Carbon prices and greenhouse gases abatement from agriculture, forestry and land use in Nepal

Abstract

The Agriculture, forestry and other land use (AFOLU) sector as a whole accounts for more than 80% of the total greenhouse gas (GHG) emission in Nepal. This study estimates the GHG emissions from the AFOLU sector in the business as usual (BAU) case during 2010–2050 and identifies the economically attractive countermeasures to abate GHG emissions from the sector at different carbon prices. It also estimates the carbon price elasticity of GHG abatement from the sector. The study finds that enteric fermentation processes in the livestock and emissions from agricultural soils are the two major contributors of GHG emission in AFOLU sector. It identifies no-regret abatement options in the AFOLU sector that could mitigate about 41.5% of the total GHG emission during 2016–2050 in the BAU scenario. There would be a net cumulative carbon sequestration of 16 million tonnes of carbon dioxide equivalent (MtCO2e) at $10 per tonne of carbon dioxide equivalent (tCO2e) during the period. Carbon price above $75/tCO2e is not found to be much effective in achieving significant additional reduction in GHG emissions from the AFOLU sector.