In 2023, northern India suffered record-breaking heat. In 2024, it broke its own record. In 2025, the Indo-Gangetic plains and the Nepal Tarai suffered a prolonged pre-monsoon heat wave and humidity, forcing closure of schools and workplaces. This week, <a href="https://www.dw.com/en/europe-heat-wave-intensifies-as-fresh-warnings-issued/live-73108302">southern Europe is suffering the worst heat wave</a> since temperature records began. Football matches, tennis tournaments have been affected, and tourist sites have been closed off. Qatar has ordered a midday work curfew for Nepali and other migrant workers are the maximum temperature this week touched 45°C.&nbsp; Kathmandu Valley experienced its highest temperature in 25 years in May 2024 at 35.3°C. This year, the maximum temperature exceeded 30°C on many days — heat that till a decade ago would be considered unusual. Rains in early June also meant that towns in the mountains sweltered under high heat plus humidity.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250703090748_6975cfc2ad573f3a09ca301a299a9e92a420da7f1c5c90b8e4d061a2053dcd3e.jpg" data-media-id="editor_1" data-image-id="20250703090748_6975cfc2ad573f3a09ca301a299a9e92a420da7f1c5c90b8e4d061a2053dcd3e" data-rendition-name="original" width="1935" height="801" loading="lazy" alt="maximum average temperature in Kathmandu"> <figcaption>Source: DHM</figcaption> </figure>  Measuring just temperature does not give a true picture of how hot it is. When humidity is factored in, the heat index this summer has been much higher in northern India and Nepal. Also, the hotter the air temperature the higher the concentration of water vapour in it. “We feel it is getting hotter, and our statistics back that up,” says Shanti Kandel at the Department of Hydrology and Meteorology, which issued two heat wave warnings this year, compared to 11 last year. “We need more research to analyse how humidity is make this situation worse.” <a href="https://economictimes.indiatimes.com/news/india/india-faces-alarming-30-rise-in-moist-heat-stress-over-40-years-affecting-wide-swath-of-country-imd-study/articleshow/109376863.cms?from=mdr">A recent analysis</a> by the Indian Meteorological Department has found that heat stress in that country has increased by nearly 30% over the past 40 years. Similarly, India’s Council on Energy, Environment and Water (CEEW) noted that cities like Delhi, Chandigarh, Jaipur, and Lucknow have experienced a 6-9% rise in relative humidity in the last decade.&nbsp; It also states that <a href="https://www.reuters.com/sustainability/climate-energy/majority-indian-districts-face-high-heatwave-risk-study-shows-2025-05-20/#:~:text=%22About%2057%20per%20cent%20of,usual%20number%20of%20heatwave%20days.">60% of Indian districts</a>, home to three-quarters of the country’s 1.3 billion people face a high to very high risk from extreme heat, with rising night-time temperatures and humidity. The heat index is also called ‘<a href="https://nepalitimes.com/here-now/north-indian-heat-wave-hits-nepal">wet-bulb temperature</a>’ and is a measure of how hot the human body feels when humidity levels are also high — usually much hotter than the recorded temperature. For example, a wet-bulb temperature of 35°C is considered the maximum limit of heat and humidity that humans can handle, beyond which the body cannot cool by perspiration, leading to death. One indicator of increasing humidity is a rise in average minimum temperature, and Nepal recorded the highest figure since 1981 last year, with a peak of 15.8°C. Higher minimum temperature denotes warmer nights, which in turn is an indication of heat stress caused by increasing humidity, which in turn is a result of global warming. Aside from higher average temperatures worldwide this year, what makes heat and humidity more unbearable is that cities are always hotter than their surroundings. This is due to the <a href="https://nepalitimes.com/opinion/comment/preparing-for-kathmandu-s-heat-waves">urban heat island (UHI) effect</a> – for example the temperature inside Kathmandu’s Ring Road can be hotter by <a href="https://www.epa.gov/heatislands/what-are-heat-islands">up to 4°C during the daytime and by 1 to 3°C in the evening</a> compared to the outskirts. “Climate change is one reason for rising temperature, but there are other factors like increased heat in urban spaces due to concrete buildings and infrastructure, emissions from vehicles, industries, and home appliances,” explains urban planner Bhushan Tuladhar. He adds: “Much of this comes down to how we have developed our cities, not just our roads and buildings but also our water system, waste management, culture and customs as well as economy.” There is a feedback loop at work: as it gets hotter, more energy is used for fans, coolers, and air-conditioners which in turn add to the urban heat bubble. The way to reduce the UHI effect is to have more parks, tree-lined streets and water bodies to cool cities down.&nbsp; <a href="https://www.sciencedirect.com/science/article/abs/pii/S2212095525002093">A recent study published in the journal Urban Climate</a> by Nepali researchers at the University of Massachusetts, Tribhuvan University, University of Groningen, etc showed that even within Kathmandu, urban forests cooled neighbourhoods by as much as 1.2°C while ponds reduced the temperature by up to 0.85°C compared to nearby houses.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250703090748_e4de75dbdfb5fcfdeb0935eda364dc16b5dca8857ba335ab0f4586ebdc5093a9.jpg" data-media-id="editor_8" data-image-id="20250703090748_e4de75dbdfb5fcfdeb0935eda364dc16b5dca8857ba335ab0f4586ebdc5093a9" data-rendition-name="original" width="2580" height="1038" loading="lazy" alt="urban heat island in Kathmandu"> <figcaption>Source: URBAN CLIMATE et al.</figcaption> </figure>  ‘Our results demonstrate that blue-green spaces provide significant cooling benefits across the Kathmandu Valley, with distinct patterns by type, size, design, and urban context,’ concluded the paper, whose lead author is Saurav Bhattarai at Jackson State University in the United States. The old towns in Kathmandu Valley with traditional brick and tile architecture, ponds and trees managed hot summers better. Compact houses around a courtyard gave people just the right amount of sunlight, and use of clay mortar and bricks insulated houses in winter while cooling them in summer. There were open spaces, fertile land along the floodplains for farming, and brick pavements that allowed for seepage. “Our cities were planned taking nature into account,” says Sangeeta Singh, a professor of urban planning at the Institute of Engineering. “Kathmandu Valley is now built up, but we can still reintegrate blue-blue spaces into town planning with vertical gardening, urban forestry, using local material and harvesting rainwater.”&nbsp; Kathmandu’s municipalities have by-laws controlling building design and structure, but strict enforcement of land use and zoning are missing. Extreme heat disproportionately affects the urban poor who may not have access to fans or air-conditioners, exacerbating poverty.&nbsp; Cities in the plains have it even worse. As heat and humidity rise simultaneously, it could <a href="https://nepalitimes.com/banner/garmi-se-behal-chalo-nepal">reverse the current mass migration</a> of people from the mountains to the Tarai, where 53% of Nepal’s population lives. <a href="https://thedocs.worldbank.org/en/doc/92fbbbc6180238e18e7b239fad83e38a-0280032024/original/12-DHNT-Temperature-poverty-inequality-September-2024.pdf">A World Bank study</a> put the cost of a 1°C rise in temperature at 17.1% increase in poverty globally. Estimates put the total number of urban poor in developing countries exposed to the worst heat extremes at 26 million presently, this number is bound to grow to 215 million by mid-century, an over eight-fold increase. Meanwhile, 489,000 health-related deaths occur each year, 45% of them in Asia alone. “Heat has to be seen from a class perspective,” says Singh. “Those with money can afford gadgets and appliances to keep their homes and offices cool, but not day labourers or poor families living in cramped housing with poor ventilation.” Climate breakdown is going to widen the class divide in cities, as <a href="https://nepalitimes.com/banner/unthinkable-in-the-current-climate">summers become unliveable</a>. Says Singh: “We need policy intervention to address this class injustice. Our building by-laws and new town development must urgently integrate climate and energy efficiency elements.”

Sonia Awale

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In the heat of the moment

Gebru Jember Endalew has been involved in UN negotiations on climate change since 2008 as a core member of the Ethiopian negotiating team. Last year, he stepped down as Chair of the Least Developed Countries (LDCs) Group on Climate Change, of which Nepal is a member and Bhutan is the new Chair.Currently, Endalew is an adviser at the Korea-based <a href="http://gggi.org/" target="_blank" rel="noopener">Global Green Growth Institute</a>. Endalew was in Kathmandu this week for consultations on resilience and adaptation for Asia-Pacific members of the LDC group. He spoke to Nepali Times on how least-developed countries like Nepal can cope with <a href="https://www.nepalitimes.com/editorial/climate-climax/" target="_blank" rel="noopener">climate change</a>.Read also:'<a href="https://www.nepalitimes.com/?p=21122&amp;preview=true" target="_blank" rel="noopener">Climate damage</a>', Editorial<a href="https://www.nepalitimes.com/banner/a-terrifying-assessment-of-himalayan-melting/" target="_blank" rel="noopener">Terrifying assessment of a Himalayan Melting</a>, Kunda Dixit'<a href="https://www.nepalitimes.com/?p=21132&amp;preview=true" target="_blank" rel="noopener">Turning on the heat</a>', Ajaya DixitSimilarities between Nepal and EthiopiNepal and Ethiopia have a lot in common. We are LDCs, we are land-locked, face severe impacts of global climate change despite not being major greenhouse gas emitters. And we are both mountainous countries. Mountain ecosystems are <a href="https://archive.nepalitimes.com/regular-columns/guest-editorial/mountainous-change,887" target="_blank" rel="noopener">highly fragile in terms of climate change impacts</a>, as proven by the <a href="https://www.nepalitimes.com/banner/a-terrifying-assessment-of-himalayan-melting/" target="_blank" rel="noopener">study released this week</a> by ICIMOD Hindu Kush Himalaya Assessment and the <a href="https://www.nepalitimes.com/opinion/decarbonise-now/" target="_blank" rel="noopener">IPCC 1.5 Degree World report</a>.We know that a 1.5 degree world is achievable, but even an increase of one degree in global average temperature has major consequences ranging from forest fires, extreme weather events to changing monsoon patterns. Yet some of the countries were still in denial at the Climate Summit in Poland. But we LDCs have been consistent in terms of our reflections about the 1.5 degree report and we believe it will be taken up at the UN Secretary General’s meeting in September in New York.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25cb9c7e80680e0439e0jpeg.jpg" alt="" width="800" height="1067"/><figcaption>Photo: KUNDA DIXIT</figcaption></figure>Climate justiceWhile we need to continue to push big emitters for more pledges for adaptation, we cannot completely depend on compensation to address the <a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/" target="_blank" rel="noopener">impact of climate change</a> on our people. Trillions were promised in Poland but it will take years to materialise. And now that the number of big emitters have increased, and include many of our own countries, reimbursement alone will not take us anywhere in terms of investments required.If we stick to <a href="http://archive.nepalitimes.com/news.php?id=9980#.XFvcbVUzaUl" target="_blank" rel="noopener">historical responsibility for carbon emissions</a>, we will not arrive at a solution. If we wait for developed countries to pledge resources, we will not be able to adapt to the urgent impacts that are already being felt. So government in countries like Nepal and Ethiopia need to look for domestic financial resources and engage the private sector in solutions to generate revenue. We need to move out of the victim narrative to proactive leadership to deal with it.In fact, Nepal can be a leader in terms of developing innovative mitigation actions, even if it may have a much <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/" target="_blank" rel="noopener">smaller carbon footprint</a> compared to other countries. Better ecosystem and resource management here can reduce the risks of flooding in lower catchment areas of India and Bangladesh.And to be honest, past actions cannot be blamed when people were just trying to improve their lives. Post-industrial emissions were not deliberate. The biggest blunder of all would be for our leaders to repeat the same mistakes with the knowledge they have today about the impact of greenhouse gases.Turning the clock backCountries like the US and Brazil are <a href="https://www.nepalitimes.com/banner/bypassing-trump-on-climate-action/" target="_blank" rel="noopener">regressing on prior commitments</a> when it comes to climate change action. But I’m a bit of an optimist myself. Despite a somewhat bleak scenario at the leadership level, what is happening on the ground is encouraging. We see consecutive peaks in investment on renewable energy around the world including in the US, and these newer cleaner technologies are cheaper and more easily accessible to the people.Read also: <a href="https://www.nepalitimes.com/banner/bypassing-trump-on-climate-action/" target="_blank" rel="noopener">Bypassing Trump on climate change</a>, Kunda DixitMitigation or adaptation?Mitigation, adaptation and development have to go together. There is no point in making distinction. Mitigation measures to reduce fossil fuel dependence eventually contributes to development and resilience. For example: electricity generated from hydropower improves the living standard of the people while also reducing greenhouse gases.Initially there was a misconception that mitigation was not for the developing countries. We know now that everyone has to be involved in the global mitigation process, not just to save the planet but also to save our economies.All of this requires good leadership. Unless there is a political guidance, whatever resources we have might be either least used or abused. Good governance is a key to better planning and implementation to cope with climate impact.

From playing victim to proactive leadership on climate

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25cd9c7e80680e0439e1jpeg.jpg" alt="" width="1400" height="1050"/><figcaption>Photo: GEORGE MALLORY</figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101148/636a25d09c7e80680e0439e2jpeg.jpg" alt="" width="1200" height="900"><figcaption> </figcaption></figure>Unprecedented in recorded history, there was a 100 degree C difference in temperature between the northern and southern hemispheres last week. While parts of Australia baked in record 50oC heat, in North America hell froze over with the mercury plunging to -50oC.Somewhere in between in Nepal, <a href="https://www.nepalitimes.com/latest/snowbound-rara/" target="_blank" rel="noopener">heavy winter snow blanketed the mountains</a> last week after a break of almost 12 years. The fact that such snowfall was seen as ‘abnormal’, indicated just how far from the ‘normal’ we have deviated.The return of winter snow in Nepal and the simultaneous extreme hot and cold in the antipodes actually proves the impact on weather patterns brought by <a href="https://www.nepalitimes.com/editorial/climate-climax/" target="_blank" rel="noopener">climate change</a>. Most climate models agree that the <a href="https://www.nepalitimes.com/opinion/decarbonise-now/" target="_blank" rel="noopener">rise in global average temperature</a> due to the continued emission of carbon dioxide will result in higher rates of temperature rise over land, and particularly in the <a href="https://www.nepalitimes.com/banner/a-terrifying-assessment-of-himalayan-melting/" target="_blank" rel="noopener">higher Himalayan regions</a>. The snowline has been migrating upward with rainfall replacing snow, and lowered seasonal snow and <a href="https://www.nepalitimes.com/opinion/climate-for-change/the-great-himalayan-thaw/" target="_blank" rel="noopener">ice storage</a> have started limiting melt flow in rivers.Read also:<a href="https://www.nepalitimes.com/banner/a-terrifying-assessment-of-himalayan-melting/" target="_blank" rel="noopener">Terrifying assessment of a Himalayan melting</a>, Kunda Dixit'<a href="https://www.nepalitimes.com/?p=21122&amp;preview=true" target="_blank" rel="noopener">Climate damage</a>', Editorial As rivers originating in <a href="https://www.nepalitimes.com/opinion/nepals-silent-emergency-springs-going-dry/" target="_blank" rel="noopener">the Himalaya start going dry in the summer season</a>, there is serious concern about rising heat. In a few weeks, temperatures across northern South Asia <a href="http://archive.nepalitimes.com/blogs/thebrief/2017/07/19/asia-heating-up/" target="_blank" rel="noopener">will start going up</a>. Day-time summer temperature will reach 40oC+ in many places. Nights will not cool down enough, and humidity will also increase. At higher humidity, the human body cannot release heat through sweat evaporation fast enough to cool itself. Most people cannot remain unprotected in the open for more than 6 hours at temperatures above  370C.A 2014 study of interactions of temperature and humidity in the Indus and Ganga plains by the US-based National Center of Atmospheric Research, and ISET-International found that by 2050, most of June, July and August days and nights will hover above the 370C threshold. A later study by MIT researchers warned of deadly heat waves in the Indo-Gangetic plains, meaning the numbers dying across India, Pakistan and Nepal Tarai in summer will shoot up.Read also:<a href="https://www.nepalitimes.com/editorial/climate-climax/" target="_blank" rel="noopener">Climate climax</a>, Editorial<a href="https://www.nepalitimes.com/opinion/decarbonise-now/" target="_blank" rel="noopener">Decarbonise now</a>, Ajaya Dixit<a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/" target="_blank" rel="noopener">On thin ice in the Khumbu</a>, Kunda DixitThe <a href="https://www.nepalitimes.com/editorial/naturally-nepal/" target="_blank" rel="noopener">rapid degradation of natural ecosystems</a> within and around many of our cities have removed heat sinks. <a href="https://www.nepalitimes.com/banner/poisoning-the-air-we-breathe/" target="_blank" rel="noopener">Vehicular emissions</a>, air conditioners, concrete and asphalt pavements, and <a href="https://www.nepalitimes.com/here-now/open-air/" target="_blank" rel="noopener">air pollution</a> trapping heat between buildings continue to raise the temperature in core cities. These urban heat islands will amplify the impact of global warming, with significant impacts on low-income families and the poor living in substandard housing, lacking safe drinking water, basic energy, and without direct access to air conditioning.Even if air conditioning was affordable for poor and low-income families, running them will require additional energy from over-burdened electricity grids. In Australia’s heat wave last week, the authorities advised residents to delay using washing machines and dishwashers, and requested healthy people to consider keeping their air conditioners at 24oC to save energy. Older model air conditioners also leak HFCs – chemical coolants which are about 7,000 times more potent greenhouse gases than carbon dioxide.Read also:'<a href="https://www.nepalitimes.com/?p=21128&amp;preview=true" target="_blank" rel="noopener">From playing victim to proactive leadership on climate</a>'<a href="https://www.nepalitimes.com/opinion/climate-for-change/the-great-himalayan-thaw/" target="_blank" rel="noopener">The great Himalayan thaw</a>, Ajaya DixitIn Nepal, as <a href="http://archive.nepalitimes.com/article/editorial/climate-climax,3651" target="_blank" rel="noopener">global temperature rises</a>, the lower river valleys of the Siwalik and the Mahabharat as well as Tarai plains will see more days when the safe temperature/humidity threshold will exceed 37OC. Even in Kathmandu, June-July-August will have hotter days as global warming combines with the urban heat bubble to make it uncomfortably humid and unsafe.Nepal’s policies, plans and actions have not yet taken the threat of heat risk seriously. Nor have we begun to  systematically assess changes in local temperatures and humidity regimes.Reducing the threat of increasing heat requires us to carefully rewire the way we design houses, build infrastructure, deliver and manage energy, <a href="https://www.nepalitimes.com/banner/who-now-owns-nepals-forests/" target="_blank" rel="noopener">forests</a>, grow food, and maintain productivity of small land holders and field workers. Shifting to cleaner forms of energy for cooking and <a href="w.nepalitimes.com/here-now/cleaner-air-with-greener-buses/" target="_blank" rel="noopener">public transportation</a> would give us the flexibility required to minimise growing threat of heat, and adapt.Urban and rural municipalities can begin working on solutions without waiting for national policies. Local governments have the authority and their programs must emphasise restoration and conservation of natural ecosystems, water sources, and provide incentive for climate-friendly house design and materials. Public health systems need to be better prepared to respond immediately to the elderly, children and pregnant women with heat stress.Increasing heat and low dry season flow of rivers is going to affect millions living downstream from the Himalaya in Nepal and beyond. In the mid term, developed and giant middle-income countries need to significantly curb emission of greenhouse gases. There is no other way.And while they mitigate carbon use, we in Nepal need to be prepared for low river flows in the dry season, and find ways to minimise the impact of prolonged heat waves. The more we delay taking action, the higher will be the future cost of measures we will have to take to adapt to the heat.Ajaya Dixit is Executive Director of Kathmandu based ISET-Nepal. His monthly column Climate for Change deals with the impact of global warming in Nepal.

Turning on the heat

<figure><img width="1400" height="1045" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25b59c7e80680e0439d9jpeg.jpg" alt=""/><figcaption>Illustration: DIWAKAR CHETTRI</figcaption></figure>Climate change is global, it does not respect national boundaries. Neither should its solution. The only way we can save the biosphere from anthropogenic carbon build-up is to reduce our use of <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/" target="_blank" rel="noopener">fossil fuels</a>. There is no other way.The <a href="https://www.nepalitimes.com/opinion/decarbonise-now/" target="_blank" rel="noopener">latest report</a> from the UN’s Intergovernmental Panel on Climate Change (IPCC) and the findings presented at the Climate Summit in Katowice late last year show that warming trends are <a href="https://www.nepalitimes.com/editorial/climate-climax/" target="_blank" rel="noopener">much worse than we thought</a>. The effect is already seen in the last few years which have been the hottest since records started being kept.Read also:<a href="https://www.nepalitimes.com/banner/a-terrifying-assessment-of-himalayan-melting/" target="_blank" rel="noopener">Terrifying assessment of a Himalayan melting</a>, Kunda Dixit'<a href="https://www.nepalitimes.com/?p=21132&amp;preview=true" target="_blank" rel="noopener">Turning on the heat</a>', Ajaya DixitAs Ajaya Dixit writes in his Nepali Times column this week, last week we saw a 100oC difference between the temperatures in parts of Minnesota and Australia. Then unprecedented floods hit Townsville in Queensland. The polar vortex has frozen North America, while above the Arctic Circle it is unseasonably warm.Here in Kathmandu this week, the International Centre for Integrated Mountain Development (ICIMOD) released its long-awaited <a href="https://www.nepalitimes.com/banner/a-terrifying-assessment-of-himalayan-melting/" target="_blank" rel="noopener">assessment</a> which shows that the Himalayan mountains are melting faster than anyone expected, Altitude Dependent Warming and deposition of pollution particles are <a href="https://www.nepalitimes.com/opinion/climate-for-change/the-great-himalayan-thaw/" target="_blank" rel="noopener">amplifying the thaw</a>.An analysis of the assessment and interview with ICIMOD’s <a href="https://archive.nepalitimes.com/regular-columns/guest-editorial/mountainous-change,887" target="_blank" rel="noopener">David Molden</a> indicate that even a 36% ice loss during the rest of this century will have serious consequences for 1.6 billion people living downstream from the Himalaya. And that is just the best-case scenario, in all probability carbon reduction targets to keep warming within 1.5oC will not be met, meaning that two-thirds of the glaciers will be gone by 2100. Another recent report is even more apocalyptic: 90% of the glaciers below Mt Everest will vanish during this century.Read also:<a href="https://www.nepalitimes.com/editorial/climate-climax/" target="_blank" rel="noopener">Climate climax</a>, Editorial<a href="https://www.nepalitimes.com/opinion/decarbonise-now/" target="_blank" rel="noopener">Decarbonise now</a>, Ajaya DixitNow that we know things are much worse than we thought, what are we going to do about it in? Nepali Times also talked this week with Gebru Jember Endalew, who has just stepped down as chair of the Least Developed Countries Group in the UN climate change negotiation process who is in Kathmandu for a consultative workshop of the Asia-Pacific region.Endalew argues that least-developed, landlocked mountainous countries like Nepal should move on from seeking funds for climate change adaptation, and launch national strategies to build up <a href="http://archive.nepalitimes.com/article/editorial/going-green-environment-day,3064" target="_blank" rel="noopener">carbon stock</a> and <a href="http://archive.nepalitimes.com/article/editorial/a-fossil-economy,1411" target="_blank" rel="noopener">reduce dependence on fossil fuels</a>.Read also:'<a href="https://www.nepalitimes.com/?p=21128&amp;preview=true" target="_blank" rel="noopener">From playing victim to proactive leadership on climate</a>'<a href="https://www.nepalitimes.com/opinion/climate-for-change/the-great-himalayan-thaw/" target="_blank" rel="noopener">The great Himalayan thaw</a>, Ajaya DixitIndeed, what Nepal does or does not do is not going to save the planet. With an annual carbon footprint of 0.12 tons per capita (Qatar’s footprint is 40 tons) Nepal’s contribution is minimal compared to the gas guzzlers. However, Nepal’s petroleum demand is the fastest growing in the region, and has more than <a href="https://www.nepalitimes.com/here-now/the-cost-of-light/" target="_blank" rel="noopener">doubled in the last two years</a>, increasing our trade imbalance with India. Nepal spent Rs90 billion last year in importing petrol, diesel and gas, widening the country’s already yawning trade deficit.The argument that since we did not create the <a href="http://archive.nepalitimes.com/article/editorial/climate-climax,3651" target="_blank" rel="noopener">climate crisis</a>, we should just try to adapt does not hold anymore. Another recent report, State of Climate Action in Nepal says that Nepal also needs to take mitigation action, not only because it will help save our mountains from melting but, much more importantly, to save the country’s fossil-based economy from collapse.Read also: <a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/" target="_blank" rel="noopener">On thin ice in the Khumbu</a>, Kunda Dixit Nepal’s long-suffering people have lived through <a href="http://archive.nepalitimes.com/article/editorial/performance-legitimacy,3505" target="_blank" rel="noopener">poor governance</a>, instability, under-development, poverty and inequality for generations. We have survived droughts, <a href="http://archive.nepalitimes.com/article/editorial/deep-water,3883" target="_blank" rel="noopener">floods</a> and landslides. Adaptation is not a new word for us. And climate change is just the latest crisis to hit Nepal, making all our existing problems worse. It crowds out the other crises we face because it is treated as a stand-alone problem.As Endelew eloquently argues, we need to move beyond the victim narrative in international negotiations and stop blaming historical emissions. As resurgent landlocked countries like Ethiopia and Rwanda have proven, in the final analysis it all boils down to national leadership, and the political will to clean up our own act first.10 years ago this weekThe Editorial in issue #437 of 6-12 February 2009 is so prescient in the context of next month’s Nepal Investment Summit we present the following extract from it:In his address to the nation last week, Prime Minister Pushpa Kamal Dahal bemoaned that frequent strikes were scaring away investors. He said the tendency of Nepalis to hit the streets at the slightest pretext needed to be stopped once and for all. But what is Prime Minister Dahal going to do about it? He must know it is goons from his own party who are undermining his efforts to woo investors. The head of the Maoist student wing publicly threatened last week to "break the backbones" of anyone daring to oppose his union. Since they have done it before, nobody doubts their ability to carry out the threat.Union militancy has now become the single biggest worry of the private sector. Many entrepreneurs have bought peace at prices that nobody knows about. It is of no concern to the union mafia that these institutions already pay much higher wages than the minimum fixed by the government. But then it is not really about wages, is it? It is about control and extortion.

Climate damage

It was 30 years ago this month that investment into ‘Baby Arun’, the 201MW first phase of the run-of-river Arun III project, was brought to a screeching halt when the World Bank officially withdrew its support. This brought about profound and fundamental changes in the way Nepal’s power sector subsequently developed. Nepalis suffered debilitating power outages between 2008-2016 due to shortages attributable to the cancellation. At the same time, the gap left by Baby Arun was filled by private sector investment in ways that were not obvious in 1995. It took 30 years, but in many ways Nepal’s power sector is more healthy today than it has ever been, and likely better than if the project was built as planned. At a projected budget of $1.08 billion, Baby Arun would have cost the equivalent of Nepal’s entire annual government expenditure in 1995. It was to be funded by concessional grants and loans from multilateral and bilateral funders, including the World Bank, Asian Development Bank (ADB), KfW, and investment by the government itself. At the time, Nepal’s total electricity generation capacity was only 230MW, and the trajectory of the power sector changed dramatically following the cancellation. In the past 30 years, $5.4 billion has been invested in the power sector led by private investors, and much of it from domestic banks and pension funds (table, right).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0.jpg" data-media-id="editor_0" data-image-id="20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0" data-rendition-name="original" width="984" height="521" loading="lazy" alt="30 years after Baby Arun"> </figure>  Nearly 70% of the new megawatts generated were by private independent power producers (IPP) in the past 30 years, while the Nepal Electricity Authority (NEA) and its subsidiary companies added 30% of new capacity. Almost 80% of total debt financing came from domestic banks and employee retirement funds. International assistance for power generation dropped dramatically over this time, accounting for only about 15% of investment. Before 1995 new power projects used to be entirely dependent on foreign aid. Since 1995, 63% of new generation came from 171 small hydropower projects with an average capacity of 12MW, while 4% was from 21 solar photovoltaic and biomass projects developed by local IPPs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097.jpg" data-media-id="editor_1" data-image-id="20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097" data-rendition-name="original" width="988" height="503" loading="lazy" alt="30 years after Baby Arun"> </figure>  Over three decades, investment in Nepal’s power supply came primarily from new actors that had never before been involved in this sector. The rate of electrification rose from 10% to close to 100% -- sufficient to meet domestic needs during most of the year, and in 2024 made Nepal a net exporter of power to India for the first time in its history. As practically all the new investment in this period went into run-of-river hydro and solar projects, rather than into hydropower reservoirs with seasonal storage, Nepal continues to rely on imports from India during the dry winter months. Surplus electricity generation for export during the monsoon is slated to grow rapidly as another 200 solar and hydro projects are nearing completion of construction, with over 5,000MW of power capacity. Private Power The cancellation of Baby Arun inadvertently accelerated the entry of the private sector into Nepal’s power generation. The government enacted the Electricity Act in 1992 to attract private IPPs and diversify away from total dependence from international aid, but had been struggling for several years to conclude the first agreement with the 60MW Khimti Project. There remained a large gap between the tariff that the government thought was reasonable versus what was demanded by the Norwegian investor Statkraft, and the private sector arms of the World Bank and ADB that were financing the project. The shock of World Bank withdrawal from Baby Arun put tremendous pressure on the government, then led by the UML as it is now. The Bank’s decision to terminate its involvement was ostensibly, at least partially, taken in response to a letter critiquing the project sent by the UML while it was in the opposition.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347.jpg" data-media-id="editor_2" data-image-id="20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347" data-rendition-name="original" width="949" height="446" loading="lazy" alt="30 years after Baby Arun"> <figcaption>BAD NEWS: Newspaper clippings from the early 90s on tender announcement ahead of loan approval (left) and secrecy surrounding environmental assessment (centre) of Arun III before its eventual cancellation in August 1995.</figcaption> </figure>  The government was forced to soften its position and agree to the investors’ terms following the cancellation of Baby Arun. It directed NEA to sign a power purchase agreement (PPA) with Khimti. It was concluded in January 1996, and this was followed by a second PPA in July 1996 with Panda Energy, the American developer of the 45MW Upper Bhotekosi project. The expensive USD-denominated agreements to buy power from two international private producers, with price escalation clauses tied to the New York Consumer Price Index, sent alarm bells ringing. There was worry that the country was heading towards unaffordable tariff rates for the consumer and potential bankruptcy for NEA as a result of inevitable future weakening of the Nepali Rupee. The government had strong-armed NEA into signing these agreements, and realised that concessionary financing terms that Nepal was used to receiving for public sector projects such as Baby Arun and Kali Gandaki A, that included below-market interest rates and 40 years repayment period with a 10 year grace period before starting repayment, were not the norm for private sector investors. Nepal’s status as a less than attractive destination for foreign investment meant that the country had few options but to accept expensive dollar PPAs from international developers with the high commercial interest rates and short repayment periods imposed by their banks because of high investment risks. In the end, the government ended up having to additionally provide a sovereign guarantee in order to close the deal at the insistence of the lenders – committing it to repayment in case NEA defaulted on paying the IPPs. It is reasonable to assume that the extraordinarily high political cost of agreeing to the PPA terms would have meant that no government would have willingly agreed to them in 1995 had it not suffered the trauma of the loss of concessionary-financed public sector projects as large as the Baby Arun. It has taken NEA 25 years to consider offering dollar-denominated PPAs again: to cover the foreign exchange portion of the investment in the 216MW Upper Trisuli-1 and 120MW Rasuwa-Bhotekosi Hydropower projects. It seemed unlikely at the time, but it turned out that the dire situation Nepal found itself in 1995 planted the seed to mobilise investment for affordable power from within the country. Double Whammy After the dual shock of first losing investment in Baby Arun and having to sign expensive power purchase agreements with international IPPs, the first proposal for an alternative strategy to mitigate the risk of foreign currency investment into hydropower projects came from a group of engineers within the Arun III team at NEA. Led by <a href="https://archive.nepalitimes.com/news.php?id=4900">Deputy Director Damber Bahadur Nepali,</a> engineers convinced the leadership that NEA needed to invest in a subsidiary company to build a series of locally-designed and domestically-financed projects that would have lower cost with rupee-denominated PPAs. They registered the Chilime Hydropower Company Limited (CHCL) in October 1995 with 51% shares from NEA, 25% from its employees, and 24% available for the general public, 10% of which was prioritised for local residents at the project site. The 22.1MW project is in Rasuwa on a tributary of the Trisuli, and mobilised debt financing from the Employee Provident Fund, which manages retirement savings for employees of the government, public enterprises, and private sector institutions. CHCL’s experience showed that NEA employees themselves believed that individual hydropower projects with operational independence from NEA could be developed profitably in Nepal by its own engineers -- and they were willing to put their own money on the line. Chilime also demonstrated that there was money in the country, particularly with retirement funds, looking for opportunities for long-term investments. Following completion of Chilime in 2003, CHCL led the formation of three other NEA subsidiary companies that completed construction in 2023 and 2024, producing 168.3MW using fully rupee-tied investment. NEA’s largest subsidiary, the Upper Tamakosi Hydropower Limited, completed construction of its 456MW plant in 2021.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3.jpg" data-media-id="editor_4" data-image-id="20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3" data-rendition-name="original" width="3000" height="1571" loading="lazy" alt="30 Years after Baby Arun"> <figcaption>DAMNED: The $700 million 456MW Upper Tamakosi built entirely with domestic funds before it was destroyed by the September floods last year. </figcaption> </figure>  There were some delays and cost overruns on this run-of-river project, the largest in the country with a final cost of over $700 million -- all of it sourced domestically. The five subsidiary companies launched by NEA have produced almost two times as much new power as NEA has over the past 30 years. Seven other NEA subsidiaries are currently constructing projects to add another 474MW to the national grid. But even more important than NEA subsidiaries have been local IPPs: Nepali companies which have over the past three decades enthusiastically entered the hydropower sector. From a regulatory perspective, the credit for mobilising domestic private investment to engage in power generation goes to Minister of Water Resources Shailaja Acharya, who in 1998 offered a flat feed-in-tariff of Rs4/kWh for hydropower projects under 10MW. This upfront offer removed a major barrier that early developers had faced of having to spend money to carry out a detailed feasibility study before they could even start tariff negotiations with NEA. She had laid the foundation stone of the Chilime project, and proved to be the champion of opening up the sector for domestic IPPs. The guarantee of a PPA with a fixed tariff, irrespective of project specifications, gave small power developers the confidence to apply for survey licenses and invest in feasibility studies so they could directly approach commercial banks and make a case for their project producing required revenue to repay loans. Domestic IPPs started adding power to the national grid in 2002. Their contribution was initially modest, and first projects were small and commercial lenders who took time to be confident about providing debt financing to a sector which had previously not been considered suitable for private sector investment. While the first 10 years were slow, with less than 10MW being added to the grid each year, this increased twenty fold over the following ten years, resulting in the equivalent of a Baby Arun being added by Nepali IPPs to the grid each year. A total of 84 IPPs added 232MW, 328 MW, 454MW, and 400MW of new generation to the grid in 2021-2024 (graph). There was explosive, exponential growth as domestic developers have surged ahead to account for 76% of the new megawatts added to the grid since 2020, compared to 24% by NEA and its subsidiary companies. The megawatts that IPPs are adding have followed the classic ‘hockey stick curve’ with the ‘breakout point’, signaling the rapid growth phase in 2020. Private producers are expected to accelerate new generation in the coming years with 300 solar and hydropower projects adding 11,000MW. Another 166 hydropower and 96 solar projects are currently in the survey stage, and are in line to add another 11,000MW to the construction pipeline. One major challenge is finding financing required for the projects. Domestic investment will no longer be sufficient to finance this ambitious pipeline of renewable energy projects. Project developers as well as NEA and the Electricity Regulatory Commission will have to leverage their substantial experience accumulated through the construction of over 200 projects to attract regional and international investment and hedge the risks of dollar-denominated PPAs. Following the cancellation of Baby Arun, <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal">Nepal developed a highly distributed power sector</a>. The national electricity grid is currently supplied with power from a remarkably decentralised array of hundreds of hydropower and solar photovoltaic projects spread across 43 districts and all seven provinces.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b.jpg" data-media-id="editor_6" data-image-id="20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b" data-rendition-name="original" width="1228" height="867" loading="lazy" alt="30 years after Baby Arun"> </figure>  This presents a sharp contrast to the pathway of a few large public sector hydropower projects with a sprinkling of private sector projects that was envisioned as part of NEA’s investment planning when Baby Arun was being considered the front runner for investment. The strategy then was to allow public sector investment in a few large hydropower projects with thermal plants to fill the gap. Knowing what we know now about acceleration of climate change impacts and increased extreme weather events, following this path would have made Nepal’s power sector highly vulnerable. Decentralised generation greatly improves the resilience of Nepal’s power supply as damage to power plants in one part of the country need not affect other areas that have their own generation. Following the investment plan where over two thirds of the country’s power supply would have come from power plants on the Arun River, would have greatly imperiled Nepal’s energy security. All rivers in Nepal are susceptible to flooding from cloudbursts made more frequent by climate change. The Arun River which is fed by glaciers in Tibet is also at risk to glacial lake outburst floods. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal. <h2>Decentralised and Diversified</h2> In the 30 years since the cancellation of ‘Baby Arun’: Hydropower projects constructed cover capacities ranging from less than 1MW to 456MW and developed by IPPs from across the country with strong local involvement in purchasing equity shares. Renewable energy sources contributed to the generation mix through solar IPPs that further contribute to climate resilience, and cover shortfalls during low rainfall. The government is committed to solar contributing 10% of the power on the grid. Increasing solar beyond this target and providing incentives to project developers to invest in utility-scale battery storage would further improve resilience. BIG ARUN: The 900MW Arun III project under construction since 2018 at Num in Sankhuwasabha (pictured, below) is a separate initiative by a different project developer using a different financing modality. The ‘Baby Arun’ version of Arun III was cancelled in 1995.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb.jpg" data-media-id="editor_7" data-image-id="20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb" data-rendition-name="original" width="1750" height="1312" loading="lazy" alt="30 Years after Baby Arun"> </figure>

30 years after Baby Arun

This is the 72nd episode of Diaspora Diaries, a Nepali Times series in collaboration with Migration Lab providing a platform to share experiences of living, working and studying abroad. My father ran a store and that is where I spent all my time till Grade 6. Doing my homework. Serving customers. I then moved to my maternal grandparents’ house because I used to get along with my cousin who was a year older than me. We did everything together, and were best friends. We took turns studying: I was a night owl, and he was an early riser. Before I went to bed after studying all night, I woke him up. My mother was 44 when I was born, the same year my eldest brother got married. My sister-in-law becoming a part of our family was how my mother referenced my age. I liked making money, and was always a hustler. In Grade 7, I learnt to handle a tractor and helped my brother-in-law to plough, earning Rs10 a day. As I got better, he paid me more. By Grade 9, I was already making Rs500 per day, but had to slow down to prepare for my exams. From an early age I knew I did not want a 9-5 job. There just wasn’t enough money in it. I wanted to get into business, and compared my brother who worked in the post office and what businessmen made. It did not help that my brother was honest, and never took bribes. A friend and I made money selling cheap Chinese phones at a premium to our friends. We blasted music on the phones and pretended that we were giving them a discount. After SLC, I started teaching math and other subjects. I was soon a shareholder in the same school and in the evening I was involved in our family’s floriculture business, growing amaranth and marigold for garlands.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4.jpg" data-media-id="editor_0" data-image-id="20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4" data-rendition-name="original" width="955" height="1314" loading="lazy" alt="Diaspora Diaries 72"> </figure>  It was then that a friend suggested we learn the Korean language. We could be earning significantly higher in Korea for similar efforts. I had no plans to go abroad but he convinced me. I did not know anything about Korea, and was scolded at the language institute when I asked someone to point Korea on the map.&nbsp; It was only there that I learnt you had to pass an exam for the Korean Employment Permit System (EPS), and pay for language classes. After a week, I decided it was not for me and dropped out. But my friend convinced me to give it one more try. I did not prepare much for the exam, and it was no surprise that I failed. But it was just by one mark, and people would pity me for failing “just by one mark”. It was a brand of failure. It hurt my ego. I had to turn things around by taking the exams seriously, and locked myself up to study hard.&nbsp; Even when we had visitors, my wife told them I was not home. If I was not in my room learning Korean, I would be with a group of ten of us test-takers comparing notes and practicing late into the night. The exam was difficult, but this time I passed, the only one in my group who did.&nbsp; As someone who never liked the idea of doing a job, I still had my doubts about going to Korea. It did not help that one of my acquaintances had returned a month after he had left, and he discouraged me from migrating given that I was already making good money in Nepal.&nbsp; But my wife suggested that I give it a shot since I had worked so hard for it. And if it really turned out not to be my cup of tea, I could always return. What did I have to lose, I thought, at least I would get to visit Korea. My job there was in an electrical company that made circuit boards. I worked all day, earned good money. In the evenings, I kept myself busy with my real estate business back in Nepal. I had learnt the tricks of the trade from fellow real estate agents back home, but at the time did not have the capital to invest.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5.jpg" data-media-id="editor_1" data-image-id="20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Diaspora Diaries 72"> </figure>  In Korea, it helped that I had salary records that allowed me to get loans from financial institutions both in Korea and in Nepal. Ultimately, I started earning more from my real estate deals in Nepal than from my job in Korea. This was all thanks to my ability to take loans because of the EPS scheme. My wife has been managing the flower business while I was away. My finances grew stronger over the eight years I was in Korea. I paid off the loans that I had borrowed to buy land. But real estate did not satisfy me entirely. I wondered: what is my brand? What will I be known for? What is my contribution to society? Real estate is for wealth, but that is about it. I needed to sell one piece of land and use the revenue to start a venture. I took classes in business, and returned to Nepal six months ago and got back to my family’s ancestral roots in floriculture. In Nepal too, I am continuing the entrepreneurship training I had started in Korea with the Bridge International. Such exposure helps us reflect on our business such as our branding, vision, and proactive aspects like the importance of strong recordkeeping.&nbsp; I am now working to upgrade and expand my floriculture business. With a friend who is still in Korea I am building a cooling room to increase the shelf-life of flowers and other produce and set up a market in my village where others can sell their produce. Floriculture is our primary business, but it is seasonal and earns good money only during festivals like Tihar.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415.jpg" data-media-id="editor_2" data-image-id="20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Diaspora Diaries 72"> </figure>  So, I grow tomatoes to ensure year-round earnings. I also am engaged in other businesses like real estate and online shopping. I work round the clock in Nepal — a strong work ethic is something I picked up in Korea.&nbsp; My Korean bosses would work alongside us, that motivated us. I work just as hard in Nepal as I did in Korea. People here often ask me why I am pushing myself so hard. But making garlands comes easy to me, it is work my forebears were involved in. My childhood memories are about plucking flowers with my sister. I have a comparative advantage in this work. It comes naturally to me, it is easy and I enjoy it. And sometimes, if there are too many garlands to make, I can multitask while holding meetings. My fingers just fly. I am good at this job, but my wife is even better and faster.&nbsp; When there is too much load, we can also outsource the work. To be known as the flower guy would be great personal branding. The मखमली guy. Or the सयपत्री guy. I decided to come home for just this with a one-way ticket. “अब पासा: जाँदैन ल्हासा!” &nbsp;

The flower guy

It cannot be a coincidence that after pushing bills to constrict freedom of expression and allow greater <a href="https://nepalitimes.com/news/security-or-espionage">surveillance of citizens</a>, Nepal’s government is now tightening controls on civil society.
In a <a href="https://nepalitimes.com/opinion/guest-editorial/command-and-control">series of recent moves</a> journalists have been sued for contempt of court, imprisoned for YouTube videos, or ordered by courts to desist from investigating corrupt officials.
An amendment to the Print and Publications Act that would hand the power to shut online media to the Chief District Officer (CDO). Another draft Bill would allow a political appointee to head a new Media Council with the power to revoke a journalist’s license. The draft counter-intelligence Bill would let random officials to arbitrarily tap phones, read emails and trail citizens.
Now comes yet another draft Bill that would replace the <a href="https://archive.nepalitimes.com/news.php?id=10675">Social Welfare Council (SWC)</a> with direct government control over registration, regulation, and management of non-governmental organisations, nonprofits and charities. There are more than 54,000 NGOs, 200 international NGOs registered with the SWC.
The draft makes civil society organisations needlessly jump through hoops to carry out work that complements the government in the social sector. Critics say the Bill was drafted without any consultation with <a href="https://nepalitimes.com/opinion/comment/nepal-s-rights-groups-must-step-up-4r4z6ck4">civic groups</a>.
“This Bill’s content is questionable whether it intends to allow for civil society organisations in Nepal a free space to operate,” concludes Dr SP Kalaunee, Country Representative of BlinkNow Foundation and Chair of the Association of International NGOs in Nepal (AIN). “The draft seems oriented towards controling rather than facilitating the work of civil society organisations.”
The Bill will be open for feedback from the public, and integrates the National Directives Act (1961), Association Registration Act (1977), and the Social Welfare Act (1992) and proposes dissolving the SWC and replacing it with a new Social Welfare Department under the Ministry of Women, Children and Senior Citizens.
Non-government groups will now be required to get approval from the Registrar Office, the CDO or the provincial government depending on their area of operation. Those working across provinces will have to get permission from the federal government. &nbsp;
The government says the Bill is intended to vet organisations to see if they are engaged in espionage, violate national security, assist a foreign state, commit treason, cause strife between federal units, or incite communal violence.&nbsp;
CSOs working in Nepal have long called for legislation to better facilitate their work, minimise administrative and bureaucratic red tape which have posed operational challenges. But they are opposed to such drastic control.&nbsp;
Read also: <a href="https://nepalitimes.com/banner/the-crow-and-the-scarecrow">The crow and the scarecrow</a>, Om Astha Rai
The NGO Federation of Nepal also issued a statement this week calling the Bill ‘retrograde and cumbersome’. It added: ‘Most of its provisions are intended to further constrain and control civil society organisations rather than facilitate and strengthen them, and reduce the role of citizen participation … it is an attack on our civil liberties, inclusivity, and transparency, and curtails our <a href="https://archive.nepalitimes.com/news.php?id=5156">democratic values and constitutional rights</a>.’ &nbsp;
<a href="about:blank">Nepal’s graduation</a> from least-developed country status next year may mean less aid for Nepal, and higher interest rates on loans from multilateral creditors. The <a href="https://nepalitimes.com/news/how-usaid-cut-affects-nepal">closure of USAID </a>and reduction in bilateral grants means the work of INGOs will be even more vital – especially to meet its <a href="https://nepalitimes.com/here-now/target-2030-for-maternal-and-newborn-health">SDG targets by 2030</a>.&nbsp;
“We are competing with other countries at a time when the global aid environment is shrinking, so the support we receive is directly dependent on a conducive environment for INGOs to operate and function,” says Kalaunee. “INGOs follow regulations of the nations they operate in, they will not protest or wait around for governments to change their minds or policies.”
Social safety net
Since 1977, the work of non-governmental actors in Nepal has been regulated by the Social Service National Coordination Council (SSNCC) chaired by Queen Aishwarya.
After the <a href="https://nepalitimes.com/banner/one-moment-30-years-ago-today">1990 People’s Movement</a>, King Birendra set up the Social Welfare Council (SWC) as an autonomous body in 1992 through the Social Welfare Act. But since then the SWC has been dogged by controversy and allegations of corruption and extortion.
In 2018, the Commission for the Investigation of Abuse of Authority (CIAA) filed a Rs315 million corruption case against 14 individuals, including the Minister of Women, Children and Social Welfare and SWC chair Badri Prasad Neupane and other officials for violating public procurement laws to rent out three hectares of its property around Bhrikuti Mandap.
Civil society groups have for years called for reforms in the SWC, and a report was drawn up to restructure it before this Bill proposed its dissolution. INGOs in particular will now have to go through the Social Welfare Department and multiple ministries for permissions.
A particularly objectionable provision in the draft stipulates that NGOs must have a Board of Director made up almost entirely of secretaries of various ministries. The NGO Federation has urged the government to take a civil society-friendly approach and not tangle its work in red tape and control. It says the government has no option but to revise the bill in its current form.
“Civil society organisations need an open space to operate, and an autonomous body to oversee them,” says Kalaunee. “Non-government organisations support in the areas prioritised by the government but by definition they cannot be a part of government.”

Big, beautiful Bills

Nepal’s leaders often make grandiose promises that they will turn the country into Switzerland within a decade. We will be lucky if Nepal could even attain the per capita GDP of Swaziland.
Becoming another Switzerland or Singapore is the boastful fantasy of <a href="https://nepalitimes.com/editorial/politics-as-usual">incompetent serial politicians</a> who keep getting themselves elected again and again.&nbsp;
So, what has to change?&nbsp;
It has to be <a href="https://nepalitimes.com/here-now/looking-ahead-to-nepal-s-2027-elections">through elections</a>, but there is spreading distrust of the democratic system bordering on nihilism among Nepalis. The three main parties must have sensed by now that they are doomed if they do not get their act together and inject new untainted blood into tickets in 2027.&nbsp;
One election will not clean up the muck that has accumulated over the past 35 years, but we have to start with the next one. Politics cannot be business as usual any more, voters are fed up with what is on offer.&nbsp;
Over <a href="https://nepalitimes.com/news/push-factors-driving-nepalis-out">one-third of young Nepalis are not even in Nepal</a>, and they are not allowed to cast their ballots. But we saw in 2022 that the diaspora can have an impact on how their folks vote back home, and this trend is bound to increase in 2027. It would finally break the vote banks on which the established parties have relied on to perpetuate misrule.
Nepal needs solutions urgently to address snowballing crises on multiple fronts: social inequity, joblessness and low purchasing power, failing agriculture, breakdown of services, a pandemic of corruption feeding mal-development, low capital formation, environmental woes, and to top it all off — a runaway climate emergency.&nbsp;
Yet, there are bright spots, many of which happened despite political instability: falling poverty rate, improved health and education status, increase in forest cover, conservation successes, growth in hydropower.&nbsp;
Just imagine how much further ahead Nepal would be if it was not plagued with chronic mismanagement, <a href="https://nepalitimes.com/opinion/higher-corruption-in-high-places">corruption and conflict</a>.
It is because of these modest gains that <a href="https://nepalitimes.com/news/not-poor-but-not-rich">Nepal will graduate</a> from a ‘least-developed’ to a ‘developing country’ in November 2026, and transition to middle-income status by 2030 — even though it still has an annual per capita income below the $1,306 threshold.
The driving force for this growth comes almost entirely from remittances which make up 26% of the GDP — the third highest in the world. Inflows officially hit $12.54 billion last year, and nearly 65% of households depend on money <a href="https://nepalitimes.com/editorial/the-new-equaliser">family members send home</a>, spending most of it on basic needs.
A recent discussion at the Institute for Integrated Development Studies (IIDS) titled Diaspora Dialogue: Innovation, Identity and Global Influence looked at leveraging the 4 million Nepalis who live and work abroad to spur investment and growth.
IIDS has been involved since 1979 in policy advocacy to propose sustainable solutions to governments under at least four different political systems. The fact that we are in the state we are in now must mean that not many of the policy priorities the IIDS put forward in the past 40 years have been properly implemented.&nbsp;
For decades, we’ve heard that Nepal’s path to economic growth lies in <a href="https://nepalitimes.com/opinion/people-power/nepal-can-level-up-tourism-with-electricity">hydropower and tourism</a>, but that narrative has to change, noted IIDS Executive Director Biswash Gauchan.&nbsp;
“Forget falling water, forest and forex,” he said. “Nepal has to move to a knowledge economy, boost investment and look beyond our neighbours to the diaspora.”&nbsp;
There is an artificial bubble in real estate and banking due to remittances. Even if Nepal gets 3 million tourists a year and exports most its hydropower it will not be enough to take the annual per capita income to $6,000 by 2050.
A knowledge economy means thinking beyond enrolment rates and basic literacy to quality education relevant to the <a href="https://nepalitimes.com/opinion/investing-in-people">human resources the country needs</a>. This will ensure jobs at home in import-substitution agriculture, value-added manufacturing and export of services.
And that is where global Nepalis come in. Connectivity means the end of geography, and diaspora talent and capital can be harnessed for investment and involvement in innovation to take Nepal into a <a href="https://nepalitimes.com/here-now/smart-ageing-is-nepal-s-next-frontier">digital future</a>.&nbsp;
This needs a paradigm shift away from a rent-seeking state to a ‘whole-of-government’ strategy that can only come from a new crop of competent technocrats with integrity and vision to seize the moment. They have to see migration not as 'brain drain' but as 'brain circulation'.
Those Nepalis exist. In Nepal and all over the world. Swaziland’s anuual per capita income is $4,000 — think we can do it <a href="https://nepalitimes.com/here-now/nepal-in-2050-wk6r5r1j">by 2050</a>?

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