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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

   enforceme...
Forest
law
enforcement

   2007
Chatham
House
compara8ve
study
of
enforcement

             ‐
fisheries,
wildlife,
forests,...
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      ...
Governance
in
37
REDD
Countries


                 in
FCPF


•  World
Bank
survey
of
governance
in
212

   countries
–
2
i...
Governance
in
REDD
Countries

COFACE
Risk
Ra8ngs
•  French
export
credit
agency


•  Supports
business
opera8ng
in
high
risk

   markets


•  Assesses
s...
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...
REDD
country
ra8ngs
                            Business
climate   
       
Country
ra>ng

•    DRC
                   D 
...
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

   an...
Interpol
•  "Fraud
could
include
claiming
credits
for

   forests
that
do
not
exist
or
were
not
protected

   or
by
land
g...
How
do
we
prevent
this?
Minimise
Risk
of
Carbon
Crime
•  Engage
enforcement
agencies
now


•  Develop
mechanisms
for
coopera8ve
law
enforcement

 ...
Engage
Enforcement
Agencies
•  Interna8onal

   –  Interpol
–
“I
do
not
see
any
input
from
any
law

      enforcement
agen...
Develop
Coopera8ve
Law
Enforcement

•  Interna>onal
level,
e.g.
MOU
between
Interpol
and

   UNFCCC
Secretariat


•  Regio...
Engage
Civil
Society
•  Consulta8on
is
not
enough


•  Need
engagement
in
decision‐making


•  Break
down
barriers
between...
Learn
&
apply
lessons
•  CITES
–
system
for
fraudulent
permits


•  Montreal
Protocol
‐
illegal
trade
in
ODS
–
had

   to
...
Effec8ve
MRV
(not
MRv)
•  Broad
–
address
safeguards
as
well
as
carbon

     –  governance

     –  social
issues
and
impac...
Planned
work

  Chatham
House
and
Global
Witness


•  Build
on
25
years
combined
experience
in:


   –  Analysing
environm...
Governance, risk and redd
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Governance, risk and redd

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

  2. 2. Governance
failures
 •  Corrup8on
 •  Weak
ins8tu8ons
and
unclear
laws

 •  Poor
/
non‐existent
forest
law
 enforcement
 •  Lack
of
transparency
&
accountability

  3. 3. 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.”

  4. 4. A
symptom
of
governance
failures
 Environmental
crime
 Illegal
logging

  5. 5. 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).
  6. 6. 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


  7. 7. Governance
in
REDD
Countries

  8. 8. COFACE
Risk
Ra8ngs •  French
export
credit
agency
 •  Supports
business
opera8ng
in
high
risk
 markets
 •  Assesses
sovereign
risk
and
assigns
ra8ngs
to
 countries
  9. 9. Ra8ngs •  2
types
 –  Country
ra8ngs
 –  Business
climate
ra8ngs
 •  7
levels

 –  A1,
A2,
A3,
A4,
B,
C,
D
  10. 10. 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

  11. 11. 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
 
 
 
 
 

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

  13. 13. Carbon
crime
  14. 14. 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

  15. 15. 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
  16. 16. How
do
we
prevent
this?
  17. 17. 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

  18. 18. 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
  19. 19. 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

  20. 20. 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


  21. 21. Learn
&
apply
lessons •  CITES
–
system
for
fraudulent
permits
 •  Montreal
Protocol
‐
illegal
trade
in
ODS
–
had
 to
amend
Protocol
once
implementa8on
 began
to
bite
 •  FLEGT
  22. 22. 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

  23. 23. 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


×