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.
This paper sets out a financial planning framework that government agencies, climate finance experts, international cooperation agencies, multilaterals, national development banks and relevant private sector parties can follow for national REDD+ financial planning. The framework facilitates the development of financial projections and a financing plan covering the implementation of the National REDD+ Programs deploying four levels of financial analysis. Adopting this framework will allow countries to clearly identify the cost, revenue and expected funding requirements for National REDD+ Program implementation as well as assess the financial feasibility of different strategic options for generating emission reductions and financial and social outcomes from sustainable landscape management. It also supports the development of realistic REDD+ Financial projections to allow for building a financial capital structure that can leverage multiple sources of public and private funds.
Forest loss in developing countries represents a significant contribution to global emissions along with significant climate change mitigation potential. How Reducing Emissions from Deforestation and Forest Degradation in Developing Countries; and the Role of Conservation, Sustainable Management of Forests, and Enhancement of Forest Carbon Stocks (REDD+) will be incentivized in a future climate agreement is still being negotiated under the United Nations Framework Convention on Climate Change (UNFCCC).
Large, commercial agriculture and timber enterprises are the principal agents of tropical deforestation, with four key commodities—soy, beef, palm oil, and pulp and paper—driving up to 50 percent of tropical deforestation. These drivers of deforestation differ by region. Soy and cattle are key in South America, while timber, paper, and palm oil are more important in Southeast Asia.
The objective of this paper is to evaluate the potential of a range of market and non-market policy options available to developing countries willing to contribute to a global climate chnage solution by reducing emissions from deforestaion and forest degradation, forest conservation, sustainable management of forests, and enhancement of forest carbon stocks (REDD+) and to deliver additional co-benefits. The covered policy options are domestic market-based instruments (MBIs), direct regulation of land clearing, payments for results, and environmental impact assessment.
