नेपाल पूर्वाधार 
Biraj Singh Thapa
Kathmandu — In a significant push toward clean energy, the Government of Nepal has prioritized sustainable energy development in its fiscal year 2082/83 budget, placing special emphasis on green hydrogen production and promotion.
Presenting the budget in the House of Representatives on Thursday, Finance Minister Bishnu Paudel stated that all machinery and equipment imported for green hydrogen production would be fully exempted from all forms of taxes and duties. Additionally, industries engaged in green hydrogen production will be granted income tax exemptions for five years. This decision has been viewed as a visionary and bold step toward sustainability. The budget also outlines plans to attract both domestic and foreign investment in green hydrogen projects. To support this, feasibility studies will be conducted in collaboration with universities and the private sector, helping to lay the groundwork for future hydrogen-based infrastructure and industries. Experts view these provisions as a significant policy shift that not only strengthens Nepal’s green energy ambitions but also sends a strong, encouraging signal to investors at home and abroad. By integrating tax incentives, research partnerships, and investment facilitation, the government hopes to position Nepal as an emerging player in the global green hydrogen sector, supporting both climate goals and economic development.
Key Highlights on Green Hydrogen from the FY 2082/83 Budget:
- Energy self-reliance and promotion of energy transition are taken as the priorities.
- Alternative energy production and consumption to be ramped up to lower carbon emissions.
- Feasibility studies on green hydrogen to be conducted in partnership with universities and the private sector.
- Domestic and foreign investments to be encouraged in green hydrogen projects.
- Tax and duty waivers on machinery and equipment for green hydrogen production.
- Five-year income tax exemption for green hydrogen industries.
Nepal had already formulated a green hydrogen policy back in 2080, setting a new direction for sustainable energy production and climate action. Several projects have been initiated in line with this policy.
Among the recent initiatives, a memorandum of understanding has been signed for a green hydrogen-based fertilizer production project in Koshi Province. The project aims to enhance agricultural productivity by supplying clean energy and organic fertilizer.
Kathmandu University, Green Hydrogen Lab has played a key role by supporting policy development through its green hydrogen lab and by implementing pilot projects, including the inauguration and operation of a hydrogen-powered car and refueling station.
Looking ahead, the government has placed high priority on building hydrogen technology infrastructure, energy production, commercialization, and electrification in this year’s budget. The objective is to reduce dependence on fossil fuels and move the country toward a clean, sustainable, and self-reliant energy system.
This initiative has been matched by a notable increase in private sector involvement. Many private companies are investing in green hydrogen-based projects and playing a strategic role. Through clear policy direction, financial incentives, and institutional support, the government continues efforts to further engage the private sector.
In conclusion, the FY 2025/26 budget speech has clearly and firmly demonstrated the government’s vision and commitment to green hydrogen. This is expected to strengthen policy, investment, and cooperation in the sector. If policy implementation remains stable and technological progress continues, green hydrogen has strong potential to play a vital role in Nepal’s energy self-reliance, sustainable development, and environmental leadership.