<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b91829c7e80680e06f0f3jpeg.jpg" alt="" width="1500" height="1109"/><figcaption>Photo: JANA ASENBRENNEROVA</figcaption></figure>This year’s World Environment Day theme ‘Ecosystem Restoration’ highlights the importance of protecting and reviving the natural habitats of living beings to restore our ecosystems.This year, 5 June also marks the formal start of the UN Decade for Ecosystem Restoration which aims to prevent, halt and reverse the degradation of nature on every continent and every ocean. <a href="https://www.iucn.org/sites/dev/files/import/downloads/payment_for_ecosystem_services_in_nepal__prospect__practice_and_process.pdf" target="_blank" rel="noopener noreferrer">Ecosystem restoration</a> is important to combat climate change, end poverty and prevent mass extinction of species.Food, climate regulation, soil conservation, landscape conservation are some of the 24 categories of ecosystem services that play a vital role in global and national economies which have been <a href="https://www.iucn.org/sites/dev/files/import/downloads/payment_for_ecosystem_services_in_nepal__prospect__practice_and_process.pdf" target="_blank" rel="noopener noreferrer">identified</a> by the Millennium Ecosystem Assessment (MEA).Some of the main <a href="https://www.researchgate.net/publication/321185248_OVERVIEW_OF_ECOSYSTEM_SERVICES_IN_NEPAL" target="_blank" rel="noopener noreferrer">benefits</a> of the <a href="https://www.cbd.int/doc/world/np/np-nr-05-en.pdf" target="_blank" rel="noopener noreferrer">118</a> ecosystems categorised in Nepal include maintaining air quality from forest ecosystems, climate regulation through absorption of greenhouse gases, recharging groundwater, assisting in agroforestry by heling natural pollination, <a href="https://www.nepalitimes.com/banner/between-existence-and-extinction-in-nepal/" target="_blank" rel="noopener noreferrer">biodiversity protection</a>, providing food, firewood, biomass and medicinal herbs for local communities.Ecosystems also play a significant role in cultural services such as recreation and religious pilgrimage, and eco-tourism in Nepal. Such services provide livelihood and an increase in quality of life for millions of Nepalis.Nepal is part of the ratified Paris Agreement and has submitted its second Nationally Determined Contribution (NDC) that aims to keep the global temperature to limit the global temperature to 1.5°C above industrial-era and zero greenhouse emission by 2050. Nepal has also signed the Kyoto Protocol, Sustainable Development Goals (SDG), the Convention on Biological Diversity (CBD).Climate change exacerbates all the other problems that Nepalis face with their natural-resource based livelihoods, agriculture-based economy and poverty, illiteracy and social exclusion.  Despite having negligible contribution to the global greenhouse emission, Nepal is the fourth most vulnerable country to climate change.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b91859c7e80680e06f0f4jpeg.jpg" alt="" width="535" height="279">Overexploitation, illegal and unsustainable harvesting practices, encroachment, unplanned infrastructure development are some causes leading to the loss and degradation of forests. The <a href="https://www.nepalitimes.com/here-now/business-bureaucracy-and-politicians-all-plundering-the-chure/" target="_blank" rel="noopener noreferrer">Chure Hills</a> are already over-exploited, resulting in increasing water scarcity in Tarai.On top of all this, the climate crisis has complicated ecosystem management. An increase in temperature and precipitation patterns means vegetation and the species range are moving to higher altitudes.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b91869c7e80680e06f0f5jpeg.jpg" alt="" width="1328" height="1094">There are ways to address this. Terrace farming, plantations, controlled grazing, improved forest management practices, adoption of bio-gas, and the ban on hunting and fishing in protected areas.“Nepal has established an impressive system of conservation of biodiversity, focusing on species, ecosystems, habitats, and biomes over four decades,” says Pem Kandel, Secretary at the Ministry of Forests and Environment (MoFE). “Local communities outside of the protected areas are also conserving the ecological integrity of Nepal’s ecosystems.”Globally as well as locally, <a href="https://www.iied.org/eba-evidence-policy-nepal" target="_blank" rel="noopener noreferrer">Ecosystem-based Adaptation (EbA</a>) is the key to addressing the impact of the climate crisis by using biodiversity and ecosystem protection as a way to live with changes in climate and weather.One example of EbA in Nepal is the Panchase Protected Forest Area near Pokhara where local communities have <a href="https://panorama.solutions/en/solution/using-local-knowledge-improve-water-availability-panchase-nepal" target="_blank" rel="noopener noreferrer">revived ponds</a> for rainwater harvesting and recharging groundwater. Using locally available soil and stone, the community restored natural ponds and protected them from encroachment.“Just reviving a pond can bring back traditional conservation knowledge, restore the ecosystem and provide downstream benefits,” says Dil Bahadur Bhattarai of the Panchase Protected Forest.Pokhara Valley is also a pioneer in another innovative scheme called <a href="http://archive.nepalitimes.com/news.php?id=18437#.YLmM9C8RoWo" target="_blank" rel="noopener noreferrer">Payment for Ecosystem Services</a> which makes nature-friendly practices economically sustainable. Essentially it means downstream communities pay those up the mountain for the benefits they accrue from the protection of the ecosystem.For example, villages that have protected their forests have helped communities that depend on fishing on one of Pokhara’s lakes, Rupa<a href="https://www.researchgate.net/publication/242079996_Towards_an_innovative_approach_to_integrated_wetland_management_in_Rupa_Lake_Area_of_Nepal" target="_blank" rel="noopener noreferrer"> Tal</a> by reducing sedimentation, pollution and conserving groundwater. The cooperative pays a percentage of the revenue it earns from aquaculture on the lake to communities upstream for protecting the forest.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b918a9c7e80680e06f0f6jpeg.jpg" alt="" width="401" height="605"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b918b9c7e80680e06f0f7jpeg.jpg" alt="" width="641" height="424">Photos: LI-BIRDThe Rupa Tal initiative was designed by LI-BIRD (Local Initiatives for Biodiversity Research and Development) a Pokhara-based non-profit that has done extensive work on agrobiodiversity conservation and ecosystem restoration to improve local livelihoods."The increase in fish productivity, the yearly increase in net profits for the Rupa Lake Restoration and Fishery Cooperative and other lakes in Pokhara’s Lake Cluster such as the Begnas, Khaste, Maidi, Dipang are replicating Rupa’s successes with its Payment for Ecosystem Service,” says LI-BIRD’s Balaram Thapa.<a href="https://cdafn.org.np/wp-content/uploads/2020/10/CDAFN-CG-Best-Practices-Publication.pdf" target="_blank" rel="noopener noreferrer">Riverbank farming</a> in Mohattori is another of Nepal’s best practices in ecosystem services. Upstream conservation through reforestation, water conservation, and flood control, communities downstream were able to re-cultivate on floodplains not only providing economic welfare but also conserving the riverine ecosystem.With limited resources, Nepal has conflicting and competing priorities such as food security, livelihoods, development, infrastructure, and protecting land and livestock. Ecosystem protection is not high on the list of priorities.Nepal is now working with its international partners on a green post-Covid recovery framework that addresses climate impact, improve livelihoods, and build resilience.“This support framework aims to accelerate low-carbon, climate-resilient development by prioritising green job creation and investment to maximise Nepal’s growth, reduce emissions and vulnerability, and is sustainable,” says Simon Lucas of the Foreign, Commonwealth and Development Office (FCDO) in Kathmandu.Every dollar spent on ecosystem restoration can create up to <a href="https://www.worldenvironmentday.global/about/ecosystem-restoration" target="_blank" rel="noopener noreferrer">30 dollars</a> in economic benefit. The use of nature-based solutions not only protects the environment, but provides economic benefit to local communities.As the experience of Pokhara and Mahottari have shown, protecting the ecosystem preserves biodiversity, conserves natural resources, strengthens local economies and allows local people to adapt to the climate crisis.Diya Rijal is a communication consultant for the UK Government-funded Policy and Institutions Facility.

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Economic benefits of saving the ecology

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be2929c7e80680e083eb7jpeg.jpg" alt="" width="1800" height="1050"/><figcaption>Photo: NEPAL OIL CORPORATION</figcaption></figure>The global pandemic hijacked 2020 and reset priorities, but countries now need to regroup and renew their commitment to cap global warming at well below 2°C above pre-industrial levels, as agreed in Paris in 2015.On 12 December, it will be the fifth anniversary of the signing of the landmark climate accord when 196 countries, including Nepal, will be presenting their <a href="https://climateactiontracker.org/countries/nepal/" target="_blank" rel="noopener noreferrer">Nationally Determined Contributions</a> (NDCs) to reduce the impact of the climate crisis.NDCs are voluntary commitments by countries to reduce their carbon footprints, but there are fears that a world in the throes of a Covid-19 induced economic crisis will follow through on past commitments—even as scientists warn that the earth is warming much more rapidly than forecast five years ago in Paris.The Himalaya is <a href="https://www.nepalitimes.com/banner/human-face-of-a-himalayan-climate-crisis/" target="_blank" rel="noopener noreferrer">literally a hotspot</a> because the mountains are warming faster than the global average. But activists say Nepal's own 'Enhanced NDC' does not go far enough in mitigating carbon emissions, or adapting to the impact of the climate emergency.The document has been put up for public comment and is subject to revision. Its highlight is that Nepal for the first time mentions ‘net-zero emission’ as a future goal.But the document does not give a timeline to achieve it, and only says that the country will formulate 'a long-term low greenhouse gas emission development strategy' sometime next year.In the region, Bhutan has already declared itself carbon neutral—meaning its forests absorb more than the CO2 it emits. China, responsible for 28% of total annual carbon emissions, recently pledged peak emission before 2030 and attain net-zero by 2060. <a href="https://www.nepalitimes.com/banner/a-biden-presidency-climate-and-the-himalaya/" target="_blank" rel="noopener noreferrer">President-elect Joe Biden </a>as committed that the US, which contributes 15% of CO2 annually, to zero carbon emissions by 2050, as have Japan, South Korea and the UK.India, the fourth largest CO2 emitter globally, is lagging but has been investing heavily in solar power, and by setting targets to electrify railways and phasing out diesel and petroleum vehicles by 2030.Nepali activists say the country's NDC could have gone much further to set realistic firm pledges, since it is starting from such a low carbon base."We could have easily set a target of net-zero by 2050. In fact, we can achieve it by 2030 if we are really committed," says environmentalist Bhushan Tuladhar. "Our emission is negligible, we are a low-carbon economy and have much cleaner sources of energy like hydroelectricity at our disposal."In 2014, a report showed that Nepal's forest area had doubled in 25 years, and it absorbed half of Nepal's total emissions from burning fossil fuels. However, another report last year showed that carbon emission was rising faster than vegetation cover, and frequent wildfires were themselves pumping more CO2 into the atmosphere.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/ipcc-report-and-nepals-food-security/" target="_blank" rel="noopener noreferrer">Manjeet Dhakal</a>, adviser to the Least Developed Countries support group at the UN Framework Convention on Climate Change (UNFCCC) says: "I'm pretty confident we will achieve net-zero by 2050. But what is important in this discussion is that, while we may be among the smallest emitters, our emissions are increasing and forests are not absorbing CO2 as they used to."<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be2959c7e80680e083eb8jpeg.jpg" alt="" width="640" height="555"><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be2989c7e80680e083eb9jpeg.jpg" alt="" width="640" height="425"><figcaption> </figcaption></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be29b9c7e80680e083ebajpeg.jpg" alt="" width="890" height="464">Nepal's annual per capita carbon emission is one of the lowest in the world at 0.29 tons. In comparison, an average American pumps 16 tons of carbon every year, and Qataris burn 37 tons. However, Nepal's per capita emission is rising significantly due to the growing import of petroleum products and thermal electricity from India.As new roads are built and more vehicles imported, Nepal's main driver of fossil fuel consumption is the transportation sector. Motorcycles account for 80% of all vehicles in Nepal, and phasing them out for battery-powered two-wheelers would significantly reduce petroleum imports.Electric public transport will need subsidies from the government and investors but it also means utilising Nepal's clean energy from hydropower and further reducing our carbon footprint. Last fiscal year, Nepal's petroleum import reached Rs200 billion— 2.2 times higher than the country's total income from exports. Imports of diesel, petrol, aviation fuel and LPG went down slightly in 2020 due to the pandemic and lockdowns.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/cleaner-air-with-greener-buses/" target="_blank" rel="noopener noreferrer">Switching to electric public transport</a> and battery vehicles to reduce the petroleum import bill by just 10% would save Rs21 billion a year. This will also clean up the air. Air pollution <a href="https://www.nepalitimes.com/latest/double-whammy-air-pollution-and-covid-19/" target="_blank" rel="noopener noreferrer">killed 41,000 people in Nepal last year</a>. This winter that risk for patients with respiratory issues is combined with Covid-19 complications.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be29d9c7e80680e083ebbjpeg.jpg" alt="" width="576" height="683"><figcaption> </figcaption></figure>Bishwo Nath Oli, Secretary at the Ministry of Forest and Environment agrees. "We plan to produce 15,000MW of clean energy by 2030 and we need a strategy so that it is properly consumed and utilised. Electrification of transport is the best way to go about it, along with electric stoves and biomass to cut emissions significantly."Nepal's Enhanced NDC has set a target of turning 25% of all private passenger vehicles sales, including two-wheelers, to electric. It also aims to make 20% of all four-wheel public transport battery-powered by 2025. Most of Nepal's three-wheel vehicles are already electric.Planners hope to increase these numbers to 90% and 60% by 2030. Similarly, in 10 years Nepal aims to develop 200km of electric rail network.But activists are sceptical. Prime Minister KP Oli had declared in 2018 that 25% of all vehicles in Nepal would be electric by 2020. However, Finance Minister Yubaraj Khatiwada <a href="https://www.nepalitimes.com/latest/why-nepal-needs-to-restore-ev-tax-subsidy/" target="_blank" rel="noopener noreferrer">scrapped tax subsidies for electric vehicles</a> in this year's budget, although his successor has restored some rebate for smaller battery-powered cars.But even if these targets are met, they are too conservative, says Bhushan Tuladhar. "Our targets are often too ambitious or too relaxed. With the new NDCs, we can see this pattern in sectors such as industry, waste and agriculture which are either too vague or too conservative," he adds.Planners have also not taken into account that the cost of electric vehicles is already at par with diesel vehicles of the same capacity, and will decline further as the price of lithium-ion batteries continues to fall. Increased affluence means more people will opt for two-wheelers and automobiles, most likely electric, especially as India and China phase out production of diesel and petrol vehicles.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be29f9c7e80680e083ebcjpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>While Nepal's voluntary commitment sets a target to reduce coal consumption and air pollution from brick and cement industries by 2030, it does not mention how, and by how much. The NDC document only says the government will 'formulate guidelines and establish mechanisms' by 2025 to monitor emissions from large industries.On the waste sector, the NDC says that by 2025, 380 million litres/day of wastewater will be treated before discharge to natural courses, and 60,000 cubic meters/year of faecal sludge will be managed. But it has targeted only 100 of Nepal's 753 municipalities for waste segregation, recycling and waste-to-energy programs by 2030.Nepal's 2016 NDC pledged to increase forest cover to 40% of the total area, and here the country exceeded the target and current forest cover stands at 44.74%. The new NDC has included more community forests, and says 60% of Nepal's area will be forest, pledging to stop deforestation of the Chure range.Similarly, intercropping, agroforestry, conservation tillage and <a href="https://www.nepalitimes.com/opinion/building-an-information-bridge-for-nepals-farmers/" target="_blank" rel="noopener noreferrer">climate-smart agricultural technologies</a> are all mentioned in the NDC, but missing conspicuously from the discussion is farm mechanisation.Nepal aims to <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener noreferrer">increase hydroelectricity generation </a> rom the current 1,400MW to 15,000 by 2030. Of this, 5,000MW is an unconditional target, and the remainder is contingent on funding from the international community. In fact, Nepal will need $25 billion to meet its NDC targets, and most of this will be dependent on foreign aid.Manjeet Dhakal admits the targets in the new NDC may not be ambitious, but he says they are realistic. He adds: "For the longest time Nepal was the most vulnerable to climate change. But time has come for us to show our leadership and commitment to net-zero by implementing the targets set."

Sonia Awale

Blueprint for a net-zero Nepal

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171136/636934219c7e80680e03dfdajpeg.jpg" alt="" width="720" height="720"/>NEW YORK – The drama of Donald Trump’s presidency has centered around whether an extremist president would be able to carry out an extremist policy agenda against the will of the majority of Americans. So far the answer has been no, and the midterm elections make it far less likely. Yet Trump’s rising frustrations could push him over the edge psychologically, with potentially harrowing consequences for American democracy and the world.None of Trump’s extremist policy ideas has received public support. The public opposed last year’s <a href="http://www.pewresearch.org/fact-tank/2017/09/27/more-americans-favor-raising-than-lowering-tax-rates-on-corporations-high-household-incomes/">Republican-backed corporate tax cut</a>, Trump’s effort to <a href="http://www.pewresearch.org/fact-tank/2017/02/23/support-for-2010-health-care-law-reaches-new-high/">repeal the Affordable Care Act</a> (Obamacare), his <a href="http://www.pewresearch.org/fact-tank/2017/02/24/most-americans-continue-to-oppose-u-s-border-wall-doubt-mexico-would-pay-for-it/">proposed border wall with Mexico</a>, the decision to <a href="http://cdn.cnn.com/cnn/2018/images/05/07/rel5c.-.iran.pdf">withdraw</a> from the Iran nuclear agreement, and the imposition of <a href="http://www.pewresearch.org/fact-tank/2018/05/10/americans-are-generally-positive-about-free-trade-agreements-more-critical-of-tariff-increases/">tariff increases</a> on China, Europe, and others. At the same time, contrary to Trump’s relentless promotion of fossil fuels (coal, oil, and gas), the public favors <a href="http://www.pewresearch.org/fact-tank/2017/01/23/two-thirds-of-americans-give-priority-to-developing-alternative-energy-over-fossil-fuels/">investments in renewable energy</a> and <a href="http://climatecommunication.yale.edu/publications/paris_agreement_by_state/">remaining</a> in the Paris climate agreement.Trump has tried to implement his radical agenda using three approaches:<ol><li>To rely on the Republican majorities in the two houses of Congress to pass legislation in the face of strong popular opposition. That approach succeeded once, with the 2017 corporate tax cut, because big Republican donors insisted on the measure, but it failed with Trump’s attempt to repeal Obamacare, as three Republican senators balked.</li> 	<li>To use executive orders to circumvent Congress. Here the courts have repeatedly intervened, most recently within days of the election, when a federal district court <a href="https://www.nytimes.com/2018/11/09/climate/judge-blocks-keystone-pipeline.html">halted work on the Keystone XL Pipeline</a>, a project strongly opposed by environmentalists, on the grounds that the Trump administration had failed to present a “reasoned explanation” for its actions. Trump repeatedly and dangerously oversteps his authority, and the courts keep pushing back.</li> 	<li>To rally public opinion to his side. Yet, despite his frequent rallies, or perhaps because of them and their incendiary vulgarity, <a href="https://news.gallup.com/poll/203207/trump-job-approval-weekly.aspx?g_source=link_newsv9&amp;g_campaign=item_203198&amp;g_medium=copy">Trump’s disapproval rating</a>has exceeded his approval rating since the earliest days of his administration. His current overall disapproval rating is 54%, versus 40% approval, with strong approval from around 25% of the public.</li></ol>In the midterm elections, which Trump himself described as a referendum on his presidency, the Democratic candidates for both the House and Senate <a href="https://elections.huffingtonpost.com/2018/results/hq">vastly outpolled</a> their Republican opponents. In the House races, Democrats received 53,314,159 votes nationally, compared with 48,439,810 for Republicans. In the Senate races, Democrats outpolled Republicans by 47,537,699 votes to 34,280,990.Nonetheless, the Republicans hold a slight majority in the Senate, where each state is represented by two senators, regardless of the size of its population, because they tend to win their seats in less populous states, whereas Democrats prevail in the major coastal and Midwestern states. Wyoming, for example, elects two Republican senators to represent its nearly 580,000 residents, while California’s more than 39 million residents elect two Democratic senators. Democrats win more votes, but Republicans win more seats.Without control of the House, however, Trump will no longer be able to enact any unpopular legislation. Only policies with bipartisan support will have a chance of passing both chambers.On the economic front, Trump’s trade policies will become even less popular in the months ahead as the American economy cools from the “sugar high” of the corporate tax cut, as growing uncertainty about global trade policy hamstrings business investment, and as both the budget deficit and interest rates rise. Trump’s phony national-security justifications for raising tariffs will also be challenged politically and perhaps in the courts.True, Trump will be able to continue appointing conservative federal judges and most likely win their confirmation in the Republican-majority Senate. And on issues of war and peace, Trump will operate with terrifyingly little oversight by Congress or the public, an affliction of the US political system since World War II. Trump, like his recent predecessors, will most likely keep America mired in wars in the Middle East and Africa, despite the lack of significant public understanding or support.Nonetheless, there are three further reasons to believe that Trump’s hold on power will weaken significantly in the coming months. First, Special Counsel Robert Mueller may very well document serious malfeasance by Trump, his family members, and/or his close advisers. Mueller kept a low profile in the run-up to the election. We will most likely hear from him soon.Second, the House Democrats will begin to investigate Trump’s taxes and personal business dealings, including through congressional subpoenas. There are strong reasons to believe that Trump has committed serious tax evasion (as the New York Times <a href="https://www.nytimes.com/interactive/2018/10/02/us/politics/donald-trump-tax-schemes-fred-trump.html">recently outlined</a>) and has illegally enriched his family as president (a lawsuit that the courts have <a href="https://edition.cnn.com/2018/11/02/politics/donald-trump-emoluments-clause-dc-maryland/index.html">allowed to proceed</a> alleges violations of the emoluments clause of the Constitution). Trump is likely to ignore or fight the subpoenas, setting the stage for a major political crisis.Third, and most important, Trump is not merely an extremist politician. He suffers from what author Ian Hughes has <a href="https://www.amazon.com/dp/B07H44BMM6/ref=dp-kindle-redirect?_encoding=UTF8&amp;btkr=1">recently</a> called “a disordered mind,” filled with hate, paranoia, and narcissism. According to two close observers of Trump, the president’s grip on reality “<a href="https://www.politico.com/magazine/story/2018/07/27/inside-the-mind-of-donald-trump-219074">will likely continue to diminish</a>” in the face of growing political obstacles, investigations into his taxes and business dealings, Mueller’s findings, and an energized political opposition. We may already be seeing that in Trump’s <a href="https://www.nytimes.com/2018/11/09/us/politics/matthew-whitaker-donald-trump.html?smid=fb-nytimes&amp;smtyp=cur&amp;fbclid=IwAR0MxF9dqRt5w1M5HT6Gy6syoaqbsJjfg6SRlN4JhcdURUrV-btCv_pHgt4">erratic</a> and <a href="https://www.youtube.com/watch?v=zdFe-LmFRV8&amp;t=1s">aggressive</a> behavior since the election.The coming months may be especially dangerous for America and the world. As Trump’s political position weakens and the obstacles facing him grow, his mental instability will pose an ever-greater danger. He could explode in rage, fire Mueller, and perhaps try to launch a war or claim emergency powers in order to restore his authority. We have not yet seen Trump in full fury, but may do so soon, as his room for maneuver continues to narrow. In that case, much will depend on the performance of America’s constitutional order.  © <a href="https://www.project-syndicate.org/commentary/weaker-trump-more-unstable-and-dangerous-by-jeffrey-d-sachs-2018-11?utm_source=Project+Syndicate+Newsletter&amp;utm_campaign=8154a24117-sunday_newsletter_18_11_2018&amp;utm_medium=email&amp;utm_term=0_73bad5b7d8-8154a24117-93570157##" target="_blank" rel="noopener">Project Syndicate</a>Jeffrey D Sachs is Professor of Sustainable Development and Professor of Health Policy and Management at Columbia University and his books include <a href="http://jeffsachs.org/books/the-end-of-poverty/">The End of Poverty</a>, <a href="https://www.amazon.com/Building-New-American-Economy-Sustainable/dp/0231184042" target="_blank" rel="noopener"> Building the New American Economy</a>, <a href="https://cup.columbia.edu/book/a-new-foreign-policy/9780231547888">A New Foreign Policy: Beyond American Exceptionalism</a>.

Trump’s diminishing power and rising rage

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 has shut down dozens of social media platforms in a move that is widely seen as an effort to tax the revenue they generate in the country, and to control content critical of government. The sites were blocked as of midnight on Thursday, 4 September and affects all Meta products including WhatsApp and Messenger, Threads, and others. Although YouTube, Google and X are also on the government’s list, they were still working as of Friday midday.&nbsp; The government says it took the action after repeated warnings to the platforms to open offices in Nepal, a Cabinet decision last month setting a deadline, as well as a 17 August Supreme Court ruling also requiring them to register and pay requisite taxes. However, the Bill cited in the ban, ‘The Operation, Use, and Regulation of Social Media in Nepal’ has not yet been passed by Parliament. Some social media platforms which were already paying taxes in Nepal even though they are not officially registered, have also been blocked. The move is the latest in <a href="https://nepalitimes.com/news/big-beautiful-bills" target="_blank">a slew of draft legislations</a> designed to undermine Nepal’s open society. A Bill amending the Print and Publications Act would allow district bureaucrats to shut down media. Another draft Bill would allow political appointees to head a new Media Council with the power to revoke the licenses of journalists.&nbsp; A counter-intelligence Bill would let just about anyone in government to arbitrarily tap phones, read emails and trail citizens. On Wednesday the government announced new immigration requirements that would allow it to track the movement of all foreigners in the country. Yet another draft Bill has been set to Parliament to dissolve the <a href="https://archive.nepalitimes.com/news.php?id=10675" target="_blank">Social Welfare Council (SWC)</a> and move registration and monitoring of non-governmental organisations, nonprofits and charities to the Ministry of Social Welfare. Seen in this light, the blockage of social media platforms this week is seen as the latest government attempt to constrict freedom of press. Nepal is one of the few remaining open societies in Asia, and now appears to be drifting towards authoritarianism. The government’s sudden shutdown of social media has been greeted with howls of protest on platforms that still remain open, like Viber and TikTok, as well as in Nepal’s mainstream press. Even senior members of the ruling UML-NC coalition have sharply criticised the move, asking if the government is trying to “turn Nepal into North Korea”.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656.jpg" data-media-id="editor_2" data-image-id="2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656" data-rendition-name="original" width="4280" height="5187" loading="lazy" alt="social media ban in Nepal"> </figure>  The Regional Director of the New York-based Committee to Protect Journalists (CPJ) Beh Lih Yi said in a statement: ‘Nepal’s sweeping ban on social media sets a dangerous precedent for press freedom. Blocking online news platforms vital to journalists will undermine reporting and the public’s right to information. The government must immediately rescind this order and restore access to social media platforms, which are essential tools for exercising press freedom.’ Besides undermining press freedom, blocking social media platforms will also hurt commerce and the economy since so many small and medium business trade through Instagram, Facebook and other platforms. Nepal’s vibrant social media has also been a boost or citizens to assert identity, build solidarity against injustice and play an adversarial role when the mainstream media does not do it. Social media platforms have also become the tenuous link for Nepali families scattered across the world to keep in touch with each other — its importance growing with the increasing size of the diaspora. The government wants social media platforms to register, pay taxes and remove posts on their sites that ‘undermine the national interest and Nepal’s territorial integrity, disturb social and religious harmony’.&nbsp; In response, rights activists have said while there is need for the government to regulate extreme content and hate speech, officials appear to be more intent on clamping down on free speech and trying to force platforms to share the revenue. On Friday, the government had allowed WhatsApp back online, but there were reports that it had instructed the Nepal Telecommunication Authority (NTA) to instruct mobile and internet service providers to block by Friday night all platforms, including Facebook, Instagram, Messenger, WhatsApp, X (Twitter), YouTube, LinkedIn, Reddit, Threads, Snapchat, Pinterest, Signal, Clubhouse, Rumble.&nbsp; Platforms that have registered and are allowed include TikTok, Viber, Nimbuzz, Popo Live, WeTalk, Global Diary and the Nepali portal Hamro Patro. TikTok was banned last year for ‘disturbing social harmony’ and it was lifted after the platform registered its office in Nepal. But even while it was banned, many users simply switched to VPN. Telegram was also banned for ‘financial crimes’ and it has since also been allowed back. NTA officials confirmed that some Asia-Pacific regional offices of platforms, including Meta had been in touch overnight inquiring about the registration process.&nbsp; Nepal is not alone in regulating social media. China bans most Western platforms, Russia and Turkey regulate their and require platforms to locate their data servers in the country. Gulf countries allow social media but keep a tight control on dissent.&nbsp; Experts have said even the government will not dare close down YouTube since so many Nepali individuals and companies make money with posts on that platform, and closing it would also impact on Google and Gmail. Facebook had also just launched a monetisation scheme for videos and reels, and Nepalis uploading content would lose revenue.&nbsp; Blocking the platforms has already hit content creators, influencers and cut small businesses from reaching customers. A survey of social media use in Nepal by Sharecast Initiative showed that 94% of those with smart phones used YouTube, followed by Facebook (92%) while TikTok was in the 50-60% range. X and Instagram were in the single digits. A YouTube ban will also hurt the mainstream media since up to 20% of the revenue of Nepal’s main tv channels came through YouTube. Some 11.1 million Nepalis watch YouTube content every day, the survey showed. ‘For global giants like Meta or Google, Nepal is a small market, and they may not even flinch — but for millions of Nepalis, these platforms are central to daily life, livelihoods, and connections across the world,’ wrote AI consultant Naresh Newar in a LinkedIn post. Some experts said the government’s sweeping ban on social media networks was untenable and the government would be forced to rollback sooner or later. Said editor Shiva Gaunle: “The platforms had given citizens a voice and broken the monopoly of the government, legislators, the courts and journalists over public opinion. This is an effort to reassert that monopoly, but Nepal can never be turned into a North Korea.”