The role of REDD+

1. The role of REDD+ Patricia Gorin, FAO Rome Vientiane, 30 Aug 2011

2. Content • Context and Definitions of REDD+ • Importance of REDD+ for UNCCD & SLM • REDD+ potential worldwide and for drylands • REDD+ eligibility in the carbon markets & existing projects • REDD+ in the international negotiation arena • Drivers ofdeforestationanddegradation • Phases and financing REDD+

3. Content • Context and Definitions of REDD+ • Importance of REDD+ for UNCCD & SLM • REDD+ potential worldwide and for drylands • REDD+ eligibility in the carbon markets & existing projects • REDD+ in the international negotiation arena • Drivers ofdeforestationanddegradation • Phases and financing REDD+

4. What is REDD+? Agriculture? Other land-use types? Conservation Sustainable Management of Forests Enhancement of Forest Carbon Stocks AFOLU REDD+ Reducing Emissions from Forest Degradation REDD Reducing Emissions from Deforestation in Developing Countries

5. has been long discussed in the definition of CDM rules already, but came back into discussions in 2005 now back on all agendas, on the road to be included into post 2012 UNFCCC measures Why is REDD+ important? Tropical Deforestation is not covered by the current climate regime 13 million ha per year is deforested contributing up to 17% of global emissions The Deforestation is largest source of emissions in the developing world (2nd largest source after fossil fuel)

6. REDD concept Red = baseline, emission level without project Project start Baseline = Business as Usual Scenario, Scenario in the absence of the project

7. UN-REDD (UNDP-UNEP-FAO) Program $ 112.5 M REDD+ Strategy work areas: 1 2 3 4 5 6

8. Content • Context and Definitions of REDD+ • Importance of REDD+ for UNCCD & SLM • REDD+ potential worldwide and for drylands • REDD+ eligibility in the carbon markets & existing projects • REDD+ in the international negotiation arena • Drivers ofdeforestationanddegradation • Phases and financing REDD+

9. Mandate of the UNCCD: to combat land degradation and desertification, and to promote SLM and rural development in drought-prone areas REDD+ and UNCCD • Deforestation in drylands significantly increases the risk of soil degradation and desertification • Land degradation, particularly unsustainable land management practices and deforestation, are major contributors to the increase in GHG in the atmosphere • REDD may provide a unique opportunity to fund measures aiming at ongoing degradation of forestlands in arid and semi-arid areas

10. Content • Context and Definitions of REDD+ • Importance of REDD+ for UNCCD & SLM • REDD+ potential worldwide and for drylands • REDD+ eligibility in the carbon markets & existing projects • REDD+ in the international negotiation arena • Drivers ofdeforestationanddegradation • Phases and financing REDD+

11. Deforestation trends Mainly in South America, Southeast Asia, West & Central Africa 13 M ha deforested annually

12. Potential for drylands Payments in carbon markets would be based on carbon content of ecosystems Carbon contents of forests vary widely • Cambodia: average 80 t C/ha • Sudan: average 6 t C/ha

13. Potential for drylands • Potential rewards from REDD vary proportionally: • Countries / areas with predominantly arid forests would gain very little from REDD However, these are areas most at risk from land degradation and desertification! Solutions?

14. Content • Context and Definitions of REDD+ • Importance of REDD+ for UNCCD & SLM • REDD+ potential worldwide and for drylands • REDD+ eligibility in the carbon markets & existing projects • REDD+ in the international negotiation arena • Drivers ofdeforestationanddegradation • Phases and financing REDD+

15. REDD eligibility Voluntary markets! VCS: Voluntary Carbon Standard CCX: Chicago Climate Exchange VER+: Verified Emission Reductions Standards

16. REDD+ in the Carbon Markets

17. REDD+ in the Carbon Markets Official UN REDD schemeandmarketsonly after 2012 Several large pilotschemesalreadyunderway Voluntarymarketsforavoideddeforestationalreadyexist cangeneratecarbonfinancenowwithpilotprojects Voluntarymarketscanprepare a countryfor REDD Can helpsetupnecessaryinstitutions (e.g., transparent management, monitoring, dedicatedgovernmentdivisions) Projects couldbeintegrated in national REDD strategy

18. Content • Context and Definitions of REDD+ • Importance of REDD+ for UNCCD & SLM • REDD+ potential worldwide and for drylands • REDD+ eligibility in the carbon markets & existing projects • REDD+ in the international negotiation arena • Drivers ofdeforestationanddegradation • Phases and financing REDD+

19. International negociations on REDD+ SBSTA: Subsidiary body for scientific and technological advice AWG-LCA: Ad Hoc Working Group on Long-term Cooperative Action under the Convention

20. Cancún 100 B $/ pledged until 2020 ~ $ 10B/year (?) Reinforced REDD+ Continue to seek a legally binding agreement on second commitment period, South Africa >>> ongoing Action Framework on adaptation New programme on technology transfer Green FundWorld Bank trustee, independent board

21. Pilot countries and observators29 partners countries, from which 9 + 3 pilot countries

22. Content • Context and Definitions of REDD+ • Importance of REDD+ for UNCCD & SLM • REDD+ potential worldwide and for drylands • REDD+ eligibility in the carbon markets & existing projects • REDD+ in the international negotiation arena • Drivers ofdeforestationanddegradation • Phases and financing REDD+

23. Deforestation & Degradation Drivers High opportunity costs of sustainable forest use and conservation relative to other land uses and commodities Remote, marginal areas – Land tenure – Illegal logging – Enforcement / impunity But: Weak governance – Policy coherence / will – Capacities, resources – Contradicting legal frameworks – Transparency / accountability – Ownership, participation

24. Content • Context and Definitions of REDD+ • Importance of REDD+ for UNCCD & SLM • REDD+ potential worldwide and for drylands • REDD+ eligibility in the carbon markets & existing projects • REDD+ in the international negotiation arena • Drivers ofdeforestationanddegradation • Phases and financing REDD+

25. REDD+ phasing

26. REDD+ finance • 3.5 B$ preparatory activities (readiness) • 20-35 B$ performance based payments for emission reduction • at least~ 4 B$ / year until 2015(UNFCCC-Informal Working Group on Interim Finance, October 2009) Estimated need: $ 23-38 B to reduce annual deforestation 25% (3.2 M ha / year): Oslo REDD+ Partnership: 4.5 B US$ pledged for “fast start” activities

27. Mitigation costs REDD+ is a key component in the UNFCCC negociations towards major financing transactions REDD+: 2– 4 $/t CO2 Industrial CO2 capture and storage: $ 75-115 / t REDD+ can be achieved relatively cheaply, could reduce the cost of global action by 40%

28. What’s new? Difference: REDD+ finance needs would Increase substantially the investment in governance and national capacity building Current “mitigation aid” around 8 B $/year.

29. Governance is the main challenge Of the countries participating in UN-REDD and FCPF, 83% are rated as having unstable business climates and 13% are rated as highly risky.

30. Governance institutional capacities law enforcement, certainty Possible “first” impacts • Improved policy coherence • Investment climate for agriculture, energy, infrastructure, environment, forestry, others • Landscape impact • Land use planning • Tenure regulation

31. Thanks! Patricia Gorin Climate Change and Environment Officer FAO Rome, Investment Centre (TCID) Patricia.Gorin@fao.org Patricia Gorin Climate Change and Environment Officer FAO Rome, Centre d’investissement Patricia.Gorin@fao.org