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A perspective from the voluntary carbon market: supporting project-level PES & REDD+ initiatives

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A presentation by Chris Stephenson, head of operations at Plan Vivo, at a workshop held in Paris from Thursday, 3 December to Friday, 4 December during the 21st Conference of the Parties (COP21).

The event organised by the International Institute for Environment and Development aimed to share the findings of its research to inform a wider debate on how REDD+ is contributing to addressing the drivers of land use and land use change.

The presentation focused on a perspective from the voluntary carbon market: supporting project-level PES and REDD+ initiatives.

More details: http://www.iied.org/redd-paris-what-could-be-it-for-people-forests

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A perspective from the voluntary carbon market: supporting project-level PES & REDD+ initiatives

  1. 1. Plan Vivo Standard A perspective from the voluntary carbon market: supporting project- level PES & REDD+ initiatives Chris Stephenson | “Engaging men & women in REDD+ business” | Paris, 4 December 2015
  2. 2.  Longest-standing voluntary carbon standard in LUF sector (Pilot PES project in Chiapas, Mexico: 1994-97)  Foundation established in 2008 in Edinburgh  Tens of thousands of participants organised into a various community group structures  Flexible, transparent, equitable benefit sharing, low transaction costs Board of Trustees (10) PV Secretariat (4) Technical Committee (6) Technical Advisory Group (40) Stakeholder Group Plan Vivo Standard
  3. 3. Chris Stephenson | “Engaging men & women in REDD+ business” | Paris, 4 December 2015 Source: Forest Trends’ Ecosystem Marketplace, State of Forest Carbon Finance 2015. Summary of Forest Carbon Finance, 2014
  4. 4. Chris Stephenson | “Engaging men & women in REDD+ business” | Paris, 4 December 2015 Source: Forest Trends’ Ecosystem Marketplace, State of Forest Carbon Finance 2015. Latest trends in FCF
  5. 5.  Forest sector: 12% total GHG emissions 2000-2009 (IPCC, 2014)  A core element of ‘REDD+’ is to generate an adequate funding stream to mitigate the opportunity costs of forest conservation  $12.5 - 60 Billion annually (Morris and Stevens, 2011 / Angelsen, 2013)  Up to $8.7 Billion in public & private sector funding for REDD+ (2006-2014)  Private sector finance (incl. compliance & voluntary markets) has largely failed to materialise… so far !  Broad agreement on need for global agreement. Debate continues around bottom up vs top down approaches, or “polycentric” vs centralised governance (Sunderlin et al., 2015) The size of the REDD+ Challenge
  6. 6. • COMPLIANCE MARKETS • California, China, S. Korea, S. Africa • AVIATION NEGOTIATIONS: • ICAO plans to cap emissions at 2020 levels. • THE NEW YORK DECLARATION ON FORESTS: • Private sector signatories committed to reduce deforestation - supply chains. • INTERNAL CARBON PRICING: • Companies that internally price carbon are 5x more likely to offset. • NEW PUBLIC & PRIVATE FINANCING MECHANISMS: • Reducing risk of environmental investments: GCF, private funds, green bonds, etc. Summaries & stimulating demand for REDD+ FFI, GCP, IPAM (2014) bit.ly/REDDbluebook W. Sunderlin, A. Duchelle, et al. (2015) bit.ly/REDDcriticaljuncture
  7. 7.  >50 projects operational or under development in over 30 countries  2 million Plan Vivo Certificates issued to date  Est. $9 million channelled to rural communities so far Khasi Hills, India Mikoko Pamoja, KenyaYaeda Valley, Tanzania Bujang Raba, Jambi, Indonesia Plan Vivo project impacts CFES Programme: W. Kalimantan / Jambi, Indonesia Imagecredit:JuanPabloMoreiras
  8. 8. REDD+ as a Tanzanian model for strengthening community land rights and improving livelihoods Yaeda Valley, Mbulu District, Northern Tanzania
  9. 9. Network organization – benefits working in partnerships Land use planning Partnership forum Technical support Global policy and OD
  10. 10. Strengthening community land rights - Certificate of customary right of occupancy (CCRO)
  11. 11. Private capital based on past sales of forest based offsets and results – not a study of what might be possible low income people – 1-5usd/dayTarget Objectives Create employment Long-term economic security Means Capitalize early stage enterprises Impact Social - environmental - Financial Metrics Employment People reached Profitability Payment of Taxes Policy engagement
  12. 12. Contracting and Revenue The Hadzabe communities and Carbon Tanzania signed a legal contract in 2012 based on the communities adhering to the village’s own by-laws for managing the area under the CCRO and CT providing revenue Results based payments are based on activity based monitoring of the CCRO by community scouts. Patrolling is continuous, reporting on a monthly basis. Payments to community scouts using M-Pesa (digital money) are made based on reports being provided. Twice a year (May – Nov??) participatory community meetings are held to allow Carbon Tanzania to inform everyone how much income there is based on the sale of forest based offsets. Payments can also be adjusted based on the results of activity based monitoring. Communities determine how the income should be used and shared this is decided on with key government personnel and community members in order to ensure transparency.
  13. 13. Sharing revenue – how does it work Men Women Village / ward Government Carbon Tanzania Roles and responsibilities Conflicts? Concerns? Sales of forest offsets Percentage of total Expenditure Revenue Observation of the process Conflicts Concerns Needs Minutes of meetings signed by all community members and outlines percentage of revenue into bank accounts sent to Carbon Tanzania
  14. 14. Revenue 2011-2015 – the ‘general’ pattern USD 95,000 Tshs 192,000,000 Direct monthly payments Through M-Pesa Direct to the hospital as an insurance fundVaries considerably due to governance expectations Administration of CCRO by-laws
  15. 15. These companies are leading the way…
  16. 16. www.carbontanzania.com Thank you

Editor's Notes

  • REDD Readiness finance phasing out.
    California, Australia key compliance markets
    Average price on voluntary markets recovered slightly to $5.4/tonne in 2014; compliance prices averaged $12.7/tonne
  • REDD Readiness finance phasing out.
    California, Australia: Major compliance markets for forest carbon
    Average $5.4/tonne in 2014; compliance prices averaged $12.7/tonne
    New market entrants are few and offset supply outpaces voluntary demand
  • California regulators may consider REDD in 2016. Offset-inclusive policy in China, Korea, South Africa.
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