Back to success stories
14 Aug 2020 | Engaging policy makers

Incentives for ecosystem services

70% Complete

Nepal’s Forest Act (2019) now integrates payment for ecosystem services through a special provision

Incentives for Ecosystem Services

ICIMOD’s long standing efforts in the area of payments for ecosystem services (PES) has contributed to the integration of PES in Nepal’s Forest Act (2019). Incentives for ecosystem services, and financial and marketbased instruments for ecosystem sustainability, are now supported by the Act through a dedicated provision on environmental services.

ICIMOD has conducted pilot research and workshops, developed an issue brief, and also provided inputs as a member of the committee that drafted the policy on PES. The Act requires that management, use and benefit sharing of ecosystem services, including carbon sequestration, be included in forest operational plans. Benefits from hydropower, drinking water, tourism and other sectors have to be shared with relevant stakeholders. The Division Forest Office can process an Environmental Services Tender by inviting bids as per its annual plan. Grants or other forms of payment may also be arranged for owners of private forests who wish to manage environmental services and meet the requirements of the tender.

The Forest Act was promulgated in 2019 in Nepal. Several pilot scale studies have been undertaken on incentives for ecosystem services. However, due to lack of policy mechanism, large scale incentives for ecosystem services have not been implemented in Nepal. The Forest Act 2019 opens the door for incentives for ecosystem services to be institutionalized at various scales in the country and presents a model for other countries in the region.

The Forest Act (2019) enables incentives for ecosystem services to be institutionalized at various scales in the country and presents a model for other countries in the region.

Chapter 5

Engaging policy makers

Knowledge sharing for climate-smart livelihoods

Our engagement in southwest China – part of the Far Eastern Himalayan Landscape – has included ...

3 Dec 2019 RMS
Jholmal produces safer food and fetches better income

The village of Bhoterungti in Kavre Palanchowk District, Nepal was one of many settlements in the region affected by the ...

3 Dec 2019 REDD+
REDD+ for green communities

Global uptake of a community-based REDD+ approach Recognizing the importance of reducing emission from deforestation and forest degradation (REDD), there was ...

Financing green transition

The shocks of climate and the pandemic have demonstrated the vulnerability of the tourism economy in ...

Resilient agriculture and entrepreneurship in Bhutan

We have been encouraging resilience in Bhutan by supporting the Royal Government of Bhutan’s flagship programmes ...

Transboundary tourism across the Kangchenjunga landscape

Homestays are a unique community-based tourism product spread across the Kangchenjunga Landscape (KL) which have improved ...

6 Jul 2021 KSL
Enjoying homebased unique experiences in the majesty of the HKH mountains

Going from individual to regional approaches for ecotourism homestay development promises to benefit tourism operators and communities across ...

Flood early warning saves lives

Ensuring that the right information reaches the right audience at the right time is crucial to reducing disaster impacts