A Nested Approach to REDD+: Structuring Effective and Transparent Incentive Mechanisms for REDD+ Implementation at Multiple Scales
"In order for REDD+ to be successful, incentives will need to reach the actors responsible for addressing the drivers of deforestation and for shifting land use to a more sustainable and low-carbon model. These actors span multiple scales, from international commodity buyers to national governments to sub-national governments to indigenous peoples and forest-dependent communities to individual landowners/users.
Devising effective and transparent carbon accounting systems and incentive mechanisms that motivate both national and sub-national actors will be critical to successfully implementing REDD+.
A nested approach to REDD+ is one way to structure such a system. Under a nested approach the national government could set up a national accounting framework and establish a nation-wide monitoring system. The national government could implement certain policy reforms that would lead to verifiable emission reductions and therefore earn incentives from an international system (or a bilateral arrangement). Meanwhile, implementation of REDD+ activities could also occur at the sub-national level led by local/regional governments, communities, NGOs, or private developers. These activities would account for emission reductions at the sub-national level and earn incentives directly from the international (or bilateral) system based on those reductions. Under the approach proposed in this paper, the sub-national accounting would need to be “trued-up” to the national level (i.e. all credits issued in any given year are based on the performance of the nation as a whole relative to its reference emission level)."