Nepal to receive 1.06 billion rupees from carbon trade

KATHMANDU, OCTOBER 6: Nepal is set to receive 1.06 billion rupees through carbon trading to reduce carbon dioxide emissions via its forests in 13 districts of the Tarai region, according to the REDD Implementation Center under the Ministry of Forest and Environment.

The funding is compensation for storing 2.4 million tons of carbon from 2018 to 2024 as part of the Tarai Arc Landscape Program, which spans districts from the Bagmati River to the Mahakali River. Nepal will receive $5 for every ton of carbon dioxide emissions reduced, amounting to 1.06 billion rupees, which is expected to be disbursed within October.

According to Badriraj Dhungana, the spokesperson and Joint Secretary at the Ministry of Forest and Environment, 80% of the revenue generated from carbon trading is mandated to benefit local indigenous and forest-dependent communities. The government has outlined a plan to ensure proper implementation of these funds.

Nawaraj Pudasaini, Chief of the REDD (Reducing Emissions from Deforestation and Forest Degradation) Implementation Centre, reported that an average of 167 tons of carbon has been sequestered per hectare in Nepal’s forest areas.

Since 2018, Nepal has been implementing its REDD+ Strategy and other related policies and regulations to facilitate carbon trading. The program currently covers 1.7 million hectares across the 13 districts, with a target to reduce 34.2 million tons of carbon dioxide emissions by 2028. In the first phase, measurements taken in 2023 show a reduction of 2.3 million tons of carbon dioxide emissions.