Nepal allocates Rs12.31 billion for forestry, environment, and climate sector

Nepal's government has earmarked Rs12.31 billion for the forestry, environment, and climate change sector in its budget for the fiscal year 2026-27. Finance Minister Swarnim Wagle announced the allocation during a joint session of Parliament, outlining a strategy that includes issuing green energy and diaspora bonds, and maximizing the use of available climate funds.

A significant portion, approximately Rs1 billion, is dedicated to water source conservation, pond construction, landslide control, and embankment works. These initiatives aim to sustain the water cycle in the Chure and Tarai-Madhesh regions. The government also plans to introduce a support price for medicinal herbs and non-timber forest products, alongside establishing a herbal processing center in Karnali Province.

To combat carbon emissions, a results-based REDD+ program will be implemented, prioritizing local communities in benefiting from carbon finance. The budget further proposes facilitating private sector access to concessional capital from international climate funds. For enhanced disaster and environmental monitoring, the government will deploy drones and satellite systems to provide real-time information for forest fire control and implement a human-wildlife coexistence program in high-risk areas.