A carbon tax is one of the main pricing instruments for climate change mitigation. Many industrialized countries have practiced it and developing countries are also showing strong interest in it. For a country like Nepal, a carbon tax could be an instrumental vehicle to substitute imported fossil fuels with domestically produced hydropower.

In this connection, the Centre for Energy Studies (CES), Institute of Engineering, Tribhuvan University organized a half-day seminar on Carbon Taxes Design for Developing Countries. The working paper on the topic was presented by Dr. Govind R. Timilsina (Sr. Research Economist, Development Research Group, World Bank, Washington, DC). Further, Prof. Dr. Ram Manohar Shrestha (Emeritus Professor, Asian Institute of Technology, Thailand), and Dr. Rameshananda Vaidya (the former member of the National Planning Commission (NPC), Government of Nepal) highlighted the importance of understanding the potential role of a carbon tax in expanding hydro, solar and wind power in Nepal. The seminar has widely opened a discussion for studies on this topic.