Kathmandu - Nepal has taken a significant step toward participating in the global carbon market by developing and operationalizing its National Carbon Registry, a foundational system required for implementing Article 6 of the United Nations Framework Convention on Climate Change (UNFCCC).
The registry has been established through a strategic partnership between the Ministry of Forests and Environment (MoFE) and UNDP Nepal, aiming to ensure transparency, environmental integrity, and accountability in carbon trading mechanisms. Officials say the system will enable Nepal to track, authorize, and report carbon mitigation outcomes in line with international standards.
Article 6 of the Paris Agreement allows countries to cooperate voluntarily in achieving their climate targets, including through international carbon markets. However, effective participation requires strong governance systems to prevent double counting, ensure traceability of emissions reductions, and maintain trust among international partners. Nepal’s National Carbon Registry is designed to address these requirements.
According to the Ministry, the registry introduces digital infrastructure and governance frameworks that will help manage carbon credits generated from sectors such as forestry, renewable energy, and other climate-mitigation initiatives. This is expected to strengthen Nepal’s institutional capacity to engage with bilateral and multilateral carbon market mechanisms.
UNDP Nepal has emphasized that the registry will also help unlock climate finance opportunities, allowing Nepal to attract international investment while ensuring that benefits reach local communities and ecosystems. Properly managed carbon revenues could support sustainable development, conservation efforts, and climate-resilient livelihoods, particularly in forest-dependent and climate-vulnerable regions.
Environmental experts note that transparency will be key to the success of Nepal’s carbon market engagement. The registry aims to provide clear records of carbon transactions, authorization processes, and reporting obligations, thereby building confidence among international buyers and partner countries.
With this development, Nepal is positioning itself as a credible and transparent participant in emerging international carbon markets under Article 6. While challenges remain in project implementation, benefit-sharing, and long-term governance, the establishment of the National Carbon Registry marks an important institutional milestone in Nepal’s climate action journey.
As global interest in high-integrity carbon markets grows, Nepal’s move signals its intention to engage responsibly-balancing climate ambition, environmental protection, and sustainable economic opportunities.
