A novel deforestation risk and baseline allocation model for the next generation of nested REDD+ projects.

Nature-based solutions that use a counterfactual scenario depend heavily on the methodology used to determine the business as usual (BAU) case, i.e., the "baseline." Reducing emissions from deforestation and forest degradation (REDD+) projects traditionally set baselines using a "reference area" as a control for estimating BAU deforestation and emissions in the treatment (project) area. While the REDD+ market is shifting from project-based to nested approaches as countries increase their efforts to meet nationally determined contributions (NDCs) to the Paris agreement's global climate target, methodologies for allocating national baselines are not yet formalized and tested, despite an urgent need to scale the market. We present a novel method for mapping deforestation risk and allocating national forest reference emission levels (FREL) to projects: baseline allocation for assessed risk (BAAR). This approach provides a spatial predictor of future deforestation using a dynamic vector, and a method for allocating a FREL to differentiated risk areas at the project level. Here, we present BAAR using 34 REDD+ projects in the Democratic Republic of the Congo (DRC). We demonstrate the importance of risk-based FREL allocations to balance fitness for purpose and scientific rigor. We show how BAAR can be used by governments to focus voluntary carbon market finance in areas at highest risk of imminent deforestation, while maintaining alignment with nationally determined contribution (NDC) goals.

Enhancing conservation, ecosystem services, and local livelihoods through a wildlife premium mechanism.

We propose the wildlife premium mechanism as an innovation to conserve endangered large vertebrates. The performance-based payment scheme would allow stakeholders in lower-income countries to generate revenue by recovering and maintaining threatened fauna that can also serve as umbrella species (i.e., species whose protection benefits other species with which they co-occur). There are 3 possible options for applying the premium: option 1, embed premiums in a carbon payment; option 2, link premiums to a related carbon payment, but as independent and legally separate transactions; option 3, link premiums to noncarbon payments for conserving ecosystem services (PES). Each option presents advantages, such as incentive payments to improve livelihoods of rural poor who reside in or near areas harboring umbrella species, and challenges, such as the establishment of a subnational carbon credit scheme. In Kenya, Peru, and Nepal pilot premium projects are now underway or being finalized that largely follow option 1. The Kasigau (Kenya) project is the first voluntary carbon credit project to win approval from the 2 leading groups sanctioning such protocols and has already sold carbon credits totaling over $1.2 million since June 2011. A portion of the earnings is divided among community landowners and projects that support community members and has added over 350 jobs to the local economy. All 3 projects involve extensive community management because they occur on lands where locals hold the title or have a long-term lease from the government. The monitoring, reporting, and verification required to make premium payments credible to investors include transparent methods for collecting data on key indices by trained community members and verification of their reporting by a biologist. A wildlife premium readiness fund would enable expansion of pilot programs needed to test options beyond those presented here.