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Good practice

Nepal Terai Arc Landscape REDD+ Emission Reductions Programme

Nepal · Kathmandu · See the Nepal profile

Nepal's jurisdictional REDD+ programme covering 1.7M ha of the Terai Arc Landscape: 2.4M tCO2e reduced 2018–2024, US$9.4M World Bank FCPF payment (2025). Built on 22,000+ community forest user groups managing 2.4M ha and 3M+ households — one in four Nepalis.

1.7 million ha
Programme area (current)
2.4 million tCO₂e
Emission reductions achieved (2018-2024)
9.4 USD million (for 1.88M tCO₂e)
First FCPF payment received (November 2025)
up to 4 million tCO₂e
Parallel LEAF Coalition agreement volume (current agreement)
22,000+ CFUGs
Community Forest User Groups (CFUGs) (current)
2.4 million ha
Forest area managed by CFUGs (current)
3+ million households
Households involved in community forestry (current)
73,000+ women
Women elected as CFUG leaders (current)

Details

Maturity
Established
Promoter
Government of Nepal – Ministry of Forests and Environment / World Bank FCPF
Period
2018-present
Keywords
Tropical forest, carbon, community forestry, biodiversity

Context

The Nepal Terai Arc Landscape REDD+ Emission Reductions Programme ('People and Forests') is a jurisdictional forest-carbon scheme covering 1.7 million hectares across 13 Terai districts, embedded within the broader 4.95-million-hectare transboundary Terai Arc Landscape linking eleven protected areas in Nepal and India. It is built on Nepal's community forestry system.

Objectives

To reduce emissions from deforestation and forest degradation at jurisdictional scale while sustaining Nepal's community forestry model and its biodiversity co-benefits.

Activities

Over 22,000 Community Forest User Groups (CFUGs) manage approximately 2.4 million hectares — roughly one-third of Nepal's total forest cover — involving more than 3 million households, about one in four Nepalis. Women hold at least 50% of CFUG committee seats.

Results

Between 2018 and 2024, the programme reduced approximately 2.4 million tonnes of CO₂ from deforestation and degradation. In November 2025, Nepal received US$9.4 million from the World Bank's Forest Carbon Partnership Facility (FCPF) Carbon Fund for 1.88 million tCO₂e verified under the FCPF's methodology — the first FCPF payment under an Emission Reductions Purchase Agreement for this programme. A parallel LEAF Coalition agreement covers up to 4 million additional tCO₂e. More than 73,000 women have been elected as CFUG leaders through the community forestry system.

Conclusions

The Terai Arc is a priority transboundary tiger conservation corridor between Nepal and India, providing substantial biodiversity co-benefits including habitat for rhinoceros, elephant and other megafauna.

Implementation
Indicative cost
High (€500k–€5M) — US$9.4 million received from the World Bank FCPF Carbon Fund (November 2025) for 1.88 million tCO₂e; a parallel LEAF Coalition agreement covers up to 4 million additional tCO₂e — national-scale, multi-million-dollar financing supports a high-cost classification.
Time to results
Long (> 3 years) — Emission reductions tracked 2018-2024; first FCPF payment received November 2025; built on a community forestry system that predates the carbon programme by decades.
Staffing & skills
Government of Nepal – Ministry of Forests and Environment implements the programme with the World Bank FCPF, Delivery relies on 22,000+ Community Forest User Groups managing forest at local level

Conditions for success

  • A long-standing, well-established community forestry institutional base (CFUGs) that predates the carbon programme
  • Strong gender-inclusion requirement (at least 50% women on CFUG committees)
  • Jurisdictional, rather than project-level, scale enabling large-volume verified credit sales
  • Diversified buyers: World Bank FCPF and the LEAF Coalition

Common failure modes

  • Not explicitly documented in the source beyond the standard REDD+ dependence on continued management of deforestation drivers across a large jurisdiction

Where it fits

Governance type
National government-led jurisdictional REDD+ programme with community forestry co-management
Scale
National/jurisdictional (13 districts, transboundary landscape)
Income level
Low-income (Nepal)

Data sources

Where this practice's information was retrieved from, and when.

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