Nepal has more than 250,000 household biogas digesters that replace firewood with methane for most cooking needs, thus conserving forest resources while reducing indoor air pollution, reducing workloads for energy procurement, and providing a fertilizer slurry by-product. Biogas is also an approved clean development mechanism that reduces carbon emissions, creating a potential revenue stream for the government from global carbon trading markets through aggregating household biogas plants into larger projects for carbon trading. This article traces the shift to biogas as a neoliberal development strategy in Nepal by exploring the connection between biogas as a household energy decision and global carbon trading.