In 2010, the parties to the UNFCCC agreed that developed countries should support developing nations as they design and implement their national REDD+ strategies, policies, and action plans. This relates to the readiness phase of REDD+ and includes support for capacity building.
In 2011, the parties to the UNFCCC also agreed that results-based REDD+ payments to developing countries ‘may come from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources’. The parties also agreed that funding should support and strengthen governance, the application of REDD+ safeguards and the multiple functions of forests.
A work programme on results-based finance was launched in 2013 and concluded as part of the Warsaw Framework for REDD+. Among its recommendations the work programme encouraged financing entities, including the Green Climate Fund, to channel adequate and predictable results-based finance in a fair and balanced manner. It also recognised the importance of incentivising non-carbon benefits and established an information hub on the REDD Web Platform, to publish information on results and corresponding results-based payments.
However, the debate within the UNFCCC on the sources of result-based finance was not resolved by the Paris Agreement in 2015. It is therefore yet unclear how public and private funds will be mobilised for REDD+ in the longer term and whether there is a role for carbon markets in relation to REDD+.
In the absence of a regulated market, some REDD+ projects chose to generate carbon credits to sell on the voluntary carbon market to companies, individuals or organisations that wish to offset some or all of their greenhouse gas emissions because of concerns about climate change.
An overview of EU support to combat tropical deforestation between 2006 and 2014.