This paper examines the role of national and sub-national institutions
in managing carbon sequestration and trade in Nepal. It first asks
whether it is feasible and advantageous to implement REDD+ in Nepal’s
community managed forests. Then, using a pilot experimental program,
it assesses whether community institutions can serve both existing
needs and meet international demand for carbon. The review of
secondary evidence suggests that community forestry can effectively
and equitably manage REDD+ activity. However, there may be higher
carbons returns to converting forests currently directly managed by
the government to more efficient regimes. At the sub-national level,
available evidence suggests that REDD+ activities can be successfully
implemented, if, in addition to rent, communities receive technical
mentoring that contributes to institutional strengthening.