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.
