REDDX - Tracking Forest Finance

Forest Trends is working in thirteen countries to track REDD+ finance from donors to in-country recipients to REDD+ projects on the ground.

The REDDX Initiative
Over US$7.3 billion has been pledged to support REDD+ readiness in the run up to 2015, with US$4.3 billion to be spent in the
period between 2010 and 2012. Yet, despite high-level multilateral and bilateral or government financial commitments, information
remains limited on exactly how much of this money is actually flowing to the national level, the types of REDD+ activities
supported in this Fast Start period, and the organizations managing and actually implementing these activities.
Forest Trends (with funding from the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety’s
International Climate Initiative, the Skoll Foundation and the Rights and Resources Initiative) is tracking REDD+ finance in thirteen
countries to determine:
• Actual commitments and disbursements of REDD+ finance;
• Timelines between when funds are committed and actually disbursed;
• The types of organizations receiving and implementing the REDD+ activities (e.g. government, NGOs, large international
consulting firms and consultants, or community organizations);
• Types of activities supported by the current financial pledges.
• The aim of this initiative is to provide information that will help governments and other REDD+ stakeholders better assess gaps
and needs against national REDD+ strategies and to have a better understanding of the financial flows associated with REDD+
financing.

• Ecuador: Ecuador is reported to have one of the highest deforestation rates in South America at 1.43% per year. The country has
prioritized lowering its deforestation rate through a number of national policies. Ecuador’s Ministry of the Environment launched
the Socio Bosque Program in 2008 to incentivize the protection of forests, and in 2009, the country’s Plan for Good Living set a
national goal to reduce deforestation by 30% by 2013. Ecuador has seen support for its initiatives from the UN-REDD Programme
– after Ecuador became a beneficiary country in 2011 – and other international, multilateral and bilateral commitments. The coun-
try has also seen an increasing amount of private sector investment.
• Brazil: Brazil is the largest country in South America and the fifth largest and most populous in the world. Forests cover about
three-fifths of Brazil’s land area, which represents over 14% of the world’s forest coverage, including one-third of the world’s
remaining rainforests. Despite the fact that the deforestation rate in the Brazilian Amazon has decreased in the last decade, defor-
estation continues to be a major issue. Currently, five of the Amazon states are a part of the Governor’s Climate and Forests Task
Force (GCF). The goal of the GCF is to connect these states and the fourteen others in the partnership with market and non-mar-
ket finance. Brazil is currently in the process of developing a national REDD strategy.
• Vietnam: Since the 1990s, Vietnam has seen an increase in forest cover totaling 40% of the country by 2010. Specific regions still
have high deforestation rates, which Vietnam is working to lower through a number of multilateral agreements and national poli-
cies that support REDD+ activities. The country’s 2008 National Target Program to Respond to Climate Change seeks to evaluate
the impact of climate change on Vietnam, and build the capacity of relevant organizations. In November 2010, Vietnam presented
its REDD Readiness Preparation Proposal (R-PP) to the World Bank’s Forest Carbon Partnership Facility (FCPF) to obtain support
through the FCPF’s Readiness Fund. In late 2012, the country began the UN-REDD Programme’s implementation phase, which
aims to reduce emissions in six Vietnamese provinces
• Ghana: Ghana is reported to have one of the highest deforestation rates in Africa at around 2% per year. To combat this loss,
Ghana is in the process of building a national strategy to reduce greenhouse gas emissions from forest loss and degradation, with
the support of the World Bank´s Forest Carbon Partnership Facility (FCPF) and Forest Investment Program (FIP) as well as private
donors.Ghana developed a REDD Readiness Preparation Note (R-PIN) which was approved in July 2008 and a REDD Readiness
Preparation Proposal (R-PP) which was signed in August 2009. More recently, Ghana produced a draft investment plan for the FIP
which was published in August 2012. This FIP funding will be reported as part of the 2012 data later this year.
• REDD+ data coming in 2013: Colombia, Democratic Republic of Congo, Guyana, Indonesia, Liberia, Mexico, Papua New Guinea,
Peru and Tanzania.
REDDX Countries
Ecuador, Brazil, Vietnam, Ghana
2

Total commitments for REDD+ activities in Ecuador amounted to US$320,216 in 2009, increasing by US$248,000 in 2010 to reach a
cumulative total of US$568,216. In 2011, commitments increased by a dramatic 3,520% to reach US$20,572,255. Disbursements of
funds have been slow with just 2.3% (or $467,530) released by the end of 2011.
$ 320,216
2009 2010 2011
$ 43,000 $ 187,000
$ 20,572,255
$ 568,216 $ 467,530
13.4% 32.9%
2.3%
Funds committed
Proportion of funds
committed already disbursed
ECUADOR
Levels of REDD+ Funding Flowing
Cumulative commitments and disbursements, 2009-2011
3
Our In-Country Partner

Mapping the flows of REDD+ financing to Ecuador highlights that most donor institutions are funding one type of recipient. These
exclusive flows of finance are from donor governments to the government of Ecuador, private foundations to international institutions,
the private sector to Ecuadorian institutions, and supranational institutions to international institutions.
Multilateral institutions have committed funds to both Latin American institutions – including regional NGOs and community groups
spanning several Latin American countries – and international institutions – including international NGOs with headquarters outside
the country and international academic institutions – with 95% of these funds directed to international institutions.
ECUADOR
Emerging Results - Flows of Finance
Donors Recipients
$ 4,217,859
$ 248,000
$ 15,350,180 $15,350,180
$ 4,804,215
$ 200,000
$ 217,860
$ 156,216
$ 436,000
Government of Ecuador
Donor Governments
Multilateral Institutions
Private Foundations
Ecuadorian Institutions
International Institutions
Supranational Institutions
Grouped Confidential
Latin American Institutions
Private Sector
$ 164,000
Flows of REDD+ finance between donors and recipients, 2009-2011
4

The chart shows the relative levels of funding donors have committed as well as the proportion disbursed by the end of 2011. The
percentage of committed funding that has been disbursed varies from 0% to 58%, with an average of 16% disbursement.
ECUADOR
Donors
Darker shades represent
portion already disbursed
Government Agency
Multilateral Financing Institution
Private Foundation
Funds committed
Funds disbursed
UN-REDD
$ 3,999,999
$ 0
KfW (Germany)
$ 15,350,180
$ 167,530
Moore F.
$ 248,000
$ 144,000
Private Sector
Face the Future
$ 164,000
$ 37,000
European Union
European Union
$ 156,216
$ 6,000
Grouped Confidential
$ 436,000
$ 113,000
IDB *
$ 217,860
$ 0
* $ 41,400 co-financing by recipient (COICA)
Proportional total donor commitments and disbursements, 2009-2011
Darker shades represent portion already disbursed
5

To date, the REDD X initiative has tracked REDD+ finance as it flows from donors to the first institution receiving the funding. This
so-called “first recipient” will have a legal or formal agreement with the donor specifying the total amount of funding, a timeline
for activities and a schedule for when finance will be spent.
The first recipients to receive funding for REDD+ activities in Ecuador are predominantly based in Ecuador. 74.6% of funds
committed in the period from 2009 to 2011 have been directed towards funding REDD+ activities through the government of
Ecuador, namely the Ministry of the Environment (MAE).
Ecuadorian institutions – including Ecuadorian NGOs, academic institutions, consultants and community groups – are scheduled
to receive an additional 1% of the funding from donors, along with Latin American institutions, which include regional NGOs
and community groups spanning several Latin American countries. International institutions – including international NGOs with
headquarters outside the country and international academic institutions – are scheduled to receive 23.4% of the total funds
committed for REDD+ funding in Ecuador.
ECUADOR
Recipients
Funds committed
to Ecuador
(2009-2011)
$ 15,350,180
Government of Ecuador
Ecuadorian Institutions
74.6%
$ 200,000
1%
$ 4,804,215
23.4%
1%
LatinAmericanInstitutions
$ 217,860
Commitments to first recipients by location and type
6

The chart shows the REDD+ activities supported by the different donor institution types. The list of activities and definitions
was drawn from broad agreement among REDD+ experts, including the civil society national partners collecting data across the
initiative countries.
It is important to note that the absence of support for an activity from a specific donor type does not constitute a lack of attention
to the activity overall, since the activity could be well-funded through other donor types. In Ecuador, the activities supported by
the greatest number of donors were monitoring, reporting and verification (MRV) and reference levels, as well as safeguards – each
receiving funds from four donor types.
ECUADOR
REDD+ Activities
Stakeholder
engagement
Rights and
Tenure
MRV and
reference levels
Safeguards Policy & law
analysis; REDD
strategy
Institutional
strengthening
Forest carbon
project design
Forest and land
management
Carbon Offsets
and perf.-based
payments
Other
Donor
Governments
Multilateral
Institutions
Private
Foundations
X
X X X
X
X
X
X X
X
X
X
X
X
X
X
X
X
European
Union
Private
Sector
X
X
X X X X X
√
√
√
√
√
√
√
√ √
√
√ √ √ √√
√ √√X X X X X X X
REDD+ Activities
7

BRAZIL
Total commitments increased from US$134.7m in 2009 to US$353.6m in 2010, reaching US$598.6m in 2011. Disbursements have in-
creased at a relatively consistent rate in the same period, amounting to 29.9% of total cumulative commitments in 2010 and 29.4%
of total REDD+ financing tracked by the end of 2011.
$ 33,239,135
2009 2010 2011
$ 134,716,212
$ 353,628,894
$ 598,604,833
$ 105,889,939
$ 175,789,389
24.7%
29.9%
29.4%
Funds committed
Proportion of funds
8

BRAZIL
Mapping the flows of REDD+ financing to Brazil highlights that donor government agencies are funding every recipient type with
the highest proportion of funding directed to the Amazon Fund (managed by the Brazilian Development Bank, BNDES).
Multilateral institutions have directed funding exclusively to the government of Brazil, while the public-private sector has exclusively
funded the public-private sector – namely, the Amazon Fund. Private foundations have directed around 20% of their commitments
to international institutions – including international NGOs with headquarters outside the country and international academic in-
stitutions – as well as international consultancies between 2009 and 2011. Over 80% of private foundation commitments have been
directed toward Brazilian institutions – including Brazilian NGOs, academic institutions, consultants and community groups.
Donors Recipients
$ 20,300,000
$ 28,154,314
$ 545,940,164
$78,431,138
$ 11,984,343
$ 23,233,044
$ 886,953
$ 4,210,355
$ 484,069,355
Government of Brazil
Donor Governments
Private Foundations
Brazilian Institutions
Public-Private Sector
InternationalConsultancies
9

BRAZIL
Donors
The chart shows the relative levels of funding donors have committed as well as the proportion disbursed by the end of 2011. This
percentage of committed funding that has been disbursed varies from 12% to 100%. Brazil is the only country in the
REDD X initiative to show a significant number of donors with 100% disbursal rates.
NORAD (Norway)
$ 446,921,500
$ 52,170,806
KfW (Germany)
$ 62,581,250
$ 38,866,250
USAID (USA)
$ 6,500,000
$ 6,500,000
FCO (UK)
$ 1,611,165
$ 1,611,165 GIZ (Germany)
$ 28,326,250
$ 28,326,250
World Bank (UK funding)
$ 16,000,000
$ 16,000,000
UNEP (Norway funding)
$ 4,300,000
$ 4,300,000
Climate Works
$ 9,896,381
$ 8,357,465
Packard
$ 4,337,361
$ 4,337,361
Ford
$ 2,368,000
$ 2,368,000
Moore
$ 11,552,572
$ 8,741,737
Petrobras
$ 4,210,355
$ 4,210,355
Government Agency
Multilateral Institution
Private Foundation
Funds committed
Funds disbursed
Public-Private Sector
10
Norway

BRAZIL
Recipients
so-called “first recipient” will have a legal or formal agreement with the donor specifying the total amount of funding, a timeline for
activities and a schedule for when finance will be spent.
The first recipients receiving funding for REDD+ activities in Brazil are predominantly based in Brazil. 80.9% of funds committed in
the period from 2009 to 2011 has been channeled through the Amazon Fund. The government of Brazil – namely, the Ministry of
Environment (MMA) – is scheduled to receive an additional 13.1% of the funding from donors, while Brazilian institutions – includ-
ing Brazilian NGOs, academic institutions, consultants and community groups –will receive 3.9% of total commitments. International
institutions – including international NGOs with headquarters outside the country and international academic institutions – are
scheduled to receive 2% of the total funds committed for REDD+ funding in Brazil, and international consultancies 0.15%.
Funds committed
to Brazil
(2009-2011)
$ 78,431,138
Government of Brazil
3.9% Brazilian Institutions
$ 23,233,044
$ 11,984,343
13.1%
2%
$ 886,953
Amazon Fund
$ 484,069,35580.9%
0.15%
11

BRAZIL
REDD+ Activities
It is important to note that the absence of support for an activity from a specific donor type does not constitute a lack of
attention to the activity overall, since the activity could be well-funded through other donor types. In Brazil, the activities that
received support from all donor types (governments, multilateral institutions, private foundations, and the public-private sector)
were stakeholder engagement, rights and tenure, policy, law analysis and development, institutional strengthening, and the
implementation of improved forest and land management.
Donor
Governments
Multilateral
Institutions
Private
Foundations
√
√
√
√
√
√
√
√
√
√
X
X X
X
X
XPublic-Private
Sector
√
√
√
√
X X
X
√
√
√
√
√
√
X
X
√
√
√
√
√
√
√
√
√
Stakeholder
engagement
Rights and
Tenure
MRV and
reference levels
analysis; REDD
strategy
Institutional
strengthening
Forest carbon
project design
Forest and land
management
Carbon Offsets
and perf.-based
payments
Other
REDD+ Activities
12

VIETNAM
$ 12,377,742
2009 2010 2011
$ 578,935
$ 13,723,278
$ 20,013,083
$ 4,905,485
$ 8,432,230
4.7%
35.8%
42.1%
Funds committed
Proportion of funds
Total commitments increased from US$12.4m in 2009 to US$13.8m in 2010, reaching US$20m in 2011. Disbursements have in-
creased rapidly in the same period, amounting to 35.8% of total cumulative commitments in 2010 and reaching 42.1% of total
REDD+ financing tracked by the end of 2011.
13
VIETNAM

VIETNAM
Donors Recipients
$ 4,591,957
$ 861,471
$ 14,559,655 $10,981,743
Government of Vietnam
Donor Governments
European Union
Vietnamese Institutions
$ 953,872
$ 8,012,467
$ 65,000
Mapping the flows of REDD+ financing to Vietnam highlights that donor government agencies are funding the government
of Vietnam, international institutions, and Vietnamese institutions, with the majority of funding directed towards international
institutions.
Multilaterals have directed over 95% of funding to the government of Vietnam, with 3% also supporting international institutions
– including international NGOs with headquarters outside the country and international academic institutions – and 1% funding
Vietnamese institutions – including NGOs, academic institutions, consultants and community groups. The European Union
committed funds to both Vietnamese and international institutions between 2009 and 2011, providing a greater proportion of
these funds (67%) to international institutions.
14

VIETNAM
Donors
The chart shows the relative levels of funding donors have committed as well as the proportion disbursed through end of 2011.
This percentage of committed funding that has been disbursed varies from 9% to 100%. However, the majority of donors have
disbursement percentages greater than 50%, with an average of 56%.
Funding from USAID is part of a regional program – LEAF, Lowering Emissions in Asia’s Forests – spanning six countries, namely
Vietnam, Cambodia, Laos, Thailand, Papua New Guinea, and Malaysia. For the purpose of tracking REDD+ finance in Vietnam under
this initiative, the total amount provided by USAID to the six countries was divided equally by six to represent an amount that
approximates the support Vietnam is receiving from the donor. REDDX will seek to provide further detail in subsequent data updates
on the amounts of regional funding actually flowing to Vietnam.
Government Agency
Funds committed
Funds disbursed
DEFRA (UK)
$ 216,712
$ 144,770FORMIN (Finland)
$ 501,589
$ 304,582
BMU (Germany)
$ 2,084,106
$ 178,949
JICA (Japan)
$ 6,400,000
$ 3,400,000
NORAD (Norway)
$ 2,023,915
$ 954,188
USAID (USA)*
$ 3,333,333
$ 448,358
IFAD
$ 142,201
$ 117,201
UN-REDD
$ 4,384,756
$ 2,557,811
World Bank
$ 65,000
$ 65,000
European Union
$ 861,471
$ 261,370
Supranational Institution
* Regional program.
15
Norway

VIETNAM
Recipients
Funds committed
to Vietnam
(2009-2011)
$ 10,981,743
Government of Vietnam
$ 8,012,467
International Consultancies
$ 65,000
Vietnamese Institutions
$ 953,872
0.3%
4.8%
54.9%
40%
The first recipients receiving funding for REDD+ activities in Vietnam are predominantly based in Vietnam. 54.9% of funds commit-
ted in the period from 2009 to 2011 have been directed to the government of Vietnam’s Ministry of Agriculture and Rural Develop-
ment (MARD). Vietnamese institutions – including NGOs, academic institutions, consultants and community groups – are scheduled
to receive an additional 4.8% of the funding from donors.
International institutions – including international NGOs with headquarters outside the country and international academic institu-
tions – are scheduled to receive 40% of the total funds committed for REDD+ activities in Vietnam.
16

VIETNAM
REDD+ Activities
to the activity overall, since the activity could be well-funded through other donor types.
In Vietnam, the activities that received support from all donor types (governments, multilateral institutions, private foundations,
and the public-private sector) were stakeholder engagement, rights and tenure, policy, law analysis and development, institutional
strengthening, and the implementation of improved forest and land management.
Stakeholder
engagement
Rights and
Tenure
MRV and
reference levels
analysis; REDD
strategy
Institutional
strengthening
Forest carbon
project design
Forest and land
management
Carbon Offsets
and perf.-based
payments
Other
√
√
√
Donor
Governments
Multilateral
Institutions
√
√
√
√
X
X
X
X
X
√
√
√
√
√
√
√
√
√
√
√
√ √
√
Supranational
Institutions
√
√ √√
REDD+ Activities
17

GHANA
Total cumulative commitments increased from US$1.8m in 2009 to US$14.2m in 2010, reaching US$14.3m in 2011. The sharp in-
crease in commitments between 2009 and 2010 was accompanied by a similar relative increase in disbursements but, in general,
donors have been slower at releasing committed funds.
In 2009, US$699,256 (or 38.2% of the total committed funds) had been transferred to recipient institutions. Disbursements increased
in 2010 and 2011 to reach US$7.6m (or 53% of the total committed funds) by the end of 2011.
$ 699,256
2009 2010 2011
$ 1,828,257
$ 14,223,277 $ 14,325,886
$ 6,461,120
$ 7,604,958
38.2%
45.4% 53%
Funds committed
Proportion of funds
*The figure represents all known donor commitments for REDD+ activities in
Ghana between 2009 and 2011. This includes one commitment for US$7,745
from the Global Forest Coalition to Friends of the Earth. At publication, we could
not corroborate the source of the Global Forest Coalition’s (a coalition of NGOs)
funding. For this reason, the Global Forest Coalition “commitment” has been
included in the total funds committed but has not been tracked in the country
charts.
18

GHANA
Donors Recipients
$ 4,508,716
$ 601,372
$ 9,215,798 $12,408,716
Government of Ghana
Donor Governments
Private Foundations
Ghanaian Institutions
International Institutions$ 1,373,307
$ 543,863
Mapping the flows of REDD+ financing to Ghana highlights that donor government agencies are funding the government
of Ghana and international institutions, with the majority of funding directed through bilateral government-to-government
agreements.
Multilateral institutions are only funding the government of Ghana. Private foundations have committed 90% of their funds to
Ghanaian institutions – including Ghanaian NGOs, academic institutions, consultants and community groups – and around 10% of
their funding to international institutions – including international NGOs with headquarters outside the country and international
academic institutions.
19

GHANA
Donors
Government Agency
Private Foundation
Funds committed
Funds disbursed
NORAD (Norway)
$ 555,000
$ 385,000
USAID (USA)
$ 175,000
$ 175,000
BMU (Germany)
$ 111,304
$ 33,055
ITTO
$ 658,716
$ 658,716
ADB
$ 250,000
$ 0
World Bank
$ 3,600,000
$ 200,000
JICA (Japan)
$ 7,800,000
$ 5,100,000
DANIDA (Denmark)
$ 574,494
$ 451,815
Moore F.
$ 206,372
$ 206,372
Rockefeller F.
$ 395,000
$ 395,000
The chart shows the relative levels of funding donors have committed as well as the proportion disbursed through 2011. The
percentage of committed funding that has been disbursed varies from 100% to 0%. However, the majority of listed donors tend to
have a disbursement percentage greater than 65%.
20
Norway

GHANA
Recipients
Funds committed
to Ghana
(2009-2011)
$12,408,716
Government of Ghana
Ghanaian Institutions
86.6%
$ 543,863
3.8%
9.6%
$ 1,373,307
The first recipients receiving funding for REDD+ activities in Ghana are predominantly based in Ghana. 86.6% of funds committed
in the period from 2009 to 2011 have been directed towards funding REDD+ activities through the government of Ghana, with the
Forest Commission, the Forestry Research Institute of Ghana and the Ministry of Lands & Natural Resources all scheduled to receive
funds.
Ghanaian institutions – including NGOs, academic institutions, consultants and community groups – are scheduled to receive an
additional 3.8% of the funding from donors. International Institutions – including international NGOs with headquarters outside the
country and international academic institutions – are scheduled to receive 9.6% of the total funds committed for REDD+ funding in
Ghana.
21

GHANA
REDD+ Activities
to the activity overall, since the activity could be well-funded through other donor types. In Ghana, the activities that received
support from all donor types (governments, multilateral institutions, and private foundations) were stakeholder engagement,
monitoring, reporting and verification (MRV) and reference levels.
Stakeholder
engagement
Rights and
Tenure
MRV and
reference levels
analysis; REDD
strategy
Institutional
strengthening
Forest carbon
project design
Forest and land
management
Carbon Offsets
and perf.-based
payments
Other
Donor
Governments
Multilateral
Institutions
Private
Foundations
√
√
√
√
√
√
√
√
√ √
√
X
X X X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
REDD+ Activities
22

EMERGING GLOBAL PICTURE
SOURCE: State of the Forest Carbon Markets 2012. Ecosystem Marketplace; REDDX Project, Forest Trade and Finance Initiative
TOP 10 THREATENED
FOREST HOT-SPOTS
MILLIONS OF $ SUPPORTING FOREST
CONSERVATION VIA PRIVATE OFFSETTING
$1-15 MILLION
$15-35 MILLION
$35-50 MILLION
$50-100 MILLION
$100-200 MILLION
MILLIONS OF $ OF REDD
FINANCING COMMITTED
MILLIONS OF $ OF REDD
FINANCING DISBURSED
23

REDDX Looking Forward
Next Step for REDDX:
REDDX is now shifting focus to tracking finance from donors and initial recipients all the way down to the community level in our
REDDX countries. Looking at how communities are engaging with REDD+ and the level of funding actually reaching local organiza-
tions or community groups is a key component of this study. Data collection for 2012 is already starting to capture how funding is
being spent at the local community level.
REDDX is also working with Governments to track their own finance for REDD+. This is important in building a comprehensive pic-
ture of all the international and national finance and activities taking place. Such information will also provide a powerful message
for national governments in coordinating with donors around under-funded activities.
REDDX currently tracks REDD+ finance in thirteen countries and is now looking to extend the project and track REDD+ finance in
additional countries to build a more comprehensive, global picture of finance gaps and needs. Public financing for REDD+ is criti-
cal, but information remains patchy on levels of finance going to some of the world’s top forest hotspots and countries with high
rates of deforestation. To more effectively determine the full financing picture, it is vital that REDDX increase in scope to track high
level public and private funds, revealing the global state of REDD+ financing.
The governments of Kenya and Ethiopia have already requested fast admission to the REDDX initiative to better understand what
REDD+ activities are happening in-country. In addition, countries are already asking to use the REDDX methodology to develop
national REDD+ Registries (a catalogue of all REDD+ projects in-country and the main way that governments will make decisions
about where their funding will go) and tools for wider climate finance tracking. REDDX will look to build capacity and support long
term monitoring of REDD+ at the national and regional level.
24

REDDX - Tracking Forest Finance

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