In response, in October 2010, the United States Government (USG) launched its strategy for Reducing Emissions from Deforestation and Degradation (REDD+) and increasing carbon sequestration in forests in developing countries. This has been followed by USAID launching its Climate Change and Development strategy in January 2012.

Both strategies support REDD+ as a method to combat global climate change because it protects ecosystem biodiversity and helps to preserve livelihoods and welfare of people in developing countries. The USG has pledged US$ 1 billion in “fast start financing” between 2010 and 2012 to support the development of REDD+, including assistance in promoting markets for REDD+.1

But meaningfully reducing global deforestation requires far greater investment and necessitates that the bulk of activities be funded with various forms of private capital. Annual investment in the REDD+ sector is currently below US$ 200 million, but the investments needed to reduce deforestation by 50% in 2030 are estimated to between US$ 17 - US$ 28 billion annually (Eliasch, 2008). The United States Agency for International Development (USAID) has contributed significantly to the creation and execution of the US REDD+ Strategy through global, regional and mission-based activities. USAID commissioned this report to identify how USG investments and policies could facilitate and