Nepal

Nepal may explore potential markets that allow higher mitigation ambition while promoting sustainable development and environmental integrity.

Nepal will prioritize some climate actions for the carbon market under Article 6 of the Paris Agreement while ensuring there is no double counting, and maintaining environment integrity. To engage effectively in the carbon trading under Articles 6.2 and Article 6.4, including for the implementation of Article 6.8 of the Paris Agreement, Nepal will establish robust institutional frameworks and develop necessary regulations to facilitate carbon trading. Some of these preparations are already reflected in the Environment Protection Act (2019) and Regulation (2020). Capacity-building programs will be conducted to enhance the technical expertise of relevant stakeholders, including government officials, private sector entities, and local communities. Nepal will ensure corresponding adjustments and the establishment of a transparent monitoring, reporting, and verification systems and registries to track carbon emissions accurately and facilitate the issuance of carbon credits.