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High-level information on Article 6 cooperation and activities for Nepal.

Last updated 4 December 2025
Total Emissions 53.4 million tCO2e
Emissions per capita 1.80 tCO2e per person
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Article 6.4 | Paris Agreement crediting mechanism (PACM)

Transitioning CDM activities and newly proposed projects and programmes with prior consideration notifications in Nepal.

VIEW BY Activities Planned Mitigation
Designated National Authority: Ministry of Forest and Environment
Participation Requirements: Submitted on 11 February 2025

Sector / Activity type

Activities and how they address emissions across sectors in Nepal.

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Host/Buyer Hosted in Supported by
PACM Article 6.2
All activities
All registered (thereof with issuances)
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CDM transition
Transition requested Approved Registered
All activities Registered Part of a cooperative approach With authorized mitigation With ITMOs
Energy
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AFOLU
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VIEW BY Number of activities Planned Mitigation (tCO2e/year) A6.4ERs ITMOs
INDIVIDUAL ACTIVITIES
All activities by project category and expected annual mitigation.
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Activity type Active transport/mobility Afforestation and tree planting Biochar Bioenergy Building efficiency Carbon Removal and Storage Chemical processes Cleaner cooking Efficient appliances Electric vehicles Energy storage Forest management and avoided deforestation Fossil fuel/feedstock switch Freight transport Fugitive emissions Geothermal Green hydrogen & green ammonia Grid/energy supply efficiency Hydropower Improved cropland management Industrial efficiency Landfill gas Livestock management Mixed renewables Public transport Reforestation and ecosystem restoration Solar energy Source Carbon Capture Space heating and cooling Waste energy recovery Waste management Wastewater treatment Water purification and water supply Wind
GHG CO2 CH4 N2O F-gas
Reductions/Removals Reductions Removals
Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
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National targets

Article 6 cooperation should help to achieve the goals of the Paris Agreement. To limit global temperature increase to 1.5 degrees, transfers between countries need to happen in the context of comprehensive and ambitious national commitments.

Nationally Determined Contribution (NDC) Builds on analysis by Climate Watch
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2030 and 2035 (Third NDC)

Sustainable development

The impact from activities implemented under Article 6 is not limited to addressing climate change. Projects can come with significant co-benefits across other sustainability dimensions – but also significant risks to people and environment.

Intended Contribution to Sustainable Development Goals

as outlined in India’s Participation Requirements for the Paris Agreement Crediting Mechanism.

“Nepal’s participation in the Article 6.4 mechanism offers a transformative pathway to enhance sustainable development while recognizing that sustainable development is a national prerogative. By leveraging the mechanism under the Paris Agreement, Nepal can pursue climate actions that align with its national priorities, ensuring that mitigation efforts are intertwined with economic, social, and environmental development goals. [...]”

End poverty in all its forms everywhere
No direct reference to this SDG
Goal 1 | Nepal | SDG Indicators

End hunger, achieve food security and improved nutrition and promote sustainable agriculture
No direct reference to this SDG
Goal 2 | Nepal | SDG Indicators

Ensure healthy lives and promote well-being for all at all ages
No direct reference to this SDG
Goal 3 | Nepal | SDG Indicators

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
No direct reference to this SDG
Goal 4 | Nepal | SDG Indicators

Achieve gender equality and empower all women and girls
No direct reference to this SDG
Goal 5 | Nepal | SDG Indicators

Ensure availability and sustainable management of water and sanitation for all
No direct reference to this SDG
Goal 6 | Nepal | SDG Indicators

Ensure access to affordable, reliable, sustainable and modern energy for all
“[...] Participation in the Article 6.4 mechanism facilitates access to international carbon markets, attracting green investments into sectors such as renewable energy, waste management, and forestry. [...] projects implemented under this mechanism often prioritize the inclusion of vulnerable groups, including women and marginalized communities. For instance, improved cookstove initiatives or community-based forestry programs enhance livelihoods and reduce energy poverty, ensuring inclusive development. [...]”
Goal 7 | Nepal | SDG Indicators

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
“[...] Participation in the Article 6.4 mechanism facilitates access to international carbon markets, attracting green investments into sectors such as renewable energy, waste management, and forestry. These projects not only reduce emissions but also create jobs, promote local enterprises, and spur technological innovation. [...]”
Goal 8 | Nepal | SDG Indicators

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
No direct reference to this SDG
Goal 9 | Nepal | SDG Indicators

Reduce inequality within and among countries
“[...] Projects implemented under this mechanism often prioritize the inclusion of vulnerable groups, including women and marginalized communities. For instance, improved cookstove initiatives or community-based forestry programs enhance livelihoods and reduce energy poverty, ensuring inclusive development. [...]”
Goal 10 | Nepal | SDG Indicators

Make cities and human settlements inclusive, safe, resilient and sustainable
No direct reference to this SDG
Goal 11 | Nepal | SDG Indicators

Ensure sustainable consumption and production patterns
No direct reference to this SDG
Goal 12 | Nepal | SDG Indicators

Take urgent action to combat climate change and its impacts
No direct reference to this SDG
Goal 13 | Nepal | SDG Indicators

Conserve and sustainably use the oceans, seas and marine resources for sustainable development
No direct reference to this SDG
Goal 14 | Nepal | SDG Indicators

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
“[...] Participation in the Article 6.4 mechanism facilitates access to international carbon markets, attracting green investments into sectors such as renewable energy, waste management, and forestry. These projects not only reduce emissions but also create jobs, promote local enterprises, and spur technological innovation. [...] Projects implemented under this mechanism often prioritize the inclusion of vulnerable groups, including women and marginalized communities. For instance, improved cookstove initiatives or community-based forestry programs enhance livelihoods and reduce energy poverty, ensuring inclusive development. [...] Many projects focus on enhancing ecosystem resilience and biodiversity. Reforestation, afforestation, and sustainable land-use projects contribute to carbon sequestration, while also addressing issues like soil erosion and water scarcity. [...]”
Goal 15 | Nepal | SDG Indicators

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
No direct reference to this SDG
Goal 16 | Nepal | SDG Indicators

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
“[...] Engaging with the Article 6.4 mechanism provides Nepal with access to international expertise and technologies. This enhances institutional capacities for measuring, reporting, and verifying emission reductions while ensuring compliance with high environmental integrity standards. [...]”
Goal 17 | Nepal | SDG Indicators
Sustainable development tool

The Article 6.4 sustainable development tool aims to ensure that PACM activities "do no harm" and contribute to achieving the Sustainable Development Goals. Project proponents are required to identify potential impacts - both positive and negative - and show how social and environmental risks are addressed.

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Sector Energy Buildings Transport Industry AFOLU Waste
Subsector Fugitive emissions Electricity and heat Other fuel use
Subsector Manufacturing and construction Industrial processes and product use
Subsector Agriculture Land use change and forestry
Activity type Active transport/mobility Afforestation and tree planting Biochar Bioenergy Building efficiency Carbon Removal and Storage Chemical processes Cleaner cooking Efficient appliances Electric vehicles Energy storage Forest management and avoided deforestation Fossil fuel/feedstock switch Freight transport Fugitive emissions Geothermal Green hydrogen & green ammonia Grid/energy supply efficiency Hydropower Improved cropland management Industrial efficiency Landfill gas Livestock management Mixed renewables Public transport Reforestation and ecosystem restoration Solar energy Source Carbon Capture Space heating and cooling Waste energy recovery Waste management Wastewater treatment Water purification and water supply Wind
Sustainable development impacts

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IDENTIFIED RISKS
Sustainable development in cooperative approaches

as outlined in submitted Initial Reports.

Capacity building

Projects and initiatives to build Article 6 capacities that involve Nepal.

Projects & Initiatives
From 2024 — ongoing
Carbon Transaction Facility
Implemented in:

Dominican Republic Morocco Paraguay Senegal Côte d’Ivoire Rwanda Sri Lanka Jordan Nepal Indonesia Switzerland

Funded by:

New Zealand Norway Sweden

The Carbon Transaction Facility (CTF) is GGGI’s solution to the challenges that face countries seeking to participate in cooperative approaches under Article 6, and to scaling up international carbon trading. The CTF, launched in October 2024, aims to accelerate global GHG emission reductions by catalyzing carbon trading under Article 6. The CTF structure has two main pillars: the Article 6 Readiness Facility on one side, and a number of multiple ITMO-purchasing carbon funds on the other. The Article 6 Readiness Facility is a multi-donor fund improving host country readiness through technical assistance and capacity building. The Carbon Funds, on the other hand, are a series of individual funds for initiating Article 6 carbon transactions and purchasing Article 6 carbon credits (ITMOs).

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From 2019 — ongoing
Mobilizing Article 6 Trading Structures (MATS)
Implemented in:

Cambodia Lao People's Democratic Republic Nepal

Funded by:

Sweden

The MATS project is aimed at establishing Article 6 Activities under the Paris Agreement. The objective of this joint collaboration is to catalyze international trading of mitigation outcomes in support of the increased climate ambitions needed under the Paris Agreement.

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From 2016 — ongoing
Capacity-Building Initiative for Transparency - Global Support Program (CBIT-GSP)
Implemented in:

Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Azerbaijan Bahamas Bahrain Bangladesh Barbados Belize Benin Bhutan Bolivia (Plurinational State of) Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Burkina Faso Burundi Cabo Verde Cambodia Cameroon Central African Republic Chad Chile China Colombia Comoros Congo Democratic Republic of the Congo Cook Islands Costa Rica Côte d’Ivoire Cuba Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Eswatini Ethiopia Fiji Gabon Gambia Georgia Ghana Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Honduras India Indonesia Iran (Islamic Republic of) Iraq Israel Jamaica Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Lao People's Democratic Republic Lebanon Lesotho Liberia Libya Madagascar Malawi Malaysia Maldives Mali Marshall Islands Mauritania Mauritius Mexico Micronesia (Federated States of) Republic of Moldova Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nauru Nepal Nicaragua Niger Nigeria Niue North Macedonia Oman Pakistan Palau State of Palestine Panama Papua New Guinea Paraguay Peru Philippines Portugal Qatar Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Solomon Islands Somalia South Africa South Sudan Sri Lanka Sudan Suriname Syrian Arab Republic Tajikistan Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Türkiye Turkmenistan Tuvalu Uganda United Arab Emirates United Republic of Tanzania Uruguay Uzbekistan Vanuatu Venezuela (Bolivarian Republic of) Viet Nam Yemen Zambia Zimbabwe

The project is aimed at supporting developing countries in the transition to the Enhanced Transparency Framework (ETF) and its Biennial Transparency Reports under the Paris Agreement. It also offers various other support to countries, such as the quality review of country's transparency reports, the provision of a dedicated gender toolkit (forthcoming), global meetings, webinars and knowledge products

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From 2021 — ongoing
Partnership for Market Implementation (successor of Partnership for Market Readiness)
Implemented in:

Bangladesh Botswana Azerbaijan Chile China Colombia Guinea Indonesia Kazakhstan Malaysia Mexico Montenegro Pakistan Belize Bhutan Brazil Cambodia Senegal Egypt Türkiye Ukraine India Republic of Moldova Mongolia Namibia Nepal Papua New Guinea Philippines South Africa United Republic of Tanzania Thailand Uzbekistan Viet Nam

Funded by:

Australia Canada Finland Germany European Union Japan Norway Switzerland United Kingdom of Great Britain and Northern Ireland Spain Sweden

PMI assists countries to design, pilot, and implement pricing instruments aligned with their development priorities. A 10-year program with a capitalization target of US$250 million, the Partnership brings an ambitious and long-term vision for the viability of carbon markets to its support for programs and policies -- across jurisdictions and sectors -- that introduce a strong price signal on carbon emissions and contribute to the Paris Agreement goal of limiting temperature rise to 1.5°C

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On this page Nepal map Article 6.2 Article 6.4 (PACM) Activities National targets Sustainable development Capacity building