New acceleration fund to drive investment in forests
"A new financial mechanism to help combat climate change by getting funds flowing into forest carbon credits is under development and could be launched by spring next year.
Forest carbon credits hope to provide incentives to do just that. They are generated by initiatives and projects that reduce deforestation, plant new trees and promote carbon-conscious land management — all of which results in a reduction of carbon dioxide emissions. Each ton of CO2 not emitted translates into one carbon credit, which can then be traded on either the voluntary or compliance carbon markets, enabling governments and companies to meet their carbon emission allowances or voluntary targets.
The concept for the Fund, which is the brainchild of private investment firm, Climate & Forest Capital LLC, The Environmental Defense Fund, with law firm Baker & McKenzie, is to do this by pooling funding from public, private and philanthropic sources to create an investment vehicle which provides investors with enough security to start buying high-quality REDD+ credits in the hope that they become compliant, and thereafter fetch a good price on the carbon market."