A new report by the ICIMOD warns that as demand for energy surges, regional cooperation will be crucial to meeting development and climate goals.

The Hindu Kush Himalaya (HKH) region, spanning Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal and Pakistan, is home to over 3.3 billion people — nearly 42 per cent of the world’s population. Despite notable economic growth, the region faces stark development challenges: 260 million people live in extreme poverty, 591 million experience multidimensional poverty, and more than 47 million still lack access to electricity .

A new report by the International Centre for Integrated Mountain Development (ICIMOD) warns that as demand for energy surges, regional cooperation will be crucial to meeting development and climate goals. The study underscores the immense potential of renewable energy in the HKH while also flagging the pressing risks of climate change, environmental degradation, and policy fragmentation .

Rich in Resources but Poor in Access

The HKH is endowed with abundant hydropower, solar, and wind resources. An estimated 635 gigawatts of hydropower and nearly 3,000 gigawatts of solar and wind potential remain largely untapped . Bhutan and Nepal already generate all their electricity from renewables, while China and India are scaling up solar and wind capacity at pace. Yet the regional share of clean renewable energy in total primary energy supply is only 6.1 per cent, with coal, gas and biofuels still dominant in most countries .

The uneven distribution of energy resources, combined with dependence on fossil fuel imports, has left several countries vulnerable. Bangladesh and Pakistan, for instance, suffer frequent blackouts lasting up to 10 hours a day, with soaring electricity generation costs worsening economic strain .

Climate and Non-Climate Threats

The report highlights how climate change directly threatens the energy sector. Hydropower projects face growing risks from glacial lake outburst floods, changing stream flows, and extreme weather events . Beyond climatic challenges, the sector is beset by financial, social and political obstacles: high capital costs, weak regulatory frameworks, lack of investment in research and development, and geopolitical tensions that delay cross-border projects .

Distribution companies, especially in India, are reluctant to procure renewable power due to technical and financial constraints, further hindering integration into national grids . Meanwhile, subsidies for fossil fuels — amounting to tens of billions of dollars annually in countries such as China and India — continue to distort energy markets .

The Case for Regional Cooperation

Despite these hurdles, the report makes a strong case for regional collaboration. It stresses that bilateral arrangements, while useful, are no longer sufficient. To truly harness renewable potential, countries must move towards multilateral cooperation that transcends borders .

“Energy is a complex and cross-cutting sector and needs a holistic, multidimensional approach for regional cooperation,” the report notes. This includes not just trading hydropower but also sharing technologies for solar and wind, integrating disaster risk reduction, and promoting green growth strategies .

A prime example lies in the Koshi River Basin. Hydropower projects there could generate 10,000 MW of electricity while also irrigating vast tracts of land in Nepal and India, potentially benefiting millions of farmers and boosting food security . Similarly, joint water and energy management in the Indus Basin could deliver billions in economic gains across Pakistan, Afghanistan and India.

Shared Gains, Shared Responsibilities

Regional cooperation promises multiple dividends: enhanced energy security, reduced reliance on fossil fuel imports, mitigation of climate risks, and socio-economic benefits such as poverty reduction, job creation, and improved gender equity. Multipurpose reservoirs and so-called “dam equivalents” — alternative solutions that mimic large dams without their downsides — can help regulate floods, store water, and generate power .

But the report cautions that these benefits will only materialise if local communities are included. Renewable projects can cause displacement and ecological harm if not managed responsibly. Ensuring equitable access, especially for underprivileged groups in mountain areas still reliant on biomass, is critical for both social empowerment and environmental justice .

Policy Messages and the Road Ahead

The study issues several urgent policy messages:

• Increase renewable energy share: HKH countries must rapidly expand clean energy to cut greenhouse gas emissions and reduce vulnerability to global fuel price shocks .
• Shift from bilateral to regional frameworks: Multilateral cooperation is vital for optimising energy trade, technology exchange, and disaster resilience .
• Adopt a holistic approach: Cooperation should extend beyond hydropower to include solar, wind, and integrated water-energy-agriculture strategies.
• Invest in governance and regulation: Harmonising policies, building institutional capacity, and incentivising utilities to integrate renewables are essential .
• Empower local communities: Ensuring fair distribution of benefits and access to clean energy for marginalised groups will strengthen social support .

With net-zero targets ranging from 2045 to 2070 across the region, the report concludes that collective action is indispensable. “Without regional cooperation, it will be difficult for countries to meet the growing demand for energy, particularly renewable energy, for increasing population and economic growth” .

The HKH stands at a crossroads: abundant in natural resources yet constrained by political, economic and climatic challenges. Regional renewable energy cooperation offers a path to not only address the energy trilemma — security, equity and sustainability — but also to lift millions out of poverty and build resilience against climate change.

The message from ICIMOD is clear: together, the HKH countries have more power.