Development of natural capital accounts, data, tools, and analyses
In FY25, the collection of subnational biophysical forest data was completed. A national-level analysis examining household dependency on public forests and private trees, mediated by consumption expenditure, was also finalized, with recommendations for investments and policy.
The socioeconomic analysis of the Nepal Living Forest module underscored the critical role of non-timber forest products (NTFPs) from both public and private forests in supporting livelihoods, especially for poorer households, and highlighted that women are primarily responsible for NTFP collection. These findings emphasize the need for inclusive forest management practices that prioritize benefits for the most vulnerable groups. Notably, the analysis demonstrates that the greatest share of public forest users are the poorest households, thus reinforcing the importance of supporting both public forest management and private tree planting as complementary strategies for reducing pressure on public forests and enhancing livelihoods. The analysis stresses that greater social inclusion in these efforts is central to advancing the Government’s resilience and sustainability objectives.
Spatial analysis of forest types and condition across Nepal, including fragmentation levels using proxy indicators, was completed. The methodological note on the socioeconomic forest survey offers guidance for the National Statistics Office to embed GEPSI principles in future NLSS forest modules.
Informing investments and/or policies
Subnational forest data generated through GPS support is being utilized by Forest Research and Training Centre (FRTC) as critical input for implementing the MRV system for the Emissions Reduction Program in the Terai Arc Landscape. This data is also foundational for generating emissions statistics for national and subnational forest inventories and for mapping national forest cover, degradation, and deforestation. It is being integrated into decision support tools3, facilitating forest restoration planning and site selection. The comprehensive nature of this data enables the Government of Nepal to negotiate results-based climate agreements with high accuracy and supports the calculation of forest-based carbon credits across all regions, underpinning the nationwide implementation of forest-based incentives.
Socioeconomic insights from the National Life Standard Survey (NLSS-IV) forest module, including GEPSI-related findings, supported the benefit-sharing plan under the Emissions Reduction Program Agreement (ERPA). Forest extent and condition statistics now underpin the formula recommended under the National Natural Resources and Fiscal Commission Act (NNRF) for sharing forest royalties with provincial and municipal governments using the Federal Equalization Grant Policy, directly reflecting performance in forest management and dependency.
Furthermore, GPS-supported data and analytics informed the implementation of provincial forest regulations in Karnali and Madhesh, which promote training, employment, and equitable economic opportunities for women, indigenous peoples, and social communities through benefit-sharing mechanisms. These policy reforms were supported through several projects including the Green, Resilient, and Inclusive Development (GRID) programmatic Development Policy Credit (DPC) 2 (GRID DPC-2) and have influenced provincial governance.
In addition, the Poverty and Social Impact Analysis (PSIA) supported by the CIC activity evaluates the potential poverty and social effects of policy reforms supported by the Nepal GRID-DPC2 series. Insights from the socioeconomic household survey were instrumental in assessing the positive impacts of forest-related policy reforms under the DPC series. The results of these analytics were also highlighted in the new Nepal Country Partnership Framework (FY25–FY31), which guides the WBG’s strategic engagement in Nepal over the period.
Capacity Building and Institutionalization
Two capacity building activities were held in Nepal in FY25:
- A workshop chaired by the Secretary of the Ministry of Forests and Environment titled “Improving Data and Analytics for Sustainable Forest Management” was held to soft-launch the GPS-supported work in Nepal. About 70 participants with about 30 percent women attended the workshop which fostered collaboration and introduced innovative data approaches among key national stakeholders.
- A training-of-trainers program was conducted to equip forest officials and practitioners with the necessary skills to generate high-quality subnational forest data and effectively transfer this expertise within their organizations. These efforts have strengthened technical capacity, enhanced collaboration, and laid the groundwork for more effective, evidence-based forest management in Nepal. In total, 97 participants from different government and non-governmental organizations participated in the workshop and training events, including Ministry of Forests and Environment, Forest Research and Training Centre; ICIMOD; REDD Implementation Centre; Department of Forests and Soil Conservation; and forest experts and analysts from the regions such as Sudurpaschim Province; Gandaki Province; Bagmati Province; Karnali Province and Lumvini Province.
Communication
A short video was produced and released highlighting findings from the analysis on household dependency of public forests and trees on private land in Nepal.
