RewardingtheUplandPoorfor EnvironmentalServices:

LessonsandChallengesfor REDD+
RodelD.Lasco
WorldAgroforestryCentre(ICRAF)

WhatisRUPES?
AnIFADfundedprojectsince2003 WithlearningsitesinBakun,Kalahan,Bukidon Coveringwaterandcarbonpayments Inthistalk,focusoncarbonpayments

Sunderland, 2011

1.Transactioncosts:lessonsfromtheCDM
Basefinancingfortree plantinglacking Transactioncost significant(>US$ 200,000) Carboncreditsnot sufficienttocovertotal costofproject NoCDMprojecthas beenapprovedinthe Philippines
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Example:5,000hainthePhilippines
Annual project cost (2001-2025) Total= US$ 3.4 M
50,000,000 45,000,000 40,000,000 35,000,000 30,000,000

US$

25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year
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Total cost of each project component, in US$ Total cost= US$ 3.4 M
Reforestation Agroforestry Short rotation

242,988 423,170

2,616,081

Estimated Income from Carbon Credits at US$ 15/tC

12,000,000

10,000,000

8,000,000

1CP 2CP 3CP 4CP

US$

6,000,000

4,000,000

Cost

2,000,000

0
HS REFO HS AF HS Total MS REFO MS AF MS Total LS REFO LS AF LS Total

Can be made profitable by Including harvest from products like wood and fruits!
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2.Measuringandmonitoringof carbonbenefits(MRV)
Posehugechallengesespeciallyforforest degradation. difficulttomonitorbecauseavailabledataare limited,highlyuncertain,andnotreadily detectablefromexistingsatellites TheIPCCapproachcanbeused

Stock-difference approach

Gain-loss approach

3.Equitablesharingofbenefits
Carbonpaymentmustbesharedfairly especiallytolocalfarmersandlandmangers Withlittleexperienceinhandlingcarbon payments,therearefewmodelstolearnfrom Smallfarmerscouldbeeasedout

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HowaREDDmechanismmaylooklike.

11 Angelsen and Wertz-Kanounnikof, 2008

4.Protectingsmallfarmersand indigenouspeoplesrights
Therightsoflocalandindigenouspeoplesmaybe threatenedunderREDD. TherightsofIndigenousPeoplesnecessaryfor successofREDD

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5.Governance
Theabilityofnationalandlocalinstitutionsto managetheREDDprocessneedstobe addressedthroughacapacitybuilding program.

13

Corruption:Aneverpresentdanger

*Calculated using, corruption, voice and accountability and force of law indices

Sunder land, 2011

6.Promotingcobenefits
Forestsproducemanyothergoodsand servicesotherthancarbonwhichmustalsobe protected. Localcobenefitsegwatershedprotection, biodiversityconservation

15

GlobalCstoragebybiome

http://www.carbon-biodiversity.net/Issues/CarbonStorage

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Globalplantdiversity

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7.Multiplestakeholders
Asaresultofthepreceding,therearemany stakeholdersconcernedwithhowforestsare managed. Egsmall/largefarmers,hydropower, irrigation,woodindustry,(eco)tourism Theirinterestswillhavetobeconsideredin REDDimplementation.

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CIFOR Workshop (Castella, 2011)

workshop of scientists with extensive knowledge about

9 target landscapes, Priority countries for UN-REDD Programme and/or the World Bank Forest Carbon Partnership Facility

Pro-Poor REDD+ Requirements (Castella, 2011)

REDD credit buyers Voluntary markets

Landscape carbon

value & opportunity costs

Rewards

Negotiations

Government facilitator

State facilitation of

REDD+ implementation at landscape level

Other stakeholders: forest stewards, agribusiness, verifiers

Community / social organisations Benefit sharing Individuals / local community Property rights

Land tenure and carbon

rights for local people

Rewards and incentives

for local people

Strength of local

Monitoring Carbon landscapes

organisations to represent local people

InSummary
REDD+couldprovidefinancingforforest conservationandmanagement Butdontholdyourbreath Itmaybeyearsbeforeanysignificant(?)funds flow!

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Thankyou!

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