Industrial processes- and energy-related emissions are a small but steadily growing source of emissions in Nepal. Brick industries contribute two-thirds of CO₂ emissions from this sector in the country, followed by cement industries which contribute 18% of the total emissions. Bricks are the most commonly used building material in Nepal and its production is an energy intensive process, reliant on large amounts of coal. Cement production, which emits carbon dioxide as a by-product, is a significant source of process related industrial emissions in the country. Coal meets over half of the energy demand in the industrial sector, and the rest is met by fuelwood, diesel, and electricity. Diesel is used for backup electricity generation, while the rest are used for thermal energy.
Analysis of cost-effective pathways show the potential for energy-related industrial emissions to reach 0-3 MtCO₂ by 2030 and to be phased out by 2050. To achieve this, the electrification rate, which was less than a fifth of the energy mix in 2019, needs to jump to around 77% by 2050. By comparison, process-related emissions are projected to be harder to abate due to the lack of commercially viable alternate technology and are only compensated for in high CDR reliance scenario.
Nepal’s NDC aims to formulate guidelines and mechanisms to monitor emissions from large industries by 2025 and develop and enact emissions standards and adopt low emissions technologies in brick and cement industries to replace coal by 2030. Nepal’s LTS aims to decrease industrial energy-related emissions to 3.72 MtCO₂ by 2030 and to 1.04 MtCO₂ by 2050, primarily through electrification of industrial end-uses, improvement in energy efficiency, and replacement of traditional brick kilns with improved and electric ones. The country aims to improve its renewable energy potential to 53.2 GW to reach the high electrification rates. While Nepal also sees a role of hydrogen technology and waste fuel for thermal processes, it provides no concrete vision deploying these. For process-related emissions, such as CO₂ emissions from cement production, Nepal aims to explore the potential for CDR through carbon capture and storage, although no concrete targets are provided.