The main goal of this Interim Plan is to lay a foundation for economic and social transformation to build a prosperous, modern and just Nepal. The long- term vision of the environment sector is to achieve sustainable economic development by reducing environmental impacts. In order to secure Nepal’s future, efforts have been directed towards curbing vehicular emissions, initiatives have been taken to launch alternative energy sources, increasing carbon saving. Under the Clean Development Mechanism (CDM), carbon saving has allowed Nepal to trade carbon. Carbon trading and climate change mitigation can serve as provisions to allocate international resources. Carbon trading wil also be promoted to achieve benefits from CDM under the Kyoto Protocol.