February 11, 2025 5:55 pm
February 11, 2025 5:55 pm

Nepal is getting 1 billion 600 million rupees from carbon sales

Kathmandu, Ashoj 19(Oct 5): According to the agreement with the World Bank, Nepal will receive 1 billion 600 million rupees from the sale of carbon within the next month. From 2018 to 2024, Nepal is going to receive the amount for reducing carbon dioxide through the forests of 13 districts of the Terai, according to the RED Implementation Center under the Ministry of Forestry and Environment.

Nepal is going to get this amount for storing 2.4 million tons of carbon in 13 districts of Terai from Bagmati River to Mahakali River under the Terai Land Perimeter Program. According to the ministry, Nepal will receive Rs. According to Badriraj Dhungana, the spokesperson and joint secretary of the Ministry of Forestry, when the agreement was initially reached with the World Bank, it was agreed that the amount would come through the Forest Development Fund. He informed that after the Ministry of Finance said that according to the legal provisions of the country, such funds should come through the All Reserve Fund and only then be transferred to the Forest Development Fund, the World Bank has requested the government to clarify the matter.

There is a provision that 80 percent of the money received from carbon trading should be spent on local beneficiary tribal/tribal communities. “For this, the government has prepared a plan and approved it”, said the spokesperson Dhungana. In relation to carbon trading, Nepal’s National Red Plus Strategy, National Forest Base Level was approved in 2018. Then from 2019 to 2024 in 13 districts of Terai territory, a carbon emission reduction program was prepared to share the benefit from carbon trading.

Navaraj Pudasaini, head and joint secretary of the center, informed that the program has been implemented in 1.7 million hectares of 13 districts. An average of 167 tons of carbon has been accumulated per hectare from the forest area of ​​Nepal. Joint Secretary Pudasaini said, “Carbon emission reduction program has been conducted in 13 districts of Nepal’s Terai region and the target has been taken to reduce about 34.2 million tons of carbon dioxide gas emissions by 2028. In the first phase, 2.3 million tonnes of carbon emissions have been cut when measured in 2023.”

Nepal making an agreement on ‘Leaf Collision’

After the first phase of carbon trading, a proposal was submitted and signed on November 3, 2021 on behalf of Nepal on the ‘Partnership Program to Increase Forest Finance to Reduce Emissions’ (Leaf Collision). Leaf Collision is a market-oriented and results-based partnership mechanism of 26 private companies in the United States, United Kingdom, Norway and South Korea.

Ghana, Brazil and Costa Rica have already agreed on carbon pricing. According to the ministry, Nepal is preparing to make such an agreement during the 29th International Conference on Climate to be held in Baku, Azerbaijan from November 11 to 22. Joint Secretary Pudasaini informed that necessary preparatory activities have been conducted to sell the carbon accumulated in the forests of Bagmati, Gandaki and Lumbini provinces.

According to this agreement by Nepal for the year 2028, seven million tons of carbon will be stored in the 3.2 million hectares of forest area in the three provinces. For this carbon reserve, Nepal will receive one hundred million US dollars. In this agreement, the price of carbon will be fixed at $25 per ton with private companies and $10 per ton with sovereign countries.

Purushottam Ghimire, an expert on carbon trading and former joint secretary of the ministry, opined that success will be achieved only if the Ministry of Forestry welcomes the private sector and moves forward with regard to carbon trading. He said, “Carbon trading is not possible without bringing in the private sector. After allowing the private sector to do this, it is regulated under the legal framework, while the rest should be given freedom. Every time the ministry should not interfere in the work.” He says that carbon trading should be encouraged by producing forests on private sector land.

Are you from ‘Red Plus’?

Greenhouse gases are the gases that block the heat rays coming out from the outer surface of the earth and gradually increase the temperature of the earth. Carbon dioxide gas is considered as the gas that can play the most role in greenhouse gases. Likewise, the main cause of climate change is considered to be the entry of greenhouse gases in various forms into the atmosphere. The concept of payment received as an incentive from developed countries to developing countries for reducing carbon emissions from deforestation and forest degradation, protecting forests effectively and increasing carbon storage capacity through sustainable management is called Red Plus.

Under this program, reduction of emissions through forest destruction, reduction of emissions through forest degradation, conservation of forest carbon reserves, sustainable management of forests and enhancement of forest carbon reserves are carried out. Nepal has also been doing various activities through RED since 2008. The National Red Strategy prepared in 2018 is a milestone of carbon trading and RedPlus program. In line with the Red Plus program, Nepal is about to enter the implementation phase from the preparation phase.

Picture of Phatam B. Gurung

Phatam B. Gurung

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