Project launch for DGM Nepal

The World Bank and Rural Reconstruction Nepal (RRN) launched the Dedicated Grant Mechanism for Indigenous Peoples and Local Communities in Nepal (DGM Nepal) project on 22 December 2022 to strengthen the capacity of Indigenous Peoples and Local Communities (IPLCs) in Nepal’s forest sector.

DGM Nepal is a five-year project financed with a grant of $4.5 million which will operate in 50 municipalities of Madhesh and Lumbini provinces. It focuses on improving the capacity of Nepal’s IPLCs to participate in national, regional, and global initiatives to reduce greenhouse gas emissions from deforestation and forest degradation (REDD+) and promote sustainable forest management and forest carbon stocks. It will also help create livelihood opportunities and increase the income of forest-dependent communities in the Madhesh and Lumbini provinces.

The DGM Nepal project will be implemented by RRN as the National Executing Agency (NEA) selected through a competitive process in 2020 in accordance with the DGM Operational Guidelines. A National Steering Committee (NSC) comprising 14 non-governmental organizations will provide strategic and leadership guidance to the project.

The DGM Nepal project is funded by the Climate Investment Funds (CIF) Forest Investment Program (FIP), administered by the World Bank, to enhance the role of IPLCs in protecting the forests they depend on. It complements the work under the $24 million Forest for Prosperity Project.