REDD (Reduced Emissions from Deforestation and forest Degradation) is a new instrument for the financing of forest protection. Reasons for deforestation are the money that is made from cutting down trees and using the land for the cultivation of crops such as soy an oil palms. In contrast, not much money is earned by leaving the forests intact. Since deforestation is one of the main causes of climate change, investing in forest protection is highly important. Through these investments, it is possible to earn money by leaving the forests intact, which discourages deforestation. This is the essence of REDD. Eneco and WWF wish to stimulate the new instrument. To do this properly, Eneco and WWF have entered into agreements with respect to the use of REDD certificates.
Gold Standard projects have strict criteria: the investments must relate to sustainable energy projects in developing countries. Projects that could not be realised without the sale of CO2 certificates. Another condition is that the local population must benefit from the projects.