Biomass Energy Strategy (2017)

1. Overview Though the biomass energy in Nepal has been considered as one of the important resources, its utilization and management have not been done in a proper and sustainable manner. The current socio-economic situation of Nepal shows that the use of biomass energy will continue to dominant for a quite some time in the near future. In order to promote the effective and efficient use of renewable energy including biomass energy, the Government of Nepal established the Alternative Energy Promotion Centre (AEPC) in 1996. AEPC since then is providing financial and technical assistance for the promotion of biomass energy among others through its programmes. AEPC has been implementing various programmes with the support from different external development partners in cooperation and collaboration with private sector, non-governmental organizations, local communities and other governmental organizations. In Nepal, despite the abundant potential of hydropower, the supply of electricity has not been sufficient and reliable. The electricity is largely being used for lighting in rural areas whereas in urban areas, it is also being used for cooking in some extent. The over dependency on hydropower alone or some other source of energy in the longer term may result in the wastage of other energy resources or their reduced uses, which may cause serious problems related to conservation of energy resources, efficiency, optimum use and sustainability. Looking at the deforestation caused by the excessive use of firewood, the National Energy Strategy of Nepal under draft version has aimed for focusing on biomass energy to fulfill the energy needs on short and medium term and on the longer term energy needs to be met by electricity reducing the consumption of biomass energy. It is also necessary to keep in mind that the reduction of import of fossil fuel will enforce the increased dependency on firewood collected from forest which may cause the environmental and economic losses. Though the electricity for longer term has been strategically considered as the main-energy, there will be a consumption of biomass energy in some form and quantity which need to be managed sustainably and environment-friendly manner. Biomass energy is an important part of our living. Proper consideration for public health and socio- economic life, through promotion of technology and positive attitude towards the effective management, sustainable and efficient use of biomass energy seems necessary.

2. Past Efforts National Agricultural Policy, 2006 aims towards supporting the control of deforestation through the development of agro-forestry as well as conservation, promotion and proper use of natural resources, environment and biodiversity. This prohibits the forest destruction, promotes forest protection and appropriate use of natural resources, environment and bio-diversity by developing agriculture forest system. Rural Energy Policy, 2006 has targeted poverty reduction and environment conservation in rural areas by incorporating the different sources of energy used in the rural household, socio economic purposes into rural energy sources and enhancing access to clean, appropriate, sustainable and reliable energy. The policy has proposed for the preparation of separate action plans for the promotion and use of biogas, firewood, briquette, biofuel, biomass gasification and improved 1 Unofficial UnofficialTranslation Translation cooking stoves. Various action plans have been prepared and implemented as envisaged by the policy. Forest Policy, 2015 includes different activities like afforestation in public and private land; private forest for the private sector; provision of necessary technology and different financial instruments like subsidy, credit and insurance facilities for promoting forest enterprises and commercial nurseries; financial and technical support to the users of alternative energy, biogas, bio-briquettes, improved cooking stoves, biofuel etc. Renewable Energy Subsidy Policy, 2016 has provisions of subsidies for the promotion of biomass energy technologies such as biogas, improved cook stoves, gasifiers, etc. Subsidy provision for biogas has been made for domestic biogas and energy from wastes (energy from commercial, institutional, community and municipal wastes). Similarly, subsidy has been provisioned for metallic improved cooking stoves, gasifiers for cooking, room heating, drying for fruits, vegetables and grains at domestic, institutional, and commercial level; and also for electrification through biomass energy. From gender equality and social inclusion point of view, additional subsidy has been provisioned for the groups identified for necessary support. The Government of Nepal has been implementing various programmes related to renewable energy with support from different development partners. Apart from these, it has adopted the policy of mixing of ethanol in petroleum fuels; reducing the import of diesel through the biofuel programme by generation and use of biodiesel from inedible oils like Jatropha and creating income generation opportunities at local level by promoting energy crops in barren land.

3. Current scenario About 77% of energy consumption of Nepal is supplied by traditional biomass energy, which includes the firewood, cattle dung and agricultural residues. As per the National Census 2011, nearly 4 million out of 5.4 million households in Nepal are still using the traditional biomass energy including firewood for cooking. Reduction in the use of biomass energy has been a concern of all, as it results in the adverse effect on the human health and environment. According to the report published by World Health Organization (WHO) in 2012, indoor air pollution is the fourth major cause of the deaths amongst the poor and least developed countries. According to a study, about 7,500 people die in Nepal annually due to different diseases caused by the indoor air pollution. Studies have shown that women and children who spend their time in kitchen for long hours are most affected by this. On one hand, excessive consumption of timber results in depletion of forest resources whereas on the other hand, increased work load of woman for the collection of firewood. Moreover, use of traditional cook stoves consumes excessive firewood, emits excessive smoke and slow cooking has made women always busy. In order to get rid of such situation, the Government of Nepal through AEPC has been focusing on the promotion and expansion of use of clean energy technologies like improved cooking stoves (ICS), biogas, solar-cooker/dryer. 2 Unofficial Translation According to the recent report of ‘National Living Standards Survey’, about 3 million households in Nepal have only access to ICS. Studies carried out by AEPC in 2009 and 2010 have revealed that the use of ICS resulted in the reduction of indoor air pollution by 62 %. Similarly, the consumption of firewood was reduced by 43% on an average together with the significant reduction in the time spent by the women in the kitchen by the use of ICS in rural area. So far, ICS have been installed in about 1.3 million households and biogas in about 365,000 households and solar cooker in about 600 households in Nepal and have been using renewable energy for cooking. The Government of Nepal with support from the development partners has been implementing the National Rural and Renewable Energy Programme as an integrated programme in renewable energy sector. For development and promotion of renewable energy, a subsidy has been provisioned through the mobilization of internal and external resource including carbon trade. For additional expansion of renewable energy technology, fulfillment of the United Nation’s “Sustainable Energy for All” and “Sustainable Development Goals”, a campaign called “clean cooking solutions for all” has been initiated to make all the households indoor air pollution free by providing clean cooking technologies. National action plan and investment prospectus are being formulated for enhancing access to clean and sustainable energy for all. Apart from this, a separate agroforestry policy is being formulated incorporating various aspects of agroforestry.

4. Problems and Challenges 4.1 Problems The latest and improved technologies in biomass energy have not been developed due to low awareness level and economic condition. There is a lack of coordination, integrated viewpoint and action plan among stakeholders of energy sector. Allocation of financial resources for the biomass energy which contributes more than two thirds of the country’s total energy demand is not proportional. Attention has been lacking for the proper management of forest sector by effective use of biomass energy. There is also a lack of adequate information on the possible generation of energy through the use of locally available residues of different products. Sufficient identification and effective management of all traditional energy resources have not been done. The interest on the improved cooking stoves is still limited and the improved technologies have not been easily available despite the provision of subsidy. Since the sectors related to biomass energy resources like forestry, agriculture and animal husbandry are under different agencies, coordination among these bodies have not been adequate. There is a lack of human resources and other resources in the local bodies for effective management and efficient use of biomass energy. There has been lack of adequate awareness on environmental degradation caused by the excessive use of biomass energy and application of appropriate measures to prevent such degradation. Due to the social psychology towards the differences in types of energy used by the poor and rich class, the focus of the poorer communities has been concentrated into getting LPG connection rather than using the locally available biomass energy efficiently. 3 Unofficial UnofficialTranslation Translation There has not been necessary measures for identification of a suitable species and land/area for cultivation of energy crops. Similarly, adequate studies and researches on the adverse impacts of cultivation of energy crops on food security have not been carried out. On the basis of regional and international experiences, the promotion, generation, distribution and utilization of bio-diesel and bio-ethanol have not been effective. Likewise, the mechanism for partial substitution of petrol and diesel by the liquid biofuel, like quality control, standards, laboratory, production and sales distribution network has not been established yet. 4.2 Challenges The energy consumption pattern has been changing due to rapid development, population growth and increase in income. There is an increased dependency on imported LPG for cooking in urban areas. Availability of biomass energy resources is not same in all geographical regions of Nepal. There is a degradation of forest resources due to increased pressure in the areas where there is less availability than needs and the areas with surplus of forest resources the proper utilization of biomass has not been achieved. There is a need of proper management of biomass energy resources due to its regional imbalance in availability. It has been difficult to assess the impacts and effectiveness of biomass energy promotion programmes due to lack of adequate data related to operational status of the biogas plants and ICS installed as a result of biomass energy promotion initiatives. It has been also a challenge to increase awareness on effective use of biomass energy with utilization of appropriate modern technologies. Availability of modern technologies in affordable price for many people is even more challenging due to their low purchasing power. Therefore, effective implementation of the campaign of “Clean Cooking solutions for All” by making every household free from indoor air pollution by providing clean energy solutions seems challenging.

5. Rationale of the Strategy In order to replace LPG or kerosene currently being used as domestic fuel by the biomass energy, it has been necessary for effective and efficient utilization of biomass energy. Furthermore, in the near future, the biomass energy cannot be completely replaced by other energy resources. In this context, it was necessary to formulate specific strategy and working policies in order to reduce the excessive consumption of petrol and diesel by optimum use of biofuel and to promote biodiesel/ bioethanol in effective manner. This strategy is formulated to address the need of an appropriate strategy for supporting the environment conservation through the sustainable production of biomass energy for proper and efficient utilization of available biomass resources and thereby contributing to forest conservation; for reducing the import of fossil fuel by reducing the increasing dependency on LPG; for contributing to appropriate energy mix by developing modern biomass energy; for supporting the management of municipal waste by generating energy from the waste; for encouraging the energy supply services; and for reducing the existing regional imbalances prevailing in the supply and demand of biomass energy. 4 Unofficial Translation

6. Vision, Mission and Goals 6.1 Vision To promote the biomass energy as reliable, affordable and sustainable energy resource to address the increasing energy demand of Nepal. 6.2 Mission To enhance the living standards of people by modernizing the use of biomass energy through research and studies on biomass energy; through creating public awareness; through market development, technology transfer and capacity development in biomass energy; as well as through efficient use of biomass energy. 6.3 Goal To increase the access to biomass energy and hence contributing to the environment conservation by transforming traditional biomass energy use into modern, sustainable and clean energy.

7. Objective The objectives of strategy are mentioned as follows: 7.1. To contribute to energy supply and energy security by generating energy through management of agriculture forest residues and organic wastes from municipal urban and industrial areas. 7.2. To support the employment and income generation through the entrepreneurship development in biomass energy; and to reduce the existing dependency on imported energy through effective, efficient production and utilization of biomass energy.

8. Strategy To achieve above mentioned objectives, the following strategic measures will be adopted: 8.1. To increase production of sustainable biomass energy by utilizing agriculture, forest residues and organic wastes. 8.2. To contribute to increased access to clean cooking technologies to all Nepalese households through the means of modern biomass energy. 8.3. To increase effectiveness and efficiency in the utilization and production of biomass energy. 8.4. To partially substitute the utilization of diesel and petrol by bio-diesel and bio-ethanol. 5 Unofficial UnofficialTranslation Translation

9. Working Principles For the implementation of aforementioned strategic measures, the following working policies will adopted, the action plans of which are given in Schedule -1: 9.1. To increase production of sustainable biomass energy by utilizing agriculture, forest residues and organic wastes 9.1.1. To arrange appropriate contributions from the government, private sector and beneficiaries/ consumers in order to make the production and utilization of biomass energy reliable and sustainable; to provide financial and technical assistance and easy loan for the production and utilization of modern, affordable and efficient technologies. 9.1.2. To promote biomass energy together with sustainable forest management; to encourage plantation of trees with shorter life cycle for increasing production and productivity; and to enhance the transparency and simplicity in production, sales and commercialization of biomass energy related forest products. 9.1.3. To ensure necessary capacity building, promotion and technology transfer for the production and commercialization of biomass energy through the utilization of biomass energy from the municipal and industrial wastes; and forest, agriculture and animal residues. 9.1.4. To utilize the gas produced from waste management site (landfill) to generate energy. 9.1.5. To encourage private sector for production and marketing of improved and modern biomass energy technologies (e.g. biogas, ICS, gasifier, briquettes/pellets, cogeneration, waste to energy, etc.). 9.2. To contribute to increased access to clean cooking technologies for all Nepalese households through the means of modern biomass energy 9.2.1. To make indoor air pollution free Nepal by 2022 through the promotion of clean cooking technologies in all households ; and by 2030 , to ensure the availability of modern clean energy in all the households using solid biomass. 9.2.2. To adopt and implement one door policy for different ongoing programmes being implemented under the Government of Nepal with financial support from other external agencies; and to enhance coordination and cooperation between concerned agencies in clean energy. 9.2.3. To formulate and revise timely, as per need, quality standards of biomass energy technologies for their quality assurance. 9.3. To increase effectiveness and efficiency in the consumption of biomass energy 6 Unofficial Translation 9.3.1. To provide technical and financial assistance for research and study on modern efficient, and affordable biomass energy technologies (biogas, ICS, gasifier, briquettes, pellets, industrial boiler, cogeneration, waste to energy etc.) for determining their feasibility, goals, quality control, emission standards, technology development and improvements. 9.3.2. To carry out public awareness and promotional activities with the participation of local stakeholders for effective and efficient use of biomass energy and for expansion of modern, efficient and affordable technologies. 9.3.3. To develop appropriate system and market for commercialization of biomass energy and to ensure the sales and distribution of sales of the produced biomass energy and hence benefit. 9.3.4. To ensure the participation in the production, collection and commercialization of biomass energy for the general public, women, indigenous people, dalits, disaster victims and the people from the marginalized areas, as well as ensure their access to the benefits of the same. 9.4. To partially substitute use of diesel and petrol by bio-diesel and bio-ethanol 9.4.1. To provide land for the cultivation of energy crop by identifying appropriate land and ensuring that it does not adversely impact on the biodiversity and food security. 9.4.2. To manage for the production, distribution and plantation of the seedlings of the oil- bearing plants like jatropha, andi, etc., energy cultivation and seed collection, commercialization, processing, quality control and blending with diesel. Also, to encourage the production of biodiesel from used cooking oil and animal fat. 9.4.3. To encourage generation of bio-ethanol from molasses produced from sugar mill and blending it with petrol. 9.4.4. To develop physical infrastructure, institutional structure and human resources for the production, processing, commercialization and utilization of biodiesel and bioethanol; develop and implement the concept of public and private partnership for the same. 9.4.5. To ensure the sales, distribution and benefit of the locally produced biodiesel and bioethanol; and to establish a mechanism for the procurement and marketing of the same even if locally produced biodiesel and bioethanol are up to 10% more expensive than the imported diesel and petrol. 9.4.6. To provide necessary financial incentives (customs and value added tax exemption, etc.), subsidies and credit facilities for the production, processing and marketing of bio-diesel and bio-ethanol. 7 Unofficial UnofficialTranslation Translation 9.4.7. To carry out the research and studies for the feasibility of the liquid biofuel including biodiesel and bioethanol as well as for the production, processing, quality control, promotion and dissemination of liquid biofuels.

10. Institutional Structure For the implementation of the Biomass Energy Strategy, there will be important roles to play by the relevant government agencies related to forestry, agriculture, energy, supplies, environment and local development in collaboration, coordination and support of the envisaged activities. The following institutional mechanism has been envisaged for the implementation of the Biomass Energy Strategy: 10.1. Formation of the Central Coordination Committee In order to coordinate among the relevant agencies associated with the promotion and development of biomass energy, the following Central Coordination Committee has been formed: a) Secretary, Ministry of Population and Environment Coordinator b) Joint Secretary, Ministry of Agriculture Development Member c) Joint Secretary, Ministry of Federal Affairs and Local Development Member d) Joint Secretary, Ministry of Forest and Soil Conservation Member e) Joint Secretary, Ministry of Energy Member f) Joint Secretary, Water and Energy Commission Secretariat Member g) Joint Secretary, Ministry of Agriculture Development Member h) Executive Director, Alternative Energy Promotion Centre Member i) Executive Director, Solid Waste Management and Technical Support Centre Member j) Joint Secretary, Ministry of Population and Environment Member - Secretary 10.2. Implementation and Monitoring Unit In order to implement this Strategy, there will be Biomass Energy Strategy Implementation and Monitoring Unit established at the central level each in the Ministry of Forest and Soil Conservation, Ministry of Agriculture Development, Ministry of Population and Environment, Ministry of Federal Affairs and Local Development, Ministry of Energy, Water and Energy Commission Secretariat, and Alternative Energy Promotion Centre. Similarly, the 8 Unofficial Translation implementation at the local level will be the responsibility of the local level authorities with assistance from AEPC.

11. Financial Aspect For the successful and effective implementation of this strategy, additional financial resources are required. Necessary financial resources will be managed by mobilizing financial and technical assistance from international development partners and national sources for such additional financial resources.

12. Legal Aspect The policies, acts, regulations and all other legal provisions related to the promotion and development of biomass energy will be reviewed. The roles of the biomass will be elaborated in the national energy strategy. In order to address the legal issues for the promotion and development of biomass energy, the existing laws within the energy, forest, solid waste and agriculture sectors will be studied; and necessary revisions to them will be made to make them biomass energy friendly.

13. Research and Development For the production and utilization of various forms of biomass energy and for making the biomass energy technologies and implementation process efficient, effective, affordable, appropriate and result-oriented; an emphasis will be given for necessary research, studies, technology transfer and development/expansion. Agencies implementing the programs related to the biomass energy will be encouraged to carry out the applied research collaborating with the educational and research institutions.

14. Monitoring and Evaluation Monitoring and evaluation of the implementation of this strategy will be the responsibility of the implementing and monitoring units. The central coordination committee will review the monitoring and evaluation carried out by these units; will provide necessary instruction from time to time; and will arrange for the publication of the monitoring results. 9 Unofficial Translation Unofficial Translation

Schedule 1: Biomass Energy Strategy Implementation Action Plan Current Major Goal Strategic Area Activities Situation Responsible Supporting Agency Timeline (Year 2030) Agency (Year 2017) 1. To increase 1.1 To arrange appropriate Existing Provide Ministry of Ministry of Finance, Continuous production of contributions from the support is financial Population and Ministry of Forest from 2017 sustainable government, private sector and only for assistance to Environment, and Soil biomass energy beneficiaries/ consumers in order biogas, biogas, Alternative Conservation, by utilizing to make the production and metallic metallic Energy Ministry of agriculture and utilization of biomass energy improved stoves, Promotion Agricultural forest residues reliable and sustainable; to cooking briquette, Centre Development, and organic provide financial and technical stoves, and pellet, Ministry of Federal . wastes assistance and easy loan for the gasifier. cogeneration Affairs and Local production and utilization of etc. Development modern, affordable and efficient technologies. 1.2 To promote biomass energy Ministry of Ministry of Continuous together with sustainable forest Forest and Soil Population and from 2017 management; to encourage Conservation Environment, plantation of trees with shorter Alternative Energy life cycle for increasing Promotion Centre production and productivity; and to enhance the transparency and simplicity in production, sales and commercialization of biomass energy related forest products. I I Unofficial Unofficial Translation Translation Current Major Strategic Goal Activities Situation Responsible Supporting Agency Timeline Area (Year 2030) (Year 2017) Agency 1.3 To ensure necessary capacity Currently, Activities Ministry of Ministry of Finance, Continuous building, promotion and activities targeting Population Ministry of Forest and from 2017 technology transfer for the targeting clean modern and and Soil Conservation, production and commercialization cooking fuels affordable Environment, Ministry of Agriculture of biomass energy through the are being technologies in Alternative Development, Ministry utilization of biomass energy from conducted. biomass energy Energy of Federal Affairs and the municipal and industrial will have been Promotion Local Development, wastes; and forest, agriculture and conducted . Centre Waste Management animal residues. Technical Assistance Centre 1.4 To utilize the gas produced Currently, there All the solid Ministry of Ministry of Population Continuous from waste management site is no provision waste landfill Federal and Environment, from 2020 (landfill) to generate energy. of biogas sites to be Affairs and Alternative Energy collection and established will Local Promotion Centre, Solid storage at the be made as Development Waste Management landfill sites sanitary landfill Technical Assistance and all the sites and a Centre methane provision of produced from collection and the solid waste storage of is emitted into biogas will have the atmosphere. been made. II Unofficial Translation Unofficial Translation Current Major Strategic Goal Activities Situation Responsible Supporting Agency Timeline Area (Year 2030) (Year 2017) Agency 1.5 To encourage private sector for Currently, 4 To generate Ministry of Ministry of Energy, Continuous production and marketing of bio-gasifier electricity Population Ministry of Federal from 2018 improved and modern biomass plants and 1 through the solid and Affairs and Local energy technologies (e.g. biogas, biogas plant waste Environment, Development, Waste ICS, gasifier, briquettes/pellets, from the waste management in Alternative Management Technical cogeneration, waste to energy, are in those Energy Assistance Centre etc.). operation; and municipalities Promotion feasibility with garbage Centre studies are production of ongoing in more than 1 additional 10 tonne; and to municipalities. generate 10 MW of electricity from bio- gasifier. III III Unofficial Translation Unofficial Translation Current Major Strategic Goal Activities Situation Responsible Supporting Agency Time Area (Year 2030) (Year 2017) Agency 2. To 2.1 To make indoor air pollution free So far, 1.3 To provide Ministry of Ministry of Forest and From the contribute to Nepal by 2022 through the promotion million clean Population Soil Conservation, Year 2017 increased of clean cooking technologies in all improved cooking and Ministry of Agriculture to 2030 access to households ; and by 2030 , to ensure the cooking technologies Environment, Development, Ministry clean cooking availability of modern clean energy in stoves; of at least Alternative of Federal Affairs and technologies all the households using solid biomass. 380,000 tier -3 to all Energy Local Development, for all biogas plants; households. Promotion Ministry of Energy  To promote of 3 million improved Nepalese and 7,000 Centre cooking stoves targeting households households metric of using solid biomass for cooking. through the briquette, means of  To install 600,000 domestic biogas pellet per modern plants using cattle dung. year. biomass  To reach the annual production of . energy 20,000 metric tonnes of pellets, briquettes by enhancing the production capacity. 2.2 To adopt and implement one door Currently, To Ministry of Ministry of Finance, Continuous policy for different ongoing stand-alone Implement Population Ministry of Forest and from 2017 programmes being implemented under programmes programmes and Soil Conservation, the Government of Nepal with financial are being on the basis Environment, Ministry of Agriculture support from other external agencies; implemented. of single Alternative Development, Ministry and to enhance coordination and door policy. Energy of Federal Affairs and cooperation between concerned Promotion Local Development, agencies in clean energy. Centre Ministry of Energy IV IV Unofficial Translation Unofficial Translation Current Major Goal Strategic Area Activities Situation Responsible Supporting Agency Time (Year 2030) Agency (Year 2017) 2.3 To formulate and revise There are The guidelines Ministry of Ministry of Industry, Continuous timely, as per need, quality guidelines on on standards Population Nepal Academy of from 2017 standards of biomass energy standards and and quality and Science and technologies for their quality quality control for all Environment, Technology, assurance. control for biomass energy Alternative Universities biogas, and technologies Energy improved will be Promotion cooking developed and Centre stoves. enforced. 3. To increase 3.1 To provide technical and Ministry of Ministry of Finance, Continuous effectiveness financial assistance for research Population Ministry of Forest and from 2017 and efficiency and study on modern efficient, and Soil Conservation, in the and affordable biomass energy Environment, Ministry of Agriculture consumption technologies (biogas, ICS, Alternative Development, Ministry of biomass gasifier, briquettes, pellets, Energy of Federal Affairs and energy. industrial boiler, cogeneration, Promotion Local Development, waste to energy etc.) for Centre Ministry of Industry, determining their feasibility, Nepal Academy of goals, quality control, emission Science and standards, technology Technology, development and improvements. Universities V V Unofficial Translation Unofficial Translation Current Situation Goal Major Strategic Activities Responsible Supporting Agency Time Area (Year (Year 2030) Agency 2017) 3.2 To carry out public awareness and Only one- Awareness to Ministry of Ministry of Forest and Continuo promotional activities with the third of the be made to all Population and Soil Conservation, us from participation of local stakeholders for total of the total Environment, Ministry of Agriculture 2017 effective and efficient use of biomass targeted targeted Alternative Development, Ministry of energy and for expansion of modern, households households. Energy Federal Affairs and Local efficient and affordable technologies. are aware. Promotion Development Centre 3.3 To develop appropriate system and Commercia Appropriate Ministry of Ministry of Forest and Continuo market for commercialization of lization mechanism will Population and Soil Conservation, us from biomass energy and to ensure the sales with have been Environment, Ministry of Agriculture 2018 and distribution of sales of the private developed and Alternative Development, Ministry of produced biomass energy and hence sectors has implemented. Energy Federal Affairs and Local benefit. been Promotion Development initiated. Centre 3.4 To ensure the participation in of Ministry of Ministry of Finance, Continuo the production, collection and Population and Ministry of Forest and us from commercialization of biomass energy Environment Soil Conservation, 2018 for the general public, women, Ministry of Agriculture indigenous people, Dalits, disaster Development, Ministry of victims and the people from the Federal Affairs and Local marginalized areas, as well as ensure Development, Ministry of their access to the benefits of the same. Energy, Alternative Energy Promotion Centre VI VI Unofficial Translation Unofficial Translation Current Major Strategic Goal Activities Situation Responsible Supporting Agency Time Area (Year 2030) (Year 2017) Agency 4. To 4.1 To provide land for the Absence of The lands for Ministry of Ministry of Forest and Continuous partially cultivation of energy crop by land use the energy Land Reforms Soil Conservation, from 2017 substitute identifying appropriate land and policy for cropping will and Ministry of Agricultural use of diesel ensuring that it does not adversely cultivation have been Management Development, Ministry and petrol impact on the biodiversity and food of energy identified and of Federal Affairs and by bio- security. crops. used for Local Development, diesel and cultivation of Ministry of Population bio-ethanol . energy crops. and Environment 4.2 To manage for the production, Pilots Pilot Ministry of Ministry of Supplies, Continuous distribution and plantation of the programmes programmes Industry, Ministry of Forest and from 2017 seedlings of the oil-bearing plants are under will be Ministry of Soil Conservation, like jatropha, Andi, etc; energy operation. extended and Population Ministry of Agriculture cultivation and seed collection, expanded. and Development, Ministry commercialization, processing, Environment, of Federal Affairs and quality control and blending with Alternative Local Development diesel. Also, to encourage the Energy production of biodiesel from used Promotion cooking oil and animal fat. Centre 4.3 To encourage generation of bio- Ministry of Ministry of Supplies, Continuous ethanol from the molasses produced Industry Ministry of Population from 2017 from sugar mill and blending it with and Environment, Nepal petrol. Oil Corporation, and Alternative Energy Promotion Centre VII VII Unofficial Translation Unofficial Translation Current Situation Goal Major Strategic Activities Responsible Supporting Agency Time Area (Year (Year 2030) Agency 2017) 4.4 To develop physical Ministry of Ministry of Finance, Continuous infrastructure, institutional structure Supplies Ministry of Population from 2017 and human resources for the and Environment, production, processing, Nepal Oil Corporation, commercialization and utilization of Alternative Energy biodiesel and bioethanol; and develop Promotion Centre and implement the concept of public and private partnership for the same. 4.5 To ensure the sales, distribution Bio-diesel 10% of the Ministry of Ministry of Finance, Continuous and benefit of the locally produced and bio- total Supplies Ministry of Population from 2018 biodiesel and bioethanol; and to ethanol consumption of and Environment, establish a mechanism for the are petrol and Nepal Oil Corporation, procurement and marketing of the currently diesel Alternative Energy same even if locally produced not in use. consumed in Promotion Centre biodiesel and bioethanol are up to Nepal will have 10% more expensive than the been replaced imported diesel and petrol. by biodiesel & bioethanol. VIII VIII Unofficial Translation Unofficial Translation Current Major Strategic Goal Activities Situation Responsible Supporting Agency Time Area (Year 2030) (Year 2017) Agency 4.6 To provide necessary financial Currently, Credit Ministry of Ministry of Finance, Continuous incentives (customs and value added no subsidy facilities, Population the Supply Ministry, from 2018 tax exemption, etc.), subsidies and policy is in subsidy and Nepal Oil Corporation, credit facilities for the production, place. policies, Environment Alternative Energy processing and marketing of bio- mechanism Promotion Centre, diesel and bio-ethanol. for the banks and financing exemption of institutions custom duty and VAT will have been established. 4.7 To carry out the research and Ministry of Ministry of Industry, Continuous studies for the feasibility of the liquid Population Supply Ministry, Nepal from 2017 biofuel including biodiesel and and Oil Corporation, Nepal bioethanol as well as for the Environment, Academy of Science production, processing, quality Alternative and Technology, control, promotion and dissemination Energy Universities of liquid biofuels. Promotion Centre IX IX Government of Nepal Ministry of Population and Environment Singha Durbar, Kathmandu, Nepal