Global incentive mechanism to protect standing forests

The planet’s future hinges on safeguarding the remaining tropical forests. These forests, crucial for reducing global temperature by at least 1°C, are home for two-thirds of global biodiversity and absorb 29% of the world’s annual CO2 emissions.

In this Global Futures Bulletin, we present a global incentive mechanism designed to enhance, not just replace, carbon markets, and to more effectively compensate those committed to conserving forest.

The core concept involves a simple and intuitive set of new incentives, enticing individuals, organizations, or nations to cease deforestation in return for yearly payments per hectare of preserved forest. Funding would come from multiple sources, including combined funding mechanisms from philanthropies, bilateral and multilateral funds, and institutional investors.

This mechanism aims to cover the opportunity cost of the immediate land-use benefits from forest degradation, such as livestock farming and monoculture agriculture.

Nations that possess these vital ecosystems should be at the forefront of this movement. Brazil, with 59% of its territory covered by forests and set to host COP30 in 2025, is poised to be a key player in developing a global financial framework that secures a sustainable future for the planet and its people.

 

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