As the transport sector is a significant and most rapidly growing net CO2 emitter in Nepal, this is an important sector that needs to be addressed to lower Nepal?s contribution to Global Warming gases. GEF supported previous Electro Bus Project is a milestone in transferring second-generation technology and skills to the electric vehicle industry in Nepal. This project introduced the benefits of using ac drive system, on-board charging, regenerative braking, four-wheel electric vehicles. The electric vehicle industry only depended on dc drive technology and GRI prototyped Safa Tempo before this project. With the help of the technology and skills transferred through this project, a number of second generation electric vehicles like four-wheel Hulas Mini EV, four Tourism Tempos, converted Mitsubishi electric van have been manufactured locally with the involvement of private sector. This project aims to reduce transport sector?s contribution to CO2 emissions by diversifying the use and the number of electric vehicles. This project will work to expand markets for electric vehicles using the new technology that was transferred through the previous GEF support by making policies favorable for conversion, developing innovating financing mechanism, building partnerships in new markets, demonstrating and piloting successful operations in the new markets.