REDD+ as a catalyst to a Green Economy?

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1 REDD+ as a catalyst to a Green Economy? Biomass estimation and forest cover mapping workshop, Kigali 20 June Wahida Patwa Shah UNEP- Nairobi

2 Outline REDD+ Programme Beyond Carbon: Multiple Benefits of REDD+

3 The REDD+ challenge REDD+ or REDD plus Decision 2, COP 13 (Bali Action Plan) and COP decision: 4/CP.15 (Methods) Draft text on REDD+ in AWG-LCA Copenhagen Accord and now Cancun Decision Reducing emissions from deforestation and forest degradation, and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries Support countries to develop strategies and capacities to create and monitor a forest based carbon asset However

4 Fundamental assumptions REDD+ will achieve its objectives only if: It delivers carbon benefits that are additional Promotes equitable development (i.e. local livelihoods and jobs, alternatives that go beyond compensation, through to enhancing national income, ) Is able to distribute and devolve benefits equitably Protects local communities and IPs for e.g user and access rights Safeguards and enhances biodiversity and ecosystem services Invest REDD+ funding for transformative shifts

5 Cancun & beyond Interim Partnership on REDD+ World Bank & UN coordination Bilateral Initiatives Country level progress Pilot projects at local and sub regional level Safeguards Financing

6 Bilateral initiatives 1. Australia International Forest Carbon Initiative (Asia Pacific) 2. Norway International Climate and Forestry Initiative Brazil Amazon Fund fight deforestation, conserve and promote the sustainable use of forests in the Amazon biome Guyana Indonesia letter of Intent 3. DFID ($97m), AFD ($112m), GTZ ($37m)

7 Main Multilateral Initiatives 1. Programme (FAO, UNDP and UNEP) 2. Forest Carbon Partnership Facility (FCPF) 3. Forest Investment Program (FIP), part of the Climate Investment Fund 4. Congo Basin Forest Fund (CBFF)

8 Funding commitments 1. Programme US$107million 2. FCPF Readiness Fund: about US$115 million Carbon Fund: about US$34 million signed 3. FIP US$542million pledged, US$ 82 million available 4. GEF US$ million for SFM 5. Congo Basin Forest Fund GBP 100million 6. Fast start funding for REDD+: +/-$4 billion

9 Programme One-UN: collaborative programme FAO/UNDP/UNEP Coordination with other initiatives Contribution to UNFCCC process Quick Start: Norway principal donor Support from Denmark and Spain Country actions Global component

10 country programs 9 countries; $4.4M per country; Country ownership and leadership Pilot Countries 30 member countries Africa: DRC, Tanzania, Zambia, Observer countries in Africa include CAR, RoC, Kenya, Nigeria and Sudan Asia & Pacific: Indonesia, PNG, Vietnam Latin America: Bolivia, Panama, Paraguay

11 Work areas of MRV and Monitoring National REDD governance Engagement of Stakeholders Equitable Benefit Sharing Multiple Benefits REDD+ as a catalyst to a green economy

12 Ecosystem-based benefits - conservation of forest biodiversity, water regulation, soil conservation, timber, forest foods and other non-timber forest products. Various factors affect the extent to which these benefits are delivered: the type, location and condition of the forest involved, which REDD+ activity is undertaken, how it is implemented, and the dependence of the local population on forest resources. REDD+ - social benefits, such as jobs, livelihoods, land tenure clarification, carbon payments, enhanced participation in decision-making and improved governance. Activities include: consultations on national priorities map-based analyses of the relationship between carbon, biodiversity and ecosystem-services exploration of the role of valuation and payments for ecosystem services development of a framework for understanding the consequences of land-use decisions for biodiversity and ecosystem services sharing of experience from different countries,

13 Ecosystem Services Biodiversity NTFP Carbon sequestration Timber Reduction sedimentation Water purification Benefits to: Local population Downstream population Global population Users of forest ecosystem services. Each circle represents one of the services provided by a particular forest. In this scenario the forest has large watershed and carbon sequestration benefits. Biodiversity encompasses all the other services as it is a benefit in its own right as well as a prerequisite enabling other benefits. Modified from Pagiola et al. (2002) and informed by MEA framework (MA 2003).

14 Multiple Benefits Beyond CarbonTransformative change Standards principles and criteria for REDD+ Spatial analysis Scenario analysis Multi criteria tools Participatory land use planning Trade-off analysis Convening role Examples at the provincial level National champions Key enablers Innovation hubs bringing together decision makers and knowledge generation

15 A Green Economy Beyond Carbon to a green economy Results in improved human well being and social equity, while significantly reducing environmental risks and ecological scarcities. REDD can galvanise the investments needed? Systems in place to safeguards multiple benefits, (manage risks and capture and integrate ecosystem based benefits)

16 Green Economy Transformation To offer a forest based carbon asset, countries will have to Reduce consumption of existing forest resources Shift to less consumptive use patterns This will require Investments in efficiency of use and processing of current options Identification of alternative, less consumptive options Investments in developing these options I.e. Efficiency Gains & Step-changes are key securing and sustaining the delivery of forest carbon assets. This is a transformative process.

17 Capital & financial markets, derived markets: securities, insurance etc. ODA Public finance Step changes Non market benefits Carbon credit REDD+ $$ CO2 markets Other ecosystem services NTFP & timber Water, recreation, NTFPs New technologies (e.g. integrated biorefineries) Forest Ecosystem service markets Low value timber Energy: Fuelwood & charcoal Transport & energy markets Efficiency gains, waste reduction Forest losses Forests Chips, round wood Mills Forest conversions Forest Product markets Agricultural markets, Non-timber energy markets, Land markets Sustainable intensification, tree crops, other high value shifts After Alusi et al, modified

18 Fundamentally REDD+, taken as a whole, is a unique opportunity to transform the forest sector and landscapes with trees including agricultural lands

19 Risks Assessment of risks (both socio-economic and environmental) The conversion of natural forests to plantations and other land uses of low biodiversity value and low resilience; The loss of traditional territories, natural resource rights and ecological knowledge; The loss of traditional and rural livelihoods; Social exclusion and elite capture in the distribution of benefits from REDD+; The creation of contradictory or competing national policy frameworks; The other benefits of forests are traded-off at the expense of maximizing the carbon benefits. Understand impacts, devise remedial measures

20 REDD+ in DRC Achievements National Coordination, supported by PM decree Integration of & FCPF coordination Civil society engagement integrated into delivery MRV (Satellite land monitoring, NFI, GHG Inventory) Ongoing SESA (Strategic Social and Environmental Assessment) REDD+ Strategy development Pilot projects processes Overall vision and land use planning

21 Cont. Ongoing 1. Analysis of existing policies and regulations (legal framework) to determine the extent to which they reflect and incorporate standards, mechanisms, incentives etc. to manage risks and capture benefits within the REDD+ context. 2. Participatory development of a set of nationally appropriate standards including indicators and verifiers. 3. Investments portfolio (FIP) and investment strategy Sustainable intensification of agriculture, energy for urban areas, 2 pilot projects for carbon and ecosystem services, management of water, 4. Green Economy; enabling conditions, forest, agriculture, mining codes; meso and macro zoning, PES, fiscal incentives, tax regimes.

22 Work with WHRC - Economic and social data required to assess and understand the economic benefits of forest based ecosystems services - Provide methods review and assessment of data needs and gaps for economic and social benefits from forest ES into pilot projects - Current drivers of land use change, deforestation and forest degradation and effects on stocks and flows - Economic models (scale based) Developing Investments portfolios

23 Biomass carbon in DRC

24 High biodiversity+carbon= high potential for ecosystem benefits High correlation between carbon stocks and protected areas management in PAs and issues concerning livelihoods etc.

25 High biodiversity+carbon= high potential for ecosystem benefits

26 Mining and forest cover loss Biomass carbon, mining and forest cover loss: mining activities are taking place on ca hectares of land. However, other areas may be affected by such activities in the future. Together, these areas cover 46% of the country and store 40% of its carbon. Explorative activities can significantly reduce the DRC s carbon stocks and the multiple benefits linked to the ecosystems in which it is stored.

27 Spatial analyses of the relationship between carbon storage, biodiversity and ecosystem services Biodiversity and other ecosystem services Case studies in Vietnam, Indonesia, Tanzania, Bolivia... etc

28 Tapping into Carbon Finance for MB REDD funds For example Biocarbon Funds Voluntary markets For example TIST Pilot projects at various scales NGOS such as WCS, Wildlife Works Carbon Integration of various services PES - lesson learnt and best practices Country examples like CR - Costa Rica - expanding forest areas need not come at the cost of the economy, if the right policies, institutions and investments are put in place. During a 20 period preceding 2005, forest area in Costa Rica doubled to 52%, while per capita income more than doubled to $8,719.

29 Key Messages The promise of REDD+ is motivating donor and developing countries alike to invest in capacity building for REDD+. Long term provision of carbon Multiple benefits and safeguards Leveraging investments A substantial missed opportunity, if the potential afforded by REDD+ investments to safeguard, enhance and optimize social and environmental services and biodiversity was missed. Country driven initiatives at various scales Integrated land use planning capacity building and

30 Conclusion REDD+ is a viable option for climate mitigation, but offers additionally significant development opportunities at the local and national levels. REDD+ opportunities provide opportunities to all countries of differing areas of forest cover (plus= conservation and enhancement of carbon stocks and sustainable management of forests). Performance driven, and enabling conditions; shifts in attitude and culture of governance & management at local and national levels Dangers must not be under-estimated: corruption, transaction costs, equity in access to benefits & voice From Programme perspective a unique opportunity to deliver ecosystem services as a basis for a green economy in a coordinated, transformative process

31 Thank you! For more information: