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This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

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While deforestation has traditionally been the focus for forest canopy disturbance detection, forest degradation must not be overlooked. Both deforestation and forest degradation influence carbon loss and greenhouse gas emissions and thus must be included in activity data reporting estimates, such as for the Reduced Emissions from Deforestation and Degradation (REDD+) program. Here, we report on efforts to develop forest degradation mapping capacity in Nepal based on a pilot project in the country’s Terai region, an ecologically complex physiographic area. To strengthen Nepal’s estimates of deforestation and forest degradation, we applied the Continuous Degradation Detection (CODED) algorithm, which uses a time series of the Normalized Degradation Fraction Index (NDFI) to monitor forest canopy disturbances. CODED can detect low-grade degradation events and provides an easy-to-use graphical user interface in Google Earth Engine (GEE). Using an iterative process, we were able to create a model that provided acceptable accuracy and area estimates of forest degradation and deforestation in Terai that can be applied to the whole country. We found that between 2010 and 2020, the area affected by disturbance was substantially larger than the deforested area, over 105,650 hectares compared to 2753 hectares, respectively. Iterating across multiple parameters using the CODED algorithm in the Terai region has provided a wealth of insights not only for detecting forest degradation and deforestation in Nepal in support of activity data estimation but also for the process of using tools like CODED in applied settings. We found that model performance, measured using producer’s and user’s accuracy, varied dramatically based on the model parameters specified. We determined which parameters most altered the results through an iterative process; those parameters are described here in depth. Once CODED is combined with the description of each parameter and how it affects disturbance monitoring in a complex environment, this degradation-sensitive detection process has the potential to be highly attractive to other developing countries in the REDD+ program seeking to accurately monitor their forests.