Nepal’s Nationally Determined Contribution (NDC) and Ambitious Electric Vehicle Targets for 2035: Driving a Sustainable Future

Nepal is charting an ambitious path toward climate resilience and sustainable development through its third Nationally Determined Contribution (NDC 3.0) under the Paris Agreement. The country’s updated climate action plan, extending to 2035, sets bold targets for greenhouse gas (GHG) emission reductions, with a strong emphasis on clean energy expansion and electric vehicle (EV) adoption. This article explores Nepal’s NDC commitments, the pivotal role of EVs in achieving climate goals, and the challenges and opportunities ahead.

Overview of Nepal’s NDC 3.0: A Climate Vision to 2035

Submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in May 2025, Nepal’s NDC 3.0 outlines a comprehensive strategy to limit national GHG emissions consistent with the global 1.5°C warming target (UNFCCC, 2025). The plan reflects Nepal’s unique vulnerabilities—high mountain ecosystems, climate-sensitive livelihoods, and limited adaptive capacity—while committing to transformative mitigation and adaptation actions.

Key highlights include:

• Total mitigation cost: USD 73.74 billion through 2035, with Nepal contributing USD 10.82 billion and the remainder expected from international climate finance (UNFCCC, 2025).

• Clean energy expansion: Increasing electricity generation capacity from 3,500 MW in 2025 to 28,500 MW by 2035, diversifying beyond hydropower to include solar, wind, micro-hydro, and bioenergy (My Republica, 2024).

• Electric cooking: Scaling electric cookstove adoption to 2.1 million households by 2035, reducing indoor air pollution and improving health.

• Decentralized energy governance: Empowering 400 municipalities to implement energy plans and enforce energy-efficient building codes (UNFCCC, 2025).

Electric Vehicles: A Cornerstone of Nepal’s Climate Strategy

Nepal’s NDC explicitly targets the transport sector, which is a major contributor to urban air pollution and GHG emissions. The plan includes ambitious EV adoption targets:

• 25% of private vehicle sales to be electric by 2025

• 60% by 2030

• 90% by 2035 (UNFCCC, 2025; Nepal Economic Forum, 2025)

This aggressive electrification roadmap aligns with Nepal’s abundant clean electricity, predominantly generated from hydropower, making EVs a highly effective mitigation tool.

Why Are EV Targets Central to Nepal’s NDC?

1. Emission Reduction Potential:
   Transport contributes significantly to Nepal’s energy-sector emissions. Electrifying vehicles can drastically cut tailpipe emissions, improving air quality in congested urban centers like Kathmandu Valley.

2. Energy Security and Economic Benefits:
   EVs reduce reliance on imported fossil fuels, improving trade balance and energy independence. Lower operating costs also benefit consumers and public transport operators.

3. Health and Social Gains:
   Reduced air pollution decreases respiratory illnesses and healthcare costs, while electric public transport improves accessibility and urban livability.

Case Study: Sajha Yatayat’s Electric Bus Fleet

Kathmandu’s Sajha Yatayat cooperative exemplifies NDC-aligned action, operating around 40 electric buses supported by government incentives and charging infrastructure. This fleet has lowered emissions, reduced noise pollution, and demonstrated the feasibility of electric public transport in Nepal’s challenging terrain (Nepal Economic Forum, 2025).

Financing the Ambitious NDC Targets: The Role of International Support

Nepal’s NDC 3.0 acknowledges that over 85% of its climate targets are conditional, dependent on international climate finance, technology transfer, and capacity building (My Republica, 2024). The energy sector alone requires USD 65.5 billion through 2035, with domestic resources covering less than 15%.

This financing gap underscores the need for global solidarity and streamlined access to climate funds, enabling Nepal to realize its EV and clean energy ambitions.

Challenges and Opportunities

Challenges

• Financial Constraints: Mobilizing billions in climate finance amid competing development priorities.

• Infrastructure Gaps: Expanding EV charging networks and grid modernization to support large-scale EV adoption.

• Policy Consistency: Maintaining stable, long-term policies to attract investment and consumer confidence.

• Technical Capacity: Building skilled workforce and institutional frameworks for EV deployment and maintenance.

Opportunities

• Hydropower and Renewable Energy: Leveraging Nepal’s clean electricity to power EVs sustainably.

• Decentralized Implementation: Engaging municipalities and local governments in energy and transport planning.

• Technology Innovation: Adopting smart grids, battery recycling, and second-life battery applications.

• Regional Collaboration: Partnering with neighboring countries and international agencies for finance and technology.

Conclusion

Nepal’s NDC 3.0 sets a visionary yet pragmatic framework for climate action through 2035, with electric vehicle adoption playing a pivotal role in achieving emission reductions and sustainable development. While the path is challenging, the synergy of domestic commitment, international support, and innovative solutions positions Nepal to become a model for green mobility and climate resilience in the region.

References

Ministry of Forests and Environment (MoFE), Nepal. (2025). Nationally Determined Contribution (NDC) 3.0. United Nations Framework Convention on Climate Change. Retrieved from https://unfccc.int/sites/default/files/2025-05/Nepal%20NDC3.pdf

My Republica. (2024, August 8). Nepal’s energy leap in NDC 3.0: A climate vision worth supporting. Retrieved from https://myrepublica.nagariknetwork.com/news/nepals-energy-leap-in-ndc-30-a-climate-vision-worth-supporting-53-52.html

Nepal Economic Forum. (2025, January 7). Decoding the rise of electric vehicles in Nepal. Retrieved from https://nepaleconomicforum.org/decoding-the-rise-of-electric-vehicles-in-nepal/

1. https://unfccc.int/sites/default/files/2025-05/Nepal%20NDC3.pdf
2. https://www.mofe.gov.np/uploads/uploads/notices/nepals-ndc-30-draftmofepdf-1883-1121744095024.pdf
3. http://climate.mohp.gov.np/attachments/article/167/Second%20Nationally%20Determined%20Contribution%20(NDC)%20-%202020.pdf
4. https://unfccc.int/NDCREG
5. https://myrepublica.nagariknetwork.com/news/nepals-energy-leap-in-ndc-30-a-climate-vision-worth-supporting-53-52.html
6. https://climateactiontracker.org/countries/nepal/
7. https://ekantipur.com/en/business/2025/05/16/3rd-national-defined-contribution-book-published-35-17.html
8. https://prc.org.np/wp-content/uploads/2024/12/f0c17922124c0b3da8053dc5c16d9cb3.pdf