REDD+ Financing

ADVANCED REDD+ FINANCE

July, 2012. Matthew Cranford and Charlie Parker. Prepared for the REDD+ Partnership, Santa Marta, Colombia, 1 & 2 July 2012. 42 pages

Summary

There is growing recognition that we will not be able to achieve our ambition to reduce emissions from deforestation and forest degradation unless we scale up finance across all phases of REDD+, and leverage both public and private sector finance. At the same time, there is a range of views on exactly how this might be achieved and much debate on the best pathway for private sector engagement. Clouding discussions further is an asymmetrical understanding of REDD+ finance between the private sector, civil society and policy makers, which has led to an often-unclear debate on this issue.


This background note aims to provide clarity by outlining and describing a range of financial tools that are commonly discussed in the context of REDD+. These tools are neither new nor innovative, and have been employed countless times for climate change, infrastructure, development and many other sectors. The potential application of these tools for REDD+, however, is often less well understood. This paper aims to foster a common understanding of the financial tools that could be used to facilitate investment in REDD+ and the financial terminology related to those tools.


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