State of Negotiations and Implementation of UNFCCC and the Kyoto Protocol: Key Issues for Indigenous Peoples

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1 State of Negotiations and Implementation of UNFCCC and the Kyoto Protocol: Key Issues for Indigenous Peoples Vicky Tauli-Corpuz Exec.Director- Tebtebba Chair, UN Permanent Forum on Indigenous Issues T e bte bba Indig e no us P e o ple s Inte rna tio na l C e ntre fo r P o lic y R e s e a rc h a nd E duc a tio n

2 International concept Outline: 1. Multilateral Organizations addressing Climate Change. 2. Present State of Negotiations 3. Issues relevant for Indigenous Peoples 4. Tasks ahead

3 International concept 1. Multilateral Organizations dealing with CC World Meteorological Organization (WMO) UN Environmental Program (UNEP) Intergovernmental Panel on Climate Change (IPCC) -set up in 1988 most authoritative scientific and technical voice on CC

4 International concept IPCC WG -1 -scientific aspects of climate system and climate change IPCC -WG 11 -vulnerability of human and natural systems, negative and positive impacts, options for adapting. IPCC -WG 111 options for limiting GHG emissions (mitigation) and economic issues

5 International concept UN Framework Convention on Climate Change (UNFCCC) Adopted in Brazil, states signed Entered into force, States Sets overall framework for intergovernmental efforts to address CC Recognizes that climate system is a shared resource affected by GHG emissions

6 International concept UNFCC Main aim: Article 2: Stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a timeframe sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner.

7 International concept UNFCC STRUCTURES Conference of Parties (COP) highest decision making body. Meets annually. Subsidiary Bodies SBSTA (Subsidiary Body for Scientific and Technological Advice) SBI (Subsidiary Body for Implementation) Ad-Hoc bodies can be set up by COP -

8 International concept UNFCC Parties Annex I Parties include the developed countries that were members of the Organisation for Economic Cooperation and Development (OECD) in 1992 plus countries with economies in transition (EITs).Accepted a voluntary commitment to return their emissions of GHGs to 1990 levels by year Annex II Parties consist of the OECD members of Annex I. They accepted a commitment to provide financial aid to non-annex I Parties to meet their agreed incremental costs under the UNFCCC. Non-Annex I Parties are the more than 150, mostly developing countries

9 International concept KYOTO PROTOCOL Article 4 of UNFCCC calls for a review at COP-1 of the adequacy of its commitments towards meeting the objective of the Convention to stabilize atmospheric concentrations of GHGs. COP-1 (Berlin, March/April 1995), the Parties agreed that the UNFCCC s voluntary commitments would not lead to stabilization, and in a decision known as the Berlin Mandate, launched a new round of talks to decide on legally binding commitments for industrialized countries.

10 International concept The Kyoto Protocol is intended to supplement and strengthen the Convention by creating binding targets on GHG emissions for Annex I Parties. Adopted in Kyoto, 11 Dec Parties to the Convention to needed to ratify (or approve, accept or accede to) the Protocol for it to enter into force. 16 Feb entered into force established legally-binding emissions targets for industrialized countries that required an average 5.2 per cent reduction in Annex I Party emissions on 1990 levels during the period.

11 International concept KYOTO PROTOCOL Established Flexible Mechanisms to allow A1 countries to meet their commitments more cheaply outside their borders. 1. Clean Development Mechanism (CDM) (established under Article 12 of the Kyoto Protocol) allows Annex I Parties to obtain emissions credits for projects that reduce emissions in non-annex I countries, provided that the projects also help the non- Annex I Parties achieve their sustainable development goals. The credits are known as Certified Emission Reductions (CERs), and can be used by Annex I Parties to help meet their emissions targets.

12 International concept KYOTO PROTOCOL 2. Joint Implementation, or JI (established under Article 6 of the Kyoto Protocol) allows Annex I Parties to the Protocol to implement projects that reduce emissions, or increase the removal of emissions from the atmosphere by sinks, within other Annex I countries. Emission Reduction Units (ERUs) are generated by such projects, 3. Emissions trading under the Kyoto Protocol (established under Article 17) allows Annex I Parties to trade all classes of emissions credits. In concept, this should allow Parties to meet their targets at lower cost than if they had to achieve all of their emissions reductions domestically.

13 International concept KYOTO PROTOCOL: Classes of Emissions credits: AAUs (Assigned Amount Units) each Annex I Party s cumulative target for is divided into units of 1 metric tonne CO 2-equivalent. CERs (Certified Emission Reductions) credits from CDM projects. ERUs (Emission Reduction Units) credits from JI projects RMUs (Removal Units) credits generated by Annex I Parties by enhancing carbon sinks.

14 International concept IPCC 4 th Report (2007) climate change is accelerating and is unequivocal action must begin immediately to avoid irreversible damage. Stern Report; 2006: costs of preventing climate change significantly lower than costs of damage if action is not taken

15 International concept Ad-Hoc Bodies set up in 2005 Ad-Hoc WG on Further Commitment from Annex 1 countries (AWG-KP) mandate: establish targets for Annex I Parties for the next commitment period, AWG-LCA Ad-hoc Working Group on Long- Term Cooperative Action: Building Blocks established Adaptation Mitigation Finance Technology Transfer

16 International concept Building Blocks of Bali Action Plan mitigation; adaptation; technology; and finance. In addition to these four building blocks, other issues more countries was looking for agreement, including: establishment of a long-term emission reduction goal to meet the UNFCCC objective of stabilizing atmospheric concentrations of GHGs; reduction of emissions from deforestation and forest degradation;

17 International concept expansion of CDM and JI; compensation for the effects of Annex I Party mitigation actions on non-annex I Parties; control of emissions from fuel used in international aviation and marine transport; and easier mechanisms for voluntary commitments from non-annex I Parties

18 REDD? Reducing Emissions from Deforestation and Forest Degradation in Developing Countries Measure to provide positive incentives to developing countries to slow down their rates of deforestation and forest degradation to reduce emissions of greenhouse gases (mitigation). Industrialized countries make financial transfers to developing countries to compensate them for opportunity and other costs of avoiding deforestation.

19 Deforestation occurs when a forest is cleared and permanently converted to another use. Forest Degradation occurs when the structure or function of a forest is negatively affected by external factors e.g. fire, pests, pruning for firewoodthereby reducing forests ability to provide ecosystem services.

20 December Coalition of Rainforest Nations (led by Costa Rica and Papua New Guinea) presented formal proposal for reducing greenhouse gas emission from deforestation to 11 th Conference of Parties (COP) of UNFCCC and first Meeting of Parties(MOP) of Kyoto Protocol NGOs led by Environmental Defense Fund reiterated inclusion of forests under Kyoto Protocol's trading instruments

21 COP 11 requested SBSTA to evaluate issue of avoided deforestation and report back to UNFCCC COP 13/MOP3 (Dec. 2007, Bali) Two international meetings on avoided deforestation held in July 2006/March Brazil, opposed to linking RED schemes to carbon trading presented its avoided

22 Deforestation proposal based on public funding at SBSTA workshop -Sept.2006 and at COP 12 in Nov Stern Report (2006) review commissioned by UK 20 % of current annual GHG emissions is due to land use change mostly deforestation in developing countries. suggests avoided deforestation measure be included in post-2012 commitment period under Kyoto Protocol

23 Controlling deforestation could be one of least expensive ways to reduce emissions.redd central to global/national mitigation measures. Large scale prevention of deforestation be taken early through piloted avoided deforestation scheme to test methodologies and iron out technical and social difficulties Key issues discussed under UNFCCC Causes of deforestation (drivers)

24 Policy tools for REDD including bilateral and multilateral cooperation. Ways to provide incentives for REDD, including financial mechanisms (incentivising) Market based or fundbased mechanisms Technical issues associated with measuring REDD and implementing policies for REDD Simple commitments by developing countries

25 Current state of negotiations COP 13 (2007) Bali Action Plan and decision on REDD Parties agreed to consider policies and incentives for REDD and the role of conservation, sustainable management of forests, enhancement of carbon stocks in developing countries (UN Doc. FCCC/ CP/2007/L.7/Rev.1) Decision 2/CP.13: Parties recognized that the needs of local and indigenous

26 - Communities should be addressed when action is taken to address REDD. Climate Change Talks in Bangkok (April 2008), Bonn (June 2008) and Accra (August 2008) dealt with REDD. Submissions on REDD of Parties to the Secretariat before Accra: European Union: Stakeholders involvement, including involvement of local communities and indigenous peoples

27 and assessment of the effects on biodiversity are essential for any approach to be effective. Accra Talks: the AWG-LCA held a Workshop on Policy Approaches and Positive Incentives on issues relating to REDD and the role of conservation, sustainable management of forests and enhancement of carbon stocks in developing countries.

28 2. Forests, Indigenous Peoples and Climate Change Forest defined by FAO as an area of land of more than 0.5 hectares, contains trees higher than 5 meters with a canopy cover of more than 10% 2005 only 4 billion hectares of forest remain 10 countries house 2/3: Russia, Brazil, Canada, US, China, Australia, DRC, Indonesia, Peru and India

29 Forests cover 30% of earth's land area. House 2/3rds of terrestrial plant and animal species. Provide food, shade, shelter, timber and non-timber products, medicines, carbon reservoir, etc. In addition, for indigenous peoples, forest serve as habitat, base for traditional livelihoods, cultural and spiritual centers, etc. Tropical rainforests- home to 60 M IPs.

30 Forests and forest based livelihoods are directly affected by climate change Vulnerable to warming climate, increased variability, increased incidence and severity of extreme weather events. Higher temperatures and prolonged droughts lead to more forest fires.

31 Maintenance of forest-based ecosystem services that support other economic sectors can strengthen resilience to climate change. Moderating quantity and quality of water from watersheds (hydrological services) used for drinking, agriculture, etc. Role of intact natural forest vegetation in controlling fires and landslides.

32 Forests are already affected by rapid development of agrofuels/biofuels Driven by subsidies from EU, USA, Brazil, etc. Intact tropical forests converted to agrofuel plantations (oil palm, soya, sugar cane, etc.) Extent to which climate policy includes agrofuels as an emissions mitigation strategy impacts on forests and rights of indigenous peoples/forest dwellers.

33 Deforestation and forest degradation are a significant source of GHG emission and are among those that can be mitigated at relatively low financial cost. IPCC estimates that about half of potentially avoided emissions at $100/ton of CO2 equivalent could be achieved by reducing emissions from deforestation. Mitigation potentials of forests also affected by climate change (warmer/drier climate leads to more forest fires )

34 Forest massive carbon reservoir - 4,500 Gigatonnes (Gt) More CO2 than in remaining oil stocks (2,400 Gt) More CO2 than in atmosphere (3,000 Gt) Losing 9-13 million hectares per year - Indonesia and Brazil currently account for 2/3rds of total annual emissions from landuse change.

35 Estimates now place these countries as 3 rd and 4 th largest overall GHG emitters after China and the US. Drainage, clearing and burning of peatland forests in Indonesia are emissionsintensive due to carbon-rich organic matter. Many of the world's poorest and most politically marginalized people are dependent on forests. Forested areas and forest institutions are characterized by unclear property rights, remoteness from public scrutiny,history of repressive state actions

36 Persistence of conflicting claims over ownership, governance, control, use and access. Cause of armed conflicts and legal suits: used extensively for patronage politics by govt. officials/bureaucrats No satisfactory experiences and arrangements reached yet on governance of forests.

37 3. Funds for and other International Activities and REDD Forest Carbon Partnership Facility (FCPF) $300 million: Readiness Mechanism and Carbon Finance Mechanism Countries chosen in Sept Africa: Gabon, Kenya, DRC, Ghana, Liberia, Madagascar Asia: Nepal, Laos, Vietnam

38 Latin America: Guyana, Mexico, Bolivia, Costa Rica, Panama FCPF Donors: Australia,Finland,France, Japan, Norway, Spain, Switzerland,UK,US Other Funds: WB Forest Investment Programme (FIP)- $2 Billion Goal: to address the drivers of deforestation and forest degradation through pilots and to demonstrate how mitigation can be achieved.

39 Bilateral Funds: Norway (International Climate and Fund Investment: $600 M each year for next 6 years. - goal: to play a part in establishing a global, binding, long-term post 2012 regime that will ensure deep cuts in GHG emissions. Australia: A$ 185 for next 5 years - funding Indonesia/Papua New Guinea/FCPF

40 Private Sector Funding Rainforest Project launched by Prince Charles in Oct brings together scientists and leaders from industrialized countries to stop deforestation. Funded by 12 private companies: Rio Tinto, KPMG, Deutsche Bank, Morgan Stanley, Goldman Sachs Private foundations: Lucille Packard Foundation, Gordon and Betty Moore Foundation, Rockefeller Foundation,etc.

41 UN-REDD ($35 million from Norway) FAO, UN Development Programme (UNDP) and UN Environment Programme (UNEP) Aim to assist developing countries and international community to gain experience with various risk management formulae and payment structures. Generate resources and transfer these to reduce emissions from deforestation and forest degradation.

42 4. Issues Some key issues around REDD Estimation and monitoring changes in forest cover, associated carbon stocks and gas emissions, sustainable forest management, reductions in emissions from deforestation and forest degradation. Reference Emissions Level how to establish baseline or reference emissions levels against which reductions will be measured.

43 Capacity building how to ensure adequate technical and institutional capacity in developing countries to carry out REDD-related activities. Effectiveness of actions.

44 4. Risks and Opportunities Governance Risks Highly centralized top-down management of forests: Exclusion of IPs from decision-making Violations of land and resource rights of indigenous peoples, particularly forest rights Judicial and physical conflicts related to contested claims over forests. (Indonesia -510 local conflicts over forests) Historical and present lack of legitimacy, equity, justice in land-use planning

45 and benefit-sharing schemes Perverse incentives Funds for REDD fall into hands of deforesters (loggers/national governments,etc.) while forest conservers are not rewarded. Industrialized countries (Annex 1 countries) which have highest emissions continue business-as-usual as long as they pay poor countries to do REDD.

46 Relying mainly on market-based and market-linked mechanisms such as carbon trading as main means to fund REDD: Reliance on private sector and carbon market to provide funding for REDD. Driven more by speculation. (increase of voluntary markets) Lack of scientific proof that offsets (e.g. those carried out through CDM and voluntary markets, REDD,etc.) can really reduce GHG emissions.

47 Carbon trading diverts us from serious consideration of non-market financial mechanisms : Required purchase of a proportion of each Annex 1 country emissions targets (instead of free allocation), revenue will be used to fund REDD activities. Establishment of fund mechanism linked to UNFCCC to fund REDD recognition of indigenous peoples' rights, reform of laws and policies,etc.)

48 Opportunities: Use renewed focus on forests to call for policy and legal reforms on forests which recognize indigenous peoples' rights. Strengthen implementation of UNDRIP and national laws on IP rights. Possibilities of preventing deforestation can be increased. Benefits for indigenous peoples if the REDD architecture is designed with indigenous peoples.

49 Opportunities: Strengthens possibilities for indigenous peoples to have a foot in the UNFCCC negotiations. Proposal for a Working group on local adaptation and mitigation measures of indigenous peoples. Proposal for an Indigenous Peoples' Capacity Building Fund for REDD Possible establishment of an international panel to monitor how REDD is being implemented

50 4. Ways Forward - Recommendations from UNPFII and other IP groups that the UNFCCC establishes a Working Group on local adaptation and mitigation measures of indigenous peoples. Special report on local adaptation and mitigation measures and a roadmap for indigenous peoples and climate change.

51 Asia Summit on Indigenous Peoples and Climate Change (February 2009) Research on adverse impacts of climate change on indigenous peoples and their adaptation and mitigation measures. Global Summit on Indigenous Peoples and Climate Change (April 2009, Alaska) Develop a REDD architecture using human-rights based and ecosystem approach.

52 International Expert Workshop on the Implementation of the UNDRIP (Jan.14-16,2009) International Expert Workshop on Indigenous Peoples, Extractive Industries and Corporate Accountability. Use of UNDRIP as an overarching framework for climate change measures as these relate to indigenous peoples.