The World Bank launched the Forest Carbon Partnership Facility to assist developing countries in reducing their emissions from deforestation and land degredation (REDD). The fund tests performance-based incentive payments to help reduce global emissions.
According to the World Bank, deforestation is responsible for 20 percent of global emissions, with developing countries contributing the greatest amount toward those totals. Deforestation is responsible for about 70 percent of emissions in Indonesia and 80 percent of emissions in Brazil.
The fund has $165 million in commitments toward a goal of $300 million. Germany is the largest donor to the fund so far with $59 million. Other contributors include the United Kingdom (US$30 million), the Netherlands (US$22 million), Australia and Japan (US$10 million each), France and Switzerland (US$7 million each), Denmark and Finland (US$5 million each). In addition The Nature Conservancy, a U.S. based non-governmental organization has committed US$5 million.
This approach is a reasoned and proactive means to help some of the poorest countries in the world build capacity for sustainable forestry practices.