Pilot REDD+ in Community Managed Forest in Nepal

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1 Pilot REDD+ in Community Managed Forest in Nepal Bhaskar Singh Karky ICIMOD International Centre for Integrated Mountain Development Kathmandu, Nepal

2 Drivers of land use change Political drivers Regulatory policies/policy failures/governance deficit Economic drivers Market forces/incentive based mechanisms/agriculture & Energy sectors Climatic forces Climate change, variations in water availability Evolutionary forces Invasive species/pests/species extinction Globalization Migration, remittance, employment, change in lifestyle

3 Land use change in Kailali District Source: REDD Cell, MOFSC

4 Drivers of Deforestation Source: REDD Cell, MOFSC

5 Drivers of forest degradation Source: REDD Cell, MOFSC

6 Policy failures Source: REDD Cell, MOFSC

7 Communities can also play a positive role when there is a conducive policy e.g. usufruct rights spelled out in 1978] in 2005] Namdu, Nepal Source: SDC

8 Hindu Kush Himalaya

9 What does REDD/REDD+ deal with? REDD+ recognized (reducing deforestation, degradation, conservation, SFM, enhancement) REDD+ is an incentive based mechanism agreed at the global level Polluters pay for conservation and sustainable forest management (PPP) Source of finance for conservation (through IBM under UNFCCC) Biodiversity conservation and improved livelihood are co-benefits (mitigation-adaptation interface)

10 So why REDD+? Regulatory policies of the past have failed to halt deforestation Nearly 20% of GHG from deforestation and degradation (>transport sector) Standing forest < felled timber, and REDD tries to turn this around There will always be a demand for timber and forest products Voluntary participation by countries REDD+ in essence is about new paradigm in forest management: performance based management

11 Some agreements related to REDD+ Acknowledgement to act on REDD and establish REDD National Strategy or Action Plan in developing countries Scaled up, new & additional, predictable & adequate funding for developing countries for REDD+ among others (mitigation, adaptation, technology transfer, capacity building) Develop countries commit $ 30b for (adaptation & mitigation) $ 100b annually REDD+ awaits decision (because everything else has to be agreed first (e.g. long term commitments)

12 REDD+ initiative in Nepal Set up REDD Forestry and Climate change cell under (2009) Ministry of Forests and Soil Conservation (MFSC) Member of UN- REDD and World Bank- Forest Carbon Partnership Facility (FCPF) Nepals Readiness Preparation Proposal- RPP (under FCPF) approved Drafting national REDD (+) strategy

13 REDD+ Pilot Project? Community Managed Forest in Nepal Design and setting up of a governance and payment system for Nepal s Community Forest Management under Reduced Emission from Deforestation and Degradation (REDD) Partners: ICIMOD, FECOFUN & ANSAB Project demo site: 3 watersheds in Dolkha, Gorkha and Chitwan districts Working in Community Managed Forests with local community forest user groups

14 Goals Strengthen the capacity of civil society actors in Nepal to ensure their active engagement in the planning and preparation of national REDD-strategies. Facilitate the establishment a Forest Carbon Trust Fund that is sustainable, equitable and creditable in the long run. Contribute to the development of REDD strategies that can effectively and efficiently monitor carbon flux in community managed forests. Provide a high degree of replicability and applicability and act as a model- paving the way for new practices not only for the Hindu Kush Himalaya region (ICIMOD members countries) but globally wherever CFM is practiced.

15 Outcome of pilot project A framework for REDD strategies at national and local level developed. Government of Nepal ready to upscale the REDD payment mechanism demonstrated by this project in post 2013 period. Forest biomass enhancement occurs in the 3 watershed. Stakeholders and civil societies build capacity to implement decentralized REDD+

16 Timeline Call by CFI of Norad Phase 2: Pilot Phase commitment till mid Functional REDD Network groups in three watershed Develop an exit strategy, adopt a standard COP 14 June May May Phase 1 Readiness Phase Local level consultations, sight selection, demarcation and mapping, baseline reports, capacity development, baseline carbon inventory Plantation carried out inside and outside community forest. Alternative energy component: 80 biogas and 500 ICS subsidized Forest Carbon Trust Fund established. REDD+ payment made to REDD Network groups in 3 watersheds Link to market/ funds

17 Project activities

18 REDD+ sites in Nepal Himalaya

19 Different land uses within a watershed

20 Forest area in watershed Table 4. Area of different forest strata in three watersheds Name of the Watershed/ District Total Watershed area [ha] Total forest area [ha] within the Watershed Total Community Forest area [ha] Categories of forest within Community Forest Dense forest area [ha] Sparse forest area [ha] Charnawati (Dolakha) Kayarkhola (Chitwan) Ludikhola (Gorkha) 14,037 7,492 5,996 3,899 2,097 8,002 5,821 2,381 1, ,750 4,869 1,888 1, Total 27,789 18,182 10,266 7,437 2,829

21 Socio-demographic information Table 2. Socio-Demographic information of Community Forest within three watershed sites Name of the No of No. of Major ethnic Watersheds/ CFUGs Population CFUGs groups district Households Charnawati (Dolakha) Kayarkhola (Chitwan) Ludikhola (Gorkha) Total Tamang, Chhetri, Brahmin, Thami, Dalit Chepang, Tamang Magar, Gurung, Tamang, Dalit, few Brahmin and Chhetri

22 Baseline Assumption Biomass Reference point x Increasing biomass from real measurement b a c Reference scenario y Payment for CO2 Provide subsidy on Alternative Energy Declining biomass assumption based on historic trend T 1 T 2 Years

23 Carbon pool in the Community Forests (in Tons) ( ) area of forest (ha) weighted mean tc/ha for 2010 weighted mean tc/ha for 2011 difference tc/ha Name of the watershed Charnawati, Dolakha Kayarkhola, Chitwan Ludikhola, Gorkha Total 5, , , ,

24 Forest Carbon Trust Fund Establish a Forest Carbon Trust Fund at project level with seed grant from CFI of Norad (post 2013 this can be up scaled) CFUGs through REDD Network groups make claim to this Trust Fund Transparent benefit sharing mechanism Single desk to regulate carbon trade (accountability) Market/funds to purchase credits (CERs) from this Trust Fund for post 2013 period Payment rate: in average US$ 10.46/ha equivalent 1.15 US$ per t CO2 for increment al carbon

25 REDD payment (seed grant) through Trust Fund: Structure and System Central level Forest Carbon Trust Fund Advisory Committee Government, CSO, Collaborator, IPOs Program Management Unit Fund disbursement - joint 1Secretariat signature (ICIMOD, 2Data registration FECOFUN and ANSAB) and management Verification Agency District Fund Advisory Committee Watershed REDD Network Monitoring Committee (MC) Community Forest User Group

26 Payment mechanism Project partners are the signatories of the fund, payment made to REDD Network groups in the watershed that distributes to CFUGs Carbon data are registered and verified by committees under the supervision and management of Project Management Unit RDDD+ payment with safeguards Payment= f (CO 2 + Indigenous People Population + Sex Ratio + Poverty Index) Criteria develop for utilization of REDD payment: REDD activities, poverty reduction activities, target programmes for indigenous peoples (activities developed by REDD Network Groups)

27 REDD+ Social Environmental Standards Benefit sharing mechanism Fair, transparent, equitable, accountable (lessons learnt from CFM) Respecting the right of local and indigenous populations REDD Governance Meaningful and result oriented, Carbon rights policy Contribute to national/regional framework/harmonizing learnings Environmental conservation Important areas outside protected areas Ecosystem based adaptation strategy for the vulnerable

28 Consolidating REDD (+): Few Issues Economics Monetary benefits meagre, community costs and benefits Technical Science vs Community measurements (effectiveness, Quality), Proving Forest C-sinks (e.g. below ground), Managing Forest carbon, Harmonizing technical methodologies Social-Institutional Stretching local communities, Other Service delivery agents/agenda, Local conflicts, Transhumance actors, Ultimate yields, Scalability, Roles of different stakeholders Environmental Spin-offs Wildlife populations, leakage, Forest ecosystem biotic and abiotic hazards (fire, pests), Changing climate

29 Conclusion REDD is making good progress in Nepal with the REDD Cell/MOFSC supporting the process. Civil society, IP Groups, research institutions actively participating in the National REDD Strategy process. Private sector yet to participate, mainly donor driver. REDD+ calls for interventions in the Energy Sector and Agriculture Sector. At local level, REDD+ is an ecosystem based adaptation measure. Planning for Exit Strategy ICIMOD is following REDD+ negotiations closely and communicating stakeholders and vise versa.

30 Thank you

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