Nepal receives $9.4m from World Bank FCPF for cutting 1.88m tonnes CO2
KATHMANDU: Nepal has received a payment of $9.4 million from the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing roughly 1.88 million tonnes of carbon dioxide under its REDD+ Emission Reductions Program in the Terai Arc Landscape.
The payment is the first under the FCPF’s Emission Reductions Payment Agreement (ERPA), marking a significant milestone in Nepal’s efforts to curb emissions from deforestation and forest degradation and to promote inclusive, sustainable forest management.
The FCPF programme in Nepal is built on a strong community‑based approach to sustainable forestry. Implemented across the Terai Arc Landscape — an area of high biodiversity and dense human settlement — the programme brings together local communities, Indigenous Peoples and civil society organisations to protect and restore forests while improving rural livelihoods.
“This milestone payment is a testament to Nepal’s success in reducing deforestation, strengthening forest governance, enhancing biodiversity conservation, and expanding sustainable livelihood opportunities for local communities,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka.
The payment will be distributed according to Nepal’s Benefit Sharing Plan, developed through a participatory process that included consultations with local communities and key stakeholders. The plan ensures that forest‑dependent communities and Indigenous Peoples directly benefit from the results of their efforts. Investments will support continued forest restoration, community enterprises and climate‑resilient livelihoods, reinforcing Nepal’s reputation as a pioneer of 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 at the Ministry of Forests and Environment.
The FCPF is a global partnership that brings together governments, civil society, Indigenous Peoples and the private sector to help countries reduce emissions from deforestation and forest degradation and to strengthen sustainable forest management. As of November 2025, FCPF programmes 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 $232 million in results‑based payments. These figures reflect the FCPF’s emphasis on transparency, inclusion and sustainability in supporting countries to tackle deforestation and climate change.
