Institution and scale of ecosystem service governance in Nepal A case of Kulekhani Area 1. Navaraj Pokharel Prince of Songkla University Faculty of Environment and Energy , Thailand 2. Yogendra Raj Rijal Ph D. Parbat, Nepal Abstract New actors with different agendas and ideas are now emerging and playing important role in decision-making about ecosystem service governance. Network types of governance has been practicing in all sectors including in conservation. Awareness about key ideas of environmental governance or protection and use of natural resources among local people is the important concern today. Nepal's efforts in ecosystem service governance in the last three decades are noteworthy but the results are far from satisfaction. Coordination among various actors is the main problem in ES governance. Due to the lack of locally elected representative in Local Bodies (LBs) since before 15 years, coordination among actors and taking decision with strategic vision has some problems. Duplication in the use of resources is high, controlling and monitoring system is weak. Institutions are weaken and no more attention is given to rural people who are traditionally depend on natural resources for their livelihoods. This paper tries to explore the key environmental governance issues relevant to the conservation with specific reference to institutional fit and scale. Key Words : ecosystem services, Kulekhaani, Watershed, Nepal etc. 1. Introduction Ecosystem service governance is one of the major crosscuttings in contemporary development agenda. Significant efforts have been taken by the state and non-state actors to protect environmental elements in the world today. However, ecosystem services are becoming increasingly threatened globally.This trend is partially due to the lack of appreciation of their value. Resources that are not valued are often ignored in decision-making. Thus, people who are heavily depended to natural resources for their livelihoods are affected adversely all over the world. 'Governance' is about the process, norms, and traditions by which decisions on the public policies are made and implemented (Dahal, 2005). It is the result of action, reaction, interactions, and relationships, between the different sectors and actors (government, public sector, private sectors, and civil society).The relationships between government and different sectors determine how things are done, and how services are provided. Governance is, therefore, much more than government and shapes the way of providing services or set of services that are planned, managed, and regulated within a political, socio-economical, and environmental system. Whereasenvironmental governance is the broader process and institution through which societies are make decision that effect the environment and their livelihood. Thus, environmental governance or ecosystem service governance is a subset of the broader governance. 1 Benefits, obtain from ecosystems are defined as ecosystem services (Costanza & Liu 2014). Direct services to human beings and other living creatures such as food, water, air, medicinal plants; and indirect services such as air quality regulation, water purification, soil formation, and many others are possible only from ecosystem. Global consensus in the importance of biological diversity and its conservation has been developed in various forms as an important segments of governance and endorsed globally in numerous legal documents. Many ethnic groups and endangered nationalities are fully rely in nature. Special strategies are forming and implementing by considering such dynamics and diversities.But, peoples now are increasingly depended towards commercial products. Rapid urbanization responsible in some extend in reducing the appreciation of importance of nature and natural resources. And thus, valuation of ecosystem services is becoming one of the fastest growing areas of development intervention.The United States is dominated by private property regimes but China is dominated by state ownership. While Nepal has practicing both types. Implications of ecosystem services is the main thing rather than what types of regimes are practicing in conservation and deliver ecosystem services to the people residing in a particular area. Market economy encourages government to turn resources over to the private sector. Lee (1987) and Costanza (1998) observed several problems in the management and conservation of natural resources. According to them mismatches between institutions which are responsible for manage them. Individual behaviors are inconsistent in the long-run with the global interest of the individual and society (Costanza, 1987). Multilevel approach in some extend in the world is adopted with the involvement of multi stakeholders to regulate services. Due to the lack of effective coordination among actors, multi-level approach is potentially high costs (Hooghe & Marks 2003). For this, Ruhl et al. (2007) suggest that a cure for the coordination problem is the development of appropriate institutions for coordination of ecosystem services and natural resources. The Environmental Policy and Action Plan 1993of Nepal aims to manage natural resources efficiently, effectively, and sustainably;balance development efforts and environmental conservation for sustainable fulfilment of people's basic needs;safeguard national heritage; mitigate the adverse environmental impacts of development activities. After the declaration of"Environmental Policy and Action Plan 1993", Nepal has recognizing the value of protecting its natural resources. The provision of newly enacted, Constitution of Nepal 2015 is seems promising regarding to clean environment: "Each person shall have the right to live in a healthy and clean environment". The victim of environmental pollution and degradation shall have the right to be compensated by the pollutant as provided for by law (article 30)". Similarly, The State shall pursue the policy regarding the conservation, management and use of natural resources: "The State shall pursue a policy of conserving the natural resources available in the country by imbibing the norms of inter-generation judicious use of it and for the national interest. It shall also be about its sustainable use in an environmental friendly way. The policy shall ensure the fair distribution of the benefits generated by it by giving local people the priority and preferential rights… (article 51)". 2 Nepal is a signatory or party of various environment-related conventions and is obligated to fulfil its commitments at national and global levels. Seriousness of its commitments to these conventions has been demonstrated over the past 10-15 years.Various efforts so far have been made by government of Nepal but results are not satisfactory. Along with this above stated situation, answer of the following questions are tried to explore: What is the position of ecosystem service governance in Nepal? What are the main constraints and challenges for effective governance of ecosystem services? 2. Study area and methodology This study is mainly based on qualitative and an empirical study. It is a fact-finding operation or searching for adequate information about ecosystem service governance and it was conducted with the use of simplemethod. Kulekhani watershed area of Makwanpur district of Nepal was selected for this study. It is lies in the 40 KM north of Makwanpur district or south west part of capital city. The rationale for selecting this site is the operation of Kulekhani Hydro Electricity Project one of the largest hydro power projects of Nepal lies in this area. This project was completed before 33 years by making dam in Kulekhani stream. 4 KM long lake was made in this river which is called "Indra Sarobar". 69 MW electricity is producing mainly in dry season from this projects. One municipality and 9 VDCs are considered as the mostly affected area of this project: Bhainse, Bhimfedi and Nibuwatar are lies in production, Kulekhani and Sisneri are in downstream and Markhu, Fakhel, Chitlang, Tistung and Thaha Municipality are lies in upper stream.Around 70,000 people resides in this area and majority of them are from Janajati (Tamang) community. 2.1 Methods Simple structured questionnaire (annex three) were used to generate fresh information from local people. Qualitative method is used more, rather than quantitative method as per the nature of the study.10grass roots level government bodies (9 VDCs and 1 municipality) were consulted to obtain fresh information. Thus, the unit of the study at the micro level were the VDCs and municipality. But discussion was also held in District Development Committee to shape the study. Similarly, people's observation regarding the ecosystem services receiving from this area and role of concerning authorities and actors were also acquired.Secondary dataare also used for conceptual clearance and shaping the primary information. The major source of secondary information comprising relevant literature/documents published or unpublished books, LBs reports, research reports, seminar papers, academic and professional journals, newspapers, and news magazines were studied and analysed. 3 Similarly, standardized checklist(annex four) was framed and used to obtain information from various institutions (local bodies, Nepal Electricity Authority, private sectors etc.) and completed through interviewing the sampled institutions. Likewise, an informal and formal talk and consultation was done with the agencies/stakeholders or local