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Key messages

• Results-based finance is a cornerstone in the approach to REDD+, as outlined in the Paris Climate Agreement.
• Results-based finance will need to consider not only carbon/emissions-related payments but also incentives for intermediate outputs (such as policy performance) in order to effectively reduce deforestation and forest degradation.
• A major gap in the current guidance for REDD+ finance is a lack of clear, context-relevant criteria and metrics to help justify and mobilize payments.
• Negotiation and agreement on performance outputs and outcomes and their indicators are critical to ensuring national/local ownership and compliance.
• Understanding the variation in costs and who is bearing the different costs of REDD+ will be critical in setting payment levels that can incentivize both carbon-effective and equity outcomes.