Session 6.1 Marissa camargo redd private sector

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Session 6.1 Marissa camargo redd private sector

  1. 1. Engagement of private sector in REDD+: issues, opportunities and challenges Marisa Camargo University of Helsinki; Indufor Isilda Nhantumbo - IIED 12/02/2014 World Agroforestry Congress New Delhi, India 1
  2. 2. Introduction • REDD+: No binding agreement, but demonstration projects being tested on the ground • Is the PS engaged in demonstration projects? • How did it acquire the right to develop and transact credits? • How is it sharing benefits with local communities? 12/02/2014 World Agroforestry Congress New Delhi, India
  3. 3. Who is the Private Sector? • No agreed definition: OECD, UN, EU • In this study: – For-profit: e.g. corporations, foundations, consulting companies, brokers – Voluntary: NGOs 12/02/2014 World Agroforestry Congress New Delhi, India 3
  4. 4. Importance of the PS • Benefits of engaging PS include: – help close the financial gap (limited public funds) – has technical capacity to help implement REDD+ more efficiently – provide price incentives to stimulate investment in SFM; – large size of investments = high potential for change • Warsaw Framework for REDD+: 7 decisions – Finance: ‘results based’, resources from public and private, bilateral and multilateral entities including alternative sources • But also risks… e.g. take land away from community • Private sector engagement is central to successful REDD+… if equity considerations are incorporated 12/02/2014 World Agroforestry Congress New Delhi, India 4
  5. 5. Database • 115 demonstration projects (accounting for GhG): – Participants and target groups; objectives; activities; land area; tenure arrangements; benefit sharing mechanisms Continent Number of projects Total area (ha) Average land size Countries in each region Africa Asia Latin America Total 24 30 61 8,602,069 10,486,268 9,592,981 358,420 349,542 157,261 11 8 13 115 28,681,318 33 • LA - most projects in private land • Asia - host larger projects (ha) 12/02/2014 World Agroforestry Congress New Delhi, India Countries with higher number of projects per region Cameroon (5) Indonesia (19) Brazil (15), Peru (13) and Mexico (10)
  6. 6. Database • Objectives: Reduce emissions • Activities: – agriculture productivity issues of smallholder sector, biomass energy efficiency in production and consumption, and sustainable management of forests including control of forest fires; participatory natural resources management and payment for ecosystems services; research on biophysical and socioeconomic aspects of REDD+ implementation; conservation of private lands and public private areas; instil political stability and security….. • Agroforestry: – not the objective (~5/115), but feature in benefit sharing and activities together with conservation agriculture - increase productivity from land and reduce need for expanding into natural forests 12/02/2014 World Agroforestry Congress New Delhi, India 6
  7. 7. Database: actors • Several stakeholders: local and national governments, donors, local and international NGOs, research institutions, consultancy companies, legal firms, carbon brokers, private foundations, business, local communities • Not all present at once • Private Sector: – Demand credits: corporations (e.g. offsetting) – Supply credits: consultancy co, brokers – Demand and supply: options to consumers 12/02/2014 World Agroforestry Congress New Delhi, India 7
  8. 8. Private sector engagement in REDD Project developers 10% 11% For-profit sector 35% Voluntary sector Governments 8% Partnerships (e.g. PPP) 36% Unclear/no data Not only as developers, but as investors, donors, facilitators, TA… 12/02/2014 World Agroforestry Congress New Delhi, India 8
  9. 9. Rights: Who owns the carbon? 12/02/2014 World Agroforestry Congress New Delhi, India 9
  10. 10. Rights: who owns the carbon? • Carbon credit is a new commodity • Countries are still building legal frameworks – Who owns cc? Conditions to transfer rights • Policy vacuum - developers are innovating: – C interpreted as product of the forest, similar to wood, non-wood, wildlife, so communities (as holders of these rights) also hold rights to carbon – Law defines - State owns all land and water including subsoil resources, so they interpreted that, by default, the State would also be the owner of carbon rights – Governments - conservation concession borrowed from forest concession which exists in the legal framework 12/02/2014 World Agroforestry Congress New Delhi, India
  11. 11. Rights: who owns the carbon? • Rights to carbon is not always discussed in project documents • Too risky? 12/02/2014 World Agroforestry Congress New Delhi, India 11
  12. 12. Rights: who owns the carbon? • REDD+ as an opportunity to fill the policy vacuum with more equitable rules • Inclusive legislation – Encourage more private sector investment – Ensure real community involvement and fair benefit distribution • After all… – Project developers acknowledge that community engagement is key to ensure sustainability to the project – risk mitigation strategy – decreases likelihood of leakage 12/02/2014 World Agroforestry Congress New Delhi, India 12
  13. 13. Benefit Sharing: how are communities engaged and benefits distributed? 12/02/2014 World Agroforestry Congress New Delhi, India 13
  14. 14. Community engagement • Communities are involved in several ways: – Decision making, employees, receivers of capacity • Some projects: NO local community involvement – driven by a private land owner – NO people living in the area (and neighbor communities will not be negatively impacted) – Communities not integrated… • Long-term pressure on land? Population growth? Projects are in average (only) 30 years 12/02/2014 World Agroforestry Congress New Delhi, India 14
  15. 15. Benefit Sharing • Communities not always see a share of carbon revenues - only 23% • But project developers list several benefits: – E.g. capacity building, employment opportunities, introducing sustainable land management practices • investment and costs incurred to secure generation of carbon credits? • Communities also contribute with labour to ensure that carbon credits are generated • What should we take into account when partitioning the benefits? 12/02/2014 World Agroforestry Congress New Delhi, India 15
  16. 16. Benefit Sharing • Not so transparent… – 16% give information on the share of the benefits allocated to different stakeholders – Out of the 115 projects, only 4 contracts available – Peru project: list of preferential beneficiaries, but the amounts allocated to each are confidential 12/02/2014 World Agroforestry Congress New Delhi, India 16
  17. 17. Conclusions 12/02/2014 World Agroforestry Congress New Delhi, India 17
  18. 18. Conclusions • PS is an important player to help implement REDD and design more inclusive legal instruments • However…. more transparency, accountability, integration, FPIC should be promoted to ensure the design of a more equitable and sustainable system • WIN-WIN solutions 12/02/2014 World Agroforestry Congress New Delhi, India 18
  19. 19. Thank you! Marisa Camargo marisa.camargo@helsinki.fi 12/02/2014 World Agroforestry Congress New Delhi, India 19
  20. 20. REDD+ in the landscape 12/02/2014 World Agroforestry Congress New Delhi, India 20
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  22. 22. REDD+ at landscape level • No evidence that projects actively involve businesses across sectors that are part of the landscape driving the local economies • Exclusion of stakeholders poses several risks: – Increases competition and affects benefit sharing – reduces the potentially higher cumulative impacts – creates potential for leakage – sustainability is tested 12/02/2014 World Agroforestry Congress New Delhi, India 22
  23. 23. Inclusive REDD+ • Some elements of inclusive business models – Mapping of all land users and uses within the landscape; – Conduct FPIC, including local communities but also all other users (forest concessionaires, small timber operators, mining companies, large scale agriculture investments); – design an intervention that brings the different interests in a shareholding approach; 12/02/2014 World Agroforestry Congress New Delhi, India 23

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