REDD+

Reducing Emissions from Deforestation and Forest Degradation (REDD) is a mechanism to use financial incentives to reduce deforestation and forest degradation.  Developed by the United Nations Framework Convention (UNFCCC) on Climate Change, REDD is unique compared to other forest conservation approaches in at least three regards: (1) REDD focuses on climate change mitigation, recognizing that deforestation contributes to atmospheric carbon dioxide emissions as much as at least half of all of the world’s transportation activities; (2) REDD is a large-scale, global effort funded by both donor governments and private investors in excess of $30 billion per year (the bulk of which is for capacity-building); and (3) REDD involves “conditionality” (requires a set of conditions be met) in that governments and individual projects are regularly assessed based upon established protocols for monitoring, reporting, and verification (MRV), and will only continue to be compensated based upon project performance at reducing emissions or storing carbon.

The distinction between the terms deforestation and degradation is important because each case – whether it’s a land use change to non-forest (deforestation), or impacts that diminish carbon storage without land use change (degradation) – involves different monitoring protocols.

In 2007 the UNFCCC defined a new version of the standard, REDD “plus” (REDD+) as “Policy approaches and positive incentives on issues relating to reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries.”  Thus REDD+ not only includes conservation activities but also improved forest management and reforestation, among others.

Financing for REDD+ activities currently occurs via three mechanisms.  One is government to government fund-based transfers to build capacity for countries and smaller jurisdictions.  Another is private voluntary offset sales of carbon credit offsets via voluntary registries and standards, including Plan Vivo and the Verified Carbon Standard (VCS) to individuals, organizations, and businesses interested in offsetting their carbon emissions.  The third and least developed is compliance offset credit sales from regulated companies in emission intensive industries to project developers. 

The California compliance market is an emergent compliance market which may allow sales of offsets from forest carbon projects in Chiapas, Mexico.  EcoLogic has partnered with Na’ Bolom, a local cultural and environmental nonprofit, to develop a forest carbon project for the Lacandón forest in the Cojolita mountain range in Chiapas.