Latham Advises on Landmark Forest Protection Funding in Nepal

Nepal has signed a purchase agreement with Emergent worth up to US$55 million in climate finance. With this agreement, Nepal becomes the first Asian country to sign an agreement to receive finance from LEAF Coalition, an innovative global public-private initiative comprising over 30 major companies and the governments of Norway, United Kingdom, United States, and Republic of Korea. Emergent is the coordinator for the coalition. 

The agreement covers the forward purchase of high-integrity forest carbon credits from Nepal’s government-led program to reduce emissions from deforestation and forest degradation. Nepal is also the first country to make credits available with corresponding adjustments to LEAF Coalition buyers for use in compliance markets. Funds from the LEAF agreement will be used to support local community development, forest quality enhancement, and biodiversity conservation, while benefiting a substantial portion of the 3 million+ households engaged in community forest management in Nepal.

Latham & Watkins LLP represents Emergent in the transaction with a team led by partner JP Brisson, with associates Jim Lambert, Qingyi Pan, and Georgia Bellett.