Right time for Impact
Mobilizing both public and private capital will be essential to match the global challenge of financing sustainable food production, tropical forest conservation, and other outcomes needed for REDD+. Private capital, currently sitting on the sidelines, can help unlock emissions reductions that can both provide supply to compliance carbon markets and help countries achieve their performance goals (e.g. Nationally Determined Contributions).
The RAF presents a unique opportunity meet this challenge by bridging the policy uncertainty surrounding global compliance markets through
a) Significantly reducing the risk of investing in REDD+;
b) Supporting jurisdictional REDD+ programs;
c) Bolstering confidence in REDD+ among regulators and regulated entities; and
d) Supporting the broader market infrastructure for private REDD+ transactions.
The RAF is the only known finance vehicle under development to target private capital for jurisdictional REDD+, while also building the conditions necessary for long-term, scalable, and durable private demand for jurisdictional REDD+ credits from compliance carbon markets. The RAF is intended to move the jurisdictional REDD+ market in the right direction – and in the process, catalyze a new phase of global carbon market development, potentially unlocking billions of dollars of private capital flows for forest protection and restoration.
The RAF is designed for precisely this moment.
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