Learning Lab in Latin America and the Caribbean highlights key progress in integrity finance for forests and climate.

Technical experts from across Latin America met last month to share best-practices and brainstorm ideas on climate action, carbon markets and scaling up results-based finance for forests protection. 

The three-day REDD+ Academy workshop in Peru’s capital Lima saw more than 90 participants attend, including government and other forest stakeholders from Argentina, Bolivia, Brazil, Costa Rica, Colombia, Chile, Ecuador, Peru, and Paraguay. 

The workshop’s main focus was on advancing climate action and scaling up finance for forests through knowledge-sharing and hands-on learning, with an emphasis on financing for carbon markets with integrity, nesting and benefits sharing. 

Setting the stage and how to scale finance 

The opening session of the workshop set the tone for the days ahead. After various participants briefly shared their experiences and knowledge on progress, key priorities and challenges related to finance for forests and climate, the Ministry of Environment (MINAM) from host Peru began a more in-depth presentation.  

The Peru delegation shared a detailed address on the country’s history and current context in implementing REDD+. The presentation also explored the challenges Peru faces, advances and lessons learned in the complex landscape of financing forests and climate initiatives. 

Following this, attendees examined how REDD+ aligns with Nationally Determined Contributions (NDCs) and National Biodiversity Strategies and Action Plans (NBSAPs), addressing the opportunities and hurdles in integrating these frameworks.  

REDD+ serves as a critical bridge, linking climate action and biodiversity conservation by simultaneously addressing carbon emission reductions and forest preservation.  

This alignment is essential for advancing climate resilience while protecting biodiversity-rich ecosystems. It also promotes economic incentives, such as payments for ecosystem services, which can motivate local communities to adopt sustainable land-use practices.  

The integration of NDCs, NBSAPs, and REDD+ offers several key opportunities. It creates synergies between climate and biodiversity goals, fosters holistic policy approaches, and opens pathways for financial incentives that drive sustainable development.  

However, the opening session also highlighted significant hurdles REDD+ countries encounter. These included institutional fragmentation, where different government bodies have conflicting priorities – challenging coordination.  

Additionally, financial and technical constraints, particularly in developing countries, limit the scalability of integrated efforts. The need for robust data and monitoring systems was also emphasized by countries, as accurate reporting is crucial for transparency and accountability. 

To overcome these challenges, participants identified the following strategies: 

• Strengthening institutional coordination across sectors is vital to harmonizing national policies related to NDCs, NBSAPs, and REDD+. 

• International support, including funding mechanisms and technical assistance, can help address financial and capacity-building gaps. 

• Improved monitoring and reporting systems, particularly leveraging technology, are key to ensuring effective implementation. 

Examples offered by Ecuador and Colombia during the workshop also illustrated the benefits of aligning these frameworks. Ecuador’s REDD+ efforts in the Amazon, involving indigenous communities, have successfully integrated climate action with biodiversity conservation, while promoting economic incentives, officials said.  

Colombia said it had linked REDD+ with its NBSAPs, focusing on preserving critical forest ecosystems and leveraging both public and private funding to support long-term sustainability. These cases demonstrated the potential for REDD+ to enhance the integration of climate and biodiversity goals, while addressing both the opportunities and hurdles discussed during the session. 

The second session on day one included presentations from countries sharing their experiences in developing ​​​​forest and climate financing strategies. Some of the challenges faced by countries included the non-permanent funding sources, data gaps, limited institutional capacity, and weak coordination mechanisms.  Financial alternatives implemented by countries included developing national carbon tax instruments and diversifying their source of finance.  

The afternoon began with a session on financing schemes with REDD+, such as result-based payments, carbon markets, and cooperative approaches under Article 6 of the Paris ​​​​Agreement, where the cost for emissions reduction and ownership conditions were factors identified as key for choosing a funding scheme. 

The latter part of the first day also featured a "talk show" aimed at enhancing understanding of high-integrity carbon markets, with a special focus on jurisdictional REDD+ programs.  

Daniel Ortega, Co-chair of the ICVCM Expert Panel, acted as the host of the “Carbon Market Show,” emphasizing in his opening speech the need to carefully assess legal, social, economic, and political factors before making long-term commitments under an Emission Reduction Purchase Agreement (ERPA). These agreements are standard legal tools where buyers and jurisdictions negotiate the sale and purchase of carbon credits, taking into account various factors such as financing, safeguards, and legal requirements. 

To further explore the complexities of ERPAs, Ortega was joined by three prominent experts Mauro O’ de Almeyda, Secretary of Environment for Para state in Brazil, Santiago García of the Environmental Defense Fund and lawyer Ludovino Lopes addressing legal considerations. 

Following the panel discussion, participants engaged in an exercise examining controversial clauses within a hypothetical ERPA, allowing them to familiarize themselves with these contracts and debate challenges governments might face.  

Key conclusions from the session highlighted sensitive ERPA aspects requiring thorough analysis. These included: 

1. Politics: Selection of carbon standards (ART-TREES, JNR-Verra), upfront financing, and standardized ERPA templates with fixed clauses. 

2. Legal: Negotiations over arbitration, conflict resolution, applicable jurisdictions, financial intermediaries, and the legal nature of carbon credits. 

3. Safeguards and Carbon Pricing: Agreement on pricing mechanisms, environmental and social safeguards, and the need for Free Prior and Informed Consent of Indigenous Peoples and local communities. 

Participants left with a clearer understanding of the nuances involved in ERPAs and the strategic considerations required for successful negotiations. 

The final session of the day highlighted the progress and challenges faced by Indigenous Peoples in Peru regarding direct access to financing. This featured a discussion panel led by Tabea Casique Coronado, Indigenous Leader of the Asheninka People of Ucayali Atalaya and National Secretary of AIDESEP, Fermin Chimatani Tayori, Indigenous Leader of the Harambut People, President of ANECAP, and Latin American Representative on the Advisory Council of the IC VCM and IPLC Forum, as well as a member of the IPLC Advisory Group of the TREES standard, Jhonatan Gonzales Urquia, Member of the Executive Board of CONAP and Berioska Quispe, Director of Climate Change of the Ministry of Environment of Peru.  

They debated strategies to combine different funding schemes and overcome barriers to managing these critical resources. 

A key point was the cooperation between Indigenous Peoples in Peru and the government, particularly with the Ministry of Environment, to create the first Indigenous Jurisdictional REDD+ Strategy under the REDD+ Indígena Amazónico (RIA) approach. This strategy, fully led by indigenous communities, is based on the High Forest, Low Deforestation (HFLD) model, which acknowledges the efforts of Indigenous Peoples in conserving vast forested areas while maintaining low deforestation rates. 

The session also addressed the financial sustainability of these projects. Indigenous Peoples, through organizations such as AIDESEP, ANECAP, and CONAP, have successfully accessed funds from international mechanisms like the Forest Investment Program (FIP) and the Green Climate Fund (GCF), in collaboration with local partners, the government, and other strategic allies. However, they continue to face significant barriers, such as limited direct access and the complexities of financial mechanisms. 

To overcome these challenges, strategies were proposed, including strengthening indigenous communities' capacity to manage financial resources and promoting indigenous enterprises in key sectors like native cacao and nuts. These initiatives aim not only to mitigate climate change and conserve biodiversity but also to improve the livelihoods of indigenous communities. 

Deep dive into nesting and benefit sharing systems 

The second day of the Lab focused on the concept of "nesting" within REDD+ frameworks – aligning accounting approaches across different scales and types of finance, with a focus on governance aspects and safeguards.  

The morning session began with an in-depth exploration of the REDD+ Academy Learning Journal on nesting, covering its core aspects and including an exercise with a decision tree. This map was introduced to guide policymakers in assessing whether nesting is needed, what type of approach is suitable, and how to address governance, safeguards, and carbon accounting.  

Recommendations emphasized enhancing institutional capacity and aligning smaller-scale projects with national frameworks to ensure coherence and maximize climate finance opportunities.  

Peru’s representatives provided a detailed account of their own nesting process. D​​espite significant progress, key challenges shared included managing diverse stakeholders, lengthy participatory processes, shifting political contexts, and limited financing for nature-based solutions 

The afternoon sessions discussed best practices, challenges, and lessons learned in the process of constructing and operationalizing REDD+ benefit-sharing systems that contribute to generating new outcomes in greenhouse gas emission reductions and maximizing social and economic impacts.  

Participants engaged in interactive debates on successful experiences with REDD+ result-based payments in Ecuador, Costa Rica, Argentina, Chile, and forest-rich state of Acre in Brazil. Examples were cited of the inclusion of Indigenous Peoples and local communities in jurisdictional REDD+ programs and in accessing new climate financing. 

The day concluded with an interactive questionnaire session, where countries mapped their priorities regarding forest management and climate action, identifying financial opportunities and challenges in aligning national policies with international commitments.  

During the second day, a showcase of indigenous crafts and local conservation initiatives was held emphasizing the importance of integrating Indigenous Peoples and local communities into global REDD+ efforts, as well as benefits for livelihoods that can be secured through actions to conserve and sustainably manage forests. 

Hot topics and strategic priorities ahead of COP30 

The final day of the REDD+ Academy spotlighted the practical application of a REDD+ standard and outlined future strategic priorities. The session was led by Lucía Madrid, Associate Director of ART-TREES, who facilitated a hands-on exercise exploring two crediting approaches under the TREES standard, the TREES crediting approach and the  High Forest, Low Deforestation (HFLD) crediting approach. 

This interactive exercise was both insightful and practical, especially for a technical subject like this. The HFLD crediting approach holds particular significance for several national and subnational jurisdictions in the region that have high forest cover and low deforestation rates. ART-TREES’ methodological framework could unlock new funding from carbon markets for these regions, because traditional crediting approaches do not account accurately for the increasing deforestation risks they are facing.  

HFLD status is especially vital for many countries in Latin America and the Caribbean (LAC), which are home to large tracts of tropical forest critical for biodiversity and climate mitigation. Countries such as Guyana and Suriname benefit significantly from the HFLD mechanism, which offers financial incentives to preserve their forest cover. This helps alleviate economic pressures that could otherwise lead to deforestation. By recognizing the ongoing efforts to contain deforestation, the HFLD approach fosters sustainable development while safeguarding crucial carbon sinks in the region. 

Following the practical session, participants engaged in bilateral meetings and technical consultations, creating space for more focused discussions. The day also featured a series of thematic roundtable discussions, where various stakeholders exchanged experiences and insights.  

One group focused on the participation of Indigenous Peoples and local communities in forest monitoring and co-benefits, highlighting innovative technologies and the challenges of integrating environmental integrity data into monitoring, reporting, and verification (MRV) systems. Another roundtable addressed the incorporation of biodiversity considerations into REDD+ as countries prepare for COP16, discussing both opportunities and hurdles in aligning biodiversity goals with REDD+ strategies. 

Further discussions centered on the safeguards requirements for voluntary carbon market programs, particularly ART-TREES and Jurisdictional & Nested REDD+ Framework (JNR), where participants examined the process of establishing safeguards and the challenges of integrating these into national safeguard information systems (SIS).  

Finally, an open-ended roundtable, moderated by UN-REDD, allowed participants to bring forward new ideas, including the experience of Peru in the Interfaith Rainforest Initiative, and experiences in Paraguay of ensuring a gender approach in payment for environmental services schemes.  

Scaling up finance and building towards a successful COP30 

As the event drew to a close, participants reflected on the key messages that emerged throughout the three days.  

One of the most powerful statements delivered was: "La clave del éxito radica en la integridad de nuestros compromisos y en la coherencia de nuestras acciones. No basta con prometer; debemos actuar" (The key to success lies in the integrity of our commitments and the consistency of our actions. It is not enough to promise; we must act). This statement resonated with the room, as the discussions increasingly focused on the need to accelerate climate action ahead of COP30 in Belém and the 2030 target for zero deforestation and restoration. 

The consensus was clear: achieving deforestation-free goals by 2030 will require stronger international cooperation, while financial mechanisms must be aligned with national policies. Participants called for greater ambition in strengthening NDCs and ensuring that the financial resources made available through climate funds are efficiently mobilized. 

A key theme for the event was the need for diversified and scalable financing solutions to meet these ambitious targets. Aligning governance, safeguards, and accounting systems across different levels of government and international partnerships will be critical to delivering high-quality emissions reductions with integrity.  

The event demonstrated the region's potential to lead by example, showcasing effective implementation plans and innovative approaches to climate finance.