The Forest Carbon Partnership Facility (FCPF) is a global partnership of governments, businesses, civil society and indigenous peoples groups focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests and the enhancement of forest carbon stocks in developing countries (i.e. REDD+ activities). Thirty-six forest developing countries have so far been selected to join the FCPF. This annual report for 2012 highlights progress during the facility's fourth year of implementation with regard to REDD+ readiness, funding for REDD+ and partnership building. The report also includes the financial report of the facility and the outlook for 2013. It concludes that the next few years will show whether overall momentum can be sustained to address the more challenging aspects of REDD+ and eventually determine whether REDD+ can accomplish its objectives on the ground.