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

At home in the Far Eastern Himalaya

Homestay tourism under way around Namdapha National Park and Tiger Reserve

Harnessing partnerships to address food insecurity

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

3 Dec 2019 RMS
Straw Mulches aid farmers battling drought

As she planted her batch of bitter gourds in Kalchhe Besi last year, Kamala Timalsina was unsure if they would ...

3 Dec 2019 Beekeeping
ICIMOD and KHDC organize training on beekeeping in the Chittagong Hill Tracts, Bangladesh

A seven-day training of lead farmers on beekeeping was organized from 5 -11 January 2017 with the main objective of ...

9 Jul 2021 SERVIR-HKH
Data for food security planning in Nepal

From June to November 2020, 130 staff members from district ...

Gender equality in tourism enterprises

Tourism is an important priority area for national and local governments across Bhutan, India, and Nepal. ...

Improving livelihoods and conservation through agroforestry

We are leveraging a public–private–community partnership working with the private sector company Dabur Nepal Pvt. Ltd, ...

Bouncing back better

ICIMOD partner SABAH Nepal helps all-women team make the best of a crisis