REDD in COPENHAGEN: SOME REDD in COPENHAGEN: SOME

KEY ISSUESKEY ISSUES

Richard McNally

COP 15 Delegates Retreat, Hoa

Binh, 23/11/2009

Presentation OutlinePresentation Outline

1.1. BackgroundBackground

2.2. REDD Policy: Key Issues for CopenhagenREDD Policy: Key Issues for Copenhagen

BACKGROUNDBACKGROUND

Forest and carbonForest and carbon

• Not in KP; growing pressure to include post KP Not in KP; growing pressure to include post KP ((CRN, Stern Review etcCRN, Stern Review etc))

• Bali Action Plan Bali Action Plan COP 13COP 13 [2007] includes REDD as [2007] includes REDD as a potential option to reach climate goalsa potential option to reach climate goals

• COP 15COP 15 decides on REDD in post Kyoto Protocol? decides on REDD in post Kyoto Protocol?• Non Paper 39 used as negotiating text at COP 15Non Paper 39 used as negotiating text at COP 15• REDD part of the REDD part of the Climate Action BillClimate Action Bill in the US in the US• Part of Voluntary market Part of Voluntary market VCS AFOLUVCS AFOLU guidelines; guidelines;

projects ongoingprojects ongoing

Where are we on REDD?Where are we on REDD?

REDD POLICY: SOME KEY ISSUES AT REDD POLICY: SOME KEY ISSUES AT COP 15COP 15

1.1. Scope of the agreement: RED, REDD, REDD + Scope of the agreement: RED, REDD, REDD +

??

2.2. Introducing and Funding REDD (+)Introducing and Funding REDD (+)

3.3. Measuring, Reporting and VerificationMeasuring, Reporting and Verification

4.4. SafeguardsSafeguards

Non Paper 39: Option 1/2Non Paper 39: Option 1/2include [reducing emissions from deforestation andinclude [reducing emissions from deforestation and

forest degradation [,maintaining existing carbonforest degradation [,maintaining existing carbon

stocks and enhancing removals] [or increasingstocks and enhancing removals] [or increasing

forest cover through afforestation andforest cover through afforestation and

reforestation], [while promoting] [enhancement ofreforestation], [while promoting] [enhancement of

carbon stocks through [sustainable forest [andcarbon stocks through [sustainable forest [and

land] management] [sustainable management ofland] management] [sustainable management of

forests].]forests].]

1. The Scope1. The Scope

• Reduced Emissions from Reduced Emissions from deforestationdeforestation [support [support by Brazil etc] ‘RED’by Brazil etc] ‘RED’

• Also include Also include degradationdegradation; harder to measure but ; harder to measure but critical to many countries; general supportcritical to many countries; general support

• REDD + [includesREDD + [includes conservationconservation, , sustainable sustainable forest managementforest management, , enhancement of forest enhancement of forest stocksstocks]]

• GGeneral support behind REDD +eneral support behind REDD + to encourage all to encourage all countries involved – stop countries involved – stop international leakageinternational leakage

• Issue of defn [e.g sustainable forest management Issue of defn [e.g sustainable forest management vs sustainable management of forests]vs sustainable management of forests]

What does REDD+ include?What does REDD+ include?

Implications for Viet Nam

• Relatively low levels of net Relatively low levels of net deforestation (US$58m p.a) deforestation (US$58m p.a)

• Gross deforestation Gross deforestation (US$145m p.a)(US$145m p.a)

• High levels of forest High levels of forest degradation (REDD)degradation (REDD)

• High forest cover; degraded High forest cover; degraded land favours REDD ‘+’land favours REDD ‘+’

• Sub national/ nestedSub national/ nested approachesapproaches? gross levelsgross levels

General support for a Phased Approach: 3 Phases:General support for a Phased Approach: 3 Phases:

Phase 1Phase 1: National REDD strategy development, : National REDD strategy development, including national dialogue, institutional including national dialogue, institutional strengthening, and demonstration activities – strengthening, and demonstration activities – this is happening now!!!!! (e.g. REDD Working this is happening now!!!!! (e.g. REDD Working Groups)Groups)

Phase 2Phase 2: Implementation of policies and measures : Implementation of policies and measures (PAMs) proposed in those national REDD (PAMs) proposed in those national REDD strategiesstrategies

2. Implementing and Funding REDD +2. Implementing and Funding REDD +

REDD + ready

Estimate of Readiness costs!!!!!Estimate of Readiness costs!!!!!

• Increased voluntary contributions to support Increased voluntary contributions to support Phase 1Phase 1 [e.g. FCPF and UN REDD initiatives] [e.g. FCPF and UN REDD initiatives]

• Some sort of Readiness Fund established for Some sort of Readiness Fund established for Phase IIPhase II (estimate need 2 rising 10bn/year) (estimate need 2 rising 10bn/year)

Readiness Funding: Non Paper 39 Readiness Funding: Non Paper 39

[… funded through … [market-linked revenues],[… funded through … [market-linked revenues],

[innovative funding sources, Including auctioning of[innovative funding sources, Including auctioning of

national emissions trading allowances or of assigned amountnational emissions trading allowances or of assigned amount

units at international level, and penalties or fines for non –units at international level, and penalties or fines for non –

compliance of developed country Parties with their emissioncompliance of developed country Parties with their emission

reduction and financial resources commitments]. Thesereduction and financial resources commitments]. These

funds shall be [new and additional to ODA,] [complementaryfunds shall be [new and additional to ODA,] [complementary

to GEF, and bilateral and multilateral funding].]to GEF, and bilateral and multilateral funding].]

Option 2Option 2

[existing funds and institutions, including multilateral, [existing funds and institutions, including multilateral,

bilateral and domestic arrangements].bilateral and domestic arrangements].

Phase 3Phase 3: Payment for performance on the basis of : Payment for performance on the basis of quantified forest emissions and removals against quantified forest emissions and removals against agreed reference levels which are agreed reference levels which are MeasuredMeasured, , ReportedReported and and VerifiedVerified (MRV) (MRV)

• Not clear on Not clear on FundFund versus sold on versus sold on Carbon MarketCarbon Market (concerns over flooding), (concerns over flooding), dual market, dual market, or some or some otherother combination combination

• Non Paper 18Non Paper 18 to to Non Paper 39Non Paper 39 removal of markets removal of markets as stand alone option? Likely some combinationas stand alone option? Likely some combination

• Lack clarity on financing for conservation and Lack clarity on financing for conservation and maintenance of carbon stocksmaintenance of carbon stocks

3. Measuring, Reporting and 3. Measuring, Reporting and VerificationVerification

• To measure it necessary to set To measure it necessary to set Baseline/ Baseline/ Reference Emissions Level Reference Emissions Level

• REL: critical issue to determine potential REL: critical issue to determine potential carbon revenues and interest from Partiescarbon revenues and interest from Parties

• Preference: based on national historical Preference: based on national historical reference period of past emissions – reference period of past emissions – deforestation/forest deg. net levels not so deforestation/forest deg. net levels not so good for VNgood for VN

Correction/development adjustment Correction/development adjustment

factor? factor? • Inclusion correction Inclusion correction

factor to reflect national factor to reflect national

circumstances?circumstances?• E.g. historically low E.g. historically low

deforestation and forest deforestation and forest

degradation, forest degradation, forest

transition, capacitiestransition, capacities• In Viet Nam the end of In Viet Nam the end of

661 program?661 program?• Determined in SBSTADetermined in SBSTA

ForestForest transitiontransitioncurvecurve

100 %

time

Forest area

0 %

Gabon Surinam

Bolivia, Indonesia Cameroon

Lao

India, Bangaldesh

Stabilization

ChinaCosta Rica

Vietnam

Source: Conrad (2007), pres @ SBSTA 26

REDD and NAMAREDD and NAMA

• ……. [and must be consistent with the overall . [and must be consistent with the overall approaches to MRV of Nationally Appropriate approaches to MRV of Nationally Appropriate Mitigation ActionsMitigation Actions]]

• Move towards inclusion in NAMAs/NAMA Move towards inclusion in NAMAs/NAMA registry? implications for financing, registry? implications for financing, reporting???reporting???

• Support for (e.g. US, Brazil and EU) and Support for (e.g. US, Brazil and EU) and against (many tropical forest countries)against (many tropical forest countries)

Institutional arrangementsInstitutional arrangements• [Shall o[Shall operate under the authority and guidance perate under the authority and guidance

of, and be fully accountable to, the COP] of, and be fully accountable to, the COP] • Establish regional and national capacity-Establish regional and national capacity-

building in developing country Parties on building in developing country Parties on MRVMRV

• COP will establish technical/expert? panels COP will establish technical/expert? panels for MRVerificationfor MRVerification

4. Safeguards – growing contention4. Safeguards – growing contention

(a) Ensure that non-permanence is addressed;(a) Ensure that non-permanence is addressed;

(b) Ensure that necessary actions are taken to (b) Ensure that necessary actions are taken to

[avoid[avoid

leakage] [reduce leakage as much as leakage] [reduce leakage as much as

possible];possible];

(c)(c) [Promote] transparent forest governance [Promote] transparent forest governance

structures and accessible support structures and accessible support

mechanisms, taking into account national mechanisms, taking into account national

legislation and sovereigntylegislation and sovereignty

(e) In accordance with relevant international (e) In accordance with relevant international

agreements[, such as the UN Declaration on the agreements[, such as the UN Declaration on the

Rights of Indigenous Peoples,] and taking into Rights of Indigenous Peoples,] and taking into

account national circumstances and legislation, account national circumstances and legislation,

respect the knowledge and rights of indigenous respect the knowledge and rights of indigenous

peoples[, including their free, prior and peoples[, including their free, prior and

informed consent,] and members of local informed consent,] and members of local

communities and promote the full and effective communities and promote the full and effective

participation…..participation…..

Rights of indigenous people/local communitiesRights of indigenous people/local communities

(f) [Promote] actions that are consistent with the (f) [Promote] actions that are consistent with the

conservation of biological diversity [, and do not conservation of biological diversity [, and do not

provide incentives for conversion of natural forests][, provide incentives for conversion of natural forests][,

including safeguards on the conversion of natural including safeguards on the conversion of natural

forests] and enhance other social and environmental forests] and enhance other social and environmental

benefits[, including [environmental] [ecosystem] benefits[, including [environmental] [ecosystem]

services], complementary to the aims and objectives services], complementary to the aims and objectives

of relevant international conventions and agreements.of relevant international conventions and agreements.

• Lack of monitoring of safeguardsLack of monitoring of safeguards

Non conversion of natural forestsNon conversion of natural forests

• In Copenhagen 8In Copenhagen 8thth till 17 till 17thth

• Available any time to VN delegation (Available any time to VN delegation (

rmcnally07@gmail.com))

Two EventsTwo Events: : • Forest Day: Co Host for governance and Forest Day: Co Host for governance and

institutional capacity- Dr Cuong speakinginstitutional capacity- Dr Cuong speaking• Forest Day: Financing Event initial findingsForest Day: Financing Event initial findings• Side Event on CDM and small scale projects with Side Event on CDM and small scale projects with

Practical ActionPractical Action

SNV Viet NamSNV Viet Nam