The guidelines for biodiversity-friendly forest management will help close the biodiversity financing gap in Nepal

To promote sustainable forest management, the "Biodiversity Friendly Community Forestry Operational Plan Preparation Guidelines" were validated by stakeholders in Sudurpaschim Province, Nepal. This initiative aims to close the significant funding gap in the implementation of the Nepal Biodiversity Strategy and Action Plan (NBSAP).

The funding gap for the NBSAP planning period from 2014 to 2020 was US$ 502 million, equivalent to 1.5% of Nepal's GDP in 2019. To address this, the Ministry of Forests and Environment (MoFE) identified 11 potential financing solutions to mobilize US$26.7 million annually. Of these, three were selected to be piloted in Nepal with technical support from the United Nations Development Programme's Biodiversity Finance Initiatives (BIOFIN).

One of the key solutions is the initiative "Mainstreaming Biodiversity Conservation in the Community Forests of the Biological Corridors of Nepal", which is being trialed in three corridors in the Sudurpaschim province. This initiative aims to improve the accountability, transparency and efficiency of forest user groups’ investments in biodiversity conservation. It includes developing biodiversity-friendly guidelines for preparing operational plans for community forest management, supporting forest user groups in preparing these plans, estimating funding gaps and proposing mechanisms to bridge these gaps.

Bijendra Basnyat, UNDP BIOFIN Project Coordinator in Nepal, emphasized the potential impact of this solution: "The financing solution will fundamentally change the management of forest resources in the biological corridors by developing an entrepreneurial culture for forest management while addressing the root causes of loss in community forests in an integrated manner."

_{Bijendra Basnyat, UNDP BIOFIN Project Coordinator in Nepal}

The guidelines are designed to help forestry officials and stakeholders develop and implement biodiversity-friendly management plans for community forests. These plans focus on promoting sustainable forest and ecosystem management, assessing financial needs and identifying solutions to reduce investment gaps.

On 5 October 2023, the Ministry of Industry, Tourism, Environment and Forest (MoITEF) hosted a national validation workshop in Sudurpaschim province to review the draft guidelines. Chaired by the MoITEF Secretary, the workshop was attended by 50 representatives including former Members of Parliament, Forest Department officials, community leaders, conservation partners and forest user group leaders.

Dr Ram Chandra Kandel, Joint Secretary, Department of Environment and Biodiversity, MoFE, emphasized the collaborative nature of the guidelines, "The guidelines create mechanisms for collective action by forming partnerships with stakeholders to bridge the investment gap. This mechanism improves the accountability of forest user groups and recognizes their contribution to the management of forest resources."

_{Dr Ram Chandra Kandel, Joint Secretary, Department of Environment and Biodiversity, the Ministry of Forests and Environment}

The guidelines will also recognize the voluntary contributions of forest user groups, which are often overlooked, by valuing both in-kind and cash contributions in financial analyses. Jev Nath Poudel, Province Secretary of MoITEF, emphasized the importance of this approach: "The voluntary contribution of users is very high and often goes unnoticed. The guide emphasizes the estimation of users’ in-kind and cash contributions during the financial analysis. With this approach, we can learn about the alternative financial resources of forest user groups and sensitize stakeholders to their contribution to forest management."

In collaboration with BIOFIN, MoITEF will support 50 community forest user groups in three biological corridors covering nearly 5,000 hectares of forest. This initiative is expected to increase investment by forest user groups by almost 15 per cent within two years to tackle the causes of biodiversity loss and promote sustainable forest management.

_{Discussions with community members}