Challenges and lessons learned for REDD+ finance and its governance

Area of Science:

• Climate Change Mitigation
• Forestry Economics
• Environmental Governance

Background:

• The Reducing Emissions from Deforestation and Forest Degradation (REDD+) framework was established under the UNFCCC to mitigate climate change through forest conservation in developing countries.
• Finance is critical for REDD+ implementation, with diverse sources and mechanisms supporting activities globally.
• Despite its importance, a comprehensive understanding of the challenges and lessons learned in REDD+ finance and governance remains incomplete.

Purpose of the Study:

• To review literature on challenges and lessons learned for REDD+ finance and governance.
• To analyze REDD+ finance aligned with the UNFCCC and REDD+-related finance outside the UNFCCC.
• To identify common challenges and propose areas for improvement in REDD+ financial mechanisms.

Main Methods:

• Literature review of REDD+ finance and governance.
• Analysis of challenges in UNFCCC-aligned and external REDD+ finance.
• Identification of key elements and lessons learned regarding public and private finance in REDD+.

Main Results:

• Challenges within UNFCCC-aligned REDD+ finance include enhancing performance through public finance, results-based payments, and jurisdictional approaches.
• Challenges for REDD+-related finance outside the UNFCCC involve increasing private sector engagement, particularly at the project level, and clarifying the role of voluntary carbon markets.
• Common challenges include linking REDD+ to carbon neutrality, deforestation-free supply chains, nature-based solutions, and developing effective learning systems.

Conclusions:

• Addressing the identified challenges in both UNFCCC-aligned and external REDD+ finance is crucial for effective climate change mitigation.
• Strengthening the integration of REDD+ with broader environmental and economic objectives is essential for maximizing its impact.
• Developing robust learning systems is vital for adaptive management and continuous improvement of REDD+ finance and governance.