The objective of this report is to explore the topic of carbon sinks in forest ecosystems, focusing on the issue of REDD. The report covers different angles: an overview of existing financial and methodological initiatives that currently invest in preparation and capacity building of potential REDD host countries, but also in REDD pilot projects; the preparedness of potential host countries (Bolivia, Cameroon, Costa Rica and Sri Lanka) to establish baselines and implement a REDD system that contributes to sustainable development, and the funding structure and channels of a major investor country (Norway).