Results-based payments for REDD+: Lessons on finance, performance, and non-carbon benefits

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Key messages

  • Results-based finance is a cornerstone in the approach to REDD+, as outlined in the Paris Climate Agreement.
  • Results-based finance will need to consider not only carbon/emissions-related payments but also incentives for intermediate outputs (such as policy performance) in order to effectively reduce deforestation and forest degradation.
  • A major gap in the current guidance for REDD+ finance is a lack of clear, context-relevant criteria and metrics to help justify and mobilize payments.
  • Negotiation and agreement on performance outputs and outcomes and their indicators are critical to ensuring national/local ownership and compliance.
  • Understanding the variation in costs and who is bearing the different costs of REDD+ will be critical in setting payment levels that can incentivize both carbon-effective and equity outcomes.

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DOI:
https://doi.org/10.17528/cifor/006108
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