ABSTRACT
If the USA – either through an integrated regional approach or via a federally implemented cap-and-trade system – develops a mechanism to support Reducing Emissions from Deforestation and Degradation (REDD)-based carbon reduction projects, there will be great promise for REDD+. Emerging demand for REDD+ projects will come from voluntary donations, alternative investment firms, and companies driven by compliance obligations. The two most prominent international institutions for REDD are the United Nations REDD Programme and the World Bank's Forest Carbon Partnership Facility (FCPF). The FCPF has created a framework and processes for REDD+ readiness, which helps countries get ready for future systems of financial incentives for REDD+. Emerging financial innovations will enable a wider range of investors – such as institutional investors and high-net worth individuals – to participate in REDD+ projects and this will facilitate the scaling-up of REDD+ finance.
