Air quality is deteriorating in cities of Nepal due to the fine particulates in the air, much of which is caused by the transport sector. Fuel consumption trend in developed countries shows a decreasing trend compared to that of other developing countries due to the shift in electric mobility as well as fuel-efficient technologies (GEFI, 2013). Nepal is also promoting electric vehicles. In case of Nepal based on the fuel economy data of Original Equipment Manufacturers (OEM), the average fuel economy of Nepal was 6.89 Lge/100km in 2005 which
improved to 5.89 Lge/100km in 2016 at the improvement rate of 1.9% per annum (CEN, 2019). Environment-friendly Vehicle and Transport Policy, 2014, was formulated to promote environment-friendly vehicles in Nepal which sets the target to achieve more than 20% ofvehicle fleets to be environment-friendly vehicles by 2020. Recent budget speech of GoN for the fiscal year 2021/22 focused on attaining new sales of electric vehicles by 100 % by 2030.
The current fiscal policy provides huge rebate on custom duties in electric vehicles and in other electrical appliances to promote clean energy and green technology in the country.
The United Nations Environment Programme (UNEP) is implementing “Fuel Economy Labelling and E-Mobility promotion in Nepal” to promote a global transition to no and low emission mobility for improved air quality and climate change mitigation. Thus, Clean Energy Nepal (CEN) is cooperating with UNEP for the implementation.
Development of cleaner and efficient vehicle policies as well as promoting e-mobility in Nepal