San Giorgio Group Case Study: Pilot Program for Climate Resilience in Nepal

This case study analyzes the IFC-PPCR project in Nepal, which seeks to integrate climate resilience into the private sector's business model within the agricultural sector. By providing grants for farmer training and creating a risk-sharing facility for commercial banks, the project aims to increase agricultural productivity and income for 15,000 farmers while ensuring long-term profitability for agribusinesses. While early results are promising, the study highlights risks such as low farmer adoption and market price volatility, and notes that replicating this model in other LDCs like Zambia, Mozambique, and Niger is hindered by poor investment climates and data gaps.

• The IFC-PPCR project in Nepal aims to build climate-smart agriculture models that make resilience a long-term business for private actors. The program targets the agricultural sector by developing the capacity of agribusiness firms and local commercial banks to transfer resources and skills to farmers, with the goal of training 15,000 farmers.
• Agribusinesses in the project are projected to recoup their investments—estimated up to USD 95,000 each in cash and in-kind contributions—approximately five years after the training of targeted farmers is complete. This recovery is expected through higher turnover and profits resulting from an improved supply of agricultural products. PPCR grants used to cover incremental training costs are expected to reduce this payback period by several years.
• Beyond financial returns, agribusinesses are motivated by strategic benefits, including securing higher quality and more regular crop supplies and expanding their customer base. This is particularly critical for companies processing rice, sugarcane, and maize, which currently operate below capacity due to low yields. Climate change is estimated to further reduce the productivity of these crops by 4-16% by 2030.
• The project expects to generate significant benefits for up to 15,000 farmers, including a projected income increase of around 20% through improved agronomic practices, equipment, and finance. Agribusinesses may facilitate this by acting as loan intermediaries or guarantors and offering purchase guarantees to ensure farmer loyalty.
• To encourage local commercial banks to expand lending to the agricultural sector, the IFC is designing a risk-sharing facility that blends PPCR resources with its own. This facility aims to cover a portion of initial losses from loan defaults to reduce costs and increase attractiveness to banks, who are also driven by a regulation requiring expanded agricultural lending by July 2014.
• The project identifies several risks that could undermine the business case for private actors, including the failure of pilot training to prove economic viability, low farmer participation due to literacy levels or socio-cultural diversity, a decrease in market prices for rice, maize, and sugar, and the potential for the risk-sharing facility to be unattractive to banks.
• The PPCR has employed three primary strategies to create conditions for private sector engagement in Nepal: extensive and early consultations supported by in-depth analyses, tailored knowledge and capacity building, and innovative financing instruments.
• The document notes that replicating private sector engagement in other Least Developed Countries (LDCs) faces barriers. Examples from Zambia, Mozambique, and Niger include unfavorable investment climates, limited awareness of climate risks to business assets, a mismatch between investment returns and investor time horizons, and a lack of technical skills and data.

APA

Trabacchi, C., & Stadelmann, M. (2013). San Giorgio Group Case Study: Pilot Program for Climate Resilience in Nepal. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2013/12/SGG-Case-Study-Pilot-Program-for-Climate-Resilience-in-Nepal.pdf

Chicago

Trabacchi, Chiara, and Martin Stadelmann. San Giorgio Group Case Study: Pilot Program for Climate Resilience in Nepal. Climate Policy Initiative, 2013. https://www.climatepolicyinitiative.org/wp-content/uploads/2013/12/SGG-Case-Study-Pilot-Program-for-Climate-Resilience-in-Nepal.pdf.

Wikipedia

{{cite report |last1=Trabacchi |first1=Chiara |last2=Stadelmann |first2=Martin |title=San Giorgio Group Case Study: Pilot Program for Climate Resilience in Nepal |publisher=Climate Policy Initiative |date=December 2013 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2013/12/SGG-Case-Study-Pilot-Program-for-Climate-Resilience-in-Nepal.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{trabacchi2013san, author = {Trabacchi, Chiara and Stadelmann, Martin}, title = {{San Giorgio Group Case Study: Pilot Program for Climate Resilience in Nepal}}, institution = {Climate Policy Initiative}, year = {2013}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2013/12/SGG-Case-Study-Pilot-Program-for-Climate-Resilience-in-Nepal.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }