REDD+ finance is currently channeled through a range of bilateral and multilateral sources. In general, however, the overall scale of finance is far below the estimated levels needed to halt and reverse tropical forest loss. As such, improved coordination of finance is essential to ensure that donor finance is being used effectively and efficiently in achieving REDD+ outcomes. This paper explores the linkages between two major sources of REDD+ finance – the Forest Investment Programme (FIP) and REDD+ performance-based payments – and provides options to improve the coordination of international REDD+ finance.
Recognizing the potential overlaps between the outcomes of the FIP and performance-based payments including the FCPF Carbon Fund, this report presents recommendations on three questions outlined by the FIP Sub-Committee:
- To what extent the sustainability of FIP results should depend on future carbon payments that may or may not materialize;
- The challenge of ascribing GHG emission reductions achieved with FIP finance to be included in payments for performance through other REDD+ programs – the issue of “double funding”; and
- Contributor concerns around financing the same results in the FIP that would be reported in a performance-based mechanism as their results – the issue of double results reporting.