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This briefing paper was elaborated by the Task Force on REDD and Communities of the IUCN Commission on Environmental, Economic and Social Policy, in collaboration with the Global Forest Coalition, a worldwide coalition of NGOs and Indigenous Peoples' Organisations. The briefing note is a contribution to the debate about policies and incentives to reduce emissions from deforestation and forest degradation (REDD). It focuses on the potential of governance of forests by indigenous peoples and local communities, and discusses implications of envisaged REDD regimes for local rights. Feedback on the briefing note is welcome and can be sent to Simone Lovera, co-coordinator of the Task Force, < simonelovera@yahoo.com >