VCM in Nepal

Voluntary carbon markets (VCM) involve the trading of carbon credits that are not regulated by government-mandated cap-and-trade systems. VCM has gained global attention as a mechanism to incentivize carbon reduction efforts. This market allows companies and individuals to offset their carbon emissions by purchasing carbon credits from projects that reduce or remove an equivalent amount of greenhouse gases from the atmosphere. VCM has emerged as a critical instrument in the global fight against climate change. The VCM, which was worth $2 billion in 2021 will grow to $10-40 billion in 2030.[1]

In Nepal, the VCM has gained significant traction, with various stakeholders coming together to advance the VCM agenda and promote its integration with the country’s climate goals. The VCM’s potential to mobilize both private and public sector resources can be viewed as an opportunity for Nepal to attract investments for energy efficiency, forestation and sustainable development projects. By aligning with international standards, the country can overcome existing challenges and achieve a reputable global presence.

Overall, voluntary carbon initiatives in Nepal play a crucial role in addressing climate change while supporting local communities and ecosystems.

[1] Voluntary carbon markets set to become at least five times bigger by 2030 -Shell | Reuters