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Good practice Imported

Nepal's First REDD+ Results-Based Payment — $9.4M for Terai Arc Landscape Emission Reductions

Nepal · Bharatpur · See the Nepal profile · See the Bharatpur profile

Evidence: Observational / pre–post Top 27% 53/100 · Ask Evidence Copilot about this practice

Nepal received its first-ever REDD+ results-based payment - US$9.4 million from the World Bank's FCPF - in November 2025, after independently verifying 1.88 million tonnes of CO2e in emission reductions across the Terai Arc Landscape's community-managed forests.

1.88 million tCO2e
Emission reductions verified
US$9.4 million
First payment received (Nov 2025)
131 million tCO2e
FCPF global emission reductions reported (as of Nov 2025)
63.7 million
FCPF global credits issued
US$232 million+
FCPF global results-based financing paid
Nepal's First REDD+ Results-Based Payment — $9.4M for Terai Arc Landscape Emission Reductions

Details

Maturity
Established
Promoter
Government of Nepal (Ministry of Forests and Environment) with the World Bank's Forest Carbon Partnership Facility (FCPF)
Period
2018-2025
Keywords
forestry, REDD+, climate finance, community forestry, Indigenous Peoples

Context

The Terai Arc Landscape stretches across Nepal's southern lowlands, linking protected areas and forests managed in part through Nepal's community forestry system.

Activities

Nepal signed an Emission Reduction Payment Agreement with the World Bank's Forest Carbon Partnership Facility, committing to cut deforestation and forest degradation under a REDD+ programme; funds are distributed via a participatory Benefit Sharing Plan.

Results

Independent verification confirmed 1.88 million tonnes of CO2-equivalent in emission reductions, triggering Nepal's first-ever payment: US$9.4 million, received in November 2025.

Conclusions

Nepali commentary has questioned whether the Benefit Sharing Plan's participatory design will translate into equitable disbursement to the poorest and most forest-dependent households.

Implementation
Indicative cost
Medium (€50k–€500k) — MRV and community-forestry administration costs not separately itemised; the payment received is results-based, not a grant of upfront implementation cost.
Time to results
Long (> 3 years) — ERPA signed with World Bank FCPF; first results-based payment received November 2025.
Staffing & skills
community forest user groups across Terai Arc Landscape, Nepal Ministry of Forests and Environment MRV team

Conditions for success

  • community forestry system with formal local user-group rights
  • participatory Benefit Sharing Plan development
  • independent third-party emissions verification

Common failure modes

  • Nepali commentary (The Farsight Nepal) questions whether the Benefit Sharing Plan's participatory design will deliver equitable disbursement to the poorest households

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Data sources

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

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