The Private Sector in the REDD+ Supply Chain

The report analyzes the private sector's role in the REDD+ supply chain, identifying key players as investors, producers, brokers, advisors, auditors, and end-buyers. It highlights critical barriers such as policy uncertainty, land tenure disputes, and the need for robust social and environmental safeguards. The document proposes strategies to scale up private investment, including the integration of REDD+ into compliance carbon markets, the adoption of nested crediting frameworks, and the inclusion of extractive industries in conservation dialogues.

• The private sector operates across six primary business functions in the REDD+ supply chain: project investment, project development and implementation, technical expertise and capacity building, validation and certification, carbon credit trading and retailing, and carbon credit purchasing.
• Private sector investment is driven by diverse motivations, including the pursuit of profit in voluntary and anticipated compliance markets, corporate social responsibility (CSR) initiatives, and the desire for 'carbon neutrality' among emissions-intensive industries.
• A significant barrier to private sector engagement is the lack of policy certainty and clear regulatory frameworks, which limits long-term demand for REDD+ credits and increases risk for investors.
• Undisputed land tenure and carbon ownership are fundamental prerequisites for mobilizing private finance, as investors require security over the rights to the carbon sequestered.
• The report identifies a 'nested framework' as a promising mechanism to facilitate private investment by allowing subnational projects to coexist with national accounting, reducing the risk of intra-country leakage.
• Integrating REDD+ into compliance carbon markets—such as those in California, South Korea, Australia, and Japan—is seen as essential for achieving the scale of investment that voluntary markets cannot provide.
• Extractive industries, including logging, mining, and oil and gas, are major drivers of deforestation and must be moved beyond CSR initiatives to be fully incorporated into the REDD+ supply chain.
• There is a critical need for binding social and environmental safeguards, including Free, Prior and Informed Consent (FPIC), to prevent 'land grabbing' and protect the rights of indigenous and forest-dependent communities.

APA

Bernard, F., McFatridge, S., & Minang, P. A. (2012). The Private Sector in the REDD+ Supply Chain. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/redd_private_sector_report.pdf

Chicago

Bernard, Florence, Scott McFatridge, and Peter A. Minang. The Private Sector in the REDD+ Supply Chain. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/redd_private_sector_report.pdf.

Wikipedia

{{cite report |last1=Bernard |first1=Florence |last2=McFatridge |first2=Scott |last3=Minang |first3=Peter A. |title=The Private Sector in the REDD+ Supply Chain |publisher=International Institute for Sustainable Development |date=August 2012 |url=https://www.iisd.org/system/files/publications/redd_private_sector_report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bernard2012private, author = {Bernard, Florence and McFatridge, Scott and Minang, Peter A.}, title = {{The Private Sector in the REDD+ Supply Chain}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = aug, url = {https://www.iisd.org/system/files/publications/redd_private_sector_report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }