KATHMANDU, June 5: On Friday, as the world marks World Environment Day, experts say the government’s recently announced budget—focused on economic growth—has sidelined issues of environment and climate change.
They argue that although the ruling Rastriya Swatantra Party’s election manifesto placed strong emphasis on forests, environment, and climate change, the budget speech treats the sector as a formality or “token gesture.”
While nearly Rs 19 billion was allocated last year for forest, environment, and climate-related activities, the government has reduced the allocation to Rs 12 billion this year. This represents a cut of more than one-third. Experts say the reduction has weakened efforts in climate adaptation, loss and damage management, and emerging opportunities in the green economy.
They further argue that the budget, which prioritizes the middle and upper classes, has failed to address the needs of poor and vulnerable communities who are on the frontline of climate risks and natural disasters. As a result, they warn, inequality between rich and poor may widen further, making the budget less favorable from the perspective of climate and environmental justice.
“Overall, the budget lacks clarity on climate resilience, adaptation, mitigation, and attracting climate finance,” said Raju Pandit Chhetri, Executive Director of Prakriti Resources Centre. “Given the emphasis on economic expansion, infrastructure development, and governance, these issues must be viewed through a climate lens to ensure maximum benefit for Nepali citizens,” he added.
Similarly, experts have expressed surprise that the budget does not present a clear plan to reduce and replace fossil fuel imports worth over Rs 300 billion annually, while instead increasing taxes on electricity and electric vehicles.
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“The announcement to add 1,040 megawatts of electricity is positive, but without a clear plan to increase domestic consumption, priority seems to be given to export,” Chhetri said.
Experts warn that higher taxes on electricity may discourage its use among the general public, while increased taxes on electric vehicles could slow the transition to clean transport and potentially raise charging costs.
“This shows that instead of encouraging a sensitive sector, the government appears to be discouraging it,” Chhetri said.
He further added that if the budget had at least announced climate-friendly settlements in five out of the seven provinces, it would have sent a positive signal. “While the government is relying on foreign loans and grants as the basis of the budget, ignoring fundamental green priorities will make it difficult to attract climate finance,” he said.
“Without placing climate change at the center of Nepal’s development and prosperity agenda, progress is not possible,” he added.
Dr. Sanjay Acharya, who is responsible for climate and environment at the National Planning Commission, said the government is compelled to mobilize resources for a budget of around Rs 2.1 trillion for the upcoming fiscal year. He added, “The government is committed to advancing environmental protection, climate change, and development in a coordinated manner.”
Former government secretary and climate expert Batukrishna Upreti said that although climate change is the world’s biggest challenge today, increasing attention in recent years has led to reduced focus on other critical environmental issues such as biodiversity loss, mercury pollution, air pollution, and desertification.
“In recent years, almost every form of foreign assistance has been linked to climate change. As a result, priorities and plans are increasingly shaped not by actual needs but by available funding,” he said. “This has reduced allocations for biodiversity conservation and other environmental issues, pushing them into the background.”
Meanwhile, World Environment Day, observed every year on June 5, once again draws global attention to three major environmental crises facing humanity—climate change, biodiversity loss, and pollution. The United Nations describes these as the “triple planetary crisis.” These challenges are deeply interconnected: climate change weakens ecosystems, biodiversity loss disrupts ecological balance, and pollution severely affects human health and natural resources.
Experts say the problem is not limited to budget cuts alone. Along with climate change, biodiversity loss, pollution, and ecological degradation are becoming increasingly serious challenges for Nepal.
Despite covering only 0.1 percent of the world’s land area, Nepal hosts about 3.3 percent of flowering plant species, 1.1 percent of bird species, and 0.4 percent of mammal species globally. However, this rich biodiversity is under growing pressure. Although there have been notable achievements in forest expansion and conservation, habitat degradation, climate change, unplanned infrastructure development, pollution, invasive species, and unsustainable use of natural resources are increasing threats.
The Government of Nepal’s recently drafted National Biodiversity Strategy and Action Plan (2026–2030) states that biodiversity conservation is not only an environmental necessity but also a prerequisite for economic prosperity.
The strategy emphasizes that biodiversity should not remain the sole responsibility of the Ministry of Forests and Environment but must be mainstreamed across all development sectors. It highlights the need to integrate biodiversity conservation into road construction, hydropower, urbanization, agriculture, industry, and tourism projects. Given the frequent tension between development and conservation in Nepal, the strategy stresses that the two should be seen as complementary rather than contradictory for long-term prosperity.
However, strategies and commitments alone are not sufficient. Conservation goals must be translated into implementation. Without community participation, adequate financial resources, scientific research, effective monitoring, and policy coordination, these goals risk remaining on paper.
Experts say the economy and environment are not opposing forces. The foundation of long-term economic prosperity is a healthy environment and rich biodiversity. “Without a healthy nature, neither economic prosperity nor sustainable development is possible. Ultimately, protecting biodiversity and the environment means protecting human life, culture, and the future,” Upreti said.
