The minute
- REDD+ generates credits by avoiding deforestation in an area that would otherwise be cleared, measured against a hypothetical baseline scenario
- It’s the most common credit type in Brazil, but also the most questioned on additionality and quality, which directly affects price
- Reversal risk (fire, encroachment, local governance change) is real and should be reflected in a separate credit buffer
Why it matters: The same thing that makes REDD+ accessible (the baseline is an estimate, not a direct measurement) is what generates most of the doubt about a credit’s real quality.
How a REDD+ project works
The developer defines a forest area under threat, calculates a baseline scenario (what would happen without the project) and generates credits proportional to the difference between that scenario and the deforestation actually avoided.
Why it’s questioned
The baseline is an estimate, not an observable fact, which leaves room to inflate it and generate more credit than the real protection would justify. Independent studies have already flagged overestimation in REDD+ projects around the world.
How to evaluate a REDD+ project’s quality
Check the methodology used for the baseline scenario, whether there’s independent satellite monitoring, and whether there’s a credit buffer reserved to cover reversal risk.
The opportunity for Brazilian landowners
Surplus legal reserve area or standing forest can generate revenue through REDD+, but it requires scale (usually starting around hundreds of hectares) or participation in a smallholder pool.
Frequently asked questions
Is REDD+ the same as a forest carbon credit?
REDD+ is a specific type, focused on avoiding deforestation and degradation; other forest credit types exist, like reforestation.
Is every REDD+ project low quality?
No, but the category as a whole has more questioned cases than engineered removal, so individual project diligence matters more.
Can a small landowner participate in REDD+?
Usually only at scale through a producer pool, since small individual projects don’t cover certification and monitoring costs.
Read next: what REDD+ is.
Read next: voluntary vs compliance carbon markets.