Tropical Forestry and Biodiversity (FAA 118 & 119) Assessment Report Nepal May 17, 2010 Team Members Bijay Kumar Singh Team Leader and Forestry Expert Tirtha Bahadur Shrestha Ph.D. Biodiversity Expert Shyam Upadhaya PES Expert Hom Mani Bhandari Soil and Watershed Expert Manish Shrestha GIS Expert Andrew Steele Editor With inputs and support from Netra Sharma (Sapkota), USAID/Nepal Disclaimer This assessment was produced for review by the United States Agency for International Development (USAID). The authors' views expressed in this publication do not necessarily reflect views of USAID or the United States Government. i Acknowledgements The study team leader would like to thank USAID/Nepal for giving us the opportunity to carry out this study. I would like to express special thanks to Dr. Bill Patterson, and the other professional staff at both USAID and the US Embassy who kindly provided cooperation and logistic support. Special thanks also go to Mr. Netra Sharma (Sapkota), Cognizant Technical Officer of USAID/Nepal for his inputs and whole-hearted support for the study. In addition I would like to thank Mr. Prakash Mathema, Mr. Govinda Prasad Kafley, Dr. Jagadish Chandra Baral, Mr. Krishna Acharya, Dr. Bhisma Subedi, and the many other government and non-government officials who directly and indirectly provided their intellectual input. I would like to express my sincere thanks to all of the team members who worked extremely hard in the preparation of this report. Bijay Kumar Singh Study Team Leader ii Abbreviations and Acronyms ACAP Annapurna Conservation Area Project ACOFUN Association of Collaborative Forest Users in Nepal ANSAB Asia Network for Sustainable Agriculture and Bioresources BCN Bird Conservation Nepal CA Conservation Area CBD Convention on Biological Diversity CBO Community-Based Organization CER Certified Emission Reduction CF Community Forestry CFD Community Forestry Division CFDP Community Forestry Development Project CFM Collaborative Forest Management CITES Convention on International Trade in Endangered Species CNP Chitwan National Park CO2 Carbon Dioxide COP Conference of Party CPA Comprehensive Peace Agreement CSP Country Strategic Plan DDC District Development Committee DFID Department for International Development (UK Government) DFO District Forest Officer DNPWC Department of National Parks and Wildlife Reserves DSCWM Department of Soil Conservation and Watershed Management FAA Foreign Assistance Act FCPF Forest Carbon Partnership Facility FECOFUN Federation of Community Forest Users Nepal Gg Gigagram GLOF Glacial Lake Outburst Flood ICIMOD International Center for Integrated Mountain Development IFAD International Fund for Agriculture Development ILO International Labor Organization INGO International Non-Governmental Organization IPCC International Panel on Climate Change IPR Intellectual Property Rights ITTA International Tropical Timber Agreement ITTO International Tropical Timber Organization IUCN World Conservation Union KGV Kali Gandaki Valley Km Kilometer LFP Livelihoods and Forestry Program LI-BIRD Local Initiatives for Biodiversity, Research and Development MAP Medicinal and Aromatic Plant MIS Management Information System MOEST Ministry of Environment, Science and Technology MOU Memorandum of Understanding MW Megawatt NBS Nepal Biodiversity Strategy NCSA National Capacity Needs Self-Assessment NEFEJ Nepal Forum of Environmental Journalists NEFUG Nepal Federation of Forest User Group NFA Nepal Foresters Association NGO Non-Governmental Organization NTFP Non-Timber Forest Product NTNC National Trust for Nature Conservation PES Payment for Environmental Service REDD Reducing Emissions on Deforestation and Forest Degradation R-PIN Readiness Plan Idea Note SAGUN Strengthened Actions for Governance in Utilization of Natural Resources SHL Sacred Himalayan Landscape SPA Seven Party Agreements iii TAL Terai Arc Landscape TRIPS Trade-Related Aspects of Intellectual Property Rights UNDP United Nations Development Program UNEP United Nations Environmental Program UNFCCC United National Framework Convention on Climate Change USAID United States Agency for International Development VDC Village Development Committee WECS Water Energy Commission Secretariat WTLCP Western Terai Landscape Complex Project WTO World Trade Organization WWF World Wildlife Fund iv Table of Contents Acknowledgements ...................................................................................................................... ii Abbreviations and Acronyms ....................................................................................................... iii Table of Contents ........................................................................................................................v 1.0 INTRODUCTION ........................................................................................................................ 1 1.1 Purpose ...................................................................................................................................... 1 1.2 Methodology ........................................................................................................................ 1 1.3 Organization of the Report ......................................................................................................... 1 2.0 STATUS OF TROPICAL FORESTS AND BIODIVERSITY ...................................................... 1 2.1 Ecosystem Diversity ................................................................................................................... 2 2.2 Nepal's Forests ........................................................................................................................... 4 2.2.1 Natural Forests .................................................................................................................... 5 2.2.2 Plantation Forests ................................................................................................................ 5 2.2.3 Non-Timber Forest Products (NTFPs) ................................................................................ 6 2.2.4 Forest Management ............................................................................................................. 6 2.3 Wetland, Lake and River Biodiversity ....................................................................................... 10 2.4 Species Diversity ....................................................................................................................... 10 2.5 Agro-biodiversity ...................................................................................................................... 13 2.6 Ecosystem/Environmental Services ......................................................................................... 14 2.7 Tropical Forest Management, Biodiversity and Climate Change ................................................ 16 3.0 SOCIAL, ECONOMIC AND POLITICAL CONTEXT ............................................................ 18 3.1 Social and Economic Environment .......................................................................................... 18 3.2 Institutions, Policies and Laws Affecting Conservation ............................................................. 19 3.2.1 Institutions, Policies and Laws in Forest Management ....................................................... 19 3.2.2 Institutions, Policies and Laws in Biodiversity Conservation .............................................. 20 4.0 RELEVANT GOVERNMENT, NGO AND DONOR PROGRAMMING .............................. 22 4.1 Government Institutions .......................................................................................................... 22 4.2. INGOs, NGOs and Educational Institutions .......................................................................... 22 4.5 Gaps and/or inconsistencies in tropical forest management ..................................................... 23 4.6 Gaps and/or inconsistencies in biodiversity conservation ......................................................... 24 5.0 THREATS TO TROPICAL FORESTS AND BIODIVERSITY ................................................ 24 5.1 Threats to Tropical Forests ....................................................................................................... 24 5.2 Threats to Biodiversity .............................................................................................................. 26 6.0 ACTION NEEDED TO CONSERVE TROPICAL FORESTS AND BIODIVERSITY .......... 28 6.1 Action Needed to Conserve Tropical Forests ........................................................................... 28 6.2 Action Needed to Conserve Biodiversity .................................................................................. 29 7.1 Review of Current Strategy ....................................................................................................... 37 7.2 Strategy Recommendation for Tropical Forestry and Biodiversity ............................................. 38 7.2.1 Proposed strategy for Tropical Forestry ............................................................................. 38 7.2.2 Proposed Strategy for Biodiversity Conservation ............................................................... 39 v Executive Summary The objectives of this assessment are to assess and determine: (i) the actions necessary to conserve and sustainably manage Nepal’s tropical forests; (ii) the extent to which the actions proposed for support by USAID meet