Deforestation is responsible for roughly one fifth of global carbon emissions, most of it in the tropical forests of the developing world. At the Copenhagen climate talks, negotiators discussed a potential new mechanism to compensate nations for keeping their forests intact. The article by Duncan Brack and Katharina Umpfenbach looks at these REDD proposals (Reducing Emissions from Deforestation and Degradation), arguing that carbon finance alone might not be enough to stop deforestation – unless part of it is spent upfront on improving forest governance.

In a Discussion Paper for the German Development Institute (DIE), Sascha Müller-Kraenner analyses the energy-related foreign policies of China and India, both "anchor countries" with fast-growing economies. Their quest for energy security as well as climate policy have become defining elements of both countries' foreign policies, a fact that the EU and the US must respond to.