REDD+/REM

Rewards for avoiding deforestation – special support for pioneers of forest conservation

The Brazilian state of Acre in the western Amazon region has long been a pioneer in forest protection: since 1998, in fact. The federal government adopted a comprehensive package of measures to promote forest protection and sustainable land use, and to create incentives for sustainable development. The focus is on communities that live from forests, including indigenous peoples and rubber producers.

In return, the German Federal Government supports the state with funds from the REM programme, which provides performance-based payments for reducing deforestation-related emissions. The federal state invests the funds in further increasing forest protection and climate action. And the general population and environment in Acre benefit in a wide variety of ways, too.

Following a successful first phase, contracts were signed in 2017 to conclude a new phase of the REM programme, comprising EUR 10 million from Germany and close to GBP 18 million (approx. EUR 21 million) from the UK. Implementation began in 2017 and is expected to continue until the end of 2027. However, the Bolsonaro government’s policies (2019 - 2022) also left their mark on Acre. During this time, the state's deforestation rate increased sharply, almost tripling between 2018 and 2021. The current government under Lula, who started his presidency in 2023, has declared the conservation of the Amazon rainforest a national priority and reactivated the Action Plan against Deforestation in the Amazon (PPCDAM). This policy change is expected to lead to a downturn in deforestation in Acre as well. In consultation with the donors, KfW kept the programme running during the Bolsonaro period and has now approved further funds for results-based payments. To date, 6 million tonnes of CO₂e have been reduced and compensated – 15% more than the target of 5.2 million tonnes. In addition, 22,000 indigenous people and a total of over 17,000 families in the state of Acre are benefiting from measures for sustainable production and animal breeding (as of 2024).

REM Acre Phase II

Institute for Climate Action of the Ministry of Environment Acre on REM

REM project (GIZ) in Acre and Mato Grosso

REM Acre (Instagram)

The Brazilian state of Mato Grosso had initially achieved substantial success in reducing emissions through avoided deforestation by implementing a targeted strategy to combat deforestation and fires. Despite increased deforestation rates in Brazil as a whole, Mato Grosso was able to significantly reduce its CO₂ emissions from the forestry and agriculture sector while at the same time consolidating its position as Brazil’s largest agricultural producer. However, deforestation also increased again in Mato Grosso during the Bolsonaro years and the current government is therefore facing the resulting challenges.

The aim of the REM programme in Mato Grosso was to save close to 9 million tCO₂e through the results-based remuneration of avoided deforestation for the years 2016 to 2019. This target was exceeded by more than 10 million tCO₂e. The BMZ made EUR 17 million available for REM in Mato Grosso, while the UK Department for Energy Security and Net Zero provided a further GBP 24 million (approx. EUR 28 million). So far, almost 4,200 families have benefited, with more than 90,000 hectares of land being managed in a low-carbon way (as of 2024). Due to the project's success, the German Federal Government and the UK committed a further EUR 15 million and GBP 15 million (approx. EUR 17.5 million) respectively for a second phase. Implementation of the funds has been underway since mid-2024.

REM Mato Grosso

FUNBIO

REM project (GIZ) in Mato Grosso and Acre

REM Mato Grosso (Instagram)

Due to its unique topography and climatic conditions (from the coast to the Andean mountains and tropical rainforests), Ecuador is one of the most biodiverse countries in the world. But deforestation is a serious problem, mainly due to the expansion of agriculture. Forests are being converted into agricultural land, especially in the country’s Andean and Amazon regions. In addition, illegal and unsustainable harvesting of wood is degrading natural forest areas.

The BMZ has provided EUR 11 million in funding available for the first phase of the project. In addition, the Norwegian government funded the project with NKR 300 million (approx. EUR 30 million). As a result, financial compensation for the reduction in deforestation rates was made retroactively for the years 2015 to 2019. Two follow-up phases of the REM programme are currently being prepared in Ecuador, with an estimated start in the third quarter of 2025.

BMZ commitments for the second and third phase amount to EUR 8.4 million and EUR 15 million respectively. Up to 70% of the funds from all programme phases are invested on the local level for forest conservation and sustainable resource management through the benefit sharing mechanism. This includes promotion of forest conservation by rural and indigenous communities, restoration and afforestation activities, promotion of sustainable forest products (non-wood forest products), commercialization of deforestation-free products, such as cocoa and coffee, and the financing of initiatives by local communities.

In the first phase, almost 10,000 families benefited from the programme, and 24 conservation agreements were signed to protect more than 300,000 hectares of natural forest (as of 2024). Phases two and three will apply a similar approach and will additionally focus on the empowerment of women in rural regions. According to the benefit sharing mechanism, the remaining 30% of the funds will finance the institutional strengthening on the national policy level in the area of forest conservation.

REM Ecuador

REM Ecuador (Instagram)

Colombia, with a forest cover of 52% of its territory, and rainforests among the most species-rich in the world, is strongly committed to reducing deforestation in the Amazon. The Colombian government has set an ambitious goal of zero net deforestation by 2030. However, the peace agreement signed in 2016 has led to increased deforestation pressure – due to illegal land seizure, the expansion of livestock pastures, coca production and illegal mining. To counteract this and achieve the national target set by 2030, Colombia has significantly expanded its protected forest areas.

REM Colombia is implemented by Visión Amazonía initiative, which is an important strategy for forest protection and sustainable land use. It aims to gradually reduce deforestation by specifically promoting sustainable development in the Amazon region. REM finances projects that help farmers and indigenous communities use sustainable production methods and protect biodiversity, and it promotes forest economy in prioritised Forest and Biodiversity based Development Units. This strategy and financial instruments developed in the REM programme (payment for ecosystem services and green credits) have been adopted by the Ministry of Environment as national policy.

The first phase of the REM programme ran from 2016 to 2023 and was jointly financed by the three GNU donors in the amount of around EUR 78 million. It recorded a reduction in emissions amounting to around 18 million tCO₂e as a result of reduced deforestation through results-based payments. During this phase, deforestation in the Amazon reduced by 69% with respect to 2017, with the lowest rate ever measured. Beneficiaries included 12,400 smallholder families, conserving almost 300,000 hectares of forest. In addition, almost 25,500 indigenous families and 19.3 million hectares of indigenous territories have benefited, corresponding to more than 70% of all indigenous territories. Over 50% of the projects were led by women.

The second phase started in December 2022 and is expected to run until December 2027. It is funded with grants from the BMZ (EUR 20 million), Norway (around EUR 14 million) and UK (around EUR 17 million). So far, more than 3,365 families have benefited from a payment for ecosystem services scheme. There are 42 projects with indigenous people, of which more than 50% are led by women (as of June 2025). Therefore, the projects not only preserve biodiversity but also empower communities and enhance women's roles in sustainable development.

Visión Amazonía of the Colombian Ministry of the Environment

REM project (KfW) in Colombia

Visión Amazonía (Instagram)