The rural population of Nepal is highly dependent on fuelwood which is a major source of energy in the country and accounts for approximately 77%of the total energy demand in Nepal (WECS, 2010). Tourism in the region is also placing a burden on energy consumption needs. The project will lead to improving forest connectivity, and forest landscape restoration that will reinstate the habitat of many endangered wildlife. The increased flow of ecosystem services from the restored forested landscape will contribute to improving the livelihood of the local communities that depend on forest resources as well as aid the tourism industry.

Nearly a third of the population manage nearly a third of the forest in Nepal, making the grass root level community institutions for managing forest a global model for forest management. This proposed project works directly with these institutions that manage and conserve forest. Additionally, as Nepal has a significant tourism industry, the project will also address the growing energy needs of the industry and enable a sustainable tourism industry to be established.

The proposed project will be implemented in Province 1 and province 2 of Nepal to address the drivers of deforestation, forest degradation, and unlock the potential for forest enhancement of carbon through improved forest management, restoration, afforestation/reforestation and agroforestry.

The benefits from the project include improved biodiversity and habitats. It assures carbon sequestration in trees and soil. It creates a development fund for livelihood and sustainable development programme for the community. The project also addresses problems related to climate change and ecological habitats. The project encourages gender equality by providing increased income via sale of carbon credits.