Kathmandu: Nepal has received a payment of $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 the FCPF’s Emission Reductions Payment Agreement (ERPA), representing a significant milestone in Nepal’s efforts to combat emissions from deforestation and forest degradation while promoting sustainable forest management.
According to World Bank, the FCPF program in Nepal is characterized by its strong community-based approach to sustainable forestry. Implemented across the Terai Arc Landscape, a region known for its biodiversity and dense human population, the program unites local communities, Indigenous Peoples, and civil society organizations in efforts to protect and restore forests while improving rural livelihoods.
“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,” stated David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka.
The payment will be distributed in alignment with Nepal’s Benefit Sharing Plan, which was developed through a participatory process involving consultations with local communities and key stakeholders. The plan ensures that forest-dependent communities and Indigenous Peoples benefit directly from their conservation efforts. Investments will support ongoing forest restoration, community enterprises, and climate-resilient livelihoods, reinforcing Nepal’s global reputation as a leader in community forestry and participatory resource management.
“This results-based payment reflects the efforts and 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,” said Dr. Rajendra Prasad Mishra, Secretary of the Ministry of Forests and Environment.
The FCPF is a global partnership that engages governments, civil society, Indigenous Peoples, and the private sector to assist countries in reducing emissions from deforestation and forest degradation while strengthening sustainable forest management. As of November 2025, FCPF programs have reported more than 131 million tCO2e in emission reductions, with 63.7 million credits issued and 46.5 million paid for, amounting to over US$232 million in results-based payments. These achievements underscore the FCPF’s commitment to transparency, inclusion, and sustainability in supporting countries to address deforestation and climate change.