Fiscal incentives for agricultural commodity production: Options to forge compatibility with REDD+: UN-REDD Policy Brief 7

Fiscal policies and incentives are often key underlying drivers of forest change that influence land use behavior in sectors that encroach on forests, although the understanding of their impacts on forests is often lacking. Fiscal policies have not been systematically examined as part of REDD+ readiness. Public policy and related fiscal policy and incentives must seek coherence across sectors, in order to overcome inherent conflicts between sectors and competing land uses, and to send the right signals. REDD+ provides an entry to rethink fiscal incentives for agricultural commodities as part of National REDD+ Strategies and Action Plans.