On November 22, 2013, negotiators agreed upon rules for financing forest projects in developing nations with REDD+, paving the way for multi-billion dollar investments from governments, funding agencies and private firms in schemes to halt deforestation. The agreement was a breakthrough at the COP-19 climate talks in Warsaw, where negotiators otherwise struggled to make progress in discussions on emissions cuts and climate change mitigation.
“The Warsaw decision legitimizes REDD+ as an asset class, constructing the gates through which finance can flow to forest countries. The fact that private sector finance is mentioned explicitly along with public and other sources in the text is important. Now governments are free to design the architecture for performance-based finance that is deeply needed to change the way forests are managed and conserved in the developing countries,” said Althelia Climate Fund Managing Partner, Christian del Valle.