Reduced emissions due to Reduced Deforestation and Forest Degradation (REDD) is an innovative instrument that entitles developing countries to preserve forests that otherwise would have been cleared. It is justified on the fact that deforestation and forest degradation constitute one of the main sources of global carbon emissions, even exceeding gas emissions from the transportation sector. However, contrary to most market instruments, REDD has not been formally implemented yet and its key features (and to some extent its definition) are still being negotiated. Under this scenario we discuss important issues related to its expected effectiveness, cost‐efficiency and social impacts and try to address its role in a wider policy mix for conservation.
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