REDD+ seen positively by investors after ETS legislation

Australia and California have passed legislation allowing monetary value to be placed on carbon via the Emission Trading Scheme (ETS). There are reports that these legislations have made private investors optimistic about investing in REDD+ projects.

Critics have often said the REDD+ mechanism is still evolving and there are not enough demonstrational activities that are suitable for private investment. Now with Australia and California legislating on the ETS, there is renewed hope that the REDD+ voluntary carbon market will also become more conducive to private investments.

REDD+ projects must provide the private sector with “very professional, very result-oriented opportunities” to be able to attract investments, said Virgilio Viana, CEO of Amazonas Sustainable Foundation (FAS).

For now, the private sector must restrict itself to selling forest carbon in the voluntary markets and contributing funds to forest conservation or tree planting as part of corporate social responsibility programs.

“Until we start seeing that track record of success where the private sector can invest in demonstration projects, then it is hard to imagine a very fast scale up.” said Brer Adams Associate Director at Macquarie Global Investments.

Read more of THE PRIVATE SECTOR SEES OPPORTUNITIES FROM REDD + SCHEMES OF AUSTRALIA AND CALIFORNIA MARKETS here.