The ATO green roads profiles present country-level perspectives on how 35 Asia-Pacific economies are addressing the development and management of sustainable eco-friendly roads. Drawing from diverse datasets and policy documents, the profiles highlight practices and measures that contribute to greener transport infrastructure.

Developed by the Asian Transport Observatory (ATO) in partnership with the International Road Federation (IRF), the profiles are designed to complement the Green Roads Toolkit. The toolkit provides a practical reference for integrating good practices across nine dimensions:

• Decarbonization
• Climate resilience
• Water and land management
• Pollution reduction
• Conserving biodiversity
• Responsible sourcing of materials
• Improving quality of life
• Disaster preparedness
• Fostering inclusive growth

This 2025 edition builds on earlier work to provide a comprehensive resource for guiding the planning, development, construction, and management of greener, more sustainable roads.

Nepal's road network has expanded significantly over the last two decades, evolving from a mechanism of basic connectivity to a complex driver of both economic integration and environmental strain. Between 2000 and 2024, road availability more than doubled, rising from 1.5 to 3.9 kilometers per thousand population. The physical footprint now spans 115.3 thousand kilometers, a system overwhelmingly dominated by local and rural roads, which account for 94% of the infrastructure stock. Yet, this connectivity dividend has been accompanied by a disproportionate escalation in emissions. While economy-wide greenhouse gas (GHG) emissions grew at a modest 1.5% annually since 2000, road transport emissions increased by 7.7% per year over the same period. By 2024, the sector reached 5.0 million tonnes of CO2e—representing 98% of total transport emissions—indicating that the decoupling of mobility demand from carbon output remains elusive.

The intensity of these emissions reveals structural inefficiencies. Nepal's road transport emissions intensity stood at 30 grams of CO2e per USD of GDP in 2024, notably higher than the Asia-Pacific average of 26 and the South Asian average of 19. This trajectory is driven by a fleet composition where Light Duty Vehicles (LDVs) constitute 58% of network users, followed by two-wheelers at 22%. However, a rapid market shift is underway, signaling a potent opportunity for decarbonization.

Between 2015 and 2024, the value of Electric Vehicle (EV) imports totalled 610 million USD. In 2024 alone, EVs captured an unprecedented 53% share of total road vehicle imports, primarily driven by LDVs. This market dynamism is reflected in UNEP's E-mobility Readiness Index, where Nepal scores 70 out of 100, though policy and financial readiness lag behind market adoption.

Beyond carbon, the external costs of the current transport model weigh heavily on the national economy and public health. The World Bank estimates the annual cost of health damages from PM 2.5 exposure amounted to 10.4 billion USD in 2019, equivalent to roughly 10% of GDP. The concentration of PM 2.5 reached 81.4 micrograms per cubic meter, resulting in at least 1,100 premature deaths attributed to tailpipe emissions. Concurrently, road safety indicators remain alarming. The World Health Organization estimated 8,479 fatalities in 2021.The economic burden of road crashes in Nepal is substantial. Fatalities and serious injuries cost an estimated 3 billion USD in 2021, equivalent to roughly 7% of Nepal's GDP. This surpasses the country's healthcare expenditure of 5.4% of GDP in the same year. The quality of road infrastructure plays a crucial role in road safety. As of 2024, only 17% and 32% of Nepal's roads have a 3-star or better IRAP rating for pedestrians and bicyclists, respectively. While these figures are comparable to the Asia-Pacific averages, there's still significant room for improvement. For vehicle occupants, at least 35% of the road infrastructure has a 3-star or better rating, while only 27% achieve this rating for motorcyclists, highlighting a disparity in safety standards for different road user groups. Nepal had high fatality rate per road infrastructure, about 78 fatalities per thousand kilometers of road.

Infrastructure resilience poses a parallel challenge in this geologically fragile region. Under a 4.5-degree warming scenario, over 34% of Nepal's road assets face exposure to frequent and extreme precipitation. The financial implications are immediate: the country faces average annual losses of 13.9 million USD to transport infrastructure, with bridges and tunnels bearing a disproportionate share of the risk relative to their network length. Furthermore, expansion has encroached upon ecological integrity; 25 of Nepal's 30 Key Biodiversity Areas (KBAs) now contain road infrastructure, with a density of 86 meters per thousand square kilometers within these protected zones.

Despite the expanded network, equity gaps persist. Approximately 1.9 million rural residents remain beyond the reach of all-season roads, isolating them from essential services and markets. In urban centers, public transport accessibility is starkly limited, with only 20% of residents in major agglomerations having convenient access.

The transition to green roads in Nepal requires a simultaneous address of decarbonization, climate resilience, and equitable access. While the rapid uptake of electric propulsion in the import market demonstrates strong consumer readiness, the systemic inefficiency of the sector—measured by high emissions intensity and severe health costs—demands rigorous policy intervention. Future investment strategies must prioritize the hardening of infrastructure against extreme precipitation while curbing the encroachment on biodiversity.

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