Nepal has achieved significant development progress in recent decades. To sustain the development gains, Nepal must adapt its development pathway to a changing climate. Nepal ''s Country Climate and Development Report (CCDR) identifies ways that Nepal can achieve its overall development objectives while fostering its strategic ambition to transition to a greener, more resilient, and inclusive development pathway.
Global warming and climate change are already affecting Nepal''s gross domestic product. Increased flooding, heat stress on labor productivity and health, and heat stress on crops and livestock are expected to be a continual drag on growth. Women, indigenous people, and other marginalized groups are often excluded from mainstream development and suffer from cumulative and cascading impacts of climate change and disasters. Without comprehensive and scaled-up climate action, climate change will continue to jeopardize gains in Nepal''s human development and poverty reduction.
To respond to this challenge, Nepal is already implementing steps to recalibrate its economy by adopting a Green, Resilient, and Inclusive Development (GRID) approach 2021, Nepal adopted theGreen, Resilient and Inclusive Development (GRID) approachas a national vision to guide long-term green growth and build resilience to climate and other shocks that are barriers to Nepal''s development ambitions. Under Nepal''s federal structure, the local governments are placed at the center of climate resilience and development efforts with extensive implementation responsibilities and play a crucial role in translating the GRID strategy into action.
Nepal has pledged to achieve net zero emissions by 2045 and to significantly scale up hydropower investment in the coming decade.Nepal has begun to put in place the necessary policy framework, such as the 2019 National Climate Change Policy, the 2022 Solid Waste Management Policy, the 2022 Forest Regulation and the 2022 Land Use Regulation. However, implementation of this reform agenda and prioritization of investments is incipient. Moreover, enhanced prioritization and efficiency of public expenditure are required to maximize climate and development benefits.
Last Updated:Sep 15, 2022
Country Climate and Development Report for Nepal outlines four priority system transitions that are fundamental to addressing the risks that climate change poses to Nepal while also providing opportunities for improving the quality and sustainability of economic development:
Nepal''s CCDR report also outlines three key enabling themes to help support the priority system transitionstoward a greener future for Nepal:
Nepal Climate and Development Report – Full Profile
Setting up institutional structures at provinces and municipalities for participatory RE and EE promotion.
Increasing private sector investment in theinclusive expansion of RE with a focus on women and disadvantaged groups.
Developing and promoting the use of digital tools and platforms on RE and EE
Supporting industries and enterprises adopt clean energy and efficient practices, and decent work approach.
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Green hydrogen is generated through electrolysis, wherein water is split into hydrogen and oxygen using electricity derived from renewable sources. This contrasts with gray hydrogen, produced using fossil fuels and resulting in significant carbon emissions. Since green hydrogen is created using renewable energy like hydroelectricity, it does not contribute to greenhouse gas emissions, making it a green alternative and becoming the choice of most countries that plan to achieve net zero emissions in the near future.
Nepal’s abundant hydroelectric resources position it as an ideal candidate for green hydrogen production. With over 40,000 megawatts (MW) of hydroelectric potential, the country can leverage this clean energy to generate hydrogen. Till now, Nepal has produced 2,800 MW of electricity from hydropower and is expected to produce 15,000 MW by 2030 and 30,000 MW by 2035. This opens the door to various applications, including the production of green hydrogen, which contributes to reducing Nepal’s carbon footprint while supporting its energy needs and economy.
Moreover, green hydrogen presents export opportunities for Nepal. If the country can produce excess green hydrogen, it can become a valuable resource for neighboring countries seeking clean energy solutions. The sale and export of green hydrogen can be easily expanded to several countries, in addition to India and Bangladesh, which are considered hydropower markets only. This could provide an economic boost and position Nepal as a regional leader in green hydrogen production and technology.
Despite the numerous benefits of green hydrogen, several challenges must be addressed for its widespread adoption in Nepal. Infrastructure development is one of the primary hurdles. Establishing hydrogen production, storage and distribution facilities requires significant investment and technical expertise. The cost of building this infrastructure can be high. The cost of green hydrogen will be high due to being more expensive to produce than gray hydrogen, mainly due to the high costs associated with renewable energy and electrolysis technology. However, these costs are expected to decrease as technology advances and economies of scale are achieved.
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