1. UNCTAD Expert Meeting on Environmental Requirements and Trade Romi Manandhar Under Secretary (Technical) Geneve, (2 – 4 October 2002)

2. Introduction  Landlocked country in South Asia  Land area 147,181 sq. km.  Population 23 million growing at 2.38%  Per Capita Income US$ 242  Economic growth rate 5%  Agriculture – 39.2% to GDP – employs over 74%  Industry – 20 % to GDP – manufacturing – 10%  9 th Plan – goal – Globalization of Economy  Accession to WTO – additional opportunities of export – also SAFTA

3. Environmental Performance and Problems  60 different industrial catagory hotspots  6 high priority industry categories – Cement, Leather, Paper & Pulp, Soap & Chemicals, Sugar, Textile  Carpet, Readymade Garment and Leather – 65% contribution to total export  Ban on import of Textile & Leather Goods with Azo dyes – affected export from Nepal  Weak institutional capability for IPCM  Limited ability to enforce QC

4. Environmental Performance and Problems (Contd.)  Formulated 5 Effluent Standards – manadatory  No environmental standards on products & processes  NBSM – National Standard Body – Accreditation  Fairly equipped Lab but lacks capacity for ecological parameter testing  Lack of maintenance – sophisticated equipment  Limited accredited labs – 4 only in capital city

5. Environmental Performance and Problems (Contd.)  Environmental Agency – very new – MOPE (1995)  EPA 1996, EPR 1997, Standards 2001 April  Departments under MOICS – Dual responsibilities  Awareness level – quite low  HRD – lack of practical skills  Lack of Information Center

6. Some achievements  Environmental Labelling for export Industries in Nepal (1999-2002)  FINNIDA assisted  3 components  Awareness creation, Trainings, Ref. Mat., some equipments, capacity build up, 7 certificate awarded  Significant cost savings, improved env. performance  Environmental Sector Programme Support

7. Capacity Building Needs  Environmental Policies – develop, review & improve  Existing Legislation, new Standards, enforcement – International requirements  Awareness materials, guidelines & manuals  Environmental Protection & Conservation Center  More lab facilities and monitoring of performance  Information Center – international trade requirement  Eco-labeling project – extension & new fields  Tourism & Organic Agri-products  HRD

8. Role of UNCTAD  Capacity Building  Special & Differencial Treatment  Information Center  Assist in obtaining technical & financial assistance for capacity building  International Eco-label or EMS certification – very costly – should not be a barrier to trade ABM