KATHMANDU: The government has announced plans to establish a Carbon Authority in Nepal.

Presenting the policies and programmes for the upcoming fiscal year 2026/27, President Ram Chandra Paudel said the new authority would help manage carbon-related initiatives and ensure benefits from carbon credits reach community forest groups.

He also said the government would encourage the use of domestic timber in construction and industries through policy reforms.

The government further announced plans to establish a Forest Fire High Alert Centre, introduce continuous monitoring systems, and strengthen fire control capacity to tackle increasing forest fire risks.

President Paudel said community forest user groups would be ensured expected benefits from carbon credit mechanisms under the new policy framework.