The government of Nepal is allowing private hydropower producers to develop projects inside protected areas and their surrounding buffer zones.
This move threatens critical conservation safeguards and ignores a high-court mandate intended to protect the country's biodiversity from industrial encroachment.
The conflict stems from a 2024 amendment [1] to conservation laws that opened protected areas to commercial projects. This legislative change was designed to expand hydropower generation and attract private investment into the sector.
However, the legal standing of these projects was challenged. In January 2025 [2], the Supreme Court issued an order declaring the amendment unconstitutional. The ruling effectively prohibited the development of commercial hydropower projects within these sensitive environmental zones.
Despite the court's decision, the government continues to permit private developers to move forward. By utilizing legal grey areas, officials are facilitating the construction of dams, and power plants in regions meant for preservation.
These protected areas and buffer zones are vital for wildlife and ecosystem stability. The push for energy independence through hydropower now directly clashes with the judicial requirements for environmental protection.
“The government is allowing private hydropower producers to develop projects inside protected areas.”
This situation highlights a systemic tension between Nepal's economic ambitions and its environmental obligations. By bypassing a Supreme Court ruling, the government is prioritizing short-term energy infrastructure and private capital over long-term ecological stability and the rule of law.
