Details - International Climate Initiative (IKI)

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Development of business models to address drivers of deforestation

As of: November 2018

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

  • Direct and indirect drivers of deforestation have been identified at the national level
  • Appropriate investment strategies have been identified
  • A feasibility study on the economic, social and ecological impacts of identified business models and investments has been conducted
  • The study and its results were presented to, and discussed with local stakeholders
  • A workshop was successfully hosted in the Amazon/ Orinoquo region
  • The project was presented at the COP 19 in Lima
  • On the basis of the aforementioned study and in cooperation with the BMU, Vietnam and Colombia were selected to be included in the second project phase. The objective is to develop detailed business models that can be operationalized
  • Vietnam: six state forest enterprises have already committed to the implementation of REDD+ business models on 2000 ha of land within the next five years
  • Colombia: fifteen landowners in the Regio Meta have shown interest in cooperating with the project and restoring forest areas that were damaged by excessive grazing; REDD+ business models were discussed with various stakeholders

Project data

Colombia, Ecuador, Ethiopia, Paraguay, Vietnam

Implementing organisation:
UNIQUE forestry and land use GmbH

Partner institution(s):
  • Ethiopian Environmental Protection Authority (EPA) - Ethiopia , Ministry of Agricultural Development (MoAD) - Ethiopia, Ministry of Agriculture and Rural Development - Colombia, Ministry of Environment and Sustainable Development (MADS) - Colombia, Ministry of Natural Resources and Environment (MONRE) - Viet Nam, National Forestry Institute (INFONA) - Paraguay, Secretary of the Environment (SEAM) - Paraguay

BMU grant:
€ 2,272,361.15

05/2014 till 12/2018


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