As Nepal and the world face unprecedented risks and hardships due to the coronavirus, we are all rightly focussed on immediate responses to the pandemic. The crisis highlights how vulnerable we all are to over-exploitation of our natural environment, and the increase in the risk of transmission of animal disease.
As we mark World Environment Day on Friday 5 June with the theme ‘biodiversity’, our attention is drawn to reduce such vulnerabilities and to use economic recovery efforts to ‘build back greener’. This is particularly important for Nepal, whose economy is highly reliant on natural resources, whether in agriculture, forestry, hydropower or nature-based tourism.
Nepal’s post-pandemic green revival, Kunda Dixit
All four sectors have been impacted adversely by the coronavirus lockdown, adding to existing environmental pressures and creating real hardships for millions. For example, the cancellation of Mt Everest climbing and trekking has brought the economies of towns like Namche Bazar to a grinding halt, adding to the existing risks from climate change.
“As the government forges efforts to build back the economy amidst the coronavirus crisis, these are important times to think ahead and consider options that enable us to also build back greener and better,” says Faris Hadad-Zervos, World Bank Country Manager for Nepal. “This will help contribute to the sustainable development of Nepal in ensuring long-term social, economic and environmental co-benefits to build prosperity and resilience of Nepalis.”
Growing back greener may seem to be something for the future, given that millions of Nepalis are currently concerned about the loss of their livelihoods. However, there is increasing consensus that growing back greener can generate jobs now — while ensuring that the recovery is sustainable.
Here are five reasons why this approach is very applicable to Nepal:
1. Resilience. Investment in disease control and disaster warning systems are cost-effective and can save over $5 for every $1 spent, according to the World Resources Institute. Social protection can also be rolled out quickly to help the most vulnerable and prevent people from to raiding natural resources like forests and riverbed materials out of desperation.
Job creation schemes to build resilient infrastructure, maintain roads, and build trekking trails in nature-based tourism destinations can all create jobs now, through initiatives like the Prime Minister’s Employment Program. Likewise, work to manage watersheds through afforestation and terracing to reduce erosion and landslide risks can also create employment while absorbing greenhouse gases and creating productive assets that are green and resilient.
2. Clean Energy. Nepal’s substantial hydropower, solar and biomass energy resources can be tapped to create sustainable jobs that have positive economic returns. Global surveys show that every $1 invested in renewable energy and energy efficiency brings economic returns of $3–$8. For Nepal, this is already economically attractive. By sustaining reforms for clean energy development as part of COVID-19 recovery, Nepal can increase international investment and create recovery jobs to ‘fuel’ a green recovery.
3. Nature-based Solutions. Nepal’s abundant and sustainable eco-tourism, forestry and agriculture sectors can quickly create hundreds of thousands of jobs and ensure that Nepal’s air, water and land resources remain clean and healthy. Nepal has a proud track record of increasing its forest cover to 45% and a well-connected, protected area system. These forest resources can now be used to generate thousands of jobs in sustainable forestry – supporting enterprises that can contribute to the economy.
Sustainable forest management practices can also protect ecosystems that are under threat from invasive species. Species that are migrating to higher altitudes as temperatures in mountain areas increase at twice the global average. This is economically important as Nepal’s pristine landscapes support some of the world’s most iconic and endangered animals and provide the basis for a world-renowned tourism industry. Protecting this natural capital in Nepal’s national parks and conservation areas against poachers is even more important during these challenging times. Likewise, human-wildlife conflict needs to be addressed to maintain co-existence between people and nature. Again, every $1 invested in nature can provide a return of up to $50.
4. Green Policies. Incentives are needed for green job creation by removal of taxes on green imports such as solar panels and providing credit for businesses to move to ‘green’ sectors such as high value organic farming. Green policies can include promotion of electric cooking to reduce indoor air pollution and fuel wood consumption while protecting women’s health. The economic cost on health from air and water pollution in Nepal was estimated at $259 million in 2015 by the World Bank.
Reduction of fossil fuel subsidies and enactment of policies to promote job creation in the forestry sector through sustainable extraction of timber is another area. Fiscal incentives for green investments by private sector enterprises in cleaner production, energy efficiency and improved sanitation are other measures, with the latter being a key factor for tourism development in the post-COVID recovery. All these measures have positive job creation potential. At the same time making sure the environmental impacts of new investments continue to be mitigated well, will be hugely important.
“A green recovery that channels investment into nature-based solutions and away from carbon-intensive growth will provide sustainable opportunities for employment generation, and improve wellbeing. It will contribute to international efforts to limit the increase of global temperature to 1.5°C and will help build inclusive and resilient societies in Nepal and the Himalaya,” says ICIMOD Director General David Molden.
5. Cooperation. Green recovery at all levels is critical to respond effectively to the COVID-19 pandemic. At the national-level cooperation is needed between local, provincial and federal governments, and internationally between Nepal and its neighbours and across the global community. For example, greater regional cooperation on water management can help over 1.6 billion people cope better with future floods and droughts. At the same time Nepal can earn over $9 billion per year by exporting hydropower resources in the region, clean power that can also reduce South Asia’s carbon emissions.
“Nepal’s force is its youth, several hundred used to quit the country daily before COVID. As we write, thousands are returning looking for livelihoods and ‘hope’,” says UNDP Resident Representative Ayshanie Labe. “Nepal is full of nature-based prospects that are opportunities to connect nature and technology to create livelihoods. Recovery efforts should not miss this chance to meaningfully engage with the Nepali youth, girls and boys alike, so that they become resilient.”
These five measures require public and private investments. Nepal is already investing in developing many of these natural resources, using both domestic and international sources. However, investments in COVID-19 economic recovery efforts provide both the need and opportunity to look for more innovative forms of financing. These could include issuing green bonds for job-intensive green infrastructure and developing financial instruments for risk-mitigation.
In addition, accessing additional climate finance for renewable energy, like Nepal’s Central Renewable Energy fund or raising revenue through the Forest Development Fund can help support a green recovery and meet Nepal’s sustainable development and climate commitments while creating the jobs to put Nepal firmly back on its path to a ‘Prosperous Nepal and Happy Nepali’.
Says Lisa Honan Country Director of DFID Nepal: “The UK is already supporting Nepal to build its resilience, improving health and early warning systems, supporting disaster management and building climate resilient infrastructure for the most vulnerable. At the same time the UK is also working with Nepal to develop its hydropower, solar power and forestry resources. We now want to adapt this work to support Nepal create sustainable jobs and ‘green its recovery’ so that it can act as a global example of sustainable, low carbon response from the corona virus pandemic.”
These five reasons provide a convincing argument for the Government of Nepal and its development partners to work together to develop plans and mobilise resources to support a green recovery that also contributes to Nepal’s longer-term development and climate goals.
Bishwa Nath Oli is Secretary at the Ministry of Forest and Environment, Maheshwar Dhakal is Joint Secretary at the Ministry of Forest and Environment and Rudriksha Rai Parajuli is Livelihoods Adviser with DFID Nepal. This commentary is not an official policy statement, and is supported by the Ministry of Forests and Environment, International Centre of Integrated Mountain Development, UK Department for International Development, United Nations Development Programme and the World Bank.
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