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“Nepal – Electric Transportation” approved by Mitigation Action Facility Board for the Implementation Phase

September 19, 2023
Electric vehicle charging station

Mitigation Action Facility Donors – the UK’s Department for Energy Security and Net Zero (DESNZ), the German Federal Ministry for Economic Affairs and Climate Action (BMWK) and the Children’s Investment Fund Foundation (CIFF) – have approved funding to support the implementation of an ambitious project in Nepal as part of the Ambition Initiative Call.

In a nation where transport contributes to 36% of annual energy-related greenhouse gas (GHG) emissions, the “Nepal – Electric Transportation” project aims to systematically overcome barriers hindering the electrification of the transport sector and promote electric transport technologies.

The project supports the minibus sector in the Kathmandu Valley and nearby regions with financial support and technical aid. It facilitates financing for 3,500 electric micro- and mini-buses (EMB) and nationwide charging stations, while advancing EV adoption through policy changes and capacity building. Additionally, it aims to establish a government Electric Mobility Unit, fostering green jobs, clean transport entrepreneurship, and improved commuting options to boost the country’s economic recovery.

Following the approval for a Detailed Preparation Phase (DPP)*, during which projects work to further elaborate the proposed project concept, a comprehensive Project Proposal was submitted to the Mitigation Action Facility. Based on an in-depth assessment of the Proposal, Donors then approved the project to enter the Implementation Phase 1.

The Mitigation Action Facility’s support for this project illustrates the Board’s continued commitment to ambitious climate action.

 *If you want to understand more about this project phase, check our publication in the Knowledge & Learning Hub on what it takes to craft a detailed project proposal.