Supplementing REDD+ with finance for multiple forest services
Upcoming SlideShare
Loading in...5
×
 

Supplementing REDD+ with finance for multiple forest services

on

  • 1,705 views

Presentation by Jonah Busch, Conservation International

Presentation by Jonah Busch, Conservation International
Financing for forest and climate change, Forest Day 3
Sunday, 13 December 2009
Copenhagen, Denmark

Statistics

Views

Total Views
1,705
Views on SlideShare
1,688
Embed Views
17

Actions

Likes
1
Downloads
30
Comments
0

5 Embeds 17

http://www.cifor.cgiar.org 7
http://www.slideshare.net 4
http://www.cifor.org 3
http://webstaging.cifor.cgiar.org 2
http://typo3staging.cifor.cgiar.org 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Supplementing REDD+ with finance for multiple forest services Supplementing REDD+ with finance for multiple forest services Presentation Transcript

  • Supplementing REDD+ with finance for multiple forest services Jonah Busch, Ph.D. (Conservation International) Finance Learning Event -- Global Environment Facility CIFOR Forest Day 3 UNFCCC COP 15 Copenhagen, Denmark, December 13, 2009 Based on: •Busch, J., Strassburg, B., Cattaneo, A., Lubowski, R., Bruner, A., Rice, R., Creed, A., Ashton, R., Boltz, F. (2009). Comparing climate and cost impacts of reference levels for reducing emissions from deforestation. Environmental Research Letters, 4:044006. •Busch, J., Godoy, F., Turner, W., Rao, N., Harvey, C. (in review). Co-benefits of REDD: Poverty alleviation, biodiversity conservation and clean water provision. •Busch, J., Bruner, A. (2009). An investment strategy for the Tropical Forest Account in Global Environment Facility – 5.
  • Multiple forest benefits (canopy photo) GLOBAL CLIMATE REGULATION
  • Multiple forest benefits (canopy photo) $ (REDD+) GLOBAL CLIMATE REGULATION
  • slope tourism Multiple forest benefits stabilization fuel (canopy photo) water clean biodiversity soil formation $ (REDD+) GLOBAL non-timber CLIMATE forest timber products REGULATION food pollination livelihoods local climate storm regulation medicine protection cultural values
  • slope tourism Multiple forest benefits stabilization fuel (canopy photo) water clean biodiversity soil formation $ (REDD+) GLOBAL non-timber CLIMATE forest timber products REGULATION food pollination livelihoods local climate storm regulation medicine protection cultural values
  • slope tourism Multiple forest benefits stabilization fuel (canopy photo) water clean biodiversity soil formation $ (REDD+) GLOBAL non-timber CLIMATE forest timber products REGULATION food pollination livelihoods local To what extent would REDD+ enhance biodiversity conservation? climate storm regulation medicine protection cultural values
  • slope tourism Multiple forest benefits stabilization fuel (canopy photo) water clean biodiversity soil formation $ (biodiversity) $ (REDD+) GLOBAL non-timber CLIMATE forest timber products REGULATION food pollination livelihoods local To what extent would REDD+ enhance biodiversity conservation? climate How to pay for additional forest biodiversity in the context of REDD+? storm regulation medicine protection cultural values
  • slope tourism Multiple forest benefits stabilization fuel (canopy photo) water clean biodiversity soil formation $ (biodiversity) $ (REDD+) GLOBAL non-timber CLIMATE forest timber products REGULATION food pollination livelihoods local To what extent would REDD+ enhance biodiversity conservation? climate How to pay for additional forest biodiversity in the context of REDD+? storm To what extent would paying for biodiversity enhance climate mitigation? regulation medicine protection cultural values
  • Supplemental finance options for biodiversity and other forest services 1. Buyers interested in biodiversity voluntarily purchase additional REDD+ 2. Existing REDD+ buyers pay a premium for carbon from biodiverse forests (e.g. CCBA/CARE Social and Environmental Standards for REDD+) 3. Bundling of payments for carbon by REDD+ buyers, payments for biodiversity from biodiversity buyers (e.g. GEF) i. fund pays for reductions in countries’ biodiverse forests; countries sell resulting carbon abatement to the REDD+ mechanism ii. fund buys carbon abatement from countries’ biodiverse forests above market price; resells to REDD+ mechanism at market price iii. REDD+ mechanism pays for countries’ carbon abatement; fund pays for countries’ contribution to biodiversity conservation
  • Modeling REDD with OSIRIS (Busch et al, Env Res Letters, 2009) • 84-country partial equilibrium model • National incentives based on reference levels • Leakage • Country-by-country outputs: -deforestation (Ha/yr) -emissions (ton CO2e/yr) -revenue ($/yr) • Caveat: Designed to compare climate and cost impacts across REDD policy designs, rather than to predict absolute magnitude of impacts • New output: Estimated rate of extinction of endemic forest-dwelling mammal and amphibian species, as predicted by species-area relationship www.conservation.org/osiris
  • REDD+ reduces emissions from deforestation and extinction rate of forest species 100% REDD+ MECHANISM 90% 1. ADDITIONAL REDD+ PURCHASES Rate with REDD as % of 80% 2. PREMIUM FOR BIODIVERSITY = 5% EMISSIONS rate without REDD 70% 3. BUNDLED PAYMENTS FOR BIODIVERSITY 60% 50% 40% 30% EXTINCTIONS 20% 10% 0% $- $5,000,000,000 $10,000,000,000 $15,000,000,000 Total Annual Finance
  • Purchasing additional REDD+ slightly reduces extinction rate of forest species 100% REDD+ MECHANISM 90% 1. ADDITIONAL REDD+ PURCHASES Rate with REDD as % of 80% 2. PREMIUM FOR BIODIVERSITY = 5% EMISSIONS rate without REDD 70% 3. BUNDLED PAYMENTS FOR BIODIVERSITY 60% 50% 40% 30% EXTINCTIONS 20% 10% 0% $- $5,000,000,000 $10,000,000,000 $15,000,000,000 Total Annual Finance
  • Premium for biodiversity substantially reduces extinction rate of forest species 100% REDD+ MECHANISM 90% 1. ADDITIONAL REDD+ PURCHASES Rate with REDD as % of 80% 2. PREMIUM FOR BIODIVERSITY = 5% EMISSIONS rate without REDD 70% 3. BUNDLED PAYMENTS FOR BIODIVERSITY 60% 50% 40% 30% EXTINCTIONS 20% 10% 0% $- $5,000,000,000 $10,000,000,000 $15,000,000,000 Total Annual Finance
  • Bundled payments for biodiversity substantially reduce extinction rate of forest species 100% REDD+ MECHANISM 90% 1. ADDITIONAL REDD+ PURCHASES Rate with REDD as % of 80% 2. PREMIUM FOR BIODIVERSITY = 5% EMISSIONS rate without REDD 70% 3. BUNDLED PAYMENTS FOR BIODIVERSITY 60% 50% 40% 30% EXTINCTIONS 20% 10% 0% $- $5,000,000,000 $10,000,000,000 $15,000,000,000 Total Annual Finance
  • Biodiversity payments attract additional carbon payments Relative to opportunity cost ($/ha) A REDD payments sufficient to Carbon value (Gt CO2e/ha) conserve forest C combined REDD B and biodiversity biodiversity payments sufficient payments to conserve forest sufficient to conserve forest Biodiversity value (endemic species/ha) Relative to opportunity cost ($/ha)
  • Biodiversity payments catalyze additional carbon payments 100% REDD+ MECHANISM 90% 1. ADDITIONAL REDD+ PURCHASES Rate with REDD as % of 80% 2. PREMIUM FOR BIODIVERSITY = 5% EMISSIONS rate without REDD 70% 3. BUNDLED PAYMENTS FOR BIODIVERSITY 60% 50% 40% 30% EXTINCTIONS 20% 10% Finance for biodiversity: $0.2B $0.5B $1.0B $1.4B 0% $- $5,000,000,000 $10,000,000,000 $15,000,000,000 Total Annual Finance
  • Example of bundled payment: Forest Incentive Mechanism in GEF-5 •Formerly Tropical Forest Account (TFA) in GEF-4 •Attends to three international conventions (FCCC, CBD, CCD) •Objective: achieve multiple global environmental benefits from the management of all types of forests and strengthen sustainable livelihoods for people dependent on forest resources. •~$180-400 million in GEF-5 •Expected to leverage further $700-1000 million from GEF STAR balances, plus additional leveraging •Design under development •For more information: Gustavo da Fonseca or Dirk Gaul
  • Concluding Messages REDD+ expected to reduce emissions from deforestation and reduce extinction rate of forest species Either premiums (e.g. CCBA/CARE SES) or bundled payments (e.g. GEF) could substantially reduce extinction rates further Either premiums or bundling for multiple forest services would: - lower price paid by REDD+ buyers - increase price paid to REDD+ sellers - attract additional carbon payments - lead to additional reductions in emissions from deforestation
  • Thank you! Global Environment Facility Center for International Forestry Research Environmental Defense Fund Woods Hole Research Center University of East Anglia Terrestrial Carbon Group Private gift to Conservation International Gordon and Betty Moore Foundation Norwegian Agency for Development Cooperation jbusch@conservation.org http://www.conservation.org/osiris Based on: Busch, J., Strassburg, B., Cattaneo, A., Lubowski, R., Bruner, A., Rice, R., Creed, A., Ashton, R., Boltz, F. (2009). Comparing climate and cost impacts of reference levels for reducing emissions from deforestation. Environmental Research Letters, 4:044006. Busch, J., Godoy, F., Turner, W., Rao, N., Harvey, C. (in review). Co-benefits of REDD: Poverty alleviation, biodiversity conservation and clean water provision. Busch, J., Bruner, A. (2009). An investment strategy for the Tropical Forest Account in Global Environment Facility – 5.
  • Finer scale of biodiversity metric reduces extinctions 100% REDD+ MECHANISM 90% Extinctions with REDD as % of ADDITIONAL REDD+ PURCHASES extinctions without REDD 80% BUNDLED PAYMENTS FOR ENDEMIC SPECIES/HA 70% (Continental) BUNDLED PAYMENTS FOR ENDEMIC SPECIES/HA 60% (Regional) BUNDLED PAYMENTS FOR ENDEMIC SPECIES/HA 50% (National) 40% 30% 20% 10% 0% $- $5,000,000,000 $10,000,000,000 $15,000,000,000 Total Annual Finance
  • More precise biodiversity metric reduces extinctions •Top 20% endemic species 100% REDD+ MECHANISM •Number of forest endemic species (Indonesia, Brazil, 90% Extinctions with REDD as % of Mexico, Madagascar, PNG…) ADDITIONAL REDD+ PURCHASES extinctions without REDD •Endemic species per hectare of forest (Haiti, Jamaica, Sri payment for 20% 80% BUNDLED PAYMENTS FOR BIODIVERSITY (bonus most endemism) Lanka, Cuba, Madagascar…) 70% BUNDLED PAYMENTS FOR BIODIVERSITY (bonus payment for 20% most endemic/ha) 60% BUNDLED PAYMENTS FOR BIODIVERSITY (payment proportional to endemism) BUNDLED PAYMENTS FOR BIODIVERSITY (payment proportional to 50% endemics/ha) 40% 30% 20% 10% 0% $- $5,000,000,000 $10,000,000,000 $15,000,000,000 Total Annual Finance
  • Supplemental finance options for biodiversity and other forest services Biodiversity 1. Additional voluntary purchases of REDD+ Forests REDD+ Fund 2. Premium from existing REDD+ buyers for carbon from biodiverse forests (e.g.CCBA) Forests Biodiversity REDD+ Premium 3. Bundling of payments for carbon, biodiversity (e.g. GEF) i. fund pays for reductions in countries’ biodiverse forests; countries sell resulting Biodiversity carbon abatement to the REDD+ mechanism Fund Forests REDD+ ii. fund buys carbon abatement from countries’ biodiverse forests above market price; resells Biodiversity to REDD+ mechanism at market price Forests Fund REDD+ iii. REDD+ mechanism pays for countries’ carbon abatement; fund pays for countries’ REDD+ contribution to biodiversity conservation Forests Biodiversity Fund
  • Co-benefit of REDD: Paying for forests’ carbon reduces extinction rate of forest species (Busch et al, in review) 100% 90% Deforestation (ha) Rate with REDD as % of 80% Emissions (GtCO2e/yr) rate without REDD 70% Extinctions (species/yr) 60% 50% 40% 30% 20% 10% 0% $- $5,000,000,000 $10,000,000,000 Total Annual Finance for REDD
  • Finer geographic scale for biodiversity metric generates greater reduction in extinction rate 100% REDD+ MARKET 90% Extinctions with REDD as % of ADDITIONAL REDD+ PURCHASES extinctions without REDD 80% BUNDLED PAYMENTS FOR ENDEMIC SPECIES/HA 70% (Continental) BUNDLED PAYMENTS FOR ENDEMIC SPECIES/HA 60% (Regional) BUNDLED PAYMENTS FOR ENDEMIC SPECIES/HA 50% (National) BUNDLED PAYMENTS FOR ENDEMIC SPECIES/HA 40% (Sub-national)? 30% 20% 10% 0% ? $- $5,000,000,000 $10,000,000,000 $15,000,000,000 Total Annual Finance
  • Supplemental finance for biodiversity subsidizes REDD+ S p’s p biodiversity subsidy p’d D q q’