REDD Finance Mechanisms TFD Background Paper1 Prepared by Markku Simula Summary

This paper aims to provide an overview of the current and proposed financial mechanisms for implementing projects leading to Reduced Emissions from Deforestation and Degradation (REDD) under the UNFCCC framework, and to identify fracture lines and commonalities between stakeholders over those mechanisms. The purpose is to provide information which can help stakeholders identify obstacles and possible solutions for developing common views for implementing REDD financing schemes. Selected aspects related to the scope of REDD, financing mechanisms and sources, benefit sharing and participation as well as reference levels, eligible activities, measurement, reporting and verification are discussed. A tentative identification of commonalities, divergences and fracture lines in stakeholder views is made to facilitate focusing of the TFD dialogue in New York City, USA, from 25-26 April 2009