DEVELOPMENT OF NATURAL CAPITAL ACCOUNTS, DATA, TOOLS, AND ANALYSES
In FY25, 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 NTFPs from 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. The analysis demonstrates that the greatest share of public forest users are the poorest households, reinforcing the importance of supporting public forest management and private tree planting as complementary strategies for reducing pressure on public forests and enhancing livelihoods. The analysis accounted for out-migration dynamics, finding that while out- migration reduces local pressure on community forests, it also constrains household labor supply for forest product collection, reinforcing the complementary benefits of private tree planting in reducing both community forest pressure and household labor demands. The analysis revealed that greater social inclusion in these efforts is central to advancing the government’s resilience and sustainability objectives.
Geographic analysis of forest types and conditions 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 National Life Standard Survey forest modules.
INFORMING INVESTMENTS AND POLICIES
The Forest Research and Training Centre is using subnational forest data generated through GPS support as critical input for implementing the MRV system for the Emissions Reduction Program in the Terai Arc Landscape. These data are also foundational for generating emissions statistics for national and subnational forest inventories and for mapping national forest cover, degradation, and deforestation. They are being integrated into decision support tools, facilitating forest restoration planning and site selection. The comprehensive nature of these data enables the government to negotiate results-based climate agreements with high data accuracy and supports calculation of forest-based carbon credits across all regions, underpinning nationwide implementation of forest-based incentives.
Socioeconomic insights from the National Life Standard Survey forest module, including GEPSI- related findings, supported the benefit-sharing plan under the Emissions Reduction Program Agreement. Forest extent and condition statistics now underpin the formula recommended under the National Natural Resources and Fiscal Commission Act for sharing forest royalties with provincial and municipal governments using the Federal Equalization Grant Policy, directly reflecting performance in forest management and dependency. GPS-supported data and analytics informed 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 GRID DPC2, and have influenced provincial governance.
The poverty and social impact analysis that the CIC activity supports evaluates potential poverty and social effects of policy reforms that the Nepal GRID DPC2 series supports. Insights from the socioeconomic household survey were instrumental in assessing the benefits of forest- related policy reforms under the DPC series. The results of these analytics were also highlighted in the new Nepal Country Partnership Framework (FY25–31), 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 that the Secretary of the Ministry of Forests and Environment chaired, Improving Data and Analytics for Sustainable Forest Management, was held to soft launch the GPS-supported work in Nepal. Approximately 70 participants (~30 percent women) attended the workshop, which fostered collaboration and introduced innovative data approaches to key national stakeholders. A train-the-trainer program was conducted to equip forest officials and practitioners with the skills to generate high-quality subnational forest data and transfer this expertise within their organizations. These efforts have increased technical capacity and collaboration and laid the groundwork for more- effective, evidence-based forest management.
Ninety-seven participants from various government and nongovernmental organizations participated in the workshop and training events, including the Ministry of Forests and Environment, Forest Research and Training Centre, International Centre for Integrated Mountain Development, REDD Implementation Centre, Department of Forests and Soil Conservation, and forest experts and analysts from the regions, such as Sudurpaschim, Gandaki, Bagmati, Karnali, and Lumvini provinces.
COMMUNICATION
A short video highlighting findings from the analysis of household dependency on public forests and trees on private land in Nepal was produced and released.
