- 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.
Topic: REDD+, climate change, carbon, emission, finance
Series: CIFOR Infobrief no. 138
Publisher: Center for International Forestry Research (CIFOR), Bogor, Indonesia
Publication Year: 2016Creative Commons Attribution 4.0 International License.