Evolution of Finance for REDD+ in the UK: A History and Overview of the UK Government’s Engagement with Forest Finance, with a Focus on Performance-Based Payments for REDD

This paper offers a perspective on the political factors that have influenced the size, nature, and timing of UK commitments to forest finance, specifically the significant and committed finance being programmed under the International Climate Fund (ICF), during a time of austerity in the UK. In particular, the paper analyzes opportunities and constraints (past, current, and future) related to the channeling of funding through performance-based mechanisms, such as REDD+.

This paper explores how the UK government has channeled finance under its International Climate Fund (ICF) – the primary vehicle for forest finance – and how it has integrated results-based payments into its funding decisions. This analysis is based on a combination of desk research and expert interviews. A wide range of stakeholders with in-depth knowledge of forest finance in the UK were consulted, including current and past government staff, as well as representatives of NGOs and the private sector. Desk research included a review of information on UK forest aid projects, government-commissioned reports, NGO reports and position statements, and media coverage.