In the last decade, countries have committed major resources to reducing carbon emissions from deforestation and forest degradation in developing countries (REDD). A debate continues on how REDD financing should include related activities, such as the enhancement of carbon stocks through afforestation, reforestation and rehabilitation of degraded lands.

The focus of this paper is that the contextual issues influencing the adequacy and appropriateness of opportunity cost as a proxy for payments required to get successful REDD+ can be major ones in most tropical developing countries; and resolving them can be expensive and time consuming.

This paper returns to the particular issue of regulatory frameworks: the rules and systems put in place to encourage best practice and compliance with the official rules.