Forest Carbon Partnership Facility: Financing for Reducing Emissions from Deforestation and Forest Degradation
By Juan Carlos Pereira (CFC-GS/UFPA) The current climate change mitigation landscape recognizes the preservation of tropical and subtropical forests as an indispensable pillar for achieving the goals set forth in the Paris Agreement. Forests store approximately 80% of terrestrial carbon above ground and 40% of carbon below ground, but their destruction remains a critical source of emissions, accounting for about 15% of global greenhouse gas emissions. In light of this urgency, the Forest Carbon Partnership Facility (Forest Carbon Partnership Facility – FCPF), which became operational in June 2008, has established itself as a pioneering global partnership focused on reducing emissions from deforestation and forest degradation, conserving carbon stocks, sustainably managing forests, and increasing forest carbon stocks (REDD+). Managed by the World Bank, the FCPF acts as a global laboratory, demonstrating how REDD+ policies can be implemented at the national and jurisdictional levels, generating lessons learned that shape the high-integrity carbon market. Since its inception, the Carbon Fund has paid 10 countries for their emission reduction (ER) targets. The 15 ER programs have reported positive results in their initial reports and continue to make good progress through the validation, verification, and issuance stages of the reductions. Country Value of the Signed ERPA ERPA Payments Received Chile $26M $5.1M Congo, Rep. Dem. $55M $19.5M Congo, Rep. do $41.8M — Costa Rica $60M $34M Ivory Coast $50M $50M Dominican Republic $25M — Fiji $12.5M — Gana $50M $21.7M Guatemala $52.5M — Indonesia $110M $20.9M Laos (Lao PDR) $42M $16M Madagascar $50M $8.8M Mozambique $50M $7M Nepal $45M — Vietnam $51.5M $51.5M Source: Banco Mundial (2023) The FCPF has 17 donors that have contributed a total of $1.3 billion.8 These donors are classified as public-sector participants (national governments and the European Commission) and private-sector participants or nongovernmental organizations. Donor Type Participating Organizations Public Sector (Largest Taxpayers) Germany, Norway, United Kingdom, United States, European Commission 17 Public Sector (Other) Australia, Canada, Denmark, Finland, France, Italy, Japan, the Netherlands, Spain, Switzerland 17 Private Sector and NGOs BP Technology Ventures Inc., The Nature Conservancy 17 Source: Banco Mundial (2023) All projects linked to the Carbon Fund undergo a rigorous audit process conducted by independent entities known as Validation and Verification Bodies (VVBs). These bodies include institutions such as AENOR, SCS Global Services, and Aster Global, which are responsible for analyzing whether the Emissions Reduction Monitoring Reports meet the criteria established in the Methodological Framework. This verification process aims to ensure, with a reasonable level of confidence, that statements related to greenhouse gases (GHGs) do not contain material errors. The concept of materiality—that is, the acceptable limit for quantitative errors or omissions—is typically defined as approximately 1% of the total reported emissions and removals. In addition, the audit also considers qualitative aspects, such as the reliability of the data management system and compliance with required safeguards. Under the FCPF standard, carbon accounting encompasses different pools and types of greenhouse gases, varying according to the characteristics of the forest ecosystem being analyzed: You can read more articles about climate finance on our blog and access financing data on our tracker. Check it out! REFERENCES BANCO MUNDIAL. Carbon Fund of the Forest Carbon Partnership Facility (FCPF): Annual Report 2023. Washington, DC: World Bank Group, 2023. Disponível em: https://documents1.worldbank.org/curated/en/099335411042585231/pdf/IDU-9605b341-8a10-4a92-aceb-4695a9adb87d.pdf. Acesso em: 23 mar. 2026. FOREST CARBON PARTNERSHIP FACILITY (FCPF). About the FCPF. [Washington, DC], 2026. Disponível em: https://www.forestcarbonpartnership.org/about. Acesso em: 23 mar. 2026. FOREST CARBON PARTNERSHIP FACILITY (FCPF). Donor Participants. [Washington, DC], 2026. Disponível em: https://www.forestcarbonpartnership.org/donor-participants. Acesso em: 23 mar. 2026. FOREST CARBON PARTNERSHIP FACILITY (FCPF). FCPF. [Washington, DC], 2026. Disponível em: https://www.forestcarbonpartnership.org/fcpf. Acesso em: 23 mar. 2026. FOREST CARBON PARTNERSHIP FACILITY (FCPF). FCPF Participants. [Washington, DC], 2026. Disponível em: https://www.forestcarbonpartnership.org/fcpf-participants. Acesso em: 23 mar. 2026. FOREST CARBON PARTNERSHIP FACILITY (FCPF). What is REDD+? [Washington, DC], 2026. Disponível em: https://www.forestcarbonpartnership.org/what-redd. Acesso em: 23 mar. 2026. FOREST CARBON PARTNERSHIP FACILITY (FCPF). FCPF Standard. [S. l.], 2026. Disponível em: https://www.forestcarbonpartnership.org/fcpf-standard/. Acesso em: 23 mar. 2026. FOREST CARBON PARTNERSHIP FACILITY (FCPF). Validation Report. [S. l.]: AENOR, 15 set. 2025. Disponível em: https://www.forestcarbonpartnership.org/sites/default/files/documents/15092025_validation_report_v4_dominican_aenor.pdf. Acesso em: 23 mar. 2026.
