REDD+ and economic instruments implementation on the ground: Lessons from Mato Grosso, Brazil

Transcription

1 REDD+ and economic instruments implementation on the ground: Lessons from Mato Grosso, Brazil 7th Trondheim Conference on Biodiversity Session 8a Aligning economic instruments with regulation in a policy mix for REDD+ in Brazil Trondheim, May

2 Contents Context: deforestation in the Brazilian Amazon Evolution of REDD concept from local perspective REDD+ economic instruments implementation in Mato Grosso: status, perspectives and challenges Conclusion

3 Contents Context: deforestation in the Brazilian Amazon Evolution of REDD concept from local perspective REDD+ economic instruments implementation in Mato Grosso: status, perspectives and challenges Conclusion

4 Geography of deforestation in the Brazilian Amazon Source: Imazon

5 (in square kilometers) Evolution of deforestation rates in the Brazilian Amazon Other states Mato Grosso 1st package of policies against illegal deforestation + slowdown of commodities markets nd package of policies + recovery of markets Source: Prodes/INPE

6 Contents Context: deforestation in the Brazilian Amazon Evolution of REDD concept from local perspective REDD+ economic instruments implementation in Mato Grosso: status, perspectives and challenges Conclusion

7 Understanding of REDD from local perspective How it was How it is now RED Compensation payment for avoided deforestation Criterion: amount of avoided emissions Financing: international offsets from cap & trade mechanisms From pilot projects to state/ national strategy REDD+ Incentives for forest conservation/ sustainable management and better use of deforested areas Criteria: amount of reduced emissions and carbon stocks + safeguards Financing: mix of sources, major potential: international payment for performance schemes Jurisdictional (nested) framework

8 Contents Context: deforestation in the Brazilian Amazon Evolution of REDD concept from local perspective REDD+ economic instruments implementation in Mato Grosso: status, perspectives and challenges Conclusion

9 Perspective of CRA implementation in Mato Grosso How CRA works Rural Property A Rural Property B % of legal forest reserve Forest reserve liability $ CRA Forest reserve asset Same biome Same state or priority area in another state

10 Potential and challenges for CRA in Mato Grosso CRA potential in Mato Grosso CRA Liabilities CRA Assets Amazon forest biome (Mha) SIMLAM Não cadastrada Assentamento Cerrado biome (Mha) CRA Liabilities CRA Assets Source: ICV, 2013 Large imbalance between CRA assets and liabilities Strategies to reduce offer of and/or increase demand for CRAs Most or all of demand could be matched with CRAs of areas not legally deforestable Other financing mechanisms needed, potentially carbon-based

11 M R$ Situation and perspectives of ICMS-E in Mato Grosso How ICMS-E currently works Determined by the state 5% 11% 4% 4% 1% Environmental criteria Social coefficient Area of territory Population Own fiscal revenues 600 Distributed R$ 53 milhões to 85 municípios 3 major recipients: 400 Not determined by the state 75% Valor Adicionado (PIB) Município ICMS-E transfer (R$ M) % of total ICMS transfer to municipality 200 Apiacás 2,7 51% Juína 2,4 20% Comodoro 2,3 30% 0 Collected VAT transfer to municipalities (2008)

12 Proposed changes to ICMS-E in Mato Grosso Problems identified Proposed solutions Low efficiency: municipalities don t participate to decisions on or management of protected areas Incorporate new criteria, such as the area of municipality registered in SIMLAM Limited impact: low weight of environmental criteria Increase total percentage of environmental criteria

13 Governance challenges to REDD+ implementation in Mato Grosso Themes/ issues Land tenure Land-use planning Management of forests Management of forest-related funds Main challenges Low operational capacity of land agency to implement tenure regularization Lack of coordination between environmental and land agencies for tenure regularization Non-transparent and participatory process to build state zoning law => suspended Insufficient capacity of state environmental agency to enforce environmental law => improve monitoring; decentralization No accountability of state agency on destination of funds Source: Governance of Forests Initiative, ICV, 2011

14 Perspective of implementation of the Mato Grosso state REDD+ System Legal framework defining rights, governance structure, technical instruments and safeguards State Plan to control deforestation PPCDQ MT A few (pilot) REDD+ projects Estimate of emissions based on federal data What we already have Agenda for implementation Regulations of state REDD+ law Definition of baseline and methodology Safeguards Information System Specific REDD+ programs State-level MRV Fund-raising strategy Alignment between State and National REDD+ strategy

15 Contents Context: deforestation in the Brazilian Amazon Evolution of REDD concept from local perspective REDD+ economic instruments implementation in Mato Grosso: status, perspectives and challenges Conclusions

16 Conclusions regarding REDD+ economic instruments implementation in Mato Grosso High interdependency of economic and command-and-control instruments Jurisdictional REDD+ frameworks: promising approach for integrated strategies Governance gaps in terms of transparency, participation, accountability, coordination and capacity in the different areas of forest policies Gaps need to be faced within the scope of REDD+ implementation Still a lot to do for REDD+ implementation Alignment of National and state approaches fundamental International finance expected to support readiness and implementation