Kathmandu, Jan 24: The Government of Nepal has signed a landmark agreement to receive up to USD 55 million in climate finance from the LEAF Coalition, recognizing the country’s efforts in forest conservation and emissions reduction.
With this agreement, Nepal has become the first Asian country to access climate finance under the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition.
The LEAF Coalition is a global public–private partnership comprising more than 30 leading international companies and the governments of Norway, the United Kingdom, the United States, and the Republic of Korea.
The agreement was signed on Friday by the Ministry of Forests and Environment, reaffirming Nepal’s long-standing commitment to reducing greenhouse gas emissions through jurisdictional REDD+ programmes. The official announcement was made during a programme held in Kathmandu the same day.
Notably, Nepal has become the first government to offer “correspondingly adjusted” carbon credits to private-sector buyers through the LEAF Coalition. These credits can be used for international compliance schemes such as the Singapore Carbon Tax and CORSIA, the global aviation emissions mechanism. Under the deal, up to 25 percent of the credits made available to the private sector will carry corresponding adjustments.
The funds are expected to support Nepal’s goal of maintaining 45 percent of its total land area under forest cover by 2030 and achieving net-zero emissions by 2050. The initiative will also strengthen Nepal’s community-based forest management system, benefiting more than three million households nationwide.
The programme was attended by over 100 participants, including representatives from government agencies, indigenous nationalities, local governments, and community forest user groups. #nepal #REDD #LEAF
