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Decision Support Tool on Incentive Allocation for REDD+ Accounting

Decision Support Tool on Incentive Allocation for REDD+ Accounting

28 December 2015

Under the UNFCCC, REDD+ countries are required to develop approaches that operate at national scale. Many countries already have in place or are establishing subnational and project-level REDD+ activities for building capacity for REDD+ implementation or generating early emissions reductions and removals in defined geographical or administrative areas. To move towards a complete national REDD+ framework, projects and subnational efforts need to be integrated into national systems. The development of such integrated REDD+ systems will require consideration of how incentives will be allocated.

Incentive allocation is a central component of REDD+ and involves the transfer of monetary or non-monetary incentives to enable or motivate actors to implement activities that result in emissions reductions or removals. Though upfront finance is often required to cover start-up costs of activities aimed at generating carbon revenues, REDD+ incentives at the national level and within projects are received in return for achievement of results in terms of CO2 emissions reductions and removals measured against a baseline. These results-based payments will need to be distributed to lower levels in an economically efficient, equitable, and environmentally effective manner, either in return for emissions reduction or some other related measure.

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