23 August, 2024
Decarbonizing the Economy and Energy Transition
In contrast to industrialized countries, households and the end users release most of the Greenhouse Gases (GHGs) in Nepal. Nepali industries have a negligible carbon footprint, which is significantly below one percent of the total global carbon emissions. Overall, the country emitted 32 MtCO2e in 2011, although the current figure in 2021 will be much higher.
What does energy transition mean? Energy transition refers to the shift of energy sector from fossil-based systems of energy production and consumption including oil, natural gas, and coal to renewable energy sources like hydropower, wind and solar. Eventually, Nepal should aspire to become net-zero emissions by identifying feasible options for transitioning into a low carbon economy.
However, it is alarming that the share of petroleum imports continues to dwarf goods exported from Nepal. We must put in place the right incentives for households, industries, and transport systems to adopt cleaner forms of energy.
Current energy scenario:
Between 2013-2015, the electricity sales growth averaged 7%, whereas it was 20% between 2017 19. The energy mix in 2019 was 69% for biomass , 17% for petroleum products ,7% for coal, 4% for electricity, and 3% renewables respectively. Sectoral consumption in 2019 was 75% residential, 10% industrial, 10% transportation, 4% commercial, and 1% agriculture.
Therefore, reducing emissions at the household level is critical for achieving Nepal’s goals of a
second targeted decreasing fossil fuel dependency by 9% and ensuring that 15% of total energy is supplied through clean energy sources. Nationally determined contributions (NDCs) are a core component of the Paris Agreement. The global agreement requires each country to prepare, communicate, and maintain successive nationally determined contributions (NDCs) that it intends to achieve.
Additionally, the government introduced Nepal’s Energy Sector Vision 2050, National Renewable Energy Framework 2074, National Climate Change Policy 2076, and National Energy Efficiency Strategy 2075. The existence of such extended policies indicate that the issue of clean energy is a priority for the government in the long term.
Investment needs:
Massive investments are required to decrease GHG emissions and Nepal’s aspiration for a
low carbon- based economy. For the last couple of years, due to enhanced technology innovation, thermal efficiency of electric cooking stoves such as induction cooktops has improved tremendously to more than 80%, whereas LPG cooking stoves remain at around 50 to 60 percent and traditional firewood cooking stoves stand around ten percent. So, what ought to be done?
The Government of Nepal’s long-term strategy (LTS) to mitigate GHG (greenhouse gas) emissions:
Nepal submitted the first Nationally Determined Contributions (NDC) in 2016 and then second NDC in December 2020. While the first one aimed at reducing use of carbon-based fuels in the transport sector by 50% before 2050, the decarbonized economy. With existing mechanisms in place, it would take 20% of the national GDP by 2030, and 12% by 2050. Whereas with additional mechanisms, the investments required will be 23% of the GDP in 2050. Additionally, measures entail use of 100% electric cooking, electric boilers, and dramatic electrification in industry, transport, agriculture, and commercial sectors.
(Professor Amrit Nakarmi is on the advisory panel of the Energy Development Council, and coordinator of Energy Systems Planning Analysis, Centre for Energy Studies, Institute of Engineering, Tribhuvan University)
Note: This article is from Nepal Infrastructure Summit 2022 by Prof. Amrit Nakarmi.