Governance deficiencies of environmental and forest funds in Pará and Mato Grosso



Many international and domestic government and civil society actors see the use of environmental and forest funds as an important tool for raising and managing funds to create incentives for maintaining standing forests, as part of the international discussions on reducing emissions from deforestation and forest degradation (REDD+). As a contribution to current discussions about creating and implementing such funds at a state level, we analyzed four existing forest and environmental funds in the States of Pará and Mato Grosso. Our analysis reveals serious shortcomings in the management of those funds and their ability to achieve the environmental and social objectives for which they were created. To improve the governance of these funds we recommend: increasing transparency of operating rules; adopting mechanisms for civil society participation and expanding transparency and access to information on financial administration of the funds and on the impact of the projects being supported.