HCS Convergence Agreement
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1 4 Nvember 2016 HCS Cnvergence Agreement This HCS Cnvergence Agreement is the utcme f discussins cnducted by the High Carbn Stck (HCS) Cnvergence Wrking Grup (the Grup) frm Octber 2015 thrugh Nvember The Grup members cmmitted t wrk tgether t develp a single, cherent set f rules fr implementatin f cmpanies cmmitments t n defrestatin in their palm il peratins and supply chains. The grup fcused n develping a single HCS methdlgy fr applicatin t il palm plantatins in fragmented landscapes in mist trpical frest. The Grup encurages the HCSA Steering Grup t cnsider adptin f this agreement fr applicatin t ther cmmdities, including the pssible adaptatin and applicatin t ther bimes. The fllwing rganizatins participated in the Grup prcess and are endrsing this Agreement. They were supprted in this prcess by the chairs f the HCSA Steering Grup and the HCS+ Science Study. 1 Asian Agri Cargill Frest Peples Prgramme Glden Agri-Resurces Greenpeace IOI KLK Musim Mas Rainfrest Actin Netwrk Sime Darby TFT Unilever Unin f Cncerned Scientists Wilmar Internatinal WWF Jim Leape chaired, with prcess assistance frm Meridian Institute and technical assistance frm Prfrest. The Grup agreed three gals fr the Cnvergence prcess: Cnsensus n the fundamental elements f an HCS methdlgy, including frest stratificatin, belw-grund carbn, decisin-making in "yung regenerating frest" within fragmented landscapes, and scial requirements; A pathway fr institutinal integratin f HCS with existing systems 2, with apprpriate gvernance; and A radmap fr reslving utstanding issues thrugh cllabrative prcess and, as needed, field trials, including: Appraches t estimating and managing the verall carbn impacts f land-use 1 Dr. Jhn Raisn, wh chaired the HCS Science Study, participated in the Cnvergence Wrking Grup until Octber Specifically HCV and FPIC 1
2 4 Nvember 2016 decisins; Rules fr applying an HCS methdlgy in high frest cver regins; Applicatin f the HCS methdlgy by small prducers and cmmunities; and Assuring prtectin f HCS frests tgether with ther cnservatin areas It was als recgnized that the HCS methdlgy will cntinue t evlve ver time. Therefre, the Grup agreed t pursue a cnvergence agreement that cvers the fundamental elements f HCS as well as a prcess fr addressing these utstanding issues in an efficient and effective manner. The Fundamental Elements f HCS The Grup recgnized that the HCS Apprach and the HCS Science Study were cnsistent in many areas. Bth called fr rigrus implementatin f HCV identificatin and prtectin, and rbust Free, Prir and Infrmed Cnsent (FPIC) prcesses fr the recgnitin f rights and interests f lcal cmmunities. Bth required prtectin f primary frests, frests subjected t mderate levels f lgging disturbance, and lder secndary frests, and bth priritized the allcatin f lw-carbn scrub areas and pen land fr any prpsed palm il plantatin develpment. It was agreed that cmpanies will prtect peatlands, HCV areas and HCS frests within their cncessins and tgether with ther stakehlders, wrk with rights hlders t identify and prtect such areas in adjacent landscapes. Cmpanies shuld nt excise peatlands, HCV areas and HCS frests frm their cncessins, unless it is t achieve their prtectin. The Grup participants readily agreed n the applicatin f the patch analysis develped by the HCS Apprach and n the use f LiDAR, as an acceptable ptin fr deriving bimass maps. Hwever, there were several imprtant issues that the Grup needed t address: 1. Scial requirements As nted abve, all the Grup participants agree n the imprtance f rbust applicatin f scial requirements fr any plantatin develpment. We recgnize imprtant challenges, hwever, including assuring effective implementatin f scial requirements by cmpanies f all sizes; addressing scial requirements in the cntext f the landscape and the full range f land uses; and assuring the engagement f and incentive systems fr cmmunity management f lands set aside fr smallhlders and cmmunities that will be needed t secure lng-term frest prtectin. There was als agreement n the need t imprve measures t ensure accuntability and t handle cmplaints in an effective and timely manner t avid cnflicts. Over the past year, a subgrup f the Grup has wrked t develp guidance n scial requirements. With the input frm a stakehlder wrkshp in Octber 2016, the draft guidance will then be field tested and further develped thrugh interviews with stakehlders. The gal is t have a revised and final guidance by the end f
3 4 Nvember Decisins abut Yung Regenerating Frest The Cnvergence Wrking Grup recgnized that Yung Regenerating Frest (YRF) patches may be imprtant t cnserve based n varius envirnmental values. The Grup set ut t create a cnverged apprach that prtects thse values and cmmunity rights and livelihds, and prvides a path fr develpment that benefits a brad range f stakehlders, within the cnstraints f n defrestatin cmmitments. The gal was t create a slutin that is bth scientifically credible and practical in applicatin, fcused n scial and eclgical viability as well as ptimizing fr cnservatin, livelihds and develpment. The Grup agrees that decisins abut YRF shuld: Seek FPIC f cmmunities fllwing scial requirements guidance, including participatry and cmmunity land use mapping and rbust respect fr cmmunity rights and livelihds; Identify and prtect all HCV areas. Identify and prtect all peatlands; and Apply HCSA frest patch analysis t all frest strata, including YRF. Decisins abut YRF shuld then be guided by the Decisin Tree in the HCSA Tlkit. The Decisin Tree has been revised, as utlined belw, t reflect the Cnvergence agreement. 1. Under the Decisin Tree, all patches with cre areas greater than 100 hectares are high pririty patches and must be prtected 2. The revised Decisin Tree allws flexibility fr give and take in decisin-making abut lw (up t 10 ha cre ) and medium ( ha cre and subject t the steps prir t the give and take prcess) pririty patches, in ways that maximize eclgical and scial viability, 3 and ptimize 4 cnservatin, develpment and livelihd utcmes. The Decisin Tree directs that such give and take decisins shuld: Be made in cllabratin with n site and adjacent cmmunities and cncessin hlders, and lcal gvernments, and with the cnsent f the custmary landwners; Prvide demnstrable psitive benefits fr cnservatin, cnsidering equivalence and habitat quality f the areas being exchanged, permanence f prtectin with lcal stakehlders, and the cmmunity cnsent prcess 3 Scial Viability: Frest patches are integrated and harmnized with cmmunity current and future land use, in particular farmland fr fd security; lcal land and use rights have been respected thrugh FPIC; and risks t clearance have been mitigated via c-management and incentives/benefits 4 This idea f ptimizatin riginated frm the bservatin that in many cases there will be scpe fr creating mre practical blcks fr plantatin develpment and, at same time, mre cherent and rbust cnservatin blcks. This flexibility was nt intended t require a brad ecnmic develpment calculus but rather t get t a mre sensible landscape. 3
4 4 Nvember 2016 Cnsider frest patches within the cncessin and in adjacent areas 5 ; and Ensure restratin/rehabilitatin f secure and additinal scrub, pen land r ther lw pririty areas, subject t clearly specified safeguards, in exchange fr develpment f areas f lw and medium pririty YRF. 3. Carbn The Grup has cncluded that carbn stck estimates alne shuld nt be the primary basis fr defining r making decisins abut HCS frest. Carbn stck measurements shuld be used t infrm delineatin f vegetatin classes and a stratificatin utput which can then be assessed fr its eclgical viability and livelihd values, as per the HCSA tlkit. The Grup recgnizes, hwever, that reliable carbn estimates are imprtant fr many ther uses, including: As a basis fr enabling gvernment engagement in discurse n HCS; Translating HCSA vegetatin strata int natinally relevant strata classificatins; Determining land use impacts n sil carbn; Mnitring, reprting and verificatin; Linking frest prtectin t natinal climate cmmitments; and Securing finance fr cmmunities and cnservatin. Fr thse reasns, the Grup has agreed that the HCSA Tlkit shuld be revised t include a new chapter n carbn that clarifies the rle f carbn in the methdlgy and prvides clear guidance n the scpe f its applicatin: All cmpanies shuld aim t adpt carbn estimatin, measurement and accunting prcedures that: Are cnsistent with and cmplement natinal appraches n frest and belwgrund carbn measurement/accunting and help imprve them; Supprt natinal greenhuse gas emissin reductin strategies and Natinally Determined Cntributin cmmitments; Are cnsistent with RSPO New Planting Prcedures, RSPO criteria 7.8 and the Palm GHG tl Can cntribute t land use planning and decisin making cnsideratins and prcesses; and Use transparent and cmparable mnitring, reprting and verificatin systems. Sil carbn in additin t that fund in peatlands shuld be cnsidered as part f land use decisins. Organic sils shuld be included as an imprtant cmpnent f greenhuse gas calculatins. A credible, practical, and science-based methdlgy is being sught. 5 The specific definitin f adjacent areas in this cntext is yet t be finalized. Hwever, Cnvergence Wrking Grup participants agree that it shuld include achieving HCS and HCV cnservatin in cllabratin with adjacent cmmunities, cncessin hlders and lcal gvernments. 4
5 4 Nvember 2016 Abve-grund carbn stck measurement shuld be used t infrm a stratificatin utput which is eclgically and natinally relevant and can help translate HCSA stratificatin t natinally relevant strata. Abve-grund carbn stcks can be determined thrugh the use f LiDAR r ptical datasets in cmbinatin with bimass inventries. Optins amng existing and new climate finance appraches that may be used fr the purpses f cmmunity develpment, frest prtectin, rehabilitatin/restratin and/r cnservatin shuld be explred, recgnizing the cncerns that many have with the pssible negative implicatins including the transfer f carbn rights and trading between bitic and fssil carbn. The Path Frward We have agreed n the fundamental elements f a cnverged HCS methdlgy, but this apprach must be implemented and there are several imprtant utstanding issues that still need t be addressed. The agreed-upn next steps are as fllws: 1. Implementatin f Cnvergence Decisins Our decisins will be reflected in the revised HCSA Tlkit, which is currently being prepared and is expected t be cmpleted by early Specifically: The use f LiDAR, as an acceptable ptin fr deriving bimass maps is included in the vegetatin stratificatin sectin. The rle f carbn in the methdlgy is addressed in a new Chapter Scial requirements are als addressed, but as described abve, will be further elabrated in the guidance n scial requirements t be cmpleted in 2017 The cnverged apprach t decisin-making in YRF will be reflected in the revised Tlkit s Decisin Tree Our decisins will be reflected in the plicies and psitins f the rganizatins endrsing this agreement and the revised HCSA tlkit will be implemented by the cmpanies when it is finalized. 2. Reslutin f Outstanding Issues As nted abve, there were several vitally imprtant issues that were beynd the scpe f this prcess. These issues are being addressed as fllws: A subgrup f the Grup is develping guidance n scial requirements. They expect t cmplete their wrk by the end f Several wrking grups, cnvened under the auspices f HCSA but with the invited participatin f all the Grup members, are addressing: Integratin f HCS with HCV assessments and FPIC prcesses; Applicatin f HCS in high frest cver landscapes; Applicatin f HCS by smallhlders and cmmunities; 5
6 4 Nvember 2016 Develping best practices fr ensuring lng-term prtectin f HCS frests tgether with ther cnservatin areas; Integratin f the functin and gvernance f the HCSA Steering Grup and the HCV Resurce Netwrk t further increase efficiency and effectiveness in the field. The new prvisins in the revised HCSA Tlkit (particularly the revised Decisin Tree), as well as the scial requirements guidance and the Technical Integratin Manual, will need t be tested in field trials. It was agreed that verall gvernance fr HCS, and versight f the fllw-up n this Cnvergence agreement implementatin in the revised Tlkit, Wrking Grups t address unreslved issues, and field trials will be with the HCSA Steering Grup. All participating rganizatins that are nt currently members f the HCSA Steering Grup will apply fr membership. In additin, the Grup recmmends that a new name be sught fr the cnverged HCS methdlgy and in the interim it will be referred t as HCSA. THE FOLLOWING ORGANIZATIONS HAVE REACHED THIS HCS CONVERGENCE AGREEMENT: Asian Agri Cargill Frest Peples Prgramme Glden Agri-Resurces Greenpeace IOI Crpratin Berhad KLK Rainfrest Actin Netwrk Sime Darby TFT Unilever Unin f Cncerned Scientists Wilmar Internatinal WWF Musim Mas This agreement has als been received and endrsed by Executive Cmmittee f the HCSA. Nvember 4, 2016 Bangkk, Thailand 6
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