This case study explores how grassroots women-led forest enterprises in Nepal are turning traditional knowledge into eco-products that boost incomes and support sustainable forest management. Written by Mairi Dupar, senior technical advisor at CDKN, and Kanchan Lama, a senior gender expert and Indigenous People's champion from Nepal, it was published as a background paper for the Asian Development Bank's Asia Pacific Climate Report 2025. 
Below are the main takeaways.

Despite strong legal recognition, the rights of women in Nepal’s forest sector remain largely unfulfilled in practice. The constitution guarantees equal rights for women in areas such as inheritance, property ownership, family affairs, participation in state bodies, and protection from discrimination. Forest policies similarly acknowledge women’s roles, mandating that half of the leadership positions in Community Forest User Groups be held by women. Yet in reality, their participation is often symbolic, with limited access to forest resources and little influence in decision-making. Structural and financial barriers persist, including lack of land ownership which limits women’s access to financing for forest-based enterprises. Their limited access to credit, extension services, and social protection also heightens their—and their families’—vulnerability to climate change, disasters, and economic shocks.

Indigenous and lower-caste women in rural areas are actively overcoming challenges by crafting sustainable, income-generating products from non-timber forest resources using their traditional knowledge of forest ecosystems. Guided by a shared vision for sustainable forest management, they are building businesses that benefit both their communities and the environment. In Awalpur and Sindhupalchok districts, for example, women began producing biodegradable homewares from Thakal leaves and Sal plants—eco-friendly alternatives to plastic that decompose naturally, reducing pollution and dependence on fossil fuels. This approach not only generates reliable income for the women but also promotes the conservation of healthy, standing native forests with climate and biodiversity benefits. These eco-enterprises were catalyzed by modest start-up funds and facilitation support from ForestAction Nepal and the International Development Research Centre–Canada, provided through a donor-supported project (October 2021–March 2024), which helped translate local ideas into viable action. Building on this foundation, the women have expanded into other low-impact products such as bamboo baskets, brooms, Thakal leaf bags, nettle powder, lapsi candies, and coffee—often integrating agroforestry to rejuvenate fallow land and diversify livelihoods.

Improved local governance and targeted capacity-building enabled women to establish and expand their forest-based enterprises. Through negotiations with local authorities, they successfully amended by-laws to allow sustainable harvesting of Thakal and Sal leaves. [MP1] Capacity building Support from ForestAction Nepal in areas such as financial management, marketing, and digital literacy - along with the creation of a shared space for collaboration has further strengthened their capabilities. As a result, 18 women-led businesses have been established, directly employing around 160 people and indirectly supporting 283 others through raw material supply and pre-production activities. These women actively market their products across municipalities and play a bigger role in business decision-making, equipped with stronger financial and digital skills.

Beyond economic empowerment, the production of non-timber forest products delivers important ecological benefits. By promoting the sustainable use of biodegradable materials, the initiative has reduced forest fire incidents through the timely collection of Sal leaves from the forest floor. Planting of bamboo, coffee, and broom grass on fallow land has supported soil conservation, while the establishment of a permanent tree nursery by a women’s cooperative has helped prevent soil erosion and landslides.

Closing the gender implementation gap through forest-based solutions requires a multi-sector approach and a rethink of how climate and nature finance is delivered. While NGOs like ForestAction Nepal have successfully catalyzed women-led eco-enterprises through modest seed funding, training, and local partnerships, scaling remains difficult. Small, community-based initiatives are often overlooked by investors seeking large-scale returns, highlighting a critical gap in development finance. To unlock the full potential of these grassroots solutions, global climate and nature financing mechanisms must prioritize support for small, women-led enterprises, and financial intermediaries must help bridge the divide between capital and community. Equally important is the stronger implementation of existing legal rights to ensure women’s meaningful participation and equitable access to resources. Encouragingly, many of these enterprises continue post-project with growing support from municipal governments, demonstrating the potential of aligning inclusive governance, legal reform, and targeted financing for lasting impact.

Reference: Dupar, M. and K. Lama. 2025. Multiple wins from Indigenous women’s craze for eco-enterprises in rural Nepal. Background paper for the Asia–Pacific Climate Report 2025. Asian Development Bank.