Carbon-Plus Capital LLP is actively engaged in financing avoided deforestation projects, otherwise known as Reduced Emissions from Deforestation and Degradation (REDD) in Asia, South America and Southern Africa in a strategic partnership with the international conservation agency and REDD project development and implementation specialist Fauna and Flora International.
Reduced Emissions from Deforestation and Degradation (REDD)
The carbon funding mechanism to reduce deforestation and degradation in developing countries is referred to as the REDD (Reduced Emissions from Deforestation and Degradation) mechanism.
The form that this mechanism will take is still under discussion as part of the ongoing climate change policy negotiations through the United Nations Framework Convention on Climate Change (UNFCCC). However, the basic elements of the mechanism have been identifed, and are the subject of a growing number REDD-plus pilot projects around the world.
Although REDD projects are currently excluded from the US$63 billion regulated carbon market, they form a significant and increasing share of the voluntary carbon market. In 2007, the voluntary carbon market was valued at US$330million, an increase of 240% from 2006. In 2008 the voluntary markets transacted an estimated 123 million tonnes of carbon credits, valued at US$750 million tonnes, up from 65 million tonnes in 2007 .
For developing countries which still have large areas of forests remaining (under increasing threat) this offers a significant economic and conservation opportunity.
There are a number of risks as well as opportunities linked to carbon markets and at the 2007 UN climate negotiations in Bali it was proposed that projects aimed at achieving REDD should be piloted to see how they work on the ground. Further decisions and recommendations were made in Poznan in 2008, in Copenhagen in 2009 and in Cancun 2010.
There was clear intent in the Copenhagen Accord to get REDD going without delay. Among the commitments in the last-minute deal made between the leaders of USA, China, India and South Africa, the accord called for the “immediate establishment of a mechanism including REDD-plus – REDD projects that reduce greenhouse gas emissions from deforestation and forest degradation while promoting conservation, enhancement of forest carbon stocks and sustainable forest management”.
Whilst the agreements signed at Cancun do not set up binding commitments to reduce greenhouse gas emissions, they do make it clear that it’s necessary to reduce emissions from deforestation and forest degradation if reductions are to be achieved.
Project development and implementation
Together with our strategic partner Fauna and Flora International, Carbon-Plus Capital LLP is uniquely positioned to address the risks and opportunities in implementing REDD investments ensuring:
- Equity and fairness in the flow of benefits to local communities and landowners;
- The capacity of key stakeholders to engage with and participate in project design and implementation;
- The use of credible baselines to demonstrate the threats to forest destruction and the reductions emissions achieved;
- Projects do not simply shift the problem of habitat destruction elsewhere;
- Carbon finance will result in emissions reductions that would not otherwise have occurred;
- Project governance and management conforms to best practice standards of transparency and decision-making.