Nepal Explores Economic Gains from Carbon Trade

Kathmandu. Nepal has found a new way to convert its forest resources into economic benefits in mitigating the effects of global climate change – 'carbon trading'. This topic, which has also been given high priority in the upcoming fiscal year's budget, has sparked curiosity among many. What is carbon trading? How can Nepal earn foreign currency from it? How are the rights and interests of the local community protected in this? Here is an edited excerpt of the conversation held with Navraj Pudasaini, Joint Secretary at the Ministry of Forests and Environment and Chief of the REDD+ Implementation Center, in Ratopati's 'Economic Edit' , focusing on these contemporary and technical issues.

There is a lot of discussion about 'carbon trading' in Nepal recently. It has also been prioritized in the upcoming fiscal year's budget. In simple terms, what is carbon trading?