Forests play an increasing role in climate change policy. As carbon sinks, they sequester and store massive amounts of CO2. Conversely, deforestation and forest degradation account for up to 20 % of global CO2 emissions. Through REDD-Plus, a global initiative is underway to reduce emissions from deforestation and degradation. This paper provides an overview of forestry offsets within the Kyoto Protocol. It likewise explores and analyzes three central REDD-plus design considerations under review at the UNFCCC 17th Convention of the Parties. These design considerations include: 1) Setting forest carbon reference levels, (2) Administration of REDD-Plus, whether at a national, jurisdictional, or project-based scale, and (3) Optimal funding of REDD-Plus whether through a dedicated fund or market-based mechanism. The paper concludes that these design elements can be structured to significantly reduce C02 emissions from deforestation and degradation. However, the failure of Annex I countries to reduce industrial CO2 emissions may lead to less ambitious targets and therefore undermine the effect of REDD-Plus.