The initial concept of innovative sustainable financing mechanism was developed two decades ago by UN agencies with separate conservation funds. In Nepal, sustainable financing practices are relatively new and have been practiced mostly by the Department of National Parks and Wildlife Conservation (DNPWC). Nepal has adopted three ways of financing mechanisms attracting funds, cost/revenue sharing and market-based fees for services (park entry fee, service charges, etc.). This study has also reviewed the policies that have gone through various changes with respect to sustainable financing mechanisms for biodiversity conservation. Planned efforts in conservation and development have been in practice in the country since the promulgation of NPWC Act, 1973, which has allowed to charge fees for the use of natural resources inside the park to visiting the park.
The study we carried out on the feasibility of green tax for sustainable financing of conservation and development was very new to the stakeholders we met, consulted and discussed during the study period from April to June 2019. The findings from the analysis of vehicular flow along the sites studied suggest that there is a high potential to establish sustainable financing mechanisms through green tax. Though the initial setup would require certain funds, the green tax generation in the subsequent years would contribute towards sustainably financing the programs benefiting both the conservation and development sectors.