The Reversing Deforestation Mechanism (RDM): The Forest-Climate Nexus

The report proposes the Reversing Deforestation Mechanism (RDM), a results-based payment system designed to scale up tropical forest restoration through jurisdictional agreements. Unlike existing frameworks like JREDD+ and TFFF, which focus on halting deforestation and maintaining standing forests, RDM incentivizes net carbon removal by compensating jurisdictions for carbon captured through restoration minus emissions from deforestation and degradation. The report simulates the potential of RDM to transform tropical forests into high-impact climate assets, highlighting its potential to generate significant revenues and carbon sequestration, particularly in the Brazilian Amazon.

• The Reversing Deforestation Mechanism (RDM) is a results-based payment system that compensates jurisdictions for net carbon removal outcomes, calculated as carbon captured through forest restoration minus emissions from deforestation, forest degradation, and agricultural land-use activities.
• Simulations for the Brazilian Amazon suggest that at a carbon price of US$ 50 per ton of CO2, the RDM could generate approximately US$ 30 billion annually, potentially shifting the region's trajectory from emitting 16 GtCO2 over 30 years to capturing up to 18 GtCO2 through natural regeneration.
• A global simulation of restoring all tropical land deforested between 2001 and 2023 (over 180 million hectares) indicates that at a carbon price of US$ 50 per ton of CO2, the present value (PV) of future income flows would be roughly US$ 1.7 trillion across tropical forest countries.
• The RDM is designed to complement other frameworks: JREDD+ focuses on avoided deforestation, the Tropical Forest Forever Facility (TFFF) rewards the maintenance of standing forests, and RDM fills the gap by prioritizing forest restoration.
• To address the risk of 'defection'—where jurisdictions might revert to deforestation after carbon uptake slows (estimated to become a positive incentive after roughly 40 years)—the RDM proposes two permanence safeguards: a Permanence Fund funded by a small fee (less than US$ 3 per ton of CO2) and a forgivable loan structure.
• The report argues that RDM credits could be integrated into international regulated markets under Article 6 of the Paris Agreement as Internationally Transferable Mitigation Outcomes (ITMOs), potentially lowering compliance costs for high-income countries.

APA

Climate Policy Initiative (2025). The Reversing Deforestation Mechanism (RDM): The Forest-Climate Nexus. https://www.climatepolicyinitiative.org/the-reversing-deforestation-mechanism-rdm-the-forest-climate-nexus-a-fit-for-purpose-framework-for-climate-impact/

Chicago

Climate Policy Initiative. The Reversing Deforestation Mechanism (RDM): The Forest-Climate Nexus. 2025. https://www.climatepolicyinitiative.org/the-reversing-deforestation-mechanism-rdm-the-forest-climate-nexus-a-fit-for-purpose-framework-for-climate-impact/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=The Reversing Deforestation Mechanism (RDM): The Forest-Climate Nexus |date=23 September 2025 |url=https://www.climatepolicyinitiative.org/the-reversing-deforestation-mechanism-rdm-the-forest-climate-nexus-a-fit-for-purpose-framework-for-climate-impact/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025reversing, author = {{Climate Policy Initiative}}, title = {{The Reversing Deforestation Mechanism (RDM): The Forest-Climate Nexus}}, institution = {Climate Policy Initiative}, year = {2025}, month = sep, url = {https://www.climatepolicyinitiative.org/the-reversing-deforestation-mechanism-rdm-the-forest-climate-nexus-a-fit-for-purpose-framework-for-climate-impact/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }