The objectives of the task is “ to undertake a comprehensive baseline study and provide a detailed report of the current situation including relevant issues in the targeted project area of the Eastern Hills (provincial and local) and at national level”. Both primary and secondary data and information were collected to prepare this thematic report. The secondary data were collected from literature accessed from various sources – published, grey and web-based. The primary data was collected through a field survey conducted at different levels – from federal to the Forest Users Groups (FUGs). Due to the prevailing pandemic situation, collection of the field level data and information were accomplished by trained and guided local experts. The baseline study team adopted purposive (expert) sampling method to select sample palikas and CFUGs/LFUGs from the five project districts. The team conducted key informant (KI) consultation with the concerned Forest Division, sub-division, regional Soil and Water Conservation officials located in and outside the project districts and Palika and CFUG/LFUG level key stakeholders. 5 out of 34 Palikas were selected as samples using the following criteria: (i) forest type defined by altitude, aspect and use, (ii) biodiversity value (based on species richness including native species presence of rare or threatened species, important bird area, Ramsar site etc.), (iii) extent of external pressure/threat (e.g. from economic development activities), and (iv) existence of community based enterprises and cultivation of NTFPs. Altogether 29 user groups (25 CFUGs and 4 LFUGs) were selected as sample community based forest and land management organizations to collect primary data and information. The sample user groups covered different agro-ecological zones based on altitudes, aspects, forest types and ethnicity.

Summary Recommendations: Following broad activities were recommended based on the baseline study done by the CGED-Nepal Team:

• Build capacity of User Groups: Recognizing the significant contribution made by the CFUGs, LFUGs and other indigenous groups in conserving and managing region’s biodiversity and cultural heritage, qualitative strengthening the technical, institutional and systemic capacity of these organizations could help in reinvigorating the community forestry movement in the project areas;
• Develop sub-national, national and regional value chains: In order to address the need to develop equitable and diversified livelihoods for small producers, the proposed project should focus on developing participatory and equitable value chains of high potential NTFPs and agro-products on commercially viable high-value low-volume products such as Nepali paper, cardamom, Chiraito, Kiwi etc. by organising and strengthening the producers groups so as to enhance their negotiating skills with the private sector.
• Improve quality standards of community and leasehold forest (e.g., NTFP and Eco-tourism) products and services: In order to access low, medium and high-end markets for NTFP/MAP/Agro-products especially spices, herbal medicines and tea as well as bamboo and broom grass products both within the country and at regional level, organic or eco-labelling, product standards and certification system for the prioritized products should be developed, working closely with national standards/trade and export promotion agencies so as to enable small producers to meet these standards, and better access national and international markets.
• Integrate CF/LHF in Climate Change Adaptation, Mitigation and Disaster Risk Reduction (DRR): Mainstream climate change risk management in forest, environment, and land use policy, plan and programmes so that adaptation and DRR actions should be better integrated based on emerging suite of nature based solutions (NbS) that includes EbA, EcoDRR and others; Adaptation activities should be tailored according to the types of ecosystem service potential and local livelihood needs especially focusing on vulnerable communities and recognizing the existence of socio-ecological systems in the project area. Combined adaptation, livelihoods, conservation and DRR interventions should enable the vulnerable communities and individual households to practice more adaptive management of landscape resources, especially NTFP/MAPs and select Agro-products. The outcome of such action can result in improved livelihood, health, gender and social inclusion through creation of natural resources-based safety net outputs in the form of increased ecosystem goods services such as income generating and livelihood diversifying activities.