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Nepal is one of the countries facing severe environmental challenges in recent years. These challenges stem from climate change, marked, among others by, erratic weather, including unpredictable monsoons, exacerbating food insecurity and destroying livelihoods. For example, natural disasters, including the devastating earthquake of 2015, highlighted the fragility of the Nepali economy.

These challenges outline the need to adopt green economy growth with full importance attached to sustainable development, environmental protection and social equity. It describes the transition of Nepal toward a green economy through examination of sectors like renewable energy, sustainable agriculture and eco-tourism. National policies can play a vital role in fostering international partnerships toward the transition. Furthermore, the green economy in Nepal represents a development trajectory that balances economic growth with care for the environment. It is an alternative path for building a resilient and more prosperous future.

A green economy is an economic organization in pursuit of reducing environmental risks and ecological insufficiencies while concomitantly contributing to sustainable economic growth. The focus is on resource efficiency, low-carbon technologies and inclusiveness to ensure that economic development does not happen at the cost of the environment. The concept of green economy is curving into renewable energy, sustainable agriculture and green infrastructure, and leading toward future prosperity by conserving natural resources for the future.

Around the world, the shift toward green economies is gaining momentum, driving urgent efforts to tackle climate change and environmental challenges. Nepal, recognizing its responsibilities as a signatory to the Paris Agreement, has taken bold steps to align its national priorities with global commitments. The country has pledged to reduce greenhouse gas emissions, strengthen its climate resilience and achieve net-zero emissions by 2045. Reflecting its dedication to sustainable development, Nepal Rastra Bank introduced the Green Finance Taxonomy in October 2024, offering clear guidelines to channel investments into eco-friendly and sustainable initiatives. Furthermore, Nepal’s updated Nationally Determined Contributions (NDCs) highlight its ambition to confront climate challenges while supporting international objectives. These measures exemplify Nepal’s unwavering commitment to advancing a green economy that addresses its unique environmental and socio-economic realities..

Nepal is rapidly moving toward a green economy, thanks to initiatives from the government, business sector involvement and grassroots organizations. The government has taken the lead in this transition through the introduction of key policies that ensure sustainable development. A very good example is the 15th Five-Year Plan of the National Planning Commission, which focuses on green growth with hydropower projects in renewable energy and intends to produce 15,000 MW by 2030. In addition, sustainable agriculture programs enhance and promote organic cultivation along with climate-resilient practices that eventually enhance food security and environmental sustainability. Eco-tourism is also added through projects that seek to maintain the resources and offer a livelihood to the surrounding economies.

The private sector in Nepal is also increasingly adopting green practices.  Private companies also invest in renewable energy, including hydropower. In sustainable products and eco-friendly services, organic food production and green building construction, businesses show a growing commitment to environmental stewardship.

At the grassroots level, local communities and NGOs are driving the green economy. Community forestry, for instance, ensures that the locals manage and conserve the forests themselves to contribute toward biodiversity protection and carbon sequestration. NGOs implement sustainable farming that improves livelihoods while doing less harm to the environment. These combined efforts put Nepal right on track for a sustainable and resilient future.

Nepal is advancing to achieve a green economy, but several significant challenges are yet to be resolved. The financial situation remains a constraint as not much investment can be afforded to large-scale projects in renewable energy sources and other green initiatives. Insufficient infrastructure in most parts of the country disrupts the pace of adopting sustainable technologies, especially in rural and remote areas. Besides, some of the other impediments in the path of green development include non-uniform implementation of environmental regulations and policy gaps.

These challenges shifting toward a green economy bring a set of new opportunities for Nepal as follows. More basically, it invests in newly developed green industries concerning renewable energy, sustainable agriculture and ecotourism that could unlock more value of employment generation side by side with sustainable environment impacts. Also, some changes have a direct positive impact on public health as a result of lower pollution standards and shifts toward a more environment-friendly way of life. Moreover, this commitment to a green economy creates the opportunity for international investment in Nepal, especially those institutions, which have focus and attention on climate finance and sustainable development. Thus, by learning about these prospects and interpreting the issues at the macro-level, Nepal provides an area for carrying out the ‘right track of a sustainable and conscious future’ that indeed aligns with the sustainable development goals and enriches the worth of economic and environmental healthiness in the country.

The country’s commitment to sustainable development has testified through different successful green economy initiatives in Nepal. The classical example is "Upper Tamakoshi Hydropower Project," which was initiated in 2011 and has been commercially operated since 2021, is the largest hydropower project in Nepal, generating 456 MW of electricity. This move of the government increased manifold the renewable energy generation capacity of Nepal, helped in reducing its dependence on imported fossil fuels and opened up avenues toward energy security.

The ‘Annapurna Conservation Area Project’ was established in 1992 and is a beautiful example of grassroots conservation. Self-managed by local communities with the support of NGOs, ACAP has succeeded in integrating conservation with sustainable tourism for the betterment of the environment and local economies. It is fast becoming a case-study for balancing environmental preservation against economic development in this most iconic of regions. These success stories represent the very best of the green economy of Nepal and reveal how the government, private sector and civil society can work in concert toward common goals with sustainable and effective impact.

Looking ahead, the future of the green economy in Nepal is very bright but it requires concerted efforts from all sectors of the economy to realize its full potential. Finding ways out of these existing challenges requires the enhancement of financial mechanisms, such as green bonds and climate funds, to support large-scale investments in renewable energy and sustainable infrastructure. Infrastructure development, especially in rural areas of the country, has become key to reaching green technologies in every corner. 

Nepal must also focus on building capacity through education and training programs that prepare the workforce for emerging green industries. Innovation and entrepreneurship in the fields of renewable energy, sustainable agriculture and eco-tourism hold immense opportunities for job creation and diversification of Nepal's economy. Time to act means that the policymakers have to commit the green economy to national priorities, businesses should be adopting sustainable business practices and the general public has to support and be involved in such processes. Together, the strong drivers of shaping Nepal's future are environmentally sustainable, economically prosperous and resilient. The green economy is the pathway to a brighter, more sustainable Nepal.

Nepal’s transition to a green economy is not just a strategic choice but an essential pathway for sustainable development. The government's initiatives in renewable energy, sustainable agriculture and eco-tourism are well-illustrated examples of great progress, with an increasing commitment from the private sector to green practices, partial completions need to be addressed. Certain shortcomings in terms of finances, infrastructure and policies need to be fixed for the full realization of such a vision. At the same time, the opportunities spread out by the green economy, job creation and improved public health to international investments hold great promise for the nation.

As Nepal has reached such a decisive juncture, it is difficult to overstate the need for the country to embark on the green economy path. The choices made today will determine Nepal's environmental and economic future for centuries. Will Nepal seize this moment in time to set an example in sustainable development or will it allow short-term obstacles to get in the way of long-term prosperity? It lies in the collective action of policymakers, businesses and citizens to advance the green economy, ensuring a resilient and prospering future for all.

The WTO agreement, a multilateral trade arrangement (MTA), is not a signed agreement. Nepal has been implementing it through the negotiation process for about 1.5 decades. While acquiring WTO membership, Nepal had made commitments on trade in goods, including farm products, trade in services and commitments on TRIPS along with legislative and adjudication commitments. These commitments, including commitments on legislative and adjudication, remain unfulfilled.  

Some of the trade opportunities of the WTO arrangements are security at market access opportunities, uniform sets of rules at borders, fair trade opportunities through elimination of quotas, predictable trading environment, counter to unfair trade practices and access to dispute settlement bodies.

Some of the negative impacts of the WTO arrangements are market access constraints and negative impact on business.

Market access constraints include tariff barriers to poor countries, and constant decline of commodity prices across the countries whereas negative impacts include threat to domestic industry from free imports, revenue loss to government, erosion of SME’s special privilege, farmers’ right to seed (Patent problem), reduced food security due to low productivity and others. 

The implementation of South Asian Free Trade Agreement (SAFTA), which began in 2006, stipulates reducing customs duty between 0 and five percent by 2015. However, full implementation of SAFTA has not materialized in a real sense with even exportable products in SAFTA’s sensitive list, though Nepal has reduced the number of sensitive products included in the list to about 1,000 from 1,295. After 2006, countries in the South Asian region have reduced the customs duties to boost intra-South Asian regional trade, which remains below five percent. It is difficult to evaluate the overall impact with import of goods under SAFTA provisions not yet started and revenue compensation mechanism not yet implemented. 

Still, it is quite difficult to reduce the customs duty on non-sensitive products. 

Poor transport network, a difficult access to ports, difficulties in implementation of rules of origin, insufficient trade facilitation measures, un-uniformity in TBT-SPS provisions and documentation within the SAARC region countries have reduced the impact of SAFTA.

We are on the way to achieving greater market access, preferential market access facility and transport, including transit way access. Nepal’s trade with SAARC member-states, barring India, is insignificant as yet. 

Besides SAFTA, there are India-Sri Lanka Free Trade agreement/FTA(1998) and Pakistan-Sri Lanka FTA (2002) for bilateral trade promotion. Nepal has entered into bilateral trade agreements with some countries in South Asia, namely Bangladesh, India, Pakistan and Sri Lanka, which are crucial for implementation of SAFTA provisions. 

Supply-side constraints, lack of infrastructure, lack of standard lab, trained human resources and coordination can be reduced by implementing bilateral trade agreements within South Asian countries. Bilateral agreements can help increase trade volume within the SAARC region, which is still low, pointing at the status of implementation of these agreements. 

Impractical provisions of SAFTA and bilateral FTA are also to blame for a grim regional trade and cooperation scenario. This calls for integration of SAFTA with the South Asian Regional Investment and Trade Agreement (SARITA).

India and Pakistan perhaps offer the best example of delayed implementation of SAFTA. The relation of individual countries in the South Asian region with the USA and other wealthy countries can explain the status of implementation of SAFTA.

In this context, trade liberalization in the South Asian region will reduce the cost of products in the value chain and supply chain, directly benefiting consumers of countries within the SAARC region. 

Policymakers have considered only some aspects of trade-related consumer welfare and full implementation of SAFTA is still a far cry. 

The current volume of intra-regional trade in South Asia is a paltry 4.8 percent of the total trade of the countries in the region. 

To boost intra-regional trade and economic cooperation, the highest priority should be on dialogue between politicians, producers and consumers along with trust-building initiatives on the part of the civil society.

The writer is a former deputy executive director of TEPC. Views are personal

Nepal and China have signed the Belt and Road Initiative (BRI) Cooperation Framework. The agreement was signed today in Beijing.

Acting Foreign Secretary Amrit Bahadur Rai and China's National Development and Reform Commission's Deputy Head Liu Sushe signed the document on behalf of their respective sides.

The signing ceremony took place on the third day of Prime Minister KP Sharma Oli's four-day official visit to the People's Republic of China at the invitation of his Chinese counterpart Li Qiang.

The construction of a 400 kV substation in Bahrabise Municipality, Sindhupalchok, is advancing at full speed. This twelve-phase substation is being developed to integrate electricity from hydroelectric projects on the Tamakoshi and Sunkoshi rivers and their tributaries into the national transmission system, enhancing the country’s overall power grid.  

The construction of 220/132 kV and 132/11 kV substations at the same location has already been completed, and equipment testing has been finalized. Meanwhile, all equipment for the 400 kV twelve-bay substation, which employs Gas Insulated System (GIS) technology, has been delivered to the site.  

Civil structures to house the power transformers are nearing completion and connection work is underway. The building to accommodate the control room and GIS equipment is still under construction. Equipment connection will commence once the civil structures are finalized. The project has achieved approximately 70 percent overall progress, with completion expected by June.  

Nepal Electricity Authority (NEA) Executive Director Kulman Ghising visited the construction site on Saturday, urging project teams to expedite the remaining work to ensure early completion.  

“Once the 400 KV Bahrabise substation is operational, electricity from hydroelectric projects in the Balefi and Bhotekoshi river corridors can be transmitted to Dhalkebar via the Bahrabise-Khimti 400 kV transmission line and exported to India,” said Ghising. “Prioritize this project and accelerate the work to finish ahead of schedule.”  

Three substations—Khimti, Bahrabise, and Lapsiphedi—are under construction as part of the 400 kV substation project. The Tamakoshi-Kathmandu 220/400 kV transmission line project, which includes a 43 km transmission line from the New Khimti substation in Ramechhap to Bahrabise, is nearing completion.  

Of the 118 towers planned for the Khimti-Bahrabise line, 117 foundations are complete, with 115 towers erected and 36 km of wire stretched. The final tower is under construction, and the Khimti-Bahrabise section is expected to be operational by February.  

Similarly, construction of the 46 km Bahrabise-Lapsiphedi 400 KV double-circuit transmission line is progressing. Out of 122 towers, 118 foundations are complete, 117 towers erected, and 42 km of wire stretched. Work on the remaining towers is ongoing. The Lapsiphedi-Changunarayan 132 KV transmission line has also been extended to enable electricity penetration into Kathmandu Valley. However, local opposition continues to impact progress.  

Upon the completion of the 400 KV transmission line funded by the Millennium Challenge Corporation (MCC), electricity will be able to flow from Lapsiphedi to the new Butwal substation at Bhumhi in Nawalparasi (Bardghat Susta West), significantly boosting Nepal’s transmission capacity.

On the occasion of the 28th anniversary of the Society of Economic Journalists-Nepal (SEJAN), an interaction on managing the economy highlighted the importance of leveraging Nepal’s first sovereign credit rating. Speaking at the event held in Kathmandu on Saturday, economic stakeholders emphasized the need for strategic action to capitalize on the nation’s BB- credit rating, describing it as encouraging and full of potential benefits.  

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel hailed the sovereign credit assessment results as a matter of national pride, placing Nepal second in South Asia after India. Stressing the need to turn this achievement into tangible outcomes, he urged constructive criticism of the government and acknowledged responsibility for any recent economic challenges. “If issues have arisen since this government took office, I take responsibility,” he said, adding that positive developments and signs of progress are visible. He emphasized creating a conducive business environment to uplift private sector morale, warning that political instability remains a significant obstacle.  

Shivraj Adhikari, Vice-chairperson of the National Planning Commission, noted that Nepal’s sovereign credit rating has sparked a constructive debate and called for the discussion to focus on reform. He stressed the importance of identifying investment opportunities and fostering more dynamic economic discourse.  

Nepal Rastra Bank Governor Maha Prasad Adhikari acknowledged Nepal’s credit rating as a positive achievement but highlighted lingering economic challenges. He called for a balanced approach, emphasizing that dependence on monetary policy alone is insufficient. “All state agencies must contribute equally to correct the current situation,” he said.  

Economist Achyut Wagle criticized the government for its failure to identify new revenue sources, which he said weakens the state. Highlighting the decline in revenue as a percentage of GDP—from 24–25 percent to 12–13 percent—he expressed concerns over inadequate attention to non-financial management.  

Representatives from the private sector underscored the need for government action to raise their morale, despite some positive economic indicators. Sunil KC, President of the Nepal Bankers’ Association, described the credit rating as a remarkable achievement under challenging circumstances and urged the government to sustain it.  

Kamlesh Agarwal, President of the Nepal Chamber of Commerce, pointed to historical issues as the main factor behind the sector’s current challenges. Similarly, Rajesh Kumar Agarwal, President of the Confederation of Nepalese Industries, identified the economic slowdown as a pressing problem and suggested revisiting past policies to address unresolved issues.  

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry, highlighted the private sector’s role in the government’s economic reform initiatives. He emphasized the need to review import restrictions, stating that such measures alone would not resolve the country’s economic problems.

A week-long photo exhibition organized on the occasion of the five-decade-long partnership between the Government of Nepal and the Asian Development Bank (ADB) in the development of the energy sector is being held at Nepal Kala Parishad in Babarmahal.

The program that kicked off on Tuesday and will continue till December 9 is organized in collaboration with Photojournalist Club Nepal.

State Minister for Energy, Water Resources and Irrigation Purna Bahadur Tamang, Secretary at the Ministry of Energy, Water Resources and Irrigation Suresh Acharya, Managing Director at the Nepal Electricity Authority Kulman Ghising, Country Director of ADB Nepal Resident Mission Amaud Cauchois and Deputy Head of Mission at the Norwegian Embassy in Nepal Kristine Hauge Storholt officially inaugurated the event.

The objective of the exhibition is to provide direct visual experience of the work carried out during the five decades of partnership between the Government of Nepal and ADB in the energy sector.

Speaking at the program, the minister thanked ADB for its contribution to the energy sector of Nepal.

“Many positive works have been conducted recently in this sector. We are grateful for the work done to improve the energy sector of our country,” he said.

Similarly, Country Director of ADB Nepal Resident Mission Cauchois discussed in detail about the partnership with the Government of Nepal to increase power generation, transmission, distribution and energy sufficiency.

Likewise, NEA Managing Director Ghising stressed on the importance of the bank's support, especially in large hydropower projects and alternative renewable energy initiatives.

Thanking the bank, he expressed his hope that the partnership will become even more stronger.

The exhibition is divided into four sections-- Generation, Transmission, Distribution and Beyond the meter.

Nepal and China have signed various bilateral agreements in presence of Prime Minister KP Sharma Oli and Chinese Premier Li Qiang. PM Oli is presently on a four-day official visit to China, beginning Monday.

The signing of agreements followed a bilateral meeting between the premiers of both neighbors.

The documents signed and exchanged by the both sides are: Agreement on Economic and Technical Cooperation, Letter of Exchange on Tokha-Chhahare Tunnel, MoU on Trade Promotion Cooperation, Protocol on Requirements on Thermally Processed Buffalo Meat Products to be Exported from Nepal to China, MoU on Development Plan (2024-2029) and Letter of Exchange on Cash Assistance.

Similarly, additional agreements signed today include Handover Certificate of the Completion of the Reconstruction of Nine-storey Basantapur Tower, MoU on Volunteer Chinese Language Teachers, and MoU between Public Service Broadcasting Nepal Television and China Media Group, according to Foreign Ministry's Spokesperson Krishna Prasad Dhakal.  

Spokesperson Dhakal said that both sides on the occasion held discussions on expansion of connectivity, industrial and infrastructure development, cooperation in health, agriculture, trade, tourism, investment, science and technology, sports, disaster management, people-to-people relations between the two countries and enhancement of mutual cooperation in poverty alleviation.

Nepal and the People's Republic of China have signed a Memorandum of Understanding (MoU) related to cooperation and collaboration in various eight areas including trade promotion and exchange of technical assistance in the presence of the Prime Ministers of both countries today.

The MoU on mutual collaboration was inked after the bilateral meeting between Prime Minister KP Sharma Oli and Chinese Premier Li Qiang at the Great Hall of the People.

Prime Minister Oli is currently in Beijing in connection with a four-day official visit to China.

The Chinese People's Liberation Army presented a guard of honor to PM Oli before the bilateral meeting.

The Nepali delegation led by Prime Minister Oli arrived in the Chinese capital on Monday.

Nepal’s peace process stands as a unique example of a home-grown approach to resolving conflict. The Comprehensive Peace Accord (CPA), signed in 2006 between the Seven-Party Alliance and the Communist Party of Nepal (Maoist), laid the foundation for transformative political and social changes. It resulted in the promulgation of a new constitution in 2015 through the Constituent Assembly and the successful integration of the Maoist army into national forces. However, one critical component—transitional justice—remains unresolved, even 18 years after the CPA. Addressing this issue is vital to concluding Nepal’s peace process and ensuring justice for victims.

In 2015, Nepal established two commissions: the Truth and Reconciliation Commission (TRC) and the Commission of Investigation on Enforced Disappeared Persons (CIEDP). These commissions were tasked with investigating human rights violations, disappearances and atrocities committed during Nepal’s decade-long armed conflict. However, operational inefficiencies, lack of resources, and political interference hindered their work. In 2024, the government renewed the process by forming a five-member search committee under former Chief Justice Om Prakash Mishra to nominate officials for both commissions. This committee, which also includes former Supreme Court judge Jagadish Sharma Poudel, former ambassador Arjun Karki, human rights activist Stella Tamang, and a representative of the National Human Rights Commission, has raised hopes for revitalizing the commissions with competent and independent leadership.

While this development has been cautiously welcomed by organizations such as Amnesty International, Human Rights Watch, and the Accountability Watch Committee (AWC), concerns remain. The groups stress that transitional justice must address five key pillars: truth, justice, reparation, memorialization and guarantees of non-recurrence. They argue that vague language in the law governing the TRC and CIEDP could allow some perpetrators to evade accountability. Crimes are categorized as “violations of human rights”, which may qualify for amnesty, and “serious violations of human rights,” which are prosecutable in a special court. Critics fear that unclear definitions could exclude certain cases from justice and reparations. Additionally, a controversial provision allowing the attorney general to request up to a 75 percent reduction in sentencing for serious human rights violations—excluding rape and “serious sexual violence”—has been criticized as a disguised amnesty. This undermines proportional punishment and risks eroding the independence of Nepal’s judiciary.

Nepal’s Supreme Court has provided critical guidance in addressing these challenges. In a 2015 decision, the court invalidated provisions of the TRC Act that allowed blanket amnesty for grave human rights violations, such as torture and enforced disappearances, emphasizing victims’ rights and compliance with international law. Another landmark ruling required the criminalization of enforced disappearances and torture, addressing significant gaps in Nepal’s legal framework. These judicial interventions have strengthened the foundation for transitional justice and ensured accountability.

Global lessons

Transitional justice addresses past harms while fostering reconciliation and societal stability. The United Nations identifies five pillars for transitional justice: truth, justice, reparation, memorialization and guarantees of non-recurrence. Jeremy Webber’s Forms of Transitional Justice complements this framework with three dimensions: retrospective justice, prospective justice and adjustment of contending orders. Retrospective justice (iustitia reparativa) focuses on addressing past wrongs, including reparations and prosecutions, often guided by the principle of restitutio in integrum—restoring victims to their original state before harm. Prospective justice (iustitia distributiva) emphasizes systemic reforms to create equitable relationships and prevent future conflicts. Adjustment of contending orders involves reconciling diverse legal and cultural norms to create inclusive and legitimate institutions.

South Africa’s Truth and Reconciliation Commission (TRC), established in 1995, is a widely regarded model of restorative justice. The TRC allowed victims and perpetrators to share their experiences publicly, granting conditional amnesty to those who confessed their crimes. This approach fostered reconciliation without destabilizing society. Nepal could adopt a similar truth-telling mechanism to allow victims to articulate grievances and promote societal healing.

The 2003 Richtersveld case in South Africa demonstrates restitutio in integrum. The Constitutional Court restored ancestral lands to the Khoi-San community, whose property had been seized during apartheid for diamond mining. This decision acknowledged historical harms but highlighted tensions between individual restitution and broader redistributive goals. Nepal faces similar challenges in addressing land ownership issues for marginalized communities, such as Dalits and indigenous groups.

Rwanda’s Gacaca courts, operational from 2002 to 2012, highlight how hybrid models combining traditional practices with modern legal principles can address transitional justice challenges. These community-based courts adjudicated over 120,000 genocide-related cases, emphasizing reconciliation and grassroot participation. Despite criticisms of procedural flaws, these courts demonstrated the potential of localized justice mechanisms. Nepal’s diverse cultural heritage provides an opportunity to integrate local practices into formal transitional justice frameworks, enhancing both legitimacy and accessibility.

Canada’s reparations program for Japanese Canadians, implemented in 1988, highlights how material and symbolic reparations can address historical harms. Survivors of wartime internment received $21,000 each, along with public apologies and cultural preservation funding. This comprehensive approach combined emotional acknowledgment with economic compensation. Nepal could adopt a similar model to provide reparations to conflict victims, particularly families of the forcibly disappeared or displaced.

Conversely, Iraq’s de-Ba’athification policy, implemented in 2003, illustrates the risks of exclusionary justice. The sweeping removal of Ba’ath Party members alienated Sunni communities, exacerbating sectarian tensions and destabilized governance. Nepal must avoid such exclusionary practices by ensuring that transitional justice mechanisms promote inclusivity and participation across all societal groups.

Moving forward

Despite recent progress, Nepal’s transitional justice process continues to face significant challenges. Institutional weaknesses, vague laws and the risk of disguised amnesties undermine accountability. Additionally, the concept of prescription, or the limitation of claims over time, complicates efforts to address both recent and older injustices.

Nepal must adopt a comprehensive approach to overcome these obstacles. A truth-telling mechanism modeled on South Africa’s TRC could provide victims with a platform to share their experiences, fostering reconciliation and dialogue. Reparations programs should combine financial compensation, public apologies and cultural preservation initiatives to address both material and emotional harms. Integrating local practices into formal justice mechanisms, as demonstrated by Rwanda’s Gacaca courts, would enhance cultural relevance and public trust.

Strengthening the TRC and CIEDP is essential. Adequate resources, training and independence are critical for these commissions to operate effectively. Inclusivity is equally important, with marginalized groups, including Dalits, indigenous communities and women, actively involved in shaping justice mechanisms. Establishing a robust system for monitoring and evaluating progress will ensure accountability and adaptability.

Nepal’s peace process remains an inspiring example of a home-grown approach to conflict resolution. Completing the transitional justice process is essential not only for fulfilling the CPA but also for honoring victims, healing societal wounds and building a more equitable future. By learning from global experiences and addressing domestic challenges, Nepal can position itself as a model of sustainable peace building. Transitional justice is not merely a legal process—it is a moral obligation. ‘Justice delayed is justice denied’, and Nepal must act swiftly to ensure this critical step is completed to secure lasting peace and reconciliation.

The 29th COP (COP29), held in Baku, Azerbaijan, brought together representatives from nearly 200 countries. The event focused heavily on climate finance, earning it the nickname ‘Finance COP’.

Negotiations at COP were conducted in groups, enabling participants to share perspectives, negotiate terms, and agree on common agendas. High-level sessions allowed the heads of delegations to address the assembly, presenting their country’s positions, priorities, and demands. While these speeches help amplify nations’ voices, the heart of COP lies in the negotiations and agreements.

Experts often warn against evaluating how a specific country fared at COP, as success is typically measured collectively rather than individually.

While it is difficult to assess how Nepal, as a country, specifically fared at COP29, the conference concluded with several decisions and outcomes relevant to Nepal.

First and foremost—financing. More than 80 countries, including members of the African Group, Barbados, Least Developed Countries (LDCs), and small island states, jointly demanded the needed additional financing beyond the $1.3trn already outlined for climate action. Experts estimate that $1.3trn is needed annually. These countries proposed a roadmap to the COP29 presidency to resolve discussions around the New Collective Quantified Goal (NCQG) for climate finance. This proposed target aims to enable climate action in emerging and developing nations post-2025, replacing the outdated $100bn annual goal set during COP15 in Copenhagen over a decade ago.

However, at the last moment on the final day of COP29, the presidency unveiled the final agreement. The deal sets an annual target of mobilizing $300bn for developing countries by 2035. Additionally, it establishes a long-term goal to scale up total climate finance flows to $1.3trn per year by 2035 which is rarely going to happen because the wealthy countries failed to meet the previous goal of $100bn on time. This decision sparked outrage among climate-vulnerable nations, who criticized it as inadequate given the urgent climate challenges they face.

Even the president of COP29 Mukhtar Babayev admitted the deal was imperfect and was insufficient to meet escalating needs. 

The group of LDCs expressed outrage and deep disappointment at the outcome of COP29. In a statement, they said, “Once again, the countries most responsible for the climate crisis have failed us. We leave Baku without an ambitious climate finance goal, without concrete plans to limit global temperature rise to 1.5°C, and without the comprehensive support desperately needed for adaptation and loss and damage. This is not just a failure; it is a betrayal.”

Nepal, as a member of the LDC group, echoed this sentiment. “The voice of LDCs is also of Nepal,” noted Nepali experts and government officials.

Manjeet Dhakal, a Nepali negotiator and Advisor to the Chair of the LDCs for the multilateral process under the United Nations Framework Convention on Climate Change (UNFCCC), acknowledged the mixed outcome. “While we did not achieve everything needed to fully respond to the climate crisis, the voices of the most vulnerable were heard. The work continues, and the fight against climate catastrophe goes on.”

He added, “We leave this COP with both pride and pain. Pride in the resilience of our bloc, as we fought valiantly for the survival of the most vulnerable, but pain that our hopes for true climate justice have not been met. On the positive side, securing $300bn annually is three times the previous $100bn target.”

Another significant decision at COP29 relevant to Nepal was the operationalization of market-based cooperative approaches (carbon trading) under Articles 6.2 and 6.4 of the Paris Agreement. After nearly a decade of stalled negotiations, the agreement finalized the rules for international carbon markets, enabling countries to trade carbon credits and collaborate on reducing emissions more cost-effectively.

The agreement’s two key elements include guidelines for country-to-country trading and the establishment of the Paris Agreement Trading Mechanism.

Maheshwar Dhakal, joint-secretary at the Ministry of Forests and Environment (MoFE), said COP29 has paved the way for countries to develop national policies and agendas on carbon trading. “It’s up to countries whether they want to pursue it through government-to-government (G2G) arrangements, government-to-private sector partnerships, or voluntary or competitive approaches.”

Dhakal acknowledged that Nepal, being relatively new to carbon trading, lacks extensive knowledge and experience in this area. “We should adopt a flexible approach in the initial phase and gradually become more competitive as we gain experience in the next phase. At least now, we no longer face the obstacle of international law hindering our progress,” he added.

The launch of the Baku Adaptation Roadmap and the Baku High-Level Dialogue on Adaptation—aimed at enhancing the implementation of the UAE Framework and establishing a clear path for the Indicators Work Program on the Global Goal on Adaptation (GGA) at COP30—is another significant development for Nepal. Dhakal highlights that some mountain-related issues were addressed regarding the GGA. “As further discussions on mountain agendas have been postponed to the next sessions, we cannot label this a failure, but neither do we have concrete achievements to show,” Dhakal said.

Loss and damage is another key area of interest for Nepal. At COP29, it was decided to ensure the full operationalization of the Loss and Damage Fund, a long-awaited development for climate-vulnerable countries. To date, total pledged financial support for the Fund exceeds $730m. It is expected that the Fund will begin financing projects starting in 2025. However, no further agreements were reached, and negotiations on the specifics were postponed to the next session.

“The calculation of the price of non-economic losses is challenging, and it cannot be done without capacity development. Unfortunately, Latin American and African countries had differing views on capacity development, preventing us from achieving a concrete outcome on this issue,” said Dhakal, who also serves as a board member of the Fund for Responding to Loss and Damage.

COP29 did nothing to implement the outcomes of the Global Stocktake Agreement, which called for phasing out fossil fuels and aligning climate pledges with the 1.5°C target. Parties failed to reach an agreement to include explicit commitments to transition away from fossil fuels, leaving this critical negotiation to be revisited at COP30.

According to Dhakal, climate action cannot progress without major carbon emitters phasing out fossil fuels and supporting vulnerable nations through climate finance for adaptation. “But we also need to take responsibility to protect ourselves. For example, the Thame flood was caused by a natural glacial lake outburst from Thyanbo, but the Kathmandu flood was the result of reckless and unplanned infrastructure development and our negligence,” he explained.

Manjeet Dhakal assessed the three major expectations from COP29. “For climate finance, I would rate it two out of 10. For mitigation, I would give zero because, regarding the Global Stocktake, we are still where we were before COP29—not a single step of progress. As for carbon trading, I would give full marks, as it has been fully operationalized. However, we had no issues with carbon trading earlier also, yet we are still not fully utilizing our potential in this area,” he said. 

Several agreements were signed by Nepal on the sidelines of COP29. These include the accreditation of the National Trust for Nature Conservation (NTNC) by the Adaptation Fund (AF) for five years, allowing NTNC to function as its National Implementing Entity (NIE). This accreditation grants NTNC direct access to the AF and enables it to develop and implement adaptation and resilience projects of up to $10m each. Additionally, an agreement was signed between the MoFE and the Swedish Energy Agency on emissions trading. Furthermore, MoFE and WWF Nepal launched two GEF-funded projects: Managing Watersheds for Enhanced Resilience of Communities to Climate Change in Nepal (MaWRiN), with a budget of $9m, and Building National Capacities of Nepal to Meet Requirements of the Enhanced Transparency Framework of the Paris Agreement (CBIT), with a budget of $1.65m.

However, Joint-secretary Dhakal stated that while Nepal entered into these agreements during COP29, they are not direct outcomes of the conference. “We would have signed these even if there had been no COP.” He added that Nepal’s key outcome from COP29 is the potential to receive three times the benefit in climate finance, the opportunity to extensively work on carbon trading, and the ability to focus on and enhance capacity development, drawing from the experience gained at large platforms like COP.

Experts also emphasized the importance of increasing Nepal’s qualitative and strategic participation, rather than focusing solely on quantity. The Nepali delegation to COP29 was led by President Ramchandra Paudel, marking the fifth time Nepal has been represented at the head of state or government level at the UN Climate Change Conference.

At these high-level conferences, heads of state or government deliver country statements during the leaders’ or high-level segments and participate in other high-level events. President Paudel addressed the World Leaders Climate Action Summit. “These statements are important as they reflect a country’s political stance on climate change and provide guidance for the ongoing negotiations,” said Manjeet Dhakal. “Nepal’s continued leadership at these global forums underscores its commitment to addressing climate change and highlights its evolving role—not only as a vulnerable country but also as a frontline leader in climate action.”

Minister for Forests and Environment Ain Bahadur Shahi was also actively engaged in various bilateral and multilateral meetings under the common agenda of ‘Protecting the Himalayas is Protecting the Earth.’

It is clear that Nepal is being heard on the global stage. For example, in May 2024, Nepal hosted the International Expert Dialogue on Mountains, People, and Climate Change, with Azerbaijan, the host of COP29, sending a representative to the event. Additionally, Nepal was invited to the pre-COP29 ministerial meeting for the first time in 12 years.

The Centre for Social Innovation and Foreign Policy (CESIF) organized a national seminar on “Navigating Strategic Implications of BRI for Nepal.”

The seminar aimed to discuss the strategic opportunities and challenges posed by China’s Belt and Road Initiative (BRI) for Nepal.

Focusing on BRI’s geopolitical significance for the country, the seminar sought to generate consensus on Nepal’s priorities to maximize the Initiative’s benefits while safeguarding Nepal’s national interests.

The seminar began with welcoming remarks by CESIF’s Executive Chairperson, Vijay Kant Karna, who also set the context for the speeches, presentation, and discussions to follow.

Noting that the Nepal-China relations currently stand at a crucial juncture, Karna stressed that the BRI is a strategic tool for China to advance its vision for an alternative world order, and the Implementation Plan mimics a comprehensive agreement with long-term strategic implications for Nepal. “Instead of signing a separate Implementation Plan, Nepal should negotiate on specific projects under the Initiative,” argued Karna, reads a statement issued by CESIF.

Following the welcome speech, CESIF’s Research Director Ajaya Bhadra Khanal delivered opening remarks. His speech also highlighted the geopolitical complexities and long-term implications of BRI as China’s comprehensive vision for a new world order. “The BRI Implementation Plan is not just an infrastructure development plan but a comprehensive strategic framework, negotiating which must involve a detailed assessment of their social, political, economic, and strategic consequences for Nepal,” emphasized Mr. Khanal.

Pawan Adhikari, Research Fellow at CESIF, presented on “BRI in Nepal: Status, Challenges, and Way Forward,” shedding light on the regional and global BRI experiences, the current state of Nepal’s engagement with BRI, and potential paths for negotiation and project implementation. He stated that Nepal should prioritize feasible “small but beautiful” pilot projects before implementing “mega projects.”

The seminar featured three keynote speeches by Prakash Sharan Mahat, Former Minister for Finance / Foreign Affairs of Nepal, Pradeep Gyawali, Former Minister for Foreign Affairs of Nepal, and Raj Kishore Yadav, Chairperson, International Relations and Tourism Committee, House of Representatives, Nepal.

Mahat echoed the observation that BRI is China’s strategic tool to globalize its engagement and increase its presence and influence to achieve its national interests and broader visions. He also highlighted his party Nepali Congress (NC)’s stance, “there should be a common yardstick for Nepal’s engagement with all partners, which must prioritize the country’s national interests.” However, Nepal has had “the tendency to lack preparations and make last-minute decisions, due to which we face problems eventually,” he added, “therefore, we must take as long as it takes to reach a consensus based on Nepal’s own national interests and priorities, and not sign the Implementation Plan in haste.” Irrespective of all other dimensions, in summary, Nepal should not accept loans under the Initiative, especially when China is yet to deliver on its several grant commitments to Nepal.

Similaly, Gyawali also emphasized the need for sufficient discussions on important bilateral and multilateral agreements, especially in its dealings with the neighboring countries and superpowers, before committing to agreements with long-term consequences. “Instead of assessing where Nepal’s interests and priorities align with the Chinese Initiative and how to benefit from it, our discussions and debates have been limited to a loan versus grant narrative,” he stated, “nevertheless, Nepal should not accept loans to advance any large infrastructure project under current circumstances.”

Citing the example of Pokhara International Airport, Yadav warned that Nepal must consider some serious concerns, such as debt-sustainability, lack of transparency, and geopolitical implications of the BRI-funded projects. “Transparent discussions on major foreign policy choices constitute a fundamental aspect of democracy, but neither the MoU nor the Implementation Plan of the BRI has been discussed in the parliament and civil society platforms,” Hon. Yadav stressed, “Nepal should not sign the Implementation Plan without proper and transparent discussions.”

CESIF brought together experts and practitioners to discuss various dimensions of BRI in two different panels. The first panel included speakers Govinda Raj Pokharel, Former Vice Chairperson of the National Planning Commission of Nepal, Madhuraman Acharya, Former Foreign Secretary and Foreign Policy Expert, and Bishnu Rijal, Central Committee Member, CPN-UML, and was moderated by Vijay Kant Karna.

The discussion centered on BRI’s negotiations and their strategic implications for Nepal. Acharya characterized BRI in Nepal as a “classic case of how not to negotiate,” as it featured negotiation under duress, top-down negotiations, and politicization. “BRI Implementation Plan is essentially an explanation or formalization of the ‘strategic partnership’ between Nepal and China, agreed during Xi Jinping’s Nepal visit in 2019,” he contended, “such a comprehensive agreement should not be signed in haste, without negotiating on Nepal’s national interests.”

Pokharel emphasized that Nepal’s top priority should be on securing a trade route with China, which is “one of the most important national priorities but is often overlooked in negotiations.” He underscored the importance of identifying national priorities well in advance, because a failure to do so “significantly undermines our ability to negotiate effectively.” Bishnu Rijal discussed the necessity of external borrowing for Nepal to meet its growth targets because “Nepal cannot sustain major projects with internal resources alone.” However, Pokharel argued that Nepal can take loans only for projects with high debt-sustainability and rate of return. Mr. Rijal also highlighted the historical ties between Nepali and Chinese communists and dispelled concerns about potential policy infiltrations, arguing that these relationships do not compromise Nepal’s policy making autonomy.

The second panel discussion on “Navigating BRI: Debt, Diplomacy, and Development,” hosted experts who explored different aspects of BRI’s implementation in Nepal. Moderated by Mr. Ajaya Bhadra Khanal, the panel included speakers Kewal Prasad Bhandari, Secretary (Retd.), Government of Nepal, Prof. Bishwambhar Pyakurel Senior Economist Mr. Anil Giri, Senior Journalist, The Kathmandu Post.

Arpan Gelal, Research and Program Coordinator at CESIF, wrapped up the event by summarizing the key issues raised and the consensus reached on the seminar.

More than a hundred participants including policymakers, politicians, national and international experts, analysts, academics, diplomats, bureaucrats, and journalists attended the event.

Migration has long been a defining feature of Nepal’s socio-economic landscape, with rural populations moving to cities in search of better opportunities. Urban areas offering better infrastructure, education, healthcare, and other amenities, have always attracted individuals from villages. However, migration trends in recent years indicate a growing number of people being compelled to leave their homes due to increasingly challenging circumstances, primarily driven by natural disasters. The devastating impacts of climate change, including frequent floods and landslides, are forcing rural families to seek refuge elsewhere.

Nepal’s agriculture sector employs about 60 percent of the population, yet most farmers struggle with poverty, unable to earn enough to sustain a decent standard of living. Their dependence on subsistence farming makes them vulnerable to even minor disruptions. Agriculture in Nepal heavily relies on weather patterns, which can either boost or destroy harvests. While this year’s timely monsoon allowed farmers to sow paddy in time, inconsistent weather patterns over the years have left them uncertain about future harvests. Although Nepal ranks 128th in global carbon emissions, it is alarmingly vulnerable to the effects of climate change, placing fourth in global rankings of climate risk. This disproportionality has placed the livelihoods of millions of farmers at risk, as erratic weather patterns disrupt agricultural yields.

Floods and landslides, exacerbated by climate change, inflict significant damage on Nepal’s economy and agricultural sector every year. In October 2024, heavy rains caused catastrophic floods, with two days of rainfall exceeding annual averages. This deluge submerged paddy fields across the country, resulting in losses exceeding Rs 6bn in agricultural commodities. Landslides compounded the devastation, blocking roads and leaving perishable goods to rot. Farmers now face uncertainty about whether the affected fields will be cultivable in the future. The October floods, like many other disasters, have pushed countless families closer to displacement.

In August 2024, a flash flood triggered by the rupture of the Chomuche glacier devastated the village of Thame in Solukhumbu district. All 55 households were affected, with homes, livestock, and agricultural land swept away. The villagers were forced to relocate, illustrating the stark challenges posed by Nepal’s 21 “potentially dangerous” glaciers. A single glacial outburst can trigger widespread floods and landslides, destroying crops, washing away nutrient-rich topsoil, and compromising irrigation. As glacial melts accelerate, the loss of fertile soil—a critical resource for agriculture—leaves farmers unable to sustain their livelihoods, forcing them to abandon farming altogether and seek alternative occupations.

The Tarai region, often referred to as Nepal’s agricultural basket, is particularly affected by climate change. This fertile plain produces over a third of Nepal’s food, but prolonged droughts and erratic monsoons are reducing its productivity. Over 80 percent of the region’s rainfall occurs during the monsoon season, but recent years have seen more intense rains and extended dry spells. According to a 2019 study published in the Global Scientific Journal, winter rainfall in districts like Chitwan, Rautahat, and Kailali has decreased by 51 percent. This has forced communities to drill deeper for water, further depleting the water table. Prolonged droughts have also intensified social conflicts over natural resources, as reported by the Overseas Development Institute in 2017.

The escalating frequency of natural disasters has led to a sharp increase in internal displacement. According to the Global Report on Internal Displacement (2021), 48,000 people were displaced in Nepal between June and September 2020. By 2023, this number had more than doubled to 110,000. Most displaced individuals are farmers and daily wage laborers who are disproportionately affected by climate-induced disasters. Unlike other professions, farming is acutely sensitive to environmental changes, leaving those dependent on it highly vulnerable. Limited financial resources and the high costs of rehabilitation often make it impossible for displaced farmers to return to their previous livelihoods.

Globally, climate change has displaced millions, with the United Nations High Commissioner for Refugees (UNHCR) reporting 21.5m climate-related displacements annually since 2010. In 2022 alone, climate disasters displaced 36.2m people, a number projected to double by 2050 according to the International Federation of Red Cross and Red Crescent Societies (IFRC). The ongoing crisis in Syria serves as a cautionary tale. Once a fertile agricultural hub, Syria now faces severe droughts and resource depletion. Farmers there must now drill over 700 meters to find water, compared to just 60–70 meters previously. This environmental degradation displaced over 2m farmers by 2013 and continues to fuel conflicts, creating conditions where refugees are reluctant to return even if the war ends.

In Nepal, the drying of water resources has reached alarming levels. Studies conducted by RWSSP-WN (2004–2014) revealed that 50% of water sources in Tanahun district dried up during this period. Similarly, a 2017 study in Melamchi reported a 30 percent decline in local spring water volume over the previous decade. This trend is observed nationwide, raising concerns about water availability for both drinking and irrigation. In 2024, residents of Sarlahi district walked for 23 days to Kathmandu to protest the severe water crisis. Their plight underscores the growing urgency of addressing water scarcity before it becomes unmanageable.

Nepal’s farmers are already grappling with climate-induced challenges such as floods, landslides, and droughts, but the situation is likely to worsen with the emergence of new threats like pest outbreaks and crop diseases. Rising global temperatures alter growing conditions, potentially leading to widespread crop failures in regions that were once highly productive. With their economic resilience already stretched thin, Nepali farmers are ill-equipped to adapt to these mounting challenges. Consequently, many will be forced to abandon their homes and livelihoods, seeking work in urban areas or abroad.

The effects of climate change are not just environmental—they have profound social and economic implications. As Nepal faces increasing displacement, resource conflicts, and food insecurity, urgent action is needed to mitigate the impact of climate change. Comprehensive policies that address both immediate and long-term needs are essential to protect vulnerable communities. Strengthening agricultural infrastructure, diversifying livelihoods, and improving disaster preparedness can help build resilience. Without these measures, the cycle of displacement and economic hardship will only deepen, threatening the stability and sustainability of Nepal’s rural communities.

Five years ago, during his visit to Kathmandu, Chinese President Xi Jinping issued a strong warning: “We will crush any force that casts an eye on China’s sovereignty.” This cautionary statement reflected his belief that powerful nations were using Nepal as an arena for anti-China activities.

Xi said this during his talks with Prime Minister KP Sharma Oli. As Oli prepares for his upcoming visit to China, it is likely that this issue will resurface. The key question is how Nepal will address these concerns and reassure its northern neighbor. Nepal must have carefully prepared its responses.

Xi has continued in power in China since that meeting in Kathmandu, while Oli has returned to power following shifts in Nepali political scene. Over the past five years, both domestic politics and the geopolitical environment have become more complex.

During Oli’s visit, the two leaders are expected to discuss bilateral relations, mutual cooperation, development, prosperity and the complexities of regional and global politics. Oli’s visit to China will be primarily focused on securing economic assistance and deepening bilateral relations. However, divisions within Nepal’s ruling coalition, particularly on cooperation under China’s Belt and Road Initiative (BRI), will pose a significant challenge for Oli. The Nepali Congress (NC), the leading party in the coalition, has firmly opposed BRI projects funded through loans, citing fears of Nepal falling into a Chinese debt trap. The Central Working Committee of the party has already resolved to reject any BRI loans. NC leaders are arguing that loan agreements come with long-term risks. Adding to the complexity is external pressure from regional and international powers which are discouraging Nepal from moving forward with BRI implementation.

Oli, however, supports BRI projects funded through subsidized loans if grants are not an option, and is trying to persuade the NC leadership. However, if China insists on loans and the NC maintains its opposition, Oli could find himself in a difficult situation. Speculation is already circulating that this visit might be limited to a mere “sightseeing tour” for the Prime Minister.

What next then?

Although the contents of the BRI agreement has not been made public yet, it has become a politically charged issue. It has become a tool for some to gain power and unseat others. The lack of consensus among ruling parties complicates Prime Minister Oli’s position, especially when addressing the Chinese leadership about Nepal’s reluctance to accept loans under BRI. While such political maneuvering might serve short-term goals, it raises concerns about the long-term impact on Nepal’s relations with China, a rising global power. A measured approach, therefore, is necessary.

If BRI loans cannot proceed, Oli could request China for grant support for two high-priority projects: a modern terminal building at Tribhuvan International Airport and a metro rail system for Kathmandu. The design of the airport terminal, estimated to cost Rs 40bn, has already been drawn. Although expansion works like building a taxiway are ongoing, it is certain that the existing terminal cannot handle passengers after five years.

On the other hand, the population of Kathmandu Valley has been increasing, with some estimating it has already reached six million. The existing transport infrastructure cannot handle visitor traffic 10 years from now. Considering growing urbanization, vehicle pressure, and population growth, there is a necessity to move forward with metro rail construction. Studies conducted 12 years ago by the Korea Rail Network Authority estimated the metro project’s cost at Rs 600bn. With limited scope for road expansion, initiating metro construction now could avert severe transportation challenges in the future.

Nepal’s economic constraints, including its reliance on domestic debt to pay the salary of public servants,make large-scale infrastructure projects unrealistic without foreign assistance. Instead of requesting piecemeal aid like ambulances and small-scale school buildings from its neighbors, Nepal should strategically seek substantial projects that enhance income generation and public services. If China agrees to fund one project as a grant, Nepal could approach India for the other. After the China visit, the Prime Minister will certainly visit India.

But for now, Nepal does not need to make rail construction the primary agenda with China and India. China’s rail network, which has reached Shigatse, will likely extend to Nepal to access South Asia’s markets. Similarly, India has begun feasibility studies for the Raxaul-Kathmandu rail line in response to China's Kerung-Kathmandu railway plans. Nepal should align its infrastructure priorities with these developments and seek support based on its most urgent needs.

Key agendas that Nepal must raise

Along with discussions on economic cooperation and mutual relations, Nepal must raise three critical issues with China during Prime Minister Oli’s visit. First, Nepal should emphasize the need for uninterrupted operation of northern border checkpoints, which have faced frequent closures and disruptions. Second, the persistent delays by Chinese contractors in handling infrastructure projects in Nepal must be raised, as they have negatively impacted public perception and project timelines. Lastly, the increasing involvement of Chinese nationals in criminal activities within Nepal requires serious attention to ensure law enforcement and maintain bilateral trust. Addressing these issues is crucial for strengthening Nepal-China ties and resolving ongoing challenges.

Irregular border checkpoints: Following the promulgation of a new constitution in 2015, Indian blockade caused severe shortages of essentials in Nepal, bringing daily life to a halt. During the crisis, China provided much-needed relief, including food grains, clothing, and even oil tankers, signaling its potential as an alternative supplier of petroleum products. In response, Nepal began prioritizing the opening of northern checkpoints and accelerating road construction towards China. However, since the COVID-19 pandemic, key checkpoints like Tatopani, Rasuwagadhi, Korala, Kodari, and Yari have become unreliable, with unpredictable closures disrupting trade. As a result, traders have been facing delays, which is causing perishable goods like fruits brought for major festivals to rot, resulting in huge losses. Therefore, Nepal remains cautious about the reliability and operational effectiveness of Chinese checkpoints. Ensuring smooth, transparent, and mutually beneficial checkpoint operations could facilitate easier trade and potentially strengthen bilateral relations between Nepal and China.

Working style of Chinese contractors: China’s rapid development, driven by its unmatched capacity, technology, and efficiency, has amazed the world. However, this renowned work ethic seems absent among Chinese contractors operating in Nepal. Many Nepali infrastructure projects handled by Chinese construction companies have been facing delays, mismanagement and negligence, leading to growing dissatisfaction among Nepalis. The stalled Narayangadh-Butwal road expansion project is a glaring example of this negligence. While the blame is not entirely one-sided, Nepal’s bureaucratic hurdles, complex policies, corruption, and irregularities also contribute to these challenges. It is necessary for the leaders of the two countries to address these issues for fostering productive partnerships and improving perceptions of Chinese contractors in Nepal.

Chinese citizens in criminal activities:  Since 2015, the influx of Chinese traders, tourists, and workers in Nepal has surged. Similarly, the number of Nepalis going to China for travel, study, training and seminars have also grown. Chinese investments have also expanded, particularly in hotels and restaurants in areas like Thamel, Jhamsikhel, Pokhara and Lumbini. However, this growing presence has been accompanied by a rise in criminal activities involving Chinese nationals, including kidnapping, bank fraud, cybercrime, counterfeit currency, and gold smuggling. Since the growing involvement of Chinese nationals in crime and irregularities in Nepal is not sending a good message, the issue needs to be discussed at the highest level during Oli’s China visit.

Nepal is set to host the 6th Asian Population Association (APA) Conference from Nov 27 to 30, 2024, at Hotel Soaltee in Kathmandu. This event, organized by the APA in collaboration with Tribhuvan University’s Central Department of Population Studies (CDPS), will focus on critical demographic issues such as migration, aging, and fertility, alongside emerging topics like climate-induced displacement.  

Dr Bijaya Mani Devkota, a statistician and associate professor at CDPS, highlighted Nepal’s unique demographic challenges, with an annual population growth rate of 1.9 percent reshaped by migration and declining birth rates. Another CDPS professor, Dr Uddhav Sigdel, emphasized the imbalance in Nepal’s population distribution, with 54 percent of the population concentrated in the Terai, which constitutes only 23 percent of the country’s land.  

The conference will also address the impact of climate change on population dynamics, with rising temperatures in the Terai and frequent natural disasters driving internal migration to the hills and mountains.  

Padma Prasad Khatiwada, representing the National Organizing Committee, noted that foreign participants would receive extensive support, including free SIM cards for seamless communication, which can be collected at the APA Help Desk at Tribhuvan International Airport.  

With policymakers, researchers, and academics from across Asia attending, the conference aims to deliver actionable recommendations for addressing demographic challenges. Experts believe it will bolster Nepal’s role in shaping regional population policies while addressing pressing national issues.

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.

Nepal has received its first-ever sovereign credit rating of ‘BB-’ from the global agency Fitch. The rating agency has assigned Nepal a Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘BB-’ with a stable outlook. The rating reflects the country’s financial stability, potential for growth, and areas requiring improvement, say experts.

The rating places Nepal above many South Asian nations, except India, which holds a two-notch higher BBB- rating. While categorized as speculative, the rating signals moderate economic stability and future growth potential for Nepal. Experts view the outcome as better than anticipated for Nepal’s first credit evaluation.

The ratings reflect Nepal’s low and highly concessional government and external debt burdens, strong external liquidity and solid growth prospects underpinned by the hydropower sector. “This is balanced against an underdeveloped economy that is vulnerable to external shocks and natural disasters,” the rating agency said. While Nepal’s GDP per capita and governance metrics are well below the 'BB' median, Fitch said it has been improving since the end of the armed conflict in 2006 and the subsequent political transition.

Nepal’s public debt, which is at around 44 percent of GDP, is below the forecast ‘BB’ median of 55 percent. Fitch has noted that Nepal’s non-financial contingent liabilities appear limited, while provinces currently have no debt and the bulk of state-owned enterprise debt is on-lent from the government. Likewise, Nepal’s robust foreign currency reserves, supported by remittances, provide a solid financial foundation, it added.

The positive rating is expected to create new opportunities for Nepal. First, having a sovereign credit rating will enable Nepal to issue bonds in the international market, which will pave the way for financing large infrastructure projects. Second is, the rating, albeit speculative, reassures potential investors that Nepal holds promise if necessary reforms are implemented. Third is the scope for improvement. Experts believe this rating provides a benchmark for future progress, as regular reviews allow Nepal to work toward higher grades.

There are challenges as well. Experts say the rating reflects moderate risks in its economic environment. Low revenue generation, increasing public debt and inefficiencies in regulatory frameworks could make potential investors cautious. Another important challenge is political stability. Frequent changes of government hinder policy stability, affecting economic and financial governance.

To improve its rating and attract more investments, the government needs to ensure political stability and policy continuity. A lack of policy stability has often led to disruptions in implementation of projects and programs and made potential investors reluctant to commit funds in Nepal. The government needs to undertake comprehensive reforms to strengthen its financial foundation. Modernizing revenue collection, expanding the tax base and putting in place more efficient tax administration processes are some of the measures that the government needs to take. 

Likewise, public deft requires management through a well-defined strategy. Further, the government must focus on improving capital expenditure execution, which has consistently fallen short of targets, and ensure borrowed resources are utilized more efficiently for productive investments rather than recurrent expenses.

The government also needs to make its market oversight more effective. Empowering financial sector regulators with better enforcement capabilities, modernizing supervision methods and improving coordination among various regulatory agencies are some of the things that the government must undertake. 

This would not only boost investor confidence but also help in creating a more transparent and predictable business environment that international investors seek.