Wednesday, 10 June    10.15 - 12.15

REDD+ & the private sector: Leveraging private sector finance for REDD+ implementation

Hosts:  UNEP, GCP, Environmental Defense Fund, Permian Global


Objectives: There is an urgent need to scale up REDD+ financing as part of the efforts to reduce CO2 emissions from forest activities. Constrained by high investment risks for the private sector and insufficient or unclear public financial infrastructures, maturity in REDD+ systems is still pending.

As leaders in the sector, the Green Climate Fund (GCF) and the Peruvian Government are building solutions that bridge the gap between public and private sector funding. In this interactive session, they seeked direct private sector feedback on their proposed approaches:

What needs to happen, from a private sector perspective, to meet the estimated 12 billion USD of necessary investment? How can the public sector ensure that initiatives follow through on their promises to increase private investment in REDD+? How can financing objectives be satisfied based on payments for performance?

During this session, both initiatives presented their plans and aim for synergies in creating investible REDD+ entities. In discussions with private sector counterparts, GCF and the Government of Peru seeked feedback on deal characteristics and modalities.


In particular the session aimed to:

  1. Identify deal characteristics that investors would be interested in.
  2. Create an understanding of modalities for mobilizing private sector finance through strategic public interventions
  3. Identify suitable jurisdictions with the right enabling environment to incentivize a private sector REDD+ environment.
  4. Find suitable financial tools and carbon metrics, which could be deployed in specific jurisdictions.
  5. Identify which bilateral/multilateral funding bodies would be able to implement/co-finance/de-risk investments.
  6. Identify private sector front-runners and other partners that can help tailor deals and build suitable environments.


Background reading:

Tool box papers – Loan guarantees and advance market commitments (upload attachment)