2011
  • Non-ICIMOD publication

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Risky business: An uncertain future for biodiversity conservation finance through REDD+

  • Phelps, J.
  • Webb, E. L.
  • Koh, L. P.
  • Summary

Reducing Emissions from Deforestation and forest Degradation and through the conservation, sustainable management, and enhancement of carbon stocks (REDD+) offers unprecedented potential funding for forest conservation and associated biodiversity. However, as a growing number of biodiversity conservation projects link with carbon emissions mitigation efforts, they might also be exposed to significant financial risks. REDD+ projects currently face uncertainty over future demand for carbon credits, the potential for inconsistent donor support in the long-term, carbon market volatility, investor preference for low-cost emissions mitigation over cobenefits, and the possibility of a short-lived REDD+ mechanism. The private sector is aware of the associated financial risks, which remain largely unaddressed within the conservation literature. Biodiversity conservationists need to identify a balance between maximizing near-term REDD+ opportunities and insulating themselves from long-term financial risks. We describe some of the prospective financial risks for biodiversity conservation efforts linked with REDD+, and propose initial strategies for financial resilience.

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