In order to increase the cost-effectiveness of REDD+ activities, it will be fundamental to account for their participation in the carbon market. A Green Fund* has been proposed to finance activities including conservation, sustainable forest management and enhancement of carbon stocks, while a market-based approach – ideally linked with the global carbon market – is preferred for activities that reduce deforestation and degradation. Inclusion in global markets should be accompanied by deeper target cuts by developed countries in order to create demand for REDD credits.
Reference emissions levels, at all scales of implementation, should be based on historical data on GHG emissions and should take into account national circumstances. Mexico strongly encourages a national accounting system to facilitate reporting and to avoid double-counting of emission reductions or removals. The implementation of activities at the national or sub-national level will be determined by each country on a voluntary basis, as their sovereign right, taking into account their specific national circumstances and requirements. Sub-national approaches for some countries, however, might constitute a step towards the development of national approaches.