13 November 2024: The Green Climate Fund (GCF) has approved a new Policy to fund REDD+ (Reducing emissions from deforestation and forest degradation in developing countries) results-based payments for countries successfully reducing greenhouse gas emissions in the context of the framework and fulfilling the eligibility criteria.
Under the 21 October decision, the GCF backed the Policy for REDD+ results-based payments and will now pay for results achieved in the period 2018-2022. To promote equality and access to various countries in the current GCF programing cycle (2024-2027), REDD+ results-based payments for individual countries will be capped at 15 million metric tonnes of CO2 eq.
In a significant move, the GCF also agreed to set a price of 8 USD per tonne. These features, along with other elements of the olicy will be updated in each programming cycle of the GCF (i.e. every four years).
The newly approved Policy by the GCF incentivizes REDD+ countries that achieve verified, measurable reductions in emissions from deforestation and forest degradation while adhering to strict social and environmental standards.
This policy mandates enhanced transparency and reporting requirements, including public disclosure of safeguard compliance and fund utilization, to foster accountability and social inclusion.
“We welcome the latest approval from the Green Climate Fund and the new funding made available to countries with forests that are putting in place plans or achieving real results in their climate mitigation efforts,” said Mario Boccucci, head of the UN-REDD Programme Secretariat based in Geneva.
“Getting the urgent finance to countries that are helping to keep global temperatures in line with the goals of the Paris Agreement is vitally important. Global deforestation rates remain high and irreversible tipping points are nearing in many of the world's precious forests– the GCF new policy sends a powerful signal for scaling up action and finance as well as on the value of virtuous partnerships to halt and reverse deforestation,” he added.
The relevance of forests to achieve the goals of the Paris Agreement was also noted by GCF Board members at deliberations prior to the adoption of the Policy. Other Board observations included:
(i)The need to increase efforts to raise capacities of countries to meet the eligibility criteria.
(ii) Appreciation for improving environmental integrity through revised scorecard provisions and alignment with UNFCCC decisions, including linkages with Nationally Determined contributions (NDCs).
(iii) Recognition that the new Policy provides predictability and allows time for countries to prepare and request payments when ready.
A special study conducted by the GCF Independent Evaluation Unit on REDD+ results-based payment projects in Latin America and the Caribbean, published in August 2024, highlighted, among other conclusions, the critical role the UN-REDD Programme played in promoting readiness to those countries that accessed finance from the GCF pilot programme1.
“We are ready to increase our efforts to work with REDD+ countries that wish to benefit from this funding through results-based payments,” added Boccucci.
REDD+ countries are encouraged to submit proposals to access the GCF's results-based payments as soon as they are ready. This funding will be made available to those that have verifiable emissions reductions and a commitment to continue efforts beyond 2024, as well as those who comply with the eligibility requirements established in the new Policy.
In this context, the 21 October GCF decision encourages countries that wish to submit REDD+ results-based payment funding proposals to request financing under the GCF Readiness and Preparatory Support Programme to support eligibility under the Policy. The GCF Secretariat received the mandate from the Board to prepare the relevant guidance and templates to operationalize the Policy.
An analysis of the GCF announcement is currently being prepared by UN-REDD Programme experts and will be posted shortly.
