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The Private Sector in the REDD+ Supply Chain: Trends, challenges and opportunities (Policy Brief)

Florence Bernard, Scott McFatridge, Peter A. Minang

The private sector encompasses a diverse set of players, including local REDD+ project developers, multinational companies, carbon regulated companies, local or specialist international investment banks, GIS service and technology providers, extractive industries, consulting firms, and many others, all of whom vary in terms of scale, geographic location, expertise, motivations, and degree of influence exercised on other links within the REDD+ supply chain. Several strategies for enhancing private sector participation and investment in REDD+ are promising—in particular, increasing the demand for REDD+ credits in compliance markets, allowing private stakeholders to receive direct performance-based payments under a nested framework, and promoting greater collaboration between the public and private sectors—provided that an enabling policy and regulatory framework is put in place. Finding effective ways to incorporate extractive industries into the REDD+ supply chain is also critical. Public multilateral and bilateral finance will still have a very important and complementary role to play, in order to ensure that developing countries with more challenging investment needs and environments are not left behind.

 

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