Interim REDD+ Finance

 Current Status and Ways Forward for 2013 – 2020

Towards the end of 2012, and the conclusion of the first three year period of ‘fast start finance’, The Prince’s Rainforests Project commissioned a paper to assess the current status of interim REDD+ finance, and ways forward for 2013 – 2020. This paper can be seen and downloaded here.

The first section of the paper sets out why tropical forests matter; why forests remain under threat; and the methodology (over 70 interviews with REDD+ stakeholders in donor and rainforest countries) on which the paper is based.

The second section provides a quantitative and qualitative snapshot of the first three years of interim REDD+ finance (2010 – 2012): what has been achieved; what difficulties have been experienced; where consensus lies with respect to improved REDD+ finance disbursement; and five illustrative case studies of good practice.

The third section of the paper makes a series of proposals with respect to the future of REDD+ finance in the post-2012 period, including ways in which to: (i) clarify a vision of REDD+ and how it can best be achieved; (ii) catalyse longer-term funding; (iii) build the international community’s momentum on REDD+ to 2020; and (iv) leverage and engage private sector finance.

The paper makes twelve core recommendations, summarised as follows:

1. Clarify a vision of REDD+ and how it can best be achieved;

2. Catalyse longer-term funding;

3. Integrate REDD+ intro broader rural and economic development frameworks;

4. Reward innovation and success;

5. Ensure that funding is effectively deployed;

6. Engage the private sector;

7. Focus on complementarities, not differences, of approaches;

8. Demonstrate and build confidence in REDD+;

9. Focus on strengthening enabling environments;

10. Keep it simple;

11. Be flexible;

12. Be willing to take risks and build an ambitious vision for the future.

It is hoped that the paper can contribute constructively to the deliberations of colleagues working on REDD+ internationally.


Two Years On: Is Interim REDD+ Finance Being Delivered as Needed?

Annex I countries have pledged $4.5 billion in ‘Fast Start Finance’ for Reduced Emissions from Deforestation and forest Degradation (REDD+) activities for the 2010-2012 period.  These interim finance commitments have the potential to build the capacity and implement frameworks and policies to enable REDD+ in a timeframe of months and years, rather than decades.  Given the size of the economies concerned, and the vested economic interests involved in business as usual development trajectories, $4.5 billion is a small sum and it will need to be applied strategically to maximise impact.

Concerns have been raised that monies pledged by Annex I governments to support REDD+ efforts are not being disbursed to rainforest nations on a timely and strategic basis.  Without implementation of Annex I commitments, it is likely that the political will in rainforest nations to redirect their economies toward an alternative low carbon, long term development path will decline.

The ISU has commissioned a paper that aims to shed light on where and why problems are occurring in respect to disbursal of interim finance from Annex I governments (often for understandable reasons), and offer solutions to overcome these problems.  The paper collates the views of representatives of rainforest and Annex I governments, financial intermediary organisations and civil society that were interviewed for this consultative review.  It is hoped that this paper can be used as a basis for a solution-focused dialogue between key stakeholders ahead of the next Conference of the Parties under the United Nations Framework Convention on Climate Change (UNFCCC) in Durban in December 2011.

The paper can be viewed here.