Government Unveils Rs 12.31 Billion Budget for Forestry, Environment and Climate Sector, Emphasises Green Growth and Climate Finance

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Government Unveils Rs 12.31 Billion Budget for Forestry, Environment and Climate Sector, Emphasises Green Growth and Climate Finance

Government Unveils Rs 12.31 Billion Budget for Forestry, Environment and Climate Sector, Emphasises Green Growth and Climate Finance

Ganesh Khatiwada 2026-06-02 09:33:00

Kathmandu, Nepal - The Government of Nepal has allocated Rs 12.31 billion for the forestry, environment and climate sector in the fiscal year 2083/84 (2026/27), signalling a renewed focus on climate resilience, natural resource conservation and green economic development. The allocation was announced by Finance Minister Dr. Swarnim Wagle while presenting the national budget in the Federal Parliament.
According to the budget, the government plans to maximize the utilization of available climate funds and issue green energy bonds and diaspora bonds to mobilize resources for environmentally sustainable development. A notable policy announcement is the government's commitment to facilitate private-sector access to concessional financing from international climate funds, potentially opening new opportunities for investment in renewable energy, sustainable industries and climate-resilient infrastructure.
The budget has allocated approximately Rs 1 billion for activities aimed at sustaining the water cycle in the environmentally sensitive Chure and Tarai-Madhesh regions. Planned interventions include water source conservation, pond construction, landslide mitigation and river embankment works, reflecting concerns over increasing environmental degradation and water insecurity in these regions.
In a move aimed at strengthening forest-based livelihoods, the government has announced plans to establish support prices for medicinal herbs and non-timber forest products and begin their procurement. A herbal processing centre will also be established in Karnali Province to promote value addition and create economic opportunities in rural areas.
The budget further prioritises the implementation of a results-based REDD+ programme, under which local communities will receive priority in sharing benefits generated through carbon emission reduction initiatives. The programme is expected to encourage community-led forest conservation while contributing to Nepal’s climate commitments.
To strengthen environmental management, the government has also announced plans to utilize drones and satellite technologies for real-time forest fire monitoring and control. Additionally, programmes promoting human-wildlife coexistence in high-risk areas and upgrades to air pollution monitoring stations and central environmental laboratories in major cities have been included in the budget.
The budget reflects a broader policy shift towards integrating environmental conservation with economic growth. The government has stated that forests and natural resources will be developed not only as conservation assets but also as foundations for green industrialisation, employment generation and import substitution, aligning environmental protection with national development priorities.
Environmental experts, however, note that the effectiveness of the allocation will depend on implementation, particularly in addressing Nepal’s growing climate vulnerabilities, including floods, landslides, droughts and the impacts of glacier melt. As one of the countries most vulnerable to climate change despite contributing minimally to global emissions, Nepal faces increasing pressure to translate climate commitments into measurable action on the ground.
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Published Date 2026-06-02 09:33:00