US Government Investments and Policies to Facilitate Forest Carbon Finance and Markets
In October 2011, the U.S. launched its REDD+ program followed by USAID launching its Climate Change and Development Strategy in January 2012. The U.S. Government also pledged US$ 1 billion in “fast start financing” between 2010 and 2012 to support the development of REDD+, including assistance in promoting markets for REDD+.
The purpose of this report is to identify how U.S. Government investments and policies could facilitate and catalyze private and public sector investment in the buying and selling of forest carbon credits, and incentive their overall involvement in the process to make REDD+ a successful program. Priority areas identified in the report to catalyze private sector investment include Pay-for-Performance Purchase Facilities, Sources of Capital, Risk Management, and Scaling and Standardizing.
Excerpt from the report:
Since the publication of the Meridian Report (Angelsen et al, 2009), an analysis of REDD+ as a mechanism for emission reduction funded by the Government of Norway, much of the focus on how REDD+ will be implemented and ultimately financed has followed the three phase approach detailed in the report:
- Phase 1: Readiness and capacity-building, accompanied by pilot and demonstration activities;
- Phase 2: Reform and implementation of national policies and REDD+ strategies; and
- Phase 3: Pay-for-performance based on reductions in deforestation levels.