Over the past few years, Nepal has become increasingly involved in international efforts to mitigate climate change through an emerging global mechanism called reducing emissions from deforestation and forest degradation, and enhancing forest carbon stocks in developing countries (REDD+). This discussion paper examines the interactions among diverse institutions and actors involved in Nepal’s REDD+ readiness process at multiple scales. Drawing on the concepts of ‘institutional interplay’, ‘cross-scale institutional linkages’, and ‘institutional design’, it analyzes how the REDD+ readiness process and its emerging institutional architecture are influenced by international negotiations and funding mechanisms, interplay among national institutions of forest governance, and the interactions of various national actors.