Results-based forest protection in Amazonia

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The aim of the project is to support the Brazilian state of Mato Grosso in its efforts to reduce deforestation and promote sustainable use of forests. This is the second phase of the REM Mato Grosso project, which began in 2018. The project is part of the REDD Early Movers (REM) program, which has been providing results-based financing in the form of grants for verified emission reductions from avoided deforestation under the UNFCCC REDD+ mechanism since 2012. In the first phase, emission reductions of 10 million tCO2e were remunerated with the equivalent of EUR 44.3 million. The second phase grants of EUR 15 million from the German Federal Ministry for Economic Cooperation and Development (BMZ) and GBP 15 million from the United Kingdom (Department for Energy Security & Net Zero, DESNZ) are to be used to make results-based payments for emission reductions from avoided deforestation between 2018 and 2025. The funds paid out are reinvested in four sub-programs within a pre-agreed distribution system (benefit sharing). At least 65% of the funds are intended to generate direct effects at the local level and improve the living conditions of the target group (small farmers, indigenous people, collectors, fishermen, traditional communities, medium-sized agricultural enterprises). The focus is on establishing deforestation-free value chains and low-carbon agriculture. The remaining funds go to government measures to control deforestation and combat deforestation and forest fires, as well as to strengthening the federal REDD+ system. The political sponsor of the measures is the government of the state of Mato Grosso, represented by its Environmental Secretariat (SEMA). The recipient of the funds is the Brazilian non-governmental organization Fundação Amazônia Sustentável (FAS), which manages the funds and implements them in cooperation with SEMA.