Summary:
Nepal has signed a landmark agreement with the LEAF Coalition to receive up to $55 million in climate finance, making it the first Asian country to access LEAF funding. The deal recognizes Nepal’s success in reducing deforestation and expanding forest cover, which now accounts for 46% of the country’s land area. The LEAF Coalition is a global public-private initiative supported by major companies and governments including Norway, the UK, the US, and South Korea.
Under this agreement, Nepal will offer high-integrity forest carbon credits to private sector buyers, which can be used for compliance with schemes like Singapore’s Carbon Tax and CORSIA. The deal supports Nepal’s jurisdictional REDD+ program, which focuses on community-based forest management and sustainable resource use.
The agreement provides a purchase guarantee for an initial one million emissions reductions/removals credits, with potential for more depending on credit issuance. The funding will reward local communities, Indigenous Peoples, and forest user groups who have contributed to forest conservation efforts. Officials from Nepal, the LEAF Coalition, and partner countries praised the deal as a major step forward in combating deforestation and promoting sustainable forest management.
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