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with the other FCPF countries (United Republic of Tanzania 2010). Apart from theMRV system, another important institutional development on REDD in Tanzania isestablishing and making operational an independent National REDD Trust Fund inorder to provide a clear and transparent system which can receive funds and paymentsfor carbon credits (Forconsult 2010).In order to bring sustainable and economic development through REDD, reviews ofcurrent legislations, policies and laws which can affect and be affected by REDD isalso being focused on. For instance empirical evidence has shown that such projectscan have implications on property rights and tenure systems, which further can placepressure on already diminishing supplies of land, both for productive use and humansettlement (Bäckstrand and Lövbrand 2006; Quan and Dyer 2008; Cotula 2009; Sulleand Nelson 2009). In this regard, if REDD is to succeed in Tanzania, it is importantthat the funds for carbon conservation are transferred to the right people, whichinclude the users and owners of land. It must therefore be clarified who the owner of apiece of land is, an ownership that should be enforceable in the legal system (Chiesa,Dere et al. 2009).In December 2010 the first draft for the National REDD strategy came out. In its finalversion (2012) this document is intended to act as a guide for the preparation andimplementation of REDD in order for them to benefit from a future internationallyapprovedsystem which deals with carbon trading based on demonstrated reductionsof carbon emissions from deforestation and forest degradation. So far though, such aninternationally approved system is not yet agreed upon and many questions stillremain. For instance how will REDD be linked to existing national developmentstrategies, how will REDD be funded, and how will the carbon which is stored andsequestrated from REDD be monitored (United Republic of Tanzania 2010)?Agreements on these questions will in turn affect decisions made on the national leveland the final REDD strategy for Tanzania. In this respect options are still open:whether it will be “effort-based” or “output-based” payments, whether to adopt a“fund-based” or “market-based” approach, and whether to adopt a solely nationalapproach or a “nested” approach (TFWG 2010). The lessons learned and knowledgegenerated from the pilot projects and other research will also play a part in decidingon which design options to choose.15