This chapter provides a basic overview of financing issues that have been heatedly debated over the past seven years concerning REDD. It presents basic information about market and fund options, and why a hybrid approach to financing AD activities may make the most sense at this point.
The REDD market premise
REDD is premised on the need for major amounts of finance coming from traditional ODA sources. The anticipation has been that markets – both compliance and VCMs – will provide the principal source for funding.
Delivering REDD finance has taken more preparatory work, capacity, and tailoring than initially envisaged, as the twenty-four Northern, Annex II countries have been trying to balance climate and development objectives, ...