A photo of a road in the middle of a forest during sunset
Bharati Pathak, who chairs the Federation of Community Forest Users Nepal, recalls how through the 1980s and 90s, rampant forest clearance to make room for agricultural production, excessive timber harvesting and uncontrolled grazing took a toll on Nepal’s forests .
“Our future and our present were at stake as depleted forest resources drained the primary source of our livelihoods,” says Bharati, who, with other conservationists, championed community-led action to preserve and manage forest resources better.
Their efforts have paid off as three decades ago, Nepal’s government made a progressive change to its forest policy and transferred user rights for a large part of its forests to local communities.
Today, 34% of Nepal’s forests are managed by more than 22,000 community-forest user groups.
This transformational shift helped reverse deforestation, stabilize steep mountain slopes, conserve biodiversity and secure essential income sources for Indigenous Peoples and local communities.
“Instead of centralized control over forests, we rallied for benefit sharing and the active participation of Indigenous Peoples and local communities to bring back Nepal’s forests,” says Bharati.
Nepal’s government made a progressive change to its forest policy and transferred user rights for a large part of its forests to local communities. Today, 34% of Nepal’s forests are managed by more than 22,000 community-forest user groups.
Nepal’s bold approach to protecting its forests has created a rich natural endowment. Still, the country imports wood products, and the forest sector contributes marginally to its economy.
Official reports show that the national harvest of roundwood averages about 60,000 cubic meters per year.
Nearly four times that amount could be produced sustainably each year, generating new employment opportunities for up to one million people.
Nepal’s bold approach to protecting its forests has created a rich natural endowment. Still, the country imports wood products, and the forest sector contributes marginally to its economy.
Forests for prosperity
Forests and forest landscapes have been front and center of the Bank’s natural resources agenda over the past 30 years – the agenda has become even more important for the global climate agenda as it has become clear how important forests and trees are for mitigating climate change and building social and ecological resilience to its impacts.
To support Nepal’s efforts to sustain its forest cover while sustainably increasing productivity, the government of Nepal and the World Bank have started a programmatic engagement in support of Nepal’s forest landscapes.
This engagement is centered around sustainable forest management and addressing the drivers of deforestation and forest degradation. It aims at maintaining and enhancing the environmental, economic, and social values of all types of forests, for the benefit of present and future generations.
Overall, forests managed through local communities can provide a sustainable supply of wood and non-timber forest products, support rural livelihoods, boost local forest-based enterprises and jobs, and reduce imports.
The programmatic approach allows Nepal to benefit from a multitude of financing instruments the World Bank offers, including investment finance, technical assistance, and performance-based payments.
In March 2021, the Government of Nepal and the World Bank signed the Emission Reductions Payment Agreement for the Emission Reductions Program in the Terai Arc Landscape – an innovative, performance-based financial product supported through the Bank’s Forest Carbon Partnership Facility (FCPF).
The Program will reduce the threats to the remaining forests in the Terai and if the results are independently verified, Nepal will be eligible for payments of up to $45 million through 2025 for verified carbon emission reductions.
Also in the same month, the Forests for Prosperity Project was signed, a $24 million investment project supported through the Forest Investment Program of the Climate Investment fund. The Forests for Prosperity project will support the ongoing federalization process, support the communities’ sustainable management of forests and help develop a vibrant and modern forest-based private sector.
The Forest for Prosperity Project will strengthen sustainable forest management while paving the way for a resilient and greener recovery from the COVID-19 crisis.
The project aims to transform Nepal’s forest sector further and reduce wood and forest product imports. The project will be complemented by a Dedicated Grant Mechanism for Indigenous Peoples and Local Communities in Nepal (DGM Nepal) to improve their capacity for securing community forest user rights and traditional livelihoods and for policy dialogue on sustainable management of forest and land resources.
“Amid the economic slowdown triggered by the COVID-19 pandemic, these projects are a beacon of hope for the indigenous communities,” says Jagat Baram, Chairperson of the Nepal Federation of Indigenous Nationalities. “It will open up avenues for new jobs and opportunities and build their resilience to cope with future shocks.”
The forest landscape engagement provides opportunities for other national and international partners to join which would allow scaling up activities and ultimately benefitting more people while sustaining Nepal’s forest cover.
In the long-term, this sustainable approach will herald the second transformation of Nepal’s forest sector and add a new chapter to the country’s success story in improving its forests for the benefit of all Nepalis and the planet.
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