Nepal has officially taken a decisive step toward operationalizing carbon benefit sharing under the REDD+ program, marking a milestone in the country’s results-based climate finance journey.

A *National Seminar on the Investment Plan and Carbon Benefit Sharing Plan of the Emission Reduction Program (ERP)* was successfully convened in Bhairahawa by the *REDD Implementation Centre (REDD IC)* in close collaboration with the *Ministry of Forests and Environment (MoFE)* and with support from the *DGM Nepal Project*.

The seminar brought together *67 senior officials and technical leaders* from federal, provincial, and district levels, including Secretaries from all five provinces, Divisional Forest Officers from the Terai Arc Landscape (TAL), national park representatives, the World Bank, and key REDD+ stakeholders. The gathering signaled a collective commitment to move from *strategy and agreements to real-world implementation* of carbon benefits at the community level.

*From Global Commitments to Community Benefits*

Following the successful verification of Nepal’s first Emission Reduction Program (2018–2021) and the receipt of *USD 9.4 million in performance-based carbon payments, the focus has now shifted toward **how these benefits will be invested and shared equitably*.

The seminar validated Nepal’s draft *Investment Plan (IP)—a core instrument aligned with the national **Carbon Benefit Sharing Plan (BSP)—which will guide how carbon revenues are allocated across **Community Forest User Groups (CFUGs), Protected Areas, and government-managed forests* in 13 TAL districts.

The Investment Plan prioritizes:

• Sustainable Forest Management (SFM)
•  Climate-resilient and green livelihoods
•  Biodiversity restoration
•  Fire and invasive species management
•  Water recharge and ecosystem services
•  Human–wildlife conflict mitigation

Importantly, it embeds *equity, safeguards, and Indigenous Peoples’ and Local Communities’ (IPLCs) rights* at its core.

> *“This is not just about carbon finance—it is about trust, transparency, and fairness,”* said Mr. Nabaraj Pudasaini, Chief of the REDD Implementation Centre.
> “For REDD+ to succeed, carbon benefits must meaningfully reach Indigenous Peoples, forest-dependent communities, women, and marginalized groups. The Investment Plan provides the roadmap to ensure performance-based payments translate into real improvements on the ground.”

*Strengthening Multilevel Governance for REDD+*

Discussions throughout the seminar emphasized the need for *strong institutional coordination*—from MoFE and REDD IC to provincial ministries, Divisional Forest Offices, and CFUGs. Participants highlighted the critical role of:

• Functional *REDD Desks and REDD Cells*
•  Clear roles for REDD focal persons
• Robust *Monitoring, Reporting, and Verification (MRV)* systems
•  Accurate forest data, GIS boundaries, and documentation

The seminar also surfaced practical concerns around *fund flow mechanisms, taxation, PAN requirements, and capacity gaps at district level*, prompting REDD IC to commit to issuing simplified financial and procedural guidance.

*Preparing for Rollout at the Community Level*

Looking ahead, *DGM Nepal Project and REDD IC* will jointly support *capacity-building and follow-up consultations* across the *13 TAL districts*, ensuring that district-level Investment Plans are refined, safeguard-compliant, and aligned with community priorities.

Special attention will be given to:

•  Remote and historically marginalized CFUGs
•  Women’s participation and leadership
•  Activation of passive CFUGs through enterprise development
•  Strengthening customary and tenure rights
•  Building district readiness for future carbon finance opportunities

*A Turning Point for Nepal’s REDD+ Journey*

The Bhairahawa seminar marked a critical transition—from planning to practice—in Nepal’s REDD+ implementation. By aligning policy frameworks, institutional roles, and community-level investments, Nepal is positioning itself as a *credible, inclusive, and results-driven actor in global climate finance*.

As carbon revenues begin to flow, the real measure of success will be seen in *healthier forests, stronger local institutions, and tangible benefits for the communities who protect them*.

This report is jointly prepared by the DGM Nepal Project and the REDD Implementation Centre.