There is an increasing focus on the role that public and private resources can play in supporting activities that reduce forest loss as part of wider efforts to address climate change, and ensure sustainable development.
This report from the Overseas Development Institute (ODI) highlights the growing role that key commodities play in driving forest loss (palm oil, timber, soy and beef), and the wide range of subsidies that governments currently use to support investment in and development of these commodities. Based on early analysis, the report finds that these subsidies dwarf current climate finance in support of REDD+, both globally, and in key countries with high levels of forest loss including Brazil and Indonesia. However, in spite of the significant levels of subsidies in these countries and opportunities for reform, a recent review of REDD+ readiness finance to these countries found that there is not a focus on identification, estimation and reform of these subsidies; nor is the provision of REDD+ finance conditional on addressing subsidies.