PMI Targeted Support
close
Program Overview
 |
|
Nepal is strengthening its policy and institutional foundations to engage in international carbon markets as part of its low-carbon growth strategy and climate, or Nationally Determined Contribution (NDC) commitments. Building on its environmental legislation and forest-sector experience, the government is developing a national carbon market framework and preparing for participation in Article 6 of the Paris Agreement to combat climate change.
Continued collaboration with partners such as the World Bank, UNDP, GGGI, and the LEAF Coalition, alongside regional peer exchanges, will further strengthen institutional capacity. These efforts will enable Nepal to operationalize cooperative approaches under Article 6, attract climate finance, and support the achievement of its updated NDC targets.
Objectives & Activities
Through a just-in-time grant from the PMI Program, Nepal receives targeted support for:
- Gap and stakeholder analysis: Assess existing frameworks and map key stakeholders to identify next steps toward establishing a national carbon pricing strategy
- Carbon market strategy development: Support the formulation of a national strategy for carbon markets aligned with its NDCs, incorporating lessons from existing forest-sector initiatives (e.g., CDM, FCPF)
- Article 6 readiness: Provide technical inputs to establish the policy and institutional framework for Article 6 implementation, including support for Measurement, Reporting, and Verification (MRV) and pilot activities with partners such as the World Bank, UNDP, GGGI, and LEAF
- Digital infrastructure assessment: Evaluate IT readiness for digital carbon market systems and scope the design of a national carbon asset registry, including capacity building through targeted training
- Knowledge exchange: Facilitate regional and international South-South exchanges (e.g., with Thailand, Nepal, Bhutan, Guyana, and Belize) to build institutional capacity and share lessons learned