This report provides an overview of REDD financing options, explains the agreements reached at Cancun and Durban, and outlines the issues that remain to be negotiated if REDD is to succeed. It explains in detail the problems associated with REDD, such as baselines, permanence and leakage, and looks at the various financing proposals. The report questions the narrow definition of performance and suggests that most ‘performances’ will need previous ‘investments’ in various sectoral activities to strengthen governance and institutional capacity. The main recommendations arising from this report are, thus, to put ‘sustained investments’ at the centre of REDD+ architecture and to redefine performance. The report argues that future progress in REDD+ will require supporting nation states to develop and carry out legal and policy reforms that lead to long-term, sustainable land use, and improvements in governance leading to improved management, use and conservation of forest land.