Kathmandu: Nepal is set to receive Rs 1.06 billion as part of a carbon trading initiative aimed at reducing carbon dioxide emissions through its forests. This funding comes from the REDD Implementation Center under the Ministry of Forest and Environment, recognizing efforts in 13 districts of the Terai region.
The financial support is linked to the storage of 2.4 million tons of carbon from 2018 to 2024, with the Terai Arc landscape program covering areas from the Bagmati River to the Mahakali River. For each ton of carbon dioxide reduced, Nepal will receive $5, with the total expected to be disbursed this October.
Badriraj Dhungana, spokesperson and joint secretary at the Ministry of Forest and Environment, stated that 80 percent of the revenue from carbon trading will be allocated to support local indigenous communities. The government is currently preparing a plan to implement this provision.
Nawaraj Pudasaini, chief of the REDD Implementation Center, reported that an average of 167 tons of carbon has been accumulated per hectare in Nepal’s forests. Since the introduction of the REDD+ Strategy and related policies in 2018, the program has been implemented across 1.7 million hectares in 13 districts, aiming to reduce approximately 34.2 million tons of carbon dioxide emissions by 2028. As of 2023, the first phase of the initiative has successfully reduced 2.3 million tons of carbon emissions.