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Faced with long queues and eye-watering prices, filling up has been a painful experience for South Asia’s many self-employed drivers since the Iran war unleashed turmoil in global energy markets.

But in Nepal, above-average rates of electric vehicle (EV) adoption among minivan drivers like 52-year-old Gyanu Pattel have helped to soften the blow.

A year ago, Pattel swapped his Tata Sumo diesel SUV for a 10-seater electric van, which he uses to shuttle passengers 140 km (87 miles) back and forth from Birgunj near the Indian border to the capital, Kathmandu, each day.

Daily charging costs him $9, much less than the $45 he used to spend on diesel. While he also spends $600 a month paying off the loan for the van, he told Climate Home News that his income is sufficient and that in five years’ time, he will have paid it off.

“If I didn’t get enough passengers, I would incur losses,” he said, “Now I save on fuel and maintenance costs.”

An electric charging station in Kathmandu, partially funded by the UK government (Photo: Mukesh Pokhrel)

An electric charging station in Kathmandu, partially funded by the UK government (Photo: Mukesh Pokhrel)

Himalayan hydropower

While still a small market in global terms, Nepal is a leader on rates of EV adoption.

Nearly three-quarters of new cars sold in the country are now electric, 2025 customs data shows, one of the highest rates in the world. In neighbouring India, EV sales currently account for about 5% of the total market.

Sales of electric motorbikes, three-wheelers and minivans have also risen sharply since about 2020.

While Nepal has no oil or gas production of its own and is dependent on imports to meet its fuel needs, it has plentiful supplies of electricity generated by hydropower, making EVs a no-brainer for policymakers.

Bruised by previous oil supply crises, Nepal’s government has introduced policies to encourage EV adoption. When Russia’s 2022 invasion of Ukraine drove up fuel prices, the Nepali government cut the import tax for EVs to 43% compared with 257% for a petrol or diesel car.

At the same time, charging stations have sprung up across the country as a result of investments by the private sector and development aid.

No more panic

Nepal’s EV boom has brought multiple benefits beyond cutting air pollution and helping the country progress towards its goal for net-zero emissions by 2045, advocates say.

Reducing the country’s fuel needs is a way to shield its foreign currency reserves from spikes in global oil prices.

Electric minivans like Pattel’s have also helped improve public transport. For drivers like him, lower running costs mean they are more willing to leave with empty seats, meaning passengers have shorter waits and more comfortable journeys.

An electric school van in Kathmandu (Photo: Mukesh Pokhrel)

An electric school van in Kathmandu (Photo: Mukesh Pokhrel)

Above all, it cushions the impact of oil shocks like the current crisis triggered by Iran’s effective closure of the Strait of Hormuz, through which a fifth of the world’s oil and liquefied natural gas supplies flowed previously.

“Unlike in the past, rising petroleum prices do not create panic because there are alternative options,” said Sauden Badal, business developer at EV import company Shasheela Motors, which has an EV charging network across the country of 30 million people.

He said Nepal’s target to reach net zero by 2045 had convinced people that “the future is electric vehicles”.

Stung by past shocks

It was a major fuel crisis in 2015/2016 that helped kindle Nepal’s EV revolution.

A row between Nepal and India led protesters to block trucks carrying fuel from India into Nepal, causing months of acute shortages that prompted many Nepalis to shift to pedal-powered and electric two-wheeled vehicles.

Recalling that crisis, Bijay Lama, the driver of a 17-seater electric microbus, told Climate Home News he remembered waiting hours for diesel. This time around, he said, people are far less concerned about the fuel price hikes.

“Now, EVs have reduced such problems,” he said as he loaded a passenger’s luggage onto the roof.

Anil Chaudhari loads passengers’ luggage onto the roof of his 14-seater electric microbus

Anil Chaudhari loads passengers’ luggage onto the roof of his 14-seater electric microbus

In the early days of the country’s EV roll-out, finding a charging point was a concern, said Anil Chaudhari, who drives a 14-seater electric microbus. Today there are charging centres every 20 minutes on main roads and in urban areas.

“Charging facilities are available in almost every sector. I have travelled from east to west of the country driving an EV and I did not face any problems,” he said.

Nepal had just over 1,500 charging stations by the end of 2025, up from just 50 five years earlier, according to data from the Energy Ministry.

Long road ahead

Despite the progress so far, much more remains to be done, said Maheshwar Dhakal, head of the Environment Ministry’s climate change management division.

While smaller buses are going electric, bigger ones travelling long distances still mainly run on petrol and diesel, Dhakal said.

“Policies need to be reviewed and discussions will continue,” he said.

Jeevan Banjade, vice chair of West Nepal Bus Operator Limited, a major bus operator and association, urged the government to reduce customs duties on electric buses, EV batteries and spare parts.

He added that once works were completed on major roads, the private sector would invest in large electric buses.

‘Completely delusional’: UN climate chief warns against fossil fuel push after Iran crisis

Public investment is also needed to improve the nation’s electricity infrastructure. While Nepal produces plenty of electricity from hydropower in its mountains, transporting it to urban hubs like Kathmandu where it is needed is a challenge.

“We need to invest heavily in infrastructure such as transformers, transmission lines and distribution systems,” Ram Prasad Dhital, chair of the Electricity Regulatory Commission, told Climate Home News.

“If we can do this, our dependency on fossil fuels will decrease.”

The post Nepal’s EV revolution pays off as oil crisis causes pain at the pumps appeared first on Climate Home News.

Nepal’s EV revolution pays off as oil crisis causes pain at the pumps

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New York State Gets One Step Closer to a Data Center Moratorium

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The state Legislature just passed a bill that would place a 12-month freeze on permits for data centers. If the governor signs it, it would be the first statewide moratorium in the nation.

The New York Legislature passed a one-year moratorium Thursday night on data center permits, the latest sign of pushback amid a nationwide rush to build the power-hungry facilities. 

New York State Gets One Step Closer to a Data Center Moratorium

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As Energy Demand Rises, More States Turn to Virtual Power Plants

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The decentralized power systems are playing a growing role in the transition away from fossil fuels.

An executive order in Massachusetts and a regulatory commission action in Minnesota are among the big moves this year that highlight the growing role of virtual power plants in grid management.

As Energy Demand Rises, More States Turn to Virtual Power Plants

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What to expect from the Bonn climate talks

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The annual June climate talks in Bonn are taking place this year against the backdrop of an oil and gas supply crisis tied to the Iran war and deadly heatwaves in Europe, India and the Middle East. Can they produce anything substantial to ease the squeeze on economies and communities around the world?

Watchers of the negotiations say the UN climate process is under pressure to prove its worth at a time when climate action and clean energy offer an increasingly attractive alternative to the global economic and political instability brought by fossil fuel dependency.

Kaysie Brown, associate director of climate diplomacy and geopolitics at think-tank E3G, said the June 8-18 meetings “must show that the multilateral system can make a durable and politically resilient shift to support delivery [of climate action] at scale”. She added that it “will act as a key health check for the climate regime at a time of a rapidly shifting global order”.  

    There are hopes for significant progress on issues ranging from a new mechanism to support a just transition away from fossil fuels, to funding and measuring adaptation to worsening climate impacts.

    Bonn will also see the launch of dialogues on trade and climate change, on how to implement what was promised in the first stocktake of national climate plans in 2023, and on ways to shift global finance flows to support a low-carbon and climate-resilient world.

    Climate Home News doesn’t have a crystal ball, but we have done our homework. Here’s what experts expect to top the agenda at the World Conference Center by the River Rhine:

    COP31 priorities

    Bonn is where we will get a sense of what the joint COP31 hosts – Türkiye and Australia – want from their presidency. Signs are that they will push for a global goal on the share of final energy consumption that will come from electricity, which may be based on a target proposed by the International Renewable Energy Agency of 35% by 2035.

    Watch back: Webinar – From Santa Marta to Bon, where next for the fossil fuel transition?

    Other priorities already identified include energy storage, energy security and clean cooking. Türkiye has stressed reducing emissions from landfills as a priority for the “Action Agenda” strand of COP31, which encompasses government and business initiatives outside the formal discussions. Türkiye will lead on the Action Agenda, while Australia handles the negotiations.

    Just transition mechanism

    The Bonn negotiations are tasked with producing a draft decision on how to set up a new just transition mechanism that can facilitate a fair and orderly shift from a high-carbon world to a greener future. This decision will be forwarded for approval by countries at COP31.

    Governments agreed at COP30 in Brazil to set up what civil society has dubbed the “Belém-Antalya Mechanism” (BAM) but the details have yet to be worked out. Climate Action Network International, which has advocated strongly for the global mechanism, said it should be designed to provide decent jobs, social protection, public investment, energy access and support for affected workers and communities.

    How Belém launched the Just Transition mechanism

    “If governments move decisively, the [BAM] could become one of the most significant developments in the climate regime since the Paris Agreement – helping connect climate action with economic transformation and tangible improvements in people’s daily lives,” the coalition of hundreds of green groups said in a statement ahead of Bonn.

    Let’s talk trade

    At COP30, after two years of trying, emerging economies finally got the overlap between trade and climate policy onto the UN climate talks agenda. Governments agreed to hold dialogues on trade at the June Bonn talks in 2026, 2027 and 2028 before a summary of these dialogues is presented at a “high-level event” in 2028.

    What aspects of trade are to be discussed at the first such dialogue on Saturday June 13 is undecided. Developing-country heavyweights like China and India will likely be keen to criticise the European Union’s new carbon border adjustment mechanism, which they regard as protectionist and burdensome for their exporters. Representatives of the World Trade Organization and other trade bodies will make presentations, which governments and civil society will be allowed to comment upon.

    Brazil’s call for COP trade forum gets lukewarm response

    On Sunday June 14, a separate meeting of the fledgling Integrated Forum on Climate Change and Trade – an initiative launched by the Brazilian COP30 Presidency – will take place in a grand hilltop hotel overlooking Bonn and the Rhine. The meeting is not part of the official UN climate process or the official Bonn talks and will be more informal than the previous day’s dialogue.

    Topics that will be discussed are trade and climate adaptation, how to create a level playing field for low-carbon products, how to trade particularly polluting products and how to bridge climate and trade tools. An expert panel chaired by South Africa’s Faizel Ismail and New Zealand’s Jo Tyndall has been appointed to advise the forum.

    Aligning on adaptation 

    At COP30, talks on finalising a list of indicators to measure progress on adapting to climate change ended in recriminations, with several Latin American governments complaining that the decision was adopted by the Brazilian presidency without their consent.

    The indicators, which were developed by experts in a two-year process, were stripped down by the Brazilians on the last night of COP30 and presented to governments at the last minute as a done deal.

    New data shows rich nations likely missed 2025 goal to double adaptation finance

    Several governments and some of the technical experts have argued that many of the adopted indicators are unworkable, as they lack definitions or explanations of how they will be measured. Many indicators for important areas – like poverty reduction, ecosystems, infrastructure and food production – are missing or inadequate, they say.

    Government negotiators and experts now have two years to fix the mess, through a “policy alignment process” due to end at COP32 in Ethiopia. At the Bonn talks, governments will try to agree on who will make up a new taskforce of experts to help countries put the indicators into practice and how it will operate.

    Mission to 1.5 and Global Implementation Accelerator

    After pressure from small island nations, governments at COP30 agreed to set up the Belém Mission to 1.5 and the Global Implementation Accelerator (GIA) to speed up the implementation of countries’ emissions-cutting and adaptation plans.

    For the Mission to 1.5, several past and current COP presidencies are drawing up a report – scheduled to be published before COP31 – which will identify several especially impactful solutions to climate change. On June 12 in Bonn, governments and civil society will weigh in on what they want included.

    Also in Bonn, governments will input into the GIA. The Brazilian COP30 Presidency’s vision is that it should drive forward the strongest climate solutions. According to COP30 CEO Ana Toni, an independent panel of experts will pre-select 10-15 solutions and a council will narrow this down to three to five each year which the GIA would then aim to speed up.

    The GIA’s “added value is that it will focus exclusively on solutions with the potential to scale and generate cascading effects through high-impact exponential technologies”, she said last month.

    FILE PHOTO: A person points at a stack of trays holding treated limestone, used to absorb CO2 form the air, at Heirloom’s new plant, in Tracy, California, in this handout picture obtained by Reuters on November 9,2023. (Heirloom Carbon/Handout via REUTERS)

    FILE PHOTO: A person points at a stack of trays holding treated limestone, used to absorb CO2 form the air, at Heirloom’s new plant, in Tracy, California, in this handout picture obtained by Reuters on November 9,2023. (Heirloom Carbon/Handout via REUTERS)

    Whether Mission to 1.5 and the GIA will identify the same shortlist of solutions – and how they work together – is unclear. But the GIA could become a permanent body working on the real-world “Action Agenda” of COPs.

    Ruenna Haynes is the deputy lead negotiator for the small islands group (AOSIS) which pushed for these two initiatives, but she is now worried about what the COP presidencies might make of them.

    She told a recent briefing, “the last thing we want to do is to set up a process that is nothing more than a talking shop that doesn’t deliver and doesn’t go anywhere”. To avoid that, the reports of the GIA and Mission 1.5 must be linked to the wider UN climate talks process and at least discussed by governments, she emphasised.

    Finance roadmap and dialogue

    COP30 left a bitter taste regarding what was expected to be one of its main outcomes: progress on how to increase climate finance through the “Baku to Belém Roadmap to $1.3 trillion”. The initiative, included in the new finance goal agreed in Baku – the NCQG – was an effort to top up the 2035 target of $300 billion a year in public finance which fell short of what developing countries wanted and an independent panel of experts estimated would be needed.

    The high expectations surrounding this roadmap began to fade during 2025 as the process lacked transparency, clarity, participation and ambition. The result was a report abundant in general recommendations of actions to be taken but lacking clear commitments. Most of the suggestions mentioned are targeted at institutions outside the UN climate process, such as multilateral development banks.

    The COP30 decision merely “took note of” that report. So was it the end of the road for this particular roadmap? Not yet.

    From Baku to Belém and beyond: How we turn a climate finance roadmap into reality

    In Bonn, an “implementation” meeting will be held to “listen to the Parties and observers on the updated work being carried out,” as a member of the COP30 Presidency team told Climate Home News. The challenge is how to ensure the roadmap doesn’t remain fine words in a document and is put into practice. It will also serve either as a good or bad example for the other two voluntary roadmaps (on deforestation and fossil fuels) that the Brazilian presidency is putting together ahead of COP31.

    Also in Bonn, the Veredas Dialogue will address the opportunities and obstacles to implementing Article 2.1.c of the Paris Agreement – on making finance flows consistent with low-carbon development – and its complementarity with Article 9 on the responsibility of developed countries to provide financial resources. The limitations of the Baku to Belém Roadmap could shift the divisions between developed and developing nations to this dialogue, especially considering that 2026 is the first year for mobilising finance under the NCQG.

    More roadmaps on fossil fuels and forests

    At COP30, a group of 80 countries led a failed push to kickstart a process for a global roadmap to guide the transition away from fossil fuels (TAFF). As an alternative, the Brazilian presidency proposed to draft two voluntary roadmaps: one on phasing out fossil fuels and another to end deforestation by 2030, both commitments endorsed by all countries in the COP28 deal.

    In the lead-up to Bonn and after months of consultations with countries, Brazil presented an outline for the forest roadmap – which will invite countries to submit their own voluntary national roadmaps to halt forest loss. 

    It will also include a menu of options to bridge the $216-billion forest funding gap. One of the key initiatives to achieve this is the new rainforest fund, the Tropical Forest Forever Facility (TFFF), which is still rallying investors for seed funding. Brazil convened an investor meeting in Rotterdam last week, with participation from over 50 financial institutions – including BlackRock, Bank of America and Barclays – and 30 government representatives.

    COP30 rainforest fund unlikely to make first payments until 2028

    While not on the formal negotiating agenda In Bonn, Brazil will continue consultations on the forest roadmap at an event with governments on June 8. The final document is expected to be published later in September.

    As for the TAFF roadmap, Brazil will hold an open event on June 12 after receiving suggestions from 120 countries. It is expected to be informed by the first global fossil fuel phase-out summit held in Santa Marta in April.

    COP30 advisor Flávia Bellaguarda told an online briefing that the informal sessions in Bonn are meant to open a “space for dialogue” on both roadmaps, and that the more countries engage, the more international relevance the process gains.

    “We managed to get the elephant into the room. Now, it needs to stay there. For that, we need to give him plenty of food so he can’t fit through the door and leave. We achieve that with dialogue and creating space for genuine exchange,” the Brazilian advisor said.

    The post What to expect from the Bonn climate talks appeared first on Climate Home News.

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