Global markets have failed to value standing forests, instead felling trees for wood products, clearing them to grow agricultural products, or using cleared land for other ‘development’ options.
That was until REDD+ was introduced. Now enshrined in the Paris Agreement, REDD+ is designed to pay for results – emission reductions or removals. This means that rainforest countries must cover all of the associated up-front costs necessary to achieve those results.
Thus, the REDD+ Catalytic Fund, seeks to provide bankable up-front funding that will be repaid from the proceeds from the finance provided for results. By providing advanced capital, the fund seeks to be complementary to the Green Climate Fund and other Funds which only pay for REDD+ results.