Kathmandu is one of the fastest growing cities in South Asia facing various challenges related to climate change, local pollutants emissions and energy security of supply. This study analysed the greenhouse gas mitigation potential in different economic sectors of the city by using Long-range Energy Planning (LEAP) frame work. It shows that the effect of implementing various low carbon development strategy options can reduce 35.2% of total greenhouse gas emission from energy use as compared to the base case scenario in 2030. This indicates the need for exploring the possibility of utilizing the global climate funds and adopting voluntary mechanisms for greenhouse gas mitigation. The estimated demand side technology investment cost of low carbon measures for different sectors ranges from less than USD 1/tonne CO2e for residential sector to USD 99/tonne CO2e for transport sector. The low carbon options also results co-benefits in terms of significant reduction in emission of local pollutants and improvement of energy security. As Government of Nepal has envisioned following low carbon economic development path on the long run, there is the need of establishment of regulatory framework, institutional framework and development of clear action plans for realizing the implementation of low carbon development strategy measures in the country.
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