सूचक

• The Constitution of Nepal (2015) establishes the legal foundation for ownership and governance of natural resources, including forests and associated ecosystem services. Carbon, as a component of forest ecosystem services, falls under Federal jurisdiction, while management and use rights over forest resources are exercised through the country's forest governance systems established under national law.

• The Forest Act (2019) recognises forest carbon as an ecosystem service and provides the legal basis for management, utilisation and benefit sharing of forest ecosystem services. It clarifies that forest ownership remains with the State (and private forest owners in the case of private forests), while Community Forest User Groups (CFUGs) and other community-based forest management (CBFM) institutions have legally recognised rights to manage, use and benefit from forest resources under approved operational plans.

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  The Forest Regulation (2022) further elaborates provisions on forest ecosystem services, including carbon, and establishes procedures for management, utilisation and benefit sharing through forest operational plans. These provisions reinforce that while ownership of forest resources lies with the State, communities have defined use rights and are entitled to benefits derived from forest management, including those related to carbon.

• The Environment Protection Act (2019) and Environment Protection Regulations (2020) provide for the Government to participate in carbon trade through mechanisms established by international treaties, any foreign government or organisation, business entity or private sector.
   

• Provisions related to Free, Prior, and Informed Consent (FPIC) are present in the Constitution of Nepal (2015), Forest Policy (2019), and Forest Regulations (2022), including Rule 107 which requires FPIC to be carried out prior to entering national or international agreements related to sustainable forest management–based emission reduction payments.

• In addition, the Carbon Trading Regulation (2025) further clarifies institutional roles and procedures for developing emission reduction projects and managing carbon benefits. Schedule 1 of the regulation specifies eligible areas and sectors for the development of ER projects, including the AFOLU sector.

• The National REDD+ Strategy (2018-2022) and its updated version (2025-2034) include provisions related to carbon rights and benefit sharing within forest governance systems. The NRS highlights the need to clarify carbon rights within existing forest tenure arrangements and promotes fair and equitable sharing of carbon and non-carbon benefits among rights holders, including Community-based Forest Management (CBFM) groups, Indigenous Peoples, local communities, women and other marginalised groups. Relevant strategic actions emphasise strengthening tenure security, ensuring clear arrangements for carbon benefit distribution, and aligning carbon rights with the rights of forest users to manage, use and benefit from forest resources under national legal frameworks.

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