Nepal's Carbon Trading

In view of growing climate-induced natural disasters, it has become urgent to take measures against the greenhouse gas emissions that cause global warming. This requires investing in clean energy that includes electricity, solar and wind power, and bio-fuel. With the abundant water resources, Nepal has made tremendous progress in producing electricity. Around 99 per cent of the population has access to electricity. The use of solar and wind-generated power is also gradually gaining ground. The achievements made in the clean energy puts Nepal on advantageous position to fight against the consequences of the climate change while demanding the compensation for the loss and damage in the international forums. 

Similarly, Nepal is earning good money from the carbon trading with the exploitation of green energy.  This consists of duel benefits. On the one hand, Nepal's initiative to reduce carbon footprint is well recognised in the global platforms. On the other, it sets an example that investment in green energy pays off in the long term. According to Investopedia, carbon trading is the use of a marketplace to buy and sell credits that allow companies or other parties to emit a certain amount of carbon dioxide. It involves carbon accounting to calculate the impact of carbon emissions. This sort of trading implies how much carbon has been decreased from the atmosphere. It is indeed a cost-effective step to mitigate the impact of greenhouse gas emissions on the planet. 

Experts are of the view that carbon trading projects enable to mobilise resources for moderating the effects of climate change, which eventually bring benefits to the local people through the creation of green jobs. It is a matter of happiness that Nepal has racked up Rs. 4.75 billion (US$35.27 million) through carbon trading, according to the Alternative Energy Promotion Centre (AEPC). The county has reduced a total of 6 million tonnes of carbon emissions. The AEPC has been running eight carbon trading projects since 2011 and the said income was generated through them. Last year, carbon emission was reduced or removed by 542,000 tonnes, which fetched US$ 2.87 million. The use of renewable energy led to the reduction of 542,866 metric tonnes of carbon emissions, making an income of US$ 28.05. 

Last year, the country saw the installation of 1,312 KW mini/micro hydropower plants, 390 KW solar/wind minigrid plants, 8,306 solar home systems, deployment of 26,256 electric cook stoves and 4,508 metallic improved cook stoves. The energy companies constructed 3.042 domestic biogas plants, 349 solar photovoltaic pumping, and 311 institutional solar photovoltaic systems for powering remote healthcare facilities and community schools. Nepal is gearing up to supply electricity to the entire population in a year. Nepal signed an agreement with Bangladesh to export 40 megawatts of electricity sometime back. The country has set an ambitious goal of exporting up to 8,000 megawatts of electricity. 

The stakeholders have called for prioritising solar energy and increase its percentage in the current share of energy mix as it is effective in terms of technology and cost. The AEPC is also implementing a project on modern, efficient and climate-friendly clean cooking solutions with the financial support of Green Climate Fund and local governments.  It will install 500,000 electric cook stoves, 490,000 tier 3plus improved cook stoves and 10,000 biogas plants in 150 local levels of 22 districts in Tarai region within five years, which will benefit 1 million households. This will significantly help reduce greenhouse gas emissions as well as improve the physical and financial health of people.