The Auditor General’s Office questions the lack of profit from carbon trading

लगानी न्यूज

३ जेष्ठ २०८३, आईतवार १६:०२May 17, 2026

. KATHMANDU: The Office of the Auditor General has raised questions about the fact that although Nepal has made meaningful efforts to reduce carbon emission by protecting the environment, it has not been able to get proper benefit from it. Clause 28 of the Environment Conservation Act, 2076 BS has the right for the government to participate with the mechanism established by the international treaty for the reduction and deposition of carbon emissions.

The Act provides for participation in carbon trading with foreign governments, institutions, business bodies or the private sector.TAG_OPEN_div_18 The project has to be registered in the ‘Gold Standard’ to sell carbon. Due to the lack of timely certification and registration of this technology, income has not been generated. For this, an internationally acceptable template has to be prepared.

Nepal is facing the impact of climate change.TAG_OPEN_div_16 Large, medium and small hydropower projects have made a huge contribution to reduce carbon emissions. Small hydropower projects are also actively contributing to it. Nepal’s contribution to the conservation of forests and environment has been discussed internationally. Climate change has had a huge impact on the mountainous region. Water sources have dried up, drought and drought.

The Alternative Energy Promotion Center (AEPC) used to generate carbon income by registering projects with the Clean Development Mechanism under the Kyoto Protocol.TAG_OPEN_div_14 After the closure of the plant in 2023, the project has to be registered in the ‘gold standard’ to sell carbon in the international market. The Office of the Auditor General has raised questions about the failure to reap the benefits of carbon trading as the process as per this provision did not proceed.

According to the data received from the Alternative Energy Promotion Center (AEPC), eight projects related to domestic biogas, improved water mills and micro and small hydropower were registered for carbon sale.TAG_OPEN_div_12 From 2007 to 2025, 6.688 million tonnes of carbon emissions earned Rs 4.16 billion. This year, such income is only 9 crore 49 lakh 60 thousand.

The Office of TAG_OPEN_div_10 the Auditor General has questioned the responsible bodies and stakeholders for not achieving the expected benefits of carbon trading due to the failure to expand the necessary mechanisms. To the question of the Auditor General’s Office as to why the mechanism and standards to be established to take advantage of environmental protection have not been fulfilled, the government bodies need to immediately respond and initiate the process.