Transition of industrial boilers in Nepal: Towards energy-efficient, clean fuel, and electric boiler technologies

About the event

The International Centre for Integrated Mountain Development (ICIMOD), under the aegis of the Government of Nepal’s National Air Quality Management Action Plan (NAQMAP), is organising a one-day consultation workshop to bring together key government, industry, technical, financial, and civil society stakeholders to share the landscape of available clean boiler technologies and their applicability across sectors in Nepal.

This workshop will provide a first opportunity to develop a structured understanding of the technical, financial, environmental, and social feasibility of clean boiler technologies and their applicability across Nepal’s industrial sectors and clusters, thereby informing the development of a national clean boiler transition roadmap.

The consultation is being supported by ICIMOD’s Himalayan Resilience Enabling Action Programme (HI-REAP), funded by United Kingdom International Development through its flagship Climate Action for a Resilient Asia (CARA) initiative.

Objectives

The specific objectives of the workshop are to:

• Review and assess the bouquet of available clean boiler technologies
• Identify the best technologies fit for the country’s industrial context and cluster configurations in Nepal
• Examine technical feasibility risks especially grid reliability, transformer capacity, and steam demand matching
• Evaluate financial risks including capital costs, operating costs, hidden costs, fuel/electricity price volatility, and financing mechanisms
• Discuss environmental, occupational health and safety, and social risks with mitigation measures
• Exchange best practices and experiences from Indian government agencies and entrepreneurs
• Agree on priority actions, data gaps, and next steps for the national transition roadmap

Expected outcomes

• A validated technology-to-sector mapping matrix agreed by stakeholders
• A prioritised risk register with agreed mitigation responsibilities
• A list of zones/clusters recommended for each technology pathway based on grid and demand analysis
• Agreed data gaps and studies required before full deployment (grid assessments, waste characterisation, demand forecasts)
• A consensus statement on financing mechanisms and inclusion safeguards
• An agreed action plan with responsible parties and timelines

Background

Nepal’s industrial sector relies heavily on fossil fuel-based boilers for steam and heat generation, particularly in sectors such as textiles, food and beverage, pharmaceuticals, brickmaking, and ceramics. These boilers are a significant source of air pollution, greenhouse gas emissions, and occupational health hazards. Transitioning to cleaner, energy-efficient alternatives is a national priority supported by the World Bank-financed project (PAD, 2026), which targets support for 400 enterprises.

Approximately 70% of surveyed enterprises have expressed interest in adopting cleaner technologies, signalling a strong foundation for action (World Bank, 2026). This workshop is a critical step in translating that interest into technology appropriate, risk-informed, bankable, and implementable decisions.

This transition is also directly aligned with Nepal’s national air quality priorities, given the significant contribution of fossil fuel based industrial boilers to ambient particulate matter (PM) and sectoral emissions in key industrial corridors. Industrial emissions, particularly from fuel combustion in industries, constitute a significant and growing share of air pollution in Nepal, emerging as one of the key contributors to ambient PM2.5 concentrations alongside transport and residential sources (World Bank, 2025). This initiative reinforces the country’s commitment to reducing industrial emissions as part of an integrated air quality and climate co-benefits strategy. By enabling a structured shift towards cleaner and more energy-efficient boiler technologies, this consultation supports Nepal’s broader objectives of improving urban and industrial air quality, protecting public health, and advancing low-emission industrial development pathways.