The private sector is being called on to provide finance for REDD+ but businesses say they first need to see evidence of effective forest governance.
CIFOR Forests News, the blog of the Center for International Forestry Research (CIFOR), reports on a panel session that was held in Indonesia in June about engaging the private sector in REDD+ as part of UN-REDD Global Symposium.
While it was hoped that funding for REDD+ (reducing emissions from deforestation and forest degradation) would come from markets, to date most of the support has come from overseas development budgets.
Ravi Prabhu, Deputy Director General (Research) at the World Agroforestry Centre, says there is a need to “focus on creating the conditions within which the kinds of business we want to see flourish do flourish”.
The private sector needs to see good governance, including transparency, accountability, responsiveness, participation, equity and inclusiveness in order to invest, says the article. However, in a study of 7 REDD+ countries, CIFOR scientists found most have weaknesses in this area.
There is a need for REDD+ safeguards which identify and mitigate the risks associated with REDD+ projects. CIFOR’s Maria Brockhaus says “The use of safeguards can help mitigate or even prevent the negative impacts associated with investment in a climate of weak governance”.
Read the full story: Good governance is “critical” to engage the private sector in REDD+