Advancing forest-based carbon trading in Nepal: Policy challenges and agroforestry opportunities

Nepal remains among the countries most vulnerable to climate-related disasters. Although several national policy documents have emphasized the urgency of mitigation and adaptation, climate action remains fragmented and significantly underfunded. Nepal’s unique geography—spanning the Himalayas, mid-h...

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Autores principales: Chaudhary, Arbind, Babu, Suresh Chandra
Formato: Brief
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2025
Materias:
Acceso en línea:https://hdl.handle.net/10568/175795
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author Chaudhary, Arbind
Babu, Suresh Chandra
author_browse Babu, Suresh Chandra
Chaudhary, Arbind
author_facet Chaudhary, Arbind
Babu, Suresh Chandra
author_sort Chaudhary, Arbind
collection Repository of Agricultural Research Outputs (CGSpace)
description Nepal remains among the countries most vulnerable to climate-related disasters. Although several national policy documents have emphasized the urgency of mitigation and adaptation, climate action remains fragmented and significantly underfunded. Nepal’s unique geography—spanning the Himalayas, mid-hills, and Tarai plains—together with recent decentralization reforms offers a favorable context for implementing localized, context-specific solutions to climate threats. However, the lack of consistent policy frameworks, weak institutional mechanisms, limited investment, and fragmented governance across all levels of government continue to impede progress. In this policy note, we use carbon trading in the forestry sector as a case study to illustrate broader policy challenges and opportunities in Nepal and other Global South countries. Trading is a market-based mechanism that incentivizes the offset of greenhouse gas (GHG) emissions through credits for CO2 sequestration.. Nepal has adopted this approach in line with international agreements such as the Kyoto Protocol and the Paris Agreement. As one of the major strategies, the country has sought to capitalize on its forest resources to generate carbon credits and attract international climate finance.
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spelling CGSpace1757952025-11-06T04:21:08Z Advancing forest-based carbon trading in Nepal: Policy challenges and agroforestry opportunities Chaudhary, Arbind Babu, Suresh Chandra carbon forestry policy innovation trade forest sector carbon sequestration Nepal remains among the countries most vulnerable to climate-related disasters. Although several national policy documents have emphasized the urgency of mitigation and adaptation, climate action remains fragmented and significantly underfunded. Nepal’s unique geography—spanning the Himalayas, mid-hills, and Tarai plains—together with recent decentralization reforms offers a favorable context for implementing localized, context-specific solutions to climate threats. However, the lack of consistent policy frameworks, weak institutional mechanisms, limited investment, and fragmented governance across all levels of government continue to impede progress. In this policy note, we use carbon trading in the forestry sector as a case study to illustrate broader policy challenges and opportunities in Nepal and other Global South countries. Trading is a market-based mechanism that incentivizes the offset of greenhouse gas (GHG) emissions through credits for CO2 sequestration.. Nepal has adopted this approach in line with international agreements such as the Kyoto Protocol and the Paris Agreement. As one of the major strategies, the country has sought to capitalize on its forest resources to generate carbon credits and attract international climate finance. 2025-07-24 2025-07-24T20:23:19Z 2025-07-24T20:23:19Z Brief https://hdl.handle.net/10568/175795 en Open Access application/pdf International Food Policy Research Institute Chaudhary, Arbind; and Babu, Suresh Chandra. 2025. Advancing forest-based carbon trading in Nepal: Policy challenges and agroforestry opportunities. Policy Note July 2025. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/175795
spellingShingle carbon
forestry
policy innovation
trade
forest sector
carbon sequestration
Chaudhary, Arbind
Babu, Suresh Chandra
Advancing forest-based carbon trading in Nepal: Policy challenges and agroforestry opportunities
title Advancing forest-based carbon trading in Nepal: Policy challenges and agroforestry opportunities
title_full Advancing forest-based carbon trading in Nepal: Policy challenges and agroforestry opportunities
title_fullStr Advancing forest-based carbon trading in Nepal: Policy challenges and agroforestry opportunities
title_full_unstemmed Advancing forest-based carbon trading in Nepal: Policy challenges and agroforestry opportunities
title_short Advancing forest-based carbon trading in Nepal: Policy challenges and agroforestry opportunities
title_sort advancing forest based carbon trading in nepal policy challenges and agroforestry opportunities
topic carbon
forestry
policy innovation
trade
forest sector
carbon sequestration
url https://hdl.handle.net/10568/175795
work_keys_str_mv AT chaudharyarbind advancingforestbasedcarbontradinginnepalpolicychallengesandagroforestryopportunities
AT babusureshchandra advancingforestbasedcarbontradinginnepalpolicychallengesandagroforestryopportunities