Make trees great again: The "REDD+" plan to save the world

If we were to script the story of humanity vs climate change, the plot would look something like this, we, the flawed de Lulu protagonist, keep digging our own grave (literally—thanks, fossil fuels), while an unexpected hero—forests—shows up to save the day. But wait, instead of cheering on these silent protectors, we keep axing them down like they're the expendable sidekick in every Marvel movie (while saying I love you 3000). Enter REDD+ (Reducing Emissions from Deforestation and Forest Degradation)—the surprise rookie who might win the game.

Trees usually get less hype than they deserve. Sure, we've seen all the motivational Instagram posts about hugging trees and saving the planet, but the stats are much scarier than a hashtag campaign says.

Between 1990 and 2020, we wiped out 420 million hectares of forest, losing a chunk of Earth's lungs bigger than India (FAO, 2020). That's like watching your favourite Netflix series get cancelled after just one season (yes, Firefly, I weep for you)—except this cancellation also dumps 11% of global greenhouse gas emissions into the atmosphere.

Unlike superheroes who arrive with dramatic fanfare, REDD+ crept into existence with the understated grace of a niche indie film(like Pulp Fiction). No, I am not the only one standing simply for REDD+; I have UN bodies!

First conceived under the United Nations Framework Convention on Climate Change (UNFCCC), REDD+ was initially met with skepticism. It's like when The Mandalorian first dropped, and people were curious if it would live up to the hype. But soon enough, the world saw its potential.

Here's how it works: REDD+ incentivizes countries to keep their forests intact.

The idea is simple: stop deforestation and get paid. Countries can earn carbon credits by preventing forest destruction, which can be sold on global carbon markets.

Think of it like selling digital Pokémon cards, except instead of pixelated creatures; you're dealing with rainforests' carbon-storing potential. Brazil, for example, saved itself from environmental villain status by cutting Amazon deforestation by 80% between 2004 and 2012, preventing 3.2 billion tons of CO2 from being released (Nepstad et al., 2014).

The carbon credit system works similarly to your favourite in-app purchases. Countries generate carbon credits by stopping deforestation, which can be sold to companies or nations trying to offset their emissions.

Imagine running a massive polluting factory but throwing some cash at a REDD+ project to cover your eco-footprint—it's the corporate world's equivalent of donating to charity after a public scandal.

As of 2023, the carbon market tied to REDD+ has grown to an estimated $5 billion (World Bank, 2023). Countries like Indonesia and Brazil are racking those eco-coins by keeping their forests alive and thriving. So, if forests are Mother Nature's savings account, REDD+ is the world's way of saying, "Let's not withdraw everything at once, okay?"

Now, no system is without its flaws, and this is where REDD+ gets tricky—like trying to share your Netflix password without your girlfriend messing up your algorithm (yes, yours, not mine, because I don't have one, okay, let's not spiral into that abyss).

MRV (Measurement, Reporting, and Verification) is the system that keeps REDD+ honest, ensuring that all those carbon savings are actual and not the environmental equivalent of inflated YouTube views.

A maximum of 60% of REDD+ projects have fully functioning MRV systems, according to a 2022 World Resources Institute (WRI) report. That's the bureaucratic equivalent of half your classmates not showing up for the group project and still expecting an A.

Measuring carbon storage in vast forest areas is more complicated than it sounds—it's not just about planting 5000 green paper flags and saying, "Yep, still green."

Luckily, tech is here to save the day. Platforms like Global Forest Watch use satellite imagery to monitor forest cover in real-time (Global Forest Watch, 2023).

So when a tree falls in the Amazon, these satellites are the snitches, ensuring nobody gets away with illegal logging. Add to that artificial intelligence, which analyzes satellite images faster than any human, and we've got ourselves a solid eco-surveillance state.

Remember when everyone was obsessed with blockchain and Bitcoin? While the rest of us moved on to ChatGPT and AI, blockchain stuck around to prove it could be helpful for more than meme stocks.

In REDD+, blockchain tech ensures that every carbon credit is transparent and verifiable—because apparently, people are even more suspicious of carbon transactions than of Elon Musk's following tweet.

Using blockchain for REDD+ means no funny business regarding carbon credits. Think of it as the ultimate receipt that can't be lost or forged. Projects in countries like Kenya have started integrating blockchain to track their REDD+ transactions, ensuring everyone gets their fair share of carbon-saving glory (IFC, 2022). It's the eco-financial version of karma: you save the trees, and the system rewards you without shady dealings.

(To be continued)

(The writer is an engineer-turned-finance-expert-ESG-enthusiast, trying to drink gulps from the immensely stimulating ocean of economics/ESG and move to greener pastures of the development sector to shift from his regular tedious job in the capital market. Tell him how he can do that at [email protected])