Energy and Environment Division

The Energy and Environment Division is a permanent organ of FNCCI working to upgrade the quality of energy and environment use within Nepal. It is set up to provide varied services to industries and to be a bridge between industry and Government. It is the endeavor of this division to address the energy and environmental issues, provide technical support to industries in a harmonize way.

Organizational Structure:





1. Energy Committee:

FNCCI with its objective and vision covers several areas to address the burning issues of country. Through 3 Councils, 15 Committees and 5 Forums FNCCI is proactively playing a major role for the sustainable economic growth of the nation. Out of these committees, Energy Committee is working to put views of private sector on national energy part. Lead by Mr. Gyanendra Lal Pradhan as a committee chairman, it comprises of 16 members and 6 advisory from different disciplines such as Alternative Energy and Promotion Centre (AEPC), Independent Power Producers, Energy Experts, Forum for protection of Consumer Right Nepal etc.


  • To fulfill the objective and vision of FNCCI.
  • To help Government of Nepal in developing energy sector through the sharing of expertise, and know-how so as to sustainable development.
  • To share and disseminate various ideas and knowledge on hydropower, renewable energy.
  • To create an atmosphere of friendly cooperation between Government of Nepal (GON) and private sector.
  • To create a forum for discussion on development of energy.
  • Working as a bridge between Government of Nepal and Private sector.


  • Lobby for private sector friendly policies, regulations and its effective & qualitative implementation.
  •  Develop linkage for regional and international co-operation in power sector.
Currently, Energy committee is focusing on security issues, Transmission line, Finance and Foreign Direct Investment, Alternative Energy and Independent power producers (IPP) issues through its subcommittee.

2. Energy Efficiency and Environment Forum

Energy is an irreplaceable part of our life and it is highly correlated with the environment. With a vision to create sustainable environment, FNCCI – Energy Efficiency & Environment Forum has been working on environmental issues its coherent relation with energy. Composite of 18 members and four advisory members from highly expertise areas, Mr. Sanjay Giri is heading Forum as a Coordinator.

  • To raise awareness on climate change, energy efficiency, environmental impacts, ISO standards among key stakeholders (relevant government officials, civil society, researchers, professionals, media, Energy & Environment experts,) through various activities.
  • To create an atmosphere of friendly cooperation between Government of Nepal (GON) and private sector.
  • To create a forum for discussion on development of environment.
  • To establish a networking and coordination with regional and global players.
  • To conduct regular interaction programs, seminars and workshop.
  • To promote carbon resilience and low carbon economic development.

3. Projects/ Programmes


(i) Energy Efficiency Centre:



Energy Efficiency Centre is a nodal agency established under Energy and Environment Division (EED) of FNCCI in 2009. Energy efficiency could play an important role to overcome the current energy crisis in the country. Previous experiences have shown that there are huge saving potentials in both thermal as well as electrical energy. Amore energy efficient Nepalese industry will be more productive and competitive on the international markets. Enhancing efficient use of energy will also slow down the growth of energy demand and, thus, reduce the investment costs in the generation sector.

Therefore, there is a substantial need for a highly competent think tank which brings energy efficiency on the top agenda and provides energy efficiency related services in Nepal. The new Energy Efficiency Centre (EEC) is aiming at the provision of those activities and services. In order to support for the EE, FNCCI along with GIZ/ Nepal Energy Efficiency Program (NEEP) has been working  together since 2009.
EEC is a central nodal agency to enhance efficient energy use in the Nepalese Industry and business.
Facilitate Nepalese industry and enterprises in adapting energy efficient technologies, processes and practices to enhance competitiveness.

Long-term strategic goals or objectives:
EEC a not for profit unit within FNCCI, provides services to the member and non-member industries and business. It works as a central nodal agency for private sector to foster efficient energy use.
  • To develop a Networking in all Districts / Associations / Industrial Estate.
  • To be a platform for exchange and development of Energy efficiency knowledge & services.
  • To build Capacity in this field
  • Create a platform for working with development agencies and government of Nepal.
  • To develop sustainable and Eco-friendly Nepalese economy.

For more information (Energy Efficiency Centre website):


Nepal Energy Efficiency Programme (NEEP)

Nepal Energy Efficiency Programme (NEEP) is being implemented to promote and realize energy efficiency in Nepal since 2010. The Nepali- German programme NEEP is implemented by the Ministry of Energy, Government of Nepal with technical assistance provided by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), acting on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). After completing its first phase in June 2014, NEEP continues to support improving the efficiency use of energy in Nepal in its second phase from July 2014 to June 2017. The programme assists with the introduction of market based energy efficiency services for the private and public sector. It also backs the development and introduction of performance for biomass based improved cooking stoves for rural households. Moreover, it provides direct advice and expertise to the government for the establishment of policy and institutional framework to foster energy efficiency in the country.

Component 1: Energy Efficiency Market
Along with growing prominence of energy efficiency in the country achieved in the past through NEEP, the second phase of NEEP focuses on horizontal and vertical widening of the energy efficiency market. The Energy Efficiency Center (EEC) under the Federation of Nepalese Chamber of Commerce and Industry as well as energy efficiency units at District Chamber of Commerce and Industry in various districts continues to provide energy efficiency services not only to industrial sectors but also to energy intensive public infrastructure. Unlike during the initial phase, the energy efficiency services are provided to any energy intensive industries, which in the initial period was limited to eight industrial and commercial sectors. 


(ii) Standarisation in the South and South East Asia (SESA)

The SESA Programme is a regional programme, which promotes trade and sustainable and environmentally friendly development through standardization. Eight Countries in the south and southeast Asia regions are included: Bangladesh, Sri Lanka, Pakistan, Nepal,  Cambodia, Laos, Indonesia and Vietnam.
This Programme is part of the Swedish Government Politics for global development (PGU) and funded by the Swedish International Development Cooperation Agency (Sida) under the facilitation of the Swedish Standards Institute (SIS).  SIS through its wide network among the National Standard Bodies (NSB’s) in the region and by partnering with South Asia Watch on Trade, Economics and Environment (SAWTEE) and consumer unity and trust society International, two nongovernmental organizations; the programme brought together various stakeholders from private/ public sectors such as universities, policy Institution, chamber of commerce, companies and Ministries. This enabled more stakeholders to secure a strong commitment and establishment of a local and regional ownership of the program.

Currently, FNCCI is working in Carbon footprint, ISO 14001 (Environmental Management System) and Gender issue through this project.


Completed Projects:

(i) Nepal Energy Efficiency Programme (NEEP) - Phase 1

Within the framework of bilateral Development Cooperation between Nepal and the Federal Republic of Germany, the joint implementation of “Nepal Energy Efficiency Programme” has been agreed upon in 2009. The lead executing agencies for the implementation are the Water and Energy Commission Secretariat (WECS) and the German Development Cooperation (GIZ). NEEP is a Technical Cooperation programme with an eight-year horizon and a first phase ending in 2014. It is conducted on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ).

International experience demonstrates that the efficient use of energy is a win-win-win option:
  • Private households and industries reduce their cost for energy consumption,
  • Utilities may plan for less capacity additions and require less investment capital,
  • Less consumption of natural resources conserves the environment and climate.
Benefits of the efficient use of energy can be derived from all primary and secondary energy sources, i.e. fuels, electricity as well as for biomass and other renewable energies. Given the present situation in Nepal the approach of NEEP addresses two different issues. It will support the Government of Nepal to introduce a policy framework towards the efficient use of energy and it will demonstrate the benefits of energy efficiency for private households and the industry. Besides the NEEP working areas of households and industry there are other working areas which are relevant for energy efficiency such as public and private buildings, the transport sector and investment in infrastructure. These working areas are not covered during the present phase of NEEP.

The NEEP approach of the ongoing phase consists of three components:

1. Policy Advice towards Energy Efficiency
NEEP will support the drafting of an Energy Efficiency Strategy (EEST) as well as a Biomass Energy Strategy (BEST). Both Strategies will be complementing the National Energy Strategy. In many countries Energy Efficiency/Conservation Policy is an integral part of the Energy Policy and of the respective development plans. The policy sets the regulatory framework and incentives for the energy sector and the energy consumers to balance supply and demand on low or moderate economic cost.
The Implementing Agency for this component is WECS with the support of AEPC for drafting the Biomass Energy Strategy.

2. Energy Efficiency in Households
This component is concerned with the introduction of Minimum Efficiency Performance Standards (MEPS) for electric household appliances follows the experience of the introduction of the CFL in the Nepalese market. Many of the imported electric household appliances such as refrigerators, lightbulbs and ricecookers are already efficiency labelled and give the consumer some indication of the electricity consumption.

The Implementing Agencies are NBSM and NEA.

Another part of this component is the dissemination of improved cooking stoves (ICS) for more efficient use of biomass in rural households and the efficient use of electricity in predominantly urban households. The dissemination of ICS will be implemented within the framework of the National Rural & Renewable Energy Programme (NRREP). The NEEP approach has a pilot character for new ISC-models and dedicated target groups.

The Implementing Agency is the AEPC with support from FECOFUN.

3. Energy Efficiency in Industries
Nepalese industries offer a huge potential to cut production cost by using energy more efficiently. In order to tap on this potential NEEP supports the capacity development of the Energy Efficiency Center (EEC) under FNCCI, qualifies energy auditors for the industry and conducts pilot energy audits. In addition, NEEP supports cooperation and networking with other regional institutions regarding services for the industries and technology providers. It is expected that industries will invest in modern, cost and energy saving technologies as recommended in the energy audits. NEEP will also provide information to banks to enable them to offer financial services to the industries for investments in energy efficient technologies.

The Energy Efficiency Center (EEC) under FNCCI is the implementing partner of NEEP component-3. EEC is a not for profit autonomous body which aims to provide energy efficiency services to the Nepalese industrial sector.

As of now, NEEP has identified eight energy intensive industrial sectors, including manufacturing and service industries. The eight sectors are: Hotel, Metal, Food and Beverage, Cement, Pulp and Paper, Cold Storage, Soap and Chemical and Brick industries. NEEP baseline study among 200 sample industries of above eight sectors indicates that, energy saving potential in these eight sectors is around 15% in electrical and 30% in thermal energy.

The EEC and NEEP services to industry will help in saving considerable amount of energy and cost, with additional benefits of saving resources and emission reduction. It will also help Nepalese economy in reducing the costly import of petroleum products and coal.

For more information:
At Energy Efficiency Center (EEC) website:
NEEP project website:

(ii) Sustainable and Efficient Industrial Development (SEID)

The Sustainable and Efficient Industrial Development (SEID) project is an initiative under the Switch Asia Program of the European Union which seeks to shift consumption and production activities in Asia to a more sustainable manner. The project focuses on implementing “Resource Efficiency and Responsible Production” interventions in the tourism industry and agro-based industries, which significantly contribute to the economic development of Nepal, yet also to carbon emissions and resource exploitation.

Tourism and Agro-based Industries are an important growth sector in both Nepal and Bhutan and contributes significantly to their GDP, employment generation, and foreign exchange earnings. However the rise in tourists’ arrivals has put extra pressure on developing additional infrastructure and has contributed directly to environmental degradation, waste generation and environmental pollution. Competitiveness of Agro based Industries are fast eroding as a result of outdated technology, lack of optimized process and unsustainable sourcing. In Nepal demand for electricity increases by 10% every year whereas production remains constant and the 12 hours daily power cuts are a reality. While both Bhutan and Nepal have ample supply of water, the water tables in many famous tourist destinations and industrial zones are stressed. These are big challenges that need to be addressed. The Project SEID is designed to directly address several issues faced by both sectors. Its main objective is to transfer best practices, technology and proven approaches on Sustainable Consumption and Production (SCP).

Project Brief:

Title: Sustainable & Efficient Industrial Development (SEID) – Bhutan and Nepal
Project Duration: 40 Months (2012-2015)
Project Location: Nepal & Bhutan
Target Sector: Tourism and Agro-based Industries

Primary Target Groups:

  • Small and Medium Enterprises (SMEs) from the target sector;
  • Local experts from private consulting and training companies, industry/business associations and academe, freelance consultants;
  • Public institutions, government authorities, industrial park management authorities and policymakers;
  • Other Micro, Small and Medium Enterprises (MSMEs) in the target region.


The project shall contribute towards sustainable development of Nepal’s and Bhutan’s economy with a clear focus on the tourism and agro-based industries.

The main objective is:

  • To reduce costs and pollution; improve health and safety performance in the target sector.

  • To enhance the capacity of national anchor associations and service providers to collaborate and promote sustainable practices to their supply chain and members,providing technical support and input to SMEs to improve the overall resource efficiency of their production processes from the life cycle perspective

  • To build strategic partnerships with on-going initiatives in the target sector, providing access to existing knowledge, Information Education Campaign material to address needs of SMEs.

  • To facilitate dialoguing and networking amongst key stakeholders including government, financial institutions, industry associations, academia aimed at creating and enabling environment which propagates and incentivizes adoption of sustainable industrial practices.

Project funded by:

  • European Union
  • Austrian Development Cooperation (ADC)

Project Implemented by

  • GrAT
  • Asia Society for Social Improvement and Sustainable Transformation (ASSIST)
  • Federation of Nepalese Chambers of Commerce and Industry (FNCCI)
  • Butan Chamber of Commerce and Industry (BCCI)
  • Deutsche GesellschaftfürInternationaleZusammenarbeit (GIZ)
  • Austria Recycling (AREC)
  • Stenum Asia
  For more information





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