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What is the RFF?

Malaysia's National REDD Plus Strategy aims to ensure forest resources and their ecosystem services are secured. Implementing the Strategy will help increase carbon sequestration by up to 23 million tonnes CO2 annually.

The REDD Plus Finance Framework (RFF) was developed as a finance mechanism to incentivize activities that help keep forests standing. It is designed to use funds for non-carbon benefits as well as for carbon credits.

How Does the RFF Work?

Two offerings under the RFF:

Forest Carbon Offset (FCO): A market-based approach where participating corporations will receive forest emissions reductions units (carbon credits). Open to both domestic and international investors.

Forest Conservation Certificate (FCC): A non market-based mechanism focusing on non-carbon benefits. Acts as an incentive for environmental and social contributions. Open only to domestic investors.

Registration and Benefit Distribution

A registry will be maintained to ensure no double counting or double financing occurs.

Based on principles of Equity, Transparency, and Performance relatedness.

Proposed Eligible Activities

Includes conservation of terrestrial areas and inland waters, restoration of ecological corridors, sustainable management of production forests, and restoration of vulnerable ecosystems.

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