First results-based payment rewards 1.88 million tons of CO₂ reductions in the Terai Arc Landscape
KATHMANDU, NOVEMBER 16
Nepal has received USD 9.4 million from the World Bank's Forest Carbon Partnership Facility (FCPF) after successfully reducing around 1.88 million tons of carbon dioxide under the REDD+ Emission Reductions Program in the Terai Arc Landscape.
This marks Nepal's first-ever payment under the Emission Reductions Payment Agreement (ERPA), a milestone in the country's efforts to curb deforestation, strengthen forest governance, and promote community-led sustainable forest management.
The FCPF program in the Terai Arc, a region known for its rich biodiversity and high human population density, is built on a strong community-based forestry model. It involves local communities, Indigenous Peoples, and civil society groups working together to restore forests and support climate-resilient 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," said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka.
According to the World Bank, the payment will be distributed according to Nepal's Benefit Sharing Plan, which was developed through extensive consultations with forest-dependent communities and stakeholders. The plan ensures that those on the frontlines of conservation, community forest user groups and Indigenous Peoples, receive direct benefits.
The investment will support forest restoration, community enterprises, and climate-resilient livelihoods, reinforcing Nepal's global reputation as a pioneer in community forestry, it added.
"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 Forest Carbon Partnership Facility is a global partnership supporting countries to reduce emissions from deforestation and forest degradation. As of November 2025, FCPF programs have reported over 131 million tCO₂e in emission reductions, with 63.7 million credits issued and 46.5 million credits paid for, totaling more than US$232 million in results-based financing.
The new payment places Nepal among the leading countries demonstrating transparent, inclusive, and sustainable forest management in the global fight against climate change.
