Financial Planning for National REDD+ Programs

Terra Global Capital
September, 2016

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.

Given the complexity of national REDD+ program design and implementation, including a mind boggling number of terms and acronyms and a multitude of stakeholder languages, part of this paper focuses on establishing a common language needed to facilitate the REDD+ financial planning process. Coordinated planning and implementation of cross sectoral activities is needed for a country to benefit from the breath of international and domestic funding sources that are linked to agricultural, forestry, and climate change mitigation.