The Government of Nepal has rolled out the Carbon Trading Regulation, 2025, enabling private-sector contributions to carbon-emission reduction to be included in national carbon trading frameworks. The regulation—approved by the Cabinet on December 1 and published in the Nepal Gazette on Tuesday—broadens carbon trade beyond projects previously limited to the Alternative Energy Promotion Centre. According to the Ministry of Forests and Environment, Nepal can now engage in carbon trading through bilateral agreements under Article 6 of the Paris Agreement, competitive markets, or non-market approaches. The new policy’s scope spans hydropower, forestry, agriculture, and alternative energy, potentially turning carbon trade into a significant source of foreign currency earnings for Nepal.
