The Green Climate Fund (GCF) announced on Tuesday that it has adopted a transformative new policy on Reducing Emissions from Deforestation and Forest Degradation (REDD+) results-based payments, providing crucial support for forest finance.
This decision, made at the GCF Board’s 40th meeting, solidifies the integration of REDD+ payments into the GCF’s standard project cycle, promising more predictable financing for developing nations that curb deforestation and emissions.
The GCF—the world’s largest climate finance institution, and a critical element of the Paris Agreement—is dedicated to helping developing countries achieve their Nationally Determined Contributions (NDC) goals and transition toward low-emission, climate-resilient pathways.
REDD+ incentivizes countries to lower emissions by compensating them for verified reductions, making it an efficient financing tool for climate action.
Beyond carbon reduction, REDD+ also promotes sustainable forest livelihoods, biodiversity conservation, and ecological benefits, enhancing resilience against climate impacts.
Relevant: New Report Forecasts Price Of Jurisdictional REDD+ Credits To Reach $15 In 2028
The newly adopted policy raises payment rates to $8 per ton—up 60% from prior payments—highlighting the environmental value of forests.
The GCF anticipates this adjustment will funnel hundreds of millions of dollars toward eligible countries over the 2024–2027 programming cycle.
Eligible recipients include Small Island Developing States (SIDS) and Least Developed Countries (LDCs), which often face heightened climate vulnerabilities.
By embedding REDD+ into the GCF’s program, the policy aligns results-based payments with GCF’s existing frameworks, including its Gender Policy, Indigenous Peoples’ Policy, and environmental and social safeguards, as well as the Cancún Safeguards under the United Nations Framework Convention on Climate Change (UNFCCC).
Additionally, the GCF’s enhanced Readiness Program will help countries strengthen their REDD+ initiatives, making them eligible for results-based payments more rapidly.
