ADB_book_18 April.qxp - Himalayan Document Centre - icimod

Policy ResponseRecent years have witnessed the emergence of anumber of national and local responses toenvironmental problems in Nepal. These initiativesare described below.Regulatory MeasuresAir pollution is increasingly recognized as a seriousproblem in urban and peri-urban settlements.Accordingly, ambient air quality standards have beenformulated (Table 7.3). Public awareness and judicialactions have also prompted policy initiatives.However, enforcement of the standards still needs tobe strengthened.The transportation sector is one of the maincontributors to air pollution in urban areas. TheGovernment has taken several measures to reducevehicular emissions, which are described below.Nepal introduced vehicle exhaust emission testsin 1994 following the tail-pipe standards of 65hartridge smoke units (HSU) for diesel-operatedvehicles and 3% CO for petrol-operated ones. Avehicular color rating system with respect to theexhaust emission standards was introduced. Thissystem provides green stickers to vehicles meetingthe emission standard and red stickers to vehiclesfailing the test. See Table 7.4 for details.Nepal Vehicle Mass Emission Standard 2056(2000) is the Government’s major step towardsreducing emissions per kilometer of travel. Thisstandard is similar to the European Union standard,popularly known as the EURO-1 standard.Actions undertaken include the following. Sincemid-September 1999, 3-wheel diesel tempos havebeen banned in Kathmandu Valley, Pokhara, andLumbini. Electric vehicles and LPG 3-wheelers havebeen introduced to meet the public transportdemand. Lead free gasoline was introduced inKathmandu Valley in July 1997, and since December26, 1999 only unleaded gasoline has been distributedin Nepal. The Government resolved on November 10,1999 to ban movement of vehicles older than 20years and all three wheelers and two-stroke enginesfrom the Valley beginning middle of November 2001.But this decision was not implemented by theGovernment due to protest by many vehicle owners.The Government has already banned the registrationof new two-stroke engine vehicles in Kathmandu.Measures have been taken to ban the pollutingbull’s trench kilns from Kathmandu Valley, andregistration of these kilns has stopped. The Governmentclosed the Himal Cement Factory followinglocal public complaints. Pollution-prone industriesmust now obtain licenses prior to establishment orexpansion. Licenses for such industries will be givenonly after ensuring that they have no adverse impacton the environment. Industrial pollution controlregulations have been drafted and environmentalimpact assessment (EIA) guidelines have beenprepared for each industrial sector.Regulatory measures have also been introducedto address the problem of ozone depletingsubstances (ODS). Nepal is a signatory to theMontreal Protocol, and the Nepal Bureau ofStandards and Metrology has been designated toimplement it. The Gazette Notification issued onSeptember 2000 determines the annualconsumption quotas and established an annualphase out of chlofluorocarbons, hydrochlorofluorocarbons,halons, and other ODS. Similarly, theODS Consumption (Control) Regulations 2001,requires all ODS importers to obtain licenses andforbids re-export of imported substances to othercountries. The joint phase-out rate of CFC 11/12 willbe 10% a year, to reach zero by 2010. Because allthese substances are imported from other countries,it is feasible to keep track of the amount of ODSbeing consumed and to achieve this goal by 2010.Economic InstrumentsFinancial incentives in the form of tax concessionsand subsidies are common practices as economicinstruments. The Department of Transport Managementcharges tax according to the date of vehiclemanufacture, with a higher tax levied on vehiclesolder than 20 years.Similarly, a levy of NRs 0.50 per liter wasintroduced on the sale of petrol and diesel. Theamount collected goes to the Kathmandu ValleyDevelopment Fund for pollution control,environment protection, and improvement of roads,sewerage system, and water supply. However, thisstill needs to be implemented (personalcommunication, Ministry of Environment, Scienceand Technology [MOEST]).Other initiatives include a subsidy on alternativeenergy, as follows: solar photovoltaic—50% subsidy;PV pumping system—75% subsidy; solar dryer—50%subsidy (1998).Technological ImprovementsEnvironmental considerations have started toinfluence industrial establishments, requiring themto limit their emissions and wastes. Due to publicpressure from nearby residential areas and fromconsumers, industries are gradually being requiredto utilize environmentally friendly processes (ESPSundated). ESPS has started one such activity inHetauda Industrial District.Chapter 7: Air Pollution and Climate Change95