Climate-induced disasters threaten hydropower projects
Nepal is one of the most climate-vulnerable countries in the world, despite contributing only 0.027 percent to global carbon emissions. Its geographic location in the Himalayan region makes it particularly susceptible to the impacts of global warming. Rising temperatures have accelerated the melting of glaciers that have existed for centuries, leading to floods, landslides, and erratic rainfall patterns. These environmental changes are taking a heavy toll on Nepal’s agriculture, water resources, forests, biodiversity, and, most importantly, the lives and livelihoods of its people. Infrastructure is also under significant strain, with roads, bridges, and hydropower plants suffering recurring damage from natural disasters. The costs of these damages are mounting year after year, leaving Nepal to grapple with the dual challenges of economic development and environmental sustainability.
The effects of climate change are no longer distant threats but pressing realities. In October, the country witnessed devastating floods and landslides, exacerbated by increasingly unpredictable monsoon rains. These events left communities in chaos, further highlighting Nepal’s vulnerability to climate-induced disasters. UN Secretary-General António Guterres’ visit to Nepal last year brought international attention to this crisis. During his trip to Syangboche in Solukhumbu, he observed the retreat of Himalayan glaciers firsthand and noted that Nepal has lost nearly one-third of its glaciers over the past 30 years. His observations underscored the urgent need to address the cascading effects of glacial retreat on local communities and downstream ecosystems, which rely heavily on Himalayan water sources.
Industrial pollution from neighboring countries, particularly India and China, is aggravating the crisis. Pollutants such as carbon dioxide and black carbon are being deposited on Nepal’s snowcaps, reducing their ability to reflect sunlight and accelerating their melt rate. These emissions, coupled with Nepal’s own environmental challenges, are creating a dire situation in which the country’s resources and resilience are being stretched to their limits. Tourism, especially mountaineering, has also played a role in worsening the environmental situation. While tourism is a cornerstone of Nepal’s economy, unregulated activities on mountains and trekking routes are contributing to pollution and degrading fragile ecosystems. If left unchecked, these practices will further exacerbate the environmental challenges posed by global warming.
There are, however, promising efforts to address these challenges. One notable example is the decision to keep Mount Machapuchare closed to climbers. This sacred peak has been preserved due to its cultural significance and the concerns raised by religious and environmental advocates. This decision has sparked broader discussions about whether other peaks should also be restricted to protect the integrity of the Himalayan ecosystem. Balancing conservation and development is a complex issue for Nepal, where tourism is a vital economic driver. However, the long-term health of the environment must take precedence to ensure that the natural beauty and resources that sustain the tourism industry are not irreparably damaged.
Nepal has immense potential to combat climate change through the use of its abundant natural resources. The glacial meltwater flowing down the Himalayas feeds over 6,000 rivers, streams, and lakes, which are critical for hydropower generation. Expanding hydropower production offers an opportunity to reduce reliance on fossil fuels and decrease greenhouse gas emissions. Additionally, Nepal has the potential to explore green hydrogen as a sustainable energy solution, using clean water and renewable electricity. Developing these resources can position Nepal as a leader in clean energy production while simultaneously addressing its domestic energy needs.
However, realizing this potential is not without challenges. Despite hosting the International Centre for Integrated Mountain Development (ICIMOD) for over five decades, Nepal has yet to see tangible benefits from its extensive research. Translating scientific insights into actionable strategies for climate adaptation and mitigation has been slow. Furthermore, cooperation with neighboring countries like India and China is crucial. For instance, large hydropower projects in the upper catchment areas of Nepal could have catastrophic consequences for millions of people in downstream regions if not carefully managed. Conducting impartial environmental impact assessments and fostering regional collaboration are essential steps in mitigating cross-border risks and ensuring sustainable development.
Nepal’s government and private sector are working together to chart a path toward a low-carbon future. The country has set an ambitious target of generating 15,000 MW of clean energy by 2030, encompassing micro-hydropower, solar, wind, and bioenergy. Achieving this goal will require significant investment, technological expertise, and policy support. The private sector will play a critical role in this transition, but international financial assistance and partnerships will be equally important. As a developing nation with limited resources, Nepal cannot achieve these targets alone. Global support is vital, not only to finance clean energy projects but also to strengthen Nepal’s capacity to withstand climate impacts.
Advocating for climate justice on the international stage is another key priority. Nepal must continue to emphasize the disproportionate burden that vulnerable countries bear due to the emissions of developed nations. Platforms like COP29 provide opportunities for Nepal to amplify its voice and push for greater financial and technological support. Developed nations must take responsibility for their historical emissions and assist countries like Nepal in building climate resilience. Additionally, scientific research and data must be leveraged effectively to highlight Nepal’s unique vulnerabilities and secure international aid for adaptation and mitigation efforts.
The road to a carbon-neutral future in Nepal is not easy, but it is achievable. By focusing on clean energy production, sustainable development, and environmental conservation, Nepal can set an example for other countries facing similar challenges. Achieving carbon neutrality by 2045 will require collective action from the government, private sector, civil society, and the international community. It will also demand a shift in mindset, recognizing that the preservation of natural resources is not just an environmental imperative but a foundation for long-term prosperity
Nepal’s journey toward sustainability offers a vision of hope and resilience in the face of adversity. Despite its small contribution to global emissions, the country is committed to playing a leading role in combating climate change. By prioritizing clean energy, advocating for climate justice, and fostering regional collaboration, Nepal can transform its vulnerabilities into opportunities. The stakes are high, not just for Nepal but for the global fight against climate change. Only by working together can we build a sustainable future for generations to come.
Role of independent power producers in emission reduction
The Indrawati Hydropower Station, Nepal’s first private sector hydropower project that commenced operations in 1993, has conducted a study to assess its impact on carbon emissions reduction. The study revealed an annual reduction of 41,000 tons of CO2, 62 tons of SO2, and 46 tons of NOx, along with the substitution of 1,616,141 tons of charcoal. Despite these significant achievements, the project has not been able to secure compensation from the climate fund. Given the evolving context, it is evident from the statistics that private hydropower projects, such as the Indrawati Hydropower Station, have made substantial contributions to reducing carbon emissions. Projects of this nature should be eligible for facilities from the climate fund.
In recent times, climate change has impacted Nepal's government-private hydropower projects and power plants. Two critical aspects need consideration in this context: evaluating the reduction in carbon emissions by projects promoted by the private sector and assessing the loss and damage caused by climate change. A comprehensive research effort is essential to collect relevant data. The Independent Power Producers Association of Nepal (IPPAN) and hydropower promoters should take needful initiatives in this regard. This is because income generation from hydropower should not only be their focus; attention must also be given to how a sustainable economy can contribute to the national economy, aligning with the United Nations’ call for adopting Sustainable Development Goals within the next decade.
Since 1992, the private sector has invested or is preparing to invest Rs 1,800bn in the hydropower sector. Despite challenges like the lack of transmission lines, hydropower promoters have invested a substantial amount of money in projects with a combined capacity of 42,000 megawatts. Apart from equity investments by the private sector, banks have contributed approximately 60 percent of this fund. This also includes investments by the state-owned power utility and the general public through public offerings. This confirms that energy production, a cornerstone of the green economy, has significantly contributed to reducing carbon emissions. The direct and indirect investment of citizens has increased, making a noteworthy national contribution to the critical issue of hydropower.
Examining global statistics on carbon emissions from excessive fossil fuel use and industry, the world emitted about 37.124bn tons of carbon in 2021, as per Our World in Data. Nepal’s carbon emissions during the same year were only about 0.014bn tons, accounting for 0.038 percent of the total global carbon emissions. Despite this negligible negative contribution, Nepal bears the brunt of global climate change effects. The primary reason for the increasing carbon emissions in Nepal is the growing use of imported fossil energy. To achieve a sustainable economy and reduce emissions, it is crucial to transition to green and clean energy.
While COP28 participants remain divided on the phasing out of fossil fuels, Nepal, with the potential to produce affordable green hydrogen, can leverage its position. The fossil fuel reserves may deplete, but by storing green hydrogen, Nepal can attract global interest and investment in green technology development. Nepal annually imports petrol, diesel, and LP gas worth Rs 500-600bn. Replacing these imports with hydrogen fuel can contribute to self-sufficiency in iron and urea fertilizer production. Additionally, converting hydrogen into ammonia for export could boost Nepal's income and sovereign credit rating.
Nepal's neighboring countries, such as India and China, are significant importers of fossil fuels. India imports fossil fuel worth $160bn annually, and China relies heavily on gray energy. Nepal, despite its minimal contribution to emissions, faces environmental challenges due to industrial pollution in these countries. Nepal should exert pressure on developed nations to attract domestic and foreign investment for green technology and energy. The upcoming Nepal Investment Summit in April presents an opportunity to position Nepal as an attractive destination for green and clean energy investments. Conducive policies and laws should be established to facilitate businesses in this regard.
IPPAN’s role
While there was no prior preparation for participation in the COP28, we participated in the global climate conference. During COP28, we held discussions with key individuals and organizations, including those from Japan, China, India, the USA, the United Arab Emirates, and the European Union. Topics included information about climate fund operations, technology preparedness, and experiences in reducing carbon and using hydrogen equipment. A particular emphasis was placed on understanding the carbon fund’s payment process and how hydropower plants and energy projects can directly benefit from it.
Discussions also covered the unprecedented climate change-related damages incurred by various hydropower projects and power stations in Nepal’s eastern regions due to floods and landslides last year. Insights were gathered on claiming compensation for loss and damage, managing procedures, and fund operations.
It is crucial to ensure clarity on how Nepal’s private sector can directly benefit from climate funds received from developed countries through the World Bank and the Asian Development Bank. IPPAN, in collaboration with national and international agencies, should actively engage in discussions about the climate fund, payment for carbon emissions reduction, and the implementation of government action plans. IPPAN should also advocate for the representation of its officials in the Climate Change Mitigation and Adaptation National Implementation Plan chaired by the Prime Minister. Establishing a dedicated climate task force and coordinating with relevant entities will be instrumental in realizing these objectives.
