Nepal has received $9.4 million (approximately Rs 1.19 billion) from the World Bank’s Forest Carbon Partnership Facility (FCPF) for successfully reducing about 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 deforestation and forest degradation while promoting inclusive and sustainable forest management, the World Bank said in a press statement.
The FCPF program in Nepal has a strong community-based forestry model and is being implemented across the Terai Arc Landscape — a region known for its rich biodiversity and dense human settlement. The program partners with local communities, Indigenous Peoples, and civil society organizations to restore and protect forests while supporting 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 local communities and key stakeholders. The plan ensures that forest-dependent communities and Indigenous Peoples directly benefit from their conservation efforts.
According to the World Bank, the investments will support:
- Continued forest restoration
- Community forest enterprises
- Climate-resilient livelihood programs
This reinforces Nepal’s global reputation as a pioneer in community forestry and participatory natural resource management.
“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 at the Ministry of Forests and Environment.
