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

3 Dec 2019 KSL
Improving farmers’ access to information

Since 2012 ICIMOD, in collaboration with the Central Himalayan Environment Association (CHEA), has implemented the Kailash Sacred Landscape Conservation and ...

3 Dec 2019 Himalica
Beekeeping in the Chittagong Hill Tracts, Bangladesh: A success story

The Asiatic honeybee Apis cerana is indigenous to, among other regions, the Chittagong Hill Tracts of Bangladesh. It is found ...

8 Jul 2021 KSL
Sustainable trade of nature-based products

Assessing Sudurpaschim Province’s potential for export and income generation

3 Dec 2019 Livelihoods
Increasing incomes of the rural poor though bay leaf value chain development

Story of Madan Singh, Chamoli District, India Madan Singh is a farmer living with his wife and two sons in Nizmullah, ...

Interdisciplinarity at altitude

Consultative efforts and pilots across the Kangchenjunga Landscape have identified best practices for improved yield, and a shared vision ...

14 Aug 2020 Pakistan
Pakistan’s brick kiln makeover

A cleaner brick industry brings multiple benefits and helps the country meet its climate targets

Knowledge sharing for climate-smart livelihoods

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

Harnessing partnerships to address food insecurity

Fodder shortage in the winter is a major concern for farmers and households in the Hindu ...