Rewards for avoiding deforestation - special support for pioneers

In 2014, the governments of Germany, Norway and the United Kingdom – “GNU” (for Germany, Norway and United Kingdom) – entered into a partnership to combat deforestation and promote reforestation. As part of this partnership, GNU governments made several joint statements to support ambitious actions under REDD+. For example, they signed the New York Declaration on Forests and the Paris Leaders’ Statement on Forests and Climate. As part of these, the signatories undertake to halve the decline in the area of natural forests by 2020 and stop this completely by 2030 to the extent that this is possible, to restore forests and arable land on a large scale and to curb emissions produced as a result of deforestation and forest degradation (REDD+). A total of USD 5 billion has been promised in order to achieve this target. As part of the REM projects in Acre, Mato Grosso, Ecuador and Colombia, the GNU partnership has disbursed almost EUR 230 million (as of 2024). In addition, the GNU partnership has expanded its thematic scope: from results-oriented financing for REDD+ programmes to a broader focus on various levers to reduce deforestation, e.g. via agricultural supply chains, carbon markets, transformation of the financial sector, strengthening the land rights of indigenous people and local communities (IP&LC). The GNU partnership has established important collaborations in recent years with countries such as Colombia, Brazil, Peru and India. The REDD Early Movers (REM) programme is a key instrument of the GNU partnership. Following a hiatus while President Trump was in office, the USA rejoined the programme in 2024. The partnership is now called GNU2.

More information on GNU donors:

Germany: Federal Ministry for Economic Cooperation and Development (BMZ)

Norway: International Climate and Forest Initiative (NICFI)

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 from the UK. Implementation began in 2017 and is expected to continue until the end of 2027. However, the Bolsonaro government’s policies also left their mark on Acre. During this time, the state's deforestation rate increased sharply, almost tripling between 2018 and 2021. The new government under Lula has declared the conservation of the Amazon rainforest a national priority and reactivated the Action Plan against Deforestation in the Amazon (PPCDAM). Therefore, 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 t of CO2e have been reduced and compensated. 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).

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

REM Acre Phase II

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 government is now facing new 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 Federal Ministry for Economic Cooperation and Development (BMZ) made EUR 17 million avalable for REM in Mato Grosso, while the UK Department for Energy Security and Net Zero provided a further GBP 24 million. So far, almost 4,200 families have benefited, with around 92,000 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 United Kingdom committed a further EUR 15 million and GBP 15 million respectively for a second phase. Implementation of the funds has been underway since mid-2024.

Technische Beschreibung des REMs durch die GIZ (German)

REM Mato Grosso

FUNBIO

GIZ projects in REM Mato Grosso and Acre

REM Mato Grosso (Instagram)

Due to its enormous diversity of trees, Ecuador is one of the ten most species-rich countries in the world. But deforestation is also a problem here: the expansion of agriculture is considered to be one of the main reasons for this. Forests are being converted into agricultural land, especially in the country’s coastal and Andean regions. In addition, illegal and unsustainable use of wood is degrading and thinning out forest areas. BMZ has made EUR 11 million available for the first phase of the project. In addition, the Norwegian government is funding the project with NKR 300 million (approx. EUR 30 million). As a result, full remuneration for the reduction in deforestation rates has been made retroactively for the years 2015 to 2019. Two REM follow-up phases are planned in Ecuador for the years 2024 to 2028.

The Federal Ministry for Economic Cooperation and Development (BMZ) has committed EUR 8.4 million and EUR 15 million for this. Up to 70% of the funds from phase one and the two subsequent phases are going towards local measures for forest conservation as part of the “benefit sharing” component. This includes promotion of forest conservation by rural and indigenous communities, restoration and afforestation activities, direct promotion of sustainable products (non-wood forest products), commercialisation of deforestation-free products and the financing of initiatives by indigenous communities. In the first phase, more than 4,500 families benefited, and more than 2,600 municipal associations concluding arrangements for the conservation of local forests (as of 2023). Phases two and three are set to focus in particular on the promoting the empowerment of women in rural regions. A total of 30% of the funds of the “benefit sharing” component will go to strengthening structural measures in the area of national forest and environmental policy.

REM Ecuador

Factsheet – REM in Ecuador (as of 2019)

REM Ecuador (Instagram)

Colombia, whose rainforests are 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 halting deforestation completely by 2030. However, the peace agreement concluded in 2016 and the coronavirus pandemic have 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 target set by Colombia by 2030, it has significantly expanded its protected forest areas. The Visión Amazonía initiative is an important strategy for forest protection and sustainable land use. It aims to gradually reduce deforestation by specifically promoting sustainable development in the former conflict region. For example, REM finances projects that help indigenous communities use sustainable production methods and protect biodiversity.

The first phase of the project is due to conclude in 2024. It was jointly financed by the three GNU donors in the amount of EUR 78 million and recorded a reduction in emissions amounting to 17.5 million tCO2 as a result of reduced deforestation. Beneficiaries in the first phase of the project included more than 12,200 farming families and 72 projects supported by women. In addition, almost 25,500 indigenous families and 19.5 million hectares of indigenous territories have benefited from the benefit sharing programme so far (as of 2023). The second phase with grants from the Federal Ministry for Economic Cooperation and Development (BMZ) (around EUR 20 million) and Norway (around EUR 14 million) has been in implementation since 2023.

Visión Amazonía of the Colombian Ministry of the Environment

Presentation of the REM programme - Visión Amazonía (as of 2023)

Visión Amazonía (Instagram)

REDD/REM Colombia