The Forest act of 1993 provides a framework to ensure an operational management of the forestry sector, ensure the development, the conservation and the proper use of forest products. The act also provides the policies for a cooperation in the conservation and development of private forest by managing the national forest in the form of government managed forest, protected forest, community forect, leasehold forest and religious forest. 

However, the Shrestha v. Office of the Prime Minister et al. case led to the adoption of the Forests Act 12/2019 to enable Nepal to meet its commitments to the Paris Agreement. This document notably states in chapter 13, article 44, on the management of environmental services that the government shall take provisions with regard to climate change adaptation and storage,  mitigation of emission, of carbon, the management, use and distribution of dividends.