Implementing Phases 1 and 2 of REDD+ requires funding that is known as “investment finance”. This can come from many sources:
- Domestic funding of current initiatives such as the Myanmar Reforestation and Rehabilitation Programme (MRRP)
- Domestic funding from re-programming of finance, for example, the elimination of perverse incentives that lead to deforestation or forest degradation
- New and additional domestic funding from government budget allocations
- Domestic private sector finance, such as private sector investment in reforestation
- Funding from international donors, such as from Norway, through the UN-REDD Programme, for Phase 1
Under Phase 3 of REDD+, Myanmar will qualify for results-based payments from the international community, possibly through mechanisms such as the Green Climate Fund. A system to receive, manage and allocate results-based payments will be required; the UN-REDD Programme is currently assisting in analyzing the issues associated with design of such a system. Most countries have decided to create a National REDD+ Fund for this purpose – either a stand-alone fund, or a sub-fund of an existing environmentally-related fund (such as the Environmental Management Fund, created under the Environmental Conservation Law of 2012).
