Editing Reforestation (section)

== Financial incentives ==
{{see also|REDD and REDD+}}
{{update section|date=October 2019}}

Policies that promote reforestation for incentives in return have shown promising results of being an effective and motivative concept to re-plant globally on a mass scale.<ref>{{Cite journal |last1=Ruseva |first1=Tatyana B. |last2=Evans |first2=Tom P. |last3=Fischer |first3=Burnell C. |date=2015-05-15 |title=Can incentives make a difference? Assessing the effects of policy tools for encouraging tree-planting on private lands |url=https://www.sciencedirect.com/science/article/pii/S0301479715001632 |journal=Journal of Environmental Management |language=en |volume=155 |pages=162–170 |doi=10.1016/j.jenvman.2015.03.026 |issn=0301-4797 |pmid=25819571|bibcode=2015JEnvM.155..162R }}</ref>

Some incentives for reforestation can be as simple as a financial compensation. A compensated reduction of deforestation approach has been proposed which would reward developing countries that disrupt any further act of deforestation: Countries that participate and take the option to reduce their emissions from deforestation during a committed period of time would receive financial compensation for the carbon dioxide emissions that they avoided.<ref name="Streck">{{Cite journal |last=Streck |first=C. |author2=S.M. Scholz |year=2006 |title=The role of forests in global climate change: whence we come and where we go |journal=International Affairs |volume=82 |issue=5 |pages=861–879 |doi=10.1111/j.1468-2346.2006.00575.x}}</ref>{{rp|875}} To raise the payments, the host country would issue government bonds or negotiate some kind of loan with a financial institution that would want to take part in the compensation promised to the other country. The funds received by the country could be invested to help find alternatives to the extensive cutdown of forests. This whole process of cutting emissions would be voluntary, but once the country has agreed to lower their emissions they would be obligated to reduce their emissions. However, if a country was not able to meet their obligation, their target would get added to their next commitment period. The authors of these proposals see this as a solely government-to-government agreement; private entities would not participate in the compensation trades.<ref name="Streck" />{{rp|876}}

Another emerging revenue source to fund reforestation projects deals with the sale of carbon sequestration credits, which can be sold to companies and individuals looking to compensate their carbon footprint. This approach allows for private landowners and farmers to gain a revenue from the reforestation of their lands, while simultaneously benefiting from improved soil health and increased productivity.<ref>{{Cite journal |last1=Shabman |first1=Leonard |last2=Zepp |first2=Laura |last3=Wainger |first3=Lisa |last4=King |first4=Dennis |date=2002 |title=Incentives for reforestation of agricultural land: What will a market for carbon sequestration credits contribute? |url=https://www.jstor.org/stable/44503226 |journal=American Journal of Alternative Agriculture |volume=17 |issue=3 |pages=116–124 |doi=10.1079/AJAA200213 |issn=0889-1893 |jstor=44503226}}</ref>

Alongside past financial incentive strategies, reforestation tax benefits have been another way the government has encouraged companies to promote reforestation tactics through the promises of a tax break.<ref>{{Cite web |last=Shutterstock |first=Credit |date=2020-02-04 |title=What Are Reforestation Tax Benefits? |url=https://mylandplan.org/content/what-are-reforestation-tax-benefits |access-date=2022-05-14 |website=My Land Plan |language=en}}</ref>

As many landholders seek to earn carbon credits through sequestration, their participation also encourages biodiversity and provides [[ecosystem service]]s for crops and livestock.<ref>{{cite journal |last1=Andres |first1=Samantha |date=20 September 2022 |title=Defining Biodiverse Reforestation: Why It Matters for Climate Change Mitigation and Biodiversity |journal=Plants, People, Planet |volume=5 |pages=27–38 |doi=10.1002/ppp3.10329 |s2cid=252418294 |doi-access=free |hdl-access=free |hdl=20.500.11820/fa87acb7-8982-43d9-bf03-ab700dd168d8}}</ref>