The Carbon Fund

The Carbon Fund

The Carbon Fund is set up to pilot incentive payments for REDD+ efforts in developing countries. FCPF participant countries that have made significant progress in their REDD+ readiness endeavors may be selected to participate in the Carbon Fund, which became fully operational in May 2011.

Carbon Fund payments aim to make forests more valuable standing than cut down.

Carbon Funds payments are designed to help countries and their stakeholders achieve long-term sustainability in financing forest conservation. They are intended to help reduce climate change impacts from forest loss and degradation by making forests more valuable standing than cut down. The Carbon Fund remunerates participant countries in accordance with negotiated contracts for verifiable emission reductions (ERs).

Carbon Fund Steps: From Project Idea Notes (ER-PINs) to Payment Agreements (ERPAs)