(1) The Government of Nepal shall make the following arrangements for the management, utilization and dividend distribution of the environmental services obtained from the forest area:-
(a) In the case of benefits obtained from climate change adaptation and carbon storage and emission reduction, management utilization and distribution of dividends shall be as determined by the Government of Nepal,
(b) The management, utilization and distribution of dividends of other environmental services except the carbon storage and emission reduction obtained from the forest area shall be as provided in the action plan of the respective forest,
(c) Funds received for environmental services from water power drinking water and tourism projects and other agencies or industries and their management, use and distribution shall be as prescribed.
(2) Notwithstanding anything contained in sub-section (1), the Divisional Forest Office shall, in its annual programme, issue environmental service tenders
(Environmental Services Tender) will be able to arrange subsidies or other types of payments to private forest owners who wish to manage environmental services by fulfilling the specified conditions.