Reducing Emissions from Deforestation & Forest Degradation (REDD)Shalmali Guttal, Focus on the Global South, July 31, 2012 Markets??
What is REDD+?• REDD+ : countries efforts to reduce CO2 emissions that arise from deforestation and forest degradation, and foster conservation, sustainable management of forests, and enhancement of forest carbon stocks.• Deforestation & forest degradation 2nd leading cause of global warming, responsible for about 15% of global greenhouse gas emissions; preventing identified as one of the most cost- effective ways to lower emissions.• Eighty percent of the Earth’s above-ground terrestrial carbon & forty percent of below-ground terrestrial carbon is in forests• Most emissions from deforestation take place rapidly, whereas carbon removal from the atmosphere through afforestation and reforestation activities is a slow process.Source: http://www.forestcarbonpartnership.org/fcp/node/30
What is REDD+?• First proposed in 2005, Montreal Conference of Parties (COP) to the UNFCCC, by Coalition of Rainforest Nations (PNG and Costa Rica)• Discussed in subsequent COPs—Bali (Bali Action Plan) and Copenhagen;• REDD became REDD Plus (+): additional elements added
What is REDD+?REDD+ adopted at the 16th COP in Cancun inDecember 2010; encourages developing countries tocontribute to mitigation actions in the forest sectorthrough:a) Reducing emissions from deforestation; b)Reducing emissions from forest degradation; c)Conservation of forest carbon stocks; d) Sustainablemanagement of forests, and; e) Enhancement offorest carbon stocks.
Actors in REDD• Governments—parties to UNFCCC• Local communities, IPs, forest communities• The UNFCCC world of scientists and experts• Multilateral agencies: UN, World Bank, ADB, etc.• International experts on forestry, carbon measurement, etc.• International conservation and other etc.NGOs• Private sector—carbon traders, market, etc.
What is REDD+?• According to UN REDD: REDD is an effort to create a financial value for the carbon stored in forests, offering incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development.• It is predicted that financial flows for greenhouse gas emission reductions from REDD+ could reach up to US$30 billion a year.
What is REDD+?Extremely complex: needs many enabling factors toco-exist at the same time and complement oneanother:Identify real drivers of deforestation & degradation,&strategy to stop/control them—investment model,consumption, development strategy, corruption, lawenforcement, etc.Security of tenure of local communities to land,forests; secure livelihoods;Cutting emissions among the wealthy
FREE PRIOR & INFORMED CONSENT source: AIPPFPIC is mechanism and a process wherein indigenous peoples undertake their own/independent collective decision on matters that affects them as an exercise of their right to their land, territories and resources, their right to self-determination and to cultural integrity.• FPIC is a reiterative process to be undertaken in good faith to ensure mutual respect and meaningful participation in decision-making• FPIC is not merely a procedural process but a substantive mechanism to ensure the respect of indigenous peoples’ collective rights
Principles and substance of FPIC source: AIPP• The elements of FPIC are inter-related and should be taken holistically as one distinct decision-making mechanism specifically for indigenous peoples ensuring the respect for their collective rights• The first three elements ( Free Prior and Informed) qualify and set the conditions for a consent decision • Violations to any of this element invalidates a consent decision• All the elements should be consistent with the broader framework of respecting IP collective rights
How is REDD+ financed? No agreement at UNFCCC yet. But many interim commitments and several programmes already exist. Copenhagen Accord ‘fast start’ funds ‘agreed’ • $3.5 billion pledged by 6 countries (Australia, France, Japan, Norway, UK and US) for REDD. • Global REDD+ Partnership also pledged • Total pledges $4 billion. • 23% of pledged resources are allocated to Asia Pacific countries ($964 million)Multilateral REDD+ Support Other sources of financeProgrammes • Bilateral Partners• ($434 m for Asia Pacific (AP) region) • ($531 m for Asia Pacific region)• Forest Carbon Partnership Facility • In-Country Contributions – the (FCPF) governments take on 10-25 % of• UN-REDD Programme (UN-REDD) project costs.• Forest Investment Program (FIP) of the • Voluntary Carbon Market - 22 % Climate Investment Funds of registered forestry projects are• Global Environment Facility - part of VCM Sustainable Forest Management and
How is REDD+ Financed?• Multiple sources, for REDD Readiness and pilot projects• UN REDD (FAO, UNDP, UNEP)• World Bank: FCPF, FIP, Green Climate Fund, etc.• Bilateral donors—also included in aid packages• International NGOs, conservation groups, private foundations• Private sector—carbon markets
How is REDD+ Financed?• REDD-Readiness is a national strategy to prepare for a post-2012 REDD payment mechanism funded by multi-laterals.• REDD-Readiness is normally developed in-part to slot within a United Nations system and in-part for integration with private carbon markets. This tends to entail the national-level implementation of REDD, rather than the project level implementation.
How is REDD+ Financed? (Source: http://forest-carbon.org/faq/what-is-redd-readiness/)Additional capacity support in forest governance toexecute REDD activities & handle REDD financingeffectively• National strategies to reduce emissions thru local stakeholderconsultations, • Institutional, technical, human capacitybuilding, • Designing/implementing Monitoring, Reporting,&Verification (MRV) systems, & national forest carbonaccounting systems, • Developing national systems fordetermining baselines and Reference Emissions Levels, •Transparent, equitable and accountable benefit sharingmechanisms, • Developing safeguards and grievancemechanisms to protect the interests of forest communities andthe poor • Clarify national land, forest and carbon tenure rights.
How is REDD+ Financed? (Source: Bank Information Centre)
How is REDD+ Financed?Disagreements among many countries in recentmeeting in Bonn (14-25 May 2012).Parties differed in their views on the use of privatefinance, market mechanisms and offsets for forest-related activities.Many developing countries insisted that REDDfinancing should come through public sources andnon-market approaches; some rejected the use ofoffsets.Recent studies show that forest carbon market notexpanding.
Some Important Problems• Deceptive: guiding logic is: provide financial incentives to governments and forest owners in developing countries prevent deforestation & forest degradation• But payments are not for actually protecting natural forests, but for reducing emissions from deforestation/forest degradation.• A government or forest owner must show that a forest is being destroyed/degraded, & that this can be stopped in exchange for money that compensates for earnings from clearing or degrading the forest
Some Important ProblemsOffset and carbon trading: REDD will developmarkets to sell the capacity of forests to store CO2.Carbon trading does not reduce emissions: forevery carbon credit sold, there is a buyer. Tradingforest carbon would allow pollution in rich countriesto continue, meaning that global warming wouldcontinue.High GHG emitters (in wealthy & developingcountries) can purchase forest carbon credits andavoid their own ethical responsibilities to cutemissions.Governments or forest owners in developingcountries will be encouraged to deforest (or tothreaten to do so) so that they can receive paymentsto prevent it.
Some Important ProblemsForests viewed as stores of carbon rather than ascomplex eco-systems that support wide varieties of life,biological processes and people.UN definition of forests does not distinguish betweennatural forests & plantations, leaving the door open forinvestors & governments to convert natural forests (evenif sparse) to plantations + still get money under REDD+.―Degraded‖ forests are often areas valuable to localcommunities as sources of food, medicinal plants &NTFPs important for local diets and incomes.
Some Important ProblemsMany forest conservation programmes haveunfortunate histories of evicting local communitiesfrom forest areas once they are zoned as nationalparks and protected areas.At the same time, logging is permitted in particularforest sections which may be old growth forests,community forests and the ancestral domains ofindigenous peoples.
Some Important ProblemsFinancial risks of carbon markets: create newbubble of financial derivativesThere are already extremely complicated carbonderivatives on the market; adding forest carboncredits to these means exposing forests to marketvolatility & instability.Difficulties in measuring and guaranteeing theamount of carbon stored in forests for fixed terms;REDD can bring in new forms of corruption andcriminality
Some Important ProblemsTenure, Governance and RightsWho owns the forests? Who should be rewarded forprotecting and not cutting forests?The rights of rural and indigenous peoplescommunities to make decisions about forestmanagement not recognised.Enable new property rights: those who buy REDDcredits can own a portion of the capacity of the forestto sequester carbon for a certain period of time.
AlternativesProtect forests & the environment or create forestcarbon & environment markets?Control the real drivers of deforestation: logging,mining, destructive commercial interests…Stop conversions of forest and agricultural lands toagro-industrial estates and industrial plantationsReduce consumption & demands for productssourced from forests (minerals, biofuels, animalfeeds, rubber, high value timber, etc.) – low carbonfor everyone…
AlternativesUse REDD Readiness funds for programmes& infrastructure to strengthen:Tenurial rights of local communities to lands,forests & eco-systemsForest & ecosystem conservation &restoration that respect community rights &participationCommunity forestry and fisheries; locallivelihoods and economic foundations