The REDD Programme is predicated on the assumption that developed countries will provide sufficient funds to offset opportunity costs associated with avoiding deforestation. The role of non-market values in indigenous land management may challenge the efficacy of compensation schemes targeted at meeting opportunity costs as calculated in traditional opportunity cost analysis (OCA). Furthermore it is unclear how these economic incentives might affect social and cultural values linked to land-use norms, livelihoods, and local governance.

Changing and competing land use, where we make use of a growing share of resources, potentially undermines the capacity of forests to provide multiple functions such as timber, biodiversity, recreation and pasture lands. The governance challenge is thus to manage trade-offs between human needs and, at the same time, maintain the capacities of forests to provide us with these needs. Sweden provides a clear example of this kind of challenge. Traditionally, timber has been the most apparent contribution of the forest to Swedish national interests.

One of the main issues regarding the implementation of REDD+ in Latin America has been the growing concern that such projects may infringe upon the rights and negatively affect the livelihoods of forest-dependent communities. Various indigenous and civil society organizations are ardently opposed to the initiative. Such is the case in Ecuador, where indigenous opposition to REDD+ represents a considerable obstacle in the creation of a national strategy since more than 60% of the country’s remaining forest cover is on indigenous land or under indigenous occupation.