This working paper looks at the political economy of carbon forestry and REDD+ in Mozambique in view of goals for climate compatible development (CCD) - simultaneously addressing emission reduction, adaptation and development. The paper asks how debates and decisions on REDD+ in Mozambique may shape outcomes for different groups. Using a political economy framework, the paper considers actor perspectives, interests and interrelations in the broader institutional and political context in order to analyse and the prospects for carbon forestry and REDD+ to contribute climate compatible development in Mozambique. The paper concludes that a political economy analysis of REDD+ and carbon forestry options are an important complement to discussions around technical feasibility and economic affordability, and can in turn help expand the understanding of policy constraints and opportunities for REDD+/carbon forestry to support climate compatible development goals.