Govt sets ambitious target to raise EV share to 95% by 2035

The government has set a target to increase the share of electric vehicles (EVs) to 95 percent by 2035 as part of its updated climate commitment under the Nationally Determined Contribution (NDC) 3.0, approved by the Cabinet on May 14.

KATHMANDU, May 26: The government has set a target to increase the share of electric vehicles (EVs) to 95 percent by 2035 as part of its updated climate commitment under the Nationally Determined Contribution (NDC) 3.0, approved by the Cabinet on May 14.

According to the new target, the government aims to ensure that 95 percent of private two- and four-wheeler vehicles are electric, along with 90 percent of commercial public transport vehicles. Currently, EVs account for 12.38 percent of the vehicle market.

Prime Minister KP Sharma Oli had outlined the EV target earlier this month during the Sagarmatha Sambaad held in Kathmandu.

To meet the 95 percent EV goal, the government estimates a total investment of $9.2 billion (Rs 1.25 trillion). However, policy inconsistencies remain, as the government has continued to raise EV-related taxes. Taxes on EVs were increased in the current fiscal year and are expected to rise again next year, contradicting the government's stated ambitions.

As part of its broader EV strategy, the government plans to construct 50 kilometers of electric bus, trolleybus, and light rail transit systems in the Kathmandu Valley by 2030, expanding to 100 kilometers by 2035. This initiative is expected to require $12.75 billion (Rs 1.7 trillion) in investment.

Additionally, a 300-kilometer electric railway network for freight and public transport is slated for development by 2030, with an estimated investment of $5.55 billion (Rs 750 billion).

To support EV adoption, the government plans to expand charging infrastructure, set technical standards for EVs, train skilled human resources, and establish dedicated EV service centers by 2030. A national research center and vehicle fitness standards are also expected to be introduced before 2035.

NDC 3.0 also outlines plans to promote battery recycling by 2030 and develop effective public transport systems in Kathmandu Valley and other metropolitan cities by 2030, extending to all urban areas by 2035.

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