Using a multilevel governance lens, this paper analyzes ongoing reducing emissions from deforestation and forest degradation (REDD+) readiness initiatives in Nepal. We present the evidence of what is happening around these preparatory activities in relation to handling forest tenure issues, stakeholder engagement, developing monitoring and verification mechanisms, and creating benefit-sharing mechanisms. Our aim is to assess whether Nepal is on its way to being ready for full-fledged REDD+ implementation in the next few years. The paper concludes that, while the REDD+ readiness process mobilizes diverse and opposing stakeholders through interactive forums, it pays little attention to basic governance issues such as defining carbon rights and who is authorized to make what decisions about REDD+ rules and practices. Moreover, despite some well-intentioned participatory pilot experiences, fundamental aspects of participation, equity, and fairness remain unaddressed.