Forest Carbon Pricing
Pricing forest carbon and putting in place the means and channels to pay for it are necessary conditions to achieve the 2030 mitigation goals. Yet, after more than 15 years of discussion, payments for emissions reductions from forests continue to be unreasonably low, both in terms of price and volume. At the same time, mechanisms already proven in other sectors to increase the catalytic effect of public funds and the participation of the private sector are mostly absent from the toolbox for fighting deforestation and forest degradation. This must change fast. Below is a summary of the main findings from this report: We are in an existential crisis, but forests can deliver for people and planet.
1. HIGH-QUALITY AND HIGH INTEGRITY EMISSIONS REDUCTIONS (ERS) FROM REDD+ ARE COSTEFFECTIVE, BUT THEY ARE NOT CHEAP.
2. SECURING FAIR COMPENSATION FOR FOREST CARBON IS LINKED TO INCREASING THE VOLUME OF TRANSACTIONS OF ERS FROM REDD+ ON COMPLIANCE MARKETS.
3. THE ADOPTION OF (ALREADY EXISTING) PRICING INSTRUMENTS CAN SIGNIFICANTLY INCREASE THE LEVERAGE EFFECT OF PUBLIC FUNDS TO MOBILIZE PRIVATE FINANCE AND GROW THE SUPPLY OF ERS FROM REDD+.