Guidance and Best Practices for REDD+ Transactions

Brennan, K., Durschinger, L.
January, 2013

This paper, as developed by Terra Global Capital, is meant to serve as a readable guide for projects seeking guidance and best practices for REDD+ transactions, with a focus on private sources of REDD+ project financing.

“REDD” refers to the emissions reductions achieved from reducing deforestation or forest degradation in developing countries. Through REDD, emissions reductions through stored carbon are measured and certified as credits that can be sold on global carbon markets. “REDD+” expands that definition to include conservation, sustainable management of forests and enhancement of forest carbon stocks.

While markets have successfully tied carbon finance to other sectors, securing private investment remains a key challenge for REDD+ project developers. In many cases, project developers lack familiarity with standards and expectations for commercial documents required by investors. This paper is intended to address that gap.