Nepal forest carbon deals (World Bank ER-MR, LEAF)
- The record does not name which of my species, waters, soils or forests were harmed.
Nepal received US$9.4 million from the World Bank's Forest Carbon Partnership Facility for 1.88 million tonnes of CO2 reductions in 2025, and has a LEAF Coalition agreement worth up to US$55 million. Studies of community forests report that benefits reached poorer and lower-caste households unevenly.
World Bank, November 2025.
Status As of November 2025: World Bank payment of US$9.4 million announced; LEAF agreement of up to US$55 million on record.
- Nepal's government and programme implementers — Payments under the carbon fund. World Bank
- Dalit households and Kami blacksmiths — Little gain and exclusion from charcoal collection in nearly half of user groups.
What happened
In November 2025 the World Bank announced that Nepal would receive US$9.4 million from the Forest Carbon Partnership Facility for 1.88 million tonnes of CO2 reductions. A reports of the monitoring report states that 61% of this came from carbon sequestration by afforestation; this was not verified from the report itself.
Nepal also has an agreement with the LEAF Coalition worth up to US$55 million. Credits under it can be used against Singapore's carbon tax and for aviation offsetting.
Nepal's community forests are managed by user groups. Studies in the sources reviewed report that the poorest households gained little: the poverty gain for Dalit households was statistically insignificant (p=0.532); blacksmith Kami households were excluded from charcoal collection in nearly half of user groups; and no Dalit women were among grantees in a REDD+ pilot.
Donor-funded programmes in the sector include MSFP (US$62 million), Hariyo Ban (about US$37 million in one source, US$29.9 million in another) and Forests for Prosperity (US$24 million, of which US$17.9 million was credit). Separately, a Kathmandu Post editorial of May 2025 said domestic timber was rotting while Nepal imported NPR 6–8 billion of timber a year.
- 2025World Bank announces US$9.4 million for 1.88 Mt under the Forest Carbon Partnership Facility (November); Kathmandu Post editorial on timber (27 May)
- 2025LEAF Coalition agreement of up to US$55 million on record
What was said
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
The 80% includes local governments and implementers; at most 70% is left for communities.
How it looked
Shown
- '1.88 Mt CO2 reduced'; '80% of carbon revenue to communities'.Programme presentation of the carbon payments
Recorded
- The 80% share includes local governments and implementers; the share left for communities is at most 70%.
- About 76% of timber sold in Nepal comes from private forests; community timber costs twice as much and rots.
- Dalit households: poverty gain statistically insignificant (p=0.532).
- Kami blacksmiths excluded from charcoal collection in nearly half of user groups.
- No Dalit women among grantees in a REDD+ pilot.
In court and with insurers
Lawsuits and rulings
- Outcome not on recordMakwanpur illegal felling caseNot stated · Criminal · Not stated → A district forest officer, user group managers and timber operators
The sources reviewed record that a district forest officer, user group managers and timber operators were tried together for illegal felling; no outcome is stated.
Insurers
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Court
- Unclear Makwanpur illegal felling case: outcome not on record.
Accounts
- Disputed How much carbon revenue reaches communities?
Record
- Disputed Figures for Hariyo Ban differ between sources: about US$37 million and US$29.9 million; the World Bank blog gives conflicting figures.
- Insufficient The 61% afforestation share was reported of the monitoring report: reported but not independently verified.
- None on record The sources reviewed describe two series of figures for a share of benefit (39.6% and 46.08%) as not comparable.
Did the harm stop?
The sources reviewed do not say.
Who paid?
The sources reviewed report that poorer and lower-caste households received little of the benefit.
Sources
Government and regulators
- A new and more sustainable era for Nepal's forestsWorld Bank blog · 2021
Press and investigations
- Timber trouble (editorial)The Kathmandu Post · 2025-05-27
Communities and civil society
- Rights and Resources Initiative on MSFPRRI · 2012
Connected cases
- Nepal community forestry Nepal · 2000–2026 Related matter
- Government of Nepal (Government) — here: Seller of emission reductions; there: Regulator and tax authority for community forests
- Pará forest carbon credit schemes face suspension and lawsuits Brazil · 2023–2026
- LEAF Coalition (Association) — here: Credit buyer coalition; there: counterparty in the 2024 preliminary deal
- Pará state pre-sold 12 million REDD+ credits; federal prosecutors sue to cancel Brazil · 2023–2026
- LEAF Coalition (Association) — here: Credit buyer coalition; there: Counterparty to the 2024 preliminary agreement
- WWF Nepal Chitwan ranger death (Shikharam Chaudhary) Nepal · 2006–2020
- Government of Nepal (Government) — here: Seller of emission reductions; there: Withdrew the murder case in March 2007