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transparency and the extra difficulty it might have in attracting funding compared tothe above options (Vatn and Vedeld 2011).As such, the individual “REDD readiness” countries might decide to build theirREDD+ financial system in the form of either one of these option, with the nationalcontext being a great determining factor. However, a financial system for REDD isnot the only requirement for its operalisation.2.3.3. Sub-institutions and policy approachesBesides the above mentioned options for an overall national REDD structure indealing with the financial flow of REDD, there will ultimately also be needs for otherinstitutions or sub-institutions to manage the flow of information and rewardsdownward to the local level and upward to the national and international level. Thedevelopment of these institutions can as well be either within existing institutions (butwith specific REDD responsibilities), or by creating new and independent ones.Besides a system and institution dealing with MRV of carbon, there will also be aneed for other institutions or sub-institutions which deals with managing technical,financial, administrative and supervisory aspects of REDD. When and how urgent theneed for these institutions are depends on how far along in the REDD process thegiven country is (Vatn and Angelsen 2009).It is also not just the institutional structure which makes up and is needed to createand implement a well-functioning REDD regime. For many countries it will benecessary with policy reforms, both within the forest sector, concerning land tenure,and within other sectors, and there will most likely be a need for additional policymaking and selection of various policy instruments. The selection of theseinstruments, i.e. the choice of policy package which will be used, might be equallyimportant as it makes up the various ways in which power, resources, cost/benefitsand relative wealth among actors and stakeholders is distributed, thus having asignificant impact on various actors status, roles and interests.The four main policy instruments which in one way or another make up the overallpolicy package are: 1) administrative instruments, which entails building institutionsand assigning rights and duties to actors, 2) legal instruments, meaning creating laws,45