Opinion | The world wants carbon credits. Nepal has them
Summary
Nepal is well positioned to meet the surging global demand for credible carbon credits with its vast forests and renewable energy potential but has yet to fully capitalize on this opportunity due to regulatory and awareness gaps.
Key Points
- Nepal holds significant potential in carbon markets due to its large forest cover and renewable energy resources.
- Despite this potential, Nepal has earned only a fraction of possible revenue from carbon credits, partly due to limited accessible projects and regulatory clarity.
- Recent legal frameworks and institutional changes aim to support carbon trading but challenges remain in approvals and community awareness.
- Nepal's Least Developed Country status, which facilitates carbon project registration, is expiring soon, making the next year critical for leveraging carbon markets.
