Nepal Earns $9.4m for Cutting Emissions Under World Bank REDD+ Programme

Nepal’s progress under the FCPF aligns with global efforts to reduce emissions from land use while supporting sustainable development.

Nepal has secured a landmark $9.4 million results-based payment from the World Bank’s Forest Carbon Partnership Facility (FCPF) for successfully reducing an estimated 1.88 million tons of carbon dioxide through its REDD+ Emission Reductions Program in the Terai Arc Landscape. The payment marks Nepal’s first disbursement under the Emission Reductions Payment Agreement (ERPA) and represents a major achievement in the country’s long-standing commitment to forest conservation and community-led climate action.

The milestone underscores Nepal’s growing leadership in sustainable forest governance and its successful approach to reducing emissions caused by deforestation and forest degradation — two major contributors to global climate change.

A Major Achievement in Nepal’s Climate and Forestry Efforts

The Terai Arc Landscape, which spans the southern plains of Nepal, is one of the world's most biodiverse ecosystems and a critical zone for tigers, elephants, rhinos, and other endangered species. It is also home to millions of people whose livelihoods depend directly on forest resources. Managing conservation and human needs in this region has been a longstanding challenge — one that Nepal has tackled through innovative community-led forest management.

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

Community Forestry at the Heart of the Program

Nepal’s REDD+ program is internationally recognised for its community-based approach, which has been central to achieving emission reductions. More than 22,000 Community Forest User Groups (CFUGs) across the country already manage large areas of forest, operating under a model that has been praised globally for combining conservation with social inclusion.

Under the FCPF program, Nepal engaged:

• Local communities and forest user groups

• Indigenous Peoples and marginalized populations

• Civil society organisations

• Local and provincial governments

This inclusive model ensures that forests are protected not through enforcement alone but through ownership, participation, and shared benefits. By empowering communities, Nepal has improved forest monitoring, expanded reforestation initiatives, strengthened biodiversity protection, and improved forest governance structures.

Transparent and Inclusive Benefit Sharing

The $9.4 million payment will be distributed according to Nepal’s Benefit Sharing Plan, an equitable, participatory framework created through extensive consultation with communities and stakeholders. The plan ensures that those who contribute the most to forest protection — including Indigenous Peoples, women’s groups, forest cooperatives, and community enterprises — receive direct financial benefits.

Funds will be allocated toward:

• Forest restoration and sustainable forest management

• Community-run green enterprises

• Climate-resilient livelihood projects

• Strengthening local governance and monitoring systems

• Protecting wildlife and biodiversity

The plan is seen as a model for fair and locally driven climate finance distribution.

Advancing Climate Action and Local Development

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

The payment is expected to catalyse further investments in the forestry sector, support rural economic development, and strengthen Nepal’s resilience to climate change. It also positions the country as a leading example of how local stewardship and global climate finance can work together to deliver measurable carbon reductions, biodiversity gains, and community benefits.

A Model for Global Climate Finance

Nepal’s progress under the FCPF aligns with global efforts to reduce emissions from land use while supporting sustainable development. Many countries look to Nepal’s long-standing community forestry model as evidence that empowering local people can deliver large-scale environmental results.

As climate change accelerates, forests remain one of the most effective carbon sinks available. Nepal’s success demonstrates that with community engagement, strong governance, and targeted climate finance, even resource-limited countries can make significant contributions to global emissions reductions.