Quantifying REDD+ and forest-related finance is challenging from a methodological point of view due to the lack of formal criteria for what constitutes REDD+ finance. A study published by the Center for Global Development in 2014 estimated the total global financing for REDD+ at about USD 9.8 billion, 90% of which was from the public sector.
After Norway, the European Union and its member states are the main sponsors of REDD+, providing about 30% of the global total. They support REDD+ as a measure to preserve and strengthen the role of tropical forests in climate change mitigation, adaptation and development. From 2006 to 2014, the EU and its member states provided EUR 3 billion in support of REDD+ activities. This support covered a wide range of thematic areas, countries and funding channels.
In addition to support from its member states, the EU finances REDD+ activities through:
- The Global Climate Change Alliance+ initiative, which helps developing countries to mitigate and adapt to climate change, in support of the achievement of the Sustainable Development Goals. The alliance focuses on the least developed countries.
- The EU REDD Facility, which provides support to improving land-use governance as part of developing countries’ efforts to slow, halt and reverse deforestation. The Facility also supports the overall EU effort to reduce its contribution to deforestation in developing countries.
Beside the European Union, the major contributors to the REDD+ implementation in developing countries are Germany, Japan, Norway, the United Kingdom and the United States. Each focuses its support for REDD+ according to its own priorities:
- Germany focuses its support on the biodiversity benefits of REDD+, and on delivering technical assistance to REDD+ countries. Germany’s REDD+ Early Movers programme promotes forest conservation and strengthens result-based payments for reduced emissions in countries that have already taken independent action to mitigate climate change.
- Japan’s support has focused on building capacity for monitoring, reporting and verification, and on technology transfer.
- Norway has made large-scale commitments to REDD+ financing as part of its International Climate and Forest Initiative, aiming at contributing to early actions for measurable emission reductions from deforestation and forest degradation.
- UK finance for REDD+ focuses on forest governance, including FLEGT (forest law enforcement, governance and trade), commodities, markets and the role of the private sector.
- US funding for REDD+ features market-based approaches, a strong role for global conservation organisations and commodity supply chain initiatives, such as the Tropical Forest Alliance 2020 (with the Netherlands, Norway and the United Kingdom).