NEFPORT ISSUE 42 – SEPTEMBER 2020
ENVIRONMENT ENVIRONMENT The nationwide lockdown imposed to control the spread of COVID-19 pandemic has led to an improvement in the air quality of major cities. While a plan on improving the air quality of the capital has been approved that intends to replace old vehicles with electric vehicles, the budget of FY 2020/21 paints a different picture. With an increase in duties on electric vehicles by 80%, their demand is expected to be curtailed. From June to mid-August, the country witnessed a loss of NPR 77 million (USD 0.64 million) as a result of floods and landslides, however, this is less than the losses experienced in the same period for 2019 that accounted for NPR 1.42 billion (USD 11 million). In addition, after decades, Nepal also witnessed the swarm of locusts invading various parts of the country destroying crops in around 1100 hectares of land. Lockdown brings with it cleaner air: With development activities and
transportation coming to a halt in light of COVID-19 lockdown, the quality of air improved drastically in major cities of Nepal. The average concentration of pollutants with a diameter of less than 2.5 micrometers (PM 2.5) decreased by 34.9 μg/ m³ in Kathmandu from January 1 to April 24.98 The World Health Organization’s air quality guideline stipulates that 24-hour mean PM 2. 5 should not exceed 25 μg/m³ and that for PM10 should not exceed 50 μg/ m³.99 Legal provisions being introduced to improve air quality: Earlier in
February, Kathmandu Valley Air Quality Management Action Plan2020 was approved by the Council of Ministers whereby the government will implement Euro-IV standard, develop and enforce In-use Vehicle Emission Standard, introduce euro standard for heavy equipment and vehicles, enforce the use of diesel particulate filters in diesel-powered vehicles and make provision of
certification for auto workshops within two years100. Similarly, the private sector will also be authorized to develop charging stations for electric vehicles. The government will also make legal provisions to replace old vehicles with electric vehicles within two years. Locust invasion destroys crops:
Nepal experienced the first swarm of locusts entering the country after decades. Around 8 million locusts were reported to have entered Nepal in June101 which destroyed around 1100 hectares of crops. The crops that were mostly impacted were maize, vegetables and fruits. While this destruction does not have a pronounced effect on the overall economy, it certainly affects the livelihoods of the farmers who depend on these crops as their source of income. While the Ministry of Agriculture and Livestock Development (MoALD) has formed a task force to prevent possible impact of locusts on the agriculture sector of the country102, local and provincial governments are providing NPR 20
to 300 per kg of locusts as an effort to control the invasion.103 Government increases taxes on electric vehicles: In the budget
for FY 2020/21, the government has increased both the customs and excise taxes on electric vehicles up to 80 percent, depending upon the capacity of e-vehicles.104 Earlier, the government had been charging only 10 percent customs duty, 13 percent VAT, and 5 percent road tax on EVs.105 The lower rates of duties previously placed however, were not much effective in enticing buyers over conventional vehicles, hence the uptake of EVs was at a slower rate. With the additional duties, the motivation to invest in EVs has further declined thus creating barrier towards the achievement of clean and green economy, Flooding and landslides lead to losses worth NPR 77 million: With
the onset of monsoon, various parts of the country are witnessing events of floods and landslides. Between 1 June and 15 August 2020, floods
51
