Policy makers designing REDD+ programs struggle with creating private sector incentives for forest protection. This is partly because the role of private finance in addressing drivers of deforestation and forest degradation is not yet well understood. The debate surrounding private sector involvement in REDD+ implementation often limits the role of the private sector to carbon trading and investments in carbon credits. To contribute to expanding the perceived role of the private sector in REDD+, the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) contracted a number of leading experts to analyze and develop private sector engagement options and funding strategies. UNIQUE provided the forestry sector background report and supported the development of a policy paper.

• Review of the timber and wood related drivers of deforestation and forest degradation.
• Analysis of forest management investment models relevant for REDD+ co-investments.
• Outlining of relevant REDD+ co-investments related to timber supply and demand.
• Analysis of value chain investments and company-community partnership investments.
• Analyzing public procurement and certification schemes.