An analysis of biogas, biomass, forest credits, and renewable energy programs in Brazil and Argentina supported by the Green Climate Fund

The GCF funding allocations to Latin America and the Caribbean, especially Brazil and Argentina, reveal several salient features. The countries' Paris Agreement commitments through the Intended Nationally Determined Contributions (INDC) were made conditional on the international aids and funding, presumably from the GCF. The INDC commitments were also contingent on the forest carbon credits through the REDD+ programs earned in the past. The question of whether the GCF funding is directed to the right public sector organizations remain doubtful as it goes through a complicated web of organizations The GCF funding may induce land use distortions in local areas. For example, the funding for biogas and/or biomass productions may increase forest conversions to croplands or livestock raising. The implied price of carbon in each of the Latin American projects can be compared with the empirical research on the social cost of carbon.