A new UN-REDD report explores the potential value of REDD+ in three regions of Panama (Bocas del Toro, the Canal region and the Darién). Prepared by UNEP-WCMC under Panama’s UN-REDD National Programme, this economic analysis can help with deciding which land-use options can be most beneficial.

The potential economic values of the multiple benefits from REDD+ in Panama: a synthesis of existing valuation studies is the first overview of the economic importance of REDD+ in Panama. By combining information from previous studies, this report explores the potential value of the main benefits REDD+ can achieve in the three regions of Panama. The benefits include: non-timber forest products, genetic resources; recreational and hydrological benefits; erosion prevention; pollination services and climate regulation. The potential average amount of these benefits combined varies across the three focal regions from US$626 to US$3,122 per year per ha of forest.

Under the United Nations Framework Convention on Climate Change (UNFCCC), developing countries are encouraged to work on REDD+ activities (Reducing Emissions from Deforestation and forest Degradation, the conservation and enhancement of carbon stocks and the sustainable management of forests). REDD+ can generate multiple environmental and social benefits, by protecting and enhancing benefits delivered by forests. These benefits are of great value both for local livelihoods and the national economy but can be difficult to estimate as their financial value is often not visible or tradable on markets.

It is anticipated that the REDD+ activities will generate income though results-based payments. However, the economic importance goes well beyond carbon as decision makers need to consider the different combinations of REDD+ and other land-use options. An economic valuation can identify which option can be the most beneficial according to country development plans and possible scenarios.

The report also describes the methodology used and provides guidance on how a complete monetary valuation exercise could be undertaken, with this study providing only an indicative valuation. Such an exercise could be undertaken in any country wishing to incorporate economic considerations into its REDD+ planning process. It highlights the importance of taking spatial variation into account, and the related need for high quality ecological and socioeconomic data, which may need to be collected before an accurate economic assessment can be produced.