Chapter-13 Provisions Relating to Environmental Services

Chapter-13 Provisions Relating to Environmental Services

  1. Management of environmental services: (1) The Government of Nepal shall make the following provisions for the management, use and distribution of dividends of the environmental services to be obtained from the forest area:

(a)        In the case of benefits derived from climate change adaptation and storage, and mitigation of emission, of carbon, the management, use and distribution of dividends thereof shall be made as determined by the Government of Nepal,

(b)        The management, use and distribution of dividends of the environmental services other than the storage, and mitigation of emission, of carbon obtained from the forest area shall be as provided in the work plan of the concerned forest,

(c)        The amount to be derived from the environmental services by other body or industry including hydropower, drinking water and eco-tourism project and the management, use and distribution thereof shall be as prescribed.

                        (2)        Notwithstanding anything contained in sub-section (1), the Division Forest Office may make provision for the payment of grants or other kind of payment to the owner of a private forest that wishes to manage the environmental services by completing the prescribed conditions, by making invitation to environmental services tender, and upon making provision in its annual program.

  1. Establishment of forest development fund: (1) The Government of Nepal may, establish a forest development fund for the implementation of the objective of this Act, protection and promotion of the forest and performance of other promotional activities.

                        (2)        The following amounts shall be credited to the fund referred to in sub-section (1):

(a)        Amount received from the Government of Nepal, Provincial Government and Local Level,

(b)        Amount received from any person or body,

(c)        Amount received from a forest government, international organization or person in the form of assistance or loan,

(d)       Amount obtained from the sale of forest products of the forest area, amount obtained from the environmental services and amount obtained in consideration for the provision of the forest area for other purpose.

(3)        In receiving any amount pursuant to clause (c) of sub-section (2), prior approval of the Government of Nepal, Ministry of Finance shall be obtained.

(4)        The amount of the forest development fund shall be deposits in an account opened with any class “A” commercial bank.

(5)        The fund referred to in sub-section (1) shall be audited by the Auditor General.

(6)        Other provisions relating to the operation of the fund referred to in sub-section (1) shall be as prescribed.