One of the main prerequisites for national REDD+ systems to function effectively is for REDD+ countries to have the ability to receive, manage and redistribute performance payments in a transparent, equitable and accountable manner.
This is necessary in order to gain the confidence of international investors and local stakeholders alike, and will help ensure the delivery of emission reductions/carbon removal and the desired predictability of performance payments. Such confidence is needed to create a “virtuous circle” of performance and payments that leads to improvements in the way forest resources are used and to sustainable development outcomes.
To support these efforts, the UN-REDD Programme has made “Transparent, equitable and accountable management of REDD+ payments” one of its six priority key work area in its five year strategy and Outcome 3 of its Support to National REDD+ Actions: Global Programme Framework document. UNDP is the lead agency for this work area.
These activities will evolve as an increasing number of countries progress through the phases of readiness and constitutes support to article 73 of the Cancun Agreements. It is integrated, both strategically and programmatically, with activities on governance on engagement of Indigenous Peoples, local communities and other relevant stakeholders, as well as the work led by UNEP on ensuring multiple benefits of forests and REDD+.
Transparent, equitable and accountable management includes a number of considerations, from the receipt of funds at the national level to their social impact on the ground. Key elements include:
- Whether the funds are managed by institutions with adequate accounting and fiduciary integrity to sustain the confidence of international investors and national stakeholders
- The way in which these funds reach the local rights holders and appropriate stakeholders through equitable and timely benefit distribution systems (BDS), ensuring that they continue to incentivize good forest stewardship while generating livelihoods and job opportunities;
- Reduction of corruption risks, which may take differernt shapes in the readiness and the implementation phases of REDD+;
- Strengthened contribution to poverty-reduction from the distribution of REDD+ benefits, by building on inclusive growth approaches;
- The gender dimension for REDD+ benefit- sharing and other outcomes is taken into account