Development of business models to address drivers of deforestation
As of: July 2020
Objective and activities
REDD+ has been set up to reduce deforestation effectively while achieving multiple benefits. However, the drivers of deforestation are complex and are not sufficiently addressed yet. This project supported national and regional REDD+ implementation efforts by exploring and testing business models and accompanying institutional mechanisms to address the drivers of deforestation in a collaborative effort in partnership with governments, civil society and the private sector. The project conducted a scoping study in four countries to analyze drivers, actors, underlying incentives and preassessed promising business models where performance-based REDD+ payments successfully reduce deforestation. Subsequently, two countries were selected to develop business models, outline the institutional mechanisms, specify MRV systems and support legal implementation agreements between local actors and e.g. REDD Early Movers (REM) or Carbon Fund of the Forest Carbon Partnership Facility (FCPF).
State of implementation/results
Project in implementation
- Successful elaboration of investment and business models (Output I) – Improvement of the opera-tive capacity of project partners (Output II) – Dismissed FPIC process (Indicator I.7) due to the fact that the involvement of indigenous communities in business modelling was not necessary – Signing of MoUs with partner enterprises for the implementation of business models (Output III) – Success-ful development and implementation of trainings and public relations-related work in Columbia („Tropical Symphony“) – Organisation of a final conference in May 2018 in Hue/Vietnam – Examp-les of activities in Vietnam: 1) Validation of business models, 2) Assistance to tending operations required for forest growth and pasture trial areas that incorporate indigenous tree species in the fo-rest enterprise Song Huong PFMB, 3) Completion of a study on forest finance options, 4) Imple-mentation of a wind risk analysis by Forest Research, 5) Finalization of the IFC safeguard analysis
- Examples of activities in Columbia: 1) Finalization of studies on improved pastures together with ICV and CIAT, 2) Signing of MoUs and implementation of management plans in two agricultural enterprises on more than 3000 ha, 3) Piloting of improved practices on 167 ha and planning of a demonstration plot on 40 ha, 4) Tentative elaboration of a training course on sustainable livestock raising in collaboration with Unilannos Corpoice and Uni Santo Tomas, 5) Signing of a MoU with Grupo Exito in order to support the certification of sustainably produced beef