(1) The government of Nepal can sell the reduced carbon emissions or increased carbon reserves in the national or international market through the sustainable management of forests. (2) In the event that carbon or other greenhouse gas emissions are being emitted from any social and economic activity conducted by any government agency, organization or private sector, if the emission is reduced, the amount of such reduced emission will be sold in the national or international market by the Government of Nepal itself or through any organization or private sector. can do
(3) If any project related to clean development mechanism reduces the emission of greenhouse gas, the amount of the emission reduced by that can be sold in the international market by the Government of Nepal itself or through any government agency, organization or private sector.
(4) Before carbon trading according to sub-rule (1) or (2), the government agency or the organization participating in this work or the private sector shall obtain the independent prior informed consent of the local community to reduce emissions or increase the carbon stock and the community affected by the related activities.
(5) The per unit price of emission reduction or carbon savings while doing the work according to sub-rule (1) or (2) shall be determined by the Government of Nepal through mutual discussion and agreement with the purchasing country or organization.
(6) If a private forest owner wants to include his rightful forest in the carbon trade, the Ministry may include it in the carbon trade on the condition that he works with such owner in accordance with the action plan. Explanation: For the purpose of this sub-rule: "Private forest" means a forest spread over an area of ​​at least half a hectare, having a canopy density of at least ten percent and a tree height of at least five meters.
(7) In accordance with sub-rule (1), (2) or (3), while reducing the emission of carbon or other greenhouse gases or increasing the carbon stock, it should be ensured that there is no loss in biological diversity.
(8) Participating in carbon trading from projects related to clean development mechanism in accordance with sub-rule (3).The interested proponent should prepare and submit the project idea note and project design document to the Ministry.
(9) When preparing the project concept paper and project design documents according to sub-rule (8), they should be prepared in such a way as to include the standards of sustainable development in accordance with the framework mentioned in the United Nations Framework Convention on Climate Change.
(10) In accordance with this rule, carbon trading shall also comply with the provisions of the United Nations Framework Convention on Climate Change.