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Unleashing the Potential: Exploring Sustainable Financing Practices for Biodiversity Conservation in Nepal

Author Affiliations

  • 1NARMA Consultancy Pvt Ltd, NEPAL
  • 2International Union for Conservation of Nature (IUCN), NEPAL

Res. J. Agriculture & Forestry Sci., Volume 2, Issue (4), Pages 19-26, April,8 (2014)


Sustainable financing (SF) intends to generate fund over the longer term to finance projects and programmes through the introduction of innovative financing mechanisms. Sustainable financing applies to all the sectors of the development programmes and projects; however it has been extensive use in the management of natural resources. Specifically, SF aims to create a more predictable cash flow, through (a) attracting and administering external funds (b) generating funding to encourage conservation and (c) introducing market-based fees for goods and services. International and national practices clearly demonstrate that comprehensive legislation is essential for generating and mobilizing funds, however is a time consuming process. Nevertheless, there is possibility of implementing the fund concept in the present context by making provisions in the finance Act. However, clear operating guidelines or a directive is necessary for collecting and mobilizing revenue for the forestry sector development. Several sustainable financing mechanisms are already in practice in Nepal. Some of which have been introduced in the recent years, such as revenue sharing, royalty and cost sharing, conservation fee, community concessions, compensation payments, carbon finance, resource extraction fee, support from multilateral agencies etc to encourage conservation. Most of these practices are in evolutionary stages and clear operational guidelines in consistent with the existing legislations are necessary for the institutionalization of sustainable financing mechanisms. Apart from this, there are several options which have potential of generating finance over the longer term. However, detailed feasibility study for introducing such financing practices, including appropriate legislative framework need to be developed.


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