The Nepali government has earmarked Rs12.31 billion for the forestry, environment, and climate change sector for the 2026-27 fiscal year. Key initiatives include the issuance of green energy and diaspora bonds to fund sustainable development and the implementation of a results-based REDD+ program to lower carbon emissions. Beyond carbon finance, the budget focuses on water source conservation in the Chure and Tarai-Madhesh regions and the use of drones and satellites for real-time forest fire monitoring. The government also aims to expand private sector access to international concessional climate finance.
