Nepal has received $9.4 million from the World Bank’s Forest Carbon Partnership Facility for reducing around 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 Emission Reductions Payment Agreement and represents a major step in the country’s efforts to curb deforestation and promote sustainable forest management.
The program is grounded in a community-based approach that brings together local communities, Indigenous Peoples, and civil society groups to protect forests and restore landscapes while improving rural livelihoods. The Terai Arc Landscape, known for both its biodiversity and its large population, has been central to these conservation efforts.
The World Bank highlighted Nepal’s achievements in reducing forest loss, improving governance, strengthening biodiversity conservation, and expanding livelihood opportunities. The payment will be distributed through Nepal’s Benefit Sharing Plan, which was developed through consultations with local communities to ensure fair and direct benefits. These funds will support forest restoration, community enterprises, and climate-resilient livelihoods, reinforcing Nepal’s standing as a leader in community forestry.
Nepal’s government emphasized that the results-based payment reflects the commitment of forest-dependent communities, Indigenous Peoples, and national institutions to conserving and managing forests through inclusive approaches. The country remains dedicated to advancing climate action through community-led initiatives.
The Forest Carbon Partnership Facility is a global initiative that helps countries address deforestation and promote sustainable forest management. By November 2025, FCPF programs worldwide have reported more than 131 million tons of emission reductions, with over 63 million credits issued and 46.5 million paid for, amounting to more than $232 million in results-based payments. These outcomes underscore the FCPF’s focus on transparency, inclusion, and long-term sustainability in global climate efforts.
