COUNTRY ENVIRONMENT NOTE NEPAL COUNTRY ENVIRONMENT NOTE NEPAL The CEN was prepared by Deepak B Singh, Senior Environment Officer, Nepal Resident Mission, South Asia Department, Asian Development Bank, with the technical support of Shree Govind Shah, Environment Consultant. Asian Development 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. Climate 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 rain shadow areas to highly gas emission, and avoid social, economic and flood 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 South Asia 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