Since early 1990s, the government of Nepal has promoted various renewable energy programs with the main objectives of strengthening the rural economic system; improving the quality of rural life by supplying energy and increasing the opportunity for employment; and contributing to environmental sustainability. However, there is an urgent need for designing pro-poor incentive mechanisms in energy development programs to enable the poor and forest resource dependents to benefit from such programs. Moreover, the likelihood of the exclusion of the landless, in-migrants and the poor in the program is high, unless energy promotion technologies and subsidies of the government are not linked with social equity.
This report describes the programme framework of the Poverty-Environment Initiative (PEI) in Nepal, which has the overall goal to support poverty reduction and inclusive development by integrating climate and environmental concerns and opportunities of the poor into development planning and economic-decision making.