Dra. Marie Cordonier - Carbon Markets
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Dra. Marie Cordonier - Carbon Markets



Market Access Workshop - Honduras September 2011. IDLO presentation on carbon markets

Market Access Workshop - Honduras September 2011. IDLO presentation on carbon markets



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    Dra. Marie Cordonier - Carbon Markets Dra. Marie Cordonier - Carbon Markets Presentation Transcript

    • Access to Carbon Markets in the new Green Economy:
      Public laws for small & medium private producers
      Prof. Marie-Claire Cordonier Segger, MEM (Yale), BCL & LLB (McGill), BA Hons
      Director, Centre for International Sustainable Development Law (CISDL);
      Manager, IDLO Sustainable Development Law Programs;
      Visiting Professor, Faculty of Law University of Chile &
      Affiliated Fellow, LCIL Cambridge University
      mcordonier@idlo.int / www.idlo.int
    • Opening Carbon Markets for a Global & Local Green Economy
    • Green Economy must support Rural Development
      The rural poor depend the most on and are most vulnerable to ecosystem services for income, subsistence and future resilience
      Healthy ecosystems are critical to natural capital that generates economic activity for well-being (agriculture, aquaculture, forestry, climate system)
      The poor have few means to cope with and face disproportionate losses from the depletion of natural capital
      Many ecosystems are nearing critical thresholds beyond which their services to the poor are drastically reduced (coastal ‘dead zones,’ deserts, depleted soils)
      (TEEB: The Economics of Ecosystems & Biodiversity, 2010)
    • Rural Development through Participation
      in the Green Economy
      Direct benefits
      More employment
      New low-carbon products
      Stimulated existing sectors
      Local/national/international investment
      Small business development
      Sustainable energy, water and sanitation
      Indirect benefits
      Infrastructure development
      Local/national capacity building
      Resilience to natural disasters
      Meeting international commitments (UNFCCC, T&I Treaties...)
      2% GDP Green Investment Scenario v BAU
      (UNEP Green Economy Report, 2011)
    • Global Commitments to Open Carbon Markets
      & Green Economy
      UN Framework Convention on Climate Change
      Changes financial flows towards low-carbon and climate resilient pathways, from: “public and private, bilateral and multilateral, including alternative sources”
      - Clean Development Mechanism (CDM)
      - Reducing Emissions from Deforestation and Forest Degradation (REDD+)
      - Technology Mechanism &Nationally appropriate mitigation actions (NAMAs)
      Many Other Accords for Sustainable Development
      - UN CBD: Payment for Ecosystem Services (water services, biodiversity & habitat protection, etc)
      • ABS Nagoya Protocol: Access to Genetic Resources & Sharing of Benefits (ABS)
      • EU-Central America Association Agreement (SMEs, organic goods, carbon markets); CA-USA-RepublicaDominicana FTA, CA-Panama FTA, Mexico-Nicaragua FTA, Mexico-Honduras-El Salvador-Guatemala FTA, Canada-Costa Rica FTA, CA-Chile FTA, Panama-Singapore FTA, El Salvador - Taiwan FTA (diverse commitments to support sustainable development & SMEs)
      … Upcoming Rio + 20 UN Conference on Sustainable Development will focus on green economy in context of poverty reduction & sustainable development
    • Overcoming Legal Barriers to Carbon Markets
    • Growing Regional and Voluntary Carbon Markets
      In the past 5 years, international, regional, domestic and voluntary carbon markets have grown from:
      USD 11 billion to 141.9 billion
      (Carbon Finance at the World Bank, 2011)
    • Many Laws are Important – Not All are Clear
      Business registration and rules
      Taxation laws
      Subsidy policies
      Anti-corruption laws
      Financial planning, reporting and auditing laws
      Trade and investment laws
      Intellectual property laws
      Land use planning regulations
      Protected areas laws
      Payment for ecosystem services, community-based natural resource management and participatory forest management regulations
      Environmental and natural resource management laws
      Energy and electricity laws
      Agriculture laws
      Transportation policies
      Easement and acquisition provisions
      Building codes
      Water management laws
      Land tenure laws
      Forestry laws
      Biodiversity protection policies
      Human, indigenous and gender rights guarantees
      Constitutional laws
    • Legal barriers to access carbon markets:
      Clear Property rights
      Green investments can support poverty eradication & sustainable development, and laws can help with:
      Equitable and secure land tenure
      Clear guarantees for small & medium scale carbon owners
      Simple clear contracts for benefit sharing
      Reliable rules for insurance
      Straight rules for small land owners to associate & participate
    • Legal barriers to access carbon markets:
      Small & medium laws for SMEs
      Micro to medium sized enterprises may not gain access to open market opportunities, and laws can help with:
      Clear and affordable business registration
      Economic incentives for credit advances or capital start-up costs
      Elimination of perverse subsidies to competing “brown” businesses
      Guidelines for the transfer and sale of assets
      Corporate liability protection for owners and investors
    • Public – Private Dialogue & Participation for Green Economy
    • Conclusions: Time to move forward
      • New green economy markets are emerging, and important opportunities are opening for Central America.
      • There is a need for meaningful participation of SMEs and rural producers in the opportunities ofthe global green economy,especially carbon markets (CDM, REDD+, NAMAs).
      • Changes may be needed to public laws and policies. Successes can be shared, legal and governance barriers can be identified, reforms can be recommended, training and technical assistance can be provided, and solutions can be tailored for each sector / community.
      • With new cooperation all along the value chain, producers & consumers can build the green economy together!
    • Gracias / Thank you / Merci
      International Development Law Organization (IDLO)Viale Vaticano, 106 00165
      Rome, Italy
      +39 06 40403200
    • Annexes
    • Carbon credits (CERs) represent the difference between the baseline and actual emissions
      Greenhouse gas emissions
      Project start
      Historical Trend
      Generating carbon credits through REDD+ activities
      Source: UNDP 2010
    • Aid targeted at biodiversity, USD million
      (OECD, Rio Markers 2011)
    • Trends in public and private green instruments
      REDD+ activities will be eligible for support under new international finance mechanisms
      Renewable energy feed-in tariffs and other power purchasing agreements are being implemented across North America, Europe and Africa
      Carbon markets have gained traction in developing economies such as Brazil, China, India and Mexico with worldwide growth from USD 11 to 141.9 billion in 5 years
      Technology development and transfer to developing countries is supported by Japanese and Chinese initiatives
      Global market for eco-labeled fish products grew by over 50% in 2008-2009
      Ecotourism is the fastest growing area of the industry with an estimated increase in global spending of 20% annually
    • Green economy is more than global commitments
      New public & private investment & trade
      • International trade and investment agreements
      (renewable energy, transport, tourism)
      • Voluntary and regional carbon markets
      (agriculture and land-use)
      • Domestic tax policies and subsidies can encourage
      green investments
      • Value-added production and certification schemes
      Official Development Assistance
      significant portion is designated to green growth in:
      energy efficiency projects, low-carbon industries,
      natural resource management, disaster risk reduction
      OECD: bilateral ODA for climate mitigation
    • Practical example:Rising organic production and processing
      Organically managed lands reached 35 million hectares in 2010 with the highest number of producers in Latin America, Africa and Asia and revenues of USD 50.9 billion
    • Legal barriers to accessing green instruments:
      Access to justice
      Inaccessible institutions can lead to corruption, exploitation and administrative barriers without:
      Free, prior and informed consent (FPIC)
      Stakeholder decision-making procedures
      Rules for participatory project implementation
      Clear and affordable rights of recourse
      Culturally sensitive and customary justice systems
      Targeted legal training of officials, the judiciary and administrative tribunals
    • Legal barriers to access carbon markets:
      Fair employment rules for the poor
      Increased employment from new economic activity may not create fair and equitable labour, clear laws can help with:
      Fair negotiation of contracts
      Guarantees for decent wages
      Guidelines for safe working conditions
      Freedom of association & cooperatives
      Compensation for workplace injuries
    • LPPCI Methodology
    • International Development Law Organization
      • Inter-governmental Organization specialized in Legal and Institutional Aspects of Development
      • Legal Capacity Building and Technical Assistance Programs on Sustainable Development (Climate, Natural Resources, Green Economy) and other issues.
      • Legal Professionals; Governments; Policy Makers; Regulators; and Civil Society in Developing Countries, Transition Economies and Countries Emerging from Conflicts
      In-Country Programs: over 175 Countries
      Project Offices: Bishkek, Juba, Kabul, Nairobi
      Rome Headquarters, Regional Centers in Cairo and Sydney
      Alumni Legal Network in 44 Countries
    • IDLO Strategic Plan 2009-2012
    • Overcoming legal barriers to the green economy
      • The LPGE aims to ensure the meaningful participation of developing countries in the opportunities presented by the global green economy, while supporting the development of a legal environment that promotes sustainable use of biodiversity and equitable access to its benefits.
      • The LPGE is a unique methodology that systematically identifies legal and governance barriers, makes recommendations, provides legal and regulatory training and technical assistance, and implements consensus-based solutions tailored uniquely for each recipient country in order to access international green economy markets.
    • Overcoming legal barriers to the green economy
      Research on common barriers and legal best practices
      Context specific impact assessments to identify legal and institutional barriers between green economy benefits and poverty alleviation
      Consultation with stakeholders to build consensus on desired benefits
      Revision of finance instruments to ensure: access to justice, and property, labour and business rights
      Country-driven legal and institutional reforms to national, subnational and local regulatory frameworks
      Capacity building for ongoing domestic reforms
    • But a few IDLO programs...
      NationalLegal Preparedness for Climate Change and REDD+programs in countries such as Zambia, Vietnam, Mexico, Colombia, Ecuador with partners such as IFAD, CDKN, FAO and UN-REDD
      Training workshops to the Zambian Development Agency on green growth through legal incentives for international carbon investments
      Land titling legislation, REDD+ and customary lawresearch and legal training workshops on reform processes for communities in Uganda, Benin, Burkina Faso, Senegal, Liberia, Mozambique, Rwanda, Madagascar and Indonesia
      Legal training in selected communities in Kenya on rights to protect traditional knowledge through community-based mechanismsthat enable them to set legal conditions to share knowledge with non-traditional users on questions of biological diversity and REDD+
      Rural microfinance legal capacity analysis and training programsfor low-emission sustainable food production and labeling in communities in Ecuador and Uganda with partners such as the Government of Italy