Nepal-EU joint commission meeting discuss graduation from LDC, GSP

The 15th meeting of the Joint Commission (JC) between Nepal and the European Union (EU) discussed gamut of bilateral issues including graduation from LDC, GSP and investment promotion, in Kathmandu today.

A broad range of issues of mutual interest were discussed during the meeting, according to a press note issued by the Foreign Ministry.

Nepal and the EU are also celebrating the 50th anniversary of their diplomatic relations this year.

The meeting was co-chaired by foreign secretary Sewa Lamsal and deputy managing director for Asia and the Pacific of the European External Affairs Service of the EU Paola Pampaloni.

The two sides reiterated their commitment to work together in upholding democracy and human rights, promoting good governance, realising Sustainable Development Goals (SDGs), promoting investment, and coping against global challenges such as climate change.

The Nepali side, on the occasion, highlighted achievements and bottlenecks in the realisation of SDGs.

Likewise, the EU welcomed Nepal’s transition strategy to graduate from LDC status and expressed their commitment to continue their cooperation through the Multi-Annual Indicative Programme (MIP).

Nepal welcomed the EU’s MIP for the term 2021-2027. The Nepali side also appreciated the MIP for aligning with the plans and priorities of Nepal.

Nepal and the EU also reviewed the progress of EU’s development cooperation in various sectors.

The meeting acknowledged the sub-commission meeting on development cooperation held on March 6.

On regional and multilateral processes, Nepal and the EU also discussed about SAARC and BIMSTEC. The two sides underlined the importance of effective multilateral cooperation.

The EU praised Nepal’s contributions to UN Peacekeeping Operations, the press note reads, adding that Nepal and the EU reaffirmed their commitments to cooperate within the United Nations (UN), World Trade Organisation (WTO), and other global fora to promote effective multilateralism and the rules-based international order. "Human rights including social inclusion were also discussed at the meeting."

The Nepali side reaffirmed its commitment to upholding human rights and concluding transitional justice as soon as possible.

The EU expressed hope on the early conclusion of Nepal’s peace process. 

The two sides unanimously agreed that corruption, including money laundering and financing of terrorism, is a major impediment to sustainable development.

The EU took note of Nepal’s ongoing legislative efforts and underlined the importance of compliance and enforcement, the press note adds.

The EU commended Nepal’s remarkable strides on inclusive participation and women empowerment. Both sides praised the EU flagship action 'Empowered Women, Prosperous Nepal', launched last year by the EU and the Ministry of Women, Children and Senior Citizens of Nepal.

The EU commended Nepal for the child grant schemes and encouraged its expansion.

The EU also appreciated the achievements made by Nepal in its socio-economic transformation. The two sides appraised the recent developments in upholding the democratic processes and institutions, and stressed the important role of civil society and media for strengthening democracy and good governance.

"The Nepali side underlined their multiple vulnerabilities of natural disasters, exacerbated by the impacts of climate change, and discussed climate adaptation finance," it reads, adding that the EU complimented Nepal for its position on Climate Change and the ‘Mountain Agenda’ during COP28 and also on its ambitious goal of reaching net zero carbon status by 2045.

"The Nepali side expressed gratitude for the EU's generous assistance following the Jajarkot earthquake, in post-earthquake resilient reconstruction and recovery efforts, and appreciated the cooperative partnership in disaster risk reduction."

The two sides exchanged their views on bilateral trade relations, including the criteria for acceding to the Generalised Scheme of Preferences Plus (GSP+).

Nepal, on the occasion, also expressed appreciation for the exchanges under the Erasmus+ programme, and the scholarships offered for Erasmus Mundus Joint Master Degree programmes, including people-to-people contacts. 

The EU and Nepal underlined that air safety remains a key priority area in their bilateral relations. Nepal assured of addressing all observations of the EU’s assessment visit in September 2023, while the EU will support Nepal in this process. Both sides agreed to follow-up at technical levels.

The next Joint Commission meeting will take place in Brussels next year.

World Bank and ADB join forces for sustainable development of Nepal’s hydropower sector

The World Bank and the Asian Development Bank (ADB) announced collaboration to strengthen Nepal’s hydropower sector specifically in the context of the proposed Upper Arun and Dudh Koshi hydropower projects.

A memorandum of understanding (MoU) stipulating cooperation between the two institutions for an initial period of five years was signed today on the sidelines of COP28 by World Bank vice president for South Asia Martin Raiser and ADB vice president for Sectors and Themes Fatima Yasmin.

"The full potential of Nepal’s enormous hydropower resources cannot be realised without close partnership between the Nepali government, development partners and the private sector," World Bank vice president for South Asia Martin Raiser said, adding that with the MoU, the ADB and the World Bank are laying the foundations for closer collaboration in financing and policy advice in Nepal’s hydropower sector, with the aim to support the country’s green, sustainable and inclusive development for decades to come.

"This agreement between ADB and the World Bank is a significant step in strengthening Nepal's energy security amid rising demands from population growth and urbanisation," ADB vice president for Sectors and Themes Fatima Yasmin said, adding that it also fosters power trade with neighbouring countries, promoting regional cooperation, economic growth, and green and inclusive development. "ADB is committed to promoting clean energy solutions that align with climate action goals. Our commitment goes beyond generating power; it's also about creating positive impacts on communities, livelihoods, and the environment and contributing to a more sustainable future for all."

The MoU specifically targets three critical areas for collaboration: enhancing country-level collaboration, strengthening co-financing, and boosting joint action on climate change. The pilot approach between the two multilateral development banks provides opportunities for collaboration in knowledge and experience sharing to ensure common understanding of the hydropower sector in Nepal, joint analytical studies, and consultation in support of the development of the hydropower sector.

Under the MoU, the World Bank and Asian Development Bank will also work together on strengthening the institutional capacity of Nepal’s executing and implementing agencies in the development of large hydropower projects, and the preparation and financing of projects in the energy sector. 

This is the first MoU signed between ADB and the World Bank following the joint statement on strengthening collaboration for greater impact issued by the heads of multilateral development banks at the World Bank-IMF Annual Meetings in Marrakech in October, 2023.