New York, NY, 23 September 2019 — The Coalition for Rainforest Nations (CfRN) today announced the launch of the REDD.plus Platform, with the goal of rallying the world to finance the end of deforestation.
“REDD-plus has been very successful—more than 8.3 billion tons of CO2e emissions reductions have been reviewed under the Paris Agreement,” said Kevin Conrad, Executive Director of the Coalition for Rainforest Nations. “Unfortunately, less than 4% were financed by governments, like Norway. It’s long past time for businesses and individuals to do their part, and we’re enabling that.”
The REDD.plus Platform will allow individuals and the private sector to directly support forest owners, without expensive intermediaries. For the first time, REDD+ credits will be available to countries and corporations, empowering them to meet compliance regulations and emission-reduction goals.
Developing countries will now be able to meaningfully combat climate change while conserving the world’s last great rainforests.
The REDD.plus Registry will be operated by IHS Markit, designed to track ownership and the lifecycle of REDD+ credits compliant with the Paris Agreement.
“We have a ten year history of hosting forestry credits on our platform,” said Kathy Benini, Managing Director and Head of Environmental solutions at IHS Markit. “We applaud the Coalition for its vision and commitment to expanding REDD+ and bringing much needed registry and exchange connectivity to REDD+ programs.”
Global liquidity is fundamental to scaling climate finance, but has been inadequate to date. Green bonds are less than 1% of total non-financial credit outstanding, and only a fraction (around 2%) of that has gone to forests. Green finance in 2019 will still be less than a third of fossil-fuel financing.
“History has shown that moving away from bilaterally negotiated transactions to standardized, centrally cleared contracts dramatically scales market volume,” said Paul DeNoon, Senior Vice President at Alliance Bernstein and co-manager of the $20B Global High Yield Portfolio Fund. “But we also need to move past using forest carbon credits as a financial instrument for speculative gain. Rather, we must view them as a good being purchased—one that actually does good.”
“The REDD.plus Fund will be the first financial vehicle to bring bankable forest conservation projects to market, thereby monetizing carbon, like any other commodity,” said Patrice Lefeu, Partner at EY. “The fund will be underpinned by national GHG inventories and an online trading platform that allows anyone to become carbon neutral with a click.”
The REDD.plus Platform now provides the only high-quality “tradeable destination” for REDD+ credits earned by developing countries from the preservation of their rainforests.
The Coalition for Rainforest Nations helps tropical governments, communities, and peoples responsibly manage their rainforests. Healthy rainforests protect against a changing climate, generate
needed biodiversity, and provide safe habitats. Launched by Coalition members in 2005, the United Nation’s REDD+ Mechanism, designed to incentivize conservation and contribute to the battle against climate change, now includes approximately 90% of the world’s remaining rainforests. www.cfrn.org
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