Country Environment Note: Nepal - Asian Development Bank · Nepal Country Environment Note Mandaluyong City, Philippines: Asian Development Bank, 2014 The views expressed in this

COUNTRY ENVIRONMENT NOTENEPAL

COUNTRY ENVIRONMENT NOTENEPAL

The CEN was prepared by Deepak B Singh, Senior Environment Officer, Nepal Resident Mission, South Asia Department, Asian Development Bank, with the technical support of Shree Govind Shah, Environment Consultant.

Asian Development BankNepal Country Environment NoteMandaluyong City, Philippines: Asian Development Bank, 2014

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for or any consequence of their use.

By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

Cover photo: ADB, 2014

Asian Development Bank6 ADB Avenue, Manila, PhilippinesTel +63 2 632 4444Fax +63 2 632 2444www.adb.org

COUNTRY ENVIRONMENT NOTE: NEpal iii

CONTENTsForeword vAbbreviations vii

1. State of the Environment 1A. Geopolitical and Macroeconomic Context 1B. Nepal’s Environment and its Changing Conditions 2 2. Government Priorities for Sustainable Development 15A. Government Priorities and Commitments 15B. Nepal Millennium Development Goals 16C. Sector Policies, Strategies, and Plans related to Environmental Sustainability 16D. Institutional Development 17E. Financing for Environmental Activities 20 3. Support by Development Partners in Environmental Safeguards 21A. ADB’s Support to Nepal for Sustainable Development 21B. Support by Other Development Partners 22 4. Achievements, Key Issues, and Challenges 23A. Achievements 23B. Key Issues and Challenges 24

5. Recommendations 27A. Environmental Policy and Governance 27B. Environmentally Sustainable Infrastructure Development 27C. Natural Resources and Biodiversity Conservation 28D. Climate Change 29E. Disaster Risk Management 30F. Knowledge Management 30

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AppendicesAppendix 1. Physiographic Regions in Nepal 31Appendix 2. Ecological Zones in Nepal 31Appendix 3. Land Use in Nepal 32Appendix 4. Forest Area in Nepal 33Appendix 5. Changes in Population and Agriculture Area in Nepal 34Appendix 6 Protected Areas of Nepal 35Appendix 7 Government Restrictions on the Harvest and Sale of Plant and Tree Species in Nepal 36Appendix 8 Road Network in Nepal 36Appendix 9 Vehicle Registration in Nepal 37Appendix 10 Energy Consumption in Nepal 38Appendix 11 Emission of Air Pollutants in Nepal 39Appendix 12 Emission of Pollutants from Total Energy Used in 1999/2000 in Nepal 39Appendix 13 Greenhouse Gas Emissions in Nepal 40Appendix 14 Temperature Trends in Nepal 41Appendix 15 Seasonal and Annual Precipitation in Nepal 43Appendix 16 Disasters Causing Loss of Life and Property in Nepal 44Appendix 17 Nepal Millennium Development Goals 45Appendix 18 Regulatory Mechanisms Safeguarding the Environment in Nepal 48Appendix 19 Policies, Strategies, and Plans Related to Environmental Sustainability in Nepal 49Appendix 20 Ministries and Agencies with Environmental Responsibilities in Nepal 50Appendix 21 ADB-funded Projects in Nepal 51Appendix 22 UNDP-supported Projects with Environmental and Climate Change Components in Nepal 55Appendix 23 World Bank-supported Projects with Environmental and Climate Change Components in Nepal 56Appendix 24 DFID-supported Projects with Environmental and Climate Change Components in Nepal 58Appendix 25 Nepal Environmental Standards and Guidelines 60

COUNTRY ENVIRONMENT NOTE: NEpal v

FOREwORdEnvironment protection and conservation in the process of development is particularly of high relevance in Nepal. The country is one of the prime biodiversity hotspots of the World. With highly fragile and young mountain geology, Nepal exhibits a broad range of diversity–topography from sea level to the tallest peak in the World, precipitation from arid rain shadow areas to highly flood prone plains, and environment from glacial to tropical ecosystems. The diversity provides immense opportunities as well as challenges in attaining environmentally sustainable growth. The natural and human related activities have been causing rapid environmental degradation and loss of biodiversity. The phenomenon of global warming and impacts of climate change, and increasing frequency and magnitude of natural disasters have become a formidable threat in achieving sustainable development and protecting livelihood of millions of people.

Nepal is in the state of economic transition experiencing increasingly resource-intensive growth. It is characterized by rapid urbanization, changing consumption by a fast rising middle class, expanding production patterns, and demand for infrastructure. The economic and environmental challenges hasve had impacts on the people. Rising air and water pollution, waste generation, worsening water stress, and increasing natural disasters are all threating sustainable development and poverty reduction. Only respite from the challenge is by adopting environmentally sound and climate friendly development works based on informed policy making and planning.

ADB has recently conducted Midterm Review (MTR) of Strategy 2020: Meeting the Challenges of a Transforming Asia and the Pacific. In line with the recommendations of the MTR, ADB is committed to support DMCs to perceive the risks and prepare proper mitigation measures to minimize environmental degradation, reduce greenhouse gas emission, and avoid social, economic and environmental damages while carrying out the development activities. ADB’s Nepal Country Partnership Strategy 2013-2017 (CPS) has considered sustainable environmental development as one of its thematic drivers of change. CPS focuses on mainstreaming environmental safeguards in investments and aims to extend support in disaster and climate change risk management.

This Country Environment Note (CEN) summarizes the state of environment of Nepal and brings together the information on environment, climate change and disaster risks under a single publication. It is based on secondary information with triangulation and verification with relevant stakeholders encompassing government, non-government, development partners and academicians. This publication is aimed to provide consolidated information for policy-makers, planners and implementers to adopt environmentally sound development activities. The Note is also expected to be a reference material for academicians and other related stakeholders.

Kenichi YokoyamaCountry DirectorNepal Resident MissionSouth Asia Department, Asian Development Bank

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Currency Equivalents(as of 1 December 2014)

Currency Unit - Nepalese Rupees (NRs)NRs1.00 = 0.0101162867$1.00 = 98.850500

Weights and Measures°C - degree Celsiusµg - microgramcm - centimeterg - gramGg - Giga gramGt - Giga tonha - hectare kg - kilogramkm - kilometerkW - kilowattkm2 - square kilometerl - literm - metermg - milligramml - millilitermm - millimetermS - milliSiemensMW - megawattMWp - megawatt peakm3 - cubic meterWp - watt peak

NOTESIn this report, “$” refers to US dollars.

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AbbREVIATIONsADB Asian Development BankADF Asian Development FundAEPC Alternative Energy Promotion Centreamsl above mean sea levelBCM Billion Cubic MeterBS Bikram SambatCEN Country Environment NoteCFUG Community Forest User GroupCPS Country Partnership Strategy DANIDA Danish International Development AgencyDFID Department for International Development (UK)DFRS Department of Forest Research and Survey DHM Department of Hydrology and MeteorologyDNPWC Department of National Parks and Wildlife ConservationEIA Environmental Impact AssessmentEPA Environment Protection ActEPC Environment Protection CouncilEPR Environment Protection RulesEU European Union FINNIDA Finnish International Development AgencyGDP Gross Domestic ProductGHG Greenhouse GasGIZ German Federal Enterprise for International CooperationGLOF Glacial Lake Outburst FloodGON Government of NepalICIMOD International Centre for Integrated Mountain DevelopmentICT Information and Communication TechnologyIEE Initial Environmental ExaminationIFRC International Federation of Red Cross and Red Crescent SocietiesIPCC Intergovernmental Panel on Climate ChangeIUCN International Union for the Conservation of NatureJICA Japan International Cooperation AgencyLAPA Local Adaptation Plan of Action LDC Least Developed CountryLRMP Land Resources Mapping ProjectMAP Medicinal and aromatic plantMCCICC Multi-stakeholder Climate Change Initiatives Coordination Committee

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MDG Millennium Development GoalMFALD Ministry of Federal Affairs and Local Development MLRM Ministry of Land Reforms and ManagementMOAD Ministry of Agricultural DevelopmentMOE Ministry of EnergyMOFSC Ministry of Forest and Soil Conservation MOHA Ministry of Home AffairsMOI Ministry of IndustryMOIrr Ministry of IrrigationMOLD Ministry of Local DevelopmentMOPH Ministry of Population and HealthMOSTE Ministry of Science, Technology and EnvironmentMOUD Ministry of Urban DevelopmentMPPW Ministry of Physical Planning and WorksMPIT Ministry of Physical Infrastructure and TransportNAPA National Adaptation Program of Action NEA Nepal Electricity AuthorityNEPAP National Environmental Policy and Action PlanNGO Non-governmental OrganizationNPC National Planning CommissionNPWC National Parks and Wildlife ConservationNRRC Nepal Risk Reduction ConsortiumNTFP Non-timber forest productOCHA Office for the Coordination of Humanitarian AffairsPEI Poverty Environment Initiative PM Particulate MatterSDAN Sustainable Development Agenda for NepalSDC Swiss Agency for Development and CooperationSEA Strategic Environmental Assessment SLCP Short-lived Climate PollutantSPCR Strategic Program for Climate ResilienceSWM Solid Waste ManagementTA Technical AssistanceTSP Total Suspended ParticlesTSS Total Suspended SolidsUNDP United Nations Development ProgrammeUNEP United Nations Environment ProgrammeUNESCO United Nations Educational, Scientific and Cultural OrganizationUNISDR United Nations International Strategy for Disaster ReductionUSAID United States Agency for International DevelopmentWECS Water and Energy Commission SecretariatWFP World Food ProgrammeWHO World Health Organization

COUNTRY ENVIRONMENT NOTE: NEpal 1

A. Geopolitical and Macroeconomic Context

1. Nepal is a landlocked, predominantly mountainous country bordered by China to the north and India to the south, east, and west. It has an area of 147,181 km2 and its rectangular proportions measure on average 885 km in length and 193 km in breadth. Administratively, the country is divided into five regions and 75 districts across three broad physiographic regions: (i) the southern Terai plains, with 20 districts that cover 23% of its area, (ii) the Mid-Hills, with 39 districts that cover 41.8%, and (iii) the northern Mountains, with 16 districts that cover 35.2% of area. In 2013, Nepal had a population of 27.2 million. Nominal per capita Gross Domestic Product (GDP) grew from $498 in 2009 to $713 in the year 2013/14.

2. Development planning in Nepal began with the formulation of the first Five Year Plan in 1956. Monarchial system governed the country until the People’s Movement in 1990 re-instated a multiparty democratic system. Limited progress was made during this period in the areas of transportation, communications, health, irrigation, drinking water, and literacy. Between 1964/65 and 1989/90, the annual average growth in GDP was 3.4%, with agriculture and non-agriculture growth averaging 3% and 3.8%, respectively.1

3. Economic growth has failed to pick up, stagnating below 5% since 1990, and is supported largely

by remittance-induced consumption demand in the services sector, and the monsoon-dependent agricultural sector. GDP growth averaged 4.5% over 2007–2014, far lower than the economy’s potential, as a severe energy crisis, a dilapidated and inadequate road network, labor disputes, and poor governance hampered the industrial sector. Consequently, the lack of sufficient employment opportunities has led to significant out-migration, which peaked at 527,814 (a daily average of 1,446 persons) in 2013/14 from a low of 2,159 in 1995/96 (a daily average of 6 persons). Remittance inflows increased drastically, reaching 28.2% of GDP in 2013/14, up from 1.7% of GDP in 1995/96.

4. Nevertheless, over the last two-and-a-half decades, Nepal has made considerable progress in reducing absolute poverty. The overall poverty rate has been reduced gradually, from 41.8% in 1995/96 to 25.2% in 2010/11. The Millennium Development Goal (MDG) target of reducing the poverty level to 21% by 2015 appears achievable. With the reduction in poverty, the poverty gap has halved and the inequality gap has narrowed. The Gini coefficient fell from 41.4 in 2003/04 to 32.9 in 2010/11. Nepal’s decline in poverty has been driven by: (i) significant increase in remittances; (ii) increased wage rates in agricultural and non-agricultural sectors; (iii) increased access and connectivity; (iv) urbanization; and (v) increased proportion of active human resources in the population.2,3 However, the country continues to face regional, rural-urban, and social disparities.

sTATE OF THE ENVIRONMENT

1 Government of Nepal, National Planning Commission. 1992. The Eighth Plan 1992-1997. Kathmandu.2 Government of Nepal, National Planning Commission. 2007. Three Year Interim Plan (2007/08-2009/10). Kathmandu.3 World Bank. 2008. Strengthening Institutions and Management Systems for Enhanced Environmental Governance, Report No. 38984-NP 2008. Kathmandu.

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COUNTRY ENVIRONMENT NOTE: NEpal2

Poverty incidence has a regional dimension: 42% of poor people live in the mountains and 23% in the Terai, and over half the population in Nepal lives in mountainous region. Poverty among socially disadvantaged groups is significantly higher than the national average. The country is likely to achieve the majority of the MDG targets, including those on education and child and maternal mortality, but more concerted efforts are required in areas such as generating productive employment, increasing access to sanitation, and reducing malnutrition, particularly if the country has to achieve its overarching goal to graduate from the category of least developed country (LDC) to that of a developing country by the year 2022.

5. Nepal’s unique geological setting, rich natural resources, abundant water, fertile lands, and cultural diversity form a sound basis for the socio-economic development of the country. However, sustainable use and management of these resources has been the main challenge. Even the modest economic growth achieved in past decades has come at a high environmental cost. Soil erosion and degradation, declining soil fertility, Nepal’s monsoon-dependent agriculture, the unsustainable use of fertilizers and pesticides, as well as increasing temperatures, variation in precipitation, and frequency and intensity of droughts and floods has reduced agricultural production,4 affecting the 76% of households dependent on agriculture.

6. Despite these constraints, Nepal has the potential to deliver higher and more inclusive growth by properly utilizing the large amount of water available for generating hydropower and irrigation, processing its abundant medicinal herbs, and promoting tourism. Agriculture has high potential if productivity is increased and transformed into commercial high value products. However, tapping into the country’s growth potential requires addressing the binding constraints, such as cutting the high infrastructure deficit, establishing political stability, providing an industry-friendly environment, controlling labor

market rigidities, and rolling out fundamental structural reforms conducive to attracting foreign investment.5

7. Nevertheless, Nepal’s GDP growth pattern has thus far been minimally damaging to the environment, as the industrial sector’s contribution to growth has been relatively low, at one-tenth of overall growth. The service sector's contribution has been the largest, but a majority of the goods it uses are manufactured outside Nepal and imported for consumption, which is mostly financed by remittance incomes. The contribution of the agriculture sector to GDP growth is dependent on monsoon rains, supplementary irrigation, and timely availability of agricultural inputs, most notably seeds and chemical fertilizers. As investments are ramped up to generate increased electricity, develop infrastructure, and expand manufacturing activities in the short to medium term in order to achieve higher growth rate and create jobs, a key challenge would be to ensure that these activities are environment-friendly so that the resulting growth is not only high and inclusive, but also sustainable. Otherwise, haphazard construction of infrastructure— including roads, water supplies, irrigation, and hydropower plants—without necessary due diligence for environmental sustainability, may result in high socio-economic costs to the country in the long run. In addition to these economic activities, traditional agricultural practices also need to transform, moving towards commercial and high value agriculture.

B. Nepal’s Environment and its Changing Conditions

1. Physical Environment

a. Land Resources8. Nepal, located in the Central Himalaya, has five physiographic regions. From south to north, these are the Terai flatlands (below 500 m), Lower Hills (Chure or Siwalik, between 500–1,000 m), Middle Mountains (1,000–3,000 m), High

4 JICA. 2012. Review of Food Production and Agriculture in Terai – JICA’s Support Strategy. Kathmandu.5 ADB/DFID/ILO. 2009. Nepal: Critical Development Constraints (Country Diagnostics Studies). Manila.


High Himal

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Mountains (3000–5,000 m), and High Himalaya (above 5,000 m). The lowest elevation is 60m amsl at Kechana Kalan in Jhapa District of the eastern Terai, and the highest is the peak of Mount Everest at 8,848m amsl in the north. The Terai comprises 14.3% (21,104 km2) of the total land area of the country. Over 82% of the country’s land is considered mountainous, while just over 3% are valleys and elevated plains (Appendix 1).6

There is considerable heterogeneity within each physiographic region—in particular the valleys of the Siwalik (Dun valleys), tropical valleys and elevated plains of the Middle Mountains, sub-tropical valleys of the High Mountains, and the dry Trans-Himalayan area of the High Himalaya. The Terai includes the southern plains and the foothills of the Siwalik, with a tropical to sub-tropical climate. The Middle Mountains have warm to cool temperate monsoons. The High Mountains have a cool temperate to sub-alpine climate. The High Himalaya has an alpine to tundra-type climate (Appendix 2).7 Settlements are mostly in the tropical, sub-tropical and temperate zones. People use Trans-Himalayan and sub-alpine areas for grazing their transhumant livestock and for collecting natural resources for domestic and commercial purposes.

9. The remarkable differences in climatic conditions are due to the rapid change of altitude within a short north-south distance, averaging 193 km. Nepal is made up of eight ecological zones: (i) lower tropical, (ii) upper tropical, (iii) sub-tropical, (iv) temperate, (v) sub-alpine, (vi) alpine, (vii) Trans-Himalayan, and (viii) Nival/arctic (Appendix 2). The tropical and sub-tropical zones occupy 58% of the country’s area, and the temperate, sub-alpine, alpine, Trans-Himalayan, and Nival zones occupy 12%, 9%, 8%, 8%, and 5% respectively.

10. Lying north of the Himalayan range, the Trans-Himalayan Zone is a rainshadow area with arid and semi-arid valleys, and low temperature stress. It has a mean annual temperature of 6.5°C, moisture-deficient annual precipitation of 157–339 mm,8 and dry winds and a high evaporation rate that causes desertification. Settlements can

be found up to 4,500 m in this zone. Natural vegetation is scarcely available, being limited to Caragana-Lonicera steppe-spiny shrubs and occasional trees, and is heavily exploited for domestic use and for grazing by mountain goats, accelerating the desertification process.

b. Land Use and Land Quality11. The Land Resource Mapping Project (LRMP), which surveyed the land use pattern of the country in 1978/79, indicated that 42.8% of its area was forest and shrub land, 20.1% was agricultural land, 11.9% was grassland, 13.2% was rocky area, 3.5% was comprised of water bodies and snow, and 8.5% comprised other land types (Appendix 3). Rivers, lakes, reservoirs, ponds, and marshlands are categorized as wetlands, which cover 416,563 ha of the country.9 No land surveys have been carried out since then to reassess the changes in land use patterns, though a national forest inventory was prepared in the early 1990s and a National Agriculture Census has been carried out every decade since 1961, which takes account of cultivated and arable land. In 2012, the government initiated a National Land Use Project, which in four to five years is expected to update national land use data.10

12. Land degradation is a problem in all geographical areas of Nepal. Water-induced erosion, landslides,

Figure 1. Physiographic Regions of Nepal

6 Government of Nepal. 1986. Land Resource Mapping Project. Kathmandu; Carson and Sharma. 1992. Nepal.7 Lilleso et al. 2005.8 R. P. Nayaju and J. P. B. Lilleso. 2000. Nation-wide Climatic Tables. Database at HMG/Danida. Kathmandu.9 Government of Nepal, Central Bureau of Statistics. 2008. Kathmandu. 10 Government of Nepal, Ministry of Land Reform and Management. National Land Use Project. www.nlup.gov.np

Source: Soil Science Division, NARC


surface exposure, wastage of topsoil, riverbank cutting, floods, silt deposition, water logging, deforestation, and wind erosion are the major causes of land degradation. In 2008, about 45.4% (6.7 million ha) of the country’s total land area was affected by water-induced erosion and about 4% (0.6 million ha) by wind erosion.11 The area affected by floods is estimated to be 8,987 km2, and the area affected by waterlogging is estimated to be 7,297 km2.12 Inundation and waterlogging in the Terai plains bordering India have increased due to the embankment of elevated highways and irrigation dykes constructed both within and across the border.13

13. Overall watershed conditions are deemed poor in the Siwalik and Middle Mountains, which together make up 43% of the country’s total land area. These areas are highly susceptible to water-induced erosion and as a result their physical and biological status is diminishing and their productive capacity is declining.14 The national sample census of agriculture in 2011/12 indicated that 2.4% of cultivable land had been rendered uncultivable due to flood and erosion.

c. Water Resources14. Nepal possesses 2.27% of the world’s freshwater resources.15 Around 6,000 rivers and rivulets with a total drainage area of 194,471 km2 flow north to south to drain into the River Ganges in India, contributing 47% of its monsoon flow. About 76% of the total drainage area of these rivers lies within Nepal, with the rest in China. Perennial rivers originating in the High Himalaya region such as the Koshi, Gandaki, Karnali, and Mahakali Rivers carry snowmelt and precipitation flows with significant discharge. Rivers such as the Mechi, Kankai, Kamala, and Babai originate in the Middle and High Mountains and are fed by precipitation as well as groundwater. They are characterized by wide seasonal fluctuations. Rivers originating from the Siwalik are seasonal with little flow during the dry season, and flash floods during the monsoon. The ratio of wet (June–October) to dry period (November–May) discharge in the rivers in the Terai is in the range of 8 to 14, indicating limited amounts of water in the rivers during the dry season.16 Upstream water resources development in the Koshi and Mahakali Rivers—which are transboundary snow-fed rivers—would affect their discharge in Nepal, as only 34% and 46% of the total catchment area of these rivers, respectively, lie in Nepal.17

15. The annual water flow in all the rivers of Nepal is about 220 billion m3 (BCM), of which only 15 BCM (6.9%) is utilized. The per capita renewable water resource was 9,600 m3 per year in 2001 while annual withdrawal was only 800 m3 (8.4%).18 In most of the parts of the country, there is an acute shortage of surface water for all purposes in the dry season. The lack of infrastructure has restricted the withdrawal potential. The rivers in the Siwalik and Middle Mountains have been partially dammed at several places for irrigation, with a total command area of 0.96 million ha in the wet season.19

Figure 2. Uncultivable land due to flooding/soil erosion (% of total land)

11 Government of Nepal, Central Bureau of Statistics. 2013. Environment Statistics of Nepal 2013. Kathmandu.12 http://www.dscwm.gov.np/land_degradation_problems_nepal.html13 D. N. Dhungel, S. B. Pun and B. R. Adhikari. 2009. Inundation at the Southern Border. The Nepal–India Water Relationship: Challenges. IIDS.

Kathmandu. pp. 269–93.14 ADB/ICIMOD. 2006. Environment Assessment of Nepal: Emerging Issues and Challenges. Kathmandu.15 J. Shrestha. 2013. Biological diversity and conservation. Kathmandu.16 S. G. Shah and G. Singh. 2001. Irrigation Development in Nepal: Investment Efficiency and Institutions. Winrock International. Kathmandu.17 Government of Nepal, Water and Energy Commission Secretariat. 2002. Water Resources Strategy Nepal. Kathmandu.18 ADB/ICIMOD. 2006; Government of Nepal, Water and Energy Commission Secretariat. 2004. National Water Plan. 2005. Kathmandu.19 Government of Nepal, Department of Irrigation, 2007. Development of Database for Irrigation in Nepal. Kathmandu.

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16. In the past four decades, rivers in the Middle Mountains have been dammed, mostly for generating electricity. The country has the techno-economic potential of generating 43,000 MW of hydropower. However, it has only 717 MW of installed capacity, and just 6 hydropower projects totaling 592 MW are under construction. Nepal is facing chronic electricity shortages due to the significant gap between supply and demand, which is growing at a rate of 10% per annum. Only 5,423,297 households have access to grid electricity (CBS 2011), and electricity supply is interrupted for 14–18 hours a day during the dry season. The lack of a high capacity transmission line with India is a bottleneck for transmitting energy to meet domestic electricity demand.

17. The government, in partnership with communities, the private sector, and development partners, had installed the following by 2012: micro-hydropower plants (40 MW installed capacity; potential 100 MW), solar photovoltaic home systems (329,000 units equivalent to 7.3 MW peak, or MWp, taking the average size of a solar home system to be 45 Wp), biogas plants (280,000 units; potential 1.9 million), improved cooking stoves (739,000 units; potential 2.5 million), improved water mills (9,015 units; potential 30,000), and windpower plants (10 kW; potential 3,000 MW). About 74.2% of energy requirements are met by fuelwood, 6% by animal dung, 13% by fossil fuel, and 3% by hydropower and renewable energy. Women in rural areas spend hours collecting fuelwood, and girls are kept from going to school carrying out chores such as collecting fodder and fuelwood and fetching water.20

18. Nepal possesses 12 BCM of groundwater, of which 5.8 BCM can be extracted annually without any adverse effects, and is available both in shallow and deep aquifers. Despite this, groundwater extraction is only 0.756 BCM for irrigation and 0.297 BCM for domestic use,21 which is 17.8% of the potential. Groundwater is abundant and underutilized in the Terai, whereas over-extraction of groundwater has depleted the groundwater table in the Kathmandu Valley.

19. Degradation of watersheds, deforestation, destruction of recharge areas due to urbanization, and the impacts of climate change are having adverse effects on the recharging of groundwater. As fetching water is one of the main responsibilities of women in rural areas, depletion of groundwater and the drying up of water sources (springs and wells) have direct impact on the hardships faced by women, as it can mean that they have to walk for several hours daily in order to fetch a bucket of water.

2. Pollution20. Total emissions of selected pollutants in the country were estimated to be over 63,000 tons in 1993. This increased five-fold by 2013. The existing systems of air and water quality monitoring are weak. Dust and vehicular emissions are the major air pollutants in urban areas. The situation is exacerbated by poor traffic management, poor vehicle maintenance, and the use of adulterated and sub-standard fuel. Burning of biomass is the major cause of air pollution in rural areas. Nepal annually uses 7.66 million tons of energy, of which fuelwood comprises 74.2% and petroleum products 9.5%. Fuelwood alone contributed 80%−94% of the total pollutants. In 1999/2000, burning of biomass constituted about 97% of the total energy used in the domestic

20 ADB. 2010. Overview of GESI in Nepal. Kathmandu.21 Government of Nepal, Water and Energy Commission Secretariat. 2005. National Water Plan. Kathmandu. 22 Government of Nepal, Central Bureau of Statistics. 2014. Environment Statistics of Nepal 2013. Kathmandu.

Figure 3. Energy consumption by sector 2009/10

Residential, 87%

Industrial, 4%Transport, 7% Commercial, 1%

Agriculture, 1%

static water Level (swL) and pumping water level (PwL) have depleted in the Kathmandu Valley as a result of overuse, lack of water conservation practices, and loss of recharge areas due to haphazard construction. while swL and PwL were 48.1 meters and 67.6 meters respectively in 1976 in the bansbari suburb of Kathmandu, it went up to 80.6 meters and 136.1 meters, respectively, by 1999.22


sector. Of this, fuelwood produced 89% TSP,23 77% CO2, 81% NOx, and 35% SOx. In 2000, Nepal produced 0.94 million tons CO2, 0.29 million tons of TSP, and 0.11 million tons of NOx and SOx. The ambient air quality measured in major urban areas indicates high levels of PM10 (196–2,104 µg/m3), TSP (260–2,222 µg/m3), and SO2 (85–140 ug/m3).24 The transport sector contributes the largest share of pollutants. The total number of vehicles in the country reached 1.13 million in 2010/11, with a density of 53 vehicles per kilometer of road. Although vehicles below the Euro III standard are restricted for import, the impact has been low due to weak monitoring and enforcement systems.

21. Particulate Matter (PM10 and PM2.5) is the dominant air pollutant in the Kathmandu Valley. Its concentration is observed to be higher at night during the winter, due to the creation of an inversion layer that acts as a blanket to trap pollutants. Kathmandu’s annual average air quality levels stand at 50 µg/m3 for PM2.5 and 114 µg/m3 for PM10.25 According to Yale University’s Environment Performance Index 2014, Nepal ranks 177th out of 178 countries for poor air quality.

22. Black Carbon is a short-lived climate pollutant (SLCP), the most significant contributor to global

warming after CO2 emissions. Reducing SLCPs would save the lives of millions of people who depend on traditional heating and cooking fuels, and also help improve food security.

23. Arsenic contamination in groundwater, which is used as drinking water, is a major problem in Terai, where over 50% of the country’s population reside. The World Health Organization (WHO) threshold for arsenic content in water is 10 µg/l. Tests carried out in the 25 Terai districts have indicated that in 13 districts, arsenic content ranges from 10–50 µg/l and in some areas this is even higher than 50 µg/l, placing 2 million people at risk.

24. Deteriorating urban water bodies are polluted by direct sewerage and industrial effluent discharge, dumping of solid waste, and nutrients from agro-chemicals from non-point sources. The rivers of the Kathmandu Valley are biologically dead. The government and development partners are making efforts to improve river environments and regenerate their cultural value.

25. Improper solid waste management (SWM) is a major problem in Nepal’s municipalities. The average household waste generation rate in the 58 municipalities of Nepal is 317 g/capita/day, which is 50%–75% of total municipal solid waste generation. Total solid waste generated in the 58 municipalities is estimated to be 1,435 tons/day, or 524,000 tons/year. Organic matter in the waste accounts for 66% in household waste and 43% in commercial waste. Only 6 municipalities dispose of waste in sanitary landfill sites. Municipalities spent an average of 10% of their total budget on SWM, of which 60%–70% is used in street sweeping, 20%–30% for transport, and the rest for final disposal of waste. In the absence of proper landfill sites, most municipalities (including Butwal, Birgunj, Janakpur, and Siddharthanagar municipalities) directly dump the collected waste in rivers, forests, or agricultural fields. There is no separate arrangement for managing hazardous and medical waste. Interventions including policy development, adoption of the 3R principle (reduce, recycle, and reuse), capacity building of local bodies, public-private partnerships, and awareness

23 Total Suspended Particles.24 Government of Nepal, Central Bureau of Statistics. 2008; IUCN.September 2001. Transport Sector Air Pollution Survey in Major

Urban Cities and Towns. Kathmandu.25 WHO. 2014. Ambient Air Pollution Database, http://edition.cnn.com/2014/05/08/world/asia/india-pollution-who (accessed 8

December 2014)

Figure 4. Annual mean concentration of particulate matter (PM2.5 and PM10) in μg/m3 in Asian cities

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generation among the public are needed to develop an effective SWM system.26

3. Biological Environment

a. Forest26. Forest area covers about 5.83 million ha (38.9% of the total land area) of the country. A recent study under the support of the Government of Finland has found 0.41 million ha (20.41%) of Terai and 1.37 million ha (20.41%) of Chure is covered by forest. Forests provide vital natural resources including fuelwood, timber, forage, medicinal and aromatic plants (MAPs), and non-timber forest products (NTFP). They also contribute to the protection of watersheds, act as carbon sinks, and provide support in the regulation of atmospheric conditions. Forest types in Nepal comprise tropical, sub-tropical broadleaved, sub-tropical pine, temperate broadleaved, temperate conifer, sub-alpine conifer, alpine scrub, and Trans-Himalayan steppe rangelands consisting of spiny dwarf shrubs.27 Forestry contributed 9.5% to GDP in 2008 with direct products and 27.5% of GDP in environmental services. Forests supply 78.14% of rural energy needs in the form of fuelwood (Ministry of Forest and Soil Conservation, 2008). Protected areas cover 19.4% of the total area of Nepal, with 10 national parks (1.08 million ha), 3 wildlife reserves (0.1 million

ha), 1 hunting reserve (0.13 million ha), and 6 conservation areas (1.54 million ha).

27. In recent times, forest areas have been encroached on as the main source for expanding farmland, settlement, and infrastructure development. Fuelwood used for cooking has gradually gone down from about 70% of the total households in 2003/0428 to 64.4% in 2010/11.29 Nevertheless, Nepal lost 2.72 million ha of forest with more than 10% crown cover between 1965 and 2013 with an average annual devegetation of 56,710 ha. Of this total area, 1.76 million ha was degraded to shrub land (Table 1).30 Altogether, 0.96 million ha of total forest and shrub land is estimated to have been lost to farming, urban expansion, and infrastructure development, or left barren. Climax shrub vegetation exists in the Trans-Himalayan zone and alpine zone but its coverage is limited. The rate of loss of forest is alarming; it has affected natural habitats, biodiversity, and ecosystems. The loss can be attributed to: (i) uncontrolled use of forest products, (ii) increasing pressure of human and livestock, (iii) smuggling of logs, and (iv) gaps in forest policy.31

28. Despite rapid deforestation, Nepal has been successful in participatory forest management, and possesses 1.23 million ha of community forest and 0.56 million ha of buffer zones around 12 protected areas.32 A total of 1.7 million ha of forest

Table 1. Changes in Forest Resources in NepalYear 1965 1978 1985 1994 2011

Total forest area (‘000 ha) 6,466.9a 6,306.7a 6,223.8b 5,828c 5,733.7d

- Forest 6,078.9 5,616.8 5,515.8 4,268.8

- Shrub land 388.0 689.9 708.0 1559.2

Total forest area as % of total land 43.8 42.8 42.2 39.5 38.9

Shrub land as % of total forest area 6.0 10.9 11.4 26.8 …

a Land Resources Mapping Project (LRMP), 1986.b HMGN/ADB/FINNIDA. 1988. Master Plan for the Forestry Sector, Nepal: Forestry Sector Policy. His Majesty’s Government of Nepal, Asian

Development Bank, Finnish International Development Agency. Ministry of Forest and Soil Conservation. Kathmandu. c His Majesty’s Government of Nepal, Ministry of Forest and Soil Conservation. 1990. Forest Resources of Nepal (1987–1998). National Forestry

Inventory. Department of Forest Research and Survey. Kathmandu.d Government of Nepal, Ministry of Forest and Soil Conservation. 2011. Forest Area in Nepal. Department of Forest. Kathmandu.

Note: See Appendix 4 for more detail

26 ADB. 2013. Solid Waste Management in Nepal – Current Status and Policy Recommendations. Manila.27 J. D. A. Stainton. 1972. Forests of Nepal.; S. M. Amatya and K. R. Shrestha. 2003. Nepal Forestry Handbook. Kathmandu.28 Government of Nepal, Central Bureau of Statistics. 2003/04.Nepal Living Standard Survey. Kathmandu.29 Government of Nepal, Central Bureau of Statistics. 2011. Statistical database of Nepal. Kathmandu.30 Government of Nepal, Ministry of Forest and Soil Conservation. 1999. Forest Resources of Nepal. Publication No. 74. Kathmandu.; HMGN/ADB/FINNIDA. 1988. Master

Plan for the Forestry Sector, Nepal. Kathmandu.; Government of Nepal. 2011. Forestry Sector Policy. Kathmandu.31 ADB/ICIMOD. 2006. Environmental Assessment of Nepal: Emerging Issues and Challenges. Kathmandu.32 Government of Nepal, Ministry of Forest and Soil Conservation. 2011. Kathmandu.

A recent study by MOFsC reveals that 0.44% forest area of Terai and 0.18% of Chure area are lost every year. The study also indictes that 6 trees are cut per ha in Terai and 3 trees are cut per ha in Chure from the forest every year.


land (about 31% of the total national forest area including shrub land) was managed by 18,133 community forest user groups (CFUGs) formed by 2.237 million households (41% of households) as of October 2013. The local beneficiaries manage the forest and utilize forest resources in a sustainable manner based on the annual plan approved by the district forest offices. By 2024, the government aims to bring 2.3 million ha of forest area under the community forestry regime, according to the Forestry Sector Strategy for Nepal (2014–2024). Learning lessons from the loss of forest during the implementation of development activities in the past, the government has adopted one of the highest regulatory requirements for offsetting

forest clearance by development activities by compelling developers to plant trees at a ratio of 1:25 for each felled tree and safeguard them for five years. The lost forest area has to be replaced by the developer by arranging for an equal area of land for compensatory tree plantation in coordination with the government (working procedure for allowing the use of forest area for other purposes- cabinet decision of 10.11.2063 BS).

b. Grasslands29. According to the LRMP study, Nepal had 1.757 million ha of grasslands in 1978/79, which was 11.9% of the total land area. Changes in coverage have not been scientifically assessed since then. Grasslands in sub-alpine–alpine areas and the Trans-Himalayan zone constitute climax vegetation, whereas grasslands or grazing lands scattered in forest areas in sub-tropical to temperate zones have biotic and edaphic causes, and constitute mostly anti-climax vegetation. Savannah grassland in tropical areas has already disappeared except in protected areas. Steppe rangelands have been severely depleted both in terms of area and productivity.33 Higher stocking rates, uncontrolled grazing, and haphazard lopping of fodder trees have reduced the average productivity of grazing areas in the sub-tropical and temperate zones while sub-alpine grasslands, mainly used for seasonal pasturage, are losing their productivity due to high stocking rates, overgrazing, lack of management, invasion of non-herbage shrub, and other non-edible species gradually replacing palatable grass species.

c. Biodiversity30. Nepal is ranked 25th in the world in richness of biodiversity. Despite the fact that Nepal occupies only 0.1% of the world’s land area, the tropical to alpine scrub and warm to cold water bodies existing in 118 types of forest ecosystems host 867 bird species, 208 mammal, 118 reptile, 77 amphibian, 186 fish, and 645 butterfly species. Forests and wetlands provide habitat for 25% of the country’s biodiversity.34 The International Union for Nature Conservation (IUCN) has listed 1 extinct mammal species, listed as endangered 11 mammal, 3 bird, and 1 reptile species, and listed as vulnerable 7 mammal

33 S. G. Shah. 1979. Range and Pasture Production: Design Report. APROSC, USAID. Kathmandu.34 Government of Nepal, Ministry of Forest and Soil Conservation. 2009. Faunal Diversity of Nepal. Kathmandu.35 His Majesty’s Government of Nepal, National Parks and Wildlife Conservation. 1973. National Parks and Wildlife Conservation Act

1973. Schedule 1. Kathmandu.36 National Academy of Science and Technology 2013. Biological Diversity and Conservation. J. Shrestha Kathmandu.37 National Academy of Science and Technology 2013. Biological Diversity and Conservation. K. B. Shah Kathmandu.

Figure 5. Total forest area as % of total land

1965 1978 1985 1994 2011 2013

37.3

38.939.5

42.242.843.8

46

44

42

40

38

36

34

Source: Arnaud Cauchois, ADB, 2013


and 1 reptile species.35 A total of 228 fish species are found in the country, of which one is endangered, 95 are common, 5 are vulnerable and 36 are rare.36 Nepal is unique in its diversity of herpetofauna, with 190 recorded species comprising 53 amphibian species, 2 crocodile species, 17 turtle species, 39 lizard species, and 79 snake species. Of these, 3 reptiles are protected species.37

31. Nepal has about 7,000 species of flowering plants, including 1,624 species of ethno-botanical importance and over 700 species of MAPs, of which about 150 species have high economic value (Department of Medicinal Plants, Ministry of Forest and Soil Conservation, 1990/91). A large number of plant species found naturally in forests and grasslands have been used traditionally as medicines, fibers, food, dyes, resins, tannin, gum, and for religious purposes. There are over 400 species of agro-horticultural crops including 200 species of vegetables in the country.38 The government has afforded protected status to 11 species of MAPs and 7 species of timber trees through various acts and regulations (Appendix 7).39 However, due to weak enforcement most of these species, such as Panch Oule (Dactylorhiza hatagirea), Jatamansi (Nardstachys grandiflora), Loth Salla (Taxus spp.), Yarsagumba (Cordyceps sinensis), Khayar (Acacia catechu), Sal (Shorea robusta), Satisal (Dalbergia latifolia) and Simal (Bombax ceiba) are being harvested at an alarming rate for their high economic value. Out of 32 rare plant species, 8 are already reported to be extinct.40

32. Nepal’s diversified biological resources, besides maintaining ecosystem equilibrium, provide ecological goods to people and have great economic value to the rural population. However, forest degradation in the past five decades has adversely affected forest vegetation and biodiversity throughout the country except in protected areas and their buffer zones. The major causes of forest degradation are clearing trees for meeting household fuelwood demand, semi-processing agriculture products, illegal in-country or transboundary timber sales, overgrazing, uncontrolled extraction of MAPs and NTFPs, and forest fires.

33. There are 11 hydropower and 12 irrigation systems in Nepal with major dam structures, and 220 hydropower projects at different stages of planning on various rivers without considering basin-wide cumulative impact assessments. The major challenges associated with cross-dam structures are their adverse impact on aquatic ecosystems and biodiversity, and many populations of indigenous fish species have already been diminished or lost. Storage-type hydropower causes large-scale inundation of settlements, agricultural fields, and forest, and transforms the existing ecosystems. Environmental safeguards for the protection of aquatic biodiversity are comparatively satisfactory in donor-funded projects. Damming of rivers, destructive fishing practices, introduction of exotic fish species (e.g. tilapia, bighead carp, silver carp, grass carp, common carp, rainbow trout, and African catfish), extraction of riverbed materials (damaging fish habitat and spawning grounds), and a lack of policy to protect aquatic biodiversity have contributed to the rapid decline of fish species, particularly Tor tor (deep-bodied Mahseer), Tor putitora (Golden Mahseer), Schizothorax species (Asla), and Anguilla bengalensis (Raj Bam). Transmission lines have caused stratification of forest habitat as they are generally aligned through forests in order to avoid private land and property.

38 Nepal Agriculture Association/JICA. 1995. Plant Genetic Resources Profiles Study. Kathmandu.39 His Majesty’s Government of Nepal, Ministry of Soil and Forest Conservation. 2001. Nepal Rajpatra. 51 (36). Kathmandu.40 ADB/ICIMOD. 2006. Environment Assessment of Nepal – Emerging Issues and Challenges. Kathmandu.41 Government of Nepal, Ministry of Forest and Soil Conservation. 2011. Kathmandu.

Figure 6. Protected Areas of Nepal

Source: NTNC


34. Twenty protected areas comprising 10 national parks covering 1.08 million ha, 3 wildlife reserves of 0.1 million ha, 1 hunting reserve of 0.13 million ha, and 6 conservation areas of 1.54 million ha have been established. This covers 19.4% of the area of the country. Of these, 12 protected areas have buffer zones conserving 0.56 million ha of forest. A total of 1.23 million ha of forest is managed by 17,685 CFUGs (Appendix 6).41 There are 242 designated wetlands in Nepal—163 in the Terai and 79 in the hills and mountains. Of these, 9 have been classified as Ramsar sites, covering 34,445 ha. The wetlands are an important source of water and form the habitat of many species of animals, birds, and reptiles. Migratory birds visit the wetlands annually, some flying from Siberia. Wetlands are being damaged by siltation, eutrophication, and invasive species, in addition to excessive water withdrawal, human encroachment, and pollution.

d. Agriculture35. Traditionally, Nepal’s economic growth has been dependent on its natural resources: land, forests, and water. The contribution of the agriculture sector

accounted for 65.2% of GDP in 1964/65, which gradually went down to 40.4% of GDP in 1996/97, and 34.1% of GDP in 2013/14. About 76% of the households in Nepal are dependent on agriculture.

36. A total of 29.6% (2.5 million ha) of Nepal’s land is arable. Of this, only 27.74% of land has some form of irrigation facility (World Bank 2009). About 17% of the arable land is cultivable at 100% to 250% cropping intensity. The majority of farm families, particularly in the hills and mountains, are subsistence farmers with small land holdings (Bartlett et. al. 2010). Commercial cereal farming is concentrated in the Terai plains (43% of total cultivated land) and the lower hills and mountains of the upper Himalayas (World Bank 2009, cited in Bartlett et al. 2010). Since 1980, Nepal has continuously relied on food imports to meet its domestic cereal needs.

37. Agricultural land owned by farming households increased from 1.69 million ha in 1961/62 to 2.65 million ha in 2001/2002, of which 92% was arable.42 The LRMP recorded 2.97 million ha of gross cultivated land in 1978/79 (Appendix 3). The average cereal yield in 2010 was only 60.1% of the average of Bangladesh. The agribusiness share of GDP is only 10%, and the agricultural trade deficit is $350 million per annum.

38. The average return per hectare of agricultural land has declined over the years. The profits per hectare of land decreased by 10% in 2003/04 compared to 1995/96 as a result of the higher cost of production and lower returns, thereby lowering the interest of farmers in farming.43

39. Farming area under annual crops—mainly cereals—decreased by 203,000 ha from 2001/02 to 2011/12, with consequences for food production. Chunks of land remained fallow due to the shortage of working hands for household or farm labor, as a result of labor migration to the Gulf countries. A survey conducted by the World Food Programme (WFP) and the European Union (EU) suggests that 32% of Nepal’s total households (5.66 million in 2011) have sent one or more migrants, mostly men, to the Gulf countries or Malaysia.44 The rapid trend of conversion of farmland to urban and industrial use, increased water insecurity with only 18% of land having year-round irrigation, weak

42 Government of Nepal, Central Bureau of Statistics. 2012. National Sample Census of Agriculture (2001/02 & 2011/12). Kathmandu.43 Government of Nepal, Central Bureau of Statistics. 2011. Kathmandu.44 WFP/EU. 2006. Kathmandu.

Women’s Empowerment at the Frontline of Adaptation, ICIMOD Working Paper 2014/13, Nepal

Across Nepal, there has been an increase in rural women’s workload, with multiple effects on their health, income, safety, nutrition as well as social, economic, and political empowerment. Over 65% of Nepal’s total population is engaged in agriculture; 78% are women. In areas where most of the economically active men have migrated in search of employment, women have become the backbone of rural development, providing most labor inputs. However, climate change and variability in water availability has negatively affected women’s livelihoods. The hardening of agricultural soil and the emergence of new pest and crop diseases, all widely observed, are increasing women’s workload, forcing them to spend long hours tilling the land and weeding fields. The decrease in water availability as a result of watershed degradation and the impacts of climate change has increased the distance to cover to collect water, with women spending up to 3 to 4 hours each day walking to sources and back. According to the Nepal Living standard survey 2011, the literacy rate among adult women is 45% compared to 76% for men. Only 39% of adult women in rural areas are literate, compared to 67% of men.


infrastructure, and poor connectivity to markets are also contributing factors for farmers’ low interest in agriculture. Meanwhile, only 19.7% women have land ownership. The Irrigation Policy 2013 mandates 33% of women’s representation at all levels of water users’ associations.

40. The increasing use of pesticides, insecticides, herbicides, and various growth hormones and other agrochemicals has considerably increased in commercial agriculture. The annual import of pesticides in Nepal is about 211 tons, comprising 29.19% insecticides, 61.38% fungicides, and 7.43% herbicides, with other pesticides making up 2%. Gross sale value amounts to $3.05 million per year. The national average pesticide use in 2012 was 142 g/ha, which is very low compared to other Asian countries.45 With the crowding out of fertilizer suppliers due to the subsidy policy on fertilizers, the government supplied 185,000 tons of chemical fertilizers (e.g. urea, DAP, and potash) and provided a partial subsidy equivalent to NRs6 billion. Average fertilizer use was 57 kg/ha in fiscal year (FY) 2013, up from 47 kg/ha in FY2012.46 However, improper application have caused environmental and health hazards such as respiratory and skin disease in farmers, decrease in soil fertility, and decline of critically endangered birds and mammals, particularly vultures that scavenge dead livestock or insects treated with these chemicals.47

4. Physical Infrastructure and Urban Development41. Infrastructure development tends to be environmentally weak in Nepal. The government’s capital expenditure was extremely low at 3.3% of GDP in 2013. The length of the road network in Nepal has tripled in the past 10 years, with nearly 11,000 km of strategic networks (and another 3,000 km planned or under construction) and 60,000 km of rural networks. The growth of the road network has helped in the establishment of new towns and linking with or the opening up of new market centers. However, combined road density is around 48 km per 100 km2, and rural road density is 14 km per 100 km2—the lowest in South Asia. Furthermore, road construction has also come at an environmental cost. Roads, particularly non-engineered rural roads in the hills and mountains, have accelerated landslides, gully erosion, and loss of forest resources and natural habitats. Access by motorized vehicles following construction of roads has also accelerated deforestation and smuggling of timber that takes advantage of the weak monitoring capacity of the government.

42. Investment in hydropower by both public and private sectors is growing. However, the plants are being implemented without considering their basin-wide impacts. The government’s ad hoc decision to waive Environmental Impact Assessments (EIAs) for hydropower plants up to 50 MW in capacity and any

45 D. R. Sharma et al. 2012. The Journal of Agriculture and Environment. 13. 46 Government of Nepal, Ministry of Finance. 2014. Economic Survey 2012/13. Kathmandu.47 Oaks et al. 2004.; Shultz et al. 2004.

Source: D.B. Singh, ADB, 2014


size of transmission line is widely considered a hasty decision to address the ongoing energy crisis at the cost of the environment. Strategic environmental assessments (SEAs) of hydropower master plans, irrigation policies, and other future water resource-related policies, plans, and programs are necessary, and should consider downstream water use rights and basin-wide cumulative impacts.

43. Managing Nepal’s rapid urbanization is an important challenge. During the period 2001–2011, the population growth rate in urban areas was 3.4% per annum, compared with 1.4% per annum for the country as a whole.48 Although the urban population as a proportion of the total population was low in 2011 (17% compared with 14% in 2001), it is projected to increase to 24% by 2017 and

32% by 2027.49 The rapid rural–urban migration of that decade was a result of the armed conflict between 1996 and 2006, the inflow of remittance money, migration for employment and education, and the attraction of better living conditions in upcoming towns. The absence of stringent policies to regulate and manage this growth has resulted in the haphazard development of municipalities and emerging towns, especially within the Kathmandu Valley. Municipal infrastructure has not kept pace with the rapid rate of urbanization, resulting in insufficient water supply and lack of proper sewerage and SWM systems. Traffic congestion is worsening, especially in the Kathmandu Valley, and public transportation systems are inefficient. The population grew by an annual rate of 6.6% in the Kathmandu Valley during 2001–2011, making it the most affected part of the country. Encroachment by sprawling settlements on riverbanks, public lands, and forests is a pressing problem in urban areas, and the number of slum and squatter settlements are on the rise.50 There are 191 municipalities, 133 declared recently, most of them with more rural than urban characteristics. Environmental degradation of waterways and air pollution are increasing, sanitation facilities are grossly insufficient, and climate change impacts are creating additional challenges and increasing vulnerability to natural hazards in urban areas. The haphazard and unregulated development of urban areas has worsened vulnerability, particularly given the high risk of earthquakes in the country.

5. Industrial Development and Pollution Control44. The industrial sector began to emerge in Nepal only in the 1980s, consisting of mainly cottage and medium-scale industries without significant levels of pollution. Several industrial estates were set up to promote industrial development, which succeeded to some extent. As per the industrial census of 2011/12, there are about 4,076 manufacturing industries in Nepal. However, the average contribution of the industrial sector to GDP diminished from 22% in 2000 to 15% in 2010, particularly due to labor disputes and the energy crisis.

45. The major industries in Nepal are tourism; the production of carpets, textiles and leather; rice, jute, sugar, and oilseed mills; processed foods

Earthquake Hazards in the Kathmandu Valley:

Comprising just 0.6% of Nepal’s total area, the Kathmandu Valley accounted for 9.5% of its total population in 2011, with a population density of 2,800 persons per square kilometer. In 2001, the Kathmandu Valley had 7.1% of Nepal’s total population, with a population density of 1,830 persons per square kilometer. Its location in a high seismic risk zone, such an increase in population and density, characterized by haphazardly growing settlements, means that Nepal’s capital is one of the most earthquake-vulnerable cities in the world.

48 Government of Nepal, Central Bureau of Statistics. 2012. National Population and Housing Census 2011. Kathmandu.49 Government of Nepal, National Planning Commission. 2006. Nepal Population Perspective Plan 2002–2027. Kathmandu.50 Government of Nepal, National Planning Commission. 2013. Millennium Development Goal Acceleration Framework. 2013. Kathmandu.51 Government of Nepal, Ministry of Science, Technology and Environment. 2009. Industrial Environment Study. Kathmandu.

Source: ADB, 2014


such as instant noodles and beverages; cigarettes; and cement, paint, brick and steel and iron-allied industries (Appendix 17). In the face of lax government monitoring, most industries openly dispose of their waste, polluting the air, water, and land. Industries annually produce 8.6 million m3 of wastewater, 9,592 tons of total suspended solids (TSS), and 21,900 tons of solid waste. The total suspended particulate (TSP) matter discharged by industries is 76,250 tons, with brick kilns and cement industries contributing 70% and 27%, respectively.51

6. Tourism46. Nepal’s natural and socio-cultural heritage is its major asset for tourism. The country is a hotspot destination for mountaineers, nature lovers, and people seeking adventure. Nepal’s Hindu and Buddhist heritage also has the potential to attract a large number of tourists. However, this potential has not been fully exploited. Growth remained stagnant between 1995 and 2006 owing to the insurgency and political instability, with an average annual arrival of about 0.4 million tourists; tourist arrivals rose to about 0.8 million in 2012. The tourism employment survey of 2014 has indicated that for every 6 tourists visiting the country, 1 job is created, but this is far lower than the estimate of the UN World Tourism Organization, according to which each tourist should generate employment for 12 people. The Economic Survey 2013 finds that Nepal’s tourism industry generated 178,000 person days of jobs a year, 20% of the beneficiaries being women. The major constraints to tourism growth are a lack of quality infrastructure and sanitary facilities, a decline in the status and values of natural and cultural heritage, pressure on the environment, limited access to new tourism areas, and a lack of coordination. The contribution of hotels and restaurants as a percentage of total GDP, at current prices, stagnated at 1.8%–1.9% between 2000/01 and 2012/13.52 There are 10 five star, 2 four star, and 31 three star hotels currently in operation in he country.

47. The arrival of tourists in Nepal introduced materials such as plastic and cans, transforming the very nature of solid waste in the country. Mountain tourism in particular has caused adverse environmental impacts such as forest clearance and tree felling to meet the demand for cooking

and heating along the trekking routes, and has also resulted in the dumping of garbage and competition with local inhabitants for natural resources due to overcrowding in destinations such as the Annapurna Conservation Area, once considered one of the top 10 trekking routes in the world. A study indicates that nearly 10 tons of waste generated by mountaineering expeditions, including oxygen cylinders, are strewn along the route to the summit of Mount Everest. Although the introduction of the concept of eco-tourism has increased awareness among people to conserve natural resources while attracting tourists, a significant shift in approach is yet to be discerned.

7. Climate Changea. Climate Change Risks in Nepal48. Nepal’s diverse topography, fragile ecosystems, poverty, lack of capacity to plan effectively for climate change adaptation, and weak governance have made the country extremely vulnerable to the impacts of climate change. With the tropical plains of the Terai in the south and a Trans-Himalayan cold, arid climate in the north, Nepal is experiencing tangible signs of the impacts of climate change, including shrinking glaciers, a three- to four-week shift in the monsoon, and higher temperature increments during the winter and spring in comparison to summer.53 Nepal is identified as the 13th most climate-vulnerable country in the world although it is responsible for only 0.027% of global greenhouse gas (GHG) emissions (Appendix 13).54 Analyses of temperature data from 1977 to 1994 reveal higher warming trends in the Middle Mountain and Himalayan regions compared to the Siwalik and Terai (Appendix 14), and the mean temperature has increased at a linear rate of 0.04°C per year (higher than the mean global rate) from 1975 to 2009 (Appendix 14).55 Temperatures could be warmer in Nepal by 4°C in winter and 2.5°C to 3°C in summer by the end of the 21st

century (Appendix 14). During this period, winter precipitation may increase between 5% to 10% in eastern Nepal and 15% to 20% across the whole country in summer (Appendix 15).

b. Anticipated Consequences49. Erratic weather patterns, unpredictable and intense rainfall, reduced snowfall at high altitudes,

“Nepal’s population is extremely vulnerable, not only to the immediate threats of increasingly frequent glacial lake overflow, landslides, flash floods and droughts, but also to longer-term climate change, which will ultimately reduce water availability and limit crop productivity.”

Bindu Lohani, Vice President, ADB

52 Government of Nepal, Central Bureau of Statistics. 2013. Environment Statistics of Nepal. 2013. Kathmandu.53 Government of Nepal, Ministry of Science, Technology and Environment. 2010. National Adaptation Programme of Action to Climate Change. Kathmandu.54 Climate Change Vulnerability Index 2012, Maplecroft’s Climate Change and Environmental Risk Atlas 55 S. K. Baidya, S. K. Regmi and M. L. Shrestha. 2007. Observed Climate Change and Climate Variability in Nepal. Kathmandu.


recurrent droughts and floods, and a shift in the temperature regime have adversely affected agriculture and the livelihoods of small farmers and poor people. It is widely confirmed that climate change is the main factor behind the accelerated glacial retreat and the formation of highly hazardous glacial lakes observed in the Himalaya. The effects of climate change have been causing cloudbursts, triggering massive landslides and floods. Climate scientists predict the continuation of more intense monsoons, and severe and frequent floods in the future.56 Continued climate change is predicted to lead to major changes in freshwater flows with dramatic impacts on biodiversity, people, and their livelihoods. The most striking loss will be the availability of surface water for domestic use particularly in the hills and mountains, where people depend on rivulets and springs. The drying out of water sources due to the impacts of climate change has already led to the out-migration of entire villages in Mustang and Jajarkot districts of mid-west Nepal. The government estimates that 1.9 million people in Nepal are highly vulnerable to the risks of climate change, and an additional 10 million are increasingly at risk, which is about 37% of the country’s population.

50. Glacial melting leads to an increase in water discharge, which is expected to increase the frequency of catastrophic flooding events such as glacial lake outburst floods. Nepal is at a high risk from the impact of glacial lake outburst floods. These events could have devastating consequences for downstream settlements and infrastructure. Nepal’s agriculture sector may indeed reap some short-term benefits from warmer temperatures and melting snow and ice. But in the long-term, there might be a “tipping point” as glacial runoff begins to decrease and perennial rivers turn into seasonal streams, causing freshwater scarcity in the dry months.

8. Disaster Risk 51. The fragile and “young” geology of the Himalaya, unstable slopes, high topographical variation, low-lying areas in plains, extreme climatic events, environmental degradation, urbanization, unsustainable infrastructure development, and its modest socio-economic conditions have made Nepal

one of the most environmentally vulnerable countries in the world. The country is vulnerable to various forms of natural disasters including floods, landslides, flash floods, drought, cold waves and heat waves, thunderstorms, fire, avalanches, and earthquakes. The biggest recorded disasters are the floods of 1993, 2008, and 2012, the earthquakes of 1934 and 1988, the Jajarkot diarrhea outbreak of 2009, and the landslides of 1993 as well as the recent landslide of August 2014 that blocked the Sunkoshi River for almost a month. From 1971–2012, disasters such as landslides, floods, earthquakes, thunderstorms, fire, cold waves, epidemics and other accidents caused the deaths of 31,908 people, injured 58,210, affected 5.94 million people, and destroyed 229,167 houses and damaged 170,097.57 In 2012, disasters affected 2,743 families and caused the deaths of 419 persons (Appendix 16). Nepal is extremely vulnerable to earthquake and water-related hazards; it ranks 11th in the world in terms of vulnerability to earthquakes and 30th in terms of flood risk.58

52. The lowlands of the Terai are prone to floods due to riverbank cutting and aggradation of riverbeds that expose settlements and agricultural land. Similarly, hilly areas are at risk of landslides due to the disturbance of fragile geological settings by human activities. The High Himalaya is vulnerable to the risks of avalanches and GLOFs, while wind erosion and desertification are common in the Trans-Himalayan region. There are 1,466 glacial lakes in Nepal, of which 21 are at high risk of possible outbursts (GLOFs).59 At least 14 GLOF events have been recorded in the past, and many settlements as well as infrastructural developments are at risk. Nine districts in the Terai have been identified as most vulnerable to flooding, 29 districts in the hills and mountains are vulnerable to landslides, and 22 districts in the Terai, hills, and mountains are vulnerable to drought.60 Overall, about 2.2% of the country’s total land area (0.6 million ha) has become uncultivable due to flooding or soil erosion, up from 1.2% in 2001 (0.3 million ha). The Kathmandu Valley, due to its substandard and non-engineered buildings, and unplanned and highly dense settlement, is the most at-risk city in the world to earthquakes (Geo Hazards International, 2011).

56 W. W. Immerzeel, L. P. Van Beek and M. F. P. Bierkens. 2010. Science 328. pp. 1382–85.57 Government of Nepal, Ministry of Home Affairs/DPNet-Nepal. 2013. Nepal Disaster Report, 2013. Kathmandu.58 UNDP. 2004. A Global Report: Reducing Disaster Risk. New York.59 ICIMOD. 2011. Glacial Lakes and Glacial Lake Outburst Floods in Nepal. Lalitpur.60 Government of Nepal, Ministry of Science, Technology and Environment. 2010. National Adaptation Program of Action (NAPA) to

Climate Change. Kathmandu.

Climate change-driven events like

melting glaciers pose a grave risk to

Nepal’s economy, and could cause

losses equal to almost 2.2% of

annual GdP by 2050 and 9.9% by 2100.

but, if mitigation and adaptation steps are

taken the damage could be limited to

around 2.4% of GdP by 2100.

ADB. 2014. Assessing the Cost of Climate

Change and Adaptation in South Asia. Manila.

disasters are a serious impediment to Nepal

development and have undermined its

development gains and its achievements in poverty alleviation

and the millennium development goals.


GOVERNMENT PRIORITIEs FOR sUsTAINAbLE dEVELOPMENT

2

A. Government Priorities and Commitments

53. The concept of environmental protection and conservation has gradually evolved through the development of periodic national development plans prepared by the National Planning Commission (NPC) since 1962. Till the sixth periodic plan (1980–85), the government emphasized components of the environment such as forest conservation, watershed management, wildlife conservation, water and sanitation, and urban management. Since 1985, major environmental mainstreaming initiatives have been undertaken, environment-friendly policies introduced, and environment management strategies integrated into sector plans. The support of international policy instruments and commitments as well as the donor community’s interventions in policy advocacy and capacity development have also played an important role in institutionalizing environmental safeguards in development activities. The outcomes of these efforts are the formulation of national environmental policies, acts, and regulations, the adoption of forest and wildlife conservation initiatives, the establishment of national parks and conservation areas to protect sensitive ecosystems, and the formulation of air and water quality standards.

54. Nepal is a signatory to 21 environment-related international conventions.61 It has endorsed and

ratified these conventions and responded to major obligations by formulating appropriate policies, strategies, and action plans. In the context of national planning, several initiatives aimed at protection of the environment have been undertaken.62

55. Environmental priorities in the government’s strategies and plans include: (i) forest conservation and management through community participation,63 (ii) wildlife and biodiversity conservation through the establishment of protected areas, (iii) reducing vulnerability to the impacts of climate change, (iv) disaster relief and risk management, (v) environmental sustainability of development projects,64 (vi) achieving the Millennium Development Goals (MDGs), (vii) improving air quality and waste management in urban areas, (viii) use of renewable energy and energy-efficient technology in rural areas,65 (ix) watershed management–ecological restoration in the fragile Siwalik range, (x) improved drinking water and sanitation services, and (xi) adopting a climate-resilient agriculture system.

56. The National Conservation Strategy for Nepal 1988 analyzed natural resources and economic activities by sector and aimed at promoting wise use, protection, preservation, and restoration of natural resources for balanced socio-economic development.66 Implementation of the strategy resulted in the preparation of a national

61 e.g. Ramsar Convention 1971; UNESCO Convention for the Protection of the World Cultural and Natural Heritage 1972; Convention on the International Trade in Endangered Species of Wild Flora and Fauna, 1973; UN Convention on Biological Diversity 1992; UN Framework Convention on Climate Change 1992; UN Convention to Combat Desertification 1994; Kyoto Protocol 2005.

62 R. B. Khadka et al. 2012. Safeguarding the Future, Securing Shangri-La. IIED. London.63 Government of Nepal, Department of Forestry. CFUG Database. Community Forestry Division. Kathmandu.64 Government of Nepal. 1997. Environment Protection Act and Environment Protection Rules. Kathmandu.65 Ministry of Science, Technology and Environment, Alternative Energy Promotion Centre. 2013. Lalitpur.66 Government of Nepal, National Planning Commission/IUCN. 1988. National Conservation Strategy for Nepal. Kathmandu.


system of environmental impact assessments, environmental planning, environmental education, environmental law, biodiversity conservation, and institutional strengthening.

57. Subsequently, the Government of Nepal prepared the National Environment Policy and Action Plan (NEPAP) 1993. The national policy formulated guidelines and action plans for sustainable management of natural resources (land, forests, and water), population, environmental education, poverty reduction, environmental health, industry, tourism, urbanization, national heritage, environmental legislation, and institutional development. The Environment Protection Act 1996 and Environment Protection Regulation 1997 were adopted as a follow-up to NEPAP.

58. In mid-2000, the government approved the Sustainable Development Agenda of Nepal 2003–2017 (SDAN), confirming its commitment to implement Agenda 21 of the Rio Earth Summit.67 SDAN has prioritized forest ecosystems and biodiversity as one of six main areas of concern. However, the National Commission on Sustainable Development formed in April 2002 under the Prime Minister’s chairpersonship is inactive, and there is no agency for implementing or monitoring SDAN.

B. Nepal Millennium Development Goals

59. Nepal signed the Millennium Declaration in September 2000, and the MDGs have been incorporated into the Poverty Reduction Strategy Paper 2003 and the subsequent three interim three-year plans (2007–2016). Considering the unstable political context of the last 13 years, Nepal has made significant progress in achieving its MDG targets, including MDG No. 7 on sustainable environment management (Appendix 17).68

60. After a slump in the 1990s and early 2000s, forest cover has been relatively stable, reaching

38.9% (2015 MDG target 39.6%). Also, protected areas have been boosted by the increase in community forestry, which has benefited the environment and people’s livelihoods. However, factors like internal migration, uncontrolled encroachment on forest area for habitation and agriculture, and high dependency on forest resources for livelihoods threatens to slow progress.

61. The Interim Constitution 2007 defines access to water as a fundamental right for citizens. The national average of households using safe drinking water was 85% in 2012/13 (National Planning Commission, 2013), which exceeds the 2015 MDG target of 73%. Between 2000 and 2011, the national sanitation coverage more than doubled from 30% to 62%, and surpassed the 2015 MDG target of 53%. Although, a study by Water Aid estimates that if functionality is taken into account the coverage could be for less.

C. Sector Policies, Strategies, and Plans related to Environmental Sustainability

62. Extensive regulatory mechanisms exist in Nepal that address most aspects of environmental planning and management (Appendix 18). However, there has been uneven progress in legislation with advances in some areas such as management of forest resources, protection of fauna and flora, and biodiversity conservation, but stagnation in others such as industrial and hazardous wastes; air, water, and noise pollution; and clean energy development.

63. NEPAP, the Environment Protection Act 1996 (EPA), and the Environment Protection Regulation 1997 (EPR) are the key legal provisions to mitigate adverse environmental impacts and integrate environmental sustainability in development activities. These legislations have made Initial Environmental Examinations (IEEs) or Environmental Impact Assessment (EIA) mandatory for both government and private

67 Government of Nepal, National Planning Commission/Ministry of Population and Environment. 2003. Sustainable Development Agenda for Nepal. Kathmandu.

68 Government of Nepal, National Planning Commission/UNDP. 2013. Nepal Millennium Development Goals, Progress Report. Kathmandu.


sector development projects. They ensure that environmental and social issues are addressed in all development projects. However, weak government capacity for effective implementation and monitoring of environmental management plans, inadequate resources, a lack of awareness about the importance of environmental safeguards and risks of climate change, and political instability have been the key challenges in achieving sustainable development. There is also a need for updating the NEPAP, EPA, and EPR in the context of emerging environmental and climate change-associated issues. The government has also formulated many sector policies and plans related to environmental safeguards since the formulation of the NEPAP, EPA, and EPR (Appendix19). A strategic framework is being prepared to screen the government’s annual projects and programs for their impacts on natural resources and biodiversity.

64. The government has given due priority to addressing the impacts of climate change by formulating policy and establishing institutional mechanisms. The National Adaptation Plan of Action 2010 (NAPA) identifies priority activities for adaptation to climate change in agriculture and food security, water resources and energy, climate-induced disasters, forest and biodiversity, public health, urban environment, and infrastructure.69 NAPA provides guidelines for better adaptation to the adverse impacts of global warming, extreme weather conditions, and climate-induced disasters. It promotes the mainstreaming of climate change issues into development plans and programs, and considers gender as a cross-cutting issue. Nepal also prepared a national framework for Local Adaptation Plans of Action (LAPAs) in 2011 with the objective of incorporating climate change adaptation actions into local development planning. LAPAs identify local-level adaptation needs to focus on reducing climate risks and vulnerabilities and increasing resilience.70 Given the growing impacts of climate change on the poorest and most vulnerable, and the unprecedented strain on ecosystems, the need to integrate environment–poverty linkages into national development policy and planning processes has become an overriding

69 Government of Nepal, Ministry of Environment. 2010. National Adaptation Plan of Action to Climate Change. Kathmandu.70 Government of Nepal, Ministry of Environment. 2011. Local Adaptation Plan of Action. Kathmandu.

concern. In this context, the poverty–environment initiative (PEI) program was implemented by the government under which climate change budget codes were developed by the NPC and the Ministry of Finance to track public spending on climate change adaptation and mitigation. The NPC has supported the green economy framework and the Ministry of Science, Technology and Environment supported low carbon/emission development strategy (through the Alternative Energy Promotion Centre) to back the government in planning for a development pathway towards a green economy.

D. Institutional Development

65. In the past three decades, government and several non-government and private sector institutions have played an important role in designing and streamlining environmental activities in Nepal. The NPC established an environment division in 1987, which was the first environment-related body responsible for overseeing and coordinating inter-sector environment-related activities. The Environment Protection Council (EPC) was established in 1992 under the chairpersonship of the Prime Minister to oversee environmental compliance through national policies. The EPC approved NEPAP in 1993, but it is currently inactive.

66. The Ministry of Population and Environment was established in 1995 with responsibility for environmental conservation, pollution prevention and control, conservation of national heritage, and preparation of national legislation on environmental protection. It was dissolved in March 2005 and combined with the Ministry of Science and Technology as the Ministry of Environment, Science and Technology. A stand-alone Ministry of Environment was formed in 2009, and was again reshaped as the Ministry of Science, Technology and Environment (MOSTE) in May 2012. With such frequent changes in institutional arrangements, the Ministry has faced difficulties in proper institutionalization and performance of the vital responsibility of monitoring and enforcing safeguards and compliance activities.


Ministry of Science, Technology and Environment

The Ministry of science, Technology and Environment (MOsTE) is responsible for formulating, coordinating, implementing, monitor-ing, and evaluating policies, strategies and plans/programs on the environment, sustainable development, climate change, science and technology, information and communication technology (ICT), en-vironment protection, alternative energy, and national and local ad-aptation. MOsTE is also responsible for implementing environmen-tal laws, information technology laws, laws on nuclear technology and biotechnology, by-laws, and standards, as well as the regular and periodic evaluation and review of environment-related programs im-plemented by government organizations. The Ministry is comprised of the department of Hydrology and Meteorology, the department of Environment, the department of Information Technology, the Alternative Energy Promotion Centre, and the national Information Technology Centre. MOsTE is also engaged in industrial and urban pollution control, climate change activities, and approval of EIAs.

MOsTE is the focal point for climate change activities including the UN Framework Convention on Climate Change and the Kyo-to Protocol, and has initiated a number of climate change-related activities, namely NAPA, the project strengthening Capacity for Managing Climate Change and the Environment, the Pilot Program for Climate Resilience, and the strategic Program for Climate Re-silience (sPCR). MOsTE also functions as the secretariat of the Climate Change Council, the Environment Protection Council, and the Information Technology Council constituted under the chair-personship of the Prime Minister.

MOsTE’s department of Environment looks after the monitoring and enforcement of environmental regulations. The department works with relevant line agencies and stakeholders, and has 54 staff in seven sections, though staffing in technical sections is in-sufficient. The five sections of the department on climate change, environmental standards, environmental assessment, sustainable development and adaptation, and clean development mechanism have altogether 16 technical staff.

MOsTE has virtually no vertical links with regional and district-level governments, which restricts the implementation of environmental policies and strategic plans at all levels of governance. In practice, the responsibility for environmental management and capacity at local levels is close to non—existent. Interagency coordination in environ-ment management is weak. There is a lack of a national environmental monitoring network. Moreover, in the absence of adequate human re-sources, technical capacity, and funds, MOsTE is unable to carry out effective and efficient environmental monitoring and management.

67. Most of the concerned government ministries and departments have some form of formal or ad hoc environment division, section or unit to look after sector-related safeguarding issues. Authority to approve IEEs lies with the concerned ministries, whereas MOSTE has the authority to approve EIAs.

68. The Ministry of Forest and Soil Conservation (MOFSC) is responsible for protection and management of forest and soil conservation-related programs, including wildlife and biodiversity conservation. The Ministry of Home Affairs is the focal ministry for managing disaster risk. The Ministry of Agricultural Development is responsible for minimizing environmental risks due to the use of agricultural chemicals, conserving biodiversity, and mitigating the impacts of climate change. The Nepal Army protects the national parks. Chief wardens in the national parks are appointed by MOFSC, and have the power to take legal action against poachers or encroachers. Besides government agencies, there are more than 1300 non-governmental organizations (NGOs), civil society organizations, research institutions, academic institutions, labs, and media organizations that work and advocate for environmental conservation (Appendix 20). The Department of Hydrology and Meteorology, MOSTE, monitors and publishes national hydro-meteorological data, and the National Trust for Nature Conservation supports the government in the management of conservation areas. Agencies such as WWF Nepal and IUCN Nepal also support in environment and biodiversity conservation. The Ministry of Urban Development is responsible for a planned and sustainable management of urban environment. Vehicular emissions are monitored by the Department of Transport, and pollution by industries is monitored and controlled by the Department of Industry. The Ministry of Energy, the Department of Electricity Development, and the Nepal Electricity Authority (NEA) are responsible for energy generation and distribution. Scores of environment at assessment and management guidelines for the energy sector have been prepared. NEA has a specialized environment division to ensure safeguards in the projects implemented by the government or private sector. The Ministry of


Agricultural Development mainstreams activities related to environmental and climate change in agriculture development through the food security and environment division, supported by the environment and climate change section.

69. The Local Self-Governance Act, 1999, has made local bodies responsible for the protection of the environment in district-level plans and programs. The government has established district environment, energy, and climate change sections in all the 75 District Development Committees, although they have been generally unable to contribute in ensuring environmental safeguards in local development activities. Guidelines have been prepared and trainings conducted in the past to strengthen the local government’s capacity in proper environmental governance. However, the sections have remained mostly inactive or ineffective due to a lack of resources.

70. In 2007, the government constituted a climate change network under the chairpersonship of the Secretary, MOSTE, for achieving stakeholder coordination. The Climate Change Council was constituted on 23 July 2009 under the Prime Minister’s chairpersonship to provide guidance on the formulation and implementation of climate change-related policies, plans, and programs, and take the lead in climate change-related international negotiations. Nepal is currently the chair of the least developed countries’ climate change coordination group of the United Nations Framework Convention on Climate Change (UNFCCC).

71. The government has also taken several initiatives to promote adaptation to climate

change. These include: the Mountain Initiative Concept 2010; the formation of the multi-stakeholder climate change initiatives coordination committee in April 2010; the Bhutan Climate Summit on “Living Himalayas” in November 2011; the international conference of mountain countries on climate change and the Kathmandu call to action in April 2012. The government regularly participates in the UNFCCC-organized annual conference of parties (COP) on climate change, which demonstrates the importance given by the government to climate change mitigation and adaptation strategies through national, regional, and international collective actions.

72. Control of desertification, river environment management, and groundwater extraction are not mentioned as the primary responsibility of any government agencies. Following the Desertification Convention in 1994, preliminary discussions were held to identify the desertification process in Nepal, but the government still has to develop a clear policy and focal institutions to combat the desertification that is taking place in many parts of the country. The Ministry of Irrigation and its Department for Water Induced Disaster Prevention looks after river training to control flood-related disasters.

73. Nepal has an adequate institutional setup and legal provisions to enforce environmental safeguards. Awareness about the importance of environmental conservation and climate change adaptation measures is increasing. However, the outcomes are still not effective due to the institutional, financial, and knowledge-based weaknesses discussed above. MOSTE’s newly

Table 2. General Trend of Climate Budget Allocation in Nepal over Three Years (NRs in million)

HeadingsFiscal Year

2011/12 2012/13 2013/14

Annual budget 384,900 404,825 517,240

GDP 1,375,000 1,536,000 1,702,000

Climate budget 27,629 27,283 53,483

Climate budget as % of total budget 7.2 6.74 10.3

Climate budget as % of GDP 2.0 1.78 3.1

Number of ministries with climate budget 8 9 11Source: Government of Nepal, National Planning Commission. 2013. Climate Change Budget Code – Application Review. Kathmandu.


established Department of Environment does not have regional or district-level offices, and has virtually no vertical link with regional and district-level government agencies.

E. Financing for Environmental Activities

74. Climate change and environment-related expenditures have steadily increased in recent years, with about $84 million in 2006/07 (1.15% of the total GDP) rising to $146 million in 2010/11.71 The total climate change budget allocated for FY 2013/14 was $54 million, which is 10.3% of the total budget and 3.1% of GDP. This covers sector initiatives for climate governance, capacity development, and integrating climate change risks in projects and programs.72 Most of the climate budget is in the area of economic affairs (71%), followed by housing and community services (26%). Only about 6% of the budget is allocated for direct environmental protection. About 11.4 % of the total climate change budget is allocated to local programs.73

75. Among the relevant ministries, the Ministry of Urban Development receives the highest share, that is 21.5% of the total climate budget, followed by the Ministry of Agricultural Development with 20.9%, the Ministry of Irrigation with 18.1%, MOSTE with 9.3%, and MOFSC with 7.4%. Nearly 60% of the climate change-related programs in FY 2013/14 have been ranked as highly relevant, with about 40% ranked as relevant programs by NPC. MOFSC has allocated 46% of its total budget to climate change related activities..

76. Several international NGOs and donors are implementing environment protection and climate change-related activities through national NGOs; their budget does not show up in the total public sector budget. Private sector investment has a built-in environment management/climate change budget: for example hydropower development projects generally set aside 3% to 5% of their total budget for implementing an environment management plan.The major weakness of environmental/climate change financing in Nepal is the absence of mechanisms to monitor and evaluate the efficiency of spending by the government and private sector.

71 Government of Nepal, Central Bureau of Statistics. 2011. Environment Statistics of Nepal. Table 2.21, p. 27. Kathmandu. 72 Government of Nepal, National Planning Commission. 2013. Climate Change Budget Code – Application Review. Kathmandu.73 Local programs include rural water resource management, rural drinking water supply and sanitation, community irrigation, small

irrigation and river training, community forestry, watershed protection, and soil conservation.

Source: ADB, 2014


sUPPORT bY dEVELOPMENT PARTNERs IN ENVIRONMENTAL sAFEGUARds

3

A. ADB’s Support to Nepal for Sustainable Development

77. ADB, as of 31 December 2013, has provided Nepal with 128 sovereign Asian Development Fund (ADF) loans (amounting to $3.11 billion), 5 non-sovereign loans ($49.55 million), and 34 ADF grants ($823.75 million), totaling $3.98 billion. ADB has also provided technical assistance totaling $180.3 million. ADB’s current commitment of development assistance to Nepal makes up about 23% of all foreign aid commitments to the country. Of the projects approved between 2010 and 2012, 47% supported environmental sustainability.

78. ADB’s sustainable development support to Nepal is evident from the achievements made in the past in various sectors. Between 2008–2012, 91,000 children and 122,000 teachers have benefited from ADB support in the education sector (from 2004). ADB-assisted hydropower stations account for 30% of the country’s generation capacity, and about 120,000 households have been directly connected to electricity, with greenhouse gas (GHG) emissions reduced by 2,445 tons of carbon dioxide equivalent per year. ADB assistance has helped to build or improve 1,362 km of national highways and rural roads, benefiting 6.8 million people through urban and rural connectivity. More than 300,000 households have a supply of improved drinking water as a result of ADB assistance. Productivity and farmer income has increased from the 140,000 ha of land improved through irrigation facilities and flood management. ADB has consistently promoted

gender equality and social inclusion in development, and is putting more efforts into building institutional capacity at all levels. ADB has also supported the government’s efforts to formulate relevant policies, build institutional capacity, learn from international best practices, and mainstream environmental safeguards in its investments. It has supported institutional strengthening and capacity building of sector agencies to understand, analyze, and integrate the risks of climate change while preparing plans, policies, and programs. Given Nepal’s vulnerability to climate change and natural disasters, all new projects and programs are screened for related risks (Appendix 21).

79. ADB is supporting Nepal based on the strategies delineated by the new Country Partnership Strategy 2013–2017, which focuses mainly on three core sectors—energy, transport, and urban infrastructure. ADB will also support skills training, and selective investments in water management to expand irrigation, mitigate the risks of water-induced disasters, and improve watersheds. Sector investments will still be complemented by the key themes, which include environmental sustainability, climate change, and disaster risk management.

80. ADB assistance mainstreams environmental safeguards in its investments, and focuses on watershed management, integrated water resources management, pre- and post-disaster management and climate change risk management. ADB’s support is also focused on sustainable and energy efficient transportation, renewable and alternative energy generation,


improving water supply, optimizing water use, sanitation and solid waste management improving river environment, and providing knowledge support to the government.

B. Support by Other Development Partners

81. The United Nations Development Programme (UNDP) is supporting Nepal in renewable energy, wetland biodiversity conservation, Terai landscape management focusing on protected areas, urban environment improvement, disaster risk management, and climate change adaptation and mitigation measures (Appendix 22).

82. The World Bank is assisting in integrating environmental safeguards in socio-economic development initiatives, including sustainable environmental management and conservation of natural resources, as well as in supporting the government in implementing two components of the SPCR. Support is provided specifically for poverty alleviation, integrated water resources management, agriculture and food security, clean energy, irrigation and water resources management, rural roads development, and in climate change and disaster risk management (Appendix 23).

83. The United Kingdom’s Department for International Development (DFID) supports the strengthening of governance, health and education, gender empowerment, climate change adaptation, disaster risk management, forestry and biodiversity protection, and drinking water supply and sanitation (Appendix 24). The Japan International Cooperation Agency (JICA) supports disaster prevention, watershed management, alternative and renewable energy, sustainable transportation, agriculture development, solid waste management, and related socio-economic development activities. The Swiss Agency for Development of Cooperation (SDC) supports community forestry, rural infrastructure, community irrigation and flood protection, and good governance activities. The Danish International Development Agency (DANIDA) supports the government in alternative energy, community forestry, and environmental conservation. The German Federal Enterprise for International Cooperation (GIZ) supports energy efficiency, rural infrastructure, and urban environment conservation. The United States Agency for International Development (USAID) supports sustainable forestry management, agriculture, health, governance, education, and social development sectors.

84. The Government of Nepal, in collaboration with ADB, the International Federation of Red Cross and Red Crescent Societies (IFRC), the Office for the Coordination of Humanitarian Affairs (OCHA), UNDP, the United Nations International Strategy for Disaster Reduction (UNISDR), the World Bank and others, has formed the Nepal Risk Reduction Consortium (NRRC) to prioritize and implement key elements of the National Strategy for Disaster Risk Management. Donor coordination groups have also been formed to coordinate activities in climate change, food security, and good governance. IUCN Nepal and WWF Nepal are the leading agencies in supporting the government in the conservation of natural resources and biodiversity. ICIMOD supports economically and environmentally sound mountain development and works towards improving the living standards of the mountain communities.

Figure 7. Sector-wise Distribution of ADB Portfolio in Nepal as of 31 Dec 2013

Urban Sector 16%

Multisector 1%

Transport & ICT 16%

Finance 6%

Energy 17%

Education 10%

Agriculture and Natural Resources

26%

Trade and Industry

3%

Public SectorManagement

5%


ACHIEVEMENTs, KEY IssUEs, ANd CHALLENGEs

485. Nepal has the potential to achieve higher and more inclusive growth. Although one of the smaller countries in South Asia, Nepal is endowed with rich natural resources and is home to immense diversity in terms of geology, biodiversity, ethnicity, religion, and language. Its key sectors of comparative advantage include hydropower, tourism, and commercial agriculture. Nepal can also benefit significantly from regional economic cooperation and integration with large and fast-growing neighboring economies.74

A. Achievements

86. Nepal has formulated environmental policies, acts, and regulations, including climate change policies; a national strategy for disaster risk management, a draft disaster management act, and NAPA/LAPA preparations; and has also developed sector environment policies, which provides sufficient guidance for overall safeguards, and climate change and disaster risk management mainstreaming in development activities along with their monitoring and enforcement. The government policy of gradually expanding protected areas and community forests has largely assisted in maintaining forest coverage and biodiversity. The quality of environmental assessment has improved over time. Public awareness about environment conservation is growing. The environment, climate change, and disaster risks are being incorporated in school and university curricula. Climate change policies and plans are steering the government’s efforts to achieve climate and disaster-resilient

development. National and local-level disaster management plans, early warning systems, and a disaster preparedness framework have been prepared for pre- and post-disaster response. The government has also prepared air, water, and noise quality standards (Appendix 25), and is readying a digitized national water-induced hazard maps. The enforcement of safeguards is improving with the relative political stability and improved law and order situation achieved following the formation of the constituent assembly and the elected government.

87. There have been notable achievements in environmental management and progress in climate change adaptation and disaster risk management in Nepal. The establishment of a high-level Environment Council and Climate Change Council; the climate change division and Department of Environment in MOSTE; environment sections in the District Development Committees; and institutional responsibilities for the protection of national parks (guarded by the Nepal Army), conservation areas (by dedicated management committees), and forest by communities are key institutional achievements for ensuring environmental safeguards. Government ministries are involved in environmental management and climate change programs, and most of these agencies have permanent or temporary environment and climate change units or sections. Focal government ministries coordinate to tackle water-induced disasters, forest protection and soil conservation, and disaster management activities. The multi-sector climate change initiatives

74 ADB. 2014. Development Effectiveness Brief: A Partnership for Inclusive Development. Kathmandu.


coordination committee (MCCICC) and NRRC are mechanisms employed by the government and development partners to address climate change and disaster management activities.Community vulnerability indexes to disaster have been prepared, and local disaster risk reduction committees have been established.

B. Key Issues and Challenges

88. Nepal continues to face major regional, rural-urban, and social disparities. Poverty is still high in rural areas and among socially disadvantaged groups, causing rural-urban migration for jobs. Gender inequality is high, with the country ranking 102nd out of 148 countries in the gender inequality index in 2012.75 The key issue associated with achieving environmentally sustainable development has been Nepal’s poverty and its prolonged political crisis. The fluid political environment has resulted in weak governance,

encouraging overexploitation and illegal trade of natural resources in the absence of proper monitoring and enforcement. Legislation is not effectively enforced and offenders are seldom penalized. Confusion still persists regarding how governance will be organized once a federal political system is in place. Weak governance has paved the way for deforestation, loss of biodiversity, and environmental degradation. The Siwalik region and mid hills are facing illegal excavation in riverbeds, overharvesting of MAPs and NTFPs, deforestation and land degradation. Urban areas are experiencing excessive groundwater extraction and environmental degradation (air and water pollution, solid wastes), conversion of fertile arable land into built-up areas, and infrastructure development that is unconcerned with environmental protection and risks of climate change. The challenge is also to implement safeguards in the development of future urban areas, as urban growth in Nepal is still low but is expected to rise rapidly in the

75 ADB. 2014. Development Effectiveness Brief: A Partnership for Inclusive Development. Kathmandu.



future. Sector policies formulated over the years are disjointed, and lack environmental sensitivity. They remain largely ineffective in balancing the environment with development. Even the current set of environmental policies, acts, and regulations date back to about a decade and a half and require thorough updating to make them harmonized with the new legal provisions, and to integrate newly emerging issues like climate change and disaster risk management.

89. The hardships in rural areas, added to the effects of remittances, have led to steady rural-urban migration and, increasing human pressure on land, water, and vegetation in cities and emerging towns. The increasing number of people without access to basic urban facilities like clean water supply, wastewater and solid waste management, and an energy-efficient transportation system is causing irreversible damages to the health and urban environment. Unplanned cities with high population density in earthquake-prone zones have multiplied exposure and vulnerability to seismic risks.

90. The fragile and young geology of Nepal is also one of the key challenges to constructing environmentally sustainable infrastructure. The non-engineered and heavy equipment-based construction of rural infrastructure, particularly rural roads, has led to the loss of forests, watershed degradation, and drying of water sources, and is one of the main causes of massive landslides. Extensive deforestation and uncontrolled extraction of riverbed materials from the Siwalik and Mahabharat hills are degrading and damaging the ecological balance, risking human lives and property in the area as well as downstream. The situation is further aggravated by the effects of climate change, which have a huge impact on livelihoods and local economies.

91. The lack of basin-wide integrated water resource planning and unplanned damming of rivers for power generation and irrigation has serious environmental implications, including the loss of aquatic biodiversity and causing water use conflicts. Strategic environmental assessments of national policies and programs are



not a mandatory requirement and generally not conducted, and the cumulative environmental impacts of such development plans and policies are largely not considered. These gaps have led to uninformed planning, causing irreversible loss of biodiversity and affecting other downstream water uses. Weak coordination among disaster management-related agencies, low levels of preparedness, rudimentary early warning systems, and a lack of preparedness for disaster prevention, relief, and rehabilitation programs have increased vulnerability and the risk to thousands of lives, and threaten billions of rupees worth of property.

92. Effective environmental sustainability would be enhanced if proposed investment programs and policies were assessed by taking into account an appropriate ecosystem scale—outside the region (such as those associated with GHG emissions), transboundary environmental impacts within the region (such as those associated with biological corridors), and within the country (with watershed management). Many of the mountain ecosystems and their services are transboundary in nature; their conservation and management demands regional cooperation.



RECOMMENdATIONs

5A. Environmental Policy and Governance

93. Update the national environment policy, act and regulation. The strengthening of country safeguard systems is an important agenda of the government, development partners including ADB and World Bank as well as the MDGs. Policies and laws are the key tools to steer development activities towards environmentally sustainable development and green growth. In this regard, NEPAP, EPA and EPR require an urgent and thorough overhaul to effectively address the environmental safeguards agenda in the context of changed legal provisions and emerging challenges such as climate change and disaster risk. An update in the national policy and regulations for the environment would integrate the lessons learned and international best practices, clearly define the compliance monitoring procedure and reporting framework, and advise on an effective mechanism for interagency coordination and collaboration. Sector environment policy and procedures would then be prepared or updated following the national environment policy and regulation. The environment protection council, and climate change council are important national safeguards supervisory and policy coordination bodies, which requires re-activation. Government also requires to prepare a national pollution control strategy and action plan.

94. Environmental mainstreaming in national policies and programs. Strategic environmental assessment (SEA) of national policies and programs are not mandatory as per the current legal provisions. In the context of current government policy to focus on implementing larger infrastructural developments in energy, transportation, and urban services, the use of

the SEA tool has become more pertinent than ever. Hence, an updated national environment policy would also make SEA mandatory for all national policies, plans, and programs before their implementation. Priority should be given to conducting SEA of master plans in the hydropower, irrigation, and forestry development sectors, and strategic plans for urban infrastructure, roads, and rural infrastructure development.

95. Institutional strengthening. Updating national and sector environmental policies and regulations is important. However, effective implementation of policies and regulations can be achieved only when government institutions possess clear responsibilities, capacity, and sufficient resources. Enforcement of legal provisions has been the key barrier to effective environmental governance and a transition towards sustainable development. Hence, the institutional strengthening of MOSTE, in particular the newly established Department of Environment; and strengthening of the safeguard sections of the major infrastructure agencies, particularly in the energy, urban services, and transportation sectors has become urgent. Similarly strengthening capacity of local bodies (DDCs, VDCs) will ensure sustainable development initiatives at local level. An institutional mechanism is also required for effective interagency coordination for better sharing of information and harmonizing of safeguarding activities.

B. Environmentally Sustainable Infrastructure Development

96. Promoting environment-friendly rural infrastructure. Infrastructure development,


particularly roads, irrigation, and hydropower plants in the fragile geology of the hills and mountains, faces multiple environmental challenges. Infrastructure implemented without proper environmental protection measures has caused environmental degradation and loss of forest, and has accelerated landslides, soil erosion, flooding, and other hazards. Such roads have remained nonoperational after the first monsoon, and are the main reason for frequent vehicular accidents. The damage is clearly evident in the case of rural roads, particularly non-engineered roads built using mechanized methods instead of following labor-based methods. Water seepage from poorly designed irrigation canals also causes slides and erosion. The scale of damage is lower in infrastructure supported by development partners where technically more sustainable construction methods are adopted, achieving a balance between environmental protection and infrastructure development. Existing rural road design standards and associated working procedures should be updated based on a diagnostic study of the environmental and economic costs of adopting labor-based versus equipment-supported technologies. Standards should include tree plantation and bio-engineering as an integral part of the design of rural infrastructure. Bio-engineering, as an effective and successful method of stabilizing hill slopes through natural and vegetative methods, is a technology that should be promoted and institutionally adopted in all the infrastructure development agencies, particularly in strategic and rural road departments. The government’s ad hoc decision to waive EIA requirements for hydropower plants below 50 MW and for transmission lines of all capacities to address the ongoing energy crisis at the cost of the environment should be critically reviewed during the updating of the NEPAP, EPA and EPR. It may be more rational to simplify and minimize the time required for EIA approval instead of waiving the requirements entirely. The updated policy should also discourage the routing of transmission lines and roads through forest areas. Rather, a clear policy should be adopted by the government for compensating for the loss of land and property.

97. Regulating urban growth. Unplanned, unregulated, and rapid urban growth, without the urban services to support it, has seriously affected the air, land, and water quality and subsequently

the health and safety of those living in the towns and cities of Nepal. Unmanaged urban sprawl should be contained by the government by regulating growth. Urban development should be based on integrated town development and land use plans. Government capacity should be strengthened for stricter monitoring and enforcement under the “polluters pay” principle. The government should focus on developing healthy cities with proper water supply and sanitation services, a sustainable urban transport system, solid waste management, environmental protection of river and water bodies, regeneration of heritage sites, informal sector management, restrictions on over-extraction of groundwater, protection of open areas, and use of energy-efficient technologies.

C. Natural Resources and Biodiversity Conservation

98. Combating watershed degradation. The sustainable development agenda calls for steps to minimize losses from soil erosion, landslides, flood, and desertification; the relevant MDG calls for the protection of forests to reverse the loss of environmental resources and land degradation. The strategies of ADB and other development partners call for the promotion of natural resource management to protect and maintain the productive potential of land, forest, and water resources. Ecosystem degradation in the hills due to large-scale deforestation and uncontrolled extraction of riverbed material has caused massive and irreversible environmental damages in fragile landscapes. This has had direct impacts such as the loss of forests and biodiversity, the drying out of water sources, and soil erosion in the hills; it has also caused floods and loss of agriculture land in Terai. The process of degradation has also endangered the investments made by the government and development partners in agriculture and infrastructure development. In this regard, the recent decision of the government to declare the lower hills (the entire Siwalik range) a watershed conservation area is a significant step towards controlling degradation, protecting biodiversity and habitats, and supporting sustainable environmental services. A recent study76 recommends strict regulation and monitoring by the

76 Government of Nepal, Ministry of Local Development/LGCDP/UNDP/UNEP. 2011. A Review of Current Practices of Revenue Generation from Natural Resources for the Local Bodies of Nepal. Kathmandu.


government; promotion of mobilizing community in monitoring (such as river wardens); environmentally safe and controlled material extraction; and the introduction of resource pricing and permits for extraction by District Development Committees.

99. Sustainable use of natural resources. The government’s conservation program should be commensurate with the sustainable use of natural resources, including in traditional use by indigenous communities. Forests should be strictly protected through the control of illegal deforestation and poaching; and exploitation of natural resources and medicinal herbs such as Yarsagumba (Cordyceps sinensis) and Chiraito (Swertia chirayita), which needs to be regulated with strict monitoring. The government should give priority to protecting pollinators, forages, and other forest trees, while promoting agro-forestry. This will promote agricultural production and maintain ecological services (Agro-biodiversity Policy, 2007, revised 2014, GON).

100. Biodiversity Conservation. The construction of large-scale projects causing loss of forest area, human encroachment, and destruction of water bodies threatens Nepal’s extremely rich natural resources. Air and water pollution, loss of forests, and the damming of rivers have serious impacts on terrestrial and aquatic biodiversity, with many species becoming vulnerable, and some already extinct. Protection of aquatic biodiversity should be prioritized by proper development of legislation and protection of habitat area through strategic planning of dam locations and proper mitigation measures to protect the movement corridors and spawning grounds of threatened species. The capacity and resources of relevant government agencies should be strengthened so they can undertake proper management of national parks and conservation areas and deal with poaching and illegal trade of wildlife. Development partners have been supporting the government in forest protection and biodiversity conservation activities. The government needs support to continue research on the impacts of natural and human activities on natural resources and to come up with measures to mitigate them.

101. River Conservation. The direct discharge of sewage and solid waste and the diversion of water from rivers for various purposes have dried

up and polluted the urban rivers. For example, Kathmandu’s Bagmati River, which is considered highly important to Hindus and revered as the spiritual source of the Bagmati Civilization, has become polluted and biologically dead for decades. The Bagmati and other urban rivers require cleaning up, augmentation of flow, and protection of their overall environment. ADB is supporting the government in improving the environment of the Bagmati River through the construction of an integrated sewerage system, wastewater treatment plants, beautification of the river corridor, and augmenting water in the river during the dry season. Similar interventions are required for the environmental protection of all the major tributaries of the Bagmati River in the Kathmandu Valley, and the polluted rivers in other cities. The government should adopt integrated water resource management by establishing dedicated river basin organizations to ensure basin-wide water use management and protection of their environmental integrity.

D. Climate Change

102. Adaptation to the Risks of Climate Change. Nepal urgently needs to mainstream climate change risks in its development plans and programs to adopt sufficient adaptation and mitigation measures in order to make development activities climate resilient. Local communities needs to be closely involved in promoting their indigenous knowledge while also receiving information regarding improved methods of adaptation that will reduce their vulnerability. MOSTE needs technical support to systematically implement NAPA/LAPAs. The Department of Hydrology and Meteorology requires to be capable of instantly processing real-time series data for the precise climatic projection at sub basin levels. This information will be useful for infrastructure design, farming, and disaster prevention planning. ADB and the World Bank are supporting the government under the SPCR program in strengthening their capacity to address climate change risks, and protect watersheds and water basins from the impacts of climate change. Investments in climate change should be better harmonized between the government and its development partners to create an environment of complementarity and the generation of synergy for a consolidated result.


103. Reducing Black Carbon emissions. A comprehensive national plan of action, taking into account the emissions from different sectors, should be developed to control Black Carbon. Various practices could be adopted such as providing clean cooking and heating energy; enforcement of the law for the application of particle filters in diesel engines; substituting the use of biomass with the use of improved cooking stoves; promoting the use of biogas; and restricting the open-field burning of agricultural waste and forest refuse.

104. Scaling up of renewable energy. The use of renewable energy should be promoted to minimize GHG emissions. Renewable energy is important as an alternative measure to address the current energy crisis in the country. Consumption of fossil fuel should be minimized, and use of clean and alternative energy like hydropower, solar energy, and wind energy should be promoted in both rural and urban areas. Use of electric vehicles and mass transportation systems should be promoted to reduce vehicular emissions. ADB and Nepal’s development partners are supporting the promotion of renewable and alternative energy.

E. Disaster Risk Management

105. Disaster risk management. The government has drafted the disaster risk management act, which is awaiting endorsement by the Parliament. But it can only prepare a disaster management plan if it has complete information on the vulnerable areas. In this regard, ADB is supporting the government in preparing digitized hazard maps of major river basins. Similar supports are also being provided by other development partners such as the World Bank, UNDP and DFID.

Participatory approaches in disaster prevention, preparedness, and rehabilitation, and a mechanism for effective cooperation and coordination among stakeholders, are essential for effective responses in disaster situations. Community involvement in planning and implementing a risk management plan at a local level should be given priority. Early flood warning systems should be established in vulnerable areas.

F. Knowledge Management

106. Central database and knowledge management. A lack of information and baseline data is a major hurdle to proper and informed planning. In this regard, the government requires support in establishing an environmental database management system as a central pool of environment and climate change information, set up in MOSTE. ADB is supporting MOSTE in establishing such a central climate change database management system under the SPCR component. This database may also set up an e-library for stakeholders to have quick and easy access to information.

107. All three components of safeguards: environment, climate change, and disaster risk management, may form a part of school and college curricula to make future generations aware of the importance of environmental conservation and adaptation to the risks of climate change. Similarly, the curriculum of the government’s Staff College, which regularly trains all levels of government staff—planners, policy makers and implementers—may include modules on environmental safeguards and climate change to raise awareness of the need to mainstream these issues into their plans and programs.


APPENDIX 1

Physiographic Regions in Nepal

Table A.1.1: Physiographic Regions in Nepal

Physiographic region Altitude (m) Area (km2) Topographical feature Climate Mean Tem-perature °C

Terai 60–500 21,104 (14.3%) Flat land with slope gradients from 0.2% to 1%

Hot monsoon and mostly tropical

<20Siwalik 200–1,000 18,858 (12.8%) Consisting of Dun valleys, about 25%; gradient < 300 m and rarely > 1000 m (75%)

Hot monsoon and mostly sub-tropical

Middle Mountains 1,000–2,000 44,436 (30.1%) Tropical valleys and elevated plains, about 6%; relief up to 1000 m is common, maximum up to 2000 m (94%)

Sub-tropical to warm temperate monsoon

15–202,000–3,000 Cool temperate

monsoon

High Mountains 3,000–4,000 29,594 (20.1%) Sub-tropical–temperate valleys, about 10%; average relief 2000 m

Sub-alpine10–15

4,000–5,000 Alpine

High Himalaya Above 4,000 33,492 (22.7%) Dry Trans-Himalayan area Tundra type and arctic

< 10

TOTAL 147,484

Sources: LRMP. 1986. Land Systems, Land Utilisation and Agriculture Forestry Reports. Land Resources Mapping Project. Kenting Earth Sciences. Ottawa. B. Carson and B. Sharma. 1992. An Ecological Classification System for Planning in Nepal. Main Report. Master Plan for Horticulture Development. HMGN/ADB.S. Vaidya and R.P. Gautam. 2008. Development Profile of Nepal 2008. Informal Sector Research and Study Centre. Kathmandu.P.R. Shakya et al. 2011. Nepal Biodiversity Resource Book. ICIMOD/Government of Nepal/UNEP.

APPENDIX 2

Ecological Zones in Nepal

Table A.2.1: Ecological Zones in the Terai, Hill, and Mountain Districts of Nepal

Ecological zonesAdministrative classification

TotalTerai Hill Mountain

No. of districts 20 39 16 75

Total area (km2) 33,800 (23.0%) 61,600 (41.8%) 51,800 (35.2%) 147,184 (100%)

Lower tropical zone (< 300 m altitude) 73.4% 2.7% 18%

Upper tropical zone (300–1000 m) 21.6% 29.1% 1.6% 18%

Sub-tropical zone (1000–2000 m) 4.0% 41.9% 10.8% 22%

Temperate zone ( 2000–3000 m) 14.2% 17.5% 12%

Sub-alpine zone (3000–4000 m) 5.7% 18.2% 9%

Alpine zone (4000–5000 m) 3.1% 18.6% 8%

Trans-Himalayan zone (3000–5000 m) 1.0% 20.2% 8%

Nival/Arctic zone (> 5000 m) 1.9% 12.9% 5%

Notes: 1. Percentages of ecological zones are taken from Table 8, p. 22. Totals are less than 100%, but more than 99% due to rounding errors and water bodies that have not been included.2. Terai districts include the whole of the Terai physiographic region, about 60% of the Siwalik region, and some areas of the Middle Mountain region. Hill districts include about 40% of the Siwalik region, most parts of the Middle Mountain region, and some parts of the High Mountain region. Mountain districts include some parts of the Middle Mountain region, most parts of the High Mountain region, and all of the High Himalaya region.

Source: J.B. Lilleso et al. 2005. The Map of Potential Vegetation of Nepal – a forestry/agro-ecological/biodiversity classification system. Forest and Landscape Development and Environment Series 2-2005 and CFC-TIS Document Series 110. Kathmandu. Table No. 8. p 22.


APPENDIX 3

Land Use in Nepal

Table A.3.1: Land Use in Nepal

Land usePhysiographic Regions (‘000 ha)

TotalHigh Himalaya High Mountain Middle Mountain Siwalik Terai

Cultivated land 8 245 1,222 259 1,234 2,968 (20.1%)

Non-cultivated inclusiona 1 128 667 59 123 978 (6.6%)

Grasslands 884 510 293 21 49 1,757 (11.9%)

Forest landb 154 1,637 1,815 1,448 563 5,617 (38.1%)

Shrub land 67 176 388 29 30 690 (4.7%)

Other landsc 2,236 264 57 70 111 2,738 (18.6%)

Total 3,350 2,960 4,442 1,886 2,110 14,748 (100%)

% 22.7 20.1 30.1 12.8 14.3 100

a Non-cultivated inclusions: these are small pockets of land close to cultivated lands; they may contain barren areas, trees, shrubs, or grass.b Forest land: having at least 10% crown cover but also including small pockets of plantation and burned areas. c Other lands: all land areas not included in other categories, may include rocky areas, lakes, ponds, waterways, or settlements.

Note: The Master plan for the Forestry Sector adopted the Land Resources Mapping Project (LRMP) data of 1978–79.

Source: HMGN/ADB/FINNIDA. 1988. Master Plan for the Forestry Sector, Nepal: Forestry Sector Policy. His Majesty’s Government of Nepal, Asian Development Bank, Finnish International Development Agency. Kathmandu.

Since the results of the LRMP, no comprehensive survey has been carried out to reassess land use distribution in Nepal, although agriculture and forestry surveys have been carried out periodically.

Table A.3.2: Comparative Land Use Pattern in Nepal

Types of Land Use1986 2001

Area (‘000 ha) % Area (‘000 ha) %

Cultivated land 2,968.0 20.0 3,090.8 21.0

Non-cultivated inclusion 986.9 6.8 1,030.4 7.0

Forested land 5481.0 37 4,268.2 29.0

Shrub land/degraded forest 688.4 4.6 1,560.1 10.6

Grasslands 1,757.3 11.8 1,766.2 12.0

Other 2485.8 17.0 2,619.8 17.8

Snow area 506.3

Barren land 13.4

Rocky area 1,966.1

Stone/sand/eroded 328.0 2

Water/Lake 11.6 0.08 382.7 2.6

Urban area 10.9 0.07

Total 14,718 100 14,718.2 100

Notes: 1. Land use data for 1986 was taken from Land Resources Mapping Project (LRMP) data (1978). 2. The Department of Forest Research and Survey (DFRS), Ministry of Forest and Soil Conservation, estimated land use data for 2001. DFRS used the forest land and shrub land data of 1994 prepared by the National Forestry Inventory without assessing changes in forest and shrub area.

Source: Government of Nepal, Central Bureau of Statistics. 2008. Environment Statistics of Nepal 2008. Kathmandu. Table 5.1. p. 53.


APPENDIX 4

Forest Area in Nepal

Table A.4.1: Changes in Population and Forest Area in Nepal1965 1978 1985 1994 2011 2013

Population (‘000) 10,374 13,421 16,975 19,680 26,621 27,371

Forest area (‘000 ha) 6,466.9a 6,306.7a 6,223.8b 5,828.0c 5,733.7d 5,505.0

Forested 6,078.9 5,616.8 5,515.8 4,268.8 … 3,356.8

Shrub land 388.0 689.9 708.0 1559.2 … 2,148.2

Total forest area as % of total land 43.8 42.8 42.2 39.5 38.9 38.3

Forest area/person (ha/person) 0.62 0.42 0.37 0.3 0.22 0.21

a Land Resources Mapping Project (LRMP), 1986.b HMGN/ADB/FINNIDA. 1988. Master Plan for the Forestry Sector, Nepal: Forestry Sector Policy. His Majesty’s Government of Nepal, Asian Development Bank, Finnish International

Development Agency. Kathmandu. The master plan readjusted LRMP forest data of 1978, assuming about 15,000 ha loss of forest annually. Forested area denotes forest cover with trees with crown cover greater than

10%.c His Majesty’s Government of Nepal, Ministry of Forest and Soil Conservation. 1990. Forest Resources of Nepal (1987–1998). National Forestry Inventory. Department of Forest Research

and Survey. Kathmandu. The forest inventory was based on satellite image analysis and air photo interpretation. While comparing LRMP data from 1978, forested area decreased annually at the rate of 1.3% in the

Terai plains and 2.3% in the hills and mountains. In the whole country, from 1978/79 to 1994, forested area decreased at an annual rate of 1.7%, whereas total forest area including shrub decreased at a rate of 0.5%. About 1.35 million ha of forested area with a crown cover greater than 10% was lost between 1978 and 1994, of which about 0.87 million ha (64.5%) was degraded to shrub area. During 1978–1994, Nepal lost an average of 84,000 ha of forest annually.

d Government of Nepal, Ministry of Forest and Soil Conservation. 2011. Forest Area in Nepal. Department of Forest. Kathmandu. The Ministry of Forest and Soil Conservation estimated district-wise forest area on 25 June 2011, assuming an average annual loss of 8,800 ha of total forest including shrub since 1994.

This appears to be an overestimation.

Source: Forest data

The Food and Agriculture Organization estimated that Nepal had 3,636,000 ha of forest cover in 2005, and that from 2000 to 2005, it lost about 264,000 ha of forest. This was a deforestation rate of about 1.4% per year (average 53,000 ha per year).1 The World Bank estimated that Nepal had 3,530,400 ha of forest in 2010. This is defined as land under natural or planted stands of trees of at least 5 meters in situ, whether productive or not.2

Table A.4.2: Changes in Forest Area in Nepal between 1965 and 20131965–1978 1978–1994 1994–2013a Area in 2013

(‘000 ha) (‘000 ha/yr (‘000 ha) (‘000 ha/yr) (‘000 ha) (‘000 ha/yr) (‘000 ha)

Loss of total forest area –160.1 –12.3 478.7 –29.9 –323.0 –17.0 5,505.0

Forest area –462.0 –35.5 –1,348 –84.3 –912.0 –48.0 3,356.8

Shrub area +301.9 +23.2 +869.3 +54.3 +589.0 +31.0 2,148.2

a ADB/CEN estimate.

Note:1. Devegetated forest area and degraded shrub land are being converted to other purposes such as agriculture, grazing, expansion of settlements, and development of infrastructure and other facilities. Some of the degraded forest/shrub land also becomes barren/wasteland. Loss of total forest area including shrub land in the last 48 years (1965–2013) is estimated at 962,500 ha, with an average annual loss of 20,050 ha. During this period, 2,722,100 ha (44.8% as of 1965) forested area having trees with crown cover greater than 10% was lost/devegetated at an annual rate of 56,710 ha, and of this total area 1,760,200 ha was degraded to shrub land. 2. The ADB/CEN study makes the following assumptions in estimating forest area in 2013: on average 48,000 ha of forest with crown cover greater than 10% is estimated to have been lost annually between 1994 and 2013; and80% of such devegetated forest is degraded to shrub area, with the rest used for other purposes or left barren or eroded. However, forested area was devegetated at the rate of 62,400 ha between 1965 and 1994. For our estimates, it has been assumed that the degraded forests and shrub lands handed over to communities in the past 25 years have grown into good forests with a high density of tree species under community forestry management, and thus a lower average devegetation rate of 48,000 ha per year has been considered.

1 Geography of Nepal, http://en.wikipedia.org/wiki/Geography_of_Nepal2 Forest area (% of land area) in Nepal, http://www.tradingeconomics.com/nepal/forest-area-percent-of-land-area-wb-data.html


APPENDIX 5

Changes in Population and Agriculture Area in Nepal

Table A.5.1: Changes in Population and Agriculture Area in NepalArea in ‘000 ha

1961/62 1971/72 1981/82 1991/92 2001/02 2011/12

Population (‘000) 9,413.0 11,556.0 15,022.8 18,491.1 23,151.4 26,621.0

Total holdings (‘000) 1,540 1,721 2,194 2,736 3,364 3,831

Agriculture land – total area of hold-ings (‘000 ha)a

1,685 1,654 2,464 2,597 2,654 2,526

Arable land (‘000 ha)b 1,563 1,552 2,279 2,314 2,444 2,292

Temporary crops (‘000 ha) 1,551 1,537 2,250 2,285 2,326 2,123

Permanent crops (‘000 ha) 12 15 29 29 118 169

Average holding size (ha) 1.11 0.97 1.13 0.95 0.79 0.66

Agriculture land as % of total land 12.4 11.2 16.7 17.6 18.0 17.1

Agriculture land ratio (person/ha) 5.6 7.0 6.1 7.1 8.7 10.5

a Agriculture land includes land area under temporary and permanent crops, fallow land, pasture, and non-agricultural land – woodland, forest, Kharbari (thatch grass area), ponds, etc.

b Arable land denotes land area under temporary and permanent crops.

Note: The Land Resources Mapping Survey, using satellite image analysis and aerial photo interpretation, revealed 2.97 million ha of cultivated land and 0.98 million ha of non-cultivated inclusion in 1978/79 while the Environment Statistics of Nepal 2008 produced by the Central Bureau of Statistics reported 3.09 million ha of cultivated land in 2001. However, data from the National Agriculture Census reports indicate that agricultural land owned and operated by farming households was much lower—2.46 million ha in 1981/82 and 2.65 million ha in 2001/02, which was the maximum in the last 50 years. Farmers throughout the country have been cultivating land by clearing public land such as shrub land, grassland, and barren land as well as community land without legal title. There is no reliable data on such land. Meanwhile, farm sizes are constantly shrinking, decreasing to an average of 0.66 ha in 2011 from 1.13 ha in 1981. Small farmers predominate, with the percentage of farmers owning less than 0.5 ha at 47% in 2001/02 and % in 2011/12. The area under annual crops declined by 203,000 ha in the decade leading up to 2011/12, with consequences for food grain production.

Source: Government of Nepal, Central Bureau of Statistics. National Sample Census of Agriculture. Kathmandu.


APPENDIX 6

Protected Areas of Nepal

Table A.6.1: Protected Areas of Nepal

SN Protected areas Physiographic Region Area (km2) Buffer Zone

(km2)Year of establishment

IUCNCategorya

1 Banke National Park Terai 550 334 2010 I & II

2 Bardia National Park Terai 968 327 1976 II

3 Chitwan National Park Terai–Siwalik 932 750 1973 (1984b) II

4 Khaptad National Park HM–HH 225 216 1984 II

5 Langtang National Park HM–HH 1,710 420 1976 II

6 Makalu Barun National Park HM–HH 1,500 830 1991 I & II

7 Rara National Park HM 106 198 1976 II

8 Sagarmatha National Park HM–HH 1,148 275 1976 (1979b) II

9 Shey-Phoksundo National Park HM–HH 3,555 1,349 1984 II

10 Shivapuri-Nagarjun National Park MM 159 2002 II

11 Dhorpatan Hunting Reserve MM–HH 1,325 1987 VIII

12 Koshi Tappu Wildlife Reserve Terai 175 173 1976 IV

13 Parsa Wildlife Reserve Terai 499 298.2 1984 IV

14 Shuklaphanta Wildlife Reserve Terai 305 243.5 1976 IV

15 Annapurna Conservation Area MM–HH 7,629 1986 (1992c) VI

16 Api-Nampa Conservation Area 1,903 2010 VI

17 Blackbuck Conservation Area Terai 16 2009

18 Gaurishankar Conservation Area 2,179 2010 VI

19 Kanchenjunga Conservation Area 2,035 1997 VI

20 Manaslu Conservation Area MM–HH 1,663 1998 I

Total 28,582 5,413.7

MM = Middle Mountains, HM = High Mountains, HH = High Himalaya.

a IUCN Protected Areas Categories System: Ia. - Strict Nature Reserve. Protected areas that are strictly set aside to protect biodiversity and also possibly geological/geomorphological features, where human visitation, use, and impacts are strictly

controlled and limited to ensure protection of the conservation values. Such protected areas can serve as indispensable reference areas for scientific research and monitoring.Ib. - Wilderness Area. Protected areas that are usually large unmodified or slightly modified areas, retaining their natural character and influence, without permanent or significant human habitation, which

are protected and managed so as to preserve their natural condition. II - National Park. Large natural or near natural areas set aside to protect large-scale ecological processes, along with the complement of species and ecosystems characteristic of the area, which also

provide a foundation for environmentally and culturally compatible, spiritual, scientific, educational, recreational, and visitor opportunities.III - Natural Monument or Feature. Protected areas set aside to protect a specific natural monument, which can be a landform, sea mount, submarine cavern, geological feature such as a cave or even a

living feature such as an ancient grove. They are generally quite small protected areas and often have high visitor value. IV - Habitat/Species Management Area. Protected areas aiming to protect particular species or habitats and management reflect this priority. Many Category IV protected areas will need regular, active

interventions to address the requirements of particular species or to maintain habitats, but this is not a requirement of the category. V - Protected Landscape/Seascape. A protected area where the interaction of people and nature over time has produced an area of distinct character with significant, ecological, biological, cultural, and

scenic value: and where safeguarding the integrity of this interaction is vital to protecting and sustaining the area and its associated nature conservation and other values. VI - Protected area with sustainable use of natural resources. Protected areas that conserve ecosystems and habitats, together with associated cultural values and traditional natural resource management

systems. They are generally large, with most of the area in a natural condition, where a proportion is under sustainable natural resource management, and where low-level non-industrial use of natural resources compatible with nature conservation is seen as one of the main aims of the area.

b Included on the World Heritage List.c Officially gazetted.


APPENDIX 7

Government Restrictions on the Harvest and Sale of Plant and Tree Species in Nepal

Table A.7.1: Government Restrictions on the Harvest and Sale of Plant and Tree Species in Nepal Government restrictions Medicinal and aromatic plants and tree species

Banned for collection, use, sale, distribution, transportation, and export

Kutki (Picrorhiza scrophulariiflora), Okhar bark (Juglans regia), and Panch Oule (Dactylorhiza hatagirea)

Banned for export outside the country without processing

Jatamansi (Nardstachys grandiflora), Jhyau (Lichean spp.), Loth salla (Taxus spp.), Sarpagandha (Rauwolfia serpentine), Shilajeet (Rock exudat), Sugandhawala (Valeriana wallichii), Talispatra (Abies spectabilis), and Yarsagumba (Cordyceps sinensis)

Banned for felling, transportation, or export for business purpose (tree species)

Chanp (Michelia champaka m. kisopa), Bijayasal (Pterocarpus marsupium), Khayar (Acacia catechu), Okhar (Juglans regia) in National Forests only, Sal (Shorea robusta), Satisal (Dalbergia latifolia), and Simal (Bombax ceiba)

Source: Government of Nepal, Ministry of Forest and Soil Conservation. 2001. Nepal Rajpatra. 51 (36). Kathmandu.

APPENDIX 8

Road Network in Nepal

Table A.8.1: Road Network in Nepal

YearStrategic Road Network Length (km) Population affected

per km of roadRoad Density (km/100 km2)Blacktopped Gravelled Earthen Total

1998 2,905 1,656 179 4,740 3,901.08 3.22

2000 2,974 1,649 171 4,794 3,857.13 3.26

2002 3,029 1,664 168 4,861 4,762.73 3.30

2004 3,495 884 614 4,993 4,636.23 3.39

2006/07 4,258 2,062 3,079 9,399 2,463.08 6.39

2009/10 4,952 2,065 3,818 10,835 2,136.72 7.36

2011/12 5,574 1,888 4,173 11,636 2,287.88 7.90

Note: Population based on the census of respective period, i.e. 2001 and 2011.Source: Government of Nepal, Department of Roads. Road Network Data. http://dor.gov.np/documents/Road_Network_data.pdf


APPENDIX 9

Vehicle Registration in Nepal

Table A.9.1: Vehicles Registered in Nepal from 1989/90 to 2013/14 Type of vehicle Nepal Bagmati Zone

Bus/microbus 33,823 16,291

Truck/excavator/dozer/crane 65,172 20,007

Car/jeep/van/pickup 165,499 100,703

Motorcycle 1,294,439 578,452

Tractor/power-trailer 87,328 2,894

Tempo 7,511 2,518

Others 6,478 4,229

Total 1,660,250 725,094

Note: Most of the vehicles registered in Bagmati Zone are used in the Kathmandu Valley. The registration records pertain to the first six months of the year.

Source: Government of Nepal, Ministry of Physical Infrastructure and Transport. Vehicles registered in the first six months of 2070/71 B.S. http://www.dotm.gov.np/uploads/files/transport_registration_fiscal_year_2046_47_070_71_typewise.pdf

Table A.9.2: Development of the Vehicle Fleet in Nepal Vehicle 1989/1990 1994/1995 1999/2000 2004/2005 2009/2010 2013/14

All types 76,378 159,272 276,289 482,464 1,015,271 1,660,250


APPENDIX 10

Energy Consumption in Nepal

Table A.10.1: Energy Consumption in Nepal by Sector

Sector

Energy Consumption, ‘000 Tons of Oil Equivalent

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11a

Residential 7381.58 7512.13 7654.50 7778.20 7921.48 8103.48 8239.74 8364.02 8568.36 5806.63

Industrial 294.15 280.83 321.80 299.41 395.10 300.11 328.21 312.23 437.56 256.94

Transport 282.12 298.04 308.11 325.99 351.51 377.93 352.79 538.58 700.09 384.67

Commercial 115.46 122.66 124.73 125.17 89.72 72.15 114.63 70.53 77.46 51.24

Agriculture 65.14 67.76 67.84 72.37 67.77 70.64 59.14 85.54 108.16 58.47

Others 10.66 11.36 12.51 12.51 14.64 15.96 17.79 17.25 19.40 13.51

Total 8149.11 8292.78 8489.49 8489.49 8840.22 8940.27 9112.3 9388.15 9911.03 6571.46

a Data represents values from the first eight months of the fiscal year.

Source: Government of Nepal, Central Bureau of Statistics. 2011. Environment Statistics of Nepal 2011. Kathmandu.

Table A.10.2: Energy Consumption in Nepal by Type

SectorEnergy Consumption ‘000 Tons of Oil Equivalent

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11a

A. Traditional

Fuelwood 6,315.03 6,451.17 6,590.26 6,732.71 6,861.77 6,999.37 7,149.43 7,300.67 7,458.48 5,067.58

Agricultural Residue 305.61 312.67 319.91 327.62 328.63 337.17 336.91 344.54 354.57 238.85

Animal Dung 466.92 476.73 486.74 496.96 507.40 518.05 528.93 540.04 551.38 373.67

Sub-Total 7,087.56 7,240.57 7,396.91 7,557.29 7,697.80 7,854.59 8,015.27 8,185.25 364.43 5,680.10

B. Commercial

Coal 152.06 134.24 171.09 151.55 243.16 144.49 193.40 181.87 292.89 157.74

Electricity 118.86 127.48 140.17 156.57 163.53 179.68 190.06 182.29 219.89 147.73

LPG 56.33 64.79 76.41 89.64 93.58 108.09 111.87 133.80 163.09 105.76

Kerosene 328.89 296.59 264.43 203.15 192.81 168.32 132.05 59.63 47.46 19.69

Gasoline 49.72 53.00 53.40 59.44 63.64 80.00 79.24 97.57 127.51 75.76

HSD 257.72 266.95 266.74 279.45 261.93 272.93 269.38 415.12 545.08 284.39

LDO 2.21 0.56 0.54 0.08 0.27 0.16 0.28 0.35 0.22 0.00

Fuel Oil 13.56 12.99 9.89 0.65 0.03 1.24 0.64 0.00 0.00 0.00

Air Turbine Fuel 40.27 44.48 54.35 56.71 54.60 54.12 58.50 58.50 70.12 43.97

Other Petroleum 12.25 13.80 15.55 17.52 19.74 22.24 2.92 9.61 10.25 7.68

Sub-Total 1,028.87 1,014.88 1,052.57 1,013.46 1,093.29 1,031.35 1,038.34 1,198.74 1,476.51 842.72

C. Renewable

Biogas 31.68 35.82 38.72 43.35 47.56 52.13 55.94 60.84 66.04 46.08

Microhydro 0.98 1.11 1.24 1.34 1.53 2.12 2.64 3.19 3.89 2.44

Solar 0.02 0.04 0.05 0.06 0.07 0.07 0.10 0.13 0.15 0.10

Sub-Total 32.68 36.97 40.01 44.75 49.16 54.32 58.68 64.16 70.08 48.62

TOTAL 8,149.11 8,292.42 8,489.49 8,615.50 8,840.25 8,940.26 9,112.29 9,388.15 9,911.02 6,571.44

LPG = Liquefied Petroleum Gas, HSD = High Speed Diesel Oil, LDO = Light Diesel Oil.a Data represents values from the first eight months of the fiscal year.Source: Government of Nepal, Central Bureau of Statistics. 2011. Environment Statistics of Nepal 2011. Kathmandu.


APPENDIX 11

Emission of Air Pollutants in Nepal

Table A.11.1: Emission of Air Pollutants in Nepal

SourcesTSP (tons/yr) PM10 (tons/yr)

1993 2001 2005 1993 2001

Mobile sources

Vehicle exhaust 570 1,971 … 570 3,259

Road dust re-suspension 1,530 7,008 12,239 400 1,822

Stationary sources

Industrial/commercial fuel 582 … … 292 …

Domestic fuel combustion 2,328 … 630 1,166 …

Brick kilns 5,180 6,676 1,850 1,295 1,688

Himal Cement Factory 6,000 3,612 0a 800 455

Stone crushers … … 1,720 … 372

Industrial broilers … 28 28 … 15

Fugitive emissions

Refuse burning 385 687 172 190 339

Agriculture sector … … … 2,337 …

TSP = Total Suspended Particles, PM = Particulate Matter, … = not available.

a The Himal Cement Factory situated in the Kathmandu Valley was closed down.

Source: Government of Nepal, Central Bureau of Statistics. 2011. Environment Statistics of Nepal 2008. Table 4.15. p. 54.

APPENDIX 12

Emission of Pollutants from Total Energy Used in 1999/2000 in Nepal

Table A.12.1: Emission of Pollutants from Total Energy Used in 1999/2000 in Nepal

Energy sourceEnergy used (‘000 tons)

Pollutants (tons/yr)

TSP CO NOx SO2 HCs

Fuelwood 6,023 247,097 772,200 108,113 92,664 115,830

Agricultural residues 272 9,379 47,475 475 3,798 4,748

Animal waste 448 A7,920 89,600 1,254 10,752 13,440

Coal 205 12,724 15,905 2,616 6,362 3,534

Petroleum 709 164 16,300 2,180 2,180 109

Domestic Sector

LPG 220 2 421 92 0 4

Kerosene 195 632 6,861 450 767 36

TSP = Total Suspended Particles, CO = Carbon monoxide, NOx = Nitrous oxides, SO2 = Sulphur dioxide, HCs = Hydrochlorides, LPG = Liquefied Petroleum Gas.

Source: Government of Nepal, Central Bureau of Statistics. 2011. Environment Statistics of Nepal 2008. Table 4.17. p. 54.


APPENDIX 13

Greenhouse Gas Emissions in Nepal

Greenhouse Gas (GHG) emissions are identified as the root cause of climate change. Net GHG emissions in Nepal for the base year 2000 were 12,080 Gg CO2 equivalent (eq) of which 2,894 Gg were emitted as CO2, 662 Gg as CH4, and 26 Gg as N2O. The two largest contributors are the agricultural sector, which accounted for 69%, and the energy sector, which accounted for 28% of the total CO2 eq emissions without Land Use, Land-Use Change and Forestry (LULUCF). The waste and industrial process sector emitted 2.5% and 0.5% of the total CO2 eq emissions, respectively. The agricultural sector emitted 16,916 Gg of CO2 eq of which major emissions were 9,009 Gg of CO2 eq from enteric fermentation and 1,066 Gg of CO2 eq from manure management.3

The energy sector emitted 6,827 Gg of CO2 eq of which 5,189 Gg of CO2 eq were emitted from other sec-tors, particularly the residential sub-sector. The LULUCF sector removed net 12,776 Gg of CO2. Emissions from the energy sector amounted to 1,465 Gg CO2 eq in 1994, 6,827 Gg CO2 eq in 2000, and 7,959 Gg CO2 eq in 2008. This continuous increase was due to growing economic activities. Taking Nepal’s population to be 23,151,423 in 2000, CO2 eq emissions were 1074.5 kg/capita. Global annual emissions of anthropogenic GHGs in 2000 amount to 44.7 Gt CO2 eq.4 Thus Nepal’s global share of CO2 eq emissions is only 0.027%.

3 ADAPT-Nepal. 2012. Final Report of National Green House Gas Inventory – Report for Second National Communication prepared by the ADAPT- Nepal JV CDES, Tribhuvan University. Kathmandu.

4 IPCC. 2007. Climate Change 2007: The Physical Science Basis. Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge: Cambridge University Press.


APPENDIX 14

Temperature Trends in Nepal

Table A.14.1: Mean Maximum Temperature Trends from 1977 to 1994 in Nepal in Ċ

Physiographic RegionSeasonal

Annual (Jan-Dec)Winter (Dec-Feb)

Pre-monsoon(Mar-May)

Monsoon(Jun-Sep)

Post-monsoon(Oct-Nov)

Trans-Himalaya 0.12 0.01 0.11 0.1 0.09

Himalaya 0.09 0.05 0.06 0.08 0.06

Middle Mountains 0.06 0.05 0.06 0.09 0.08

Siwalik 0.02 0.01 0.02 0.08 0.04

Terai 0.01 0 0.01 0.07 0.04

All Nepal 0.06 0.03 0.051 0.08 0.06 Source: Shrestha et al. 1999. Maximum Temperature Trends in the Himalaya and its Vicinity: An Analysis Based on Temperature Records from Nepal for the Period 1971–94. Journal of Climate. 12. pp. 2775–86.

Analyses of maximum temperature data from 49 stations in Nepal for the period 1977–1994 reveal warming trends after 1977 ranging from 0.068˚C to 0.128˚C per year in most of the Middle Mountain and Himalayan regions, and 0.038˚C per year in the Siwalik and Terai regions.

Source: S.K. Baidya, DHM

Appendix 2 (b) Observed Temperature trends in Nepal (51 stations, Source: S. K. Baidya, DHM)

The temperature graph shows high inter-annual variability, although records of cyclic variability are lacking.

Table A.14.2: Temperature Trends across Nepal

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

22.0

21.0

20.0

19.0

18.0

17.0

16.0

y=0.0435x + 19.268

Tem

pera

ture

(˚C

)

Year

All Nepal Temperature Trend


Table A.14.3: Comparing Kathmandu, All-Nepal and Global Temperatures

Table A.14.4: All-Nepal Seasonal and Annual Temperatures Season OBS (˚C) Baseline (˚C) Bias (˚C) 2020s (˚C) 2050s (˚C) 2080s (˚C)

Maximum Temperatures

DJF 17.8 9.5 8.3 1.5 2.8 4.4

MAM 26.0 21.7 4.3 1.1 2.6 4.5

JJAS 27.3 21.6 5.7 1.0 2.1 3.3

ON 23.3 14.7 8.6 1.2 2.7 3.8

ANNUAL 23.6 16.9 6.7 1.2 2.6 4.0

Minimum Temperatures

DJF 4.7 -5.6 10.2 2.3 3.9 5.4

MAM 12.5 7.0 5.4 1.2 2.9 4.2

JJAS 18.5 15.3 3.3 1.2 2.4 3.4

ON 10.8 2.9 7.8 2.5 3.8 5.0

ANNUAL 11.6 4.9 6.7 1.8 3.3 4.5

OBS = , DJF = December, January, February, MAM = March, April, May, JJAS = June, July, August, September, ON = October, November.

Note: Observed all-Nepal seasonal and annual temperatures (maximum and minimum) and their Providing Regional Climate for Impact Studies (PRECIS) projected values during the baseline period (1981–2010) including increment during the 2020s (2011–2040), the 2050s (2041–2070), and the 2080s (2071–2098). The model bias is also shown. The bias and changes are in ˚C.

The climate change projection based on the results provided by the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) and the ensemble average of the global climate model for the period 2080 to 2099 relative to 1980 to 1999 indicates that temperatures could be warmer in Nepal by 4˚C in winter and 2.5˚C to 3˚C in summer. Another projection by the Organisation for Economic Co-operation and Development (OECD) shows a consistent increase in temperature in Nepal by the years 2030, 2050, and 2100, with warmer winters than summers. The projected change above the baseline average is 1.2˚C for 2030, 1.7˚C for 2050 and 3˚C for 2100. PRECIS shows warming trends of both maximum and minimum temperatures throughout the 21st century across Nepal, with higher intensities in higher altitude regions: a maximum temperature increase of 4.5˚C in spring and 3.3˚C in summer, and a minimum temperature increase of 5.4˚C in winter and 3.4˚C in summer by the end of the 21st century.

5 K. Krishna Kumar et al. 2011. Simulated Projections for Summer Monsoon Climate over India by a High-resolution Regional Climate Model (PRECIS). Current Science. 101 (3).

1880 1900 1920 1940 1960 1980 2000Years

Tem

pera

ture

dev

iatio

n fr

om N

orm

al ˚C 0.8

0.4

0.0

0.4

0.8

0.4

0.0

-0.4

Kathmandu Temperature

All-Nepal Temperature

24-40˚ North Latitude TemperatureAll-Nepal Temperature Trend 1977-94


Table A.14.5: GCM Estimates for Temperature and Precipitation Changes in Nepal

YearTemperature Changes (˚C) mean (standard deviation) Preciptitation change (%) mean (standard deviation)

Annual DJF4 JJA5 Annul DJF JJA

Baseline average 1433 mm 73mm 894mm

2030 1.2 (0.27) 1.3 (0.40) 1.1 (0.20) 5.0 (3.85) 0.8 (9.95) 9.1(7.11)

2050 1.7 (0.39) 1.8 (0.58) 1.6 (0.29) 7.3 (5.56) 1.2 (14.37) 13.1 (10.28)

2100 3.0 (0.67) 3.2 (1.00) 2.9 (0.51) 12.6 (9.67) 2.1 (25.02) 22.9 (17.89)

GCM = , DJF = December, January, February, JJA = June, July, August.

Source: OECD. 2003.

APPENDIX 15

Seasonal and Annual Precipitation in Nepal

Table A.15.1: All-Nepal Seasonal and Annual PrecipitationSeason OBS (mm) Baseline (mm) Bias (%) 2020s (%) 2050s (%) 2080s (%)

DJF 71 163 -130 -15 3 -12

MAM 211 319 -51 4 10 -3

JJAS 1330 1190 11 -1 8 20

ON 72 220 -206 -4 -5 3

ANNUAL 1683 1892 -12 -2 6 12

OBS = , DJF = December, January, February, MAM = March, April, May, JJAS = June, July, August, September, ON = October, November.

Note: Observed all-Nepal seasonal and annual precipitation and their Providing Regional Climates for Impact Studies (PRECIS) projected values during the baseline period (1981–2010) including changes during the 2020s (2011–2040), the 2050s (2041–2070), and the 2080s (2071–2098). The model bias is also shown. The bias and changes are a percentage of their normal values.

There may be a 5% to 10% increase in precipitation in the eastern part of the country in winter and a 15% to 20% change across the whole country in summer. The projected change above the baseline average is 5% for 2030, 7.3% for 2050, and 12.6% for 2100.6 Distributions of the PRECIS projected annual precipitation for the baseline period (1981–2010) and percent increments from the baseline during various periods show that precipitation will decrease by 2% of the baseline amount by 2020, and increase by 6% and 12% by the 2050s and 2080s, respectively.

6 K. Krishna Kumar et al. 2011. Simulated Projections for Summer Monsoon Climate over India by a High-resolution Regional Climate Model (PRECIS). Current Science. 101 (3).

Table A.15.2: Standardized Summer Monsoon Rainfall Series, Kathmandu Valley (1851–2000)

1850 1865 1880 1895 1910 1925 1940 1955 1970 1985 2000

3

2

1

0

-1

-2

-3

Rain

fall

in st

anda

rized

uni

ts


APPENDIX 16

Disasters Causing Loss of Life and Property in Nepal

Table A.16.1: Disasters Causing Loss of Life and Property in NepalYear Disaster Loss

2010 Floods, landslides, avalanches, earthquake, fires, storms, cold wave, epidemics

448 lives were lost, 261 were injured. A total of 1,526 livestock were lost, 23,370 houses destroyed, 19,026 families severely affected, 20,000 ha of land damaged, and NRs1,398 million worth of property lost.7

1971-2010 Natural disasters 4.7 million people affected (floods, 3.65 million; landslides, 0.55 million; earthquakes, 0.5 million), 24,747 deaths (earthquakes, 16,521; landslides, 4,327; floods, 3,899)8

1971 and 2006 Natural disasters 188,875 buildings were destroyed and 841,954 ha of land lost.9 Rivers washed away 336 million tons of soil per year,10 causing riverbed aggradations at a rate of 35–45 cm annually,11 leading to increased incidents of flooding in the Terai.

1983-2007 Major landslides 7,341 lives lost, NRs7,757 million worth of property damaged

2008 Koshi flood Damaged 5,000 ha of agriculture land

5 May 2012 Flash flood in Seti River in western Nepal

Caused loss of 31 lives, 40 persons missing

1255, 1810, 1866, 1934, 1980, 1988, and 2011

Major earthquakes are reported on average every 75 years

Loss of tens of thousands of lives and damage to thousands of buildings

2002, 2003, 2012 Fires occur almost every year during the dry season from February to May

The fires in the town of Myanglung in Terhathum District in 2002 and Phungling Bazaar in Taplejung District in 2003 in eastern Nepal, and in Aurahi, Siraha District of central Nepal in May 2012 are major examples of such incidents.

2009 Forest fires An ICIMOD study suggests that there were 4,217 forest fires in 2009. Forest fires cause the loss of biodiversity and thousands of hectares of forest every year.

7 Government of Nepal, Central Bureau of Statistics. 2011. Environmental Statistics of Nepal 2011. Kathmandu.8 Government of Nepal, Ministry of Home Affairs. 2011. Nepal Disaster Report 2011. MOHA/DPNet.9 Government of Nepal, National Society for Earthquake Technology. 2008. National Strategy for Disaster Risk Management in Nepal. Final Draft. Government of Nepal/

UNDP- Nepal/European Commission/NSET. Kathmandu.10 L. Brown. 1981. The Global Loss of Top Soil. Soil and Water Conservation. 36. pp. 255–60.11 F.R. Dent. 1984. Land Degradation: Present Status, Training and Education Needs in Asia and the Pacific. UNEP investigations on environmental education and training

in Asia and the Pacific. FAO Regional Office. Bangkok.


APPENDIX 17

Nepal Millennium Development Goals

Table A.17.1: Nepal Millennium Development Goals for Environmental Sustainability

Goals/ Targets Indicators Achievement 2015 target

1990 2000 2005 2010 2013

Target 1A 1.2. Percentage of population below national poverty line

42 38 31 25.4 23.8 21

Target 1C Prevalence of underweight children aged 6–59 months

57 53 43 38.6 28.8 29

Proportion of population below minimum level of dietary energy consumption

49 47 40 22.5 15.7 25

Proportion of stunted children aged 6–59 months 57 63 … 49 40.5 30

Target 2 Net enrolment rate in primary education 64.0 81.0 84.2 93.7 95.3 100

Proportion of pupils enrolled in grade one that reach grade five

38 63 79.1 77.9 84.2 100

Literacy rate of 15–24 year olds 49.6 70.1 79.4 86.5 88.6 100

Target 3 Ratio of girls to boys in primary education 0.56 0.79 0.9 1.0 1.02 1.0

Ratio of girls to boys in secondary education 0.43 0.7 0.84 0.93 0.99 1.0

Ratio of women to men in tertiary education 0.32 0.28 0.5 0.63 0.71 1.0

Ratio of literate women aged 15–24 years to liter-ate men aged 15–24 years

0.48 … 0.73 0.83 0.85 1.0

Target 4 Infant mortality rate (per 1,000 live births) 108 64 48 … 36a 36

Under-five mortality rate (per 1,000 live births) 162 91 61 … 54a 54

Proportion of one-year-old children immunized against measles

42 71 85 … 88a > 90

Target 5A Maternal mortality ratio (per 100,000 live births) 850 415 281 229 170 213

Proportion of births attended by skilled birth at-tendant (%)

7 11 19 36 50 60

Target 5B Contraceptive prevalence rate (modern methods) (%)

24 35.4 44.2 … 43.2 67

Adolescent birth rate (births per 1,000 women aged 15–19 years)

… 110 98 … 81 70

Target 6A Proportion of population with advanced HIV infection receiving antiretroviral combination therapy (%)

… … … 21 28.7 80

Target 6C Annual parasite incidence (per 1,000 people) … 0.55 0.28 0.11 0.08 0.06

Clinical malaria incidence (per 1,000 people) … … 3.3 5.7 3.3 Halt and reverse the trend

Death rate associated with TB (per 100,000 people)

43 23 22 22 21 Halt and reverse the trend

Proportion of TB cases cured under directly ob-served treatment short course (DOTS) (%)

40 89 89 90 90 91

Target 7A CO2 emission per capita (tons) … … 0.2 … 0.1


Goals/ Targets Indicators Achievement 2015 target

Consumption of all ozone-depleting substances (tons)

25.0 99.2 0.88 … …

Energy consumption (ToE) 6,847 7,759 8,616 9,876 10,155

Energy used per unit of GDP (ToE/million Rs) 34.8 28.4 29.6 24.8

Commercial energy used per unit of GDP (ToE/million Rs)

1.44 3.91 3.64 3.7 3.2

Proportion of people using wood as their main fuel

75 67.74 69.1 68.4 64.4

Proportion of people using liquid petroleum gas as their main fuel

… 7.67 8.2 12.3 18

Target 7B Proportion of land covered by forest 37.0 39.6 39.6 39.6 39.6a 40

Area of forest managed by community forestry (million ha)

0.013 1.0 1.2 1.24 1.65a

Proportion of terrestrial area protected 7.4 13.6 19.4 23.23 23.23

Proportion of water resources used … … 6.66 … …

Proportion of species threatened with extinction … … … … …

Target 7C Proportion of population using an improved drink-ing water source

46 73 81 80.4 85 73

Proportion of population using an improved sanitation facility

6 30 39 43 62 80

Target 7D Population living in slums and squatters … 11,850 18,000 50,000 …

Target 8 Total foreign aid utilization (NRs billion) 14.38 22.02 58.0 …

Share in GDP (%) 3.13 3.37 4.24 …

Share in total government expenditure (%) 17.96 19.88 19.64 …

Share in development expenditure (%) 58.07 74.45 53.8 …

TB = Tuberculosis, ToE = , GDP = Gross Domestic Product.a Data from 2011.Source: Government of Nepal, National Planning Commission. Nepal Millennium Development Goals, Progress Report 2013. NPC/United Nations.

Nepal’s Millennium Development Goals are as follows: Target 1. Eradicate Extreme Poverty and Hunger: i) Between 1990 and 2015, halve the proportion of people whose income is less than one

dollar a day, ii) Achieve full and productive employment and decent work for all, including women and youth, and iii) Between 1990 and 2015 halve the proportion of hungry people

Target 2. Achieve Universal Primary Education: Ensure that children everywhere, boys and girls alike, will complete their primary schooling by 2015

Target 3. Promote Gender Equality and Empowerment of Women: Eliminate gender disparity in primary and secondary education preferably by 2005 and in all levels of education by no later than 2015

Target 4. Reduce Child Mortality: Reduce the under-five mortality rate by two-thirds between 1990 and 2015Target 5. Improve Maternal Health: i) Reduce maternal mortality by three-quarters between 1990 and 2015, and ii) Achieve universal

access to reproductive health by 2015Target 6. Combat HIV/AIDS, Malaria and Other Diseases: i) Halt and begin to reverse the spread of HIV/AIDS by 2015, ii) Achieve

universal access to treatment for HIV/AIDS for all those who need it by 2010, and iii) Halt and begin to reverse the incidence of malaria and other major diseases by 2015

Target 7. Ensure Environmental Sustainability: i) Integrate the principles of sustainable development into country policies and programs and reverse the loss of environmental resources, ii) Reduce biodiversity loss, achieving a significant reduction in the rate of loss by 2010, iii) Halve the proportion of people without sustainable access to safe drinking water and basic sanitation by 2015, and iv) Achieve a significant improvement in the lives of slum dwellers by 2020

Target 8. Develop a Global Partnership for Development


Table A.17.2: Millennium Development Goal Achievement by Nepal

GoalLikelihood of achievement Status of supportive environment

Achieved Likely Potentially Likely Unlikely Lack of

data Strong Fair Weak but Improving Weak

1 Eradicate extreme poverty and hunger √

1 (a) Reduce extreme poverty by half √

1 (b) Full and productive employment for all √ √

1 (c) Reduce extreme hunger √ √

2 Achieve universal primary education √ √

3 Gender equality and empowerment of women

√ √

4 Reduce child mortality √ √

5 Improve maternal health √ √

5 (a) Reduce maternal mortality by three quarters √ √

5 (b) Achieve universal access to reproductive health

√ √

6 Combat HIV/AIDS , malaria, and TB √ √

6 (a) Have halted and begun to reverse the spread of HIV/AIDS

√ √

6 (b) Achieve universal access to treatment for HIV/AIDS

√ √

6 (c) Have halted and begun to reverse the inci-dence of malaria and other diseases

√ √

7. Ensure environmental sustainability

7 (a) Reverse loss of forest √ √

7 (b) Reduce Biodiversity Loss √ √

7 (c) Halve proportion of people without sanitation √ √

7 (d) Improve lives of slum dwellers √ √

Source: UNDP Nepal. Eight Goals for 2015. http://www.np.undp.org/content/nepal/en/home/mdgoverview


APPENDIX 18

Regulatory Mechanisms Safeguarding the Environment in Nepal

Table A.18.1: Regulatory Mechanisms Safeguarding the Environment in NepalTheme Regulatory mechanism

Environmental protection, environmental assess-ment, environmental monitoring

Environment Protection Act (1997), Environment Protection Rules (1997), Mines and Minerals Act 1985, Forest Act 1993, Water Resources Act 1992, Electricity Act 1992

Land and soils, land degradation, landslides and soil erosion, watershed deterioration

Land Acquisition Act 1977, Local Self-governance Act, 1999 and Rules 1999, Soil and Watershed Conservation Act 1992

Management of forest resources

Forest Act 1993 and Forest Rules 1995 (amended in 2001), Soil and Watershed Conser-vation Act 1992, Conservation Area Management Rules 1996, Buffer Zone Management Rules 1995, Working Procedures for Providing Forest Land to Other Provisions 2007, Operational Guidelines for Constructing and Operating Physical Infrastructure Project inside Protected Areas 2009 (approved by the Council of Ministers on 2 April 2010)

Management and protection of biodiversity, and fauna and flora

National Park and Wildlife Conservation (NPWC) Act 1973 and NPWC Rules 1973, Conservation Area Management Rules 1996, Buffer Zone Management Rules 1995, Plant Protection Act, 1964 and Plant Protection Rules 1974, Aquatic Animals Protec-tion Act 1960 (amended in 1997), National Trust for Nature Conservation Act 1982 (amended in 2006)

Water resources managementWater Resources Act 1992 and Water Resources Rules, 1993, Drinking Water Regulation 1998, Irrigation Regulation 2003, Electricity Act 1992, Electricity Rules 1993, Local Self-governance Act, 1999

Agricultural chemical pollution, emission, meat hygiene, food adulteration

Pesticides Act 1991 and Rules 1994, Animal Health and Animal Services Act 1998 and Rules 1999, Slaughterhouse and Meat Inspection Act, 1998 and Rules 1999, Food Act, 1966 and Rules 1970, Consumer Protection Act, 1998 and Rules, 2000

Air and noise pollution Electricity Act 1992, Electricity Rules 1993, Environment Protection Act (1997), Environ-ment Protection Rules (1997), Civil Aviation Act 1958, Explosives Act 1961, Labour Act 1992, Ozone Depleting Substance Consumption Regulations (2001)

Water pollutionNepal Water Supply Corporation Act 1989, Water Resources Act 1992 and Water Resources Rules, 1993, Drinking Water Regulation 1998, Environment Protection Act (1997), Environment Protection Rules (1997), Electricity Act 1992, Electricity Rules 1993

Waste and sewerage managementNepal Water Supply Corporation Act 1989, Labour Act 1992, Solid Waste (Management and Resource Mobilization) Act 1987 (amended 1992)

Natural induced disasters Natural Calamity (Relief) Act 1982 (amended in 1992)


APPENDIX 19

Policies, Strategies, and Plans Related to Environmental Sustainability in Nepal

Table A.19.1: Policies, Strategies, and Plans Related to Environmental Sustainability in NepalPolicies/strategies Features related to environmental sustainability

Master Plan for the Forestry Sector 1989

Sets out a 25-year policy and planning framework to meet people’s needs from forest products on a sustain-able basis, conserve ecosystems and genetic resources, protect land against degradation and the other effects of ecological imbalance, and contribute to economic growth

Industrial Policy, 1992 Prepares and implements guidelines relating to the environment and pollution in order to control and mitigate the impact of industrial pollution on the environment and national heritage

Nepal National Policy on Sanitation, 1994

Ensures safe water supply as an integral component of the sanitation program, as well as proper disposal of solid and liquid waste

Forestry Sector Policy, 2000 Protects land from degradation by soil erosion, floods, landslides, desertification, and other ecological distur-bances; meets people's basic needs for fuelwood, timber, fodder, and other forestry products on a sustained basis; conserves and uses biological diversity and genetic resources in a sustainable way for the maintenance of prevailing ecosystems; contributes to food production through effective interaction between forestry and farming practices; contributes to the growth of local and national economies

Hydropower Development Policy, 2001

Mandates environmental and social safeguards during hydropower development and operation, maintaining ecological flow by releasing at least 10% of the minimum monthly average discharge of the river or the mini-mum required quantum as required by the EIA

Nepal Biodiversity Strategy, 2002

Promotes protection and wise use of biologically diverse resources, the protection of ecological processes and systems, and the sharing of benefits to the people who depend on such resources for their livelihood

Water Resources Strategy, 2002

Develops an integrated water resources management system; protects the aquatic environment and its biodi-versity; considers environmental sustainability while developing a water resources development plan; mitigates water-induced disasters; provides watershed management

Foreign Aid Policy, 2002 Supports poverty reduction through higher economic growth by ensuring environmental sustainability

National Wetland Policy, 2003 Conserves and manages wetlands with local people’s participation for their benefit; protects aquatic fauna and flora and other genetic resources; maintains environmental integrity according to the Ramsar Convention

National Agricultural Policy, 2004

Promotes a scientific land use system; discourages non-agricultural use of fertile land; minimizes the adverse impacts of the use of agricultural chemicals; regulates the sale and distribution of insecticides and pesticides; sets up a surveillance system to assess the impacts of droughts, floods, and other natural calamities

Medicinal Plant and Non-tim-ber Forest Products Develop-ment Policy, 2004

Contributes to the economy by conserving high value MAPs and NTFPs, promoting Nepal as a good source of MAPs and NTFPs internationally by the year 2020; creates employment opportunities through farming and semi-processing MAPs and NTFPs

Agro-biodiversity Policy, 2007, revised and updated 2014

Promotes sustainable use of agricultural genetic resources/materials and associated traditional knowledge with the participation of concerned stakeholders for present and future generations

Draft agriculture development strategy, 2013

Guides the agricultural sector of Nepal over the next 20 years: the strategy considers the agricultural sector in all its complexity, and encompasses not only the production sectors (crops, livestock, fisheries, forestry) but also the processing sector, trade and other services (storage, transportation and logistics, finance, marketing, research, extensions); it also has targets in the areas of improved governance, higher productivity, profitable commercialization, and increased competitiveness

Science and Technology Policy, 2005

Assists in the poverty reduction program by utilizing natural resources in a sustainable manner through the development of science and technology, and by protecting the environment

Rural Energy Policy, 2006 Specifically targets the installation of improved biomass technologies to meet cooking and heating needs, off-grid micro-hydro for rural electrification, solar home systems (10 Wp and above), and white-LED and photovoltaic-based solar lights to replace kerosene lamps

Water Induced Disaster Man-agement Policy, 2006

Protection and management of watershed, river and water-related environments to sustain infrastructure such as drinking water, water transport, irrigation, transportation, and to reclaim river banks and other flood-affected land for the rehabilitation of landless people

Agriculture Trade Promotion Policy, 2006

Establishes organic and pesticide-free production areas for commercial crop/commodity production


Policies/strategies Features related to environmental sustainability

National Nuclear Policy, 2007 Sets national standards with fixed quantitative measurements of radiation levels in food materials

Tourism Policy, 2008 Sets out policies for the protection and preservation of natural resources while developing infrastructure and facilities for tourism development

National Strategy for Disaster Risk Management, 2009

Provides a road map for all sectors to prepare sector-specific programs on disaster management and formulate necessary policy decisions in facilitating disaster mainstreaming into sectoral development planning processes; aims to achieve a disaster-resilient Nepal by providing guidance for improving the policy and legal environ-ment, and by prioritizing strategic interventions

Climate Change Policy, 2011 Envisions a Nepal safe from the adverse impacts of climate change through the pursuit of environmental conservation, implementation of climate adaptation-related programs, reduction in GHG emissions, enhance-ment in the climate adaptation and resilience capacity of local communities, and the adoption of a low-carbon development path

National Land Use Policy, 2012 Seeks optimum use and management of land resources, categorized as agriculture, forest, commercial, indus-trial, settlement, general public use, and others, to be specified as per need based on land formation, capability, suitability, and need; this land categorization will be completed within five years in urban areas and along the main roads, and within 10 years throughout the country

Rangeland/Grassland (Kharka) Policy, 2012

Conservation, development, and sustainable use of grassland biodiversity with rights and responsibilities granted to local communities in developing and managing grasslands

Irrigation Policy, 2013 Minimizing the adverse impacts of irrigation projects on the environment: regulate flow without affecting eco-systems in downstream areas; monitor water quality; and manage irrigation infrastructure in the face of natural calamities such as siltation, floods, landslides, and river cutting

EIA = Environmental Impact Assessment, MAPs = medicinal and aromatic plants, NTFPs = non-timber forest products, LED = Light-emitting diode, GHG = Greenhouse gas

APPENDIX 20

Ministries and Agencies with Environmental Responsibilities in Nepal

Table A.20.1: Ministries and Agencies with Environmental Responsibilities in Nepal12

Environmental concerns Primary responsibilities

Land and soils, land degradation, landslides and soil erosion, watershed deterioration

MOFSC, MOAD, MLRM, MFALD, MPIT, MOE, NEA

Forest degradation, forest and agriculture biodiversity conservation, wildlife protection, desertification*

MOFSC, MOAD

Climate change MOSTE, MOFSC, MOAD

Soil fertility, agricultural chemical pollution, emissions MOAD, MOSTE

Air pollution in urban and rural areas, emissions, standards MOSTE, MPIT

Water resources, sedimentation, water body pollution, river and rivulet alteration, wetlands degradation*, groundwater depletion*

MOE, MOIrr, MOAD, MFALD, Municipalities

Rangeland/grassland degradation MOAD, MOFSC

Waste in urban areas MOUD, MPIT, Municipalities

Industrial pollution and waste MOI

Natural and human-induced disasters MOHA, MFALD, MOIrr

Alternative energy, renewable energy MOSTE, MOE, NEA

Safe drinking water and sanitation MOUD, MOPH

Environment assessment, monitoring and evaluation of environmental programs

MOSTE, and all other ministries involved in development activities

MOFSC = Ministry of Forest and Soil Conservation, MOAD = Ministry of Agricultural Development, MLRM = Ministry of Land Reforms and Management, MFALD = Ministry of Federal Affairs and Local Development, MPIT = Ministry of Physical Infrastructure and Transport, MOE = Ministry of Energy, NEA = Nepal Electricity Authority, MOIrr = Ministry of Irrigation, MOSTE = Ministry of Science, Technology and Environment, MOI = Ministry of Industry, MOUD = Ministry of Urban Development, MOEd = Ministry of Education, MOF = Ministry of Finance, MOHA = Ministry of Home Affairs, MOPH = Ministry of Population and Health.

12 Government of Nepal, National Planning Commission. 2013. Climate Change Budget Code – Application Review. Kathmandu.


APPENDIX 21

ADB-funded Projects in Nepal

Table A.21.1: ADB-funded Sector Projects in Nepal (in number)SN Sector No. of projects Percentage

1 Multi-sector 30 22.4

2 Agriculture and Natural Resources 25 18.7

3Water Supply and other municipal infrastructures and services

19 14.2

4 Education 15 11.2

5 Transport and ICT 10 7.5

6 Energy 9 6.7

7 Public Sector Management 8 6.0

8 Finance 6 4.5

9 Health and Social Protection 6 4.5

10 Not Classified 6 4.5

Total 134 100

Source: ADB. Project Records. http://www.adb.org/projects/search/499%2C21303?page=1&ref=countries%2Fnepal (accessed 5 December 2014).

Table A.21.2: ADB-funded Nepal Projects by Thematic Category (in number)SN Thematic Area Total Percentage

1 Economic Growth 68 50.7

2 Capacity Development 62 46.3

3 Social Development 53 39.6

4 Environmental Sustainability 40 29.9

5 Governance 32 23.9

6 Climate Change 28 20.9

7 Gender Equity 26 19.4

8 Private Sector Development 25 18.7

9 Regional cooperation and Integration 9 6.7

10 Poverty Reduction and Inclusive Growth 1 0.7

11 Not Classified 1 0.7

Total Projects 134


Table A.21.3: ADB-funded Nepal Projects by Funding (in number)SN Assistance Type Total Percentage

1 Technical Assistance 75 56.0

2 Grant 29 21.6

3 Loan 29 21.6

4 Not Known 1 0.8

Total Projects 134 100.0



Table A.21.4: ADB-supported Ongoing Projects and Technical Assistance with Environmental and Climate Change Components in Nepal

Project TitleAssistance Type (Loan/TA)

ADBAmount $ million

Project Approval Date

ADB Core Area Salient Features Executing Agency

Bagmati River Basin Improvement Project

Grant-0367Loan-3057

29 31 Oct 2013 Capacity development, Economic growth, Environmental sustainability,Social development

Improving water security and resilience to potential climate change impact in the Bagmati River Basin

Ministry of Urban Development

Building Climate Resilience of Watersheds in Mountain Eco-Regions

Grant-0357 Grant-0358

28.2 23 Sep 2013 Economic growth, Environmental sustainability,Social development

Building climate resilience in vulnerable mountain regions

Department of Forest and Soil Conservation

Mainstreaming Climate Change Risk Management in Development

TA-7984 7.8 6 Sep 2013 Capacity development, Environmental sustainability, Social development

Risk screening tools and methods applied for projects in irrigation, flood protection, roads, water supply and sanitation, and urban development; 50% of approved projects assessed for climate change risk; a trained focal point is in charge of climate change risk management in government infrastructure agencies


South Asia Loan-3012Subregional Economic Cooperation Road Connectivity Project

73 30 Jul 2013 Capacity development, Economic growth, Environmental sustainability, Regional cooperation and integration

An alternate route in Sunsari and Saptari districts; the repair of three feeder roads in hill areas

Ministry of Physical Infrastructure and Transport

Kathmandu Valley Waste Water Management Project

Loan-3000 77.9 26 Apr 2013 Capacity development, Environmental sustainability,Private sector development, Social development, Climate change

Rehabilitation and expansion of the sewerage network; modernization and expansion of wastewater treatment plants; improvement of wastewater management in the Kathmandu Valley that will help reduce pollution of the Bagmati River


Third Small Towns Water Supply and Sanitation Sector Project

Loan-3157 56.9 19 Sept 2014 Capacity development, Economic growth, Environmental sustainability

Supporting the ongoing efforts of the Government of Nepal to further improve water supply and sanitation service delivery in small towns in Nepal


Tanahu Hydropower Project

Loan-2990Loan-2991

142.7 21 Feb 2013 Capacity development, Economic growth, Environmental sustainability, Private sector development

A medium-sized hydropower plant of 140 MW with significant water storage facilities and associated transmission lines to evacuate the generated power; rural electrification and community development in the project area; a reform and restructuring plan for the national utility, the Nepal Electricity Authority

Tanahu Hydropower Limited, Nepal Electricity Authority, Ministry of Energy



ADBAmount $ million



Water Resources Project Preparatory Facility

Grant-0299 11 27 Jul 2012 Capacity development, Economic growth, Environmental sustainability, Social development

Detailed feasibility studies for high priority water resources projects undertaken; environmental, social, and technical capacity of Department of Irrigation and Department of Water Induced Disaster Prevention improved; Irrigation Master Plan updated; efficient project management

Ministry of Irrigation

Integrated Urban Development Project

Grant-0284Loan-2851

53.6 14 Feb 2012 Capacity development, Environmental sustainability, Private sector development, Social development

Providing the population in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar with better access to municipal infrastructure and services in a socially inclusive manner


Decentralized Rural Infrastructure and Livelihood Project – Additional Financing

Grant-0267 Loan-2796

24.7 31 Oct 2011 Capacity development, Economic growth, Governance, Social development, Climate Change

Improving rural livelihoods; enhancing capacity and decentralized local governance; extending and maintaining rural transport infrastructure; improving project management

Department of Local Infrastructure Development and Agricultural Roads

Electricity Transmission Expansion and Supply Improvement Project


71.1 15 Nov 2011 Capacity development, Economic growth, Environmental sustainability, Regional cooperation and integration

Expanding electricity transmission capacity; strengthening distribution systems including those along the Tamakoshi (Khimti)–Kathmandu transmission line; rehabilitating selected small hydropower plants

Nepal Electricity Authority

Kathmandu Valley Water Supply Improvement Project

Loan-2776 74.7 15 Sept 2011 Capacity development, Environmental sustainability, Social development

Complementing past and ongoing efforts to improve access, efficiency, and reliability of water supply services to the residents of the Kathmandu Valley


High Mountain Agribusiness and Livelihood Improvement Project (HIMALI)

Grant-0248 20 25 Mar 2011 Economic growth, Environmental sustainability, Private sector development

Increased number of mountain agribusinesses making use of agribusiness grants; mountain agribusinesses have knowledge and access to improved production technologies and value-addition; effective project management atcentral and district levels

Ministry of Agriculture Development

Kathmandu Sustainable Urban Transport Project


20 22July 2010 Capacity development, Economic growth, Environmental sustainability, Private sector development

Improving the quality of urban life in the capital city of Nepal by delivering a more efficient, safe, and sustainable urban transport system (UTS), favoring local economic growth and addressing climate change and air pollution mitigation


Secondary Towns Integrated Urban Environmental Improvement Project

Loan-2650 60 6 Jul 2010 Capacity development, Environmental sustainability, Private sector development, Social development

Improving drainage and sewerage systems (Biratnagar, Birgunj); improving urban roads and lanes (Biratnagar, Birgunj); improving solid waste management systems (Birgunj, Butwal); expanding water supply systems (Kavre Valley, Butwal); improving other urban infrastructure facilities (Butwal); community development program




ADBAmount $ million



Energy Access and Efficiency Improvement Project

Loan-2587

57 27 Nov 2009 Capacity development, Economic growth, Environmental sustainability, Regional cooperation and integration

Energy access, clean energy, and capacity building


Second Small Towns Water Supply and Sanitation Sector Project

Grant-0157 0.451 17 Sep 2009 Environmental sustainability, Gender equity, Governance, Social development

Developing an efficient, effective, and accountable urban water supply and sanitation sector, entailing the development of safe, accessible, and adequate water supply and sanitation facilities in about 20 small towns; strengthening governance and capacity for project management and operation


Emergency Flood Damage Rehabilitation Project

Grant-0150 25.6 21 Apr 2009 Economic growth, Environmental sustainability

Sustained growth of economic activities by minimizing the devastating impact of the 2008 monsoon floods, mainly in the three flood-affected districts


Community Irrigation Project

Grant 0219 26 27 Sept. 2010 Capacity development, Economic growth, Gender equity, Governance, Environmental Sustainability

Promoting inclusive economic growth, poverty reduction, and sustainable management of water and land resources


Melamchi Water Supply Project

Loan-1820Loan-3110

163.3 21 Dec 2000 Environmental sustainability

Alleviating the chronic water shortage in the Kathmandu Valley on a sustainable, long-term basis, and improving the health and well-being of its inhabitants

Ministry of Urban Development Melamchi Water Supply Development Board Ministry of Physical Infrastructure and Transport Kathmandu Upatyaka Khanepani Limited (KUKL)

South Asia Tourism infrastructure Development Project and Additional Financing

Loan-2579Loan-3117Grant-0179

53 16 Nov 2009 Capacity development, Economic growth, Environmental sustainability, Regional cooperation and integration

Improved connectivity to Lumbini; destination improvements; capacity development of sector agencies and local communities. Upgrading of Bhairahawa airport to international standard

Ministry of Tourism, Culture and Civil Aviation

Subregional Transport Facilitation Project

Loan-2658Grant-0225

39.6 27 Oct 2010 Capacity development, Economic growth Environmental Sustainability Regional Cooperation and Integration

Upgrading and rehabilitation of Belbari-Churharwa road, Harkpur-Okhaldhunga, Okhaldhunga-Salleri, Chainpur-Khandbari, Bhairahwa Bypass, and Nepalgunj-Kohalpur road

Ministry of Infrastructure and Transport

TA = Technical Assistance.

Note: In total, there are 18 Loan and Grant investments ongoing in various sectors of development, which have environmental safeguards mainstreamed into their operations.

Source: ADB. Project Records. http://www.adb.org/projects/search/499 (accessed 5 December 2014).


APPENDIX 22

UNDP-supported Projects with Environmental and Climate Change Components in Nepal

Table A.22.1: UNDP-supported Projects with Environmental and Climate Change Components in Nepal

SN Projects Budget$ million

Starting Date

Completion Date

Thematic Area Description Implementing Agency

1

Renewable Energy for Rural Livelihood (RERL)

13.4 Apr 2011 Mar 2014 Environment and Energy

The RERL project started in April 2011 as an extension of the successful partnership between the government and UNDP in the renewable energy sector

Alternative Energy Promotion Centre/Ministry of Energy, Ministry of Science, Technology and Environment

2

Ecosystem Based Adaptation in Mountain Ecosystems in Nepal

3.37 Aug 2012 Aug 2015 Environment and Energy

Strengthen the capacity of countries that are particularly vulnerable to climate change impacts, through ecosystem-based adaptation approaches

Department of Forests

3Nepal Climate Change Support Programme

22.38 Jan 2013 Dec 2015Environment and Energy and Climate Change

Ensure that Nepal’s poorest and most vulnerable people are able to adapt to the effects of climate change


4

Community Based Flood and Glacial Lake Outburst Risk Reduction Project

7.25 2013 2017 Environment and Energy

Reduce human and material losses from Glacier Lake Outburst Flooding (GLOF) in Solukhumbu District and catastrophic flooding events in the Terai and Churia Range

Department of Hydrology and Meteorology Department of Soil Conservation and Watershed Management Department of Water Induced Disaster Prevention Department of National Parks and Wildlife Conservation

5

Comprehensive Disaster Risk Management Programme (CDRMP)

17.5 Feb 2011 Dec 2015 Environment and Energy

Strengthening the capacity for disaster risk management in line with the recommendations of the national strategy

United Nations Development Programme (UNDP), Ministry of Home Affairs, Ministry of Physical Planning and Works, Ministry of Local Development, sectoral ministries, National Planning Commission, local bodies, United Nations, Oxfam

6

Conservation and Sustainable Use of Wetlands in Nepal (CSUWN)

6.03 Mar 2007 31 Mar 2012 Environment and Energy

Maintenance and enhancement of wetland biodiversity and environmental goods and services for improved local livelihoods

MOFC, GEF, International Union for the Conservation of Nature (IUCN), Department of Forests, Department of National Parks and Wildlife Conservation, District Development Committees

7

Western Terai Landscape Complex Project (WTLCP)

8.9 Jan 2006 31 Jul 2012 Environment and Energy

Establishing a landscape-level management model to safeguard the area’s biological wealth and its vital ecological functions

Ministry of Forest and Soil Conservation, district agriculture, forest and livestock offices, NARC, national parks, local authorities, non-governmental organizations (NGOs) and community groups

8

GEF Small Grant Programme (SGP)

4.2 (2009 budget)

1996 30 Jun 2014 Environment and Energy

Funding local initiatives for environmental conservation; biodiversity conservation projects, climate change mitigation projects, and reversing land degradation

UNDP, NGOs and community organizations

9

Public Private Partnership for Urban Environment (PPPUE)

4.4 (Phase II only

Phase I & II: Mar 2002

Phase I & II: Dec 2012

Poverty Reduction

Building an enabling policy environment and the human resources to implement public-private partnerships

Ministry of Local Development, MuAN, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), local businesspeople, community organizations

Source: UNDP. Community Based Flood and Glacial Lake Outburst Risk Reduction Project (CFGORRP). http://www.np.undp.org/content/nepal/en/home/operations/projects/environment_and_energy/cfgorrp.html


APPENDIX 23

World Bank-supported Projects with Environmental and Climate Change Components in Nepal

Table A.23.1: World Bank-supported Ongoing Projects with Environmental and Climate Change Components in Nepal

SN Project Budget $ million

Approval Date

Closing Date Thematic Area Implementing

Agency

1Additional Financing for the Irrigation and Water Resources Management Project (IWRMP)

50.0 23 Dec 2013 …Irrigation and Drainage (60%), Agricultural Extension and Research (20%), Crops (20%)

Ministry of Irrigation

2Second Additional Financing for the Poverty Alleviation Fund II Project

80.0 5 Jun 2013 …

General Agriculture, Fishing and Forestry (65%), Other social services (25%), Public Administration and other social services (10%)

Poverty Alleviation Fund

3 Kaligandaki A Hydropower Plant Rehabilitation Project 27.26 15 May 2013 30 Jun 2017

Large Hydropower (97%), General Water, Sanitation and Flood Protection (3%)


4 Building Resilience to Climate Related Hazards 31 14 Feb 2013 30 Nov 2018

General Water, Sanitation and Flood Protection (50%), Public Administration – Water, Sanitation and Flood Protection (31%), General Agriculture, Fishing and Forestry (14%), Public Administration – Agriculture, Fishing and Forestry (5%)

Department of Hydrology and Meteorology

5 Nepal Agriculture and Food Security Project 58.0 11 Feb 2013 31 Mar 2018

General Agriculture, Fishing and Forestry (28%), Agriculture Extension and Research (19%), Public Administration –Agriculture, Fishing and Forestry (19%), Crops (17%), Animal Production (17%)

Ministry of Agriculture and Cooperatives

6Additional Financing for the Project for Agriculture Commercialization and Trade

40.0 15 Nov 2012 …

Crops (39%), Agro-industry, Market and Trade (26%), Public Administration – Agriculture, Fishing and Forestry (22%), Animal Production (13%)


7Output-Based Aid for Municipal Solid Waste Management

4.6 19 Oct 2012 30 Jun 2017 Solid Waste Management (100%)

Solid Waste Management Technical Assistance Center

8 Nepal: Pilot Project for Seismic School Safety 1.51 17 Aug 2012 30 Jun 2014 Natural Disaster Management (100%) Department of

Education

9Modernization of Rani Jamara Kulariya Irrigation Scheme – Phase 1

49 5 Jul 2011 30 Sep 2016Irrigation and Drainage (76%), Flood Protection (15%), General Agriculture, Fishing and Forestry (9%)

Department of Irrigation

10 Kabeli Transmission Project 47.69 10 May 2011 30 Jun 2015 Power (96%), Renewable Energy (4%) National Electricity Authority

11 Additional Financing to the Poverty Alleviation Fund II 96 21 Apr 2011 …

Agriculture, Fishing, and Forestry (32%), Agro-industry, Marketing, and Trade (17%), Health and other social services (17%), Water, Sanitation and Flood Protection (17%), General Transportation (17%)


12Project for Agriculture Commercialization and Trade (PACT)

23 4 Jun 2009 30 Jun 2015

Agriculture, (28%), Agro-industry, Marketing, and Trade (28%), Agro-industry (28%), Public Administration (16%)


13PPIAF: NEPAL: Setting Baseline of Kathmandu Valley Water Services

27 6 Jul 2009 31 Jan 2012 Water Supply (50%), Sewerage (50%) ADB


SN Project Budget $ million

Approval Date

Closing Date Thematic Area Implementing

Agency

14 Irrigation and Water Resources Management Supplemental 14.3 30 Sep 2008 …

Irrigation and Drainage (65%), Agriculture (30%), Public Administration, Law, and Justice (Public Administration – Agriculture, Fishing and Forestry) (5%)

Department of IrrigationDepartment of Agriculture

15Second Rural Water Supply and Sanitation Project – Additional Financing

41 6 May 2008 … Water Supply (90%), Sanitation (5%), Health (5%)

Rural Water Supply and Sanitation Fund Development Board

16 Poverty Alleviation Fund II 109 6 Dec 2007 30 Jun 2014Irrigation and Drainage (25%), Animal Production (25%), Other social services (25%), Water Supply (25%)

Poverty Alleviation Fund Board

17 Irrigation and Water Resources Management Project 60 6 Dec 2007 30 Jun 2013

Irrigation and Drainage (76%), Agricultural Extension and Research (12%), Central Government Administration (8%), Agriculture, Fishing, and Forestry (2%), Others (2%)

Department of Irrigation

18 Nepal – Village Micro Hydro 59.1 30 Jun 2007 15 Dec 2015 Climate Change (50%), Rural Services and Infrastructure (50%)

Alternative Energy Promotion Centre

19 Nepal Poverty Alleviation Fund II Supplemental 25 14 Nov 2006 …

Irrigation and Drainage (26%), Primary Education (26%), Roads and Highways (26%), Other social services (18%), Micro Finance (4%)


20 Nepal – Biogas Program 61.9 2 Jun 2006 30 Jul 2015 Climate Change (50%), Land Administration and Management (25%)

Alternative Energy Promotion Centre

21 Rural Access Improvement and Decentralization Project 44.04 21 Jun 2005 31 Dec 2013 Roads and Highways (100%)


22 Second Rural Water Supply and Sanitation Project 41.5 1 Jun 2004 31 Aug 2012 Water Supply (90%), Sanitation (5%),

Health (5%)

Rural Water Supply and Sanitation Fund Development Board

23 Nepal Power Development Project 133.4 22 May 2003 31 Dec 2012

Climate Change (25%), Rural Services and Infrastructure (25%), Micro, Small and Medium Enterprise Support (13%), Other financial and private sector development (24%), Public Expenditure, Financial Management and Procurement (13%)

Ministry of Water Resources

Source: World Bank. All Projects. http://www.worldbank.org/en/country/nepal/projects/all?qterm=&lang_exact=English&os=20 (accessed 5 December 2014).


APPENDIX 24

DFID-supported Projects with Environmental and Climate Change Components in Nepal

Table A.24.1: DFID-supported Projects with Environmental and Climate Change Components in Nepal

SN Project Starting Date

Completion Date Thematic Area Description Budget

Million £

1Nepal Local Governance Support Programme

10 Dec 2013 31 Jul 2017Environmental Policy and Administrative Management

Improve basic service delivery by providing poor people, especially women and children, community-prioritized and climate-resilient infrastructure by capable and accountable local government and civil society

70.1

2Rural Access Programme 3

28 Jan 2013 31 Dec 2016Road Transport, Agriculture Development

Improve road access for 800,000 members of rural communities in the Western Region of Nepal

36.7

3Nepal Market Development Programme

6 Mar 2012 5 Mar 2017

Agriculture Development, Agriculture Services, Agricultural Policy and Administrative Management

Improve incomes and growth for poor and disadvantaged people in key sub-sectors within agriculture and other rural markets

14.54

4Support to Build Earthquake Resilience in Nepal

2 Feb 2012 31 Mar 2015Environmental Policy and Administrative Management

Strengthen national systems for disaster risk management and response, increasing community-based earthquake readiness

21.96

5Rural Water and Sanitation Programme Phase V

27 Jun 2012 31 May 2015Basic Drinking Water Supply and Sanitation

Rural communities manage adequate use of potable water, improved hygiene and sanitation

4.2

6Multi-Stakeholder Forestry Programme – Nepal

22 Aug 2011 31 Jul 2016 Forestry DevelopmentNepal’s forestry sector contributing to inclusive economic growth, poverty reduction and tackling climate change

20.0

7Nepal Climate Change Support Programme

17 Dec 2010 31 Mar 2015 BiodiversityEnhanced capacity of Nepal Government to implement effective climate change responses

11.85

8Great Himalaya Trail Development Programme

5 Oct 2010 31 Dec 2013 Rural Development

Harnessing tourism as a driver to improve livelihoods and bring sustainable, inclusive development opportunities to rural communities

2.44

9Community Support Programme Phase II

13 Apr 2010 31 Mar 2014Drinking Water and Sanitation, Agricultural Development

Improved access by poor and excluded people, including women and girls, to community-based development opportunities and enhanced preparation to cope with disaster

20.0

10Market Access for Smallholder Farmers Programme

29 Jun 2010 30 Jun 2012Agricultural Services, Agricultural Development

Sustainable increases in income of smallholder farmers

2.5

11

Assistance for Vulnerable Populations Affected By Conflict and High Food Prices in Nepal

21 Dec 2009

31 Mar 2010 Emergency Food AidReduce vulnerability of those affected by food insecurity, rising food prices and floods in Nepal

5.0


SN Project Starting Date

Completion Date Thematic Area Description Budget

Million £

12

Rural Reconstruction and Rehabilitation Sector Development

5 Mar 2009 30 Nov 2013 Road TransportReduce poverty through improved rural infrastructure

13.32

13Support to Decentralised Agriculture in Nepal

29 Jul 2009 31 Mar 2011Agricultural Policy and Administrative Management

Deliver appropriate agricultural support services to the rural poor through improved policy and institutional arrangements

1.5

14South Asia Water Initiative

17 Feb 2009 31 Mar 2015Environmental Policy and Administrative Management

Develop the knowledge, relationships and institutions to enable significant and measurable improvements in international water resource management

3.6

15Support to Decentralised Agriculture in Nepal

29 Jul 2009 31 Mar 2011 Agricultural Land ServicesDeliver appropriate agricultural support services to the rural poor through improved policy and institutional arrangements

15.0

16Support to Climate Change Programme

25 Dec 2008

31 Mar 2011 BiodiversityDevelop a strategic framework of action on climate change with which stakeholders can align their responses

0.66

17Community Support Programme

17 May 2005

31 Mar 2010Drinking Water and Sanitation, Agricultural Development

Improved access to basic services for conflict-affected people, particularly the poor and excluded

17.85

18Agricultural Perspective Plan Support Programme

1 Jul 2003 31 Aug 2009Agricultural Policy and Administrative Management

Deliver appropriate agricultural support services to the rural poor through improved policy and institutional arrangements

8.57

19Livelihoods and Forestry Programme

2 Nov 2000 31 Dec 2012 Forestry DevelopmentAssets of rural communities enhanced through more equitable, efficient and sustainable use of forest resources

25.85

Source: Development Tracker. All Projects. http://devtracker.dfid.gov.uk/countries/NP/projects (accessed 5 December 2014).


APPENDIX 25

Nepal Environmental Standards and Guidelines

Table A.25.1: National Ambient Air Quality Standards for Nepal, 2003

Parameters Units AveragingTime

WHO Guideline

Concentration in AmbientAir, maximum

Test Method

TSP (Total Suspended Particulates) µg/m3Annual

120-230- HVS 24-hour sampling (one weak sample

at 2 road side stations)24-hoursa 230

PM10 (Particulate Matter) µg/m3Annual

70-

Light Volume Sampling24-hours* 120

Sulphur Dioxide µg/m3Annual

12550

Diffusive sampling based on weekly average24-hours** 70

Nitrogen Dioxide µg/m3Annual

15040

Diffusive sampling based on weekly average24-hours** 80

Carbon Monoxide µg/m38 hours**

100,00010,000 To be determined before 2005

15 minute 100,000 Indicative sampler

Leadµg/m3

Annual0.5–1.0a

0.5 Atomic absorption spectrometry analysis of PM10 samples24-hours -

Benzeneµg/m3

Annual-

20dDiffusive sampling based on weekly average

24-hours -

a 24-hour values shall be met 95% of the time in a year; 18 days per calendar year, the standard may be exceeded, but not on two consecutive days.

b 24-hour standards for NO2 and SO2 and the 8-hour standard for CO are not to be controlled before the Ministry of Population and Environment has recommended appropriate test methodologies. This will be done before 2005.

c If representativeness can be proven, yearly averages can be calculated from PM10 samples from selected weekdays from each month of the year.

d To be re-evaluated by 2005.

Source: Government of Nepal, Department of Irrigation. Nepal Gazette. B.S. 2060-4-19. Kathmandu.


Table A.25.2: National Indoor Air Quality Standards, Nepal, 2009

PollutantMaximum Concentration

Level Average Time

Particulate Matter (PM10)120 µg/m3 24-hour

200 µg/m3 1-hour

Particulate Matter (PM2.5)60 µg/m3 24-hour

100 µg/m3 1-hour

Carbon Monoxide (CO)9 ppm (10 mg/m3) 8-hour

35 ppm (40 mg/m3) 1-hour

Carbon Dioxide (CO2) 1,000 ppm (40 mg/m3) 8-hour

Table A.25.3: Drinking Water Quality Standards, Nepal, 2006

Group Parameter Unit Maximum Concentration

Physical

Turbidity pH ColorTaste and ColorTotal Dissolved SolidsElectrical Conductivity IronManganeseArsenic CadmiumChromiumCyanide FluorideLeadAmmonia

NTU TCUmg/lµc/cmmg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/lmg/lmg/l

5 (10)a6.5-8.5b5 (15)aWould not be objectionable100015000.3 (3)a0.20.050.0030.050.070.5–1.5b0.011.5

Chemical

Chloride Sulphate Nitrate CopperTotal HardnessCalcium Zinc Mercury AluminumResidual Chlorine

mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/lmg/lmg/l

25025050150020030.0010.20.1–0.2b

Micro GermsE. coliTotal coli form

MPN/100 mlMPN/100 ml

095% in sample

a Figures in parentheses are the upper range of the standards recommended.

b These standards indicate the maximum and minimum limits.

Source: Government of Nepal, Department of Irrigation. Nepal Gazette. B.S. 2063-03-12. Kathmandu.


Table A.25.4: Water Quality Guidelines for Irrigation Water, Nepal, 2008

SN Parameter name Target Water Quality Range Remarks

Microbiological constituents

1. Coliforms (fecal) < 1 count /100 ml 1–1,000 count/100 ml could be used for plants for which edible parts are not wetted

Physical constituents

1 pH 6.5–8.5 Adverse effect on plants outside this range

2. Suspended Solids < 50 mg/l Above the limit problem with sedimentation and irrigation system

3. ElectricalConductivity

< 40 mS/m Up to 540 mS/m depending upon sensitivity of crops

Chemical constituents

1. Aluminum < 5 mg/l Up to 20 mg/l max. acceptable concentration

2. Arsenic < 0.1 mg/l > 2 mg/l creates severe problem

3. Beryllium < 0.1 mg/l 0.1–0.5 mg/l max. acceptable concentration

4. Boron < 0.5 mg/l Up to 15 mg/l depending upon species

5. Cadmium < 0.01 mg/l 0.01–0.05 mg/l max. acceptable concentration

6. Chloride < 100 mg/l Up to 700 mg/l depending upon species

7. Chromium < 0.1 mg/l Up to 1.0 mg/l max. acceptable concentration

8. Cobalt < 0.05 mg/l Up to 5.0 mg/l max. acceptable concentration

9. Copper < 0.2 mg/l Up to 5.0 mg/l max. acceptable concentration

10. Fluoride < 2.0 mg/l Up to 15 mg/l max. acceptable concentration

11. Iron < 5.0 mg/l (non-toxic) > 1.5 mg/l creates problem in drip irrigation system

12. Lead < 0.2 mg/l Up to 2.0 mg/l max. acceptable concentration

13. Lithium < 2.5 mg/l For citrus < 0.75 mg/l

14. Manganese < 0.02 mg/l Up to 10 mg/l max. acceptable concentration

15. Molybdenum < 0.01 mg/l Up to 0.05 mg/l max. acceptable concentration

16. Nickel < 0.2 mg/l Up to 2.0 mg/l max. acceptable concentration

17. Nitrogen (inorganic) < 5 mg/l Higher concentration may affect sensitive plants and may contaminate ground water

18. Selenium < 0.02 mg/l Up to 0.05 mg/l max. acceptable concentration

19. Sodium AdsorptionRatio (SAR)

< 2.0 Up to 10 depending upon sensitivity of crops

20. Sodium < 70 mg/l Up to 460 depending upon sensitivity of crops

21. Total DissolvedSolids (as EC)

< 40 mS/m Up to 540 mS/m depending upon sensitivity of crops

22 Uranium < 0.01 mg/l Up to 0.1 mg/l max. acceptable concentration

23. Vanadium < 0.1 mg/l Up to 1.0 mg/l max. acceptable concentration

24. Zinc < 1.0 mg/l Up to 5 mg/l max. acceptable concentration

Source: Government of Nepal, Department of Irrigation. Ground Water Project. Nepal Gazette, 10, B.S., 2065-03-02. Kathmandu.


Table A.25.5: Water Quality Guidelines for Aquaculture, Nepal

SN Constituents Target Water Quality Range Remarks

1 Algae No criteria

2 Alkalinity 20–100 mg/l as CaCO3High alkalinity reduces natural food produc-tion in ponds below optimal production

3 Aluminum< 30µg/l (pH > 6.5) Highly toxic to trout (1.5 µg/l is fatal to brown

trout)< 10 µg/l (pH < 6.5)

4 Ammonia (for cold water fish) 0–25 µg/l

5 Ammonia (for warm water fish) 0–30 µg/l

6 Arsenic 0–0.05 mg/l

7 Bacteria (E. coli) < 10 counts of E. coli/g of fish flesh

8 BOD5 < 15 mg/l

9 Cadmium

Hardness: 0–60 mg/l < 0.2 mg/l Cadmium toxicity depends upon hardness of water

Hardness: 60–120 mg/l < 0.8 mg/l

Hardness: 120–180 mg/l < 1.3 mg/l

Hardness: > 180 mg/l < 1.8 mg/l

10 Carbon dioxide < 12 mg/l, up to 75 mg/l for warm water fish

11 Chloride Value not recommended (fish can survive at < 600 mg/l Chloride but the production is not optimum)

12 Chlorine< 2 µg HOCl/l for cold water fish

< 10 µg HOCl/l for warm water fish

13 Chromium (VI) < 20 µg/l

14 COD < 40 mg/l

15 Color < 100 Pt-Co unit

16 Copper < 5 µg/l 0.006 µg/L and 0.03 µg/L are upper limits for hard and soft water

17 Cyanides < 20 µg/l as HCN LC50 starts from 100 µg/L upwards

18 Dissolved oxygen 6–9 mg/l for cold water species

5–8 for intermediate water species

5–8 for warm water species

19 Fluoride < 20 µg/l

20 Iron < 10 µg/l 0.2–1.75 µg/l general lethal threshold for fish

21 Lead < 10 µg/l 30 µg/L max. concentration for brook trout

22 Magnesium < 15 mg/l

23 Manganese < 100 µg/l Above 500 µg/l increasing risk of lethal effect

24 Mercury < 1 µg/l Bioaccumulation and biomagnification occurs

25 Nickel < 100 µg/l

26 Nitrate-N < 300 mg/l 1000 mg/l is below the 96-hourLC50 values for most fish

27 Nitrite-N 0–0.05 mg/l for cold water fish > 7 mg/l is LC50 for many fish species

0.06–0.25 mg/l for warm water fish


SN Constituents Target Water Quality Range Remarks

28 Nuisance plants Less than 10% of the fish pond should be covered by aquatic plants

29 Oils and Grease (including petro-chemicals)

< 300 µg/l

30 PCBs No quantitative guidelines, should not be detected in fish

31 pH 6.5–9.0 Outside this range the health of fish is adversely affected

32 Phenols < 1 mg/l > 7.5 mg/l 24 hr. LC50 starts for most fish

33 Phosphorus < 0.6 mg/l as orthophosphate> 12.5 mg/l 96 hr. LC50 starts for most fish34 Selenium (VI) < 0.3 mg/l

35 Sulphide as H2S < 0.001 mg/l > 0.002 mg/l long-term health hazard for fish

36 Temperature 4–18 for cold water fish

16–32 for intermediate species

24–30 for warm water fish

37 Total Dissolved Gases asTotal Gas Pressure (TGP)

< 100% for cold water fish Mortality increases with increasing TGP

< 105% for warm water fish

38 Total Dissolved Solids < 2000 mg/l

39 Total Hardness as CaCO3 20–100 mg/l At > 175 mg/l osmoregulation of fish is affected

40 Total Suspended Matter < 20,000 mg/l for turbid water species,

< 25 NTU for clear water species

41 Zinc, depends upon water hard-ness: mg/l dissolved Zn

Hardness:Cold water

Warm water Warm water fish are more tolerant

10 mg/l 0.03 0.3

50 mg/l 0.2 0.7

100 mg/l 0.3 1

Note: No guideline values provided for pesticides.

Source: Government of Nepal, Department of Irrigation. Ground Water Project. Nepal Gazette, 10, B.S., 2065-03-02. Kathmandu.


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Country Environmental NoteNepal

Environment protection in the process of development is of high relevance to a country like Nepal, which possesses highly rich yet fragile natural resources. The Country Environment Note (CEN) analyses that the fragile environmental setting, rapidly increasing risks of climate change, and increasing frequency of natural disasters are closely interlinked and demands for striking a balance between development and conservation. The government has set priorities for an environment friendly development by adopting sustainable development agenda, environment and climate change policies, and commitment to the millennium development goals. The desired targets are although difficult to meet. High exploitation of natural resources; insufficient capacity and coordination among the government institutions; and weaknesses in environmental governance has increased the challenges. The development partners have been filling in some of the gaps by supporting the government in institutional strengthening and environment and climate friendly development. The CEN identifies 14 strategic actions under six key policy recommendations for a sustainable development result: (i) updating the old environmental legal provisions and strengthening of monitoring & enforcement; (ii) promoting transition towards environmentally sustainable infrastructure and green growth; (iii) undertaking urgent measures for conservation of natural resources and biodiversity; (iv) mainstreaming risks of climate change in development; (v) preparing for pre and post disaster risk management; and (vi) improving environment related data management, updating and dissemination.

About the Asian Development Bank

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to approximately two-thirds of the world’s poor: 1.6 billion people who live on less than $2 a day, with 733 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.

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Documents

Country Environment Note: Nepal - Asian Development Bank · Nepal Country Environment Note Mandaluyong City, Philippines: Asian Development Bank, 2014 The views expressed in this