Kathmandu, November 22, 2025
Nepal has secured its first results-based climate finance payment under the global REDD+ mechanism, receiving US$9.4 million for measurable reductions in greenhouse gas emissions from deforestation and forest degradation in the Terai Arc Landscape.
The payment marks a milestone in Nepal’s journey toward climate-aligned forest governance, rewarding verified reductions of carbon emissions and reinforcing the country’s leadership in community-based forest management.
Funds to Empower Local Communities and Forest Restoration
According to officials, a major share of the funds will be invested directly in the Terai Arc Landscape, where community forest groups and Indigenous communities play a critical role in restoring and managing forests. The initiative aims to support:
sustainable forest restoration
community-based forest enterprises
biodiversity protection
livelihood enhancement for forest-dependent households
A Benefit Sharing Plan ensures that proceeds are distributed fairly among communities contributing to conservation efforts.
A Partnership Over a Decade in the Making
Nepal’s REDD+ journey formally began in 2008, when the Government of Nepal partnered with WWF and other organizations to build a national framework for reducing forest-based emissions. The collaboration led to the development of the Emission Reduction Program Document (ERPD) for the Terai Arc, approved in 2018, paving the way for up to US$45 million in performance-based payments.
This first tranche validates years of institutional reform, data collection, and community-driven conservation efforts.
What REDD+ Represents
REDD+ is a global climate mechanism that rewards countries for:
reducing emissions from deforestation and forest degradation
sustainable forest management
enhancing carbon stocks
conservation of biodiversity and ecosystems
For Nepal, it provides not only financial incentives but also international recognition of its conservation model rooted in grassroots participation.
More Than Climate Finance: A Development Pathway
Beyond emissions reductions, the initiative is expected to:
strengthen climate-resilient local economies
reduce pressure on forests through alternative livelihoods
support biodiversity corridors critical to species such as tigers, rhinos, and elephants
reinforce Nepal’s climate commitments under the Paris Agreement
This milestone places Nepal among the few nations successfully converting forest-based climate action into certified financial returns.
Looking Ahead
With future installments dependent on continued emissions reductions and transparent reporting, Nepal now faces the task of scaling its forest governance model and maintaining rigorous monitoring systems. Expanding REDD+ beyond the Terai Arc could further mobilize climate finance while safeguarding Nepal’s diverse forest ecosystems.
Conclusion
Nepal’s first REDD+ payment is more than a financial transaction-it is a global acknowledgment of community stewardship, policy consistency, and decades of collaborative conservation. The achievement sets a precedent for climate finance models that uplift local communities while protecting critical ecosystems for generations to come.
