Subsidies to key commodities driving forest loss - Implications for private climate finance

Summary

There is an increasing focus on the role that public and private resources can play in supporting activities that reduce forest loss as part of wider efforts to address climate change, and ensure sustainable development. This report highlights the role that subsidies play in shaping the investment climate in a country, and how they are (and can be) used to drive or avoid forest loss.

From our initial review of subsidies to beef and soy in Brazil, and timber and palm oil in Indonesia we find that there are significant opportunities for REDD+ finance to support identification, estimation and designing the reform of these subsidies - as part of a wider transition to economic development which increases agricultural productivity while avoiding forest loss.