Forests and forest-dependent communities are under increasing pressure due to infrastructure projects and the growing demand for agricultural commodities. Although there is increasing recognition of the importance of forests in mitigating climate change, paradoxically this makes them vulnerable to a new threat: that they will be appropriated to capture potential payments to compensate for carbon emissions (REDD+ initiatives). These trends bring new challenges for donors working in the forest and agriculture sectors. But are donor resources – in terms of money and expertise – sufficient to address these risks? And are donor programmes sufficiently coherent to ensure that risks are minimised? This report examines the policies of the major European donors to programmes supporting forests and forest-dependent peoples, and makes recommendations for future actions.