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Financing REDD+

Financing REDD+
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.

Authors: Streck, C.; Parker, C.

Publisher: Center for International Forestry Research (CIFOR), Bogor, Indonesia

Publication Year: 2012

Source: Angelsen, A., Brockhaus, M., Sunderlin, W.D. and Verchot, L. (eds) Analysing REDD+: Challenges and choices. 111-128

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