Nepal has received $9.4 million from the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing around 1.88 million tons of carbon dioxide emissions under its REDD+ Emission Reductions Program in the Terai Arc Landscape. This payment marks the first disbursement under the FCPF’s Emission Reductions Payment Agreement (ERPA), representing a significant step in Nepal’s efforts to lower emissions from deforestation and forest degradation while supporting sustainable forest management.
The program in Nepal uses a community-based approach, engaging local communities, Indigenous Peoples, and civil society organizations across the Terai Arc Landscape—a region known for both its biodiversity and high population density. The initiative aims to protect and restore forests while also improving livelihoods in rural areas.
“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,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka.
The funds will be distributed according to Nepal’s Benefit Sharing Plan. Developed through consultations with local communities and stakeholders, this plan ensures that forest-dependent groups and Indigenous Peoples benefit directly from their conservation work. Investments will go toward further forest restoration, community enterprises, and climate-resilient livelihoods.
“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 Ministry of Forests and Environment.
The FCPF is a global partnership involving governments, civil society, Indigenous Peoples, and the private sector to help countries reduce emissions from deforestation while promoting sustainable forestry practices. As of November 2025, FCPF programs have reported over 131 million tons of emission reductions globally. More than 63 million credits have been issued under these programs with over $232 million paid out as results-based payments.