The paper provides high level guidance to governments who are interested in attracting private investment to finance activities being implemented within the context of a national or subnational REDD+ program.
The estimated amount of finance needed to halt deforestation globally through sustainable agriculture and REDD+ is US$200 billion annually, of which current funding levels are around US$1 billion mostly provided from donors, governments and other non-private investor sources. This leaves a large gap that needs to be sourced through the financial sector and market-based investments
To attract these private investments to sustainable agriculture and REDD+, governments and business/project owners are going to have to make it appealing to these investors. This paper outlines 7 key components that governments can adopt to maximize opportunities to attract private sector investors:
Recognize and promote projects within national/subnational REDD+ programs
Create REDD+ related policies and processes that drive private sector investments
Implement frameworks for stakeholder engagement, safeguards and monitoring of non-GHGs to meet private sector priorities
Structure mechanisms for attributing/recognizing results that incentivize emission reductions and removals and provide predictable revenue streams
Adopt technically robust, spatially explicit methods for quantification and verification for GHG emissions from deforestation and degradation that applies at the national/subnational and project levels
Apply processes for registration of REDD+ activities and elimination of double counting risk
Create other opportunities to connect private sector with REDD+ actors on your country
IETA’s report can be accessed:
In English here
In Spanish here
