Nepal Makes Rs. 1 Billion Annually Through Carbon Trading

Nepal has come a long way in switching to biogas and reducing its dependency on forest for firewood and Liquefied Petroleum Gas (LPG).

The details:

• The biogas replacement program that started in 1975 has installed biogas plants in 400,000 households across the country.
• Nepal Biogas Promotion Association (NBPA) said that Nepal is earning Rs. 1 billion annually in carbon trading which primarily is contributed by the biogas sector.
• Carbon trading is an approach used to control carbon dioxide (CO2) pollution by providing economic incentives for achieving emissions reductions.
• According to the Padam Dulal chairman of the NBPA, the nation can still construct additional 600,000 plants across the nation.
• Currently Nepal has over 120 biogas companies carrying out the construction of the biogas plants in coordination with Alternative Energy Promotion Centre (AEPC).
• A plant has been set up in Rupandehi which produces 300 cylinders of biogas daily out of urban wastes.

Why it matters:

• Biogas can be produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste or food waste.
• One biogas plant saves 3.3 tons of firewood every year which is equal to two trees.
• In addition, the country is also earning. A biogas plant saves 3 tons of carbon every year. Annually each plant earns USD 15 in revenue through carbon trading.