Created in the late 1990s as an internationally accepted and useful mechanism for mitigating climate change, REDD+ (Reducing Emissions from Deforestation and Forest Degradation) went through a series of transformations and debates until it reached its final definition at the UN Climate Convention (United Nations). At IPAM (Amazon Environmental Research Institute), researchers actively participated in the development of the mechanism, ensuring that it was used effectively to combat climate change and that traditional peoples and communities were included in the distribution of resources.
“IPAM participated in the development of the REDD+ concept at a time when there was no talk of paying for native forests, but only for reforestation. For countries to be able to access REDD+ resources, they need four elements: a national emissions reduction strategy, a robust baseline, an effective emissions monitoring system and safeguards. Brazil was the first country to meet all these requirements,” says Gabriela Savian, IPAM’s Public Policy Director.
REDD+ is a mechanism that allows countries to be remunerated for keeping their forests standing, avoiding deforestation and thus greenhouse gas emissions associated with deforestation and forest degradation. Its definition later came to include conservation activities, sustainable forest management and increasing carbon stocks in developing countries.
The concept was born out of a partnership between Brazilian and American researchers, which resulted in a proposal known as “Compensated Emissions Reduction”, presented during COP9, held in Milan, Italy, in 2003, by IPAM and partners. According to this proposal, developing countries with tropical forests that managed to reduce their national emissions from deforestation would receive international financial compensation proportional to the emissions avoided. This concept of compensated reduction became the basis for discussions on REDD in the following years.
Researchers from IPAM and other organizations during the discussions on carbon sinks at COP 9 (Photo: IPAM Archive)
“We defend REDD+ because it is a robust system. After the Kyoto Protocol came the Warsaw Framework and the Cancun Safeguards, which are the international agreements that structure REDD+, especially in its jurisdictional aspect. Brazil was a pioneer: Acre and Mato Grosso raised funds and had the technical support of IPAM researchers,” adds Gabriela Savian.
The Cancun Safeguards, established during COP 16 in 2010, ensure that REDD+ actions are implemented in an ethical, fair and environmentally safe manner. They ensure that forest conservation projects respect the rights of indigenous peoples and local communities, promote the effective participation of stakeholders and preserve the integrity of ecosystems.
The Warsaw Framework, in turn, was adopted at COP 19 in 2013 and consolidated the technical and institutional bases necessary for the effective implementation of REDD+. It provides clear guidelines for developing countries to access payments by results, based on real, measurable and verifiable reductions in emissions from the forestry sector.
The Framework establishes criteria such as the creation of reference levels for forest emissions, national monitoring systems and results reports, always accompanied by the observance of safeguards. By bringing clarity and legal certainty to international financial flows, the Warsaw Framework has become a key element in attracting climate investments and strengthening trust between countries in the North and South, making it possible to operationalize REDD+ as one of the main mechanisms for mitigating climate change.
Read more about REDD+ and how IPAM was part of its creation at the Climate Conferences.
REDD+ in the States
Over the years, IPAM has been active in structuring REDD+ in several states in the Legal Amazon, especially Acre, Maranhão, Mato Grosso, Pará and Roraima, where it has promoted the strengthening of governance bodies and encouraged the inclusion of traditional communities in decision-making.
“IPAM researchers had a moment of immersion with the Acre government back in 2008. At that time, the Institute dedicated itself to thinking, based on international agreements, about the best way to implement REDD+ on the national stage. As a result, SISA [Acre’s Environmental Services Incentive System], the MRV [Measurement, Reporting and Verification] system and other public policies were developed. At IPAM, we contributed technically and scientifically to the formulation of the foundations of Acre’s policy, which became the first jurisdiction to raise funds to pay for results linked to reducing emissions from deforestation and degradation,” recalls Gabriela Savian.
Among the main challenges for an effective application of the tool are ensuring social participation, especially the inclusion of indigenous peoples and traditional communities, and the equitable distribution of resources among the different beneficiary groups. Another recurring point in the seminars and workshops promoted by IPAM and its partners is the concern about protecting territories, which often face threats and invasions.
REDD+ course given by IPAM researchers to indigenous communities and organizations in Manaus, 2023. (Photo: Luana Sapará / COIAB)
“In Mato Grosso, we helped formulate the PCI [Produce, Conserve and Include] strategy, a long-term policy aimed at reducing emissions in the state. In Maranhão, we contributed to the creation of the REDD+ Jurisdictional System Law, the first time a state has incorporated the prospect of a carbon market into its legislation. Initially, the discussion revolved around payment by results, but, based on this experience, we began to explore partnerships aimed at trading credits. In Pará, we offered strategic support for the formalization of a contract that provides for an investment of R$ 1 billion in forest protection and recovery actions,” he adds.
As well as directly supporting the implementation of REDD+ at sub-national level, IPAM has also promoted training workshops aimed at indigenous territories and state secretariats in all the states of the Legal Amazon, training more than 650 people. In all these activities, the participation of forest peoples was central, with the understanding that indigenous people, quilombolas, rubber tappers and other traditional communities have historically been the main agents of conservation in the Amazon rainforest – and should therefore be recognized and rewarded for this fundamental role.
REDD+ and carbon credits
The REDD+ mechanism is also part of the carbon market, a system that allows the buying and selling of carbon credits, where each credit represents the reduction or removal of one ton of carbon dioxide (CO₂) from the atmosphere. Companies and governments use these credits to offset their greenhouse gas emissions, thus balancing their environmental impacts.
When a company emits less CO₂ than the permitted limit, it can sell the surplus in the form of credits; if it emits more than expected, it can buy credits to regularize its situation. This mechanism creates a financial incentive to reduce emissions and encourages sustainable projects such as reforestation, renewable energy generation and carbon capture technologies.
There are two main types of carbon market: the regulated market and the voluntary market. The regulated market is established by legislation and international agreements, such as the European Union Emissions Trading System and the Brazilian Greenhouse Gas Emissions Trading System.
The voluntary market, on the other hand, is driven by companies and individuals who wish to offset their emissions on their own initiative, often as part of social and environmental responsibility commitments. Both markets play a key role in combating climate change by promoting the transition to a low-carbon economy.
Approval of the Carbon Market in Brazil
In November 2024, the rules and methodologies for regularizing carbon credit trading in Brazil were approved by the National Congress. Bill 182/2024 sets emission limits for various sectors of the economy and regulates entities that emit more than 10,000 tons of CO₂ per year.
André Guimarães, executive director of IPAM, during a public hearing that discussed the creation of a regulated carbon market in Brazil (Photo: Lucas Guaraldo/IPAM)
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The original proposal did not define the participating sectors, only the emission limits, but was amended to exclude some areas of the agricultural sector. The bill also establishes the SBCE (Brazilian Emissions Trading System), which regulates emissions from economic sectors and companies with annual emissions of more than 10,000 tons.
IPAM played a role in the SBCE precisely in pushing for REDD+ to be included and for there to be this legal security for projects and jurisdictional programs.
“We need financial mechanisms that provide resources for forest conservation and REDD is a solid mechanism with requirements that guarantee the integrity of carbon credits. It acts as a complement to other efforts, providing complete bases so that different resources can be directed correctly to jurisdictions and local communities. It guarantees this robustness,” says Savian.
According to the consulting firm McKinsey, Brazil has 15% of the global potential for carbon capture by natural means, with a chance of meeting 48.7% of the demand of a market that could move US$ 50 billion by 2030. IPAM is therefore mobilizing its decades of scientific and technical experience in the sector to ensure that these resources are generated in the right way and serve to effectively protect forests, their people and combat climate change.