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Private sector in REDD+: carbon rights and benefit-sharing issues

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The presentation of Isilda Nhantumbo, a senior researcher with IIED's Natural Resources Group, to the IIED-hosted Moving ahead with Reducing Emissions from Deforestation and forest Degradation (REDD+) workshop on 9-10 April 2014.

The presentation, made in the third session on experiences from the ground and REDD+ financing, focused on carbon rights and benefit-sharing issues related to the private sector in REDD+.

More information on Nhantumbo’s work: http://www.iied.org/users/isilda-nhantumbo.

Further details of the workshop and IIED's work on REDD+ are available via http://www.iied.org/coverage-moving-ahead-redd-prospects-challenges-workshop.

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Private sector in REDD+: carbon rights and benefit-sharing issues

  1. 1. 1 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Author name Date Isilda Nhantumbo 9/4/2014 Carbon rights and benefit-sharing issues Private sector in REDD+
  2. 2. 2 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ 0 2 4 6 8 10 12 14 16 18 20 Argen na BelizeBolivia Brazil Cam bodia Cam eroonColom bia CostaRica DRCEcuador ElSalvadorEthiopiaGhana Guatem alaGuyanaHonduras IndiaIndonesia KenyaLaoPDR M adagascarM alawiM alaysiaM exico NepalParaguay Peru PNG SierraLeonSriLankaTanzaniaUganda Zim babwe Projects by country Continent Numberof projects Totalarea (ha) Average landsize Countriesin eachregion Countrieswithhigher numberofprojectsper region Africa 24 8,602,069 358,420 11 Cameroon(5) Asia 30 10,486,268 349,542 8 Indonesia(19) Latin America 61 9,592,981 157,261 13 Brazil(15),Peru(13)and Mexico(10) Total 115 28,681,318 33 0 10 20 30 40 50 100 - 50,000 50,000 - 500,000 500,000 - 4,400,000 Hectares Number of projects by size 10-110 years
  3. 3. 3 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Questions • Is the PS engaged in demonstration projects? • To what extent (number, area, volume of investment…) • How did it acquire the right to develop and transact credits? • How is it sharing benefits with local communities?
  4. 4. 4 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Private sector led 35% 36% 8% 11% 10% Project developers For-profit sector Voluntary sector Governments Partnerships (e.g. PPP) Unclear/no data
  5. 5. 5 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Role of Private Sector in REDD+ • Demand credits: corporations (e.g. offsetting) • Supply credits: consultancy co, brokers; implementing projects • Demand and supply: options to consumers • Financing REDD+ - CSR, Philanthropy, investment
  6. 6. 6 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Rights to carbon • No encompassing national legislation • Bilateral agreements • Company holds rights to sell carbon • DRC, Kenya, Tanzania, Zimbabwe • Indonesia, Malaysia • Peru, Paraguay, Costa Rica, Belize • Current legislation – Carbon as another commodity • Communities hold the rights to carbon • Colombia, Mexico • Cameroon • Government holds the rights to Carbon • Cambodia • Ecuador
  7. 7. 7 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Benefits • Very clear obligations for local land users • India, Malawi, Tanzania, DRC • 23% - mention B sharing; 16% - state share • 10% - Africa • 5% - Asia • 8%- Latin America • Rest – silent = risky?
  8. 8. 8 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Benefits • What benefits – CB, employment, extensions services • Accounting for the OC of labour, … • Social infrastructure ….25 years contract! • Very clear obligations for local land users • India, Malawi, Tanzania, DRC • Taxation – area based; income; social obligations • Payments to communities
  9. 9. 9 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Multiple actors, competing uses and claim of benefits The complex landscape of REDD+ Isilda Nhantumbo • Land users as shareholders? • Shared ownership of land, forests • Change LU practices to address DD Change in behaviour and practices Cash to individual is also important
  10. 10. 10 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Conclusion • PS – key actor • Legislation needed – long term investment • Beyond communities • Benefits, versus net benefits
  11. 11. 11 Isilda Nhantumbo 9/4/2014 Moving ahead with REDD+ Thank you Isilda.nhantumbo@iied.org

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