More action is needed to align forest finance with its mitigation potential.
• Align public budgets and fiscal policies with objectives to halt deforestation. Reform subsidies to provide benefits for forests and other sustainable development goals and include environmental and social safeguards.
• Mobilize private-sector funding to leverage the growing interest in carbon markets, carbon pricing mechanisms, and other sustainable investments in conservation or sustainable forest use.
• Consider the use of border measures for carbon to generate revenues to invest in forest mitigation goals.
• Create dialogues between results-based REDD+ donors and forest countries to harmonize and simplify requirements, making them more applicable to individual country contexts.
• Develop new up-front financing mechanisms that can complement results-based REDD+ programs.
Private sector must
• Improve the transparency of investments by assessing and disclosing the risks and benefits they pose to forests for activities such as infrastructure, mining developments, and the production of forest-risk commodities.
• End investments into deforestation-linked practices to accelerate global progress towards deforestation-free supply chains.
• Explore opportunities to invest in jurisdictional forest programs to strengthen governance and support participation in results-based payments and carbon markets.