Nepal, Nov. 27 -- Green finance isn't a foreign concept for Nepal or its banking industry. Nepal's financial sector's investment has been by default in the hydropower sector for years. However, these investments lacked clear definitions and parameters. With Nepal Rastra Bank's (NRB) recent introduction of a comprehensive green finance taxonomy, that is about to change. The Nepali banking sector is expected to undergo substantive and sustainable changes, redefining investment standards.

This new taxonomy marks an important step towards instituting clear provisions on green investments. It serves as a structured system to classify sustainable economic activities, offering local and international investors the market clarity they need to ma...