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WWW.UN-REDD.ORG

Last mile �to issuance

From REDD+ results to results-based finance

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Last mile to issuance: From REDD+ results to results-based finance

www.unredd.org

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Routes to REDD+ results-based finance

Bilateral results-based payments

e.g. Joint Declarations of Interest

Multi-lateral results-based payments

e.g. GEF

Regulated markets

e.g. PA Article 6, CORSIA

Voluntary markets

e.g. LEAF

Tropical Forests Forever Facility…?

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Last mile to issuance: From REDD+ results to results-based finance

www.unredd.org

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What is hindering countries’ progress to near-term issuance?

Insufficient incentives

High opportunity costs vs price points; elusive upfront investment; double conditionalities of market standards plus ERPA requirements; and… escalating transaction costs…

Transaction costs

      • Standards conformance – inherently demanding compounded by shifting goal posts; overemphasis on technical assistance; long-term capacity building not prioritized
      • Validation and verification – cost/procurement burden to countries compounded by under-capacitated validation and verification bodies
      • ERPA negotiation – inherently complex contracts compounded by no provisions for supply side legal counsel and overseas legal arbitration
      • Financial intermediaries – institutional capacity assessment cost burden to countries (domestic FIs) and inherently paternalistic (international FIs)
      • Jurisdictional REDD+ actors – some trying to do too much (too many roles along jREDD value chain); others left to piecemeal fill the gaps

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Last mile to issuance: From REDD+ results to results-based finance

www.unredd.org

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Steward the communication of solutions identified and achieved to a wider set of stakeholders, through a strategic, time-bound campaign that strengthens visibility, political support and partnerships for REDD+, with targeted advocacy, country and North–South campaigns, media engagement and outreach — using CoP31 as a launch pad and CoP32 as a landing zone

Validate the diagnostic — by rapidly documenting the state-of-the-art knowledge on breakthrough solutions to scale and accelerate issuance

Build the consensus — by operating a targeted problem-solving and market-connection service, using country clinics and roundtables, leveraging global and regional milestone events and existing fora

Steward the communication — of solutions identified and achieved to a wider set of stakeholders, through a strategic, time-bound campaign that strengthens visibility, political support and partnerships

www.unredd.org

What could UN-REDD do to facilitate breakthroughs?

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Last mile to issuance: From REDD+ results to results-based finance

www.unredd.org

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Discussion questions

Last mile to issuance

www.unredd.org

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How does the expanded diversity of results-based finance options compare to the enhanced complexity of accessing one or more of those options?

What are the key issuance bottlenecks that need to be resolved in order to streamline JREDD+ requirements to ensure scaled up, faster and more predictable access to results-based finance?

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How can UN-REDD, in concert with other actors and initiatives, contribute to constructive processes to resolve systemic bottlenecks that constrain countries’ ability to realise JREDD+ finance at scale?

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Last mile to issuance: From REDD+ results to results-based finance

www.unredd.org