Renewable Energy and Climate Adaptation E3.Nepal Model Handover to Policymakers and Regulators Capacity Building Workshop

Nepal stands at the forefront of experiencing adverse impacts of climate change, with its unique geography and socio-economic conditions amplifying exposure to climate risks and environmental change. To address the concerns, Nepal has developed comprehensive climate action frameworks that demonstrate ambitious targets requiring massive international support. NDC 3.0 establishes transformative clean energy expansion from 1,400 MW to 15,000 MW by 2030, with conditional targets requiring over 55 billion and unconditional targets USD 9.5 billion in domestic resources. While the country maintains 45% forest cover commitment while managing 50% of Tarai forests and 25% of hills/mountain forests sustainably, Nepal targets carbon neutrality by 2045 and net-zero emissions by 2050, requiring USD 196 billion total investment.

With limited budgets and scarce resources – including human, technical and institutional, Nepal faces the challenge of maximising the impact of policy interventions. In this context, ex-ante policy analysis becomes essential as it enables policymakers to compare costs and benefits of different approaches before implementation, identifying which interventions offer the greatest protection and return on investment. This forward-looking analysis helps avoid unintended consequences that could exacerbate vulnerabilities, particularly important given the interconnected nature of Nepal's climate challenges.

IRENA has developed a tailored Energy-economy-emission Model (e3.Np) for Nepal with country data and targets to bridge this gap by providing a macroeconomic tool tailored to Nepal’s national context. IRENA aims to organise a training workshop that will inform policymakers of IRENA’s assessment and support national experts to modify and adapt scenarios to reflect Nepal’s national priorities and perspectives. Working closely with ministries and key sectoral institutions, IRENA will facilitate knowledge transfer and strengthen institutional capabilities through targeted training and technical assistance.

The key rational is to strengthen national policymakers’ capacity for independent assessment, enabling coherent policy decisions that integrate development and climate objectives across sectors. This is part of IRENA’s on-going efforts to support its Member States to integrate global best practices in their national planning processes.