Nepal Receives $9.4 Million from World Bank for REDD+ Carbon Reduction Program

Nepal has received $9.4 million (approximately Rs 1.19 billion) from the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing around 1.88 million tons of carbon dioxide under its REDD+ Emission Reductions Program in the Terai Arc Landscape.

This marks the first payment under the FCPF’s Emission Reductions Payment Agreement (ERPA), a significant milestone in Nepal’s efforts to curb emissions from deforestation and forest degradation while promoting inclusive and sustainable forest management, according to a World Bank press release.

The FCPF program in Nepal is noted for its strong community-based approach to sustainable forestry. Implemented across the Terai Arc Landscape, a region rich in biodiversity and home to a dense human population, the program brings together local communities, Indigenous Peoples, and civil society organizations to protect and restore forests while enhancing rural livelihoods.

“This milestone payment is testament, to Nepal’s success in reducing deforestation, strengthening forest governance, enhancing biodiversity conservation, and expanding sustainable livelihood opportunities for local communities,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka.

The payment will be distributed according to Nepal’s Benefit Sharing Plan, developed through a participatory process involving consultations with local communities and key stakeholders. The plan ensures that forest-dependent communities and Indigenous Peoples directly benefit from the outcomes of their efforts.

Investments from the payment will support continued forest restoration, community enterprises, and climate-resilient livelihoods, further reinforcing Nepal’s reputation as a global pioneer in community forestry and participatory resource management, the World Bank stated.

“This results-based payment reflects the efforts and dedication of our forest-dependent communities, Indigenous Peoples, and the government in conserving and managing our forests. Nepal remains committed to advancing climate action through inclusive and community-led forest management,” said Dr. Rajendra Prasad Mishra, Secretary of the Ministry of Forests and Environment.