Governance, risk and redd

Governance, Risk and REDD  Rosalind Reeve  Forest Campaign Manager  www.globalwitness.org 

Governance failures  •  Corrup8on  •  Weak ins8tu8ons and unclear laws   •  Poor / non‐existent forest law  enforcement  •  Lack of transparency & accountability 

Forest law enforcement  2007 Chatham House compara8ve study of enforcement  ‐ ﬁsheries, wildlife, forests, ozone ‐  •  Forest law enforcement emerged as weakest  •  In 7 REDD countries: “the general picture that emerges  is one of widespread corrup>on undermining a?empts  to strengthen forest law enforcement”   •  “…found a few examples of successes, oSen associated  with Independent Forest Monitoring (IFM) conducted by  NGOs or following publicity surrounding inves8ga8ons by  NGOs.” 

A symptom of governance failures  Environmental crime  Illegal logging 

Es8mated propor8on of illegal and legal 8mber  produc8on in 15 REDD candidate countries in 2007  Ghana Vietnam Cameroon Laos Guyana DRC Malaysia Colombia Papua New Guinea Tanzania Indonesia Indonesia PNG & Gabon SI Peru Rep. of Congo Bolivia Illegal Legal Paraguay Source: based on estimates from http://www.globaltimber.org.uk/IllegalTimberPercentages.doc except Colombia (World Bank estimate).

Governance in 37 REDD Countries   in FCPF  •  World Bank survey of governance in 212  countries – 2 indicators  –  control of corrup8on   –  voice and accountability  •  80% of 37 FCPF countries rank in boaom half  •  Nearly 30% are in the lowest quarter  

Governance in REDD Countries 

COFACE Risk Ra8ngs •  French export credit agency  •  Supports business opera8ng in high risk  markets  •  Assesses sovereign risk and assigns ra8ngs to  countries

Ra8ngs •  2 types  –  Country ra8ngs  –  Business climate ra8ngs  •  7 levels   –  A1, A2, A3, A4, B, C, D

REDD countries ‐ Best and Worst •  A4  –  the ins8tu8onal framework has shortcomings  –  acceptable but occasionally unstable [business]  environments  •  D  –  a high‐risk poli8cal and economic situa8on  –  the business environment is very diﬃcult  –  the ins8tu8onal framework has very serious  weaknesses 

REDD country ra8ngs Business climate    Country ra>ng  •  DRC  D        D  •  Bolivia  C        D  •  Ecuador  C        C  •  Indonesia  C        B  •  Panama  A4        A4  •  PNG  D        B  •  Paraguay  C        C  •  Tanzania  D        B  •  Vietnam  C        B  •  Zambia  C        C  •  Brazil  A4        A4  •  Cambodia  D        D  •  CAR  D        D  •  Cameroon  C        C    •  Congo ‐ Brazzaville  D        C  •  Guyana  D        D  •  Kenya  C        C  •  Mexico  A4        A4           

Risks to REDD – Corrup8on  – Carbon Crime  • Carbon Cowboys eg Brazil, PNG  • Organised Crime 

Carbon crime

Interpol •  "Alarm bells are ringing. [REDD] is simply too big  to monitor. The poten8al for criminality is vast  and has not been taken into account by the  people who set it up"   •  "Organised crime syndicates are eyeing the  nascent forest carbon market. I will report to the  bank that Redd schemes are open to wide abuse”  Peter Younger, Interpol, Oct 09 

Interpol •  "Fraud could include claiming credits for  forests that do not exist or were not protected  or by land grabs. It starts with bribery or  in8mida8on of oﬃcials, then there's threats  and violence against those people. There's  forged documents too. Carbon trading  transcends borders.“  Peter Younger, Interpol, Oct 2009

How do we prevent this?

Minimise Risk of Carbon Crime •  Engage enforcement agencies now  •  Develop mechanisms for coopera8ve law enforcement  that transcend borders  •  Engage civil society – not just consult  •  Learn and apply lessons from addressing fraud and  crime in other systems e.g. CITES, illegal trade in ODS  •  Eﬀec8ve MRV that goes beyond carbon and includes  IM‐REDD ‐ independent monitoring of REDD 

Engage Enforcement Agencies •  Interna8onal  –  Interpol – “I do not see any input from any law  enforcement agency in planning REDD”  •  Regional  –  Regional enforcement en88es, e.g. Lusaka Agreement  Task Force  •  Na8onal   –  not just forest law enforcement oﬃcers – police and  Interpol NCBs, prosecutors, judiciary

Develop Coopera8ve Law Enforcement •  Interna>onal level, e.g. MOU between Interpol and  UNFCCC Secretariat  •  Regional level – use exis8ng mechanisms, e.g. LATF,  and develop new ones modeled on exis8ng networks  •  Na>onal level – between na8onal agencies – police,  forest authori8es, climate focal points, Interpol NCBs,  prosecutors, judiciary  •  Na>onal to Interna>onal level – use exis8ng  mechanisms, e.g. Interpol and their networks 

Engage Civil Society •  Consulta8on is not enough  •  Need engagement in decision‐making  •  Break down barriers between civil society and  enforcement agencies   –  Interpol Environmental Crime Programme – open  mee8ngs of Wildlife and Pollu8on Crimes Working  Groups with NGOs  

Learn & apply lessons •  CITES – system for fraudulent permits  •  Montreal Protocol ‐ illegal trade in ODS – had  to amend Protocol once implementa8on  began to bite  •  FLEGT

Eﬀec8ve MRV (not MRv) •  Broad – address safeguards as well as carbon  –  governance  –  social issues and impacts  –  biodiversity and environmental integrity  •  Inclusive – all stakeholders  •  Transparent  •  Robust ins8tu8ons  •  Integrated – all the parts ﬁt and work together  •  Feedback loop – to inform REDD implementa8on  •  Incorporate independent monitoring – IM‐REDD 

Planned work  Chatham House and Global Witness  •  Build on 25 years combined experience in:  –  Analysing environmental crime and convening  enforcement community (Chatham House)  –  Inves8ga8ng forest crime (Global Witness)  –  Establishing independent monitoring systems (Global  Witness)  –  Building coopera8ve law enforcement  •  Iden>fy the possibili>es for fraud to emerge in carbon  trading 

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Governance, risk and redd

by ecosystemsclimate on Sep 24, 2010

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