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

2 Dec 2019 KSL
Strengthening the Allo value chain in Khar VDC, Darchula, Nepal

Allo (Girardinia diversifolia ), or Himalayan nettle, is traditionally used in Nepal to make cloth. Its bark contains fibres that ...

Transboundary tourism across the Kangchenjunga landscape

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

3 Dec 2019 HICAP
Filling knowledge gaps in the HKH

Initial HICAP study results "The climate has already changed a lot. Last year we suffered from floods, now we are suffering ...

9 Jul 2021 SERVIR-HKH
Moving capacity building online

Given the unusual circumstances that defined ...

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, ...

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 ...

Our solutions are in nature

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

Promoting ambitious climate action for the HKH

Delegates from the eight HKH countries, including UNFCCC national focal points and HKH High-Level Task Force ...