GGGI and Government of Nepal publish National Action Plan for Electric Mobility to support NDC implementation

The Ministry of Forests and Environment prepared Nepal’s Nationally Determined Contribution (NDC) in 2016, by gathering targets, strategies and policy goals from across the federal government to produce an ambitious and multi-sectoral contribution. However, since the submission and adoption of Nepal’s NDC, implementation has been limited.

Of the fourteen targets in the NDC, four focus on climate change adaptation; three focus on energy sources and supply; two address the forestry sector; one addresses multi-sectoral mitigation; and four address the transport sector. These four transport targets are outlined below.

  • NDC Target 9: By 2020, Nepal aims to increase the share of electric vehicle up to 20% from 2010 level.
  • NDC Target 10: By 2050, Nepal will decrease its dependency on fossils in the transport sector by 50% through effective mass public transport means while promoting energy efficient and electrical vehicles.
  • NDC Target 11: Nepal will develop its electrical (hydro-powered) rail network by 2040 to support mass transportation of goods and public commuting.
  • NDC Target 14: By 2025, Nepal will strive to decrease the rate of air pollution through proper monitoring of sources of air pollutants like wastes, old

In 2017, the Global Green Growth Institute (GGGI) Nepal Office began working with the Ministry of Forests and Environment to develop a focused, sectoral implementation plan of the NDC. Given this strong focus on transport, and the willingness of the Ministry of Physical Infrastructure and Transport to pursue these targets through focused efforts, GGGI supported the Government of Nepal to develop a National Action Plan for Electric Mobility.

The National Action Plan for Electric Mobility supports implementation of Nepal’s NDC targets for the transport sector by reviewing Nepal’s NDC and related policy (Part 1); exploring the transport sector and most effective policy options for increased adoption of electric vehicles (Part 2); identifying a wide range of barriers and issues that are currently restricting greater adoption of electric mobility (Part 3); and outlining key proposed actions and initiatives for overcoming these barriers (Part 4). As well as quantitative analyses, the action plan is the result of an intensely participatory process, drawing on numerous interviews and focus group discussions with government bodies, non-government organizations, consumers and the business and research communities.

In particular, the National Action Plan for Electric Mobility proposes three high priority actions, which include:

  • Establishing a Unit for Electric Mobility – This unit will act as a centralized regulatory and promotional entity providing oversight to financial and programme initiatives – The proposed unit could be established either as a unit within an existing government entity, or as a quasi-independent government entity (taskforce or center, for example) answerable to a board comprised of government, business and citizen representatives. The fundamental mandate of the unit would be the promotion of electric mobility across relevant transport systems in Nepal, in line with national policy, and well as to provide oversight on the proposed program and financing vehicle for electric mobility.
  • Launching a National Program for Electric Mobility – This program will facilitate public and private acquisition of electric vehicles, invest in infrastructure, push for operational progress and refine legislation – The proposed program would comprise a suite of regulatory, institutional, financing and legislative measures designed to collectively provide focused support to boost electric vehicle adoption in Nepal. The program would proactively and comprehensively address the barriers identified above, with a focus on progressing within the infrastructure and markets space. The program would include measures to support consumer and government acquisition of electric vehicles, measures to support investment in construction of charging stations and measures for the legislative changes required for greater electric vehicle adoption, and build market awareness.
  • Establishing and capitalizing a National Financing Vehicle – This fund will manage and disburse financial support to promote infrastructure, innovation and entrepreneurship for electric mobility – The proposed financing vehicle will boost business and industry activity and investment in electric mobility and electric vehicles. Part of the role of the financing vehicle will be to signal strong and consistent commitment from government to the market, reassuring entrepreneurs and investors. Through its funding and co-funding decisions the financing vehicle will also help to put in place the necessary facilities and infrastructure for widespread electric vehicle adoption.

The GGGI Nepal Office is working with the Government of Nepal and other partners to implement these priority actions and develop concrete projects to speed up Nepal’s NDC implementation, and foster green growth.