Carbon and Climate Change

AEPC succeeded in registering its first Clean Development Mechanism (CDM) project as early as December 2005. Simultaneously two bundle CDM projects on biogas (Biogas Support Program-Nepal Activity-1 and Biogas Support Program-Nepal Activity-2) were registered with UNFCCC on the same day. This was landmark portal for Nepal in the international carbon markets and since then AEPC has been capitalizing the carbon opportunities. Being an apex institution for renewable energy promotion in Nepal and contribution of renewable energy for climate change mitigation as well as adaptation, AEPC realized that the scope be expanded beyond the horizon of mitigation and also encompass the adaptation in its domain. However, until 2010 institutional set-up within AEPC did not have dedicated unit to deal with the climate change related activities. In July 2010, the Climate and Carbon Unit (CCU) was established at AEPC with financial support from UK Department for International Development (DFID) and the technical assistance of SNV Nepal. Since its establishment, the unit has been catalyzing the renewable energy programmes in order to better address climate change issues. CCU develops and implements the carbon projects/programs in RE sector and support District Development Committees to prepare and implement the District Climate and Energy Plans (DCEP). The climate and carbon unit has following objectives:


  • To develop AEPC as knowledge centre of climate change mitigation and adaptation,
  • To provide support  to Ministry of Science, Technology and Environment (MoSTE) on climate change negotiations, policy/strategy and CDM
  • Further leverage the carbon mitigation and climate change adaptation potential of existing and future AEPC programmes/technologies,
  • To institutionalize and mainstream climate change mitigation and adaptation in the RET sector.

With the introduction of National Rural and Renewable Energy Programme (NRREP) since July 2012, the Climate and Carbon activities are dealt by a dedicated Climate and Carbon Unit under the Technical Assistance Component. The major output of CCU as defined by NRREP is “CDM and other carbon market instruments are functional and generate revenue”. The following activities are defined to achieve the output of the CCU as defined by NRREP.

  • Update knowledge of evolving rules and regulations in different carbon markets;
  • Develop a well diversified portfolio of projects using different instruments;
  • Put in place quality and performance assurance systems and monitor continuously; and
  • Support external monitoring and verification in an effective manner

On top up NRREP activities CCU provides technical support to MoSTE on following two areas:

  • Manage the work of formulating Low Carbon Economic Development Strategy for Nepal
  • Coordinate with DEECCS/DDC to implement Nepal Climate Change Support Program (NCCSP) in 14 districts