There is a provision that projects must be registered under the 'Gold Standard' for carbon sales. This technology has been able to generate income because it was not certified and registered on time.
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The Office of the Auditor General has raised questions about the fact that Nepal has made meaningful efforts to reduce carbon emissions by protecting the environment, but has not been able to achieve proper benefits. Section 28 of the Environmental Protection Act, 2076 BS, provides for the government to participate in mechanisms established by international treaties for reducing and accumulating carbon emissions.
The act provides for participation in carbon trading with foreign governments, organizations, commercial bodies or the private sector. There is a provision for registering projects for carbon sales in the 'Gold Standard'. Since the technology has not been certified and registered on time, income has not been generated. For that, an internationally acceptable template needs to be prepared.
Nepal has been facing the impact of climate change. Large, medium and small hydropower projects have made a significant contribution to reducing carbon emissions. Small hydropower projects are also actively contributing to it. Nepal's contribution to forest and environmental protection is being discussed internationally. Climate change has had a huge impact on the Himalayan region. From the drying up of water sources to excessive rainfall and lack of rainfall, there has been a trend.
The Alternative Energy Promotion Center used to register projects under the Clean Development Mechanism under the Kyoto Protocol and generate carbon income. After the mechanism is closed in 2023, there is a provision that projects must be registered under the 'Gold Standard' for carbon sales in the international market. The Office of the Auditor General has raised questions about the failure to achieve the benefits of carbon trading due to the process not progressing as per that provision.
According to the details received from the Alternative Energy Promotion Center, eight projects in the field of household biogas, improved water mills and micro and small hydropower were registered for carbon sales. From 2007 to 2025, it appears that 4.16 billion 10 million rupees were generated for 6.688 million tons of carbon reduction. This year, such income is only 94.96 million rupees.
The Office of the Auditor General has questioned the responsible bodies and stakeholders for not achieving the expected benefits from carbon trading due to the failure to expand the necessary mechanisms. It seems that the government bodies need to immediately respond to the Auditor General's question about why the mechanisms and standards that should be established to reap the benefits from environmental protection have not been met and the process needs to be taken forward.
