Internal Financing of Mitigation and Adaptation Actions

Transcription

1 Internal Financing of Mitigation and Adaptation Actions An Exposition to REDD+ Financing IGNFA, Dehradun 15 May 2014 Jagdish Kishwan Chief Advisor, Policy Wildlife Trust of India Former Chief Negotiator for REDD+, Government of India Former Director General, Indian Council of Forestry Research and Education

2 Organization of Presentation Adaptation and mitigation challenges NAPCC and individual missions Financial requirement for NAPCC implementation REDD+ progress in UNFCCC COPs REDD+ financing options REDD+: future options for India

3 Mitigation + Adaptation:Whose Responsibility? UNFCCC Countries (Annex 1 more than Non-Annex) National Government Industry Society Individual!!!!!!! Frugal lifestyle, use of CFL/LED, smart lights, no plastics, use of energy saving devices, renewables

4 Main Issue: Climate Change Development v/s emissions Energy and environmental sustainability Challenges Finance Regulation Technology Capacity Market imperfections Source: Environmental and Energy Sustainability: An Approach for India: McKinsey & Company, August 2009

5 Challenges of Mitigation and Adaptation Strategy and planning Money Technology Capacity Priority Intent

6 NATIONAL ACTION PLAN ON CLIMATE CHANGE (Released by PM in June 2008) Action Plan comprises 8 Missions National Solar Mission now JNNSM National Mission for Enhanced Energy Efficiency National Mission on Sustainable Habitat National Water Mission National Mission for Sustaining Himalayan Ecosystem National Mission for A Green India (GIM) National Mission for Sustainable Agriculture National Mission on Strategic Knowledge for Climate Change

7 1. National Solar Mission Now named as JNNSM (Approved by PM s Climate Change Council) Twin objectives to contribute to India s long term energy security as well as its ecological security Installed capacity of solar power generation to add up to 20,000 MW by 2022 (end of 13 th Five Year Plan) against MW at present Cabinet approved 1,100 MW of grid solar power and 200 MW capacity of off-grid solar applications

8 2. National Mission for Enhanced Energy Efficiency (NMEEE) (Approved by PM s Climate Change Council ) Expected to yield savings of 10,000 MW by Building on Energy Conservation Act 2001, plan focuses on 8 industries Thermal power, iron and steel, cement, fertilizers, textiles, aluminium, paper and pulp, chlor-alkali Mandating specific energy consumption decreases in large energy-consuming industries; companies to trade energysavings certificates (Perform Achieve and Trade) Mission seeks to upscale efforts to create a market worth Rs. 74,000 crores for energy efficiency Energy saving incentives, including reduced taxes on energy-

9 3. National Mission on Sustainable Habitat (Approved by PM s Climate Change Council) Energy efficiency as core component of urban planning Cities to be energy efficient and climate resilient; Extending existing Energy Conservation Building Code; A greater emphasis on urban waste management and recycling, including power production from waste; Strengthening enforcement of automotive fuel economy standards and using pricing measures to encourage purchase of efficient vehicles; and Incentives for use of public transportation

10 4. National Water Mission (Approved by PM's Climate Change Council on 28 May 2010) Water scarcity projected to worsen due to climate change, NAPCC sets a goal of 20% improvement in water use efficiency through pricing and other measures Massive peoples awareness movement in India for water conservation All water availability and use data to be put in public domain to sensitize citizens, local and State Governments for focused action on water conservation and augmentation

11 5. National Mission for Sustaining the Himalayan Ecosystem (Approved by PM s Climate Change Council on 26 October 2009) Himalayan glaciers major source of India s water supply projected to recede due to climate change Conserve biodiversity, forest cover, and other ecological values in Himalayas MoEF released Governance for Sustaining Himalayan Ecosystem: Guidelines and Best Practices (G-SHE)

12 6. National Mission for a Green India (GIM) (Approved by PM s Climate Change Council) Goals include afforestation of 10 million hectares of degraded forest lands and expanding forest cover from 23% to 33% of India s landmass

13 communities in face of climatic variability GIM aims at addressing climate change by enhancing carbon sinks in sustainably managed forests and other ecosystems enhancing resilience and ability of vulnerable species and ecosystems to adapt to changing climate enabling adaptation of forest dependant local

14 Carbon Capture potential of our forests India s forests are major sink of CO 2 Our estimates show that the annual CO 2 removals by India s forest and tree cover is enough to neutralize % of India s total GHG emissions This is equivalent to offsetting 100% emissions from all energy use in residential and transport sectors; or 40% of total emissions from agricultural sector. India s forest and tree cover a major mitigation resource serving India and the world (Kishwan et al, 2009)

15 7. National Mission for Sustainable Agriculture (Approved by PM s Climate Change Council) Support climate adaptation in agriculture through Development of climate-resilient crops Innovative agricultural practices Expansion of weather insurance mechanisms

16 8. National Mission on Strategic Knowledge for Climate Change (NMSKCC) Improve understanding of climate science, impacts and challenges Climate Science Research Fund for improved climate modeling, increased international collaboration Private sector investment to develop adaptation and mitigation technologies

17 Implementation of NAPCC Financial Requirements Preliminary estimates of Nodal Ministries suggest total requirement of Rs. 2,30,000 crore to implement 8 Missions Impossible to mobilize through budgetary resources alone Source: Planning Commission (2013)

18 Implementation of NAPCC: Financial Requirements (12 FYP) Mission JN National Solar Mission 4337 National Mission for Enhanced Energy Efficiency 3400 National Mission for Sustainable Habitat 1000 National Water mission - National Mission for Sustainable Himalayan Ecosystem 900 National Mission for a Green India FYP (Crore Rs) National Mission for Sustainable Agriculture National Mission on Strategic Knowledge for Climate Change - Total >40,000 Source: Planning Commission (2013)

19 Financial Requirements for NAPCC + Other Adaptation Measures Other adaptation measures for health, housing, migration + Rs 4,00,000 crore may be required Impossible to provide through budgetary route Innovative means- market, taxationlevy, incentives and rebate

20 Financial Requirements for NAPCC + Other Adaptation Measures Innovative means of financing Forest Sector CDM REDD+

21 REDD+ Progress of financing

22 COP-16 Cancun (2010): REDD+ Decisions 5 REDD+ activities defined and agreed RELs/RLs agreed as benchmarks 3 progressives phases of implementation recognizedpreparatory, demonstration, resultsbased actions Financing options wide open, no agreement or further movement

23 COP-17 Durban (2011): REDD+ Decisions Safeguards for rights of IPs/LCs and conservation of natural forests agreed Agreement on construction of RELs/RLs No agreement on National Forest Monitoring Systems and MRV, left for discussions at COP 18 (Doha) Agreement to continue work on financial options including public, private, market, non-market, fund-based mechanisms

24 COP-18 Doha (2012) Forestry Decisions Non-Carbon benefits Agreed on a work programme for 2013 to address: (a) Ways and means to transfer payments for results-based actions; (b) Ways to incentivize non-carbon benefits; Also to initiate work on methodological issues related to non-carbon benefits resulting from implementation of REDD+ activities

25 COP-19 Warsaw (2013): REDD+ COP REDD+ Decisions Negotiators at COP19 in Warsaw agreed on seven decisions relating to REDD+: Warsaw Framework for REDD Plus

26 Warsaw Framework for REDD+ 1. Results-based finance for full implementation of activities in Decision 1/CP.16, Paragraph 70 (REDD+) (Decision 9/CP.19) 2. Coordination of support for implementation of activities in relation to mitigation actions in forest sector by developing countries, including institutional arrangements (10/CP.19) Methodological guidance for activities relating to REDD+ 1. National forest monitoring systems (11/CP.19) 2. Measuring, Reporting and Verification (MRV) of REDD + activities (14/CP.19) 3. Technical assessment of Reference Emission levels/reference Levels submitted by Parties (13/CP.19) 4. Timing and frequency of submission of summary of information on how safeguards are addressed and respected (12/CP.19) 5. Addressing drivers of deforestation and forest degradation (15/CP.19) Source: VRS Rawat, ICFRE

27 Summary of Warsaw Framework for REDD+ Item Results-based finance for the full implementation of activities (Decision 9/CP.19) Actions (i) Results-based finance provided to developing countries to come from a variety of sources, public and private, bilateral and multilateral, including alternative sources; (ii)country Parties should provide most recent summary of information on how all REDD+ safeguards are addressed and respected. (iii)to establish information hub on UNFCCC website to publish information on REDD+ activities and results based payments.

28 Summary of Warsaw Framework for REDD+ Item Coordination of support for the implementation of activities by developing countries, including institutional arrangements (Decision 10/CP.19) Actions needed (i)redd+ developing country parties to designate a national REDD+ entity or focal point (ii)national entities or focal points may nominate their entities to obtain and receive results-based payments for full implementation of REDD+ activities

29 Summary of Warsaw Framework for REDD+ Item Measuring Reporting and Verification (MRV) of REDD plus (Decision 14/CP.19) Actions needed Activities to be consistent with guidance provided in decision 4/CP.15. Data and information to be transparent, and consistent with established forest reference levels. Data and information to be provided through biennial update reports.

30 Summary of Warsaw Framework for REDD+ Item Guidance and procedure for technical assessment of Reference Emission levels/ Reference Levels submitted by Parties (Decision 13/CP.19) Actions UNFCCC Secretariat to prepare a synthesis report on technical assessment process. Parties and relevant international organizations invited to support capacitybuilding to enable development and assessment of forest reference emission levels and/or forest reference levels.

31 Summary of Warsaw Framework for REDD+ Item National forest monitoring systems (Decision 11/CP.19) Actions Parties national forest monitoring systems for the monitoring and reporting of activities to take into account guidance provided in decision 4/CP.15 and most recent IPCC guidance and guidelines, as adopted or encouraged by COP

32 Summary of Warsaw Framework for REDD+ Item Timing and frequency of submission of summary of information on how safeguards are addressed and respected (Decision 12/CP.19) Actions (i) Parties should provide a summary of information on how all safeguards are being addressed and respected throughout implementation of REDD+ activities. (ii)information to be provided periodically and included in NATCOM, or communication channels agreed by COP. (iii)parties could start providing summary of information in their NATCOM or other communication channel on REDD+ performance.

33 Summary of Warsaw Framework for REDD+ Item Addressing drivers of deforestation and forest degradation (Decision 15/CP.19) Actions needed COP encourages Parties, organizations and private sector to take and continue action to address and reduce drivers of deforestation and forest degradation, and share the results of their work

34 What should India be doing? Develop a REDD strategy or action plan for REDD plus implementation Developing safeguards and system of Information flow on safeguards Need for capacity building Pilot/ Demonstration Projects on REDD plus Work on developing Reference Emission Levels/Reference Level for REDD plus Developing a transparent national system of MRV Reference Document for REDD+ in India

35 REDD+ Finance Required to support 3 Phases of REDD+ Implementation Preparatory Demonstration Results-based actions

36 REDD+ Finance: Requirement Preparatory Phase Small amount for policy development and capacity building Internal sources International organizations UN-REDD, FCPF, GIZ, USAID

37 REDD+ Finance: Requirement Demonstration Phase Small to moderate amount for execution of pilots or demo projects Internal sources (Schemes, State Budgets) Bilateral arrangements (Norway, Brazil, India) Measurement, carbon estimation International organizations UN-REDD, FCPF, GIZ, USAID Voluntary market (Gold Standard, Carbon Fix, Forest Stewardship Council)

38 REDD+ Finance: Requirement Results-based Phase Huge amounts required for creating alternatives to check drivers of deforestation and forest degradation national forest monitoring systems technical staff for REDD+ MRV, SIS financial REDD+ incentives supporting infrastructure

39 Results-based Phase: Sources External UNFCCC, bilateral (Norway) Internal REDD+ Finance: Solutions CAMPA Performance Achieve and Trade Scheme Private sector CSR

40 REDD+ Finance: Achievement Preparatory+Demonstration Phase Forest Plus Project- USAID Garo Hills Green Spine Project- IUCN- WLT 6 TERI Projects- details by Dr JV Sharma Voluntary market

41 REDD+ Finance: Achievement Results-based Phase

42 REDD+ Finance: Reality Options for India post COP 19» UNFCCC finance unlikely to be available in near future» Mobilize resources other than from UNFCCC» External Multilateral- WB, GEF, ADB, EU Bilateral- JICA, USAID, GTZ, Norway Project level- USAID, FCPF, UN-REDD, Voluntary Market» Internal Finance Commission Awards, ACA (PC)

43 Future: Multi-benefit Innovative Voluntary Projects Essentials Innovation and partnership Combine carbon benefits and other possible benefits like health How to commodify health benefits MRV of health benefits/credits on same lines as VERs/CERs Create market for health credits Possibility for water, biodiversity, food, environmental credits???

44 REDD+ Finance: Conclusion UNFCCC financing to take time, uncertainty of quantum Countries need to go for alternative options Internal and bilateral financing good options Private sector a good source

45 Future importance of REDD+ for India 2015 new climate change agreement in UNFCCC Annex I and Non-Annex countries to have commitments post 2020 India too to shoulder commitments; e.g., reduction in EI by 20-25% by 2025 REDD+ potential option for meeting EI commitment (>5% REDD+ own contribution) Finances: GIM, emitters pay principle, PAT expanded to include A&R as admissible action Future: REDD+ experience leading to realization of blue carbon sequestration potential

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