Nepal holds massive potential for carbon credits with 46% forest cover, 83,000 MW of hydropower potential, and a 100% renewable grid. Yet the country has captured barely 0.02% of the carbon market revenue it could earn. Corporate demand for verified credits surged 227% in 2025, but Nepal lacks the legal framework, institutional capacity, and community awareness to supply them at scale. The country's LDC status, which makes project registration faster and cheaper, expires in November 2026 unless an extension is granted. Without a dedicated Carbon Market Office and clear investment channels, Nepal risks losing a critical window to monetize its natural assets. The article lays out what needs to change: clearer laws, better institutions, and community education so that the people protecting forests actually see a return.
