Economic and Policy Analysis for Emission Reduction from the Brick Industry in Nepal
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Washington, DC: World Bank
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The brick industry is one of the
primary sources of carbon dioxide emissions and local air
pollutants in Nepal. Coal, which accounts for one-third of
the current national carbon dioxide emissions from fossil
fuel sources and is entirely imported, is the primary fuel
in the brick industry. The brick industry accounts for 27
percent of the total carbon dioxide emissions from coal
consumption. The adoption of clean technologies or fuels in
the brick industry is crucial for improving air quality,
enhancing energy independence, and meeting the country’s
nationally determined contribution under the Paris Climate
Accord and the net-zero emission target set for 2045.
Substitution of imported coal with domestic energy resources
in the brick industry substantially reduces the country’s
import bills. This study examines the economics of various
alternatives to reduce coal consumption and corresponding
emissions from the brick industry. The study considers a
range of carbon taxes (US$10 to US$100 per ton of carbon
dioxide), an environmental fiscal policy. The US$10 per ton
of carbon dioxide tax would increase brick production costs
by 2 to 6 percent, depending on the energy efficiencies of
the technologies. If the carbon tax were US$100 per ton of
carbon dioxide, the cost of bricks would increase by 12 to
36 percent. However, implementation of the policy may not be
successful without enabling lower cost, clean alternatives.
For example, replacing more coal with biomass provides
direct cost and environmental savings but would require
relaxing strict forest protections. The study recommends
various promotional policies for non-fired alternative
bricks. It also argues that since using electricity for
firing bricks is an ideal option for reducing emissions from
the brick industry in Nepal, the government and development
partners should prioritize pilot projects for electric kilns.
Palabras clave
NEPAL, BRICK INDUSTRY, BRICK MANUFACTURING TECHNOLOGIES, ECONOMIC ANALYSIS, EMISSION REDUCTION, CLIMATE ACTION, SDG 8, INDUSTRY, INNOVATION AND INFRASTRUCTURE, SDG 9
