Nepal's income from carbon trading is up to four and a half billion

To face the global challenge of climate change, Nepal has succeeded in making significant financial gains through carbon trading. So far, Nepal has earned about 36 million US dollars, which is equivalent to 4.584 billion rupees at the current exchange rate, through this business. According to the Ministry of Finance, this income is revenue from carbon trading. According to the Alternative Energy Promotion Center, this income comes from multilateral international organizations. Even before this, Nepal has a history of earning crores of rupees from selling carbon. This income received as an appreciation of forest protection and environmental contribution has been identified as a new and sustainable source of economic potential for the country.

This amount received from the World Bank is the result of efforts to protect forests and reduce carbon emissions and increase carbon reserves in 13 districts of the Terai from 2018 to 2024. Importantly, this is not a grant, but a business. Unlike the traditional exchange of physical or immaterial goods, it is a 'trade of air'. Nepal has received this amount as payment through the World Bank's Forest Carbon Partnership Facility (FCPF) program for reducing carbon emissions by protecting forests. This process is called 'carbon trading'. Among the countries that benefit from this environment-based new business that has started around the world, Nepal has achieved the first position in South Asia.

According to the Center for Alternative Energy Promotion, eight projects have been registered for carbon trading, including household biogas, improved watersheds, micro and small hydropower projects. During the period from 2007 to 2025, a total of 6.688 thousand tons of carbon emission reduction has been proven from these projects. According to Section 28 of the Environment Protection Act, 2076, the Government of Nepal has prepared a legal basis to participate in carbon trading with foreign governments, organizations, commercial bodies and the private sector, established under international treaties for carbon emission reduction and storage. With the implementation of this legal system, Nepal has been making significant income from carbon trading through alternative energy and environment-friendly technologies in recent years.