United Nations Environment Programme Finance Initiative reports on REDD+
9 May 2011
A new report was published on 6 May called 'REDDy SET GROW Part 1 - A briefing for financial institutions: Opportunities and roles for financial institutions in forest carbon markets' (18 pages) by the United Nations Environment Programme Finance Initiative, a working group of UNEP.
The report recognises the value of forests in regulating climate change saying that 'current deforestation is its contribution of approximately one fifth of global greenhouse emissions'.
However, the report is speculative as it points up opportunities which may or may not materialise; as it says:
'There is at present no mechanism under the formal international climate change architecture to capitalise on emissions reductions from avoided deforestation. Such activities are possible only on voluntary carbon markets. There is at present no guarantee that such a mechanism will be put in place in the future; although the current UNFCCC agreements specify the set-up of an international REDD+ mechanism, it remains undecided how the implementation of concrete REDD+ activities will be financed and whether the mechanism
will be based on a system of tradable credits. Part 2 of this two part series, will make suggestions on such design options of the future international REDD mechanism that will ensure effectiveness in mobilising private finance and investment.'
(Page 7 of the report's Executive Summary).
View the UNEP FI press release or read the report (PDF)
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