FEATURE STORYNovember 20, 2025

From Data to Action: Enabling Sustainable Forest Management in Nepal

Nepal Forest and community

Imagine a Nepal where every municipality, from the bustling streets of Kathmandu to the serene villages nestled in the Himalayas, has the power to manage its forests sustainably. Nepal is moving closer to this reality, thanks to groundbreaking efforts to develop refined biophysical forest data, empowering local governments, and unlocking opportunities to access climate finance.   

Our story begins with a challenge. For years, Nepal's forest data was limited to national and provincial levels, leaving a significant gap at the local level[1]. This lack of detailed information hindered effective forest management, especially in the context of federalism. Recognizing this critical need, the Ministry of Forests and Environment (MOFE) turned to the World Bank for support. The World Bank collaborated with two key partners, Forest Research and Training Centre (FRTC) and the International Centre for Integrated Mountain Development (ICIMOD), to lead the production of biophysical forest data representative at the municipality level [2]. 

This initiative mapped the biophysical extent and condition of forests across all 753 local levels in Nepal using advanced remote-sensing technology, field sampling methods, and extensive stakeholder consultations. 

This initiative mapped the biophysical extent and condition of forests across all 753 local levels in Nepal using advanced remote-sensing technology, field sampling methods, and extensive stakeholder consultations. 

This data, now publicly available and hosted by FRTC, is more than just numbers and maps. It is a powerful tool that tells the story of Nepal's forests, providing invaluable local-level insights for policymakers, development partners, and local communities.

What do the results tell us? 

Nepal has achieved a significant increase in forest cover in recent decades, contrary to the majority of developing countries.  In 2022, forest cover in Nepal stood at more than 46.8 percent. 693 out of 753 local levels have forest cover, and 416 local levels have more than 50 percent of its land covered by forests. But forest fragmentation and degradation remain concerns. Analyses point to relatively high levels of forest fragmentation in Bagmati, Sudurpaschim, and Karnali provinces. Average tree canopy cover (i.e., tree cover density) in Nepal decreased from 67 percent in 2018 to 64 percent in 2022. Similarly, average tree canopy height in Nepal decreased from 15.5 meters in 2018 to 14.7 meters in 2022. These results are highlighted in the World Bank report “May the Forest Be With You: Mapping Nepal’s Forest Landscapes and Livelihoods”.

Map of Nepal
Forest cover in Nepal by forest type, 2022 . Source: FRTC (2025)

Putting the data into use: Enabling sustainable forest management

The impact of this data is far-reaching. Provincial and local governments can now develop sustainable land use and forest management plans tailored to their unique landscapes. This localized approach ensures that forest resources are conserved and utilized effectively, benefiting both the environment and the communities that depend on them. Fiscal transfers in the forest sector are also set to become more effective. By using biophysical data to guide resource allocation, funds can be directed to areas with the greatest need and potential for sustainable management. The use cases don't end there.

The data also plays a crucial role in monitoring, reporting, and verifying (MRV) forest-based carbon.

The data also plays a crucial role in monitoring, reporting, and verifying (MRV) forest-based carbon. This unlocks opportunities for Nepal to access climate financing including grants, concessional loans, private sector investments, adaptation finance, green bonds, and other instruments supporting forest conservation efforts and contributing to global climate goals. It's a win-win for Nepal and the planet.

The path ahead

As we reflect on Nepal’s remarkable achievement of increasing its forest cover to over 46 percent, challenges persist. Road construction and improved accessibility to remote areas can lead to overextraction, weakening the ability of forests to provide essential ecosystem services such as biodiversity, erosion control, and production. To navigate these challenges, Nepal must continue to produce detailed forest data to support evidence-based decision-making and sustainable forest management across all levels of government. Ongoing efforts by FRTC supported by the World Bank, such as the development of biomass allometric equations for key tree species, aim to fill knowledge gaps on the biophysical state of forests and enhance forest condition monitoring, providing a solid foundation for future forest-related decisions.

Nepal must continue to produce detailed forest data to support evidence-based decision-making and sustainable forest management across all levels of government. 

However, there are still important things we don’t know about forests. Having more detailed information about the condition of forests would help stakeholders make better decisions about how to manage them. It’s also important to balance both biophysical and socioeconomic considerations to achieve multiple objectives from forest management. Cadastral maps that show who manages different parts of the forest—such as community forest user groups or private owners—would help us study how different ways of managing forests affect things like how much forest there is, how healthy it is, and how people’s livelihoods are connected to the forest.

By continuing to bridge these data gaps and generate useful insights from data, Nepal can better manage its forests to improve local economies, enhance climate resilience, and maintain healthy ecosystems. 

Blogs

    loader image

WHAT'S NEW

    loader image