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REDD Supply Chain

REDD Supply Chain


With global concern growing over deforestation, loss of carbon stored in forests and the role of forests in climate change, the spotlight has been turned on forest monitoring in a bid to safeguard forests and monitor emissions from deforestation. Much of the discussion at the project and national level will focus on ensuring environmental integrity which is vital in creating a large and well-functioning offsets market that inspires investor and buyer confidence and can provide credits that would be freely interchangeable with emissions allowances. Concern over integrity is likely to be highest in the early years of a program, when protocols and methodologies are being refined. The remote sensing systems plays critical role in the development of REDD mechanisms for monitoring tropical deforestation. Images acquired globally over narrow timeframes provide for true "snapshots" of deforestation activities, giving leverage to monitoring programs that hinge on timely and accurate observations of forests throughout the world.

REDD projects can be a useful stepping-stone toward a national program, where many of the project techniques and approaches used are applicable to national approaches. For example, the monitoring methods used could also be applied to measure emissions reductions from sector-wide approaches to reduce national deforestation rates, and the leakage assessment was performed at a national scale. Second, regardless of which policy instrument (or combination of instruments) is put in place to deal with the problem, careful attention must be given to monitoring and quantifying changes in forest cover and forest carbon and to the development of appropriate accounting frameworks for measuring progress and ensuring that the whole effort has environmental integrity. Without environmental integrity, the whole effort will collapse. In contrast to the situation prevailing a decade ago, significant progress has been made, particularly in the development of remote sensing capabilities and accounting methodologies, in our ability to quantify changes in land cover and forest carbon stocks with confidence.



Carbon Accounting & Forest Monitoring

The proposed measurement and monitoring program would require a more integrated and coordinated effort across different central and provincial agencies to measure and track overall national, as well as regional, changes in carbon emissions and sinks in various carbon pools within the forestry sector.

Payment Distribution

Injecting performance-based financial incentives for forest protection in a REDD+ agreement could finally provide the all-important political will for meaningful action in developing countries, where for decades the forces of deforestation have dominated. However rewarding actions through payment also bring governance challenges to safeguard the credibility of the payment for environmental services using existing and prospective mechanisms.

Carbon Market

After decades of failure by the international community to address rainforest loss, this new effort to design a market to compensate countries for Reducing Emissions from Deforestation and forest Degradation (REDD) is welcome, as the Kyoto Protocol, which sets binding targets for reducing emissions of carbon dioxide and greenhouse gases in industrialized countries, draws to a close in 2012.   REDD is firming up as part of the international compliance carbon market agenda.

Indigenous People

REDDs implications for Indonesian indigenous and peasant communities are being highly contested. Supporters claim that it could benefit indigenous groups who have prevented environmentally destructive activity on their land.  However, groups championing indigenous people's rights say they doubt that many if any of the benefits from REDD would trickle down to the people who need it most. And it could trigger land grabs by individuals or companies who want to cash in on REDD's credits.

Financing Options

Without an economic rationale for sustainability, neither the private sector nor governments have had the will to act. Through market or non market financing, REDD is a potential financing mechanism that can channel unprecedented incentives and fundamentally change the approach to land management within the country.

Opportunity Cost

The challenge for REDD is to compete for a rational to change based on the emission reduction payment to compensate the foregone revenues. The revenue currently received from economic activities in which the natural environment remains intact is not high enough to offset the non-sustainable activities, but finding mechanisms to secure global payments for the forest's ecological services would be a major impetus to both preserving the forest and paying for and providing for proper management.

Governance Assessment

Effective and equitable governance will be the key to successful REDD schemes. Unfortunately, governance tends to be weakest in the very places where deforestation is greatest. Poor governance, unchecked illegal logging, and corruption have contributed to rapid rate of deforestation, extensive forest degradation, and inequalities in land distribution and revenue sharing.




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REDD Supply Chain