The Forest-Climate Nexus: A Fit-for-Purpose Framework for Climate Impact

The report argues that tropical forests must be transitioned from being viewed as climate risks to central climate solutions. Based on an assessment of 91 countries, it highlights that restoring areas deforested since 2001 could capture up to 49 GtCO2. To achieve this, the authors propose the Reversing Deforestation Mechanism (RDM), a results-based financial tool designed to reward net carbon removals at the jurisdictional level. RDM is intended to complement existing frameworks like Jurisdictional REDD+ (JREDD+) and the Tropical Forest Forever Facility (TFFF). At a carbon price of US$ 50 per ton, the RDM could remove up to 2 GtCO2 annually, potentially closing 11–13% of the 2035 emissions gap and generating US$ 100 billion in annual revenues.

• Tropical forests across 91 countries hold 1.27 billion hectares and store 593 gigatons of CO2 equivalent, representing approximately one-third of historical global emissions, though these countries have lost over 10 million hectares per year over the last decade.
• Restoring land deforested since 2001 has the potential to capture up to 49 GtCO2, providing a significant contribution toward the carbon budgets required to limit warming to 1.5°C or 2°C.
• Analysis of 91 countries indicates that deforestation rates and the presence of standing forests do not have a direct relationship with a country's per capita income, suggesting that forest protection does not hinder economic growth.
• Effective forest policies—including protected areas, land-use regulations, and Payments for Environmental Services (PES)—are often vulnerable to political cycles and require stable financial incentives and independent institutions to endure government shifts.
• The proposed Reversing Deforestation Mechanism (RDM) would reward net carbon removals at the jurisdictional level, subtracting emissions from deforestation and degradation from the carbon captured through restoration.
• At a carbon price of US$ 50 per ton, the RDM could generate US$ 100 billion in annual revenues and remove up to 2 GtCO2 per year, which would close 11–13% of the 2035 emissions gap to limit warming to 2.0°C.
• The RDM is designed to function as part of a complementary financial architecture alongside Jurisdictional REDD+ (JREDD+), which focuses on halting deforestation, and the Tropical Forest Forever Facility (TFFF), which focuses on preserving standing forests.

APA

Climate Policy Initiative (2025). The Forest-Climate Nexus: A Fit-for-Purpose Framework for Climate Impact. https://www.climatepolicyinitiative.org/publication/the-forest-climate-nexus-a-fit-for-purpose-framework-for-climate-impact/

Chicago

Climate Policy Initiative. The Forest-Climate Nexus: A Fit-for-Purpose Framework for Climate Impact. 2025. https://www.climatepolicyinitiative.org/publication/the-forest-climate-nexus-a-fit-for-purpose-framework-for-climate-impact/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=The Forest-Climate Nexus: A Fit-for-Purpose Framework for Climate Impact |date=13 October 2025 |url=https://www.climatepolicyinitiative.org/publication/the-forest-climate-nexus-a-fit-for-purpose-framework-for-climate-impact/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025forestclimate, author = {{Climate Policy Initiative}}, title = {{The Forest-Climate Nexus: A Fit-for-Purpose Framework for Climate Impact}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/publication/the-forest-climate-nexus-a-fit-for-purpose-framework-for-climate-impact/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }