The Forest Carbon Partnership Facility (FCPF) released a USD $200,000 Formulation Grant in 2009, (FCPF, 2012). A total of USD$7,480,000 has been disbursed for REDD+ Readiness preparation support in Nepal for the period 2011 to 2013, an amount that is co-financed by FCPF, DFID/SDC, JICA, the Government of Finland and USAID (World Bank, 2011). Following the implementation of the R-PP Package, Nepal is expecting to enter the carbon market by 2013 in order to receive funding.
The projects in Nepal are largely bilaterally funded, with the Norwegian Agency for Development Cooperation (NORAD) having funded three projects including the ‘Design and Establishment of a Governance and Payment System for Community Forest Management under REDD+’, the ‘Grassroots Capacity Building Program for REDD+’ and the ‘Climate Change and Partnership Programme’. The Foreign Ministry of Finland financially supports the ‘Reducing Poverty in Nepal’ project and the Forest Resources Assessment (FRA) project. The Himalayan Community Carbon project will be funded through the Voluntary Carbon Market through the sales of carbon credits accredited through Plan Vivo. In the Eastern part of the country, The Mountain Institute (TMI) is also developing a Project Design Document (PDD) for the voluntary carbon market, with the support of private investors.
FOREST CARBON PARTNERSHIP FACILITY. 2012. REDD Readiness Progress Fact Sheet. June 2012. Available here.
THE WORLD BANK. 2011. Readiness Preparation Proposal Assessment Note.