Carbon trading could make Nepal’s forests a foreign-currency cash crop

katmandujournal.com · 2 weeks ago

Nepal's agreement with the LEAF Coalition for forest protection through carbon credits, worth up to $55 million, presents a potential foreign-currency source but faces significant challenges. While Nepal's reforestation success and community forestry system are strong assets, issues like additionality, permanence, leakage, and unclear carbon ownership between communities and the state pose risks. Effective implementation, transparent governance, and diversified buyers are crucial to avoid the market's integrity crisis and ensure benefits reach local communities.