This report takes a first step in identifying and estimating subsidies currently driving investment towards forest loss, in order to demonstrate the potential to shift these subsidies and as a result, wider private investment in REDD+. The focus of this desk study is on subsidies to four commodities in two key countries that are widely acknowledged as driving forest loss: soy and beef in Brazil, timber and palm oil in Indonesia. It also highlights opportunities for reforms, both in the context of lessons from the countries reviewed and the emerging field of ‘climate-smart fiscal policy.
