Sustainability agenda has been gaining extensive concentration as one of the major development paradigm in modern era. Rapid economic growth, social development, sustainability and poverty reduction have been considered as crucial discourse under that paradigm. With the world-wide wave of economic development and improved traditional living standard of people, consumption of fuel has also increased significantly. Exponential growth in use of fossil fuel and its impacts compelled to search for alternative energy sources. Green energy is that source of energy that is naturally restocked. Nepal is rich enough country for renewable energy sources even though, could not accelerate growth and development agenda. Appropriate policy, planning, and management of green energy would help to give a big push to break development hazards and would contribute for takeoff for sustainable development and poverty reduction strategies. This paper attempts how green energy policy, planning and management would contribute for gearing up for sustainable development and poverty reduction in Nepal. It is an endeavor to scrutinize and understand the green energy utilization, proper management and exploring the capacity of the Nepalese economy. Findings of the study conclude that, instead of fossil energy, renewable energy utilization contributes for transferring poor livelihood and its sustainability.