Reducing emissions from deforestation and forest degradation (REDD+) was introduced by the United Nations Framework Convention on Climate Change (UNFCCC) as a mechanism to reverse the loss of forests and carbon stocks in developing countries. REDD+ operates on the basis of performance-based payments. This article focuses on REDD+ as a market-based mechanism in the voluntary carbon market (VCM). It assesses the viability of using REDD+ on indigenous lands in the Brazilian Amazon by examining three key aspects of REDD+—the legal, technical and market requirements—in light of recent policy developments in Brazil and under the UNFCCC. REDD+ as a market-based mechanism in the VCM currently faces significant barriers as a useful tool for forest protection in the Amazon, due to the lack of an international carbon market under the UNFCCC, the highly complex technical requirements, and the low market demand for REDD+ credits in the VCM. Moreover, we suggest that, although legally possible under Brazilian law, REDD+ projects in the VCM may not be a suitable market-based option for indigenous communities in the Amazon due to the current national and international climate policy context.