About carbon markets, carbon credits compensate for emissions that have been avoided, rather than for the protection of forests. A different initiative, Brazil’s Tropical Forest Forever Facility, proposes to reward countries with up to $4 a year for each hectare spared from deforestation.
How is it expected to work?
With the help of carbon markets, the project is expected to gain about $25 billion from funders and around $100 billion from investors. More than 20% will have to be given to Indigenous peoples or local communities. Furthermore, the loss of one hectare of forest will cancel the reward for 100 hectares.
How much funding is there?
At present, there are $7.3 billion raised from sponsors, while the goal is worth $10 billion. Critics state that such funding will be small and insignificant given the current conditions.
Markets or funds?
The credits will still be able to act as the funding source for forests, although according to recent research, many of them were oversold; therefore, it can raise concerns regarding other nature markets studied in our report about biodiversity credits.
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