This CTIF support will assist Urja Developers in increasing its capacity to integrate Environment, Social and Governance (ESG) practices in Nepal’s hydropower and renewable energy sector. Urja Developers Pvt. Ltd. was incorporated in 2016 in Nepal as a holistic solution provider for renewable energy (RE), mainly hydropower. Urja’s group of companies plans to harness 1000 MW (1 GW) hydropower and RE potential by 2030, contributing towards the Government of Nepal’s longer-term aim of generating all its electricity from renewable sources.
The technical assistance will include an assessment of Urja’s ESG-related policies and practices; expert advice for the further development of ESG-related policies and practices; capacity-building sessions on ESG; a pilot women leadership and community engagement initiative in Urja’s project-affected areas; and the development of Urja’s engagement strategies with government and other stakeholders in the promotion of ESG practices in Nepal.
Problem being addressed by CTIF
Through its support of developing and applying ESG standards and practices, this CTIF initiative is expected to increase investor confidence in supporting energy projects in Nepal. CTIF assistance will also promote ESG in Nepal’s energy sector by increasing Urja’s capacity to engage with government agencies and other relevant stakeholders and improving community engagement in hydropower project development.
Hydropower projects can have a significant impact on the environment and local communities. To address the ESG implications of such projects, community engagement at all stages of project development and implementation is crucial. By supporting the implementation of ESG practices such as EHS (environment, health, and safety), biodiversity management, and maintenance & enhancement of community health, this CTIF initiative is expected to impact the sustainability of energy project-affected communities positively.
Within the company, building ESG capacity will also lead to incorporating gender-responsive provisions across corporate policies and practices. This approach has been identified as a positive way to encourage and create more opportunities for women’s participation and leadership in the company.