Help Save Rainforests & Endangered Species
Direct Finance
Direct Finance
CfRN helps countries attract climate finance by providing access to market-based tools and private sector partners
From REDD+ to Climate Finance
After twenty years of relentless work the Coalition for Rainforest Nations are fulfilling their promise to reduce emissions at a multi-gigaton level. The final step of the REDD+ journey takes place when nations receive results-based payments for their efforts to slow, stop, and reverse deforestation under REDD+. To date, most of the hard work done by developing nations remains uncompensated. The governments of Norway, the U.K., and Germany — as well as the Green Climate Fund, the financing vehicle mandated to support developing countries have paid for some results bilaterally. But that compensates only a small percentage of the work done by rainforest nations. Beyond bilateral payments, the sale and exchange of REDD+ sovereign carbon credits resulting from accomplished REDD+ reductions and removals of greenhouse gasses by rainforests is a growing potential source of climate finance.
The UNFCCC REDD+ info-hub
The Deutsche Bank and CfRN co-released white paper .
REDD+ Sovereign Carbon
Nature-based solutions can potentially address some of our challenges with climate and biodiversity and ensure a just transition for developing countries. UNFCCC REDD+ sovereign carbon credits represent such an asset, evidencing carbon sequestration, supporting entire ecosystems, and allowing capital to flow where it is most needed.
Article 6 of the Paris Agreement offers rainforest nations new hope for climate finance after unfulfilled international promises in 2010 and 2020. Sovereign carbon is a new institutional asset class that seeks to bridge the gap between the private and public sectors, offering institutional investors and corporations the ability to reverse deforestation at scale through Paris Agreement-compliant carbon credits. In 2022, Deutsche Bank joined the ranks of new allies and co-released a white paper with CfRN entitled, UNFCCC REDD+ and the Power of Sovereign Carbon. The paper aims to educate investors on how to reverse deforestation at scale through the capital markets while supporting the sovereign rights of rainforest nations.
Opening plenary session at COP28, Dubai, 2023
The Dawn of the ITMO
The sale and exchange of REDD+ Results as UN carbon credits, called Internationally Transferable Mitigation Outcomes (ITMOs) is a growing potential source of climate finance for rainforest nations. ITMOs are available under Article 6 of the Paris Agreement for purchase by developed countries, corporations, and individuals. They allow the purchaser to become Paris Agreement-compliant. ITMOs may be created through Article 6’s cooperative approaches which includes REDD+ results. They must have the following characteristics, as agreed by the CMA:
- Nature – ITMOs are real, verified, and additional emission reductions and removals measured in tons of CO2 equivalent[1]
- Authorization – All ITMOs are authorized by the national government[2]
- Corresponding Adjustments Are applied to all ITMOs that are transferred, regardless of who purchases them. This ensures no double-counting.[3]
- Vintage – The CMA only allows post-2020 emission reductions or removals to be eligible as ITMOs[4]
To learn more about ITMOs, check out: REDD+ under the UNFCCC: Primer Report
[1] Decision 2/CMA.3, paragraphs 1a-c
[2] Article 6, paragraph 3, of the Paris Agreement
[3] Decision 2/CMA.3, paragraphs 6 and 16
[4] Decision 2/CMA.3, paragraph 1e
The ‘REDD+ under the UNFCCC: Primer Report’, detailing the sale and exchange of REDD+ Results as UN Carbon credits – Internationally Transferable Mitigation Outcomes (ITMOs)
www.redd.plus
Our Role
CfRN helps developing countries transition UNFCCC REDD+ Results into sovereign carbon credits/ITMOs and receive direct finance by providing access to market-based tools, infrastructure, such as, carbon registries and exchanges. CfRN also provides access to private sector partners for marketing and sales, finance, legal, and auditing. Our current partners include: S&P Global, ITMO.com, BancTrust, European Energy Exchange, Clifford Chance, and others.
One market-based tool is REDD.plus . It is a pilot project launched by CfRN that offers developing countries a free online platfrom to sell their REDD+ sovereign carbon and ITMOs to corporations and individuals. Countries receive over 90% of the revenue from credits sold on the platform. To learn more, go to www.redd.plus
