There are four major challenges associated with REDD+ finance:
• Defining REDD+ costs and estimating the financial needs of REDD+
• Mobilising sufficient international and national finance to cover the costs
of REDD+ policies and measures
• Allocating and disbursing REDD+ finance efficiently, effectively and
equitably to produce clear and measurable results.
• Matching the requirements and needs of policy makers and other stakeholders in developing countries with those of donors or investors in REDD+, and creating and/or strengthening the institutions needed to implement policies and manage REDD+ funds.
This publication sheds light on these challenges and discusses the implications for REDD+ implementation. Section 7.2 summarises the most common ways to calculate REDD+ costs and presents the range of cost estimates that have been put forward to significantly reduce forest-related emissions in developing countries. Section 7.3 discusses the various options that exist to mobilise REDD+ finance in the short and long term. Section 7.4 describes the disbursement challenges from REDD+ country and donor perspectives. The chapter concludes with a discussion of different institutional and policy options that can help to overcome current and future funding challenges.