Kathmandu : The Government of Nepal has signed a landmark agreement to receive climate finance up to 55 million US Dollars from the LEAF Coalition in recognition of its efforts for forest protection.
With the signing, Nepal has also become the Asian country to access climate finance from the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition.
The LEAF Coalition is a noble global public-private shared initiative comprising over 30 noted international companies and the governments of Norway, the United Kingdom, the United States and the South Korea Republic.
Signing the deal on Friday, the Ministry of Forests and Environment has reaffirmed its longstanding commitment to reduce greenhouse gas emissions through jurisdictional REDD+ programmes.
The official announcement of the agreement was made at a programme organized here on Friday.
Nepal is the first government to offer “correspondingly adjusted” carbon credits to private sector buyers through the LEAF Coalition, allowing these credits to be used for compliance schemes like the Singapore Carbon Tax and CORSIA (aviation emissions).
As part of the deal, up to 25 percent of credits made available to the private sector will carry corresponding adjustments.
The funds will support Nepal’s target to maintain 45% of its total land area as forest by 2030 and achieve net-zero emissions by 2050. Also, the initiative supports Nepal’s community-based forest management system, benefiting over three million households.
The programme was attended by over 100 participants representing diverse stakeholders including government, indigenous nationalities, local governments and community forest users groups.
