Nepal to Receive Rs 1.06 Billion from Carbon Trading for Terai Forest Conservation Efforts

Nepal is set to receive Rs 1.06 billion in carbon trading revenue for reducing carbon dioxide emissions through forest conservation in 13 districts of the Terai region, as confirmed by the REDD Implementation Center under the Ministry of Forest and Environment. This payment is a result of storing 2.4 million tons of carbon from 2018 to 2024, as part of the Terai Arc Landscape program, which stretches from the Bagmati River to the Mahakali River.

Nepal will receive $5 for each tonne of carbon dioxide reduced, totaling Rs 1.06 billion to be received by October. Badriraj Dhungana, spokesperson and joint secretary at the Ministry, explained that 80 percent of the funds from carbon trading will be allocated to local indigenous and other beneficiary communities. The government has developed a plan to ensure the effective use of these funds at the community level.

Nawaraj Pudasaini, Chief of the REDD Implementation Center, reported that an average of 167 tonnes of carbon has been stored per hectare in Nepal’s forested areas. Since 2018, the REDD+ Strategy and other policies have been actively implemented to support carbon trading.

The REDD program covers 1.7 million hectares across 13 districts, with the goal of reducing 34.2 million tons of carbon dioxide emissions by 2028. In the first phase, a reduction of 2.3 million tons was achieved, as measured in 2023, according to Pudasaini.