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Climate Change, Natural Resource and Disaster Risk Management

Enhancing Sustainability and Profitability of the Carpet and Pashmina Industries in the Kathmandu Valley

January 15, 2014 – July 14, 2017
European Commission
Central(Kathmandu,Lalitpur & Bhaktapur Districts)
Carpet and Pashmina Industries
Implementing Partner:
Society for Environmental and Economic Development - Nepal (SEED - Nepal)

Mercy Corps Nepal is implementing a European Commission funded SWITCH project working with the carpet and pashmina industries in the Kathmandu Valley to further enhance sustainable production and profitability in two of Nepal’s highest export earning industries – the carpet and pashmina industries. The project will contribute to increasing resource efficiency, profitability, and sustainable growth in Nepal by mobilizing the private sector and relevant public sector authorities to reduce fuel and water use, and water and air-borne pollution.

The Challenges

Carpet and Pashmina production are Nepal’s second and  third  largest  sources  of   export  earnings  and provide one of  the highest number of  industrial employment.  However,  most  of  these  industries  are constrained by outdated production methods that lead to reduced competitiveness and adverse environmental impacts.

These sectors consist of fragmented networks of Small and Medium Enterprises (SMEs) that rely on inefficient and environmentally damaging production practices. This has limited the ability of both the industries to respond to increased regional competition and demand for environmentally friendly products for export markets.

Carpet CollectionCarpet Collection
Pashmina collectionPashmina Collection

The Approach

To  address  the  challenge,  Mercy  Corps  Nepal  is working  to  improve  the  efficiency  and  reduce pollution  from  small  and  medium-sized  dyeing  and washing enterprises that serve the carpet and pashmina industries. By supporting the adoption of  energy and water efficient technologies and processes, the action aims to decrease production costs for the most resource intensive section of  the production chain, promoting growth and increasing competitiveness of  the carpet and pashmina industries in the export market. At the same time, the action will decrease reliance on natural resources by decreasing energy and water usage, and reducing chemical pollutants. This will help reduce pressure from the unsustainable use of natural resources and reduce air and water pollution. In addition, the action will reduce CO2 emissions and improve the working conditions for employees of washing and dyeing SMEs. The action will strengthen existing actors, such as the industry associations, so that they can provide resources and expertise on cleaner production to their members, along with clean production service providers and relevant government entities that will help create the right enabling environment to facilitate the switch to cleaner, more efficient and sustainable production.

Flue gas emission from a dyeing industryFlue gas emission from a dyeing industry
A disorganised dyeing unit

Partner and Associates

Society for Environmental and Economic Development - Nepal (SEED - Nepal), a national NGO, is the implementing partner for the action that assists industries and authorities in managing environmental problems through skills enhancing trainings,  awareness  campaigns  and  technology transfer. The action will work closely with a number of associate partners including the Central Carpet Industries Association (CCIA), Nepal Wool Dyeing Industries Association (NWDIA)  and Nepal Pashmina Industries Association (NPIA) with the aim of enhancing their knowledge on appropriate technologies and cleaner production techniques by leveraging their networks and outreach capacity to involve their members. Working collaboratively with each association will enable increased effectiveness of outreach and messaging. The action will also work with local financial institutions to develop appropriate financial products & mechanisms to improve access to finance for the SMEs.

For more information :

  Implementing Partner:
Sanjay Karki Amar B. Manandhar
Country Director Executive Director
skarki@np.mercycorps.org  Society for Environmental and Economic Development - Nepal
Mercy Corps Nepal (SEED - Nepal)
P. O. Box 24374 P. O. Box 8793 NPC 410
Sanepa Chowk, Lalitpur, Nepal 39 Siddhartha Margh, Anamnagar, Kathmandu, Nepal.
Tel: +977-1-5555.532 Tel: +977-1-4228555
Fax: +977-1-5554.370 Fax: +977-1-4239338
E-mail: info@np.mercycorps.org Email:  amar@seednepal.org
http://nepal.mercycorps.org www.seednepal.org
Surendra Chaudhary  
Programme Manager