Finance for REDD+ - European Forest Institute

Finance for
REDD+
Kate Dooley
FERN
EU REDD projects coordination meeting
July 2012
Une ONG œuvrant pour une plus grande justice sociale et environnementale, en se
focalisant sur les forêts et les droits des populations de ces régions au sein des politiques et
des pratiques de l'Union européenne.
Financing sustainable land use
• REDD was initially conceived with the
expectation of long term finance from
carbon trading
• Ideas that go beyond carbon trading are
needed for financing sustainable land-use
• As well as actions to end the financing of
destructive land use
• And recognise the limits to financial
incentives
Trends in the global carbon market
After five consecutive
years of robust growth,
the total value of the
global carbon market
stalled in 2010 at
$142 billion
…voluntary markets are an
infinitesimal fraction of
global carbon market
(0.02% by volume; 0.01%
by value)
Forest carbon markets are “unworkable as
currently constructed”
‘REDD+’ finance requires more
than a single model
• public/private credit for sustainable land
use
• development assistance for forest
communities
• a facility for financing land tenure reform
• demand-side incentives such as FLEGT,
at geographical scales
Public investment can enable
sustainable outcomes
Incentivising investment in REDD+ actions:
• Low cost loans / loan guarantees
• Tax incentives / concessions
• Bonds / off-taker guarantees (securitisation)
Only if public investment is used as an
enabler for ensuring sustainable
outcomes
Sustainability: Will mitigation efforts last longer
than performance based payments?
Resilience, biodiversity,
adaptative potential:
Social legitimacy
Preparing forests for
climate change impacts,
preventing fires and
erosion, buffering rain
Benefit sharing,
governance,
land tenure,
alternative livelihood
strategies.
Securing vital
ecosystem services:
food, water, energy
Clarification of rights,
duties and liabilities
Changing the economic
rationale in land use
Consistency between
addressing the drivers
and planning for the
provision and
consumption of goods
and services in a low C
development pathway
Cost efficiency
Questions for discussion?
• Public and private institutional investment
• Lessons from projects on sustainability
outcomes and monitoring of these
• Land use beyond forests – addressing the
drivers (agriculture; infrastructure; energy)
You will also find more information about
REDD and FLEGT and other related issues at
http://www.fern.org/
If you would like to receive further
information about the REDD and FLEGT
processes and how they are being
implemented, please contact
Kate Dooley
t +32 (0) 2 894 46 98
e [email protected]
Une ONG œuvrant pour une plus grande justice sociale et environnementale, en se focalisant sur les forêts et les
droits des populations de ces régions au sein des politiques et des pratiques de l'Union européenne.