National Action Plan for Electric Mobility
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Accelerating Implementation of Nepal’s Nationally Determined Contribution National Action Plan for Electric Mobility April 2018 i Global Green Growth Institute April 2018 Global Green Growth Institute Jeongdong Building 19F 21-15 Jeongdong-gil Jung-gu, Seoul 04518 Republic of Korea Recommended citation: GGGI (2018). National Action Plan for Electric Mobility: Accelerating Implementation of Nepal’s Nationally Determined Contribution. Seoul: Global Green Growth Institute. The Global Green Growth Institute does not make any warranty, either express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or any third party’s use or the results of such use of any information, apparatus, product, or process disclosed of the information contained herein or represents that its use would not infringe privately owned rights. The views and opinions of the authors expressed herein do not necessarily state or reflect those of the Global Green Growth Institute. All photos, including the cover photo, by Robic Upadhayay. ii Accelerating Implementation of Nepal’s Nationally Determined Contribution National Action Plan for Electric Mobility April 2018 iii i Preface In our country, outdoor air pollution has become an urgent Ministry of Physical Infrastructure and Transport. The plan issue. Every year, is contributes to an estimated 9,000 identifies both the major barriers that constrain us and premature deaths in Kathmandu Valley alone. In our fight proposes ideas and strategies for solutions and against air pollution and greenhouse gas emissions, the opportunities that can lead us forward. Success with the electrification of the transport sector is an important goal plan’s many recommendations will require proactivity and because widespread electrification would greatly improve optimism from a range of government, private sector and the quality of the air we breathe. And in fact, switching to civil society partners. electric vehicles has been a core target of the Ministry of Forests and Environment since 2015, when Nepal’s I would like to thank the team that assembled this plan, Nationally Determined Contribution was established. including experts from the Ministry of Forests and Environment, the Ministry of Physical Infrastructure and But switching to electric is challenging and much needs to Transport, and the Global Green Growth Institute, as well change. This National Action Plan for Electric Mobility as private sector and civil society partners. As Nepal moves charts a path ahead for the achievement of the ambitious toward greater and greater sustainability, this plan acts as electric mobility targets we adopted under the Nationally an important guide for cleaning our air and greening our Determined Contribution, supported by policy from the transport sector. Bishwa Nath Oli, Ph.D Secretary Ministry of Forests and Environment ii Foreword We are a landlocked country and to meet our demand for The Ministry of Physical Infrastructure and Transport fossil fuel, we must import all our oil needs, costing an believes that the electrification of the transport sector is estimated NPR 108 billion (USD 1.3 billion) during the last the way forward. For over a decade, we have been setting fiscal year (2073/74). But the other side of the coin looks out ambitious, sustainable and low-carbon transport policy better - we have immense hydropower potential. There is and targets. We need to ensure that all the supporting and an estimated 83,000 MW of energy in our rivers, and we enabling conditions are in place to stimulate growth in are currently capturing only a fraction of that. This makes electric vehicles, and this plan is a valuable contribution to electric vehicles well positioned to assume a much greater this. The many actions in the plan collectively chart a path role within our transport systems. In addition, electric forward, supporting the transport sector into a bold new vehicles are cheaper to run than conventional vehicles. electric future. Madhusuda Adhikari Secretary Ministry of Physical Infrastructure and Transport iii Foreword I would like to thank the leaders of the Ministry of Forests We believe the actions presented in this plan, if realized by and Environment and the Ministry of Physical Infrastructure government and partners, can make a significant difference and Transport for giving the Global Green Growth Institute to the sustainability of Nepal’s transport sector, and as a the opportunity to support the Government of Nepal by result, the prosperity, health and well-being of Nepal’s developing this National Action Plan for Electric Mobility. people and environment. We are confident that these The Institute’s Nepal office is hosted by the Ministry of actions are well designed to generate strategic and Forests and Environment, and we are particularly grateful operational advantages for Nepal, and we stand ready to to Dr. Oli for his ongoing guidance. In many of Nepal’s support federal, provincial and local governments with any sectors, ambitious policy and targets are in place for a further services to advance implementation. greener, more sustainable and inclusive future, and the Global Green Growth Institute is actively working alongside the Government of Nepal to help realize these. Jin Young Kim Head of Program Asia and Pacific Region Global Green Growth Institute iv Abbreviations AAGR annual average growth rate ADB Asian Development Bank BAU business as usual CAGR compound annual growth rate CDKN Climate and Development Knowledge Network CO carbon monoxide CO2 carbon dioxide CO2e carbon dioxide equivalent COP21 21st Conference of the Parties DOTM Department of Transport Management EU European Union FDG focus group discussion GCF Green Climate Fund GDP gross domestic product GGGI Global Green Growth Institute GHG greenhouse gas GON Government of Nepal ICIMOD International Centre for Integrated Mountain Development KII key informant interview KMC Kathmandu Metropolitan City LMC Lalitpur Metropolitan City LULUCF land use, land-use change, and forestry MOF Ministry of Finance MOFE Ministry of Forests and Environment MOPIT Ministry of Physical Infrastructure and Transport NDC Nationally Determined Contribution NMVOC non-methane volatile organic compound NOx nitrogen oxide NPR Nepali rupee PM particulate matter SO2 sulfur dioxide UNDP United Nations Development Program UNFCCC United Nations Framework Convention on Climate Change USD United States dollar v Contents Executive Summary .................................................................................................................................................................... 1 Transport and Nepal’s Nationally Determined Contribution ..................................................................................................... 1 Transport Sector Growth, Associated Emissions and Electrification Scenarios ......................................................................... 2 Barriers to Electric Mobility........................................................................................................................................................ 2 Priority Actions for Electric Mobility .......................................................................................................................................... 3 Introduction to the Action Plan .................................................................................................................................................. 5 Background ................................................................................................................................................................................ 5 Goal and Objectives ................................................................................................................................................................... 5 Structure of the Report .............................................................................................................................................................. 6 Methods and Engagement Process ............................................................................................................................................ 6 Stakeholders and Consultations ................................................................................................................................................. 7 Part 1. Electric Mobility in the Nationally Determined Contribution and Associated Policy ...................................................... 11 Chapter 1. Transport and Nepal’s Nationally Determined Contribution ................................................................................... 13 1.1 Introduction ....................................................................................................................................................................... 13 1.2 A Global Mechanism for Managing Climate Change .......................................................................................................... 13 1.3 Nepal’s Nationally Determined Contribution ..................................................................................................................... 13 1.4 Compliance and Implementation ....................................................................................................................................... 14 Chapter 2. Associated Policy and Regulation ...........................................................................................................................