Shovana Maharjan
Transport accounts for around one-fifth of global carbon dioxide (CO2) emissions. The World Resource Institute’s Climate Data Explorer provides data that in 2016, global CO2 emissions (including land use) were 36.7 billion tonnes CO2; emissions from transport were 7.9 billion tonnes CO2. Transport therefore accounted for 7.9 / 36.7 = 21% of global emissions. Almost all (95%) of the world’s transportation energy comes from petroleum-based fuels, largely gasoline and diesel. Globally, around one-third of carbon emissions is contributed by the transport sector in recent times. In Nepal also, transport-related emissions make up the second-largest energy-related carbon emission. Hence, the transport sector has become one of the significant contributors to the increase in urban air pollution, along with increased dependency on petroleum import, Nepal’s trade deficit, road fatalities, and growing socio-economic and public health costs.
The statistics of the Department of Customs shows that Nepal imported petrol, diesel, liquefied petroleum gas, aviation fuel, kerosene, fuel oil and lubricating oil worth NRs 214.48 billion (approximately 1.9 billion USD) in 2018-19. To address carbon emissions, urban air pollution, and the reliance on imported fossil fuels, Nepal needs to move to decarbonize its transport system. Electrifying the transport system is the key to transport decarbonization – in this electrification, renewable energy would play a significant role. Nepal has the opportunity to achieve its Sustainable Development Goals (SDGs) and climate commitments, strengthen the economy, and improve the quality of life by moving away from fossil fuel-dependent transport regimes, increasing energy security and prioritizing the most efficient mobility system with the electrification of the transport system.
The second or revised Nationally Determined Contribution (NDC) by Nepal was communicated to the United Nations Framework Convention on Climate Change (UNFCCC) in December 2020. By that, Nepal has committed to increasing the sales of all-electric private passenger vehicles including two-wheelers by 25% by 2025 and increasing the sales of all-electric four-wheeler public passenger vehicle sales by 20% by 2025. Similarly, by 2030, sales of all private passenger vehicles including two-wheelers will be increased by 90%, and that of all four-wheeler public passenger vehicles by 60%. The country has also committed to constructing 200 km of the electric rail network.
In order to meet these commitments, the Government of Nepal has included some special provisions for promoting e-vehicles in its budget for the financial year 2021/22. The government is planning to purchase a minimum of 100 electric vehicles and install 500 charging stations across the country with the involvement of the private sector. Also, the government has forwarded its plan to displace all light vehicles which are run with petrol by electric vehicles by 2031. Upon the conversion of petroleum-powered vehicles to electric ones, the government will be providing a discount on registration fees and road tax for five years for electric vehicles. It will be charging no excise duty and reduced custom tax for e-vehicles. The government has allocated about NRs. 10.03 billion for the railway development. While on paper, the policies and plans sound very good but the problem lies in their implementation. If real changes should happen, the policies and plans have to be implemented. For this, the government needs to analyze the current situation and take all the concerned stakeholders’ voices into consideration, without letting the documents gather dust awaiting implementation endlessly.
In this context, Prakriti Resources Centre (PRC) and WWF Nepal organized a webinar on “Nepal’s Pathways to Decarbonizing the Transport System” on 15 July 2021 to discuss the need for decarbonizing transport, opportunities, challenges, and the way forward. The discussion in the webinar centered around the current scenario of transport development, policies and plans, and Nepal’s efforts for promoting electric and sustainable transport and sharing international best practices that Nepal can learn from.
Mr. Prashant Khanal, Urban Mobility Expert and the lead presenter, shed light on different aspects related to the possibility of promoting e-mobility in Nepal. Between 2011 and 2016, he said, Nepal’s road-transport CO2 emissions grew by 113%, adding that Nepal is one of the top 10 countries where transport emissions are projected to see a sharp increase from 2010 to 2050. The country is experiencing a rapid growth of motor vehicles run by petroleum. He informed the participants that in the Kathmandu Valley alone, while the share of walking and cycling has sharply plummeted, that of private vehicles has increased significantly from 13% in 1991 to 30% in 2011, and the share of public transport has remained static. Given these circumstances he stressed the need for Nepal to embark on the path of decarbonizing its transport system. The transformation of our transportation should not be just about reducing emissions, it should also address inequality in mobility access, road safety, and the causes and effects of traffic congestion in order to create just mobility systems. Electrifying Nepal’s transport system leads to hugely increased electricity demand. Increasing the share of renewable energy (solar, biogas, wind) in the country’s energy mix is essential to meet the future electricity demand and make the energy system resilient.
Subscribing to the views of the lead presenter, Mr. Bhusan Tuladhar, Environment Expert in the Sajha Yatayat Board, described the promotion of e-mobility as the best option for decarbonization. He emphasized the need for promoting public e-transportation by discouraging the use of private vehicles. However, he said, the budget for the financial year 2021/22 has no provision that facilitates the promotion of public transportation. Speaking of the need to expedite systematic reformation combined with the assurance of return on the initial investment to attract the private sector, Mr. Tuladhar pointed out that domestic finance like from the pollution tax on petrol would be enough if the government sincerely plans to mobilize available resources in promoting public e-transportation.
Representing the private and financing sectors, Mr. Dinesh Dulal, Head of Energy Department in the NMB Bank Ltd. stressed the need for consistency in policies and practices and the need for minimizing the initial cost through subsidies to convince the private sector of the promotion of e-transportation. He also suggested that the government should formulate appropriate policies and develop an investment-friendly e-vehicle sector in which the financing institutions become confident to invest. Prof. Dr Rejina Maskey furthermore also highlighted the importance of converting public vehicles into electric ones as 35% of petroleum imports and emissions are occurring due to public vehicles.
Presenting a different perspective, Ms. Shristina Shrestha who is an Urban Planner, opined that while decarbonization focuses on aspects as city planning and urban design with more cycling lanes and walkways, it equally demands that social and gender considerations are taken into account in the process. Mr. Shyam Sundar Sapkota, Provincial Transport Operation and Management Board Member of the Bagmati Province informed the webinar participants that the provincial government is planning to gradually displace the petrol-based vehicles by 2031. In the budget of 2021/22, he said, the provincial government has announced its decision to promote a public-private partnership for the promotion of an electric mass transit system.
The webinar concluded the necessity of promoting the public e-vehicle as public vehicles are the major emitters. The private sector engagement in promoting public e-vehicles should be encouraged through favourable policies and fair incentives by the government. While expressing its commitment to achieving the ambitious targets in the NDC, the government is also trying to fulfill the commitments which are reflected in the new policies and provisions of the recently announced budget and provincial plans, too. Of equal importance are necessary infrastructure like charging stations, roads, quality assurance of the vehicles, and most important is the provision of an adequate, and reliable supply of energy through the energy mix approach.
