The world wants carbon credits. Nepal has them

The global market for carbon credits faces a critical shortage of high-integrity, nature-based emission reductions, despite surging corporate demand. Nepal, with its minimal historical emissions and commitment to climate goals, is uniquely positioned to capitalize on this demand. Nepal's forests cover nearly half its land, a success story in community forest management. The country also runs on 100 percent renewable electricity and has vast hydropower potential. These factors, combined with a lack of industrialization, mean Nepal has contributed little to global emissions. Buyers seeking credible carbon credits are increasingly looking towards such nations. However, Nepal has only captured a tiny fraction of potential revenue from carbon markets. To meet its Paris Agreement pledge of net-zero emissions by 2045, Nepal requires substantial climate finance. Carbon markets offer a direct mechanism to achieve this. The absence of clear laws and investment channels has historically hampered Nepal's ability to trade carbon credits effectively. Until recently, carbon trading was only recognized under the expired Kyoto Protocol, leaving private developers in legal limbo for years. The recent Carbon Trading Regulation, 2082, marks a significant step, establishing Nepal's first legal framework for carbon trading. This signals a governmental recognition of carbon as a viable economic sector, potentially unlocking substantial revenue and aiding the country in meeting its climate finance goals.

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The shortage is in credible supply.