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

Tourism planning at the local level

As Nepal’s gateway to Mount Kailash in the Tibet Autonomous Region of China, Namkha Rural Municipality ...

India’s first State REDD+ Action Plan launched

Mizoram paves the way for strategic forest conservation across the HKH

Our solutions are in nature

Advocating ecosystem-based adaptation approaches to address the complex impacts of climate change on communities and their environments

Capacity building in using open-source software

Through trainings organised by our Cryosphere, Climate Services, and Himalayan University Consortium initiatives, we have introduced ...

2 Dec 2019 KSL
Local council for protected area management in KSL, Nepal

The Api Nampa Conservation Area (ANCA) is a protected area at the far northwest corner of Nepal, bordering Tibet and ...

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

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

From the HKH to Africa

Our CBFEWS success inspires a flood intervention project in Malawi

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 ...