Policymakers around the world recognize the potential for natural land area to combat climate change: a total of 97 countries mentioned specific pla
ns to reduce emissions from deforestation or increase forest cover in their Paris Agreement commitments. As the international community and domestic lawmakers figure out how to cost-effectively meet their emissions reductions targets, many are looking to innovative mechanisms that channel finance towards enhancing the ability of forests and other natural land areas to absorb carbon from our atmosphere.
This report details this finance. In particular, we share the latest data and trends for three forest carbon finance mechanisms: voluntary carbon markets, compliance carbon markets, and payments for Reducing Emissions from Deforestation and Forest Degradation (REDD+) programs. The report covers the volumes and values of offsets transacted, key market actors, and relevant trends and policy developments for each of these mechanisms. We also include information about the projects that receive these payments, how they operate, and how they are influencing the communities and ecosystems around them.
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