With COP30 in Belem approaching, scaling-up finance for, and investment in, forests and nature has become a core focus of climate policy discussions. Forests provide vital and undervalued ecosystem services – such as carbon storage and sequestration, biodiversity conservation, and water and soil protection – that remain largely underpriced. Consequently, investments that enhance and protect forests are at a disadvantage compared to investments that put these benefits at risk. While a wide range of tools (e.g. REDD+ payments, carbon credits, biodiversity offsets, and payments for ecosystem services) have been developed to better price positive externalities, obstacles remain to scaling them effectively.
This session will explore the challenges, best practises and innovative financing instruments involved in mobilising finance for sustainable forest management (SFM) to amplify forests’ climate mitigation impact. It will examine the viability and challenges of various instruments, such as the integrity, effectiveness and additionality of actions they promote, and how to ensure their long-term impacts.