In Nepal, 82.5% of the population are living below the poverty line. The backbone of their livelihoods is agriculture, which depends largely on weather and climate sensitive factors. The livelihoods of forest-based peoples are projected to be seriously challenged by climate change due to loss of land and productivity. Events such as forest fires, floods, landslides and drought are prominent risks. Therefore, the overall socio-economic vulnerability and poverty of Nepalese smallholder farmers can be reversed with the wise management of natural resources. The Eco-Reach Foundation has consequently recognized the socio-economic vulnerability and poverty of the community as an important incentive for the proper management of natural resources and livelihood improvement.