The purpose of this study is to contribute to the discussion regarding the integration of biodiversity conservation aspects into the cross-cutting issue of reducing emissions from deforestation and forest degradation in developing countries (REDD). At the forefront of discussions taking place at COP9 of the CBD, it became obvious that a new large-scale REDD financing mechanism, such as that currently being negotiated under the UNFCCC, could provide tremendous chances for synergies between different environmental objectives and development goals. At the same time, the focus on one ecosystem service, namely carbon sequestration, bears considerable risks for perverse incentives regarding these objectives.