NORAD REDD pilot project in the Nepal Himalaya Climate and Forest Initiative

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1 NORAD REDD pilot project in the Nepal Himalaya Climate and Forest Initiative Bhaskar Singh Karky International Centre for Integrated Mountain Development Kathmandu, Nepal Hindu Kush Himalaya

2 Nepal: Population and economy Population: 23.1m, 2001, 2.25% per annum; 26.9m p,2008 Size of Economy: GDP USD Billion: 3(1987), 4.9(1997), 8.9(2006), 10.2(2007); Ave. ann. Growth 4.5( )World Bank Income per capita: $350/ ; $390/06-07; $470/07-08 p Per capita CO 2 emissions: metric tons CO2; UN Carbon intensity: 0.45 CO 2 /GDP 2004 [UN MDG/IMF] CO 2 intensity: metric tons of CO2 per million constant 2005 $US [ WRI] Nepal s National Greenhouse Gas Inventory in 1994/95 (Gg)

3 Rationale to engage in REDD debate CFM sequesters carbon but are not recognized Develop human resource to engage in REDD debate such that mountain livelihoods are safeguarded To be able to develop carbon offset projects CFM is an adaption and mitigation measure fulfilling the twin objective of the convention REDD is biased towards tropical countries and ignores mountain specificities CFM: Impacts at local level Increased off-take of resources in a sustainable manner Natural regeneration of forest Devolved forest governance High social value, incentive for conservation & management For these reasons local communities will continue to manage their community forest without REDD revenue as they have been doing

4 Impacts at global level Sequesters 3.7 to tco2ha-1yr-1 excluding below ground biomass &SOC Real emission reduction (is incremental after sustainable harvesting) Contributing to strengthening natural sinks Least cost abatement strategy (tco2 $0.55) Deforestation & degradation are major sources of emission in developing countries (77% for Nepal) NORAD REDD sites in Nepal Himalaya

5 Different land uses within a watershed Baseline Assumption

6 Biomass trend in three sites (t/ha) over 5-year period Annual variation in biomass (t/ha) over 5-year period

7 Cost of carbon sequestration CFUGs derive greater non-monetary benefits than monetary benefits from managing community forests; and these benefits are the economic rationale for them to manage and conserve their forest at present. For the local CFUG members, carbon trading is only attractive when forest resources are permitted under where gains from carbon management are additional to gains from CFM. Benefits from sustainable management keeps costs down. Size of the area of forest is a major variable determining net benefit level and the break-even price for tco 2. The larger the area the less the relative cost in managing the forest. Major learning outcomes There is an interest from communities to participate in carbon trading (with conditions) Communities have the capacity to perform forest inventory and carbon inventory (locate points on GPS, record dbh data) Education level plays a critical role Migration is also important Solution to forest degradation lies in sustainable forest management by local communities Community forest entails hi social returns than monetary, opportunity cost is high. Incentives from REDD need to be high for voluntary participation

8 Locals can train other professionals Concept for NORAD Pilot Project Scientifically it is established that CFM contributes globally Project is scaled up: 3 water sheds, 10,000 ha. Establishing a payment mechanism with a basis for payment Establishing a national level Forest Trust Fund and Data Centre (above points prepare Nepal for the REDD) (decision to participate rests solely with Nepal)

9 Rationale for NORAD Pilot Project Ethically, CFUGs need to be recognized Local people managing forest must be made aware of the global policies and negotiations CFUGs are right holders; they decide whether to take part or not (in REDD) Global market (voluntary & regulatory) is developing fast, CFUGs need to keep pace or can be left out completely Goal & Year 1 outcomes of NORAD REDD Pilot Goal: Piloting REDD payment mechanism in community forest management in 3 watersheds of Nepal Outcome: Framework for REDD strategies at national and local level developed

10 Objectives To achieve this goal, the pilot project will: Strengthen the capacity of civil society actors in Nepal to ensure their active engage in the planning and preparation of national REDDstrategies. Establish a Forest Carbon Trust Fund that is sustainable 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. Take home message Adaption options in the LULUCF sector are linked with mitigation measures and vice versa when viewed under the sustainable development framework. By strengthening the functions of natural resource base, it builds the resilience capacity of local populations who s main source of livelihoods depend on LULUCF sector. Such mitigation measures are actually a spin-off benefit of implementing adaptive measure and does not cost extra. Many adaptation activities lead to effective and long-term mitigation pathways and many mitigation actions support adaptation measures. REDD in Himalaya is about Ecosystem-based Adaptation for the most the vulnerable populations.

11 Thank you