Ready for REDD. BMZ Information Brochure e

Transcription

1 Ready for REDD Sharing the experience gained through German development cooperation with Reducing Emissions from Deforestation and Forest Degradation (REDD) BMZ Information Brochure e

2 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) 3 The role of forests in mitigating climate change Dirk Niebel Federal Minister for Economic Cooperation and Development The world s forests provide a livelihood for more than one billion people. For those people, the forest is a source of income, construction materials, fuel wood, food and medicine. Forests contain and preserve 75% of global biodiversity. They store carbon and produce oxygen, thus regulating our global climate. When people slash and burn forests, the greenhouse gas carbon dioxide is released. By protecting the forests, we can therefore also protect the climate and, at the same time, increase the capacity of ecosystems to adapt to climate change. Today about one fifth of all greenhouse gas emissions caused by human activity result from deforestation. The worst losses are happening in the tropi-

3 4 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) cal belt, where forests are being converted into farmland and oil palm plantations and where forest fires envelop entire regions in thick clouds of smoke. The concept of protecting forests as a means of protecting the climate was introduced at the UN Climate Change Conference in Bali in 2007 and subsequently became one of the key issues in the field of climate change mitigation. Today it is known around the world as REDD Reducing Emissions from Deforestation and Forest Degradation, a scheme of performance-based payments for quantified and verified emission reductions in forests. As a concept embedded in a future climate regime, REDD is considered the most promising way of generating the revenues needed to protect tropical forests as well as ensuring large-scale, long-term investment in the sustainable management of forests. However, there is widespread agreement that efforts to reduce deforestation will only succeed if the communities that rely directly on forests for their livelihoods are fully engaged in the process. Thus, local development, sustainable management of forests, biodiversity conservation and climate protection need to go hand in hand if REDD is to be successful. International development cooperation can play a vital role in consolidating progress in this field, and in moving forward with the practical implementation of REDD. German development cooperation has been engaged for many years in a number of countries and regions that are particularly relevant for forest and climate protection, such as Brazil, Indonesia and the Congo Basin. Thanks to these programmes, we have gained experience on how

4 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) 5 forest protection can be organised effectively in order to mitigate climate change. Forests, biodiversity and combating climate change continue to play a major role in German Official Development Assistance (ODA) and enjoy strong political support. Chancellor Angela Merkel s pledge to increase German support for the conservation of forests and other ecosystems by half a billion euros by 2012 resulted in a strong increase in commitments for mainly forest-related development cooperation during recent years. From 2013 onwards, it is our aim to invest half a billion euros annually in forests and other ecosystems, including through REDD. mitigation, biodiversity conservation and sustainable development. This publication gives an overview of the efforts by Federal Ministry for Economic Cooperation and Development (BMZ) to make a valuable contribution to mitigating climate change by effectively protecting the world s forests. Germany s pledge of fast-start climate funding under the Copenhagen Accord places a focus on REDD as a potentially effective and efficient tool for climate change Dirk Niebel

5 6 Contents I. REDD AN INtRoDuctIoN 8 What is REDD and what is REDD+? 8 What is new in REDD? 8 Building on tried and tested solutions 10 REDD step by step 12 Projects worldwide 13 Fighting deforestation in Brazil 13 Forest protection and REDD in Ecuador 13 REDD in the Lao People s Democratic Republic 14 REDD pilot measures in Indonesia 14 II. the contribution of GERmAN DEvElopmENt 17 cooperation Building on experience: benefiting both 21 development and biodiversity REDD: new opportunities and challenges 23 Recommended further reading 27 Acronyms 27

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7 8 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) I. REDD An introduction WhAt Is REDD AND WhAt Is REDD+? WhAt Is NEW IN REDD? About one fifth of all greenhouse gas emissions around the world are caused by forest destruction. Worst affected are the carbon-rich forests of the humid tropics. REDD, Reducing Emissions from Deforestation and Forest Degradation, aims to significantly reduce these emissions in developing countries at a comparatively low cost. The basic idea is to compensate national governments and local stakeholders in tropical forest countries for quantified and verified emission reductions. REDD+ goes beyond forest conservation activities to include the enhancement of forest carbon stocks, for instance by improving forest management, rehabilitating forests and undertaking reforestation. REDD activities can range from small-scale local projects to nation-wide country programmes. REDD contains a great many new ideas, but can also draw on many tried and tested solutions in hands-on project work. REDD adds the climate aspect to forest and biodiversity protection. What is new is the focus on current or future hot spots of forest destruction instead of designated conservation areas. The most important aspect of REDD is the performance-based payment for emission reductions. This means that the impact of protection activities on the climate must be quantifiable and verifiable. Therefore, REDD requires a special system of monitoring, reporting and verification (MRV), a sort of carbon accounting. Tropical forest countries (governments, institutions, alliances of indigenous forest owners or users etc.) should only receive compensation payments in exchange for successful forest protection measures and resultant emission reductions.

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9 10 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) At the climate conference in Cancún, Mexico, held under building on tried AND tested solutions the United Nations Framework Convention on Climate Change (UNFCCC), a decision was adopted encouraging German development cooperation has been working developing countries to contribute to mitigation actions successfully for a great many years on protecting the in the forest sector. However, many technical and methodological issues still need to be resolved. In the interim, the establishment of national forest policies, protected world s forests. We have been supporting our partners in international development cooperation has a particularly important part to play. Commitments in the field vention, the distribution of land titles, the promotion of areas, measures to stem illegal logging, forest fire pre- of REDD must not only serve to mitigate climate change community forest protection schemes and sustainable and conserve biological diversity but also contribute to forest management. Thanks to this wealth of experience, development. REDD needs to get the local population today German development cooperation is acknowledged worldwide for its expertise in the field of effective involved and offer economic alternatives to destructive land use practices. forest governance, which reduces poverty and protects biodiversity at the same time. Germany has also provided the impetus for the establishment and start-up financing of the multilateral Forest Carbon Partnership Facility (FCPF) which develops important standards and WhAt Is NEW IN REDD? benchmarks for national REDD programmes. focus Current or future hot spots of forest destruction means Performance-based payments (for emission reductions) principle Emission reduction must be quantifiable and verifiable

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11 12 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) REDD step by step REDD is implemented in three phases (see figure below). Ideally these phases follow one another. In practice, however, they often run in parallel with each other because specific needs and settings vary from one partner country to another. Phase 1 (Achieving REDD readiness) aims to put in place the necessary institutional, organisational and legal framework in developing countries for performance-dependent payments to be made at a later date for emission reductions. Phase 2 (Policies and demonstration activities) focuses on the actual introduction of national policies and local stand-alone projects which allow stakeholders to learn and demonstrate REDD s feasibility. Finally, in Phase 3 (Performance-based payments based on binding standards) remuneration is provided for verified emission reductions; this is done by direct financial transfers. German development cooperation supports its partner countries during all three phases of a REDD programme. phase 1: preparation AND REDD READINEss Collecting baseline data at national level, MRV system, REDD strategy and policies, capacity development phase 2: policies AND DEmoNstRAtIoN ActIvItIEs Implementation of national REDD strategies and policies, demonstration projects phase 3: performance-based payments Remuneration for emission reductions

12 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) 13 projects WoRlDWIDE Fighting deforestation in Brazil In 2004 the Brazilian government launched a new policy to fight deforestation in the Amazon Basin: the Action Plan for Prevention and Control of Deforestation in the Amazon (PPCDAm). Within only five years, rates of deforestation in the region dropped by 75%, from 27,000 km 2 in 2004 to below 7,000 km 2 in Over the last 15 years, Germany has contributed more than 300 million euros to help Brazil achieve this remarkable feat. With German assistance, Brazil has established 53 conservation areas covering a total surface area of 200,000 km 2, and has designated 99 indigenous territories with a total area of more than 380,000 km 2. These areas are a green bulwark against deforestation. In four federal states in the Amazon, environmental authorities have received better equipment and training. In more than 500 smallscale projects, innovative local approaches to sustainable forest management have been tested. Technologies to monitor deforestation on private land have been introduced. In 2008 Brazil set up the Amazon Fund, which is currently the most important financial compensation mechanism for REDD worldwide. Germany has pledged 21 million euros in financial cooperation and 4.5 million euros in technical cooperation to the Amazon Fund to support these positive developments in Brazil. Forest protection and REDD in Ecuador In 2008, Ecuador independently launched its Programa Socio Bosque (PSB). PSB pays indigenous and Afro- Ecuadorian communities and private forest owners to undertake forest protection measures. The country thus offers these groups an economic alternative to illegal logging. Demand for the programme is high and PSB is currently entering into 20-year agreements with individual partners, i.e. local communities or individuals. Compliance is monitored annually, before the next instalment is paid. Germany is providing support of 14 million euros for this programme. The funds currently available to PSB allow about 600,000 hectares of forest to be protected. However, another 4,000,000 hectares are still at risk. The goal of German development cooperation, apart from supporting the protection of additional forest areas, is to

13 14 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) tap new sources of financing for forest protection activities in Ecuador and to support the further development of REDD policies. REDD in the Lao People s Democratic Republic With support totalling 20 million euros from Germany, the World Bank, the Japan International Cooperation Agency (JICA) and others, the Ministry of Agriculture and Forestry is setting up the REDD Readiness Plan at the national and local level in the Lao People s Democratic Republic. Within the framework of the Lao system of national parks, the first concrete REDD demonstration measures are being conducted in three selected provinces. The partners are testing investment, financing and incentive mechanisms for innovative, poverty-related REDD activities. Local villagers are contributing to and benefiting from the process, especially in land use planning and the co-management of national parks. This is the first REDD initiative in the Lao People s Democratic Republic at implementation level, breaking new ground and providing valuable experience for national REDD policies. REDD pilot measures in Indonesia In the joint Indonesian-German forestry programme (funding totalling 28 million euros) with WWF, TNC and AusAID, Germany is helping the Indonesian Ministry of Forestry to establish and implement REDD programmes at national and local level. After identifying priority regions and assessing the socioeconomic feasibility of REDD activities, a grassroots-level pilot project has been put in place. The pilot project is intended to demonstrate that local development, sustainable forest management, biodiversity conservation and climate protection must go hand in hand if they are to be successful.

14 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) 15 Bilateral REDD pledges [up to 2010, in EUR million] Brazil 46 Indonesia 28 Lao People s Democratic Republic 12 Plurinational State of Bolivia 10 Ecuador 14 Regional Latin America & Caribbean 12 Bilateral pledges for forest conservation [up to 2010, in EUR million] 1,500 1,300 1, REDD Other 1,524 EUR 82 million LATIn AMERICA AnD CARIBBEAn EUR 507 million AFRICA EUR 40 million ASIA UnD PACIFIC EUR 479 million EUR 364 million Projects whose core objective is REDD Projects whose core objective is the conservation and sustainable mangement of forests

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16 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) 17 II. The contribution of German development cooperation The Federal Ministry for Economic Cooperation and Development (BMZ) determines the policies, principles and programmes of development cooperation. The bulk of BMZ funding is dedicated to bilateral cooperation in Germany s partner countries and regions. The BMZ is currently working with 44 partner countries in the context of forest conservation. Together with their partners, the BMZ s main implementing organisations, GIZ and KfW, are jointly responsible for ensuring the successful implementation of these programmes and projects (see Box Implementation of Germany s international cooperation ).

17 18 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) Implementation of Germany s international cooperation On behalf of the BMZ, Germany s implementing organizations for bilateral development-cooperation conduct tropical forest-conservation and REDD programmes and projects. KfW Entwicklungsbank is responsible for the implementation of financial cooperation programmes. It provides the funds for investment and also delivers advisory services in partner countries. GIZ is a state-owned international cooperation enterprise for sustainable development. Through the services it provides, GIZ supports complex development and reform processes in partner countries. At present, BMZ is investing 122 million euros in bilateral REDD programmes. Programmes are classified as REDD programmes if all of the following criteria are fulfilled: > they focus explicitly on reducing emissions from deforestation and degradation; > they either apply performance-based payments or work towards application of such payments; > they either verify climate-change-mitigation effects themselves, or work toward their partner countries providing such proof. More than 1.5 billion euros are being invested in other tropical forest programmes that are also highly relevant for climate change mitigation but are not classified as REDD programmes per se. A smaller percentage of BMZ funding is allocated to multilateral programmes, such as the Forest Carbon Partnership Facility (FCPF) set up at the World Bank and the REDD+ Partnership (see boxes Germany s contribution to the FCPF and The REDD+ Partnership ). Currently the FCPF is receiving 54 million euros from Germany.

18 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) 19 Germany s contribution to the FCPF Germany has provided the impetus for the establishment, organisation and start-up financing of the multilateral Forest Carbon Partnership Facility (FCPF). The FCPF supports the national efforts of up to 37 partner countries to achieve REDD readiness while also preparing compensation pilot schemes for successful emission reductions. The German government coordinates its activities closely with those of other donors and with the Facility Management Team at the World Bank. The FCPF is now generating methodological and quality standards for REDD and represents a central forum for mutual learning between partner countries, civil society and donors. Germany is aiming to achieve active cooperation and synergies between bilateral and multilateral REDD initiatives, especially in those partner countries which place great confidence in German development cooperation and have extensive experience in the forest sector as a result of long-standing bilateral cooperation. Germany s commitment to countries with major tropical forests is growing rapidly, and with it our wealth of shared experience as to what works and what does not work. Our commitment is based on international technical standards, the fundamental principles of REDD governance and donor coordination, a focus on results, and private sector involvement. Left: Meeting of FCPF members in Oslo, Norway in 2011

19 20 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) The REDD+ Partnership The REDD+ Partnership was founded in May 2010 in Oslo by 58 countries, both industrial and developing, as a global partnership for moving towards better coordination of REDD implementation, building on the political momentum from Copenhagen Its main purpose is to enable effective, transparent and coordinated fast action on REDD as well as knowledge transfer both between partner countries themselves and between partner countries and existing multilateral initiatives such as the FCPF. The REDD+ Partnership is in line with decisions taken by the Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC), which encouraged the countries to undertake coordinated efforts and immediate action to provide positive incentives for developing countries in their efforts to reduce forest emissions from forest degradation and deforestation. By the end of 2010, overall pledges of fast start financing amounted to USD 4 billion from 12 donor countries. The REDD+ Partnership, which today has more than 70 member countries, is regarded as having the potential to evolve into the key international political forum during the interim phase of REDD implementation.

20 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) 21 building on ExpERIENcE: benefiting both DEvElopmENt AND biodiversity Tropical forest conservation has long been an important priority area of German development cooperation. Worldwide, experience indicates that forests can only be protected if the local population is involved in protection measures and, particularly at the agricultural frontier, are offered an economic alternative to destroying the forest. Thus, the sustainable management of forests can be an important element of REDD, alongside forest conservation and other measures to ease pressure on natural forests. Generally, all REDD activities must maintain or enhance forest biodiversity, since species-rich and diverse forest ecosystems are more stable and more adaptive to climate change. In this context it is important to prevent natural forests from being converted into plantations with low biodiversity.

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22 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) 23 REDD: NEW opportunities AND challenges Because of the substantial possible funding, REDD is considered the most promising way of generating the revenues partner countries need to secure tropical forest conservation and sustainable management of forests on a long-term basis. Performance-based compensation payments are aimed at offering real economic alternatives to destructive forms of land use and also help partner countries to embark on a low-carbon development path. However forests can only sequester carbon and successfully store it if they are strong and healthy. Both these characteristics are directly affected by climate change and can only be maintained if the forests are able to adapt to climate change. Therefore linking mitigation with adaptation provides greater benefits than considering them separately. In its support for REDD, the BMZ is guided by the conviction that forests are more than simply important carbon stocks but fulfil essential ecological and social functions. While REDD has the potential to alleviate poverty, conserve biodiversity and reduce emissions, there is also a risk of it having unintended negative consequences for the poor and marginalised if it is implemented without the appropriate social and environmental safeguards and sound fiduciary standards. Through its development cooperation, Germany is therefore already actively supporting REDD countries efforts to: > put in place the political and institutional framework needed to protect forests in developing countries; > enable civil society and local populations who depend on forests to be involved in shaping REDD; > meet the technical requirements for carbon monitoring; > establish performance-based payment schemes for successful emission reductions. Tropical forest protection and climate change mitigation cost money. It is estimated that between 15 and 20 billion euros will be needed every year for up to 20 years if we are to effectively reduce emissions from forest destruc-

23 24 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) tion. The bilateral and multilateral efforts of the international community must be supplemented by private investment. The role carbon markets could play in this is currently the subject of much debate. Without the systematic, ongoing and long-term engagement of the private sector in our partner countries, here in Germany and in other industrialised countries, it will be very difficult to achieve the ambitious goals that have been set in the field of REDD. Thus, German development cooperation is, in close co-operation with other development partners and actors, also actively engaged in: > attracting new stakeholders and allies to the cause of REDD, such as private investors, or ministries of economics and finance in developing countries; > supporting transparent REDD financing, improved donor coordination and common REDD standards, e.g. in the context of the global interim REDD+ Partnership and the FCPF.

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26 REDD activities of the Federal Ministry for Economic Cooperation and Development (BMZ) 27 Recommended further reading The Forest Carbon Partnership Facility GTZ (2009): Making REDD Work CBD/GIZ (2011): Biodiversity and Livelihoods: REDD benefits FAO (2010): Global Forest Resources Assessment Key findings. Food and Agriculture Organization, Rome. KfW (2010): Conserving forests to protect our climate Download_center/pDf-Dokumente_broschueren/KfW_ Waldschutzbroschuere_Eng._bf_final_ pdf Acronyms AusAID Australian Agency for International Development bmz Federal Ministry for Economic Cooperation and Development fcpf Forest Carbon Partnership Facility GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (German agency for international cooperation) KfW German development bank oda Official Development Assistance psb Programa Socio Bosque (Ecuador) REDD Reducing Emissions from Deforestation and Forest Degradation tnc The Nature Conservancy unfccc United Nations Framework Convention on Climate Change mrv Monitoring, Reporting and Verification WWf World Wide Fund for Nature

27 Published by the Federal Ministry for Economic Cooperation and Development (BMZ), Division for development education and information Edited by BMZ Division for the Environment and Sustainable Use of Natural Resources Design BLOCK DESIGN Kommunikation & Werbung, Berlin Printed by Bonifatius Druck und Verlag, Paderborn Photo credits p. 1: First Light/F1online, p. 6/7: vario images, p. 9: GIZ/Klaus Schmitt, p. 11 and 16: version-foto.de/ralf Bäcker, p. 18/19: Weltbank, p. 20/21: blickwinkel/b. Trapp, p. 22: vario images, p. 25: version-foto.de/ralf Bäcker, p. 26: vario images As at August 2011 Addresses of the BMZ offices Bonn Office Dahlmannstraße Bonn Tel (0) Fax + 49 (0) Berlin Office Stresemannstraße Berlin Tel. +49 (0) Fax +49 (0) poststelle@bmz.bund.de