The majority of finance for REDD in Brazil has been delivered through bilateral sources or federal government resources. Domestic Brazilian public finance from non-carbon market activities, includes general debt financing and tax revenues to support domestic REDD policies, such as low-interest loans proposed by the Ministry of Agriculture, Livestock and Supply (MAPA) (EPRI, 2010). Another key source of finance for climate change in general is the National Fund for Climate Change which generates around USD 150 million per year. In 2008, Brazil received a pledge of USD 1 billion from Norway for the Amazon Fund to be disbursed over 7 years, according to its performance in reducing the deforestation rates. In its first year, the Amazon Fund contracted six projects collectively worth around USD 50 million. In early 2011, nine projects had been contracted and a further five approved by the fund. Brazil is not engaged with either the UN-REDD or FCPF programmes but has recently been approved to become a pilot country under the Forest Investment Program (FIP). Brazil can receive up to USD 70 million from FIP to finance REDD implementation phase. Most governmental programs, both national- and state-level, are funded domestically with some occasional assistance coming through development agencies such as GTZ. Subnational projects are being developed with a variety of funding sources, including private foundations, and other private organisations that are either purchasing emission reductions or investing in the project development.
EPRI. 2010. Brazil’s Emerging Sectoral Framework for Reducing Emissions from Deforestation and Degradation and the Potential to Deliver Greenhouse Gas Emissions Reductions from Avoided Deforestation in the Amazon’s Xingu River Basin.