COUNTRY ENVIRONMENT NOTE

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

Asian Development Bank Nepal Country Environment Note Mandaluyong 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 Bank 6 ADB Avenue, Manila, Philippines Tel +63 2 632 4444 Fax +63 2 632 2444 www.adb.org Contents

Foreword v Abbreviations vii

1. State of the Environment 1 A. Geopolitical and Macroeconomic Context 1 B. Nepal’s Environment and its Changing Conditions 2

2. Government Priorities for Sustainable Development 15 A. Government Priorities and Commitments 15 B. Nepal Millennium Development Goals 16 C. Sector Policies, Strategies, and Plans related to Environmental Sustainability 16 D. Institutional Development 17 E. Financing for Environmental Activities 20

3. Support by Development Partners in Environmental Safeguards 21 A. ADB’s Support to Nepal for Sustainable Development 21 B. Support by Other Development Partners 22

4. Achievements, Key Issues, and Challenges 23 A. Achievements 23 B. Key Issues and Challenges 24

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

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

iv COUNTRY ENVIRONMENT NOTE: Nepal Foreword

Environment protection and conservation in the ADB has recently conducted Midterm Review process of development is particularly of high (MTR) of Strategy 2020: Meeting the Challenges relevance in Nepal. The country is one of the of a Transforming Asia and the Pacific. In line prime biodiversity hotspots of the World. With with the recommendations of the MTR, ADB is highly fragile and young mountain geology, Nepal committed to support DMCs to perceive the risks exhibits a broad range of diversity–topography and prepare proper mitigation measures to minimize from sea level to the tallest peak in the World, environmental degradation, reduce greenhouse precipitation from arid areas to highly gas emission, and avoid social, economic and prone plains, and environment from glacial environmental damages while carrying out the to tropical ecosystems. The diversity provides development activities. ADB’s Nepal Country immense opportunities as well as challenges in Partnership Strategy 2013-2017 (CPS) has attaining environmentally sustainable growth. The considered sustainable environmental development natural and human related activities have been as one of its thematic drivers of change. CPS focuses causing rapid environmental degradation and loss on mainstreaming environmental safeguards in of biodiversity. The phenomenon of global warming investments and aims to extend support in disaster and impacts of climate change, and increasing and climate change risk management. frequency and magnitude of natural disasters have become a formidable threat in achieving sustainable This Country Environment Note (CEN) summarizes development and protecting livelihood of millions of the state of environment of Nepal and brings people. together the information on environment, climate change and disaster risks under a single Nepal is in the state of economic transition publication. It is based on secondary information experiencing increasingly resource-intensive growth. with triangulation and verification with relevant It is characterized by rapid urbanization, changing stakeholders encompassing government, consumption by a fast rising middle class, expanding non-government, development partners and production patterns, and demand for infrastructure. academicians. This publication is aimed to The economic and environmental challenges hasve provide consolidated information for policy- had impacts on the people. Rising air and water makers, planners and implementers to adopt pollution, waste generation, worsening water stress, and environmentally sound development activities. The increasing natural disasters are all threating sustainable Note is also expected to be a reference material for development and poverty reduction. Only respite from academicians and other related stakeholders. the challenge is by adopting environmentally sound and climate friendly development works based on informed policy making and planning.

Kenichi Yokoyama Country Director Nepal Resident Mission Department, Asian Development Bank

COUNTRY ENVIRONMENT NOTE: Nepal v 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 Celsius µg - microgram cm - centimeter g - gram Gg - Giga gram Gt - Giga ton ha - hectare kg - kilogram km - kilometer kW - kilowatt km2 - square kilometer l - liter m - meter mg - milligram ml - milliliter mm - millimeter mS - milliSiemens MW - megawatt MWp - megawatt peak m3 - cubic meter Wp - watt peak

NOTES In this report, “$” refers to US dollars.

vi COUNTRY ENVIRONMENT NOTE: Nepal Abbreviations

ADB Asian Development Bank ADF Asian Development Fund AEPC Alternative Energy Promotion Centre amsl above mean sea level BCM Billion Cubic Meter BS Bikram Sambat CEN Country Environment Note CFUG Community Forest User Group CPS Country Partnership Strategy DANIDA Danish International Development Agency DFID Department for International Development (UK) DFRS Department of Forest Research and Survey DHM Department of Hydrology and Meteorology DNPWC Department of National Parks and Wildlife Conservation EIA Environmental Impact Assessment EPA Environment Protection Act EPC Environment Protection Council EPR Environment Protection Rules EU European Union FINNIDA Finnish International Development Agency GDP Gross Domestic Product GHG Greenhouse Gas GIZ German Federal Enterprise for International Cooperation GLOF Glacial Lake Outburst Flood GON Government of Nepal ICIMOD International Centre for Integrated Mountain Development ICT Information and Communication Technology IEE Initial Environmental Examination IFRC International Federation of Red Cross and Red Crescent Societies IPCC Intergovernmental Panel on Climate Change IUCN International Union for the Conservation of Nature JICA Japan International Cooperation Agency LAPA Local Adaptation Plan of Action LDC Least Developed Country LRMP Land Resources Mapping Project MAP Medicinal and aromatic plant MCCICC Multi-stakeholder Climate Change Initiatives Coordination Committee

COUNTRY ENVIRONMENT NOTE: Nepal vii MDG Millennium Development Goal MFALD Ministry of Federal Affairs and Local Development MLRM Ministry of Land Reforms and Management MOAD Ministry of Agricultural Development MOE Ministry of Energy MOFSC Ministry of Forest and Soil Conservation MOHA Ministry of Home Affairs MOI Ministry of Industry MOIrr Ministry of Irrigation MOLD Ministry of Local Development MOPH Ministry of Population and Health MOSTE Ministry of Science, Technology and Environment MOUD Ministry of Urban Development MPPW Ministry of Physical Planning and Works MPIT Ministry of Physical Infrastructure and Transport NAPA National Adaptation Program of Action NEA Nepal Electricity Authority NEPAP National Environmental Policy and Action Plan NGO Non-governmental Organization NPC National Planning Commission NPWC National Parks and Wildlife Conservation NRRC Nepal Risk Reduction Consortium NTFP Non-timber forest product OCHA Office for the Coordination of Humanitarian Affairs PEI Poverty Environment Initiative PM Particulate Matter SDAN Sustainable Development Agenda for Nepal SDC Swiss Agency for Development and Cooperation SEA Strategic Environmental Assessment SLCP Short-lived Climate Pollutant SPCR Strategic Program for Climate Resilience SWM Solid Waste Management TA Technical Assistance TSP Total Suspended Particles TSS Total Suspended Solids UNDP United Nations Development Programme UNEP United Nations Environment Programme UNESCO United Nations Educational, Scientific and Cultural Organization UNISDR United Nations International Strategy for Disaster Reduction USAID United States Agency for International Development WECS Water and Energy Commission Secretariat WFP World Food Programme WHO World Health Organization

viii COUNTRY ENVIRONMENT NOTE: Nepal 1 STATE OF THE ENVIRONMENT

A. Geopolitical and by remittance-induced consumption demand in Macroeconomic Context the services sector, and the -dependent agricultural sector. GDP growth averaged 4.5% 1. Nepal is a landlocked, predominantly over 2007–2014, far lower than the economy’s mountainous country bordered by to the potential, as a severe energy crisis, a dilapidated north and to the south, east, and west. It and inadequate road network, labor disputes, and has an area of 147,181 km2 and its rectangular poor governance hampered the industrial sector. proportions measure on average 885 km in length Consequently, the lack of sufficient employment and 193 km in breadth. Administratively, the opportunities has led to significant out-migration, country is divided into five regions and 75 districts which peaked at 527,814 (a daily average of 1,446 across three broad physiographic regions: (i) the persons) in 2013/14 from a low of 2,159 in 1995/96 southern plains, with 20 districts that cover (a daily average of 6 persons). Remittance inflows 23% of its area, (ii) the Mid-Hills, with 39 districts increased drastically, reaching 28.2% of GDP in that cover 41.8%, and (iii) the northern Mountains, 2013/14, up from 1.7% of GDP in 1995/96. with 16 districts that cover 35.2% of area. In 2013, Nepal had a population of 27.2 million. Nominal 4. Nevertheless, over the last two-and-a-half per capita Gross Domestic Product (GDP) grew decades, Nepal has made considerable progress from $498 in 2009 to $713 in the year 2013/14. in reducing absolute poverty. The overall poverty rate has been reduced gradually, from 41.8% in 2. Development planning in Nepal began with 1995/96 to 25.2% in 2010/11. The Millennium the formulation of the first Five Year Plan in 1956. Development Goal (MDG) target of reducing the Monarchial system governed the country until poverty level to 21% by 2015 appears achievable. the People’s Movement in 1990 re-instated a With the reduction in poverty, the poverty gap has multiparty democratic system. Limited progress halved and the inequality gap has narrowed. The was made during this period in the areas of Gini coefficient fell from 41.4 in 2003/04 to 32.9 transportation, communications, health, irrigation, in 2010/11. Nepal’s decline in poverty has been drinking water, and literacy. Between 1964/65 and driven by: (i) significant increase in remittances; 1989/90, the annual average growth in GDP was (ii) increased wage rates in agricultural and non- 3.4%, with agriculture and non-agriculture growth agricultural sectors; (iii) increased access and averaging 3% and 3.8%, respectively.1 connectivity; (iv) urbanization; and (v) increased proportion of active human resources in the 3. Economic growth has failed to pick up, stagnating population.2,3 However, the country continues to below 5% since 1990, and is supported largely face regional, rural-urban, and social disparities.

1 Government of Nepal, National Planning Commission. 1992. The Eighth Plan 1992-1997. . 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.

COUNTRY ENVIRONMENT NOTE: Nepal 1 Poverty incidence has a regional dimension: 42% market rigidities, and rolling out fundamental of poor people live in the mountains and 23% in structural reforms conducive to attracting foreign the Terai, and over half the population in Nepal investment.5 lives in mountainous region. Poverty among socially disadvantaged groups is significantly 7. Nevertheless, Nepal’s GDP growth pattern higher than the national average. The country is has thus far been minimally damaging to likely to achieve the majority of the MDG targets, the environment, as the industrial sector’s including those on education and child and contribution to growth has been relatively low, maternal mortality, but more concerted efforts are at one-tenth of overall growth. The service required in areas such as generating productive sector's contribution has been the largest, but a employment, increasing access to sanitation, and majority of the goods it uses are manufactured reducing malnutrition, particularly if the country outside Nepal and imported for consumption, has to achieve its overarching goal to graduate which is mostly financed by remittance incomes. from the category of least developed country The contribution of the agriculture sector to (LDC) to that of a developing country by the year GDP growth is dependent on monsoon rains, 2022. supplementary irrigation, and timely availability of agricultural inputs, most notably seeds and 5. Nepal’s unique geological setting, rich natural chemical fertilizers. As investments are ramped resources, abundant water, fertile lands, and up to generate increased electricity, develop cultural diversity form a sound basis for the infrastructure, and expand manufacturing socio-economic development of the country. activities in the short to medium term in order to However, sustainable use and management of achieve higher growth rate and create jobs, a key these resources has been the main challenge. challenge would be to ensure that these activities Even the modest economic growth achieved in are environment-friendly so that the resulting past decades has come at a high environmental growth is not only high and inclusive, but also cost. Soil erosion and degradation, declining soil sustainable. Otherwise, haphazard construction fertility, Nepal’s monsoon-dependent agriculture, of infrastructure— including roads, water supplies, the unsustainable use of fertilizers and pesticides, irrigation, and hydropower plants—without as well as increasing temperatures, variation in necessary due diligence for environmental precipitation, and frequency and intensity of sustainability, may result in high socio-economic and has reduced agricultural costs to the country in the long run. In addition to production,4 affecting the 76% of households these economic activities, traditional agricultural dependent on agriculture. practices also need to transform, moving towards commercial and high value agriculture. 6. Despite these constraints, Nepal has the potential to deliver higher and more inclusive growth by properly utilizing the large amount of B. Nepal’s Environment and its water available for generating hydropower and Changing Conditions irrigation, processing its abundant medicinal herbs, and promoting tourism. Agriculture 1. Physical Environment has high potential if productivity is increased and transformed into commercial high value a. Land Resources products. However, tapping into the country’s 8. Nepal, located in the Central Himalaya, has growth potential requires addressing the binding five physiographic regions. From south to north, constraints, such as cutting the high infrastructure these are the Terai flatlands (below 500 m), deficit, establishing political stability, providing an Lower Hills (Chure or Siwalik, between 500–1,000 industry-friendly environment, controlling labor 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.

2 COUNTRY ENVIRONMENT NOTE: Nepal Mountains (3000–5,000 m), and High Himalaya Figure 1. Physiographic Regions of Nepal (above 5,000 m). The lowest elevation is 60m

amsl at Kechana Kalan in of the High Himal eastern Terai, and the highest is the peak of Mount High Mountain Everest at 8,848m amsl in the north. The Terai Middle Mountains comprises 14.3% (21,104 km2) of the total land area of the country. Over 82% of the country’s Siwaliks land is considered mountainous, while just over Terai 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 . The High Mountains Source: Soil Science Division, NARC have a cool temperate to sub-alpine climate. be found up to 4,500 m in this zone. Natural The High Himalaya has an alpine to tundra-type vegetation is scarcely available, being limited climate (Appendix 2).7 Settlements are mostly in to Caragana-Lonicera steppe-spiny shrubs and the tropical, sub-tropical and temperate zones. occasional trees, and is heavily exploited for People use Trans-Himalayan and sub-alpine domestic use and for grazing by mountain , areas for grazing their transhumant livestock and accelerating the desertification process. for collecting natural resources for domestic and b. Land Use and Land Quality commercial purposes. 11. The Land Resource Mapping Project (LRMP), which surveyed the land use pattern of the country 9. The remarkable differences in climatic in 1978/79, indicated that 42.8% of its area was conditions are due to the rapid change of altitude forest and shrub land, 20.1% was agricultural land, within a short north-south distance, averaging 193 11.9% was grassland, 13.2% was rocky area, 3.5% km. Nepal is made up of eight ecological zones: (i) was comprised of water bodies and snow, and lower tropical, (ii) upper tropical, (iii) sub-tropical, 8.5% comprised other land types (Appendix 3). (iv) temperate, (v) sub-alpine, (vi) alpine, (vii) Rivers, lakes, reservoirs, ponds, and marshlands are Trans-Himalayan, and (viii) Nival/arctic (Appendix categorized as wetlands, which cover 416,563 ha 2). The tropical and sub-tropical zones occupy of the country.9 No land surveys have been carried 58% of the country’s area, and the temperate, sub- out since then to reassess the changes in land alpine, alpine, Trans-Himalayan, and Nival zones use patterns, though a national forest inventory occupy 12%, 9%, 8%, 8%, and 5% respectively. was prepared in the early 1990s and a National Agriculture Census has been carried out every 10. Lying north of the Himalayan range, the decade since 1961, which takes account of cultivated Trans-Himalayan Zone is a rainshadow area with and arable land. In 2012, the government initiated a arid and semi-arid valleys, and low temperature National Land Use Project, which in four to five years stress. It has a mean annual temperature of 6.5°C, is expected to update national land use data.10 moisture-deficient annual precipitation of 157– 339 mm,8 and dry winds and a high evaporation 12. Land degradation is a problem in all geographical rate that causes desertification. Settlements can areas of Nepal. Water-induced erosion, ,

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

COUNTRY ENVIRONMENT NOTE: Nepal 3 Figure 2. Uncultivable land due to flooding/soil erosion (% of total land) c. Water Resources 14. Nepal possesses 2.27% of the world’s freshwater 4.5 resources.15 Around 6,000 rivers and rivulets with a 4 total drainage area of 194,471 km2 flow north to south 3.5 to drain into the River in India, contributing 3 47% of its monsoon flow. About 76% of the total 2.5 drainage area of these rivers lies within Nepal, with 2 the rest in China. Perennial rivers originating in the 1.5 2001 High Himalaya region such as the Koshi, Gandaki, 1 Karnali, and Mahakali Rivers carry snowmelt and 0.5 2012 precipitation flows with significant discharge. Rivers 0 such as the Mechi, Kankai, Kamala, and Babai Hill Terai

Nepal originate in the Middle and High Mountains and are Central Eastern Western Mountain Farwesern fed by precipitation as well as groundwater. They are Midwestern characterized by wide seasonal fluctuations. Rivers originating from the Siwalik are seasonal with little Ecological belt Development region All 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 surface exposure, wastage of topsoil, riverbank cutting, rivers in the Terai is in the range of 8 to 14, indicating floods, silt deposition, water logging, deforestation, and limited amounts of water in the rivers during the dry wind erosion are the major causes of land degradation. season.16 Upstream water resources development In 2008, about 45.4% (6.7 million ha) of the country’s in the Koshi and Mahakali Rivers—which are total land area was affected by water-induced erosion transboundary snow-fed rivers—would affect their and about 4% (0.6 million ha) by wind erosion.11 The discharge in Nepal, as only 34% and 46% of the total area affected by floods is estimated to be 8,987 2km , catchment area of these rivers, respectively, lie in and the area affected by waterlogging is estimated Nepal.17 to be 7,297 km2.12 Inundation and waterlogging in the Terai plains bordering India have increased due to 15. The annual water flow in all the rivers of Nepal the embankment of elevated highways and irrigation is about 220 billion m3 (BCM), of which only 15 dykes constructed both within and across the border.13 BCM (6.9%) is utilized. The per capita renewable water resource was 9,600 m3 per year in 2001 13. Overall watershed conditions are deemed while annual withdrawal was only 800 m3 (8.4%).18 poor in the Siwalik and Middle Mountains, which In most of the parts of the country, there is an together make up 43% of the country’s total land acute shortage of surface water for all purposes area. These areas are highly susceptible to water- in the dry season. The lack of infrastructure has induced erosion and as a result their physical restricted the withdrawal potential. The rivers and biological status is diminishing and their in the Siwalik and Middle Mountains have been productive capacity is declining.14 The national partially dammed at several places for irrigation, sample census of agriculture in 2011/12 indicated with a total command area of 0.96 million ha in that 2.4% of cultivable land had been rendered the wet season.19 uncultivable due to flood and erosion.

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.html 13 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.

4 COUNTRY ENVIRONMENT NOTE: Nepal 16. In the past four decades, rivers in the Middle Figure 3. Energy consumption by sector 2009/10 Mountains have been dammed, mostly for generating electricity. The country has the techno- economic potential of generating 43,000 MW Transport, 7% Commercial, 1% of hydropower. However, it has only 717 MW of Industrial, 4% Agriculture, 1% 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 Residential, 87% 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 19. Degradation of watersheds, deforestation, Static Water Level partners, had installed the following by 2012: micro- destruction of recharge areas due to urbanization, (SWL) and pumping hydropower plants (40 MW installed capacity; and the impacts of climate change are water level (PWL) potential 100 MW), solar photovoltaic home having adverse effects on the recharging of have depleted in the systems (329,000 units equivalent to 7.3 MW peak, groundwater. As fetching water is one of the main as a or MWp, taking the average size of a solar home responsibilities of women in rural areas, depletion result of overuse, lack system to be 45 Wp), biogas plants (280,000 units; of groundwater and the drying up of water sources of water conservation potential 1.9 million), improved cooking stoves (springs and wells) have direct impact on the practices, and loss (739,000 units; potential 2.5 million), improved hardships faced by women, as it can mean that of recharge areas water mills (9,015 units; potential 30,000), and they have to walk for several hours daily in order to due to haphazard windpower plants (10 kW; potential 3,000 MW). fetch a bucket of water. construction. While About 74.2% of energy requirements are met by SWL and PWL were fuelwood, 6% by animal dung, 13% by fossil fuel, and 2. Pollution 48.1 meters and 67.6 3% by hydropower and renewable energy. Women 20. Total emissions of selected pollutants in meters respectively in in rural areas spend hours collecting fuelwood, the country were estimated to be over 63,000 1976 in the Bansbari and girls are kept from going to school carrying out tons in 1993. This increased five-fold by 2013. suburb of Kathmandu, chores such as collecting fodder and fuelwood and The existing systems of air and water quality it went up to 80.6 fetching water.20 monitoring are weak. Dust and vehicular meters and 136.1 emissions are the major air pollutants in urban meters, respectively, 18. Nepal possesses 12 BCM of groundwater, areas. The situation is exacerbated by poor traffic by 1999.22 of which 5.8 BCM can be extracted annually management, poor vehicle maintenance, and the without any adverse effects, and is available use of adulterated and sub-standard fuel. Burning both in shallow and deep aquifers. Despite this, of biomass is the major cause of air pollution in groundwater extraction is only 0.756 BCM for rural areas. Nepal annually uses 7.66 million tons irrigation and 0.297 BCM for domestic use,21 of energy, of which fuelwood comprises 74.2% which is 17.8% of the potential. Groundwater is and petroleum products 9.5%. Fuelwood alone abundant and underutilized in the Terai, whereas contributed 80%−94% of the total pollutants. In over-extraction of groundwater has depleted the 1999/2000, burning of biomass constituted about groundwater table in the Kathmandu Valley. 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.

COUNTRY ENVIRONMENT NOTE: Nepal 5 23 sector. Of this, fuelwood produced 89% TSP, warming after CO2 emissions. Reducing SLCPs

77% CO2, 81% NOx, and 35% SOx. In 2000, Nepal would save the lives of millions of people who

produced 0.94 million tons CO2, 0.29 million tons depend on traditional heating and cooking fuels,

of TSP, and 0.11 million tons of NOx and SOx. The and also help improve . ambient air quality measured in major urban areas 3 indicates high levels of PM10 (196–2,104 μg/m ), 23. Arsenic contamination in groundwater, which is 3 TSP (260–2,222 μg/m ), and SO2 (85–140 ug/ used as drinking water, is a major problem in Terai, m3).24 The transport sector contributes the largest where over 50% of the country’s population reside. share of pollutants. The total number of vehicles The World Health Organization (WHO) threshold in the country reached 1.13 million in 2010/11, for arsenic content in water is 10 μg/l. Tests carried with a density of 53 vehicles per kilometer of road. out in the 25 Terai districts have indicated that in Although vehicles below the Euro III standard are 13 districts, arsenic content ranges from 10–50 μg/l restricted for import, the impact has been low due and in some areas this is even higher than 50 μg/l, to weak monitoring and enforcement systems. placing 2 million people at risk.

21. Particulate Matter (PM10 and PM2.5) is the 24. Deteriorating urban water bodies are polluted dominant air pollutant in the Kathmandu Valley. by direct sewerage and industrial effluent Its concentration is observed to be higher at discharge, dumping of solid waste, and nutrients night during the winter, due to the creation of from agro-chemicals from non-point sources. The an inversion layer that acts as a blanket to trap rivers of the Kathmandu Valley are biologically pollutants. Kathmandu’s annual average air quality dead. The government and development partners 3 3 levels stand at 50 μg/m for PM2.5 and 114 μg/m for are making efforts to improve river environments 25 PM10. According to Yale University’s Environment and regenerate their cultural value. Performance Index 2014, Nepal ranks 177th out of 178 countries for poor air quality. 25. Improper solid waste management (SWM) is a major problem in Nepal’s municipalities. The 22. Black Carbon is a short-lived climate pollutant average household waste generation rate in the (SLCP), the most significant contributor to global 58 is 317 g/capita/day, which is 50%–75% of total municipal solid waste Figure 4. Annual mean concentration of particulate matter generation. Total solid waste generated in the 58 3 municipalities is estimated to be 1,435 tons/day, or (PM2.5 and PM10) in μg/m in Asian cities 524,000 tons/year. Organic matter in the waste 350 accounts for 66% in household waste and 43% in commercial waste. Only 6 municipalities dispose 300 of waste in sanitary landfill sites. Municipalities 250 spent an average of 10% of their total budget on SWM, of which 60%–70% is used in street 200 sweeping, 20%–30% for transport, and the rest 150 for final disposal of waste. In the absence of

100 proper landfill sites, most municipalities (including Butwal, , Janakpur, and 50 municipalities) directly dump the collected waste 0 in rivers, forests, or agricultural fields. There is no separate arrangement for managing hazardous Delhi Seoul Dhaka Kolkata Karachi and medical waste. Interventions including policy Thimpu Mumbai Shanghai Colombo Bangalore

Kathmandu development, adoption of the 3R principle (reduce, recycle, and reuse), capacity building of local PM2.5 PM10 WHO-PM2.5 WHO-PM10 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)

6 COUNTRY ENVIRONMENT NOTE: Nepal generation among the public are needed to develop ha), 1 hunting reserve (0.13 million ha), and 6 an effective SWM system.26 conservation areas (1.54 million ha).

3. Biological Environment 27. In recent times, forest areas have been encroached on as the main source for expanding a. Forest farmland, settlement, and infrastructure 26. Forest area covers about 5.83 million ha development. Fuelwood used for cooking has (38.9% of the total land area) of the country. gradually gone down from about 70% of the total A recent study under the support of the households in 2003/0428 to 64.4% in 2010/11.29 Government of Finland has found 0.41 million ha Nevertheless, Nepal lost 2.72 million ha of forest (20.41%) of Terai and 1.37 million ha (20.41%) of with more than 10% crown cover between 1965 and Chure is covered by forest. Forests provide vital 2013 with an average annual devegetation of 56,710 A recent study by natural resources including fuelwood, timber, ha. Of this total area, 1.76 million ha was degraded to MOFSC reveals that 30 forage, medicinal and aromatic plants (MAPs), and shrub land (Table 1). Altogether, 0.96 million ha of 0.44% forest area non-timber forest products (NTFP). They also total forest and shrub land is estimated to have been of Terai and 0.18% contribute to the protection of watersheds, act as lost to farming, urban expansion, and infrastructure of Chure area are carbon sinks, and provide support in the regulation development, or left barren. Climax shrub vegetation lost every year. The of atmospheric conditions. Forest types in Nepal exists in the Trans-Himalayan zone and alpine zone study also indictes comprise tropical, sub-tropical broadleaved, sub- but its coverage is limited. The rate of loss of forest is that 6 trees are cut tropical pine, temperate broadleaved, temperate alarming; it has affected natural habitats, biodiversity, per ha in Terai and 3 conifer, sub-alpine conifer, alpine scrub, and and ecosystems. The loss can be attributed to: (i) trees are cut per ha Trans-Himalayan steppe rangelands consisting uncontrolled use of forest products, (ii) increasing in Chure from the 27 of spiny dwarf shrubs. Forestry contributed pressure of human and livestock, (iii) smuggling of forest every year. 9.5% to GDP in 2008 with direct products and logs, and (iv) gaps in forest policy.31 27.5% of GDP in environmental services. Forests supply 78.14% of rural energy needs in the 28. Despite rapid deforestation, Nepal has been form of fuelwood (Ministry of Forest and Soil successful in participatory forest management, Conservation, 2008). Protected areas cover 19.4% and possesses 1.23 million ha of community forest of the total area of Nepal, with 10 national parks and 0.56 million ha of buffer zones around 12 (1.08 million ha), 3 wildlife reserves (0.1 million protected areas.32 A total of 1.7 million ha of forest

Table 1. Changes in Forest Resources in Nepal Year 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.

COUNTRY ENVIRONMENT NOTE: Nepal 7 Figure 5. Total forest area as % of total land forest clearance by development activities by compelling developers to plant trees at a ratio of 46 1:25 for each felled tree and safeguard them for five 44 43.8 years. The lost forest area has to be replaced by the 42.8 42.2 developer by arranging for an equal area of land for 42 compensatory tree plantation in coordination with the government (working procedure for allowing 39.5 40 38.9 the use of forest area for other purposes- cabinet decision of 10.11.2063 BS). 38 37.3 b. Grasslands 36 29. According to the LRMP study, Nepal had 1.757 million ha of grasslands in 1978/79, which 34 1965 1978 1985 1994 2011 2013 was 11.9% of the total land area. Changes in coverage have not been scientifically assessed since then. Grasslands in sub-alpine–alpine land (about 31% of the total national forest area areas and the Trans-Himalayan zone constitute including shrub land) was managed by 18,133 climax vegetation, whereas grasslands or grazing community forest user groups (CFUGs) formed by lands scattered in forest areas in sub-tropical to 2.237 million households (41% of households) as of temperate zones have biotic and edaphic causes, October 2013. The local beneficiaries manage the and constitute mostly anti-climax vegetation. forest and utilize forest resources in a sustainable Savannah grassland in tropical areas has already manner based on the annual plan approved by the disappeared except in protected areas. Steppe district forest offices. By 2024, the government rangelands have been severely depleted both in aims to bring 2.3 million ha of forest area under terms of area and productivity.33 Higher stocking the community forestry regime, according to the rates, uncontrolled grazing, and haphazard Forestry Sector Strategy for Nepal (2014–2024). lopping of fodder trees have reduced the average Learning lessons from the loss of forest during productivity of grazing areas in the sub-tropical the implementation of development activities and temperate zones while sub-alpine grasslands, in the past, the government has adopted one of mainly used for seasonal pasturage, are losing the highest regulatory requirements for offsetting 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. Biodiversity 30. 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 Source: Arnaud Cauchois, ADB, 2013

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.

8 COUNTRY ENVIRONMENT NOTE: Nepal and 1 reptile species.35 A total of 228 fish species are Figure 6. Protected Areas of Nepal 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 Source: NTNC 200 species of vegetables in the country.38 The 33. There are 11 hydropower and 12 irrigation government has afforded protected status to 11 systems in Nepal with major dam structures, and species of MAPs and 7 species of timber trees 220 hydropower projects at different stages of through various acts and regulations (Appendix planning on various rivers without considering 7).39 However, due to weak enforcement most of basin-wide cumulative impact assessments. The these species, such as Panch Oule (Dactylorhiza major challenges associated with cross-dam hatagirea), Jatamansi (Nardstachys grandiflora), structures are their adverse impact on aquatic Loth Salla (Taxus spp.), Yarsagumba (Cordyceps ecosystems and biodiversity, and many populations sinensis), Khayar (Acacia catechu), Sal (Shorea of indigenous fish species have already been robusta), Satisal (Dalbergia latifolia) and Simal diminished or lost. Storage-type hydropower causes (Bombax ceiba) are being harvested at an alarming large-scale inundation of settlements, agricultural rate for their high economic value. Out of 32 fields, and forest, and transforms the existing rare plant species, 8 are already reported to be ecosystems. Environmental safeguards for the extinct.40 protection of aquatic biodiversity are comparatively satisfactory in donor-funded projects. Damming of 32. Nepal’s diversified biological resources, rivers, destructive fishing practices, introduction of besides maintaining ecosystem equilibrium, exotic fish species (e.g. tilapia, bighead carp, silver provide ecological goods to people and have great carp, grass carp, common carp, rainbow trout, and economic value to the rural population. However, African catfish), extraction of riverbed materials forest degradation in the past five decades has (damaging fish habitat and spawning grounds), and adversely affected forest vegetation and biodiversity a lack of policy to protect aquatic biodiversity have throughout the country except in protected areas contributed to the rapid decline of fish species, and their buffer zones. The major causes of forest particularly Tor tor (deep-bodied Mahseer), Tor degradation are clearing trees for meeting household putitora (Golden Mahseer), Schizothorax species fuelwood demand, semi-processing agriculture (Asla), and Anguilla bengalensis (Raj Bam). products, illegal in-country or transboundary timber Transmission lines have caused stratification of sales, overgrazing, uncontrolled extraction of MAPs forest habitat as they are generally aligned through and NTFPs, and forest fires. 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.

COUNTRY ENVIRONMENT NOTE: Nepal 9 accounted for 65.2% of GDP in 1964/65, which Women’s Empowerment at the Frontline of Adaptation, gradually went down to 40.4% of GDP in 1996/97, ICIMOD Working Paper 2014/13, Nepal and 34.1% of GDP in 2013/14. About 76% of the households in Nepal are dependent on agriculture. Across Nepal, there has been an increase in rural women’s workload, with multiple effects on their health, income, safety, nutrition as 36. A total of 29.6% (2.5 million ha) of Nepal’s land is well as social, economic, and political empowerment. Over 65% of arable. Of this, only 27.74% of land has some form of Nepal’s total population is engaged in agriculture; 78% are women. irrigation facility (World Bank 2009). About 17% of In areas where most of the economically active men have migrated the arable land is cultivable at 100% to 250% cropping in search of employment, women have become the backbone of rural intensity. The majority of farm families, particularly in development, providing most labor inputs. However, climate change the hills and mountains, are subsistence farmers with and variability in water availability has negatively affected women’s small land holdings (Bartlett et. al. 2010). Commercial livelihoods. The hardening of agricultural soil and the emergence cereal farming is concentrated in the Terai plains of new pest and crop diseases, all widely observed, are increasing (43% of total cultivated land) and the lower hills and women’s workload, forcing them to spend long hours tilling the mountains of the upper (World Bank land and weeding fields. The decrease in water availability as a 2009, cited in Bartlett et al. 2010). Since 1980, Nepal result of watershed degradation and the impacts of climate change has continuously relied on food imports to meet its has increased the distance to cover to collect water, with women domestic cereal needs. 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 37. Agricultural land owned by farming households among adult women is 45% compared to 76% for men. Only 39% of increased from 1.69 million ha in 1961/62 to 2.65 42 adult women in rural areas are literate, compared to 67% of men. million ha in 2001/2002, of which 92% was arable. The LRMP recorded 2.97 million ha of gross cultivated land in 1978/79 (Appendix 3). The average cereal yield 34. Twenty protected areas comprising 10 national in 2010 was only 60.1% of the average of . parks covering 1.08 million ha, 3 wildlife reserves The agribusiness share of GDP is only 10%, and the of 0.1 million ha, 1 hunting reserve of 0.13 million agricultural trade deficit is $350 million per annum. ha, and 6 conservation areas of 1.54 million ha have been established. This covers 19.4% of 38. The average return per hectare of agricultural the area of the country. Of these, 12 protected land has declined over the years. The profits per areas have buffer zones conserving 0.56 million hectare of land decreased by 10% in 2003/04 ha of forest. A total of 1.23 million ha of forest compared to 1995/96 as a result of the higher cost is managed by 17,685 CFUGs (Appendix 6).41 of production and lower returns, thereby lowering There are 242 designated wetlands in Nepal—163 the interest of farmers in farming.43 in the Terai and 79 in the hills and mountains. Of these, 9 have been classified as Ramsar 39. Farming area under annual crops—mainly sites, covering 34,445 ha. The wetlands are an cereals—decreased by 203,000 ha from 2001/02 important source of water and form the habitat to 2011/12, with consequences for food production. of many species of animals, birds, and reptiles. Chunks of land remained fallow due to the shortage Migratory birds visit the wetlands annually, some of working hands for household or farm labor, as flying from Siberia. Wetlands are being damaged a result of labor migration to the Gulf countries. A by siltation, eutrophication, and invasive species, survey conducted by the World Food Programme in addition to excessive water withdrawal, human (WFP) and the European Union (EU) suggests encroachment, and pollution. that 32% of Nepal’s total households (5.66 million in 2011) have sent one or more migrants, mostly d. Agriculture men, to the Gulf countries or Malaysia.44 The 35. Traditionally, Nepal’s economic growth has been rapid trend of conversion of farmland to urban dependent on its natural resources: land, forests, and industrial use, increased water insecurity with and water. The contribution of the agriculture sector 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.

10 COUNTRY ENVIRONMENT NOTE: Nepal infrastructure, and poor connectivity to markets are 4. Physical Infrastructure and Urban Development also contributing factors for farmers’ low interest 41. Infrastructure development tends to be in agriculture. Meanwhile, only 19.7% women environmentally weak in Nepal. The government’s have land ownership. The Irrigation Policy 2013 capital expenditure was extremely low at 3.3% of mandates 33% of women’s representation at all GDP in 2013. The length of the road network in levels of water users’ associations. Nepal has tripled in the past 10 years, with nearly 11,000 km of strategic networks (and another 40. The increasing use of pesticides, insecticides, 3,000 km planned or under construction) and herbicides, and various growth hormones and 60,000 km of rural networks. The growth of the other agrochemicals has considerably increased road network has helped in the establishment of in commercial agriculture. The annual import of new towns and linking with or the opening up of pesticides in Nepal is about 211 tons, comprising new market centers. However, combined road 29.19% insecticides, 61.38% fungicides, and 7.43% density is around 48 km per 100 km2, and rural road herbicides, with other pesticides making up 2%. density is 14 km per 100 km2—the lowest in South Gross sale value amounts to $3.05 million per year. Asia. Furthermore, road construction has also come The national average pesticide use in 2012 was 142 at an environmental cost. Roads, particularly non- g/ha, which is very low compared to other Asian engineered rural roads in the hills and mountains, countries.45 With the crowding out of fertilizer have accelerated landslides, gully erosion, and loss suppliers due to the subsidy policy on fertilizers, of forest resources and natural habitats. Access by the government supplied 185,000 tons of chemical motorized vehicles following construction of roads fertilizers (e.g. urea, DAP, and potash) and provided has also accelerated deforestation and smuggling of a partial subsidy equivalent to NRs6 billion. timber that takes advantage of the weak monitoring Average fertilizer use was 57 kg/ha in fiscal year capacity of the government. (FY) 2013, up from 47 kg/ha in FY2012.46 However, improper application have caused environmental 42. Investment in hydropower by both public and and health hazards such as respiratory and skin private sectors is growing. However, the plants are disease in farmers, decrease in soil fertility, and being implemented without considering their basin- decline of critically endangered birds and mammals, wide impacts. The government’s ad hoc decision to particularly vultures that scavenge dead livestock or waive Environmental Impact Assessments (EIAs) for insects treated with these chemicals.47 hydropower plants up to 50 MW in capacity and any

Source: D.B. Singh, ADB, 2014 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.

COUNTRY ENVIRONMENT NOTE: Nepal 11 32% by 2027.49 The rapid rural–urban migration Hazards in the Kathmandu Valley: of that decade was a result of the armed conflict between 1996 and 2006, the inflow of remittance Comprising just 0.6% of Nepal’s total area, the Kathmandu money, migration for employment and education, Valley accounted for 9.5% of its total population in 2011, with a and the attraction of better living conditions in population density of 2,800 persons per square kilometer. In 2001, upcoming towns. The absence of stringent policies the Kathmandu Valley had 7.1% of Nepal’s total population, with to regulate and manage this growth has resulted in a population density of 1,830 persons per square kilometer. Its the haphazard development of municipalities and location in a high seismic risk zone, such an increase in population emerging towns, especially within the Kathmandu and density, characterized by haphazardly growing settlements, Valley. Municipal infrastructure has not kept means that Nepal’s capital is one of the most earthquake- pace with the rapid rate of urbanization, resulting vulnerable cities in the world. in insufficient water supply and lack of proper sewerage and SWM systems. Traffic congestion is worsening, especially in the Kathmandu Valley, size of transmission line is widely considered a hasty and public transportation systems are inefficient. decision to address the ongoing energy crisis at the The population grew by an annual rate of 6.6% cost of the environment. Strategic environmental in the Kathmandu Valley during 2001–2011, assessments (SEAs) of hydropower master plans, making it the most affected part of the country. irrigation policies, and other future water resource- Encroachment by sprawling settlements on related policies, plans, and programs are necessary, riverbanks, public lands, and forests is a pressing and should consider downstream water use rights problem in urban areas, and the number of slum and basin-wide cumulative impacts. and squatter settlements are on the rise.50 There are 191 municipalities, 133 declared recently, most 43. Managing Nepal’s rapid urbanization is an of them with more rural than urban characteristics. important challenge. During the period 2001–2011, Environmental degradation of waterways and air the population growth rate in urban areas was pollution are increasing, sanitation facilities are 3.4% per annum, compared with 1.4% per annum grossly insufficient, and climate change impacts for the country as a whole.48 Although the urban are creating additional challenges and increasing population as a proportion of the total population vulnerability to natural hazards in urban areas. The was low in 2011 (17% compared with 14% in 2001), haphazard and unregulated development of urban it is projected to increase to 24% by 2017 and areas has worsened vulnerability, particularly given the high risk of in the country.

5. Industrial Development and Pollution Control 44. 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;

Source: ADB, 2014 , , sugar, and oilseed mills; processed foods

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.

12 COUNTRY ENVIRONMENT NOTE: Nepal such as instant noodles and beverages; cigarettes; and heating along the trekking routes, and has also “Nepal’s and cement, paint, brick and steel and iron- resulted in the dumping of garbage and competition population allied industries (Appendix 17). In the face of lax with local inhabitants for natural resources due to is extremely government monitoring, most industries openly overcrowding in destinations such as the vulnerable, dispose of their waste, polluting the air, water, and Conservation Area, once considered one of not only to the land. Industries annually produce 8.6 million m3 of the top 10 trekking routes in the world. A study immediate wastewater, 9,592 tons of total suspended solids indicates that nearly 10 tons of waste generated threats of (TSS), and 21,900 tons of solid waste. The total by mountaineering expeditions, including oxygen increasingly suspended particulate (TSP) matter discharged by cylinders, are strewn along the route to the summit frequent glacial industries is 76,250 tons, with brick kilns and cement of . Although the introduction of the lake overflow, industries contributing 70% and 27%, respectively.51 concept of eco-tourism has increased awareness landslides, among people to conserve natural resources while flash floods and 6. Tourism attracting tourists, a significant shift in approach is droughts, but 46. Nepal’s natural and socio-cultural heritage is its yet to be discerned. also to longer- major asset for tourism. The country is a hotspot term climate destination for mountaineers, nature lovers, and 7. Climate Change change, which people seeking adventure. Nepal’s Hindu and a. Climate Change Risks in Nepal will ultimately Buddhist heritage also has the potential to attract a 48. Nepal’s diverse topography, fragile ecosystems, reduce water large number of tourists. However, this potential has poverty, lack of capacity to plan effectively for availability not been fully exploited. Growth remained stagnant climate change adaptation, and weak governance and limit crop between 1995 and 2006 owing to the insurgency have made the country extremely vulnerable to the productivity.” and political instability, with an average annual arrival impacts of climate change. With the tropical plains of about 0.4 million tourists; tourist arrivals rose to of the Terai in the south and a Trans-Himalayan Bindu Lohani, about 0.8 million in 2012. The tourism employment cold, arid climate in the north, Nepal is experiencing Vice President, ADB survey of 2014 has indicated that for every 6 tourists tangible signs of the impacts of climate change, visiting the country, 1 job is created, but this is far including shrinking glaciers, a three- to four-week lower than the estimate of the UN World Tourism shift in the monsoon, and higher temperature Organization, according to which each tourist increments during the winter and spring in should generate employment for 12 people. The comparison to summer.53 Nepal is identified as the Economic Survey 2013 finds that Nepal’s tourism 13th most climate-vulnerable country in the world industry generated 178,000 person days of jobs a although it is responsible for only 0.027% of global year, 20% of the beneficiaries being women. The greenhouse gas (GHG) emissions (Appendix major constraints to tourism growth are a lack of 13).54 Analyses of temperature data from 1977 to quality infrastructure and sanitary facilities, a decline 1994 reveal higher warming trends in the Middle in the status and values of natural and cultural Mountain and Himalayan regions compared to heritage, pressure on the environment, limited access the Siwalik and Terai (Appendix 14), and the mean to new tourism areas, and a lack of coordination. temperature has increased at a linear rate of 0.04°C The contribution of hotels and restaurants as a per year (higher than the mean global rate) from percentage of total GDP, at current prices, stagnated 1975 to 2009 (Appendix 14).55 Temperatures at 1.8%–1.9% between 2000/01 and 2012/13.52 There could be warmer in Nepal by 4°C in winter and are 10 five star, 2 four star, and 31 three star hotels 2.5°C to 3°C in summer by the end of the 21st currently in operation in he country. century (Appendix 14). During this period, winter precipitation may increase between 5% to 10% in 47. The arrival of tourists in Nepal introduced eastern Nepal and 15% to 20% across the whole materials such as plastic and cans, transforming country in summer (Appendix 15). the very nature of solid waste in the country. Mountain tourism in particular has caused adverse b. Anticipated Consequences environmental impacts such as forest clearance 49. Erratic weather patterns, unpredictable and and tree felling to meet the demand for cooking intense rainfall, reduced snowfall at high altitudes,

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.

COUNTRY ENVIRONMENT NOTE: Nepal 13 Climate change- recurrent droughts and floods, and a shift in the one of the most environmentally vulnerable countries driven events like temperature regime have adversely affected agriculture in the world. The country is vulnerable to various melting glaciers and the livelihoods of small farmers and poor people. forms of natural disasters including floods, landslides, pose a grave risk to It is widely confirmed that climate change is the main flash floods, , cold waves and heat waves, Nepal’s economy, factor behind the accelerated glacial retreat and the , fire, avalanches, and earthquakes. and could cause formation of highly hazardous glacial lakes observed The biggest recorded disasters are the floods of losses equal to in the Himalaya. The effects of climate change have 1993, 2008, and 2012, the earthquakes of 1934 and almost 2.2% of been causing cloudbursts, triggering massive landslides 1988, the Jajarkot diarrhea outbreak of 2009, and annual GDP by 2050 and floods. Climate scientists predict the continuation the landslides of 1993 as well as the recent and 9.9% by 2100. of more intense monsoons, and severe and frequent of August 2014 that blocked the for But, if mitigation and floods in the future.56 Continued climate change is almost a month. From 1971–2012, disasters such as adaptation steps are predicted to lead to major changes in freshwater flows landslides, floods, earthquakes, thunderstorms, fire, taken the damage with dramatic impacts on biodiversity, people, and their cold waves, epidemics and other accidents caused could be limited to livelihoods. The most striking loss will be the availability the deaths of 31,908 people, injured 58,210, affected around 2.4% of GDP of surface water for domestic use particularly in the 5.94 million people, and destroyed 229,167 houses by 2100. hills and mountains, where people depend on rivulets and damaged 170,097.57 In 2012, disasters affected and springs. The drying out of water sources due to 2,743 families and caused the deaths of 419 persons ADB. 2014. Assessing the impacts of climate change has already led to the (Appendix 16). Nepal is extremely vulnerable to the Cost of Climate out-migration of entire villages in Mustang and Jajarkot earthquake and water-related hazards; it ranks 11th in Change and Adaptation in South Asia. Manila. districts of mid-west Nepal. The government estimates the world in terms of vulnerability to earthquakes and that 1.9 million people in Nepal are highly vulnerable 30th in terms of flood risk.58 to the risks of climate change, and an additional 10 million are increasingly at risk, which is about 37% of 52. The lowlands of the Terai are prone to floods the country’s population. due to riverbank cutting and aggradation of riverbeds that expose settlements and agricultural 50. Glacial melting leads to an increase in water land. Similarly, hilly areas are at risk of landslides due discharge, which is expected to increase the to the disturbance of fragile geological settings by frequency of catastrophic flooding events such as human activities. The High Himalaya is vulnerable glacial lake outburst floods. Nepal is at a high risk to the risks of avalanches and GLOFs, while wind from the impact of glacial lake outburst floods. erosion and desertification are common in the These events could have devastating consequences Trans-Himalayan region. There are 1,466 glacial for downstream settlements and infrastructure. lakes in Nepal, of which 21 are at high risk of possible Nepal’s agriculture sector may indeed reap some outbursts (GLOFs).59 At least 14 GLOF events have short-term benefits from warmer temperatures and been recorded in the past, and many settlements melting snow and ice. But in the long-term, there as well as infrastructural developments are at risk. might be a “tipping point” as glacial runoff begins Nine districts in the Terai have been identified as to decrease and perennial rivers turn into seasonal most vulnerable to flooding, 29 districts in the hills streams, causing freshwater scarcity in the dry and mountains are vulnerable to landslides, and Disasters are a serious months. 22 districts in the Terai, hills, and mountains are impediment to Nepal vulnerable to drought.60 Overall, about 2.2% of the development and 8. Disaster Risk country’s total land area (0.6 million ha) has become have undermined its 51. The fragile and “young” geology of the uncultivable due to flooding or soil erosion, up from development gains Himalaya, unstable slopes, high topographical 1.2% in 2001 (0.3 million ha). The Kathmandu Valley, and its achievements variation, low-lying areas in plains, extreme climatic due to its substandard and non-engineered buildings, in poverty alleviation events, environmental degradation, urbanization, and unplanned and highly dense settlement, is the and the millennium unsustainable infrastructure development, and its most at-risk city in the world to earthquakes (Geo development goals. modest socio-economic conditions have made Nepal 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.

14 COUNTRY ENVIRONMENT NOTE: Nepal 2 GOVERNMENT PRIORITIES FOR SUSTAINABLE DEVELOPMENT

A. Government Priorities and ratified these conventions and responded to major Commitments obligations by formulating appropriate policies, strategies, and action plans. In the context of national 53. The concept of environmental protection and planning, several initiatives aimed at protection of the conservation has gradually evolved through the environment have been undertaken.62 development of periodic national development plans prepared by the National Planning Commission 55. Environmental priorities in the government’s (NPC) since 1962. Till the sixth periodic plan (1980– strategies and plans include: (i) forest conservation 85), the government emphasized components and management through community of the environment such as forest conservation, participation,63 (ii) wildlife and biodiversity watershed management, wildlife conservation, conservation through the establishment of water and sanitation, and urban management. Since protected areas, (iii) reducing vulnerability to the 1985, major environmental mainstreaming initiatives impacts of climate change, (iv) disaster relief and have been undertaken, environment-friendly risk management, (v) environmental sustainability policies introduced, and environment management of development projects,64 (vi) achieving the strategies integrated into sector plans. The support of Millennium Development Goals (MDGs), (vii) international policy instruments and commitments improving air quality and waste management in as well as the donor community’s interventions in urban areas, (viii) use of renewable energy and policy advocacy and capacity development have energy-efficient technology in rural areas,65 (ix) also played an important role in institutionalizing watershed management–ecological restoration environmental safeguards in development in the fragile Siwalik range, (x) improved drinking activities. The outcomes of these efforts are the water and sanitation services, and (xi) adopting a formulation of national environmental policies, climate-resilient agriculture system. acts, and regulations, the adoption of forest and wildlife conservation initiatives, the establishment 56. The National Conservation Strategy for Nepal of national parks and conservation areas to protect 1988 analyzed natural resources and economic sensitive ecosystems, and the formulation of air and activities by sector and aimed at promoting wise water quality standards. use, protection, preservation, and restoration of natural resources for balanced socio-economic 54. Nepal is a signatory to 21 environment-related development.66 Implementation of the strategy international conventions.61 It has endorsed and 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; 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.

COUNTRY ENVIRONMENT NOTE: Nepal 15 system of environmental impact assessments, 38.9% (2015 MDG target 39.6%). Also, protected environmental planning, environmental education, areas have been boosted by the increase in environmental law, biodiversity conservation, and community forestry, which has benefited the institutional strengthening. environment and people’s livelihoods. However, factors like internal migration, uncontrolled 57. Subsequently, the Government of Nepal encroachment on forest area for habitation prepared the National Environment Policy and agriculture, and high dependency on forest and Action Plan (NEPAP) 1993. The national resources for livelihoods threatens to slow policy formulated guidelines and action progress. plans for sustainable management of natural resources (land, forests, and water), population, 61. The Interim Constitution 2007 defines access environmental education, poverty reduction, to water as a fundamental right for citizens. The environmental health, industry, tourism, national average of households using safe drinking urbanization, national heritage, environmental water was 85% in 2012/13 (National Planning legislation, and institutional development. Commission, 2013), which exceeds the 2015 The Environment Protection Act 1996 and MDG target of 73%. Between 2000 and 2011, the Environment Protection Regulation 1997 were national sanitation coverage more than doubled adopted as a follow-up to NEPAP. from 30% to 62%, and surpassed the 2015 MDG target of 53%. Although, a study by Water Aid 58. In mid-2000, the government approved estimates that if functionality is taken into account the Sustainable Development Agenda of Nepal the coverage could be for less. 2003–2017 (SDAN), confirming its commitment to implement Agenda 21 of the Rio Earth Summit.67 SDAN has prioritized forest ecosystems C. Sector Policies, Strategies, and and biodiversity as one of six main areas of Plans related to Environmental concern. However, the National Commission on Sustainability Sustainable Development formed in April 2002 under the Prime Minister’s chairpersonship is 62. Extensive regulatory mechanisms exist in inactive, and there is no agency for implementing Nepal that address most aspects of environmental or monitoring SDAN. planning and management (Appendix 18). However, there has been uneven progress in legislation with advances in some areas such as B. Nepal Millennium management of forest resources, protection of Development Goals fauna and flora, and biodiversity conservation, but stagnation in others such as industrial and 59. Nepal signed the Millennium Declaration hazardous wastes; air, water, and noise pollution; in September 2000, and the MDGs have been and clean energy development. incorporated into the Poverty Reduction Strategy Paper 2003 and the subsequent three interim 63. NEPAP, the Environment Protection Act three-year plans (2007–2016). Considering the 1996 (EPA), and the Environment Protection unstable political context of the last 13 years, Nepal Regulation 1997 (EPR) are the key legal provisions has made significant progress in achieving its to mitigate adverse environmental impacts MDG targets, including MDG No. 7 on sustainable and integrate environmental sustainability in environment management (Appendix 17).68 development activities. These legislations have made Initial Environmental Examinations (IEEs) 60. After a slump in the 1990s and early 2000s, or Environmental Impact Assessment (EIA) has been relatively stable, reaching 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.

16 COUNTRY ENVIRONMENT NOTE: Nepal sector development projects. They ensure that concern. In this context, the poverty–environment environmental and social issues are addressed initiative (PEI) program was implemented by in all development projects. However, weak the government under which climate change government capacity for effective implementation budget codes were developed by the NPC and monitoring of environmental management and the Ministry of Finance to track public plans, inadequate resources, a lack of awareness spending on climate change adaptation and about the importance of environmental mitigation. The NPC has supported the green safeguards and risks of climate change, and economy framework and the Ministry of Science, political instability have been the key challenges in Technology and Environment supported low achieving sustainable development. There is also a carbon/emission development strategy (through need for updating the NEPAP, EPA, and EPR in the the Alternative Energy Promotion Centre) to back context of emerging environmental and climate the government in planning for a development change-associated issues. The government pathway towards a green economy. has also formulated many sector policies and plans related to environmental safeguards since the formulation of the NEPAP, EPA, and EPR D. Institutional Development (Appendix19). A strategic framework is being prepared to screen the government’s annual 65. In the past three decades, government and projects and programs for their impacts on natural several non-government and private sector resources and biodiversity. institutions have played an important role in designing and streamlining environmental 64. The government has given due priority to activities in Nepal. The NPC established an addressing the impacts of climate change by environment division in 1987, which was the formulating policy and establishing institutional first environment-related body responsible mechanisms. The National Adaptation Plan of for overseeing and coordinating inter-sector Action 2010 (NAPA) identifies priority activities environment-related activities. The Environment for adaptation to climate change in agriculture and Protection Council (EPC) was established in 1992 food security, water resources and energy, climate- under the chairpersonship of the Prime Minister induced disasters, forest and biodiversity, public to oversee environmental compliance through health, urban environment, and infrastructure.69 national policies. The EPC approved NEPAP in NAPA provides guidelines for better adaptation 1993, but it is currently inactive. to the adverse impacts of global warming, extreme weather conditions, and climate- 66. The Ministry of Population and Environment induced disasters. It promotes the mainstreaming was established in 1995 with responsibility for of climate change issues into development environmental conservation, pollution prevention plans and programs, and considers gender as and control, conservation of national heritage, a cross-cutting issue. Nepal also prepared a and preparation of national legislation on national framework for Local Adaptation Plans environmental protection. It was dissolved in of Action (LAPAs) in 2011 with the objective of March 2005 and combined with the Ministry incorporating climate change adaptation actions of Science and Technology as the Ministry of into local development planning. LAPAs identify Environment, Science and Technology. A stand- local-level adaptation needs to focus on reducing alone Ministry of Environment was formed in 2009, climate risks and vulnerabilities and increasing and was again reshaped as the Ministry of Science, resilience.70 Given the growing impacts of climate Technology and Environment (MOSTE) in May change on the poorest and most vulnerable, 2012. With such frequent changes in institutional and the unprecedented strain on ecosystems, arrangements, the Ministry has faced difficulties the need to integrate environment–poverty in proper institutionalization and performance of linkages into national development policy and the vital responsibility of monitoring and enforcing planning processes has become an overriding safeguards and compliance activities.

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.

COUNTRY ENVIRONMENT NOTE: Nepal 17 67. Most of the concerned government ministries Ministry of Science, Technology and Environment and departments have some form of formal or ad hoc environment division, section or unit to look The Ministry of Science, Technology and Environment (MOSTE) is after sector-related safeguarding issues. Authority responsible for formulating, coordinating, implementing, monitor- to approve IEEs lies with the concerned ministries, ing, and evaluating policies, strategies and plans/programs on the whereas MOSTE has the authority to approve environment, sustainable development, climate change, science and EIAs. technology, information and communication technology (ICT), en- vironment protection, alternative energy, and national and local ad- 68. The Ministry of Forest and Soil Conservation aptation. MOSTE is also responsible for implementing environmen- (MOFSC) is responsible for protection and tal laws, information technology laws, laws on nuclear technology management of forest and soil conservation- and biotechnology, by-laws, and standards, as well as the regular and related programs, including wildlife and periodic evaluation and review of environment-related programs im- biodiversity conservation. The Ministry of Home plemented by government organizations. The Ministry is comprised Affairs is the focal ministry for managing disaster of the Department of Hydrology and Meteorology, the Department risk. The Ministry of Agricultural Development of Environment, the Department of Information Technology, the is responsible for minimizing environmental Alternative Energy Promotion Centre, and the national Information risks due to the use of agricultural chemicals, Technology Centre. MOSTE is also engaged in industrial and urban conserving biodiversity, and mitigating the impacts pollution control, climate change activities, and approval of EIAs. of climate change. The Nepal Army protects the national parks. Chief wardens in the national MOSTE is the focal point for climate change activities including parks are appointed by MOFSC, and have the the UN Framework Convention on Climate Change and the Kyo- power to take legal action against poachers or to Protocol, and has initiated a number of climate change-related encroachers. Besides government agencies, activities, namely NAPA, the project Strengthening Capacity for there are more than 1300 non-governmental Managing Climate Change and the Environment, the Pilot Program organizations (NGOs), civil society organizations, for Climate Resilience, and the Strategic Program for Climate Re- research institutions, academic institutions, labs, silience (SPCR). MOSTE also functions as the secretariat of the and media organizations that work and advocate Climate Change Council, the Environment Protection Council, and for environmental conservation (Appendix 20). the Information Technology Council constituted under the chair- The Department of Hydrology and Meteorology, personship of the Prime Minister. MOSTE, monitors and publishes national hydro- meteorological data, and the National Trust for MOSTE’s Department of Environment looks after the monitoring Nature Conservation supports the government and enforcement of environmental regulations. The Department in the management of conservation areas. works with relevant line agencies and stakeholders, and has 54 Agencies such as WWF Nepal and IUCN Nepal staff in seven sections, though staffing in technical sections is in- also support in environment and biodiversity sufficient. The five sections of the department on climate change, conservation. The Ministry of Urban Development environmental standards, environmental assessment, sustainable is responsible for a planned and sustainable development and adaptation, and clean development mechanism management of urban environment. Vehicular have altogether 16 technical staff. emissions are monitored by the Department of Transport, and pollution by industries is monitored MOSTE has virtually no vertical links with regional and district-level and controlled by the Department of Industry. The governments, which restricts the implementation of environmental Ministry of Energy, the Department of Electricity policies and strategic plans at all levels of governance. In practice, the Development, and the Nepal Electricity Authority responsibility for environmental management and capacity at local (NEA) are responsible for energy generation levels is close to non—existent. Interagency coordination in environ- and distribution. Scores of environment at ment management is weak. There is a lack of a national environmental assessment and management guidelines for the monitoring network. Moreover, in the absence of adequate human re- energy sector have been prepared. NEA has sources, technical capacity, and funds, MOSTE is unable to carry out a specialized environment division to ensure effective and efficient environmental monitoring and management. safeguards in the projects implemented by the government or private sector. The Ministry of

18 COUNTRY ENVIRONMENT NOTE: Nepal Table 2. General Trend of Climate Budget Allocation in Nepal over Three Years (NRs in million) Fiscal Year Headings 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 11 Source: Government of Nepal, National Planning Commission. 2013. Climate Change Budget Code – Application Review. Kathmandu.

Agricultural Development mainstreams activities change. These include: the Mountain related to environmental and climate change in Initiative Concept 2010; the formation of the agriculture development through the food security multi-stakeholder climate change initiatives and environment division, supported by the coordination committee in April 2010; the environment and climate change section. Climate Summit on “Living Himalayas” in November 2011; the international conference 69. The Local Self-Governance Act, 1999, has of mountain countries on climate change and made local bodies responsible for the protection the Kathmandu call to action in April 2012. of the environment in district-level plans and The government regularly participates in the programs. The government has established district UNFCCC-organized annual conference of parties environment, energy, and climate change sections (COP) on climate change, which demonstrates in all the 75 District Development Committees, the importance given by the government to although they have been generally unable to climate change mitigation and adaptation contribute in ensuring environmental safeguards strategies through national, regional, and in local development activities. Guidelines have international collective actions. been prepared and trainings conducted in the past to strengthen the local government’s capacity 72. Control of desertification, river environment in proper environmental governance. However, management, and groundwater extraction are the sections have remained mostly inactive or not mentioned as the primary responsibility ineffective due to a lack of resources. of any government agencies. Following the Desertification Convention in 1994, 70. In 2007, the government constituted a climate preliminary discussions were held to identify change network under the chairpersonship of the desertification process in Nepal, but the the Secretary, MOSTE, for achieving stakeholder government still has to develop a clear policy and coordination. The Climate Change Council was focal institutions to combat the desertification constituted on 23 July 2009 under the Prime that is taking place in many parts of the country. Minister’s chairpersonship to provide guidance on The Ministry of Irrigation and its Department for the formulation and implementation of climate Water Induced Disaster Prevention looks after change-related policies, plans, and programs, river training to control flood-related disasters. and take the lead in climate change-related international negotiations. Nepal is currently the 73. Nepal has an adequate institutional setup chair of the least developed countries’ climate and legal provisions to enforce environmental change coordination group of the United Nations safeguards. Awareness about the importance of Framework Convention on Climate Change environmental conservation and climate change (UNFCCC). adaptation measures is increasing. However, the outcomes are still not effective due to the 71. The government has also taken several institutional, financial, and knowledge-based initiatives to promote adaptation to climate weaknesses discussed above. MOSTE’s newly

COUNTRY ENVIRONMENT NOTE: Nepal 19 Source: ADB, 2014

established Department of Environment does 75. Among the relevant ministries, the Ministry of not have regional or district-level offices, and has Urban Development receives the highest share, virtually no vertical link with regional and district- that is 21.5% of the total climate budget, followed level government agencies. 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 E. Financing for Environmental 60% of the climate change-related programs in FY Activities 2013/14 have been ranked as highly relevant, with about 40% ranked as relevant programs by NPC. 74. Climate change and environment-related MOFSC has allocated 46% of its total budget to expenditures have steadily increased in recent climate change related activities.. years, with about $84 million in 2006/07 (1.15% of the total GDP) rising to $146 million in 2010/11.71 76. Several international NGOs and donors are The total climate change budget allocated for implementing environment protection and climate FY 2013/14 was $54 million, which is 10.3% of change-related activities through national NGOs; the total budget and 3.1% of GDP. This covers their budget does not show up in the total public sector initiatives for climate governance, capacity sector budget. Private sector investment has a development, and integrating climate change risks built-in environment management/climate change in projects and programs.72 Most of the climate budget: for example hydropower development budget is in the area of economic affairs (71%), projects generally set aside 3% to 5% of their followed by housing and community services total budget for implementing an environment (26%). Only about 6% of the budget is allocated management plan.The major weakness of for direct environmental protection. About 11.4 % environmental/climate change financing in of the total climate change budget is allocated to Nepal is the absence of mechanisms to monitor local programs.73 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.

20 COUNTRY ENVIRONMENT NOTE: Nepal 3 SUPPORT BY DEVELOPMENT PARTNERS IN ENVIRONMENTAL SAFEGUARDS

A. ADB’s Support to Nepal for gender equality and social inclusion in development, Sustainable Development and is putting more efforts into building institutional capacity at all levels. ADB has also supported the 77. ADB, as of 31 December 2013, has provided government’s efforts to formulate relevant policies, Nepal with 128 sovereign Asian Development build institutional capacity, learn from international Fund (ADF) loans (amounting to $3.11 billion), best practices, and mainstream environmental 5 non-sovereign loans ($49.55 million), and safeguards in its investments. It has supported 34 ADF grants ($823.75 million), totaling institutional strengthening and capacity building of $3.98 billion. ADB has also provided technical sector agencies to understand, analyze, and integrate assistance totaling $180.3 million. ADB’s current the risks of climate change while preparing plans, commitment of development assistance to policies, and programs. Given Nepal’s vulnerability Nepal makes up about 23% of all foreign aid to climate change and natural disasters, all new commitments to the country. Of the projects projects and programs are screened for related risks approved between 2010 and 2012, 47% supported (Appendix 21). environmental sustainability. 79. ADB is supporting Nepal based on the 78. ADB’s sustainable development support to strategies delineated by the new Country Nepal is evident from the achievements made in the Partnership Strategy 2013–2017, which focuses past in various sectors. Between 2008–2012, 91,000 mainly on three core sectors—energy, transport, children and 122,000 teachers have benefited and urban infrastructure. ADB will also support from ADB support in the education sector (from skills training, and selective investments in water 2004). ADB-assisted hydropower stations account management to expand irrigation, mitigate the for 30% of the country’s generation capacity, and risks of water-induced disasters, and improve about 120,000 households have been directly watersheds. Sector investments will still be connected to electricity, with greenhouse gas (GHG) complemented by the key themes, which include emissions reduced by 2,445 tons of carbon dioxide environmental sustainability, climate change, and equivalent per year. ADB assistance has helped to disaster risk management. build or improve 1,362 km of national highways and rural roads, benefiting 6.8 million people through 80. ADB assistance mainstreams environmental urban and rural connectivity. More than 300,000 safeguards in its investments, and focuses households have a supply of improved drinking on watershed management, integrated water water as a result of ADB assistance. Productivity resources management, pre- and post- and farmer income has increased from the 140,000 disaster management and climate change risk ha of land improved through irrigation facilities and management. ADB’s support is also focused on flood management. ADB has consistently promoted sustainable and energy efficient transportation, renewable and alternative energy generation,

COUNTRY ENVIRONMENT NOTE: Nepal 21 Figure 7. Sector-wise Distribution of ADB Portfolio in Nepal as of 31 Dec 2013 83. The United Kingdom’s Department for International Development (DFID) supports Multisector 1% the strengthening of governance, health and Urban Sector education, gender empowerment, climate 16% Agriculture and change adaptation, disaster risk management, Natural Resources forestry and biodiversity protection, and drinking Transport & ICT 26% water supply and sanitation (Appendix 24). 16% The Japan International Cooperation Agency (JICA) supports disaster prevention, watershed management, alternative and renewable energy, sustainable transportation, agriculture Education development, solid waste management, Public Sector 10% and related socio-economic development Management activities. The Swiss Agency for Development of 5% Trade and Cooperation (SDC) supports community forestry, Industry Finance Energy rural infrastructure, community irrigation and 3% 6% 17% flood protection, and good governance activities. The Danish International Development Agency (DANIDA) supports the government in alternative improving water supply, optimizing water use, energy, community forestry, and environmental sanitation and solid waste management improving conservation. The German Federal Enterprise river environment, and providing knowledge for International Cooperation (GIZ) supports support to the government. energy efficiency, rural infrastructure, and urban environment conservation. The United States Agency for International Development (USAID) B. Support by Other supports sustainable forestry management, Development Partners agriculture, health, governance, education, and social development sectors. 81. The United Nations Development Programme (UNDP) is supporting Nepal in renewable energy, 84. The Government of Nepal, in collaboration wetland biodiversity conservation, Terai landscape with ADB, the International Federation of Red management focusing on protected areas, Cross and Red Crescent Societies (IFRC), the urban environment improvement, disaster risk Office for the Coordination of Humanitarian management, and climate change adaptation and Affairs (OCHA), UNDP, the United Nations mitigation measures (Appendix 22). International Strategy for Disaster Reduction (UNISDR), the World Bank and others, has 82. The World Bank is assisting in integrating formed the Nepal Risk Reduction Consortium environmental safeguards in socio-economic (NRRC) to prioritize and implement key development initiatives, including sustainable elements of the National Strategy for Disaster environmental management and conservation Risk Management. Donor coordination groups of natural resources, as well as in supporting the have also been formed to coordinate activities government in implementing two components in climate change, food security, and good of the SPCR. Support is provided specifically for governance. IUCN Nepal and WWF Nepal are the poverty alleviation, integrated water resources leading agencies in supporting the government management, agriculture and food security, in the conservation of natural resources and clean energy, irrigation and water resources biodiversity. ICIMOD supports economically and management, rural roads development, and in environmentally sound mountain development climate change and disaster risk management and works towards improving the living standards (Appendix 23). of the mountain communities.

22 COUNTRY ENVIRONMENT NOTE: Nepal 4 ACHIEVEMENTS, KEY ISSUES, AND CHALLENGES

85. Nepal has the potential to achieve higher development. National and local-level disaster and more inclusive growth. Although one of the management plans, early warning systems, and smaller countries in South Asia, Nepal is endowed a disaster preparedness framework have been with rich natural resources and is home to prepared for pre- and post-disaster response. The immense diversity in terms of geology, biodiversity, government has also prepared air, water, and noise ethnicity, religion, and language. Its key sectors quality standards (Appendix 25), and is readying of comparative advantage include hydropower, a digitized national water-induced hazard maps. tourism, and commercial agriculture. Nepal can The enforcement of safeguards is improving with also benefit significantly from regional economic the relative political stability and improved law and cooperation and integration with large and fast- order situation achieved following the formation growing neighboring economies.74 of the constituent assembly and the elected government.

A. Achievements 87. There have been notable achievements in environmental management and progress in 86. Nepal has formulated environmental policies, climate change adaptation and disaster risk acts, and regulations, including climate change management in Nepal. The establishment of policies; a national strategy for disaster risk a high-level Environment Council and Climate management, a draft disaster management act, Change Council; the climate change division and NAPA/LAPA preparations; and has also and Department of Environment in MOSTE; developed sector environment policies, which environment sections in the District Development provides sufficient guidance for overall safeguards, Committees; and institutional responsibilities and climate change and disaster risk management for the protection of national parks (guarded mainstreaming in development activities along by the Nepal Army), conservation areas (by with their monitoring and enforcement. The dedicated management committees), and government policy of gradually expanding forest by communities are key institutional protected areas and community forests has achievements for ensuring environmental largely assisted in maintaining forest coverage safeguards. Government ministries are involved and biodiversity. The quality of environmental in environmental management and climate assessment has improved over time. Public change programs, and most of these agencies awareness about environment conservation have permanent or temporary environment is growing. The environment, climate change, and climate change units or sections. Focal and disaster risks are being incorporated in government ministries coordinate to tackle school and university curricula. Climate change water-induced disasters, forest protection and soil policies and plans are steering the government’s conservation, and disaster management activities. efforts to achieve climate and disaster-resilient The multi-sector climate change initiatives

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

COUNTRY ENVIRONMENT NOTE: Nepal 23 Source: D.B. Singh, ADB, 2014

coordination committee (MCCICC) and NRRC encouraging overexploitation and illegal trade are mechanisms employed by the government of natural resources in the absence of proper and development partners to address climate monitoring and enforcement. Legislation is not change and disaster management activities. effectively enforced and offenders are seldom Community vulnerability indexes to disaster have penalized. Confusion still persists regarding how been prepared, and local disaster risk reduction governance will be organized once a federal committees have been established. political system is in place. Weak governance has paved the way for deforestation, loss of biodiversity, and environmental degradation. B. Key Issues and Challenges The Siwalik region and mid hills are facing illegal excavation in riverbeds, overharvesting of MAPs 88. Nepal continues to face major regional, rural- and NTFPs, deforestation and land degradation. urban, and social disparities. Poverty is still high Urban areas are experiencing excessive in rural areas and among socially disadvantaged groundwater extraction and environmental groups, causing rural-urban migration for jobs. degradation (air and water pollution, solid wastes), Gender inequality is high, with the country ranking conversion of fertile arable land into built-up 102nd out of 148 countries in the gender inequality areas, and infrastructure development that is index in 2012.75 The key issue associated unconcerned with environmental protection with achieving environmentally sustainable and risks of climate change. The challenge is also development has been Nepal’s poverty and to implement safeguards in the development its prolonged political crisis. The fluid political of future urban areas, as urban growth in Nepal environment has resulted in weak governance, is still low but is expected to rise rapidly in the

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

24 COUNTRY ENVIRONMENT NOTE: Nepal Source: D.B. Singh, ADB, 2011

future. Sector policies formulated over the years 90. The fragile and young is are disjointed, and lack environmental sensitivity. also one of the key challenges to constructing They remain largely ineffective in balancing the environmentally sustainable infrastructure. The environment with development. Even the current non-engineered and heavy equipment-based set of environmental policies, acts, and regulations construction of rural infrastructure, particularly date back to about a decade and a half and require rural roads, has led to the loss of forests, watershed thorough updating to make them harmonized with degradation, and drying of water sources, and the new legal provisions, and to integrate newly is one of the main causes of massive landslides. emerging issues like climate change and disaster Extensive deforestation and uncontrolled risk management. extraction of riverbed materials from the Siwalik and Mahabharat hills are degrading and damaging 89. The hardships in rural areas, added to the ecological balance, risking human lives and the effects of remittances, have led to steady property in the area as well as downstream. The rural-urban migration and, increasing human situation is further aggravated by the effects of pressure on land, water, and vegetation in cities climate change, which have a huge impact on and emerging towns. The increasing number of livelihoods and local economies. people without access to basic urban facilities like clean water supply, wastewater and solid 91. The lack of basin-wide integrated water waste management, and an energy-efficient resource planning and unplanned damming of transportation system is causing irreversible rivers for power generation and irrigation has damages to the health and urban environment. serious environmental implications, including Unplanned cities with high population density in the loss of aquatic biodiversity and causing earthquake-prone zones have multiplied exposure water use conflicts. Strategic environmental and vulnerability to seismic risks. assessments of national policies and programs are

COUNTRY ENVIRONMENT NOTE: Nepal 25 Source: D.B. Singh, ADB, 2011

not a mandatory requirement and generally not 92. Effective environmental sustainability would conducted, and the cumulative environmental be enhanced if proposed investment programs impacts of such development plans and policies and policies were assessed by taking into account are largely not considered. These gaps have led an appropriate ecosystem scale—outside the to uninformed planning, causing irreversible loss region (such as those associated with GHG of biodiversity and affecting other downstream emissions), transboundary environmental impacts water uses. Weak coordination among disaster within the region (such as those associated with management-related agencies, low levels of biological corridors), and within the country (with preparedness, rudimentary early warning systems, watershed management). Many of the mountain and a lack of preparedness for disaster prevention, ecosystems and their services are transboundary relief, and rehabilitation programs have increased in nature; their conservation and management vulnerability and the risk to thousands of lives, and demands regional cooperation. threaten billions of rupees worth of property.

26 COUNTRY ENVIRONMENT NOTE: Nepal 5

RECOMMENDATIONS

A. Environmental Policy and the SEA tool has become more pertinent than Governance ever. Hence, an updated national environment policy would also make SEA mandatory for all 93. Update the national environment policy, national policies, plans, and programs before act and regulation. The strengthening of country their implementation. Priority should be given to safeguard systems is an important agenda of the conducting SEA of master plans in the hydropower, government, development partners including ADB irrigation, and forestry development sectors, and and World Bank as well as the MDGs. Policies and strategic plans for urban infrastructure, roads, and laws are the key tools to steer development activities rural infrastructure development. towards environmentally sustainable development and green growth. In this regard, NEPAP, EPA and EPR 95. Institutional strengthening. Updating national require an urgent and thorough overhaul to effectively and sector environmental policies and regulations address the environmental safeguards agenda in the is important. However, effective implementation context of changed legal provisions and emerging of policies and regulations can be achieved only challenges such as climate change and disaster risk. when government institutions possess clear An update in the national policy and regulations for responsibilities, capacity, and sufficient resources. the environment would integrate the lessons learned Enforcement of legal provisions has been the key and international best practices, clearly define the barrier to effective environmental governance and compliance monitoring procedure and reporting a transition towards sustainable development. framework, and advise on an effective mechanism Hence, the institutional strengthening of MOSTE, for interagency coordination and collaboration. in particular the newly established Department of Sector environment policy and procedures would Environment; and strengthening of the safeguard then be prepared or updated following the national sections of the major infrastructure agencies, environment policy and regulation. The environment particularly in the energy, urban services, and protection council, and climate change council are transportation sectors has become urgent. Similarly important national safeguards supervisory and policy strengthening capacity of local bodies (DDCs, coordination bodies, which requires re-activation. VDCs) will ensure sustainable development Government also requires to prepare a national initiatives at local level. An institutional mechanism pollution control strategy and action plan. is also required for effective interagency coordination for better sharing of information and 94. Environmental mainstreaming in national harmonizing of safeguarding activities. policies and programs. Strategic environmental assessment (SEA) of national policies and programs are not mandatory as per the current B. Environmentally Sustainable legal provisions. In the context of current Infrastructure Development government policy to focus on implementing larger infrastructural developments in energy, 96. Promoting environment-friendly rural transportation, and urban services, the use of infrastructure. Infrastructure development,

COUNTRY ENVIRONMENT NOTE: Nepal 27 particularly roads, irrigation, and hydropower plants the health and safety of those living in the towns in the fragile geology of the hills and mountains, faces and cities of Nepal. Unmanaged urban sprawl multiple environmental challenges. Infrastructure should be contained by the government by implemented without proper environmental regulating growth. Urban development should protection measures has caused environmental be based on integrated town development and degradation and loss of forest, and has accelerated land use plans. Government capacity should landslides, soil erosion, flooding, and other hazards. be strengthened for stricter monitoring and Such roads have remained nonoperational after enforcement under the “polluters pay” principle. the first monsoon, and are the main reason for The government should focus on developing frequent vehicular accidents. The damage is clearly healthy cities with proper water supply and evident in the case of rural roads, particularly non- sanitation services, a sustainable urban transport engineered roads built using mechanized methods system, solid waste management, environmental instead of following labor-based methods. Water protection of river and water bodies, regeneration seepage from poorly designed irrigation canals also of heritage sites, informal sector management, causes slides and erosion. The scale of damage is restrictions on over-extraction of groundwater, lower in infrastructure supported by development protection of open areas, and use of energy- partners where technically more sustainable efficient technologies. construction methods are adopted, achieving a balance between environmental protection and infrastructure development. Existing rural road C. Natural Resources and design standards and associated working procedures Biodiversity Conservation should be updated based on a diagnostic study of the environmental and economic costs of 98. Combating watershed degradation. The adopting labor-based versus equipment-supported sustainable development agenda calls for steps technologies. Standards should include tree to minimize losses from soil erosion, landslides, plantation and bio-engineering as an integral part of flood, and desertification; the relevant MDG calls the design of rural infrastructure. Bio-engineering, for the protection of forests to reverse the loss of as an effective and successful method of stabilizing environmental resources and land degradation. hill slopes through natural and vegetative methods, The strategies of ADB and other development is a technology that should be promoted and partners call for the promotion of natural resource institutionally adopted in all the infrastructure management to protect and maintain the productive development agencies, particularly in strategic and potential of land, forest, and water resources. rural road departments. The government’s ad hoc Ecosystem degradation in the hills due to large- decision to waive EIA requirements for hydropower scale deforestation and uncontrolled extraction of plants below 50 MW and for transmission lines of all riverbed material has caused massive and irreversible capacities to address the ongoing energy crisis at the environmental damages in fragile landscapes. This cost of the environment should be critically reviewed has had direct impacts such as the loss of forests during the updating of the NEPAP, EPA and EPR. It and biodiversity, the drying out of water sources, may be more rational to simplify and minimize the and soil erosion in the hills; it has also caused floods time required for EIA approval instead of waiving and loss of agriculture land in Terai. The process of the requirements entirely. The updated policy degradation has also endangered the investments should also discourage the routing of transmission made by the government and development partners lines and roads through forest areas. Rather, a clear in agriculture and infrastructure development. In policy should be adopted by the government for this regard, the recent decision of the government compensating for the loss of land and property. to declare the lower hills (the entire Siwalik range) a watershed conservation area is a significant 97. Regulating urban growth. Unplanned, step towards controlling degradation, protecting unregulated, and rapid urban growth, without the biodiversity and habitats, and supporting urban services to support it, has seriously affected sustainable environmental services. A recent study76 the air, land, and water quality and subsequently 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.

28 COUNTRY ENVIRONMENT NOTE: Nepal government; promotion of mobilizing community in up and polluted the urban rivers. For example, monitoring (such as river wardens); environmentally Kathmandu’s , which is considered safe and controlled material extraction; and the highly important to Hindus and revered as the introduction of resource pricing and permits for spiritual source of the Bagmati Civilization, extraction by District Development Committees. has become polluted and biologically dead for decades. The Bagmati and other urban rivers 99. Sustainable use of natural resources. The require cleaning up, augmentation of flow, and government’s conservation program should protection of their overall environment. ADB be commensurate with the sustainable use of is supporting the government in improving the natural resources, including in traditional use environment of the Bagmati River through the by indigenous communities. Forests should be construction of an integrated sewerage system, strictly protected through the control of illegal wastewater treatment plants, beautification of the deforestation and poaching; and exploitation of river corridor, and augmenting water in the river natural resources and medicinal herbs such as during the dry season. Similar interventions are Yarsagumba (Cordyceps sinensis) and Chiraito required for the environmental protection of all (Swertia chirayita), which needs to be regulated the major tributaries of the Bagmati River in the with strict monitoring. The government should Kathmandu Valley, and the polluted rivers in other give priority to protecting pollinators, forages, and cities. The government should adopt integrated other forest trees, while promoting agro-forestry. water resource management by establishing This will promote agricultural production and dedicated river basin organizations to ensure maintain ecological services (Agro-biodiversity basin-wide water use management and protection Policy, 2007, revised 2014, GON). of their environmental integrity.

100. Biodiversity Conservation. The construction of large-scale projects causing loss of forest area, D. Climate Change human encroachment, and destruction of water bodies threatens Nepal’s extremely rich natural 102. Adaptation to the Risks of Climate Change. resources. Air and water pollution, loss of forests, Nepal urgently needs to mainstream climate and the damming of rivers have serious impacts change risks in its development plans and programs on terrestrial and aquatic biodiversity, with many to adopt sufficient adaptation and mitigation species becoming vulnerable, and some already measures in order to make development activities extinct. Protection of aquatic biodiversity should climate resilient. Local communities needs to be be prioritized by proper development of legislation closely involved in promoting their indigenous and protection of habitat area through strategic knowledge while also receiving information planning of dam locations and proper mitigation regarding improved methods of adaptation that will measures to protect the movement corridors and reduce their vulnerability. MOSTE needs technical spawning grounds of threatened species. The support to systematically implement NAPA/LAPAs. capacity and resources of relevant government The Department of Hydrology and Meteorology agencies should be strengthened so they can requires to be capable of instantly processing real- undertake proper management of national parks time series data for the precise climatic projection and conservation areas and deal with poaching at sub basin levels. This information will be useful and illegal trade of wildlife. Development partners for infrastructure design, farming, and disaster have been supporting the government in forest prevention planning. ADB and the World Bank protection and biodiversity conservation activities. are supporting the government under the SPCR The government needs support to continue program in strengthening their capacity to address research on the impacts of natural and human climate change risks, and protect watersheds and activities on natural resources and to come up water basins from the impacts of climate change. with measures to mitigate them. Investments in climate change should be better harmonized between the government and its 101. River Conservation. The direct discharge development partners to create an environment of of sewage and solid waste and the diversion of complementarity and the generation of synergy for water from rivers for various purposes have dried a consolidated result.

COUNTRY ENVIRONMENT NOTE: Nepal 29 103. Reducing Black Carbon emissions. A Participatory approaches in disaster prevention, comprehensive national plan of action, taking preparedness, and rehabilitation, and a mechanism into account the emissions from different sectors, for effective cooperation and coordination among should be developed to control Black Carbon. stakeholders, are essential for effective responses Various practices could be adopted such as in disaster situations. Community involvement in providing clean cooking and heating energy; planning and implementing a risk management enforcement of the law for the application of plan at a local level should be given priority. Early particle filters in diesel engines; substituting the flood warning systems should be established in use of biomass with the use of improved cooking vulnerable areas. stoves; promoting the use of biogas; and restricting the open-field burning of agricultural waste and forest refuse. F. Knowledge Management

104. Scaling up of renewable energy. The use 106. Central database and knowledge of renewable energy should be promoted to management. A lack of information and baseline minimize GHG emissions. Renewable energy is data is a major hurdle to proper and informed important as an alternative measure to address the planning. In this regard, the government requires current energy crisis in the country. Consumption support in establishing an environmental of fossil fuel should be minimized, and use of database management system as a central pool clean and alternative energy like hydropower, solar of environment and climate change information, energy, and wind energy should be promoted in set up in MOSTE. ADB is supporting MOSTE both rural and urban areas. Use of electric vehicles in establishing such a central climate change and mass transportation systems should be database management system under the SPCR promoted to reduce vehicular emissions. ADB and component. This database may also set up an Nepal’s development partners are supporting the e-library for stakeholders to have quick and easy promotion of renewable and alternative energy. access to information.

107. All three components of safeguards: E. Disaster Risk Management environment, climate change, and disaster risk management, may form a part of school and college 105. Disaster risk management. The government curricula to make future generations aware of the has drafted the disaster risk management act, importance of environmental conservation and which is awaiting endorsement by the Parliament. adaptation to the risks of climate change. Similarly, But it can only prepare a disaster management the curriculum of the government’s Staff College, plan if it has complete information on the which regularly trains all levels of government vulnerable areas. In this regard, ADB is supporting staff—planners, policy makers and implementers— the government in preparing digitized hazard maps may include modules on environmental safeguards of major river basins. Similar supports are also and climate change to raise awareness of the need being provided by other development partners to mainstream these issues into their plans and such as the World Bank, UNDP and DFID. programs.

30 COUNTRY ENVIRONMENT NOTE: Nepal APPENDIX 1

Physiographic Regions in Nepal

Table A.1.1: Physiographic Regions in Nepal Mean Tem- Physiographic region Altitude (m) Area (km2) Topographical feature Climate perature °C Terai 60–500 21,104 (14.3%) Flat land with slope gradients Hot monsoon and from 0.2% to 1% mostly tropical Siwalik 200–1,000 18,858 (12.8%) Consisting of Dun valleys, Hot monsoon <20 about 25%; gradient < 300 m and mostly sub- and rarely > 1000 m (75%) tropical Middle Mountains 1,000–2,000 44,436 (30.1%) Tropical valleys and elevated Sub-tropical to warm plains, about 6%; relief up to 1000 temperate monsoon 15–20 2,000–3,000 m is common, maximum up to Cool temperate 2000 m (94%) monsoon High Mountains 3,000–4,000 29,594 (20.1%) Sub-tropical–temperate valleys, Sub-alpine 10–15 4,000–5,000 about 10%; average relief 2000 m Alpine High Himalaya Above 4,000 33,492 (22.7%) Dry Trans-Himalayan area Tundra type and < 10 arctic 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 Administrative classification Ecological zones Total Terai 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.

COUNTRY ENVIRONMENT NOTE: Nepal 31 APPENDIX 3

Land Use in Nepal

Table A.3.1: Land Use in Nepal Physiographic Regions (‘000 ha) Land use Total High 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 1986 2001 Types of Land Use 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.

32 COUNTRY ENVIRONMENT NOTE: Nepal APPENDIX 4

Forest Area in Nepal

Table A.4.1: Changes in Population and Forest Area in Nepal 1965 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 2013 1965–1978 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; and 80% 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 , http://en.wikipedia.org/wiki/Geography_of_Nepal 2 Forest area (% of land area) in Nepal, http://www.tradingeconomics.com/nepal/forest-area-percent-of-land-area-wb-data.html

COUNTRY ENVIRONMENT NOTE: Nepal 33 APPENDIX 5

Changes in Population and Agriculture Area in Nepal Table A.5.1: Changes in Population and Agriculture Area in Nepal Area 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- 1,685 1,654 2,464 2,597 2,654 2,526 ings (‘000 ha)a 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.

34 COUNTRY ENVIRONMENT NOTE: Nepal APPENDIX 6

Protected Areas of Nepal

Table A.6.1: Protected Areas of Nepal Physiographic Buffer Zone Year of IUCN SN Protected areas Area (km2) Region (km2) establishment Categorya 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 National Park HM–HH 1,710 420 1976 II 6 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 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.

COUNTRY ENVIRONMENT NOTE: Nepal 35 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, Kutki (Picrorhiza scrophulariiflora), Okhar bark (Juglans regia), and Panch Oule transportation, and export (Dactylorhiza hatagirea) Banned for export outside the country without Jatamansi (Nardstachys grandiflora), Jhyau (Lichean spp.), Loth salla (Taxus spp.), processing Sarpagandha (Rauwolfia serpentine), Shilajeet (Rock exudat), Sugandhawala (Valeriana wallichii), Talispatra (Abies spectabilis), and Yarsagumba (Cordyceps sinensis) Banned for felling, transportation, or export for Chanp (Michelia champaka m. kisopa), Bijayasal (Pterocarpus marsupium), Khayar (Acacia business purpose (tree species) 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

Strategic Road Network Length (km) Population affected Road Density Year 2 Blacktopped Gravelled Earthen Total per km of road (km/100 km ) 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

36 COUNTRY ENVIRONMENT NOTE: Nepal APPENDIX 9

Vehicle Registration in Nepal

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

COUNTRY ENVIRONMENT NOTE: Nepal 37 APPENDIX 10

Energy Consumption in Nepal

Table A.10.1: Energy Consumption in Nepal by Sector Energy Consumption, ‘000 Tons of Oil Equivalent Sector 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 Energy Consumption ‘000 Tons of Oil Equivalent Sector 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.

38 COUNTRY ENVIRONMENT NOTE: Nepal APPENDIX 11

Emission of Air Pollutants in Nepal

Table A.11.1: Emission of Air Pollutants in Nepal TSP (tons/yr) PM (tons/yr) Sources 10 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 used Pollutants (tons/yr) Energy source (‘000 tons) 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.

COUNTRY ENVIRONMENT NOTE: Nepal 39 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 4 GHGs in 2000 amount to 44.7 Gt CO2 eq. 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.

40 COUNTRY ENVIRONMENT NOTE: Nepal APPENDIX 14

Temperature Trends in Nepal

Table A.14.1: Mean Maximum Temperature Trends from 1977 to 1994 in Nepal in Ċ Seasonal Physiographic Region Annual Pre-monsoon Monsoon Post-monsoon Winter (Dec-Feb) (Jan-Dec) (Mar-May) (Jun-Sep) (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.

Table A.14.2: Temperature Trends across Nepal

All Nepal Temperature Trend

22.0 y=0.0435x + 19.268

21.0

20.0

19.0

18.0

17.0 Temperature (˚C) Temperature

16.0 1991 1981 1977 1975 1979 1997 1993 1987 1995 1983 1985 1999 1989 2001 2007 2003 2005 2009

Year

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.

COUNTRY ENVIRONMENT NOTE: Nepal 41 Table A.14.3: Comparing Kathmandu, All-Nepal and Global Temperatures

0.8 0.8

0.4 0.4

0.0 0.0

-0.4 0.4

Kathmandu Temperature 24-40˚ North Latitude Temperature All-Nepal Temperature All-Nepal Temperature Trend 1977-94 eviation from Normal ˚C Normal from D eviation Temperature

1880 1900 1920 1940 1960 1980 2000 Years

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).

42 COUNTRY ENVIRONMENT NOTE: Nepal Table A.14.5: GCM Estimates for Temperature and Precipitation Changes in Nepal Temperature Changes (˚C) mean (standard deviation) Preciptitation change (%) mean (standard deviation) Year 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 Precipitation Season 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 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.

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

3

2

1

0

-1

Rainfall in standarized units in standarized Rainfall -2

-3

1850 1865 1880 1895 1910 1925 1940 1955 1970 1985 2000

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).

COUNTRY ENVIRONMENT NOTE: Nepal 43 Appendix 16

Disasters Causing Loss of Life and Property in Nepal

Table A.16.1: Disasters Causing Loss of Life and Property in Nepal Year Disaster Loss 2010 Floods, landslides, avalanches, 448 lives were lost, 261 were injured. A total of 1,526 livestock were earthquake, fires, storms, cold wave, lost, 23,370 houses destroyed, 19,026 families severely affected, epidemics 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 in western Caused loss of 31 lives, 40 persons missing Nepal 1255, 1810, 1866, 1934, Major earthquakes are reported on Loss of tens of thousands of lives and damage to thousands of 1980, 1988, and 2011 average every 75 years buildings 2002, 2003, 2012 Fires occur almost every year during the The fires in the town of Myanglung in Terhathum District in 2002 dry season from February to May and Phungling Bazaar in in 2003 in eastern Nepal, and in Aurahi, 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.

44 COUNTRY ENVIRONMENT NOTE: Nepal APPENDIX 17

Nepal Millennium Development Goals

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

Goals/ Indicators Achievement 2015 target Targets 1990 2000 2005 2010 2013 Target 1A 1.2. Percentage of population below national 42 38 31 25.4 23.8 21 poverty line Target 1C Prevalence of underweight children aged 6–59 57 53 43 38.6 28.8 29 months Proportion of population below minimum level of 49 47 40 22.5 15.7 25 dietary energy consumption 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 38 63 79.1 77.9 84.2 100 reach grade five 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- 0.48 … 0.73 0.83 0.85 1.0 ate men aged 15–24 years 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 42 71 85 … 88a > 90 against measles Target 5A Maternal mortality ratio (per 100,000 live births) 850 415 281 229 170 213 Proportion of births attended by skilled birth at- 7 11 19 36 50 60 tendant (%) Target 5B Contraceptive prevalence rate (modern methods) 24 35.4 44.2 … 43.2 67 (%) Adolescent birth rate (births per 1,000 women … 110 98 … 81 70 aged 15–19 years) Target 6A Proportion of population with advanced HIV … … … 21 28.7 80 infection receiving antiretroviral combination therapy (%) Target 6C Annual parasite incidence (per 1,000 people) … 0.55 0.28 0.11 0.08 0.06 Clinical incidence (per 1,000 people) … … 3.3 5.7 3.3 Halt and reverse the trend Death rate associated with TB (per 100,000 43 23 22 22 21 Halt and people) reverse the trend Proportion of TB cases cured under directly ob- 40 89 89 90 90 91 served treatment short course (DOTS) (%)

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

COUNTRY ENVIRONMENT NOTE: Nepal 45 Goals/ Indicators Achievement 2015 target Targets Consumption of all ozone-depleting substances 25.0 99.2 0.88 … … (tons) 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/ 1.44 3.91 3.64 3.7 3.2 million Rs) Proportion of people using wood as their main 75 67.74 69.1 68.4 64.4 fuel Proportion of people using liquid petroleum gas as … 7.67 8.2 12.3 18 their main fuel 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 0.013 1.0 1.2 1.24 1.65a (million ha) 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- 46 73 81 80.4 85 73 ing water source Proportion of population using an improved 6 30 39 43 62 80 sanitation facility 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 2015 Target 5. Improve Maternal Health: i) Reduce maternal mortality by three-quarters between 1990 and 2015, and ii) Achieve universal access to reproductive health by 2015 Target 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

46 COUNTRY ENVIRONMENT NOTE: Nepal Table A.17.2: Millennium Development Goal Achievement by Nepal

Likelihood of achievement Status of supportive environment Goal Potentially Lack of Weak but Achieved Likely Unlikely Strong Fair Weak Likely data Improving 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

COUNTRY ENVIRONMENT NOTE: Nepal 47 APPENDIX 18

Regulatory Mechanisms Safeguarding the Environment in Nepal

Table A.18.1: Regulatory Mechanisms Safeguarding the Environment in Nepal Theme Regulatory mechanism Environmental protection, environmental assess- Environment Protection Act (1997), Environment Protection Rules (1997), Mines and ment, environmental monitoring Minerals Act 1985, Forest Act 1993, Water Resources Act 1992, Electricity Act 1992 Land and soils, land degradation, landslides and Land Acquisition Act 1977, Local Self-governance Act, 1999 and Rules 1999, Soil and soil erosion, watershed deterioration Watershed Conservation Act 1992 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 Management of forest resources 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) National Park and Wildlife Conservation (NPWC) Act 1973 and NPWC Rules 1973, Conservation Area Management Rules 1996, Buffer Zone Management Rules 1995, Management and protection of biodiversity, and Plant Protection Act, 1964 and Plant Protection Rules 1974, Aquatic Animals Protec- fauna and flora tion Act 1960 (amended in 1997), National Trust for Nature Conservation Act 1982 (amended in 2006) Water Resources Act 1992 and Water Resources Rules, 1993, Drinking Water Regulation Water resources management 1998, Irrigation Regulation 2003, Electricity Act 1992, Electricity Rules 1993, Local Self- governance Act, 1999 Pesticides Act 1991 and Rules 1994, Animal Health and Animal Services Act 1998 and Agricultural chemical pollution, emission, meat Rules 1999, Slaughterhouse and Meat Inspection Act, 1998 and Rules 1999, Food Act, hygiene, food adulteration 1966 and Rules 1970, Consumer Protection Act, 1998 and Rules, 2000 Electricity Act 1992, Electricity Rules 1993, Environment Protection Act (1997), Environ- Air and noise pollution ment Protection Rules (1997), Civil Aviation Act 1958, Explosives Act 1961, Labour Act 1992, Ozone Depleting Substance Consumption Regulations (2001) Nepal Water Supply Corporation Act 1989, Water Resources Act 1992 and Water Water pollution Resources Rules, 1993, Drinking Water Regulation 1998, Environment Protection Act (1997), Environment Protection Rules (1997), Electricity Act 1992, Electricity Rules 1993 Nepal Water Supply Corporation Act 1989, Labour Act 1992, Solid Waste (Management Waste and sewerage management and Resource Mobilization) Act 1987 (amended 1992) Natural induced disasters Natural Calamity (Relief) Act 1982 (amended in 1992)

48 COUNTRY ENVIRONMENT NOTE: Nepal 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 Nepal Policies/strategies Features related to environmental sustainability Master Plan for the Forestry Sets out a 25-year policy and planning framework to meet people’s needs from forest products on a sustain- Sector 1989 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 Ensures safe water supply as an integral component of the sanitation program, as well as proper disposal of Sanitation, 1994 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 Mandates environmental and social safeguards during hydropower development and operation, maintaining Policy, 2001 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, Promotes protection and wise use of biologically diverse resources, the protection of ecological processes and 2002 systems, and the sharing of benefits to the people who depend on such resources for their livelihood

Water Resources Strategy, Develops an integrated water resources management system; protects the aquatic environment and its biodi- 2002 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, Promotes a scientific land use system; discourages non-agricultural use of fertile land; minimizes the adverse 2004 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- Contributes to the economy by conserving high value MAPs and NTFPs, promoting Nepal as a good source of ber Forest Products Develop- MAPs and NTFPs internationally by the year 2020; creates employment opportunities through farming and ment Policy, 2004 semi-processing MAPs and NTFPs Agro-biodiversity Policy, 2007, Promotes sustainable use of agricultural genetic resources/materials and associated traditional knowledge with revised and updated 2014 the participation of concerned stakeholders for present and future generations Draft agriculture development Guides the agricultural sector of Nepal over the next 20 years: the strategy considers the agricultural sector in strategy, 2013 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, Assists in the poverty reduction program by utilizing natural resources in a sustainable manner through the 2005 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- Protection and management of watershed, river and water-related environments to sustain infrastructure agement Policy, 2006 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 Establishes organic and pesticide-free production areas for commercial crop/commodity production Policy, 2006

COUNTRY ENVIRONMENT NOTE: Nepal 49 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 Provides a road map for all sectors to prepare sector-specific programs on disaster management and formulate Risk Management, 2009 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) Conservation, development, and sustainable use of grassland biodiversity with rights and responsibilities Policy, 2012 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, MOFSC, MOAD, MLRM, MFALD, MPIT, MOE, NEA watershed deterioration Forest degradation, forest and agriculture biodiversity MOFSC, MOAD conservation, wildlife protection, desertification* 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 MOE, MOIrr, MOAD, MFALD, Municipalities and rivulet alteration, wetlands degradation*, groundwater depletion* 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 MOSTE, and all other ministries involved in development activities environmental programs

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.

50 COUNTRY ENVIRONMENT NOTE: Nepal 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 Water Supply and other municipal infrastructures 3 19 14.2 and services 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

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

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

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

COUNTRY ENVIRONMENT NOTE: Nepal 51 Table A.21.4: ADB-supported Ongoing Projects and Technical Assistance with Environmental and Climate Change Components in Nepal Assistance ADB Project Project Title Type (Loan/ Amount Approval ADB Core Area Salient Features Executing Agency TA) $ million Date Bagmati Grant-0367 29 31 Oct 2013 Capacity development, Improving water security and Ministry of Urban River Basin Loan-3057 Economic growth, resilience to potential climate Development Improvement Environmental change impact in the Bagmati River Project sustainability, Basin Social development Building Grant-0357 28.2 23 Sep 2013 Economic growth, Department of Climate Grant-0358 Environmental Building climate resilience in Forest and Soil Resilience of sustainability, vulnerable mountain regions Conservation Watersheds in Social development Mountain Eco- Regions

Mainstreaming TA-7984 7.8 6 Sep 2013 Capacity development, Risk screening tools and methods Ministry of Science, Climate Environmental applied for projects in irrigation, Technology and Change Risk sustainability, flood protection, roads, water Environment Management in Social development supply and sanitation, and urban Development 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-3012 73 30 Jul 2013 Capacity development, An alternate route in Sunsari and Ministry of Physical Subregional Economic growth, Saptari districts; the repair of three Infrastructure and Economic Environmental feeder roads in hill areas Transport Cooperation sustainability, Road Connectivity Regional cooperation and Project integration

Kathmandu Loan-3000 77.9 26 Apr 2013 Capacity development, Rehabilitation and expansion of the Ministry of Urban Valley Waste Environmental sewerage network; modernization Development Water sustainability, and expansion of wastewater Management Private sector treatment plants; improvement of Project development, Social wastewater management in the development, Climate Kathmandu Valley that will help change reduce pollution of the Bagmati River Third Small Loan-3157 56.9 19 Sept 2014 Capacity development, Supporting the ongoing efforts of Ministry of Urban Towns Water Economic growth, the Government of Nepal to further Development Supply and Environmental improve water supply and sanitation Sanitation sustainability service delivery in small towns in Sector Project Nepal Tanahu Loan-2990 142.7 21 Feb 2013 Capacity development, A medium-sized hydropower plant Tanahu Hydropower Hydropower Loan-2991 Economic growth, of 140 MW with significant water Limited, Nepal Project Environmental storage facilities and associated Electricity Authority, sustainability, transmission lines to evacuate Ministry of Energy Private sector the generated power; rural development electrification and community development in the project area; a reform and restructuring plan for the national utility, the Nepal Electricity Authority

52 COUNTRY ENVIRONMENT NOTE: Nepal Assistance ADB Project Project Title Type (Loan/ Amount Approval ADB Core Area Salient Features Executing Agency TA) $ million Date Water Grant-0299 11 27 Jul 2012 Capacity development, Detailed feasibility studies for high Ministry of Irrigation Resources Economic growth, priority water resources projects Project Environmental undertaken; environmental, Preparatory sustainability, social, and technical capacity Facility Social development of Department of Irrigation and Department of Water Induced Disaster Prevention improved; Irrigation Master Plan updated; efficient project management Integrated Grant-0284 53.6 14 Feb 2012 Capacity development, Providing the population in the Ministry of Urban Urban Loan-2851 Environmental municipalities of Dharan, Janakpur, Development Development sustainability, , and Siddharthanagar Project Private sector with better access to municipal development, infrastructure and services in a Social development socially inclusive manner Decentralized Grant-0267 24.7 31 Oct 2011 Capacity development, Improving rural livelihoods; Department of Rural Loan-2796 Economic growth, enhancing capacity and Local Infrastructure Infrastructure Governance, decentralized local governance; Development and and Livelihood Social development, extending and maintaining rural Agricultural Roads Project – Climate Change transport infrastructure; improving Additional project management Financing

Electricity Grant-0270 71.1 15 Nov 2011 Capacity development, Expanding electricity transmission Nepal Electricity Transmission Loan-2808 Economic growth, capacity; strengthening distribution Authority Expansion Environmental systems including those along the and Supply sustainability, Tamakoshi (Khimti)–Kathmandu Improvement Regional cooperation and transmission line; rehabilitating Project integration selected small hydropower plants

Kathmandu Loan-2776 74.7 15 Sept 2011 Capacity development, Complementing past and ongoing Ministry of Urban Valley Water Environmental efforts to improve access, efficiency, Development Supply sustainability, and reliability of water supply Improvement Social development services to the residents of the Project Kathmandu Valley High Mountain Grant-0248 20 25 Mar 2011 Economic growth, Increased number of mountain Ministry of Agribusiness Environmental agribusinesses making use of Agriculture and Livelihood sustainability, agribusiness grants; mountain Development Improvement Private sector agribusinesses have knowledge Project development and access to improved production (HIMALI) technologies and value-addition; effective project management at central and district levels Kathmandu Grant-0212 20 22July 2010 Capacity development, Improving the quality of urban Ministry of Physical Sustainable Loan-2656 Economic growth, life in the capital city of Nepal by Infrastructure and Urban Environmental delivering a more efficient, safe, and Transport Transport sustainability, sustainable urban transport system Project Private sector (UTS), favoring local economic development growth and addressing climate change and air pollution mitigation Secondary Loan-2650 60 6 Jul 2010 Capacity development, Improving drainage and sewerage Ministry of Urban Towns Environmental systems (, Birgunj); Development Integrated sustainability, improving urban roads and lanes Urban Private sector (Biratnagar, Birgunj); improving Environmental development, solid waste management systems Improvement Social development (Birgunj, Butwal); expanding water Project supply systems (Kavre Valley, Butwal); improving other urban infrastructure facilities (Butwal); community development program

COUNTRY ENVIRONMENT NOTE: Nepal 53 Assistance ADB Project Project Title Type (Loan/ Amount Approval ADB Core Area Salient Features Executing Agency TA) $ million Date Energy Access Loan-2587 57 27 Nov 2009 Capacity development, Energy access, clean energy, and Nepal Electricity and Efficiency Economic growth, capacity building Authority Improvement Environmental Project sustainability, Regional cooperation and integration Second Small Grant-0157 0.451 17 Sep 2009 Environmental Developing an efficient, effective, Ministry of Urban Towns Water sustainability, and accountable urban water Development Supply and Gender equity, supply and sanitation sector, Sanitation Governance, entailing the development of safe, Sector Project Social development accessible, and adequate water supply and sanitation facilities in about 20 small towns; strengthening governance and capacity for project management and operation Emergency Grant-0150 25.6 21 Apr 2009 Economic growth, Sustained growth of economic Ministry of Physical Flood Damage Environmental activities by minimizing the Infrastructure and Rehabilitation sustainability devastating impact of the 2008 Transport Project monsoon floods, mainly in the three flood-affected districts Community Grant 0219 26 27 Sept. 2010 Capacity development, Promoting inclusive economic Department of Irrigation Economic growth, growth, poverty reduction, and Local Infrastructure Project Gender equity, sustainable management of water Development and Governance, and land resources Agricultural Roads Environmental Sustainability Melamchi Loan-1820 163.3 21 Dec 2000 Environmental Alleviating the chronic water Ministry of Urban Water Supply Loan-3110 sustainability shortage in the Kathmandu Valley Development Project on a sustainable, long-term basis, Melamchi Water and improving the health and well- Supply Development being of its inhabitants Board Ministry of Physical Infrastructure and Transport Kathmandu Upatyaka Khanepani Limited (KUKL) South Asia Loan-2579 53 16 Nov 2009 Capacity development, Improved connectivity to ; Ministry of Tourism, Tourism Loan-3117 Economic growth, destination improvements; capacity Culture and Civil infrastructure Grant-0179 Environmental development of sector agencies and Aviation Development sustainability, local communities. Upgrading of Project and Regional cooperation and Bhairahawa airport to international Additional integration standard Financing Subregional Loan-2658 39.6 27 Oct 2010 Capacity development, Upgrading and rehabilitation of Ministry of Transport Grant-0225 Economic growth Belbari-Churharwa road, Harkpur- Infrastructure Facilitation Environmental Okhaldhunga, Okhaldhunga-Salleri, and Transport Project Sustainability Regional Chainpur-Khandbari, Bhairahwa Cooperation and Bypass, and Nepalgunj-Kohalpur Integration road

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).

54 COUNTRY ENVIRONMENT NOTE: Nepal 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 Budget Starting Completion Thematic SN Projects Description Implementing Agency $ million Date Date Area Renewable The RERL project started in Alternative Energy Promotion Energy for Rural April 2011 as an extension of the Environment Centre/Ministry of Energy, Ministry 1 Livelihood 13.4 Apr 2011 Mar 2014 successful partnership between and Energy of Science, Technology and (RERL) the government and UNDP in Environment the renewable energy sector Ecosystem Based Strengthen the capacity of Adaptation countries that are particularly Environment 2 in Mountain 3.37 Aug 2012 Aug 2015 vulnerable to climate change Department of Forests and Energy Ecosystems in impacts, through ecosystem- Nepal based adaptation approaches Environment Ensure that Nepal’s poorest Nepal Climate and Energy and most vulnerable people are Ministry of Science, Technology 3 Change Support 22.38 Jan 2013 Dec 2015 and Climate able to adapt to the effects of and Environment Programme Change climate change Department of Hydrology and Community Reduce human and material Meteorology Based Flood losses from Glacier Lake Department of Soil Conservation and Glacial Environment Outburst Flooding (GLOF) and Watershed Management 4 Lake Outburst 7.25 2013 2017 and Energy in and Department of Water Induced Risk Reduction catastrophic flooding events in Disaster Prevention Project the Terai and Churia Range Department of National Parks and Wildlife Conservation United Nations Development Comprehensive Programme (UNDP), Ministry Disaster Risk Strengthening the capacity for of Home Affairs, Ministry of Management Environment disaster risk management in line Physical Planning and Works, 5 17.5 Feb 2011 Dec 2015 Programme and Energy with the recommendations of Ministry of Local Development, (CDRMP) the national strategy sectoral ministries, National Planning Commission, local bodies, United Nations, Oxfam Conservation MOFC, GEF, International Union Maintenance and enhancement and Sustainable for the Conservation of Nature of wetland biodiversity and Use of Wetlands Environment (IUCN), Department of Forests, 6 6.03 Mar 2007 31 Mar 2012 environmental goods and in Nepal and Energy Department of National Parks and services for improved local (CSUWN) Wildlife Conservation, District livelihoods Development Committees Western Terai Ministry of Forest and Soil Establishing a landscape- Landscape Conservation, district agriculture, level management model to Complex Environment forest and livestock offices, NARC, 7 8.9 Jan 2006 31 Jul 2012 safeguard the area’s biological Project and Energy national parks, local authorities, non- wealth and its vital ecological (WTLCP) governmental organizations (NGOs) functions and community groups Funding local initiatives for GEF Small environmental conservation; Grant 4.2 Environment biodiversity conservation UNDP, NGOs and community 8 Programme (2009 1996 30 Jun 2014 and Energy projects, climate change organizations (SGP) budget) mitigation projects, and reversing land degradation Public Private Ministry of Local Development, Building an enabling policy Partnership 4.4 Phase I MuAN, Federation of Nepalese Phase I & II: Poverty environment and the human 9 for Urban (Phase II & II: Mar Chambers of Commerce and Industry Dec 2012 Reduction resources to implement public- Environment only 2002 (FNCCI), local businesspeople, private partnerships (PPPUE) 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

COUNTRY ENVIRONMENT NOTE: Nepal 55 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 Budget Approval Closing Implementing SN Project Thematic Area $ million Date Date Agency Additional Financing for the Irrigation and Drainage (60%), Ministry of 1 Irrigation and Water Resources 50.0 23 Dec 2013 … Agricultural Extension and Research Irrigation Management Project (IWRMP) (20%), Crops (20%) General Agriculture, Fishing and Forestry Second Additional Financing (65%), Other social services (25%), Poverty Alleviation 2 for the Poverty Alleviation 80.0 5 Jun 2013 … Public Administration and other social Fund Fund II Project services (10%) Large Hydropower (97%), General Kaligandaki A Hydropower Nepal Electricity 3 27.26 15 May 2013 30 Jun 2017 Water, Sanitation and Flood Protection Plant Rehabilitation Project Authority (3%) General Water, Sanitation and Flood Protection (50%), Public Administration Department of Building Resilience to Climate – Water, Sanitation and Flood Protection 4 31 14 Feb 2013 30 Nov 2018 Hydrology and Related Hazards (31%), General Agriculture, Fishing and Meteorology Forestry (14%), Public Administration – Agriculture, Fishing and Forestry (5%) General Agriculture, Fishing and Forestry (28%), Agriculture Extension and Ministry of Nepal Agriculture and Food 5 58.0 11 Feb 2013 31 Mar 2018 Research (19%), Public Administration – Agriculture and Security Project Agriculture, Fishing and Forestry (19%), Cooperatives Crops (17%), Animal Production (17%) Crops (39%), Agro-industry, Market and Additional Financing for Ministry of Trade (26%), Public Administration – 6 the Project for Agriculture 40.0 15 Nov 2012 … Agriculture and Agriculture, Fishing and Forestry (22%), Commercialization and Trade Cooperatives Animal Production (13%) Solid Waste Output-Based Aid for Management 7 Municipal Solid Waste 4.6 19 Oct 2012 30 Jun 2017 Solid Waste Management (100%) Technical Management Assistance Center Nepal: Pilot Project for Seismic Department of 8 1.51 17 Aug 2012 30 Jun 2014 Natural Disaster Management (100%) School Safety Education Modernization of Rani Jamara Irrigation and Drainage (76%), Flood Department of 9 Kulariya Irrigation Scheme – 49 5 Jul 2011 30 Sep 2016 Protection (15%), General Agriculture, Irrigation Phase 1 Fishing and Forestry (9%) National Electricity 10 Kabeli Transmission Project 47.69 10 May 2011 30 Jun 2015 Power (96%), Renewable Energy (4%) Authority Agriculture, Fishing, and Forestry (32%), Agro-industry, Marketing, and Additional Financing to the Trade (17%), Health and other social Poverty Alleviation 11 96 21 Apr 2011 … Poverty Alleviation Fund II services (17%), Water, Sanitation Fund and Flood Protection (17%), General Transportation (17%) Agriculture, (28%), Agro-industry, Project for Agriculture Ministry of Marketing, and Trade (28%), Agro- 12 Commercialization and Trade 23 4 Jun 2009 30 Jun 2015 Agriculture and industry (28%), Public Administration (PACT) Cooperatives (16%) PPIAF: NEPAL: Setting 13 Baseline of Kathmandu Valley 27 6 Jul 2009 31 Jan 2012 Water Supply (50%), Sewerage (50%) ADB Water Services

56 COUNTRY ENVIRONMENT NOTE: Nepal Budget Approval Closing Implementing SN Project Thematic Area $ million Date Date Agency Irrigation and Drainage (65%), Department of Agriculture (30%), Public Irrigation and Water Resources Irrigation 14 14.3 30 Sep 2008 … Administration, Law, and Justice (Public Management Supplemental Department of Administration – Agriculture, Fishing and Agriculture Forestry) (5%) Rural Water Second Rural Water Supply Supply and Water Supply (90%), Sanitation (5%), 15 and Sanitation Project – 41 6 May 2008 … Sanitation Fund Health (5%) Additional Financing Development Board Irrigation and Drainage (25%), Animal Poverty Alleviation 16 Poverty Alleviation Fund II 109 6 Dec 2007 30 Jun 2014 Production (25%), Other social services Fund Board (25%), Water Supply (25%) Irrigation and Drainage (76%), Agricultural Extension and Research Irrigation and Water Resources Department of 17 60 6 Dec 2007 30 Jun 2013 (12%), Central Government Management Project Irrigation Administration (8%), Agriculture, Fishing, and Forestry (2%), Others (2%) Climate Change (50%), Rural Services Alternative Energy 18 Nepal – Village Micro Hydro 59.1 30 Jun 2007 15 Dec 2015 and Infrastructure (50%) Promotion Centre Irrigation and Drainage (26%), Primary Nepal Poverty Alleviation Fund Education (26%), Roads and Highways Poverty Alleviation 19 25 14 Nov 2006 … II Supplemental (26%), Other social services (18%), Fund Micro Finance (4%) Climate Change (50%), Land Alternative Energy 20 Nepal – Biogas Program 61.9 2 Jun 2006 30 Jul 2015 Administration and Management (25%) Promotion Centre Department of Local Rural Access Improvement and 21 44.04 21 Jun 2005 31 Dec 2013 Roads and Highways (100%) Infrastructure Decentralization Project Development and Agricultural Roads Rural Water Supply and Second Rural Water Supply Water Supply (90%), Sanitation (5%), 22 41.5 1 Jun 2004 31 Aug 2012 Sanitation Fund and Sanitation Project Health (5%) Development Board Climate Change (25%), Rural Services and Infrastructure (25%), Micro, Small and Medium Enterprise Support (13%), Nepal Power Development Ministry of Water 23 133.4 22 May 2003 31 Dec 2012 Other financial and private sector Project Resources development (24%), Public Expenditure, Financial Management and Procurement (13%)

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

COUNTRY ENVIRONMENT NOTE: Nepal 57 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 Starting Completion Budget SN Project Thematic Area Description Date Date Million £ Improve basic service delivery by providing Nepal Local Environmental Policy poor people, especially women and children, 1 Governance Support 10 Dec 2013 31 Jul 2017 and Administrative community-prioritized and climate-resilient 70.1 Programme Management infrastructure by capable and accountable local government and civil society Improve road access for 800,000 members Rural Access Road Transport, 2 28 Jan 2013 31 Dec 2016 of rural communities in the Western Region 36.7 Programme 3 Agriculture Development of Nepal Agriculture Development, Nepal Market Agriculture Services, Improve incomes and growth for poor and 3 Development 6 Mar 2012 5 Mar 2017 Agricultural Policy disadvantaged people in key sub-sectors 14.54 Programme and Administrative within agriculture and other rural markets Management Support to Build Environmental Policy Strengthen national systems for disaster 4 Earthquake 2 Feb 2012 31 Mar 2015 and Administrative risk management and response, increasing 21.96 Resilience in Nepal Management community-based earthquake readiness Rural Water Rural communities manage adequate use Basic Drinking Water 5 and Sanitation 27 Jun 2012 31 May 2015 of potable water, improved hygiene and 4.2 Supply and Sanitation Programme Phase V sanitation Multi-Stakeholder Nepal’s forestry sector contributing to 6 Forestry Programme 22 Aug 2011 31 Jul 2016 Forestry Development inclusive economic growth, poverty reduction 20.0 – Nepal and tackling climate change Nepal Climate Enhanced capacity of Nepal Government 7 Change Support 17 Dec 2010 31 Mar 2015 Biodiversity to implement effective climate change 11.85 Programme responses Harnessing tourism as a driver to improve Great Himalaya livelihoods and bring sustainable, inclusive 8 Trail Development 5 Oct 2010 31 Dec 2013 Rural Development 2.44 development opportunities to rural Programme communities Improved access by poor and excluded Drinking Water and people, including women and girls, Community Support 9 13 Apr 2010 31 Mar 2014 Sanitation, Agricultural to community-based development 20.0 Programme Phase II Development opportunities and enhanced preparation to cope with disaster Market Access for Agricultural Services, Sustainable increases in income of 10 Smallholder Farmers 29 Jun 2010 30 Jun 2012 2.5 Agricultural Development smallholder farmers Programme Assistance for Vulnerable Reduce vulnerability of those affected by Populations 21 Dec 11 31 Mar 2010 Emergency Food Aid food insecurity, rising food prices and floods 5.0 Affected By Conflict 2009 in Nepal and High Food Prices in Nepal

58 COUNTRY ENVIRONMENT NOTE: Nepal Starting Completion Budget SN Project Thematic Area Description Date Date Million £ Rural Reconstruction and Reduce poverty through improved rural 12 5 Mar 2009 30 Nov 2013 Road Transport 13.32 Rehabilitation Sector infrastructure Development Support to Agricultural Policy Deliver appropriate agricultural support 13 Decentralised 29 Jul 2009 31 Mar 2011 and Administrative services to the rural poor through improved 1.5 Agriculture in Nepal Management policy and institutional arrangements Develop the knowledge, relationships Environmental Policy South Asia Water and institutions to enable significant and 14 17 Feb 2009 31 Mar 2015 and Administrative 3.6 Initiative measurable improvements in international Management water resource management Support to Deliver appropriate agricultural support 15 Decentralised 29 Jul 2009 31 Mar 2011 Agricultural Land Services services to the rural poor through improved 15.0 Agriculture in Nepal policy and institutional arrangements Develop a strategic framework of action on Support to Climate 25 Dec 16 31 Mar 2011 Biodiversity climate change with which stakeholders can 0.66 Change Programme 2008 align their responses Drinking Water and Improved access to basic services for Community Support 17 May 17 31 Mar 2010 Sanitation, Agricultural conflict-affected people, particularly the poor 17.85 Programme 2005 Development and excluded Agricultural Agricultural Policy Deliver appropriate agricultural support 18 Perspective Plan 1 Jul 2003 31 Aug 2009 and Administrative services to the rural poor through improved 8.57 Support Programme Management policy and institutional arrangements Assets of rural communities enhanced Livelihoods and 19 2 Nov 2000 31 Dec 2012 Forestry Development through more equitable, efficient and 25.85 Forestry Programme sustainable use of forest resources

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

COUNTRY ENVIRONMENT NOTE: Nepal 59 APPENDIX 25

Nepal Environmental Standards and Guidelines

Table A.25.1: National Ambient Air Quality Standards for Nepal, 2003 Concentration Averaging WHO Units in Ambient Test Method Parameters Time Guideline Air, maximum

Annual - HVS 24-hour sampling (one weak sample TSP (Total Suspended Particulates) µg/m3 120-230 24-hoursa 230 at 2 road side stations) Annual - PM10 (Particulate Matter) µg/m3 70 Light Volume Sampling 24-hours* 120 Annual 50 Sulphur Dioxide µg/m3 125 Diffusive sampling based on weekly average 24-hours** 70 Annual 40 Nitrogen Dioxide µg/m3 150 Diffusive sampling based on weekly average 24-hours** 80 8 hours** 10,000 To be determined before 2005 Carbon Monoxide µg/m3 100,000 15 minute 100,000 Indicative sampler

Annual 0.5 Atomic absorption spectrometry analysis of Lead 0.5–1.0a µg/m3 24-hours - PM10 samples Annual 20d Benzene - Diffusive sampling based on weekly average µg/m3 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.

60 COUNTRY ENVIRONMENT NOTE: Nepal Table A.25.2: National Indoor Air Quality Standards, Nepal, 2009 Maximum Concentration Pollutant Level Average Time 120 µg/m3 24-hour Particulate Matter (PM10) 200 µg/m3 1-hour 60 µg/m3 24-hour Particulate Matter (PM2.5) 100 µg/m3 1-hour 9 ppm (10 mg/m3) 8-hour Carbon Monoxide (CO) 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 Turbidity pH Color NTU 5 (10)a Taste and Color TCU 6.5-8.5b Total Dissolved Solids mg/l 5 (15)a Electrical Conductivity Iron µc/cm Would not be objectionable Manganese mg/l 1000 Arsenic Cadmium mg/l 1500 Chromium mg/l 0.3 (3)a Physical Cyanide Fluoride mg/l 0.2 Lead mg/l 0.05 Ammonia mg/l 0.003 mg/l 0.05 mg/l 0.07 mg/l 0.5–1.5b mg/l 0.01 1.5 Chloride Sulphate Nitrate Copper mg/l 250 Total Hardness mg/l 250 Calcium Zinc Mercury Aluminum mg/l 50 Residual Chlorine mg/l 1 mg/l 500 Chemical mg/l 200 mg/l 3 mg/l 0.001 mg/l 0.2 mg/l 0.1–0.2b E. coli MPN/100 ml 0 Micro Germs Total coli form MPN/100 ml 95% 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.

COUNTRY ENVIRONMENT NOTE: Nepal 61 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. Electrical < 40 mS/m Up to 540 mS/m depending upon sensitivity of crops Conductivity 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 Adsorption < 2.0 Up to 10 depending upon sensitivity of crops Ratio (SAR) 20. Sodium < 70 mg/l Up to 460 depending upon sensitivity of crops 21. Total Dissolved < 40 mS/m Up to 540 mS/m depending upon sensitivity of crops Solids (as EC) 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.

62 COUNTRY ENVIRONMENT NOTE: Nepal Table A.25.5: Water Quality Guidelines for Aquaculture, Nepal

SN Constituents Target Water Quality Range Remarks

1 Algae No criteria High alkalinity reduces natural food produc- 2 Alkalinity 20–100 mg/l as CaCO3 tion in ponds below optimal production

< 30µg/l (pH > 6.5) Highly toxic to trout (1.5 µg/l is fatal to brown 3 Aluminum 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 Hardness: 0–60 mg/l < 0.2 mg/l Cadmium toxicity depends upon hardness of water 9 Cadmium 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)

< 2 µg HOCl/l for cold water fish 12 Chlorine < 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-hour LC50 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

COUNTRY ENVIRONMENT NOTE: Nepal 63 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- < 300 µg/l chemicals) 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 fish 34 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 as < 100% for cold water fish Mortality increases with increasing TGP Total Gas Pressure (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- Hardness: Warm water Warm water fish are more tolerant ness: mg/l dissolved Zn Cold water 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.

64 COUNTRY ENVIRONMENT NOTE: Nepal

Country Environmental Note Nepal

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. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

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ADB Nepal Resident Mission Metro Park Building, Lazimpat Post Box 5017, Kathmandu, Nepal [email protected] www.adb.org/nepal Printed in Nepal

66 COUNTRY ENVIRONMENT NOTE: Nepal