Climate finance for forest conservation will grow

Significance

The wider adoption of net-zero targets by private companies creates further demand for new carbon credits, including from forests. However, the expanding market for carbon credits and the proliferation of crediting schemes also introduces complexity, both for forested countries aiming to fund conservation measures and for prospective credit buyers.

Impacts

• Carbon credit futures contracts are likely to be developed as the market matures.
• Satellite, artificial intelligence and other remote sensing technology will be more regularly used to monitor forest conservation efforts.
• Scrutiny of commodity supply chains for ‘deforestation-free’ products will grow.