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Nepal aims at ending basic load shedding by 2018, and achieving energy independence by 2019. By 2050, Nepal aims to achieve 80% electrification through renewable energy sources having an appropriate energy mix, and reduce its dependency on fossil fuels by 50%.

Table 4.11 Investment incentives, 2018
Incentive category Ordinary provision Incentive provision
Income Tax Normal tax rate: 25%
(...) Tax holiday
- Licensed person or entity producing electricity through hydro, solar, wind or bio fuel, starting its commercial production, transmission or distribution before 12 April 2024: 100% exemption for the first 7 years and 50% exemption for next 3 years (...)
(...)
Value added tax - 0% VAT facility based on a recommendation from the AEPC for batteries produced and supplied by Nepalese industries for use in solar energy-producing industries
- VAT exemption on the import of machinery, equipment, tools and their spare parts, penstock pipes or iron sheets used in hydropower projects and not produced in Nepal (based on the recommendation of the AEPC or the DoED)
- VAT exemption for equipment and machines, tubular batteries, and solar lead batteries, required by bio-gas, solar, and wind energy industries
Custom duty rate Various
(...) - Duty on alternative energy-based industries: 1%
- Windmills and related parts imported by wind energy based industries
- Solar panels, modules, tubular batteries and solar pumps imported by solar industries
- Bio-stoves imported by bio industries
- Import of mills, machinery, equipment and spare parts thereof and chemicals for the purpose of producing organic fuel
- Appliances and equipment such as main gas valves, valves used in biogas, fitting, elbow, gas pipes, gas gauges, biogas (dung gas) lamps, gas taps (brass), gas stoves, and parts thereof, reduction elbows and rubber hose pipe necessary for dung gas, including bio gas

Table A4.1 Fiscal concessions for different industries
Fiscal concessions for different industries
A. Income tax concessions
Industry Concessions
(…)
Individuals or entities obtaining approval to commercially generate transmit or distribute Hydroelectricity by
mid-April 2024 100% income tax exemption for first 10 years
50% income tax exemption for next five years
Such exemption is entitled to solar, wind and bio mass energy as well
In case of industries that have already begun commercial production at the time of commencement of this Act, the exemptions applicable at the time of receiving approval would be applicable
(...)
All industries (...) Expenses made for equipment & technology used to reduce or control the pollution or re processing or reuse of wastages can be deducted up to 50% of the adjusted taxable income of the same fiscal year
(...)
Note: Industries based on tobacco, liquor and kachha or kattha are not entitled to any of the exemptions or facilities listed above. However, such industries may deduct actual expenses incurred in business promotion activities including long-term welfare and benefit of employees or workers, in reducing or controlling pollution, re-processing of waste materials, in technologies and devices used reducing environment effects, in machine or equipment used for reducing power consumption, research and development expenses. In case an industry qualifies for more than one exemption in respect to similar income from among those listed above, the industry is only entitled to one exemption. Such industry is entitled to select the applicable exemption.

(…) Trade policy is an integral part of the Government's policy to promote sustainable growth, domestically and globally. (…)

The Government's trade and economic policy is designed to promote sustainable development in economic, social and environmental terms. (…)

The world is facing climate challenges that require transition into a more sustainable, low emission society. "Thinking greener" implies that many of tomorrow's low-emissions solutions will come from or through cooperation with industry. In order to limit global warming in line with the goals of the Paris Agreement, there will be a continuous need to develop new production methods. This creates opportunities for competent and innovative Norwegian businesses.

In a white paper to the Storting (Parliament) the Government has presented its strategy on how to reach our commitments to the climate goals after the Paris agreement. In cooperation with the EU, the 2030-goal for non-quota emissions will be reached mainly through reductions in national emissions and necessary use of the EU-regulations' flexibility mechanisms.

The decreased activity in the offshore petroleum sector over the last few years has contributed to a restructuring of the Norwegian ocean industries – maritime, oil and gas, fisheries and aquaculture – the so-called blue economy. Businesses are increasingly applying industry expertise and technology across the traditional sectoral divides. This is particularly evident in the emerging offshore aquaculture, offshore wind and marine biotechnology segments.

The shift towards a more integrated blue economy is accompanied by a need to ensure sustainable use of the oceans. In 2017, the Government issued a coherent ocean strategy where sustainable development of the ocean is a key priority. The strategy highlights policies for how restructuring of the ocean industries can contribute to economic growth in new areas and at the same time contribute to Norway's international commitments on environment and combatting climate change.

In general, Norway has an open investment regime for foreign investors, apart from some restrictions in certain sectors, notably the exploitation of natural resources such as petroleum and gas, farmland and forests, and power supply rights. (…)