KATHMANDU: Nepal has signed a landmark agreement with the LEAF Coalition to receive up to 55 million US Dollars in climate finance, marking the country as the first in South Asia to access funds through this global initiative for forest protection.
The Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition is a public-private partnership that includes over 30 international companies alongside the governments of Norway, the United Kingdom, the United States, and South Korea.
The agreement, signed on Friday by the Ministry of Forests and Environment, underscores Nepal’s ongoing commitment to reducing greenhouse gas emissions through jurisdictional REDD+ programmes. Officials emphasized that the deal will support Nepal in maintaining 45% of its land as forest by 2030 and achieving net-zero emissions by 2050.
Nepal has also become the first government to offer “correspondingly adjusted” carbon credits to private sector buyers under the LEAF Coalition. These credits can be used in compliance schemes, including Singapore’s Carbon Tax and CORSIA for aviation emissions, with up to 25% of credits carrying such adjustments.
The funds will further strengthen Nepal’s community-based forest management system, benefiting more than three million households across the country.
The signing ceremony in Kathmandu was attended by over 100 participants, including representatives from government agencies, indigenous nationalities, local governments, and community forest user groups.
This milestone positions Nepal as a regional leader in climate finance and forest conservation, highlighting the country’s proactive approach to tackling climate change through collaborative international partnerships.
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