Wood charcoal market in Nepal

Earlier Report Observations

Wood charcoal production in Nepal increased consistently from 89 200 t in 2018 to 96 194 t in 2023, with total market volume rising from 90 403 t to 96 447 t over the same period. This expansion was supported by a series of national policies aimed at sustainable forest management and clean energy transitions. Nepal's Nationally Determined Contribution (NDC) 3.0 in 2018 committed to sustainable wood production by 2030, while the National Forest Policy and Climate Change Policy of 2019 reinforced frameworks for managing forest resources and biomass supply.

The growth trajectory was further underpinned by the development of carbon market mechanisms. Preparations for REDD+ carbon trading in 2021 led to the Carbon Trading Regulation in 2022, providing a legal basis for forest-based carbon credits and incentivizing sustainable harvesting. Community forest management practices contributed to forest expansion and raw material availability. In 2024, a bilateral carbon trading agreement with Sweden under the Paris Agreement helped scale clean cooking and forest projects, directly influencing the wood charcoal sector. Market interest remained evident, highlighted by the 9th Nepal Wood International Expo in 2023 which showcased innovations in wood-based products.

Production wood charcoal in Nepal

In kind, 2017-2020, t

Top producers of wood charcoal, 2017-2020

World map of production of wood charcoal, 2017-2020

Wood charcoal production in Nepal has increased for the third consecutive year. In 2020, Nepal produced 91 876 tonnes of wood charcoal, marking a 1.5% year-over-year improvement. Between 2017 and 2020, production grew by 4.5%, which translates to an annualized rate of 1.5%.

Annual dynamics of production in Nepal in kind, 2017-2020, t

Exports wood charcoal from Nepal

Exports in kind, t

The market displayed volatility during the observed period. The lowest point occurred in 2019, followed by a peak in 2020, with a 211-fold variation between these years. In 2020, wood charcoal shipments from Nepal to abroad totaled 2 tonnes, representing a dramatic increase of 20,980.0% compared to the previous year. The minimum value was recorded in 2019 at 0.0 tonnes, with the largest decline of 97.4% also occurring that year.

Annual dynamics of product's exports from Nepal in kind, 2017-2020, t

From 2017 to 2020, the United States, China, and Japan were the leading destinations for Nepal's wood charcoal exports in kind. The United States accounted for 28.0% of exports, China for 23.1%, and Japan for 13.3%. Together, these three countries comprised 64.4% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Nepal in kind, 2017-2020

Exports in value, K $ US

The market exhibited an unstable trend throughout the timeframe. The lowest exports were recorded in 2019, with the highest in 2020, reflecting a 186-fold gap. In 2020, Nepal exported 9.5 thousand US dollars worth of wood charcoal, corresponding to a dramatic increase of 18,548.3% compared to 2019. The minimum value was 0.1 thousand US dollars in 2019, and the largest decline of 82.1% also occurred that year.

Annual dynamics of product's exports from Nepal in value, 2017-2020, K $ US

Throughout 2017 to 2020, the United States, Spain, and France remained key partners for Nepal's wood charcoal exports in value terms. The United States accounted for 36.7% of exports, Spain for 12.8%, and France for 11.5%. Collectively, these three countries represented 61.0% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Nepal in value, 2017-2020

Imports wood charcoal to Nepal

Imports in kind, t

The market showed signs of volatility over the observed period. A 1.9-fold variation was observed, with the minimum in 2017 and the maximum in 2018. In 2020, cross-border shipments of wood charcoal to Nepal amounted to 662 tonnes, down by 38.7% compared to 2019. The maximum value was recorded in 2018 at 1 203 tonnes, with the largest increase of 91.6% also occurring that year.

Annual dynamics of product's imports to Nepal in kind, 2017-2020, t

From 2017 to 2020, India dominated Nepal's wood charcoal imports in kind, concentrating 88.3% of total imports. The remaining flows were distributed across multiple smaller partners.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Nepal in kind, 2017-2020

Imports in value, K $ US

The volume of wood charcoal imports to Nepal declined for the second consecutive year. In 2020, imports reached 172.9 thousand US dollars, down by 13.7% year-over-year. Between 2017 and 2020, imports increased by 17.7%, equating to an annualized rate of 5.6%. The maximum value was recorded in 2018 at 232.8 thousand US dollars, with the largest decline of 13.9% in 2019 and the largest increase of 58.5% in 2018.

Annual dynamics of product's imports to Nepal in value, 2017-2020, K $ US

Over the period from 2017 to 2020, India was the dominant destination for Nepal's wood charcoal imports in value terms, accounting for 72.8% of total flows. The remaining share was distributed among a number of smaller markets.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Nepal in value, 2017-2020