What is Nepal's pathway to limit global warming to 1.5°C?

Transport

Last update: 1 June 2021

The transport sector of Nepal was responsible for 2 MtCO₂ of emissions in 2011.1 Vehicle ownership remains low in Nepal. However, rapid economic growth and urbanisation have led to its petroleum vehicle fleet to grow as well, at the annual rate of 14% between 1990 and 2018.2,3 This fast growth of the vehicle fleet has contributed to increasing emissions and air pollution as well as the country’s trade deficit.

Nepal's energy mix in the transport sector

petajoule per year

Scaling

In its 2020 NDC, Nepal aims to ensure that 90% of its new private and 60% of new public vehicle sales will be electric by 2030 and that transport-related emissions are expected to decline to 2.6 MtCO₂ by 2030.4 This target is in line with the modelled domestic emissions pathways benchmarks analysed in this project. Nepal’s LTS aims to reduce emissions from the sector to 1.04 MtCO₂ by 2050. It envisions doing so primarily through promotion of electric public and private transportation as well as electric freight transport, and introduction of clean fuels including biofuels and hydrogen fuel cell technology. The LTS also aims to increase the renewable energy capacity of the country to 53.2 GW by 2050 with the aim of electrification of major end-use sectors, including the transport sector.5

While the proportion of electric vehicles in the country is currently negligible – less than 1% of the vehicle fleet – this share is expected to increase significantly as the government enacts policies in line with its NDC targets.6 For example, last year the government reduced customs duties for electric vehicles.7 As Nepal imports almost all of its vehicles and exerts heavy customs taxes, this measure is expected to boost electric vehicles sales in the country’s price-sensitive vehicle market.8

Nepal's transport sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

1.5°C compatible transport sector benchmarks

Direct CO₂ emissions and shares of electricity, biofuels and hydrogen in the transport final energy demand from illustrative 1.5°C pathways for Nepal

Indicator
2019
2030
2040
2050
Decarbonised transport sector by
Direct CO₂ emissions
MtCO₂/yr
5
2 to 4
2 to 3
0 to 3
2048 to 2067
Relative to reference year in %
-48 to -18%
-51 to -45%
-100 to -44%
Indicator
2019
2030
2040
2050
Share of electricity
per cent
0
3 to 7
9 to 14
20 to 22
Share of biofuels
per cent
0
1 to 2
1 to 5
2 to 11
Share of hydrogen
per cent
0
1 to 17
38 to 43
48 to 78

All values are rounded. Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

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