This paper is designed to provide high level guidance to governments who are interested in attracting private investment to finance activities being implemented within the context of a national or subnational REDD+ program.
The estimated amount of finance needed to halt deforestation globally through sustainable agriculture and REDD+ is US$200 billion annually, of which current funding levels are around US$1 billion mostly provided from donors, governments and other non-private investor sources. This leaves a large gap that needs to be sourced through the financial sector and market-based investments.
To attract these private investments to sustainable agriculture and REDD+, governments and business/project owners are going to have to make it appealing to these investors. This paper outlines 7 key components that governments can adopt to maximize opportunities to attract private sector investors:
- Recognize and promote projects within national/subnational REDD+ programs
- Create REDD+ related policies and processes that drive private sector investments
- Implement frameworks for stakeholder engagement, safeguards and monitoring of non-GHGs to meet private sector priorities
- Structure mechanisms for attributing/recognizing results that incentivize emission reductions and removals and provide predictable revenue streams
- Adopt technically robust, spatially explicit methods for quantification and verification for GHG emissions from deforestation and degradation that applies at the national/subnational and project levels
- Apply processes for registration of REDD+ activities and elimination of double counting risk
- Create other opportunities to connect private sector with REDD+ actors on your country
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