<figure><img width="1000" height="666" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/6372052b9c7e80680e0b28a0jpeg.jpg" alt=""/><figcaption>Photo: SHAURYA CEMENTS</figcaption></figure>Nepal’s economic planners are proud of the fact that Nepal is now self-sufficient in cement. Indeed, domestic production has expanded greatly to meet <a href="https://archive.nepalitimes.com/article/nation/A-concrete-future,2251" target="_blank" rel="noopener noreferrer">demand that has sky-rocketed since the 2015 earthquake</a>.The boom is seen in any drive along Nepal’s highways — the wall of every other house is painted in glaring signs of various cement companies. Nepal’s cement market is so lucrative that two Chinese joint venture companies <a href="https://www.nepalitimes.com/latest/going-is-tough-for-chinese-investor-in-nepal/" target="_blank" rel="noopener noreferrer">Hongshi and Huaxin are among the biggest in the sector</a>.As recently as 45 years ago there was only one cement factory, Himal Cement on the outskirts of Kathmandu. There are now some 72 plants operating across Nepal that can produce 15 million tonnes of cement a year.Together, 21 of these factories with mining capacity extract 12 million tonnes of limestone from 46 quarries in the country. There is so much <a style="letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/news.php?id=6674" target="_blank" rel="noopener noreferrer">limestone in these mountains</a> that geologists estimate there is enough to sustain cement production in Nepal for another 100 years at least.However, Nepal’s cement boom is coming at enormous environmental and social cost. Investors and shareholders have gotten richer while the land and people poorer. Unregulated quarrying, lack of safeguards, and overexploitation have led to <a href="https://www.nepalitimes.com/here-now/weve-seen-fire-and-weve-seen-rain/" target="_blank" rel="noopener noreferrer">worsening floods and landslides</a>, as well as air, water and soil pollution. <figure><img width="1077" height="600" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/6372052e9c7e80680e0b28a1jpeg.jpg" alt=""><figcaption> </figcaption></figure>50 years ago a Panchayat-era minister proudly said that Nepal needed more smoke stacks to develop. Today, Dhruvaraj Thapa of the Nepal Cement Manufacturers' Association echoes the same mindset.“We cannot overlook the benefits, including employment opportunities, provided by the cement industry,” says Thapa. “We will limit our possibilities if we constantly bring up environmental protection.”The government would like to think that the cement industry is helping the economy boom and earn revenue. While it is true that domestic production has reduced the need to import, what local and national governments get in terms of royalty fee is small change compared to the enormous environmental cost. Nepal’s cement companies pay only Rs60 for each tonne of limestone in royalty fee compared to Rs140 across the border in India. Yet the market price of cement is twice as high in Nepal as in India.In the past eight years, the government has collected only Rs2.84 billion in royalty from cement industries. On the other hand, the yearly turnover from the industry, says Thapa, amounts to Rs150 billion.For example, Sarbottam Cement extracted 371,000 tonnes of limestone from its quarry in Palpa district in the fiscal year 2019/2020. The company earned a profit of Rs1.17 billion, but paid royalty worth only Rs20.2 million — a mere 1.9% of its earnings.Similarly, Shivam Cement distributed Rs1.4 billion (24% of its total profit) to shareholders in the fiscal year 2020/2021, but the company paid just Rs26 million in royalty to the government.At the Department of Mines and Geology, director general Ram Prasad Ghimire advocates raising the fee for limestone extraction from quarries to a more realistic level, taking into account the environmental cost. Thapa at the Cement Manufacturers' Association counters, saying this could only make cement costlier for builders.   <figure><img width="1077" height="315" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/637205319c7e80680e0b28a2jpeg.jpg" alt=""><figcaption> </figcaption></figure>Nepal’s annual per capita cement consumption is 303kg, which is higher than India (195kg), but much less than China (1,716kg) and even Bhutan (734kg). At the present rate of growth spurred by infrastructure projects and housing, domestic cement demand could reach 25.8 million tonnes by 2025.  This means an unsupervised cement industry would end up not just affecting ground water, disturb fragile mountain slopes to trigger landslides, but also increase Nepal’s carbon footprint at a time when the country has <a href="https://www.nepalitimes.com/latest/post-cop26-nepals-real-work-now-begins/" target="_blank" rel="noopener noreferrer">committed to net-zero emissions by 2050</a>.Environmental impact is not just something that concerns city-based activists or non-governmental organisations. Mahendra Pandey, a local in Dobhan of Palpa, knows all too well what having a cement quarry in the neighbourhood can do to agriculture.“Everyone talks about the benefits of the cement industry, but no one cares about how it affects us farmers here,” says Pandey, who has to deal with the impact on groundwater supply, soil and air pollution from the nearby Sarbottam Cement plant. “The government is no help, it does not care about what the people here on the ground face.”It is not that the government is unaware. All new cement factories have to complete an environmental impact assessment (EIA), but this can be easily circumvented, while report after report submitted to the government have been warning about the need for harm reduction in the cement industry. In a <a href="https://www.nrb.org.np/contents/uploads/2021/05/2078.01.25-Final-Draft-of-Cement.pdf" target="_blank" rel="noopener noreferrer">2021 survey</a> conducted by Nepal Rastra Bank, 92% of respondents said that cement industries caused air, water, noise and soil pollution in their communities, severely impacting their livelihoods.But in a country where an overwhelmingly high number of mayors and ward chairs are <a href="https://archive.nepalitimes.com/article/from-nepali-press/Elected-contractors,4182" target="_blank" rel="noopener noreferrer">contractors</a>, and big companies have political protection, awareness is insufficient for corrective action. <figure><img width="1200" height="700" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/637205339c7e80680e0b28a3jpeg.jpg" alt=""><figcaption> </figcaption></figure>It took two decades of <a href="http://archive.nepalitimes.com/news.php?id=11399" target="_blank" rel="noopener noreferrer">relentless activism for the government to close down Himal Cement Factory</a> in Chobhar which had affected the health of Kathmandu Valley’s population. But that was because it was the capital.Since then, the government has allowed two private cement factories to operate in Dhading’s Naubise which is situated in a narrow Valley that traps suspended particles.Locals living near mining sites in Palpa and Dang have long opposed the operation of cement factories in the districts due to increased pollution in the region. Residents in Makwanpur have also held protests against the limestone mines operated by Shivam Cement, citing environmental pollution.In fact, not even World Heritage Sites like Lumbini are protected: there are now a dozen cement factories within the 10km-radius from the birthplace of the Buddha.  Just last week, the Commission for Investigation of Abuse of Authority (CIAA) filed a case against nine cement companies, their operators as well as officials of the Department of Mines and Geology. They have been accused of exploiting more limestone than permitted without considering the environmental consequences and for evading royalty fees.There is no government monitoring on place to check the amount of limestone being extracted. The royalties are determined based on the documents submitted by the companies themselves. As such, there is every possibility that more limestone is being extracted than permitted.Cement factories transporting limestone and raw materials from quarry to factory have also destroyed road surfaces in many parts of the country. Ironically, an industry that is supposed to be the backbone of infrastructure is ending up destroying infrastructure.In a <a href="https://www.karmaquest.org/journal/index.php/ILGDI/article/view/85/59" target="_blank" rel="noopener noreferrer">research article</a> on waste management of limestone quarrying in Nepal published in the Journal of Development Innovations in July 2021, authors Birendra Sapkota and Kumar Khadka directly link soil erosion to poor management and monitoring of Nepal’s limestone mines and harmful excavation practices.Shivam Hongshi, one of the largest cement companies in Nepal, obtained the EIA approval in 2017 after the project was already half-completed. Huaxin Cement Industry was up and running in 2019 without EIA approval, concerns over which were even raised in Parliament. Moreover, in May 2021, the Ministry of Forests and Environment made amendments to the Environmental Protection Regulations 2020 such that development projects will now be allowed to use up to 25 hectares of forest land after conducting only a preliminary environmental assessment. Previously, an EIA was mandatory for all projects requiring more than five hectares.  <figure><img width="1200" height="700" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/637205379c7e80680e0b28a4jpeg.jpg" alt=""><figcaption> </figcaption></figure>Read also:  <a href="https://nepalitimes.com/drawing-a-line-in-the-sand/" target="_blank" rel="noopener noreferrer">Drawing a line in sand</a>, Bhrikuti Rai <a href="https://www.nepalitimes.com/here-now/drowning-in-sorrow/">Drowning in Sorrow</a>, Mukesh Pokhrel Meanwhile, even as Nepalis living and working in proximity to mining sites and cement industries bear the brunt of resulting environmental and health crises, they receive few financial benefits. Ghimire of the Department of Mines says that the government has not yet tried to ensure that the benefits of the industry are more equitably distributed, as is the case with investments in hydroelectric schemes. “Stone, gravel and sand mining are controlled by a select few Nepali companies who reap the financial benefits while the locals incur damages to their livelihoods and the environment,” says former finance secretary Rameshore Khanal. Indeed, the excavation and sale of aggregates, boulders and sand from riverbeds have become so lucrative that local governments depend on them for revenue for development work. An estimated Rs100 billion worth of riverine products are traded annually in Nepal, with at least 600 ‘crusher’ industries converting them to raw materials for infrastructure. Meanwhile, the contribution to local governments is negligible compared to the huge profits made by the contractors who usually have local political leaders as partners or in their payroll.  Nepal’s <a href="https://www.nepalitimes.com/banner/who-now-owns-nepals-forests/" target="_blank" rel="noopener noreferrer">community forestry</a> program is internationally acclaimed, and it doubled the country’s tree cover in 25 years to nearly 45%. This is mainly because the responsibility of <a href="https://www.nepalitimes.com/here-now/mini-forests-to-make-kathmandu-more-liveable/" target="_blank" rel="noopener noreferrer">forest management</a> was handed over to local consumer groups which have expanded to over 22,000 all over the country.  At <a href="https://www.nepalitimes.com/banner/copout-at-cop26/" target="_blank" rel="noopener noreferrer">COP26 in Glasgow</a>, Nepal pledged to increase its <a href="https://www.nepalitimes.com/latest/nepal-can-up-forest-cover-to-45-by-2030/" target="_blank" rel="noopener noreferrer">forest cover to 45%</a> of land area. But the overexploitation of natural resources, such as the government-owned forest areas and vacant lands for infrastructure, with hotels, cable car ventures, hydropower plants, haphazard housing colonies now threaten these gains.   Economist Pushkar Bajracharya is studying how benefits of natural resource exploitation accrues to Nepalis. He says: "When natural resources are managed in a way that benefits the people, it can reduce poverty and increase income." But Nepal clearly has not found that balance as it hurtles headlong down an unsustainable growth path. Translated from the <a href="https://www.himalkhabar.com/news/127559" target="_blank" rel="noopener noreferrer">Nepali original</a> in the December 2021-January 2022 issue of Himal Khabarpatrika.

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Nepal struggles to balance nature and industry

<figure><img width="2015" height="958" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811118/636a2b4c9c7e80680e04596bjpeg.jpg" alt=""/><figcaption>Photo: BIKRAM RAI</figcaption></figure>The Nepal government has hailed its two-day Investment Summit that ended on Saturday as a resounding success with the signing of 15 deals with foreign investors.However, here in Nawalparasi the experience of a Chinese investor in a state-of-the-art cement plant does not bode well for the future of foreign direct investment (FDI) in the country.Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/nepal-has-to-curb-corruption-before-wooing-investors/" target="_blank" rel="noopener">Nepal has to curb corruption before wooing investors</a>, Ramesh Kumar<a href="https://www.nepalitimes.com/here-now/maze/" target="_blank" rel="noopener">Maze</a> <img width="640" height="243" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811118/636a2b4f9c7e80680e04596cjpeg.jpg" alt="">China’s Hongshi Cement had signed An FDI deal with the government during the first tenure of Prime Minister K P Oli during a similar summit in 2017. Inaugurating this year’s summit on Saturday, Oli told investors that the government would help them in every possible way with permits, infrastructure, and repatriation of profit.But faced with obstacles every step of the way, Hongshi tied up with Nepal’s Shivam Cement hoping that the involvement of a local partner would remove bureaucratic hurdles along the way. But even though the government had assured Hongshi Cement factory of a road, transmission line and other infrastructure it has not kept its promise. <figure><img width="3972" height="2876" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811118/636a2b509c7e80680e04596djpeg.jpg" alt=""><figcaption>Photos: YUVARAJ SHRESTHA</figcaption></figure>The plant is located 26km from the East-West Highway, and Hongshi opened a dirt track itself because it would have taken too long to wait for the government. However, the road has not yet been blacktopped, and none of the bridges have been built as per the agreement.The Chinese have also built another 12km road to its limestone quarry from where it sources raw material. The company says it has spent Rs1.2 billion of its own money to build roads the government had promised.Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/invest-in-investment/" target="_blank" rel="noopener">Invest in investment</a>, Editorial<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/a-roller-coaster-ride/" target="_blank" rel="noopener">A roller coaster ride</a>, Shyamal Shrestha <figure><img width="960" height="563" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811118/636a2b549c7e80680e04596ejpeg.jpg" alt=""><figcaption>Photo: SUMAN GURUNG</figcaption></figure>Similarly, the Nepal Electricity Authority was supposed to extend its transmission line from the Bardaghat Substation with the installation of 21 pylons. But this has not happened either.Hongshi would have bought 40MW of power from the NEA grid, but since the transmission lines are not yet ready it has to generate its own expensive electricity from diesel-thermal captive plants.The factory employs 520 Nepali engineers, managers and workers, and although Hongshi’s agreement with the government allows it to produce 12,000 tons of cement a day, it only brings out 5,000 tons because of the lack of electricity supply, according to manager Liu Xuguwang.  <img width="960" height="500" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811118/636a2b569c7e80680e04596fjpeg.jpg" alt="">China’s Hongshi Cement owns 70% of the venture with Shivam having 30% of the shares in the $330 million project. This is the largest foreign joint venture investment project in Nepal today, and although it is touted as a model, it is clear that unless Nepal can reduce red tape, and keep its side of the bargain, other investors at this weekend’s Summit are likely to be reluctant.Some 600 foreign delegates from 36 countries took part in the Nepal Investment Summit during which some 15 deals were signed in hydropower, solar energy, tourism, 5G telecommunication, and other projects.

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Going is tough for Chinese investor in Nepal

Earlier this month, Nepal received Rs1.6 billion from the World Bank as part of its <a href="https://nepalitimes.com/news/will-nepal-ever-be-paid-for-saving-trees">Forest Carbon Partnership Facility (FCPF)</a>, rewarding the country for increasing its carbon sink capacity. Nepal is the first in South Asia to benefit from this facility, and it is specifically to recompense the country for increasing forest cover in 13 Tarai districts between 2018-2024. “We are also trying to get another Rs13 billion from the facility while also preparing for free market-based carbon trading in the international market,” says Nabaraj Pudasaini of the REDD (Reducing Emissions from Deforestation and Forest Degradation in Developing Countries) Implementation Centre. Big emitters of greenhouse gases are under pressure to reduce their carbon emissions, and many have signed agreements to do so by investing in decarbonisation projects in developing countries. Countries that emit more than a specified amount of carbon would be able to buy emission rights from countries that emit less. Nepal is internationally known for its community forestry program which has been largely credited for <a href="https://nepalitimes.com/banner/tree-mendous">increasing tree cover to over 45%</a> in less than three decades. But this achievement had not been adequately recognised or rewarded internationally before. Forests, especially in the tropics, absorb and store large amounts of carbon while releasing oxygen in a process known as photosynthesis. <a href="https://www.fao.org/forest-resources-assessment/en/">Preventing deforestation</a> and increasing canopy cover is considered a much more achievable goal than reducing emission in the scale necessary to limit global average temperature to 1.5°C above pre-industrial levels. COP11 in Montreal in 2005 first proposed reducing carbon emissions by improving forest quality by halting degradation. By 2015, a new mechanism of financial assistance was created to help less developed countries with sustainable management of forests <a href="https://www.un-redd.org/">(called REDD+)</a>. Under this new mechanism, countries receive aid based on their efforts to prevent forest degradation and increase carbon sink, and in 2021 the World Bank was entrusted with implementing it. Nepal’s FCPF receipt this month was calculated on the basis of 2.4 million tons of carbon stored at a rate of $5 per ton. In the second phase, Nepal will receive more than Rs4 billion within the next year for storing an additional 7 million tons of carbon. Eighty per cent of this amount obtained from carbon trading needs to be spent on local beneficiaries and indigenous communities.&nbsp; But carbon trading is not easy, Nepal needs to prove that protected forests will not be destroyed in future.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241121091132_c8a381c9a95aa86fec558951650d97bb87914741f01766982ba2b086af001f16.jpg" data-media-id="editor_4" data-image-id="20241121091132_c8a381c9a95aa86fec558951650d97bb87914741f01766982ba2b086af001f16" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="Greenbacks for greenery NT "> <figcaption>Photo: KUNDA DIXIT</figcaption> </figure>  Explains carbon trading expert Yugan Manandhar. “Forests should be handed over to the community and shown that they are managed sustainably. Proving this will be particularly challenging; forest encroachment and degradation is rife in the Tarai.” <a href="https://nepalitimes.com/multimedia/nepal-is-going-up-in-smoke">Deliberate forest fires</a> have also added to the challenge because they increase carbon emissions and reduce the sink capacity of forests. The basis for the amount that Nepal received was set five years ago by calculating the carbon reserves of forests in the 13 Tarai districts. In the meantime, sustainable forest management, tree plantation, forest destruction and erosion control were prioritised to increase carbon reserves in those forests. Nepal is signing another carbon trading agreement during the ongoing Baku climate conference. The <a href="https://www.leafcoalition.org/">Lowering Emissions by Accelerating Forest finance (LEAF Coalition) </a>proposes to sell the carbon stored in the forests of Bagmati, Gandaki and Lumbini provinces. For this, Nepal signed the letter of intent three years ago at COP26 in Glasgow. The target is to store 70 million tons of carbon in 32 million hectares of forest in the three provinces per which Nepal will receive Rs13 billion in four years at $10 per ton with provisions to increase the rate if various conditions are met. However, the agreement in itself doesn’t guarantee the amount. According to the targets set by Nepal, forest degradation should be stopped and carbon reserves increased by protecting tree cover. Preparations are also underway for clean air carbon trade because it has offset fossil fuel use by introducing 30,000 electric vehicles. Nepal has been selected for the first round to receive $40 million within one and a half years through the Clean Air System of the World Bank. Given that most of Nepal’s energy mix is from biomass, replacing them with electric stoves can significantly improve health by reducing indoor pollution as well as strengthen the country’s capacity for carbon trade. “Nepal's goal now is to sell carbon in the free market where carbon credits are bought and sold based on supply and demand in an open and transparent manner,” adds Pudasaini of the REDD Implementation Centre. “Nepal can now set its own price and bargain with interested buyer countries and organisations.” Lately, India has been discussing setting up a carbon market. Nepal has exported Rs12.72 billion worth of electricity to India so far this fiscal year, which can be traded under Nepal’s carbon market. “Carbon trading can create significant economic benefits for Nepal, which will help reinvest in development and environmental protection projects,” says Manandhar. “But we must prioritise sustainable management of forests, cutting older trees and allowing regrowth as well as promoting electric stoves and electric vehicles.”

Greenbacks for greenery

Khukri Rum is <a href="http://archive.nepalitimes.com/news.php?id=3719#.WurBk6SFPIU">one of Nepal’s most iconic brands</a>, and is now launching a new Cask Series premium product to sell in Nepal and abroad. The Cask Series Smoked Finish Khukri Rum is a limited edition with only about 7,000 bottles, most of it for export and rest to be sold to rum connoisseurs in Nepal itself. Each bottle is numbered and will mention the cask from which it is derived. “We are working on taking a classic Nepali rum to a new luxury premium brand category, the Cask Series will only be produced this year with new product ranges in future,” explains Subash Lamichhane, managing director of Nepal Distilleries that first started making Khukri rum in 1959 in Balaju and has never stopped. Fermented from molasses in Bara district in the Tarai after the annual sugarcane harvest, the rum is matured for at least eight months during distillation. The distillery bottles the classic Khukri XXX, Coronation Khukri XXX, Khukri White Rum and Khukri Spiced Rum.&nbsp; The distillery is now adding this limited edition of its ‘Cask Series’. While the original rum is stored in huge wooden vats, the rum used for this more exclusive line is in smaller casks made either from oak or sal, with charred insides to give the rum a smoky flavour. The Cask Series rum is indeed smokier than the classic, while the spiced rum tastes toasty and mostly of cardamom. The company has a tasting suite with a master blender and tasters who have to approve the palate test.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241122131124_10b8ddca93b37b0348bf964b4f09e7fac6ef4e754cca6231368850539cd558e2.jpg" data-media-id="editor_1" data-image-id="20241122131124_10b8ddca93b37b0348bf964b4f09e7fac6ef4e754cca6231368850539cd558e2" data-rendition-name="original" width="1498" height="1000" loading="lazy" alt="Khukri Rum"> </figure>  The packaging for the Cask Series is as special as the process. A sturdy patterned box that opens up to a black glass bottle with gold lettering, and an indication of which cask the rum is from. These are then shipped to premium customers around the world One of the reasons this is the more expensive premium line is because the casks are smaller than the vats and the blenders reject more than half of the rum in the casks when the aging period is complete. The trick for the blender is also to decide when to take the run out of the cask.&nbsp; Says Lamichhane: “If we have 25 casks, we expect to throw away about fifteen.”Over the decades, Nepal Distilleries have created and maintained a brand that feels quintessentially Nepali, and has served as Nepal’s ‘ambassador’ with exports to Germany, Korea, Belgium, Finland, the Czech Republic, besides the existing markets among Nepalis in the US, UK, Hong Kong and Australia. &nbsp;Its unique <a href="https://nepalitimes.com/here-now/khukri-rum-sharpens-its-act">khukri shaped bottle</a> first introduced for King Birendra’s coronation in 1975 has been a collector’s item. The bottle and rum have been a staple for Nepalis and visitors to take as gifts when they leave the country, and is used as decoration on bar tables around the world. Now, nearly 40 years later, even that bottle will soon be getting a makeover with a sharper design and sleeker handle. “Our bottle design has always been instantly recognisable, and it is,” says Lamichhane. The Himalayan restaurant at The Hague, for example, has a Khukri Coronation bottle adorning its bar (page 6-7). In Washington DC Himalayan Heritage Restaurant &amp; Bar offers ‘Nepalese Khukri Rum’ mojito in its drinks menu with fresh mint, soda water, lime juice and sugar syrup, for $12.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241122131124_b9474db3fc83c85845348dddc30c49652ee1f17229531867fa241de50849cedc.jpg" data-media-id="editor_3" data-image-id="20241122131124_b9474db3fc83c85845348dddc30c49652ee1f17229531867fa241de50849cedc" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Khukri Rum NT"> <figcaption>Christopher Armes, master blender of the Cask Series.</figcaption> </figure>  A distinct element of the award-winning <a href="https://nepalitimes.com/business/khukri-rum-gets-award">classic Khukri rum</a> is its burgundy colour from caramel sourced from cooking sugar and blended with the raw rum. The spirits are then stored in a warehouse with floor-to-ceiling vats. The vats are not just for storage, the wood in the vats imparts flavour into the rum, and removes a lot of the harshness. &nbsp; On a visit this week, the bottling room was just about to begin for the day and the production line was churning out different shapes and sizes of Khukri Rum bottles. Most of the process is automated, including screwing bottle caps, sticking labels, placing the government seal, and packaging. The only manual intervention is the quality control where bottles are held against the light to check for sediment and colour. A mural on the wall of the distillery in Balaju depicts the rum-making process. A lady slings sugarcane on her shoulder, the molasses is churned in a pot, water is channelled into the distillation process, cinnamon, cloves and cardamom are added to a container, and finally there is a bottle of the classic Khukri Rum against a Kathmandu backdrop.

Khukri goes premium with new rum

Turkish Airlines has introduced a new amenity kit collection designed in collaboration with French fashion house Lanvin for international business class passengers on flights more than five hours. It consists of five pieces designed for sustainability and elegance. Bags are reusable and will consist of Lanvin cosmetic products like hand and body lotions and lip balm. Eye masks and socks are made from recycled materials, earplugs are packaged in paper and the toothbrush is bamboo.

Turkish amenity kit

Nepal now generates a surplus of electricity and it is all from renewable hydropower. Nearly half the country is under forest cover. Despite meeting these decarbonisation goals, Nepal’s hydropower plants are threatened by increased risk due to climate impact.&nbsp; Till <a href="https://nepalitimes.com/editorial/when-it-rains-it-pours-ksqprbu3">28 September</a>, Nepal was <a href="https://nepalitimes.com/news/india-nepal-sign-power-exchange-deal">exporting just over 1,000MW</a> of electricity to power-hungry India, when flash floods and landslides unleashed by historically heavy rains damaged over 30 hydropower plants across the country, temporarily <a href="https://nepalitimes.com/news/power-to-the-people">slashing nearly half the power generation.</a> The 456MW Upper Tamakosi in Dolakha was the hardest hit and it will take six months and Rs2 billion to repair. This has significantly reduced exports as well as domestic generation. Two months later, Nepal has still not been unable to fully keep its export commitment, and is actually paying Rs100 million in fines to India. Thirty-seven existing and under construction projects under the Independent Power Producers' Association Nepal (IPPAN) suffered Rs2.5 billion in damage. One of them is the 22MW Bagmati project in Makwanpur which was almost completely buried in flood debris. Even before <a href="https://nepalitimes.com/news/60-dead-64-missing-in-nepal-floods">record-breaking rain in September</a>, 15 other hydropower projects had been damaged by floods. Last year, floods caused by heavy localised rain damaged 28 hydropower plants. World governments met in Baku for COP29 to discuss the Loss &amp; Damage Fund and the Adaptation Fund, but for countries like Nepal the commas and brackets are meaningless until they are turned into $ and €. And likelihood of adequate compensation for climate-related damage is a long way off, if ever. Nepal’s national strategy is to use its vast hydropower resource as clean energy to spur economic growth, job creation, and boost export revenue. But the plants are located in narrow Himalayan valleys prone to landslides and floods even at the best of times. Now, those <a href="https://nepalitimes.com/opinion/comment/changing-climate-for-investment-in-nepal">risks have been heightened by weather extremes</a> due to climate breakdown. At present, Nepal generates over 3,300MW of clean hydropower, and the target is to reach 12,700MW in the next five years. Projects equivalent to 6,000MW are under construction or ready to start. The Ministry of Energy, Water Resources and Irrigation has an Energy Development Roadmap and Action Plan with the target of producing 28,500MW by 2035 by when more than half of it will be exported.&nbsp; “The climate crisis will further change the rainfall patterns making hydropower generation a big question mark in the future,” Manjeet Dhakal in Baku, who is also the Nepali adviser to the LDC Chair at the United Nations Framework Convention on Climate Change (UNFCCC). “We are building hydropower projects on rivers without evaluating risk. This whole process needs to be reviewed and reconsidered.” The report of the National Adaptation Plan published by the Ministry of Forest and Environment last year mentions that hydropower production, transmission and distribution will be at risk from flash floods, debris flows, glacial lake outbursts and rising temperatures.&nbsp; This risk is not confined to Nepal. Average global temperatures have increased by 1.3°C compared to the pre-industrial era. Worse, the Himalayan mountains are warming faster than the global average by 0.7°C because of elevation-dependent warming. A study conducted by our own Department of Hydrology and Meteorology in 2017 showed that the average temperature in Nepal has increased in the last four decades. Scientists say this is leading to extreme weather unleashing floods and landslides on slopes already destabilized by seismicity.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241124071128_d22901a360e8958f606d80ffa21defba05a671f65afec65539dc21a6885d8345.jpg" data-media-id="editor_5" data-image-id="20241124071128_d22901a360e8958f606d80ffa21defba05a671f65afec65539dc21a6885d8345" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="Right climate for Nepal’s energy transition NT"> <figcaption>BIBLICAL RAIN: Photo taken during catastrophic rain on 27-28 September at the Upper Tamakosi project site that destroyed the control room, killing four staff and burying the sedimentation tanks. Photo: RSS</figcaption> </figure>  Increased atmospheric temperatures has made the monsoon rains more erratic. It does not rain when it is supposed to, and it comes down in torrents when it is not supposed to. The September floods happened two weeks after the monsoon was supposed to retreat from central Nepal. Kathmandu Valley received half its annual precipitation in just over a day. &nbsp; Winter precipitation has also failed, especially in the high mountains and trans-Himalayan valleys. Thirteen of the past 19 years experienced winter drought. This impacts on dry season flows of the rivers, reducing hydropower generation. Nepal’s power capacity normally goes down by one-fourth during winter, but the gap is widening. The Kabeli corridor could only generate 20MW November-March even though plants there have an installed capacity of 200MW. Similarly, Upper Tamakosi only produced 65MW at most against its 456MW capacity last winter. The Nepal Electricity Authority (NEA) pays producers double the price for winter electricity, Rs8.40 per unit. Even though winter operation is highly profitable the rivers run low and NEA has to import from India to meet the winter demand. “This is not just a weather problem but a serious challenge also for the country's energy future, good climate-friendly design should be combined with policy and effective implementation,” says Subarna Das Shrestha, a hydropower investor and CEO of Sanima Mai Hydropower. “Insurance premiums have gone up as well, and settlement for damage is not timely.” <a href="https://nepalitimes.com/opinion/climate-risk-to-hydropower-investment">Hydropower investment</a> at one time was regarded as having a high rate of return. Now, some investors have become <a href="https://nepalitimes.com/banner/climate-smarter-himalayan-infrastructure">wary of the risks involved</a>. Says IPPAN’s Uttam Blon Lama: “Hydropower projects expected to give stable returns are now looking risky. Not only is climate adaptation design and planning expensive, but future repair and maintenance costs will also skyrocket.” Nepal has only one storage type dam <a href="https://nepalitimes.com/multimedia/rivers-be-dammed">in Kulekhani</a> and another one is being built in <a href="https://nepalitimes.com/multimedia/missing-pieces-of-the-hydropower-jigsaw">Tanahu</a>, but they are also at risk. In September, the sluice gates of Kulekhani Dam had to be opened causing loss of life and destruction downstream. Nepal has to learn lessons from the deadly collapse of the $1 billion <a href="https://nepalitimes.com/news/sikkim-flood-is-warning-to-nepal">Chungthang Dam in Sikkim</a> in October 2023 cause by a glacial lake burst. Glacial Lake Outburst Floods (GLOFs) in Nepal pose potentially catastrophic risk to infrastructure. The <a href="https://nepalitimes.com/here-now/lives-on-the-line-in-the-himalaya">Thame flood in August</a> was a relatively minor debris flow that damaged half of this village in the Everest region when <a href="https://nepalitimes.com/news/climate-breakdown-linked-to-thame-flood">two glacial lakes at 4,760m burst</a>. Luckily there was no loss of life. Of the <a href="https://nepalitimes.com/here-now/lives-on-the-line-in-the-himalaya">47 high-risk glacial lakes</a> in the eastern Nepal Himalaya, 21 are in Nepal and the rest are in rivers in China that are tributaries of the Arun and Bhote Kosi where Nepal has major hydropower plants under construction, or planned.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241123021128_b596cd8520c57a6c5476031e7a3ea6510f26b464c4d5351d2bc10f6f7d6b70d8.jpg" data-media-id="editor_14" data-image-id="20241123021128_b596cd8520c57a6c5476031e7a3ea6510f26b464c4d5351d2bc10f6f7d6b70d8" data-rendition-name="original" width="871" height="648" loading="lazy" alt="Page 10-11 map #1236 NT"> </figure>  Global temperature rise is accelerating the melting of Himalayan snow and ice, increasing the <a href="https://nepalitimes.com/here-now/living-below-nepal-s-melting-mountains">number and size of glacial lakes</a> so that we do not even have names for them. Imja Tso did not even exist in the old trekking maps until 25 years ago, but is now a 2km long lake. “Natural moraine dams in the mountains are weak, and the projects downstream can face major destruction if they burst, and the risk will only increase in future,” warns climatologist Arun Bhakta Shrestha at the <a href="https://www.icimod.org/">International Centre for Integrated Mountain Development (ICIMOD)</a>. <a href="https://nepalitimes.com/here-now/terrifying-assessment-of-a-himalayan-melting">An ICIMOD assessment in 2019</a> projected that if present heating trends continue, as they probably will, the Himalaya will lose two-thirds of our glaciers by the end of this century. “Generally speaking, hydropower developers hand over the project to the government after 30 years but by that time given the climate risks, they may not be an asset anymore,” says Manjeet Dhakal. Indeed, the cascade of expensive projects India is building on the Arun River are supposed to be handed back to Nepal in 25 years, but there is a big ‘if’ about whether they will survive that long. &nbsp;&nbsp; Planning of hydropower projects is still based on historical hydrological data, and does not take into account future temperature rise and its consequences. Investors, on the other hand, say that planning hydropower projects with climate components would make them even more expensive.&nbsp; “It’s not that we aren’t preparing for climate risk, we design keeping in mind the once-in-100-year flood,” says Blon of IPPAN. “But if we start designing based on once in 1,000 years flood, the cost would be so high that we won’t be able to build them at all.” Nonetheless, Subarna Das Shrestha of Sanima Mai Hydropower says that there is no option but to go for climate smart infrastructure despite the higher cost. Sanima Mai's powerhouse, for example, is completely underground. The strategy could also be to spread the risk by building less expensive plants located on rivers all over the country. Nepal is also diversifying away from its sole reliance on hydroelectricity, which at present supplies 92% of the power in the grid. Most of the rest comes from solar plants, where the total potential has not even been scratched. &nbsp; This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_21" data-image-id="20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG logo"> </figure>  &nbsp;

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