Development of Natural Capital Accounts, Data, Tools, and Analyses
Remarkable progress has been made in the compilation of data for the socioeconomic and biophysical forest data sets in FY24. The nationally representative socioeconomic forest data compilation (which was done in parallel with the Fourth Nepal Living Standards Survey) has been completed, and the data will be published and made publicly available by the Nepal National Statistics Office in FY25. This data set is informs a report which aims to provide valuable insights into the relationship between households and public forests and private trees, mediated by consumption expenditure. The report will be completed in FY25.
In parallel, progress has been made in compiling the biophysical forest data. Using remote-sensing data and ground-truthing techniques, the draft data set has been completed. The data will be finalized, published, and made publicly availableby the Forest Research and Training Center in FY25. Similarly, this data set will be the basis of a report on the spatial distribution of forests by forest type and analysis of forest fragmentation at the level of municipality. The report is also scheduled to be completed in FY25.
Informing Investments and/or Policies
GPS-supported activities played a key role in informing two World Bank lending projects in FY24, namely Forests for Prosperity andEnABLE. In the Forests for Prosperity project, the GPS work supported implementation by providing analytical inputs to design additional and restructure existing interventions. The GPS-supported socioeconomic analysis on forests made a compelling case for supporting afforestation and tree planting on private and public land to support livelihoods. The analysis found that 37 percent of Nepali households accessed public forests mostly to collect firewood, grass, and leaf litter, with the largest share of public forest users being the poorest. This suggested that efforts to strengthen community forestry initiatives would benefit the poor. Importantly, 48 percent of Nepali households had private trees for non-timber forest products, with the incidence of private tree ownership uniformly distributed across richer and poorer households. This suggests that supporting private tree planting may enhance the livelihoods of all rural households and reduce pressure on publicly managed forests.
These insights were used to expand tree planting to private lands under the Forests for Prosperity lending project. GPS-supported analytics provided inputs to the design of the EnABLE project, identifying ways in which indigenous people, women, and minorities could be supported to share in the benefits derived from forest improvements.
The analysis showed that a higher proportion of community forest users belong to the poorest households and that community forests held relatively greater importance for the livelihoods of the poor. These insights have informed the 2022 Forest Regulation, which now includes special provisions for poor and female-headed households seeking access to community forests. The analytics also showed that private trees are important for the livelihoods of all households, especially in rural areas. The 2022 Forest Regulation now classifies forest products from private trees as agroforestry products to remove barriers in the movement of these products and support incomes and livelihoods. These policy changes ensure greater equity and inclusivity in forest management practices. Furthermore, the subnational biophysical forest data, which is being collected through GPS supported activities, will support the implementation of the Federal Equalization Grant Policy under the National Natural Resources and Fiscal Commission Act. In FY24, draft data sets were produced in close collaboration with the Forest Research and Training Center, which is mandated to provide this data to the Commission.
Capacity Building and Institutionalization
To deepen the understanding of poverty and environmental statistics among government officials, two training sessions were conducted in Bangkok and Washington, DC, in FY24. These sessions brought together participants from relevant government agencies such as the National Statistics Office, Forest Research and Training Center, and Ministry of Forests and Environment.
Additionally, three workshops focused on engaging stakeholders at the local level and gathering valuable inputs regarding biophysical forest indicators were organized in the provinces of Lumbini, Madhesh, and Koshi. This participatory approach ensured that the data produced reflect the perspectives and priorities of the local communities, promoting inclusivity and ownership in the decision-making process. The data production efforts supported by the Nepal CIC program are led by the National Statistics Office and Forest Research and Training Center, ensuring that the government takes ownership of the process. The GPS team collaborates with other key partner agencies including the Ministry of Forestry and Environment, REDD Implementation Centre, divisional and district forest offices, forest directorates, provincial forest ministries, and rural municipalities.
Communication
On November 14, 2023, a seminar was organized to showcase the findings and share experiences from implementing the Nepal CIC activities. This seminar served as a platform to disseminate the knowledge and insights gained through the program. The event provided an opportunity for stakeholders, experts, and interested parties to engage in discussions and learn from the experiences shared during the seminar. Nepali delegates played an active role in the GPS Global Policy Forum held in Rwanda. They participated in various activities, including engaging in panel discussions, displaying posters, and delivering presentations. Participating in this Forum allowed them to share their expertise and experiences as well as network with participants from other countries.
The CIC workshop held with the GPS Global Policy Forum further facilitated dialogue and collaboration among key stakeholders. The workshop provided a focused space for sharing experiences, best practices, and lessons from the Nepal CIC program, fostering cross-learning and the exchange of innovative ideas.
