. Herseth’s remarks built upon the Indo-Pacific Strategy (IPS) introduced during Trump's first presidency in 2017, while introducing new elements reflecting the current geopolitical landscape.

Speaking at an event hosted by the Daniel K Inouye Asia-Pacific Center for Security Studies in Hawaii, Herseth emphasized the critical importance of US alliances in the region, stating: “Our alliances and partnerships in the Indo-Pacific matter a great deal to the United States. They matter because the Indo-Pacific is the region of consequences.” 

He reaffirmed the administration’s commitment to Trump's original vision of a “free and open Indo-Pacific,” first articulated during a 2017 speech in Vietnam, describing it as a framework where nations can prosper as sovereign and independent states.

The defense secretary’s remarks come amid already strained US-China relations, exacerbated by Trump's imposition of sweeping tariffs on Chinese goods. Herseth’s speech made clear that the administration intends to extend this tougher approach to military and security matters, declaring that “no one should question the United States' resolve to defend its interests in the Indo-Pacific and beyond.” He emphasized America's military superiority, vowing to maintain “the strongest, most effective and most lethal force in the world” to deter potential adversaries.

This renewed focus on the Indo-Pacific revives a strategy that has previously caused diplomatic complications for some regional partners. The original 2017 IPS identified Nepal as a US partner in its 2019 document, sparking significant domestic criticism in Kathmandu where the strategy was widely perceived as an anti-China military alliance. In 2022, the Joe Biden administration subsequently recalibrated the approach, emphasizing economic cooperation over military alignment and deliberately avoiding references to the IPS in official communications with Nepal to prevent controversy. This shift was particularly important following the backlash against the Millennium Challenge Corporation (MCC) compact after US defense officials publicly linked it to the IPS in 2018.

Herseth’s address placed particular emphasis on strengthening military-to-military relationships across the region, suggesting that the Trump administration may seek to expand defense cooperation with countries like Nepal. This could include renewed pressure to finalize the long-pending State Partnership Program (SPP) agreement, which has been on hold due to Nepal’s concerns about upsetting its delicate balance between China and India. The US Indo-Pacific Command has maintained consistent engagement with Nepal’s military, and this cooperation is expected to intensify under the current administration.

The defense secretary framed the administration's approach as seeking “peace through strength” while attempting to reassure allies that “America First does not mean America only or America alone.” However, he acknowledged the need to reassess existing military partnerships, stating: “It means our military-to-military relationship must make sense for America and our partners. If there are imbalances, we will find them and we will fix those imbalances. We will right-size the obligations and responsibilities needed.”

Herseth’s current tour of the region, including stops in Guam, the Philippines, and Japan for high-level meetings with both military and civilian leaders, has drawn particular attention from Beijing. Analysts note that the Philippines holds special strategic significance in US planning, with Chinese commentator Shi Hong pointing out in Global Times that Manila’s geographic position—with its northern islands near Taiwan and western coastline facing the South China Sea—makes it particularly valuable for countering Chinese influence.

The administration’s strategy appears to involve pressuring wealthier regional nations to increase their defense spending while potentially boosting military assistance to smaller partners like Nepal. This approach presents Kathmandu with a complex diplomatic challenge, as accepting greater US military support could strain its relationships with both China and India. The key question for Nepalese policymakers will be how to navigate potential US pressure to enter into strategic agreements without compromising the country’s traditional non-aligned stance or its vital relationships with neighboring powers.

As the Trump administration moves to implement this more assertive Indo-Pacific strategy, the coming months will likely see increased US engagement across the region, with particular focus on strengthening military partnerships and countering Chinese influence. The extent to which smaller nations like Nepal can maintain their balancing act between major powers while responding to these new strategic pressures remains to be seen.

A visionary idea conceived by a Russian engineer in the mid-1950s—envisioning an elevator  connecting Earth to space via a concrete cable—has inspired a new era in construction. This  concept, known as the “Space Elevator,” may have sounded far-fetched at its inception, yet it laid the foundation for a revolution in material science. Central to this evolution is Ultra High  Performance Concrete (UHPC), a modern marvel with the potential to transform how we build our  future.

A leap from vision to reality 

The idea behind the space elevator is elegantly simple: anchor a mass in outer space, tether it to an  Earth station, and maintain constant tension along a 25,000 km cable that guides an elevator  between the two realms. Although such a structure demands materials of extraordinary strength—a challenge that even today remains partly unsolved—the emergence of nanotechnology has  opened up the possibility of fabricating ultra-strong nanotubes. It is within this framework that UHPC finds its entry, offering strength and durability that could someday make such futuristic projects a reality. 

Historically, concrete has evolved significantly. In the early 1950s, Otto Graf’s 70N/mm² concrete  barely sparked interest in the construction industry. It wasn’t until 1966, when Kurt Walz  introduced a 140N/mm² variant using special production methods, that the idea of enhancing  concrete properties began to take hold. By integrating stronger aggregates, microsilica, water reducing agents, and incorporating steel and polypropylene fibers, engineers gradually pushed the  boundaries of what concrete could achieve.

Engineering excellence with UHPC 

Ultra High Performance Concrete distinguishes itself by achieving compressive strengths between  150 and 200N/mm²—comparable to the strength of steel. Reinforced with fine steel fibers, UHPC  not only becomes ductile, reaching tensile strengths exceeding 15N/mm², but also achieves flexural tensile strengths up to 50N/mm². Its dense microstructure, virtually devoid of capillary pores, renders it highly resistant to liquids, gases, and corrosion. This property allows UHPC to serve as a protective wearing course for bridge decks without the need for additional safeguards  against chlorides, alkalis, or de-icing salts.

“The superior durability and strength of UHPC not only ensure longer-lasting structures but  also promise considerable savings in materials and maintenance over the lifespan of a project.” 

Despite its remarkable compression capabilities, UHPC remains primarily a compression material. To harness its full potential, engineers are exploring hybrid solutions such as integrating carbon fiber mats to bolster its tensile and shear capacities. Such innovations could lead to the creation of  lightweight yet robust girders and even enhance the performance of large-diameter precast  concrete piles.

Overcoming cost and workability challenges 

Even as UHPC stands out for its technical merits, widespread adoption faces two major hurdles: cost and workability. The intricate production and handling process make mass production of  UHPC less economical compared to conventional concrete. Historically, advancements like the  Bessemer and Open Hearth steel processing in the 1850s dramatically reduced costs and spurred  innovation. UHPC, too, awaits a breakthrough in construction technology that can bring down its  price and simplify its application. 

Quality remains paramount. UHPC demands specialized attention and equipment to ensure  consistency, a constraint that challenges its integration into conventional construction methods where dimensions and workability are critical. In light of these issues, the future of UHPC depends  on rethinking and reimagining how we approach design and application.

Innovating beyond traditional concrete 

The true promise of UHPC lies in its potential to foster entirely new structural concepts rather than  merely replacing regular concrete in existing designs. The historical trajectory of construction  materials teaches us that innovation often stems from “thinking outside the box.” Just as high strength wires revolutionized long-span suspension bridges and prestressed structures, UHPC may  well pave the way for novel architectural forms that fully exploit its exceptional properties. 

The cements typically used for UHPC, such as CEM I low-alkali Portland cements, offer high  sulphate resistance and low heat of hydration. These features, combined with a fine-grained mix that ensures homogeneity, contribute to UHPC’s impressive performance under external stresses.

A call for future innovation 

As engineers and architects continue to push the boundaries of what is possible, UHPC stands as a beacon of potential for the construction industry. Its high strength, durability, and innovative  applications signal a shift toward more sustainable and efficient building practices. To fully harness the capabilities of UHPC, the industry must develop new design paradigms—ones that  move beyond traditional structural forms and embrace the material’s groundbreaking properties. 

The journey of UHPC from a novel concept to a practical material reminds us that innovation is  an evolving process. With continued research and technological breakthroughs, UHPC may soon  become the cornerstone of next-generation infrastructure, echoing the visionary dreams of the past  while building the future of construction.

In the face of global trade uncertainties, Nepal must proactively adapt to geopolitical shifts while diversifying its economic partnerships. Strengthening regional ties, investing in domestic industries, leveraging supply chain shifts, and prioritizing digital transformation will be key to sustaining economic growth and reducing external dependencies. A well-calibrated trade strategy, backed by strong governance and infrastructure development, can enable Nepal to navigate the evolving global trade landscape with confidence.

Adapting to geopolitical realities

Nepal should reduce dependence on major powers like the US and China by expanding trade partnerships within South Asia and beyond. Strengthening economic ties with regional and interregional platforms such as BBIN, SAARC, BIMSTEC, ASEAN, IORA, and the African Union can provide alternative markets and enhance economic resilience. Additionally, closer engagement with EU agencies and Middle Eastern economies can help diversify Nepal’s trade and investment sources.

However, deepening foreign trade relations demands strong governance and accountability. Nepal must implement stricter scrutiny on foreign aid to ensure effective fund utilization, while also building trust with international donors.

Overcoming institutional challenges

A major roadblock to regional trade integration is bureaucratic inertia and political unwillingness to implement complex initiatives. Keay challenges include:

• Limited political commitment to advancing regional economic cooperation.
• Under-resourced institutions that lack the capacity to negotiate and implement effective trade policies.
• A shortage of skilled professionals with expertise in international trade and economics.

To overcome these obstacles, Nepal must prioritize institutional reforms and invest in building a capable workforce equipped to navigate the intricacies of global trade.

Solution: Invest in human capital

Nepal must empower its workforce with skills in IT, AI, and fintech to make the economy more adaptable to global shifts. Skilled labor will be a critical factor in leveraging the ongoing supply chain shifts from China to South Asia, where Nepal can benefit through IT outsourcing and low-cost manufacturing.

Diversification and self-sufficiency

To strengthen its economic base, Nepal must focus on domestic revenue generation. Key strategies include:

• Taxation reforms to enhance revenue collection and reduce reliance on foreign aid.
• Industrial growth and public-private partnerships (PPPs) to boost productivity and innovation.
• Regulatory simplification to eliminate bureaucratic red tape and foster a business-friendly environment.
• Digitization of trade and business processes to minimize corruption and improve efficiency.

Strengthening domestic industries

Nepal must reduce reliance on imports by fostering growth in agriculture, manufacturing, and services. Instead of exporting raw materials, Nepal should develop processing and manufacturing capabilities to create value-added products. Agro-based, herbal, natural fiber, and bamboo industries hold significant potential to generate employment and exports.

FDI and trade policy reforms

To attract FDI, Nepal should offer incentives in manufacturing, energy, and technology sectors. Simultaneously, tracking global trade policies—especially tariffs imposed by the US on China, the EU, and India—can help Nepal identify trade opportunities and capitalize on shifting market dynamics. Key considerations include:

• Analyzing how global firms and markets are adjusting to US tariffs and leveraging these shifts to Nepal’s advantage.
• Assessing the impact of rising consumer costs in the US and negotiating preferential market access for Nepali products.
• Capitalizing on the supply chain shift from China, which is expected to redirect five percent of global production to South Asia. Nepal can position itself as a hub for IT services and cost-effective manufacturing, provided it reforms labor laws to ensure fair wages and job security.
• Rather than pursuing retaliatory trade measures, Nepal should adopt a strategic diplomatic approach, negotiating preferential market access while quietly building trade capabilities.

Infrastructure and trade facilitation

The government must focus on policy reforms, trade facilitation, and accreditation to ensure that Nepali products meet international standards. Key infrastructure investments include:

• Developing transshipment ports to enhance access to international markets.
• Strengthening logistics and port-road connectivity to reduce trade bottlenecks.
• Enhancing trade-related services to streamline export and import processes.

Nepal must also maximize economic diplomacy by leveraging the Hub and Spoke Mission approach. Appointing trade specialists and improving foreign policy foresight and scenario planning within the Ministry of Foreign Affairs can strengthen Nepal’s position in international trade negotiations.

Conclusion

Given the shifting geopolitical landscape and evolving US trade policies, Nepal must tread carefully to safeguard its trade interests. The US’s increasing reliance on tariffs and sanctions as economic tools, along with rising tensions between major global economies, calls for a strategic and diversified approach in Nepal’s trade policies. To strengthen resilience, Nepal must focus on regional cooperation, trade diversification, and digital transformation while ensuring robust governance and policy reforms.