Nepal has received $9.4 million from the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing approximately 1.88 million tons of carbon dioxide under its REDD+ Emission Reductions Program in the Terai Arc Landscape.
This marks the first payment under FCPF’s Emission Reductions Payment Agreement (ERPA), representing a significant milestone in Nepal’s efforts to curb emissions from deforestation and forest degradation while promoting inclusive and sustainable forest management.
The program emphasizes a strong community-based approach, engaging local communities, Indigenous Peoples, and civil society organizations across the Terai Arc Landscape—a region notable for its rich biodiversity and dense human population. Participants work together to protect and restore forests while improving rural livelihoods.
David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka, said, “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.”
The $9.4 million 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 the results of their conservation efforts. Investments will support ongoing forest restoration, community enterprises, and climate-resilient livelihoods, reinforcing Nepal’s global reputation as a pioneer in community forestry and participatory resource management.
Dr. Rajendra Prasad Mishra, Secretary of the Ministry of Forests and Environment, added, “This results-based payment reflects the 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.”
The FCPF is a global partnership that helps countries reduce emissions from deforestation and forest degradation while strengthening sustainable forest management. As of November 2025, FCPF programs have reported over 131 million tCO₂e in emission reductions, with 63.7 million carbon credits issued and 46.5 million paid for—totaling more than US$232 million in results-based payments, reflecting transparency, inclusivity, and sustainability in climate action.
