This morning (April 6), the Executive Secretary Yvo de Boer was asked a question on REDD at a news conference for developing countries. You can find the video in the title link above; the question is posed at minute 37. The answer on REDD starts at minute 39. A rough transcript of his remarks is below. He seems to see the two key challenges as measurements (and permanence) and the impacts on markets. Yvo de Boer mentions the possibility of a cap for REDD credits…

The reporter was Alex (last name not heard) from Bloomberg news (we think).

Question: “And on REDD, is REDD likely to be included in carbon markets or is there a view that there are better mechanisms to deal with deforestation?”

Answer (paraphrased)
On REDD there is an enormous push to bring REDD under a Copenhagen agreement.
But there are at least two major issues of concern.
The first is related to the science. How can you accurately measure actually how much you are avoiding and how can you safeguard avoided emissions.
And secondly what will happen to the market, if you bring REDD under a market based approach.
Of course there is a Kyoto experience that we can draw on, in the sense that you can cap for example REDD at a certain level under a market, in order to safeguard a price.
I would expect that there will continue to be action taken on that issue both inside the convention and outside. Lots of groups working (UN REDD, World Bank) are trying to come to grips with this issue.
In any case, in the context of not for crediting arrangements, and I would expect that to continue.