The four strategic objectives of the FCPF:
- To assist countries in their REDD+ efforts by providing them with financial and technical assistance in building their capacity to benefit from possible future systems of positive incentives for REDD+.
- To pilot a performance-based payment system for REDD+ activities, with a view to ensuring equitable benefit sharing and promoting future large-scale positive incentives for REDD+.
- Within the approach to REDD+, to test ways to sustain or enhance livelihoods of local communities and to conserve biodiversity.
- To disseminate broadly the knowledge gained in the development of the Facility and the implementation of Readiness Preparation Proposals (RPPs) and Emission Reductions Programs (ERPs).
The FCPF's funding mechanisms:
The FCPF has two separate but complementary funding mechanisms — the Readiness Fund and the Carbon Fund — to achieve its strategic objectives. Both funds are underpinned by a multi-donor fund of governments and non-governmental entities, including private companies that make a minimum financial contribution of $5 million.
Contributors to the Readiness Fund are known as Donor Participants.
Contributors to the Carbon Fund are known as Carbon Fund Participants.
Developing countries participating in the FCPF (both funds) are known as REDD Country Participants.