REDD+ finance is at an inflection point: while short-term finance is available, disbursements are slow and investment opportunities scarce; at the same time, there is no adequate and predictable long-term strategy to meet the financial needs of REDD+. In the absence of ambitious climate change mitigation goals, for the foreseeable future most REDD+ finance will be mobilised by the public sector. During this interim phase, in which financing for REDD+ is likely to be fragmented and channelled through various agencies, it will be important to test a variety of financing options that leverage private sector finance and directly address the drivers of deforestation. Wealthier REDD+ countries with stronger institutions may opt to selffinance a significant part of REDD+. They may also choose to engage in results-based agreements with donors and international agencies. The more fragile states are likely to rely on official development assistance (ODA)- type finance, which combines financial support with technical assistance and policy guidance.
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Angelsen, A., Brockhaus, M., Sunderlin, W.D. and Verchot, L. (eds). 2012. Analysing REDD+: Challenges and choices. 111-128
Center for International Forestry Research (CIFOR)