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Government of Nepal Ministry of Forests and Soil Conservation

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Government of Nepal Ministry of Forests and Soil Conservation Forest Investment Program: Investment Plan for Nepal Contents Abbreviations ............................................................................................................................. ii List of Tables ............................................................................................................................ iv List of Figures ............................................................................................................................ v Executive Summary ................................................................................................................... 1 Section 1 Description of the Country and Sector Context ......................................................... 7 Section 2 Identification of Opportunities for Greenhouse Gas Abatement ............................. 15 Section 3 Enabling Policy and Regulatory Environment ........................................................ 20 Section 4 Identification and Rationale for Projects and Programs to be Co-financed by FIP . 25 Section 5 Collaboration with Development Partners ............................................................... 45 Section 6 Expected Co-Benefits from FIP Investment ............................................................ 48 Section 7 Implementation Potential with Risk Assessment ..................................................... 51 Section 8 Financing Plan and Instruments ............................................................................... 55 Section 9 Results Framework for Investment Plan .................................................................. 59 Annex 1: The Proposed Program and Project .......................................................................... 66 Annex 2: Stakeholder involvement plan ................................................................................. 91 Annex 3: Dedicated Grant Mechanism for Indigenous Peoples: Funding and Implementation Plan .......................................................................................................................................... 99 Annex 4: Summary of Nepal’s draft REDD+ Strategy ......................................................... 105 Annex 5: Comments by expert reviewers on Nepal’s FIP-IP and response to the commments from REDD IC, Govt of Nepal .............................................................................................. 110 Annex 6: FIP steering committee members………………………………………………...141 Annex 7: Experts of the consulting team involved in designig the investment plan……….142 i Forest Investment Program: Investment Plan for Nepal Abbreviations ACOFUN Association of Collaborative Forest User Groups of N BISEP-ST Biodiversity Support Programme for Shiwaliks and Terai BZ-FUG Buffer Zone Forest User Group CBD Convention on Biodiversity CBFM Community based forest management CBO Community Based Organisation CBS Central Bureau of Statistics CC Climate Change CF Community forest CFM Collaborative forest management CFUG Community forest user group CIAA Commission for Investigation of Abuse of Authority CIF Climate Investment Fund CSO Civil society organisation DANAR Dalit Association for Natural Resources DFID Department for International Development (UK) DFO District Forest Officer/Office DFRS Department of Forest Research and Survey DGM Dedicated Grant Mechanism DNPWC Department of National Parks and Wildlife Conservation DoF Department of Forest EIA Environmental impact assessment ENLIFT Enhancing livelihoods and food security from agroforestry and community forestry in Nepal ERPD Emissions reduction program document ESMF Environmental and Social Management Framework FAO Food and Agriculture Organisation of the United Nations FCPF Forest carbon partrnership facility FCTF Forest Carbon Trust Fund FECOFUN Federation of Community Forest User Groups of Nepal FIP-IP Forest investment program - investment plan FPIC Free, prior and informed consent FUG Forest Users Group GCF Green Climate Fund GDP Gross domestic product GESI Gender, Equity and Social Inclusion GIZ German Development Agency GoN Government of Nepal HDI Human development index HIMAWANTI- Himalayan grassroots women’s natural resource management association of Nepal Nepal IFC International Finance Corporation IP Indigenous People IPO Indigenous Peoples’ Organisation IUCN International Union for Conservation of Nature LAPA Local Adaptation Plan of Action LFP Livelihoods and Forestry Programme LHF Leasehold forest management MDB Multi-lateral Development Bank MoF Ministy of Finance ii Forest Investment Program: Investment Plan for Nepal MoFSC Ministry of Forests and Soil Conservation MoPE Ministry of Population and Environment MoSTE Ministry of Science and Technology MRV Measurement, Reporting and Verification MSFP Multi-Stakeholder Forestry Programme NDC Nationally Determined Contribution NEFIN Nepal Federation of Indigenous Nationalities NFA Nepal Foresters Association NGO Non-governmental organisation NPC National Planning Commission NSCFP Nepal Swiss Community Forestry Project NTFP Non-timber forest product NTNC Nepal Trust For Nature Conservation NVC National Vigilance Centre PAM Policies and Measures PES Payment for ecosystem services REDD Reducing emissions from deforestation and forest degradation REDD IC REDD implementation centre SDC Swiss Development Cooperation SDG Sustainable Development Goal SESA Strategic Environmental and Social Assessment SFM Sustainable forest management TAL Terai Arc Landscape TTL Task Team Leader UNFCCC United Nations Framework Convention on Climate Change UN-REDD United Nations programme on REDD USD US dollar W+ standard Standard developed by WOCAN for projects that create increased social and economic benefits for women WB World Bank WWF World Wide Fund for Nature iii Forest Investment Program: Investment Plan for Nepal List of Tables Table 1: Direct drivers, priorities, affected regions and their underlying causes .................. 11 Table 2: Nepal draft REDD+ Strategy (2016): 12 Key Strategies for Emissions Reduction .. 14 Table 3: Draft REDD+ Strategy (2016): List of proposed actions ......................................... 16 Table 4: Newly created opportunities for Nepal’s forestry sector stakeholders ..................... 20 Table 5: Objectives and priority programmes of Nepal's 14th Periodic Plan ........................ 22 Table 6: Summary of five proposed investments...................................................................... 25 Table 7: FIP Investment Program: Transformative Outcomes ............................................... 28 Table 8: Main transformative effects of five proposed investment projects ............................ 29 Table 9: Linkages between Nepal’s Forest Policy 2015 and 5 proposed FIP investments ..... 32 Table 10: Potential FIP-IP collaborators ............................................................................... 46 Table 11: FIP-IP investments derived from earlier successful pilots...................................... 46 Table 12: FIP-IP Co-benefits and outcomes ........................................................................... 49 Table 13: Implementation risks and mitigation measures for FIP-IP ..................................... 52 Table 14: FIP-IP Estimated costs (USD) ................................................................................ 57 Table 15: FIP-IP Finance Plan (USD) .................................................................................... 57 Table 16: Logic Model for FIP-IP ........................................................................................... 60 Table 17: Country level results framework for FIP-IP ........................................................... 61 Table 18: Summary of proposed investment projects .............................................................. 67 Table 19: FIP Investment Projects - Indicative project preparation timetable. ...................... 89 Table 20: Consultation participants by gender and ethnicity ................................................. 92 Table 21: Consultation participants by occupation/stakeholder category .............................. 92 Table 22: Key Stakeholders and rightholders for the five proposed investment projects ....... 97 Table 23: Indicative activities under DGM ........................................................................... 103 Table 24: Draft REDD+ Strategy (2016): Summary of Strategies and Actions ................... 106 iv Forest Investment Program: Investment Plan for Nepal List of Figures Figure 1: Nepal's new administrative structure and ecological regions ..................................... 8 Figure 2: Nepal's Forest Cover .................................................................................................. 9 Figure 3: Locations of Proposed Projects ................................................................................ 26 Figure 4: Estimated CO2 emission reductions/capture (tonnes CO2e) by proposed investment projects over 8 years ................................................................................................................ 27 Figure 5: Estimated employment days generated by proposed investment projects over 8 years ......................................................................................................................................... 27 Figure 6: Households directly benefiting from investment projects over 8 years ................... 27 Figure 7: Nepal's FIP-IP Contributes Directly to 9 out
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