Nepal – Electric Transport
Sustainable Electric Transportation for Nepal (SET4NPL)
Context
Nepal’s transport sector is at the centre of both the country’s economic development and its climate transition. Transport accounts for 36% of energy-related greenhouse gas emissions, while public mobility in Kathmandu remains heavily dependent on ageing, road-based systems and imported fossil fuels. At the same time, Nepal has significant potential for electric mobility due to its growing hydropower capacity and ambitious national electrification targets. However, the transition to electric public transport has faced major barriers, including high upfront costs for electric vehicles, limited charging infrastructure, restricted access to finance for public transport operators, and policy uncertainty.
The SET4NPL project is designed to address these structural barriers and accelerate the electrification of Nepal’s public transport sector. The project combines financial support, technical assistance, policy reform, and digitalisation measures to support the deployment of 3,500 electric micro- and minibuses (EMBs) nationwide. In addition to expanding public charging infrastructure, SET4NPL is introducing digital ticketing systems, route-planning tools, and support mechanisms for operators, while also strengthening institutional capacity through policy and regulatory reform. The project also aims to create green jobs and more accessible public transport services.
“Due to the project, people who were usually unable to afford these vehicles can now access them. It’s not just about the owner, driver, or conductor. Charging stations have also grown, creating more employment.”
