Nepal is a landlocked country, located in highly rugged and mountainous terrain facing complex development challenges. Political instability in a period of transition combined with recurring natural disasters, including those related to climate variability and change, form a key barrier to social and economic development in Nepal. Despite these challenges, Nepal envisages becoming a lower middle-income country (LMIC), graduating from its status as Least Developed Country (LDC) by 2022, and to be an active player in the international community on climate change. Domestically, Nepal plans to adopt a Strategy of Low Carbon Economic Development and is actively pursuing climate change adaptation. To be able to fully realize its potential, this requires a strong and meaningful paradigm shift from an economy degrading the country´s natural assets to an economy embracing the principles of sustainability, competitiveness, and social inclusion. Green growth offers a development model to realize this paradigm shift.
To support the Government of Nepal (GoN) in building a solid analytical foundation for defining areas relevant to green growth, this report presents the results of conducting the Green Growth Potential Assessment (GGPA). It provides guidance for policymakers on the appropriate interventions in the context of Nepal´s broader development landscape.