Transcript Trading Mekong countries` forests for carbon

Trading forests for carbon
Should you be concerned about Mekong
countries’ REDD proposals to the World Bank?
Jelson Garcia, Asia Program Manager, Bank Information Center
Overview
I. Assumptions: Why REDD and how come the World
Bank plays a role in it?
II. Governance: The FCPF and how is it structured?
How are REDD proposals developed and decided in
the Bank?
III. Trends and issues: What are the key issues with
REDD?
• The case of Indonesia and Guyana REDD proposals
• Implications of REDD proposals to Mekong forests
Spirit ceremony. Pursat, Cambodia. January 2005. World Rainforest Movement
Assumptions: Why REDD?
• Proponents: Keep your forests intact and you’ll be rewarded!
Forest s have a role in mitigating climate change; they capture &
store carbon
• 2007 Stern Review: deforestation measures be included in the
post-2012 commitments under UNFCCC
• A proposal to discourage deforestation and forest degradation
taken up at the CoP to the UNFCC in Bali (CoP-13)
• Only the Bali Action Plan has so far the agreed text on REDD:
“Policy approaches and positive incentives on issues relating to reducing emissions from deforestation and
forest degradation in developing countries; and the role of conservation, sustainable management of forests
and enhancement of forest carbon stocks in developing countries”.
• An Agreement on REDD planned at CoP-15 in Copenhagen
How is REDD being funded?
• Carbon trading, financing and mixing the two
• Market-based approach: because market forces drive forest
destruction for crop, plantation and industrial expansion,
cattle ranching , we need to create market signals that
keeping forests is more profitable than cutting them. Markets
(developed countries) give (nations with large forests)
financial incentives by conserving their forests in exchange of
REDD credits.
• Critique: it doesn’t stop polluting countries and companies
from burning fossils! REDD used as an excuse not to reduce
emissions. They pass the burden of mitigating climate change
to developing countries in exchange of money incentives
How is REDD being funded?
Why is the World Bank involved?
• Trustee/Administrator/Implementing Agency
• Carbon Market Facilitator (It’s been driving carbon
trading for years through its Carbon Finance Unit – to
reduce the risks for private investors)
• Carbon Market Innovator (PCF/FCPC)
• Carbon Market Broker (Donor funds with developing country
projects for JI/CDM)
• Carbon Market Aggregator
• Carbon Market Stabilizer (CIF)
• Vehicle for large Climate $ outside of UNFCCC
• Playing off US v. Japan v EU v G-77
• Financial Bridge to post-Kyoto Regime
Why is the World Bank involved?
• Knowledge Bank
•
•
•
•
Selling the market mechanisms
Expert on climate finance architecture
Expert on climate-development relationship
Building borrower capacity on how to get carbon revenue
stream
• Political Player in the UNFCCC negotiations
• Not just carbon finance, but Adaptation
• Alliance with South to get more $ (additional resources)
• Deforestation Rules: REDD/FCPC
Why is the World Bank involved?
• They’ve been very nimble and very smart
• CIF governance structure
• They’re perfectly positioned to dominate discussion and
implementation of future climate financial architecture
• Their behavior/approach/ideology in climate change-related
projects and funding is no better than in any other area
How is REDD proposal developed and
how is it decided in the Bank?
• The Forest Carbon Partnership Facility: assist developing
countries to prepare in bringing forest carbon stocks into an
international carbon market. Run by Management Team
(FMT); Technical Advisory Panel (TAP) reviews R-Plan; REDD
decided by the Program Committee (PC);. How?
• Develop a Readiness Plan (R-Plan), a document that outlines
steps and ‘minimum requirements’ for a country to achieve
‘Readiness’. The R-Plan must contain a completed:
• ‘consultation and outreach plan’
• a ‘Land use, Forest Policy and Governance Quick Assessment.’
• detailed or outline terms of reference (TORS) for, inter alia, the
establishment of a ‘National REDD working Group’, a risk
assessment, a national REDD Strategy, a REDD Implementation
Framework and also TORs for social and environmental impact
assessment of the REDD strategy.
How is REDD proposal developed and
how is it decided in the Bank?
• R-Plan Implementation: Once approved, an R-Plan is
expected to be executed over two or three years to provide
a “Readiness Package” that includes a:
• National REDD Strategy and REDD implementation
framework that has been prepared and vetted through a
multi-stakeholder consultation process;
• Completed design for a national REDD monitoring,
reporting and verification system
• A national baseline (or reference scenario) for
deforestation rates – that has been adopted and
published
What can a country access if its R-PP is
approved?
Timeline for Mekong country R-PPs
Trends and Issues
• 25 R-PINs submitted; Panama and Guyana R-Plan approved;
Indonesia temporarily disapproved
• In Mekong countries submitted their R-PIN:
• Thailand
• Lao PDR
• Cambodia
• Vietnam
• Lower Mekong REDD
Trends and Issues
• 25 R-PINs submitted; Panama and Guyana R-Plan approved;
Indonesia temporarily disapproved
• In Mekong countries submitted their R-PIN:
• Thailand
• Lao PDR
• Cambodia
• Vietnam
• Lower Mekong REDD
Key issues emerging: the Indonesia
and Guyana R-Plan
• Tenure security: Overlooks critical land tenure issues: unresolved
territorial rights claims of indigenous peoples, land tenure
insecurity of forest-dependent people, resource conflicts
• Rights: Fails to comply with international obligations in relation to
human rights, inc. UNDRIP, FPIC
• Governance: Design and implementation strategy highly nontransparent and exclusive; lack of proper assessment of forest
governance and alignment with national forest/land policies
• Equity: who owns carbon, who gets the benefits, who gets
marginalized?
• Accounting: how much carbon is stored and captured?
• Accountability: Compliance with safeguard policies
• No clear plans to address deforestation and degradation caused
by mining and industrial logging concessions
• others
Some strategic points to consider in REDD
advocacy
• Collectively analyze the content, governance, scope and
spirit of the REDD proposal to develop shared and peoplebased position, strong set of arguments and proposition
• Engage with the key government ministry (and other input
providers) that leads the design of the R-PP
• Link with the FCPF decision-making body, i.e. the Participant
Committee, to influence their ‘country’ position.
• Link with the NGO Observer to get the latest intelligence on
the state-of-play, possible allies, as well as the decisionmaking timeline…for timely and informed action.
• Media, others…?