Indonesian Fires Bring More Haze to Southeast Asia

Unseasonal forest fires in Indonesia are causing respiratory problems and generating carbon emissions. The World Resources Institute uses the new Global Forest Watch tool to find out why and how these fires can be prevented.

This article was originally published on the World Resources Institute website. Click here to read the original.

4 March 2014 | The governor of Indonesia’s Riau province issued a state of emergency last week as thick haze blanketed large areas of the region, closing down schools and airports. According to local officials, more than 22,000 people have been impacted by respiratory problems–with the potential for many more if winds shift the haze to other more densely populated areas such as Kuala Lumpur or Singapore.

Clearing land for timber and agriculture is likely to blame. According to data from Global Forest Watch—a new online system that tracks tree cover change, fires, and other information in near-real time—roughly half of these fires are burning on land managed by oil palm, timber, and logging companies—despite the fact that using fire to clear land is illegal in Indonesia.

This latest haze emergency is reminiscent of a similar one that flared up in Indonesia in June 2013 (see WRI’s coverage of the fires crisis). So what’s different this time around, and what’s the same? We’ll attempt to answer these questions using satellite technology and Indonesian government data found in Global Forest Watch.

How Is this Haze Crisis Similar to that of June 2013?

Our new analysis detected 1,449 “high confidence” fire alerts on the island of Sumatra from February 20-March 3, 2014. Like last June, the fire alerts—which are detected using NASA’s Active Fire Data—are concentrated in the island’s Riau province.

 

Fire Alert

 

And like the June 2013 crisis, almost half of the fire alerts fall within timber, palm oil, and logging concessions.

 

Fire Graph

 

Very distinct clusters of fires can also be seen within specific company concessions. Using Global Forest Watch, everyone can explore these patterns, see the precise locations of the fires day-by-day, and determine which companies are operating in these areas.

 

Fire Image

 

A list of the affected concessions and companies is available at the end of the document. Closer investigation on the ground by Indonesian authorities is needed to pinpoint the exact causes of the fires at these locations and determine whether companies have perhaps broken the strict laws that limit the use of burning.

What Is Different About the New Haze Crisis?

February is an unusual time of year for fires in Indonesia—the normal burning season is April to October. This February has, however, been one of the driest on record in Indonesia and neighboring countries, affecting crop yields and setting the stage for burning. These sorts of dry spells may become more frequent and severe as climate change worsens.

These unseasonable fires are concerning, but there are also some positive, recent advances that could help prevent them from flaring up in the future. For one, stronger policy and market practices are disincentivizing and even penalizing burning and forest-clearing in Indonesia. Singapore, for example, is proposing a new law that would allow it to levy fines on companies—foreign or domestic—that cause transboundary haze events that impact the country. In the current draft bill, companies could face fines of up to US$238,000 for contributing to haze that crosses national borders. This is a rather small fine for the large companies that operate in Indonesia, but the potential impact on their reputations sends a strong signal that businesses need to do a better job of fire prevention.

Additionally, Wilmar, the world’s largest palm oil trader, recently pledged to produce and buy only deforestation-free and fire-free palm oil. Companies may see their valuable contracts with this major trader jeopardized if their concessions are affected by fires.

Furthermore, the world can now monitor these events live through Global Forest Watch. This new platform, launched on February 20 by WRI and more than 40 partners, provides near real-time information on fires and concession data.

More Action Is Needed to Prevent Fires in Indonesia’s Forests

There’s more that Indonesia and other countries should do to address the forest fires problem. While Global Forest Watch relies on the best data available, the Indonesian government has not yet released its most up-to-date concession information. The concession data shown above from the Indonesian Ministry of Forestry gives us a good idea of which companies are operating where, but it has several known inaccuracies. More transparency on the exact locations of concessions would make it easier to monitor and hold companies accountable when fires flare.

This transparency may improve in the near future. In October 2013, ministers from five Southeast Asian nations—including Indonesia—met to discuss haze prevention and agreed to share concession data on a country-to-country basis (though not make it public). Furthermore, the Roundtable on Sustainable Palm Oil (RSPO), an industry group, has adopted a resolution that commits their member companies to share concession data openly.

In the meantime, companies, NGOs, governments, and concerned citizens can go directly to Global Forest Watch to monitor fire alert data and overlay it with data on concessions, protected areas, and land cover. With this information easily accessible, companies, local law enforcement, and governments cannot use ignorance as an excuse for inaction.

  • LEARN MORE: For more WRI analysis on Indonesia’s fires, check out our blog series.

 

Fire Table

 

Ariana Alisjahbana is a research analyst at WRI’s Forests Initiative. She can be reached at [email protected] Anderson is Forests Communications Officer for WRI’s People and Ecosystems Program. He can be reached at [email protected]. Susan Minnemeyer is WRI’s Geographic Information Systems (GIS) Lab Manager. She can be reached at [email protected] Stolle is Program Manager for WRI’s Forest Landscape Objective. He can be reached at [email protected]. Nigel Sizer is the Director of WRI’s Global Forest Initiative. He can be reached at [email protected].
Additional resources

Latin American Katoomba Meetings Aim To Turbocharge Climate Talks

18 February 2014 | Environmental finance has always been something of a double-edged sword.

On the one hand, mechanisms like species banking, forest-carbon crediting, and investments in watershed services draw finance away from environmental destruction and into conservation, and they do so based not on something as fickle as philanthropy, but on the fundamental recognition that our civilization depends on clean air, clean water, and resilient ecosystems.

On the other hand, narrow payments explicitly focused on specific ecosystem values favor those that can be measured and verified, which means they run the risk of leaving a whole symphony of ecosystem services unaccounted for and unsupported.

Scientifically, that never made sense. Forests feed rivers, which feed farms, which feed us. It all links together. But our economic and regulatory systems weren’t designed with nature in mind. “Landscapes Thinking” aims to fix this flaw by nurturing our planet’s living ecosystems holistically rather than in their component parts.

Recognizing The Obvious

The challenge is great, but not as revolutionary as it may seem. After all, in practice the holistic and the simplistic have always linked together. The most successful REDD projects don’t work by putting a fence around a forest, for example. They work by helping rural poor develop sustainable land-use practices that take pressure off the forest. The outcomes may be measured in the amount of carbon stored in trees or the cleanliness of water coming into a lake or stream, but the actions have always focused on people, places, and procedures.

The simple fact is that even nominally fragmented financing mechanisms work best when they support holistic land-management strategies, and organizations employing those strategies have increasingly tapped into these financing mechanisms to achieve goals that were unachievable in the past. This reality has slowly come into focus in our annual State of the Forest Carbon Markets reports, which show that private conservationists using forest-carbon financing mechanisms today are managing an area larger than all the forests of the Democratic Republic of Congo combined.

There’s always been a sense that a more formalized holistic approach would deliver even better benefits, and that philosophy took center stage at year-end climate talks in Warsaw, with Forest Day giving way to Landscapes Day, a Dutch consortium launching the BEE REDD+ Initiative to better bring biodiversity values into REDD, and the US, UK, and Norway launching a REDD finance mechanism under the World Bank focused on saving forest by supporting climate-safe agriculture.

But the landscapes approach isn’t just about scaling up or broadening narrowly-focused but effective mechanisms like REDD. It’s about redirecting finance flows across the entire global agricultural economy, with the actual environmental payments acting as catalysts or being used to fine-tune the more broad-based activities. Implementing something as massive as sustainable landscapes requires the cooperation of major agriculture players, policy makers, and financial institutions, as well as scientific experts in deforestation, water, and biodiversity.

Two Global Katoomba Meetings – one in March and one in April – will bring these diverse stakeholders together as part of an ongoing effort to accelerate this change. The aim is to harvest efforts already underway for lessons-learned, and jump-start new initiatives based on the best knowledge we have.

The March meeting will take place on the 19th and 20th at Iguazíº Falls, on the border of Brazil and Argentina, under the banner “Scaling Up Sustainable Commodity Supply Chains”.

The April meeting will take place in Lima, Peru, over four days – from the 22nd through the 25th – and its working motto is “Climate, Forests, Water, and People: A Vision for Alignment in Tropical America”.

Ecosystem Marketplace Coverage of Katoomba Season 2014

Over the next two months, our coverage will focus heavily on the issues to be covered at these two major events. We will begin by examining the perils and promise of sustainable commodity supply chains, then explore issues of governance, and then move into ways that specific mechanisms are impacting the landscape in Peru’s San Martí­n region and across the Amazon.

Katoomba Brazil: Laying the Foundation

When you talk agriculture in Brazil, you’re talking soybeans in the Cerrado and cattle in the Amazon. Both are major drivers of land-use change, and both generate products that find their way into nearly everything we consume – from tofu and hamburgers to leather sofas and shoes. That demand is what’s killing the forest, but it’s also what’s feeding the companies that drive the destruction. Inform the demand, the thinking goes, and you can reduce the damage.

It’s that thinking that drove the Consumer Goods Forum (CGF) to vow zero deforestation in its supply chains by 2020. A collaboration of 400 major consumer goods companies and service providers with combined annual sales of over US$3 trillion, the CGF will respond to consumers – but only if those consumers are serious. Some companies have formed roundtables to coordinate efforts around specific commodities. And recent initiatives focused on building jurisdictional approaches (national, subnational, and municipal) could bring integrated, large-scale transformation to commodity supply chains.

Initiatives like these are critical, but they are all in early stages of development. If the challenge of increased agricultural production is to be met while also reducing deforestation in the next few years, new relationships, creative approaches, and sources of finance will be required to help companies and their suppliers achieve long-term sustainability while still meeting their bottom line.

Katoomba Peru: 20/20 Vision for a Global Climate Solution

This is the 20th Katoomba Meeting, and it’s designed to align international cooperation and development strategies for the region. In so doing, it will also provide clarity for the 20th Conference of the Parties (COP 20) to the United Nations Framework Convention on Climate Change (UNFCCC), which also takes place in Lima this year. The COP is the year-end climate talks, and this one is charged with delivering a global agreement on greenhouse gas emissions.

Katoomba 20 opens on Earth Day with the first two days taking place in Lima on the same grounds as the COP. There, the events will be open to a broad range of high-level participants, but the second two days take place in San Martin and are for expert practitioners only. They will be comprised of workshops designed to turn theory into practice.

The aim of both meetings is to identify opportunities for climate policy and finance to align with other public and private investments and commitments to ensure that forests and other ecosystems continue to provide critical support for stable climate and resilient societies.

Why Alignment

The need for alignment becomes clear when we consider how climate change, forests, and water are deeply intertwined. Not only will climate change directly impact forests and the other natural systems that maintain critical water-related ecosystem services, climate impacts will be experienced largely through the medium of water – melting glaciers, changing rainfall patterns, increased water stress and drought from higher temperatures, more severe storms – resulting in increased water and food insecurity, and constraints on economic opportunities. Integrating climate policy, forest and biodiversity conservation, post-2015 sustainable development goals, water management, and agriculture and energy development will be critical to success.

Why Peru?

Peru is positioned to lead the region and the world in undertaking this complex, but crucial, work. Critical sources of water, regulators of flow from Andean glaciers, and home to the country’s distinctive and well-known megadiverse flora and fauna, Peru’s forests are also under threat – and deforestation is the primary source of the country’s greenhouse gas emissions. Having committed to zero net emissions from deforestation by 2021, Peru’s new forestry and climate change strategy will be pivotal in realizing the country’s commitment to climate change and its very identity moving forward. Additionally, Peru has shown how to lead on ecosystem service-based approaches through its recent water sector reform, support for a national incubator of ecosystem services projects, the development of a national ecosystem services law, and new regulations requiring no net loss of biodiversity for large mining, agriculture, and infrastructure projects.

Beyond national leadership, this strategy’s success will largely depend on the commitment of Peru’s Amazonian regional governments. In that arena, several regional governments have demonstrated real interest in accessing finance for sustainably managing their natural resources – including Loreto, Madre de Dios, Ucayali, and San Martin, which have joined the Governors’ Climate and Forests Tasks Force and begun to develop jurisdictional REDD+ programs. San Martin stands out among these regional governments, as a leading “green region” with sincere commitment to aligning its economic, environmental, and social goals with a framework anchored in optimizing the ecological and economic value of its landscapes. As the home to several REDD+ projects, the first watershed services project in Peru, over a dozen conservation concessions, and a growing ecotourism industry, San Martin is poised to demonstrate how to align the financial, political, and cultural pieces necessary to achieve a thriving, productive, and sustainable society.

Successfully finding alignment will require efforts not only at these multiple levels of governance but also among scientists, financiers, business leaders, bilateral and multilateral donors, NGO leaders, and community leaders. Katoomba XX will convene these actors to help to forge alliances and mobilize momentum for a new vision of alignment for Tropical America.

 

This Week In Forest Carbon News…

A sustainable agriculture project in the Nyanza and Western Provinces in Kenya became the first to market offsets from carbon sequestered in soils, with financing flowing to smallholders. But elsewhere in Kenya, in the Embobut forest, the Sengwer people are being evicted from their homes.

This article was originally published in the Forest Carbon newsletter. Click here to read the original.

30 January 2014 | It’s only January, but 2014 has already seen much development on the forest carbon front, with a project in the Nyanza and Western Provinces in Kenya becoming the first to earn credits under the Verified Carbon Standard’s (VCS) sustainable agriculture methodology. The Kenya Agricultural Project (KACP) engages 60,000 farmers on 45,000 hectares to, for the first time, monitor their soil carbon – a quantification that then allows them to bring those metric tons of sequestered carbon to market. The project, implemented by the Swedish NGO Vi Agroforestry, has reduced 24,788 tonnes of carbon dioxide (tCO2e) so far.

The World Bank’s BioCarbon Fund (BCF) has committed to purchasing 150,000 tonnes of emissions reductions, estimated at $600,000, generated by the project between 2009 and 2016. Carbon-centric cropland management practices such as cover crops, rotation, mulching, and green manure can also help increase agricultural yields by 15-20%, according to the World Bank.

“This proves, yet again, that good environmental practices make good business practices, and in this case they are making for good farming practices which have tremendous ancillary benefits,” said David Antonioli, VCS Chief Executive Officer.
 

However, it’s not all good news from Kenya. From the Embobut forest, organizations such as the Forest Peoples Programme are reporting that 150 police and forest guards have been orchestrating a forced eviction of the Sengwer people, burning as many as 1,000 homes this month. The Sengwer are nonsensically blamed for threatening urban water supplies, though the ‘fortress conservation’ approach has been denounced by the international community as both unjust and ineffective.
 

On the policy front, Quebec officially linked its cap-and-trade program with California’s on January 1, opening up the possibility for forest carbon credits to flow between the state and the province. Market experts say that Quebec will be a buyer rather than a seller during the honeymoon phase of the union.
 

Other compliance markets are not doing so hot. Facing a repeal of Australia’s carbon tax, Andrew Grant, the head of the largest carbon project developer in the country, resigned last week. CO2 Group mainly developed forestry offsets, but without a market-based carbon reduction policy, demand has been, well, non-existent: “We haven’t had any investment interest in 18 months,” Grant told Reuters in October.
   

And in Europe, a recent proposal to ban the use of Clean Development Mechanism (CDM) credits in the European Union’s Emissions Trading Scheme (EU ETS) unless climate negotiators reach an international agreement in 2015 sets an ultimatum for an already crushed market.
 

However, it’s unlikely the proposal will have a large impact on the forest carbon market. The EU ETS never allowed many types of forestry credits anyway, and the BCF, the major buyer of the only eligible forestry offsets – CDM afforestation/reforestation – has backed off of those purchases. Ecosystem Marketplace’s 2013 State of the Forest Carbon Markets report unveiled a major decline in 2012, with only 0.5 MtCO2e CDM A/R offsets transacted compared to the all-time peak of 5.9 MtCO2e in 2011; the overall value dropped from $23 million in 2011 to less than $1 million in 2012.
 

These and other stories from the forest carbon marketplace are summarized below, so keep reading!


Here at Ecosystem Marketplace, we’re getting ready to begin data collection for our 2014 State of the Voluntary Carbon Markets and State of the Forest Carbon Markets reports, and we’ll also be launching a revamped survey of clean cookstoves projects in collaboration with the Global Alliance for Clean Cookstoves.
 

We look forward to again providing reliable and transparent market information in the New Year, with many thanks going to those organizations that support our research. Most recently, this includes Impact Carbon, ClimateCare, and the Forest Carbon Group. In addition to the gratification of helping us provide market information and insight to the world free of charge, sponsoring organizations (above a certain level) receive a few perks. To inquire, email Molly Peters-Stanley.

 

—The Ecosystem Marketplace Team

If you have comments or would like to submit news stories, write to us at [email protected].


News

ANNOUNCEMENT

Katoomba with us

Forest Trends is hosting two exciting Katoomba events in stunning locations this spring: Katoomba XIX in Iguazu Falls, Brazil from March 19-20 will look at scaling up sustainable commodity supply chains and Katoomba XX in Lima, Peru from April 22-25 will work towards aligning climate policy and finance with investments in forests and water. For 15 years, the Katoomba Group has convened global experts and leaders to advance the frontier of ecosystem services approaches. Our events convene government, industry, nonprofits, and communities – people who are not often in a room together, but should be – to solve problems on specific landscapes (and water-scapes!). To find out more about attending these exciting events, email Jennifer Baldwin ([email protected]) for Iguazu Falls or Gena Gammie ([email protected]) for Lima.

INTERNATIONAL POLICY

CDM knocking on death’s door?

The European Union could deal a death blow to the CDM market if it follows through on a proposal to ban the use of CDM credits in its emissions trading system. The offsets would only be allowed into the EU system if international negotiators reach a new climate agreement at the 21st Conference of Parties in Paris in 2015. The CDM market has been under significant pressure with prices dropping 98% in the past six years.

A marriage made in forest heaven

Quebec is going to eventually look to its new spouse California to supply carbon offsets, including forestry credits, to its cap-and-trade program, but demand from buyers in the Canadian province will be limited during the honeymoon phase of their linkage, listeners to a recent Climate Action Reserve webinar were told. Quebec’s compliance entities will ultimately turn to California to supply offsets as the three protocols so far approved by the province – livestock manure management, landfill gas capture, and destruction of ozone depleting substances – are expected to produce a finite number of credits, while California’s program has a greater reach since it also covers forestry offsets.

Jumping off carbon’s sinking ship

The likely dismantling of Australia’s carbon pricing scheme has claimed a major corporate casualty. Chief Executive Andrew Grant is leaving the CO2 Group, which blamed his departure and a plan to scale back the company’s carbon operations directly on the politically-charged decision by the new federal government to abolish the carbon tax regime, as well as the ongoing chaos in the carbon market. CO2 Group was the first company to generate carbon credits through creation of new forests under the Carbon Farming Initiative and to create credits from newly planted trees under the New South Wales Greenhouse Gas Abatement Scheme.

NATIONAL STRATEGY AND CAPACITY

Burkina Faso is in!

Burkina Faso has officially been qualified as a REDD country after being awarded a US$3.8 million grant to put in place the necessary policies and systems needed to effectively reduce deforestation and forest degradation. This is a significant step forward for a country where forests cover approximately 43% of the total land area, and where high forest loss rates are driven by a combination of socio-economic, political, technological and cultural factors, among others.

Urgency and reality juxtaposed

The Indonesian government has appointed Heru Prasetyo as the head of its newly established REDD+ Agency. His mission will be reducing climate-changing emissions from deforestation, accelerating tree planting and reinforcing forest protection, as well as raising more funds for this work. The agency will look at urgent reforms to the ownership and usage of forests in Indonesia. Although changes are drastically needed, these cannot happen overnight, but gradually, according to Prasetyo.

Bolivia, Costa Rica REDD-y for their close-ups

Bolivia and Costa Rica have been added to the list of REDD Desk profiles. Bolivia has always been a good candidate for REDD given its high forest cover, high deforestation rates and low opportunity costs to reduce deforestation. Nonetheless, the country has publicly opposed the implementation of REDD+ since 2008. More recently, the Peruvian government started to realign its vision on sustainable forest management with UN-REDD. On the other hand, Costa Rica contains 4.8% of the global biodiversity in only 0.03% of the world’s landmass. Although the country experienced high deforestation rates until the 1980s, it is now a pioneer in the use of market mechanisms to reduce deforestation and is well known for its environmental policies.

PROJECT DEVELOPMENT

Finite Carbon adds another notch

Finite Carbon and Potlach Corporation rang in the New Year by registering their improved forest management project in Arkansas with the California Air Resources Board (ARB). The Moro Big Pine project covers 15,809 acres of Red-cockaded woodpecker habitat (a federally protected species) and received an initial issuance of 220,208 ARB offsets for potential sale on California’s compliance market. The project joins the very first ARB-approved forest projects – the Farm Cove project in Maine, also developed by Finite Carbon, and the Willits Woods project in northern California – which both received credit issuances in November.

SOCIAL AND HUMAN DIMENSION

Wrongful evictions

Thousands of indigenous Sengwer people are being evicted from Kenya’s Embobut forest. Despite an appeal by more than 40 Kenyan and international human rights groups to stop forced evictions, the Forest Peoples Programme reported from the ground last week that Kenya Forest Service guards have burned as many as 1,000 homes, displacing thousands of people. The Kenyan government describes the Sengwer as ‘squatters’, though their ancestral land rights are written into the Constitution. Some Sengwer were offered money to move, but most did not want it. The evictions have been likened to a ‘fortress conservation’ approach that is now largely denounced by the international conservation community.

SCIENCE AND TECHNOLOGY

It gets better with age

A team of 38 international researchers published in the journal Nature discovered that trees accelerate growth as they get older and bigger, actively fixing larger amounts of carbon compared to younger, smaller trees. Since trees lose carbon back into the atmosphere as they decompose after dying, the rapid carbon absorption rate of individual trees does not necessarily translate into a net increase in carbon storage for the entire forest. Yet these results have important implications for forest management because while they are alive, large old trees play a disproportionately important role in a forest’s carbon dynamics. The finding contradicts earlier assumptions that younger trees are growing more quickly and therefore sequestering more carbon.

Sometimes less is more

Restoring pastures and agricultural plots back into functioning forest ecosystems often involves high costs and time. Typically, trees are planted in rows and cover the entire restoration site. However, a recent study by researchers from Las Cruces Biological Station in Costa Rica and UC Santa Cruz showed that planting ‘tree islands’ – clusters of trees throughout a plot – may result in an equally effective and more economical reforestation strategy. As trees in these ‘islands’ grow, they shade out competitive pasture grasses, animals start spreading seeds, and the restoration process continues without further intervention. Soon the ‘islands’ begin to cover the entire plot, despite a much smaller upfront investment in tree planting. These results are promising, but there are still some logistical issues.

Oceans, the new climate change oracle

Scientists from the Center for International Forestry Research (CIFOR) found that by measuring sea surface temperatures off the shores of Brazil in the Atlantic Ocean, they could predict whether the dry season would be drier than usual in the Peruvian western Amazon. They also found that the greater the differences in temperature are between the sea surface in the northern and southern regions of the tropical Atlantic Ocean, the higher the likelihood of drought. These predictions could lead to better fire management programs during the dry seasons in the Amazon.

Too good to be true

Some doubters of the severity of climate change impacts have cited the fertilization quality of carbon dioxide (CO2) as evidence that higher concentrations of the stuff in our atmosphere will actually benefit forests by causing them to grow faster. But mounting research, including a recent study published in Nature, is showing that the negative effects of increased temperature and drought may outweigh any carbon-induced growth spurts. Compared to the same amount of warming in the 1960s and 1970s, a one-degree-Celsius rise in CO2 concentrations now releases about two billion extra tCO2e, the study found, using long-term atmospheric records from Mauna Loa and the South Pole.

STANDARDS AND METHODOLOGY

Lower-carbon logging

VCS’s new Reduced Impact Logging methodology is now up for public comment, through February 13. The methodology aims to reduce emissions around the three main logging activities that release carbon: felling, skidding, and hauling. For instance, a project might earn credits for reducing the number of trees cut and then abandoned or by narrowing logging roads. This is the first land use/forestry methodology to use a performance method, with the baseline set by region rather than by project. So far, a benchmark has been set for East Kalimantan, Indonesia. If logging operations are already meeting the additionality threshold, they can earn carbon credits.

Amazonian standard in the archipelago

The Rainforest Standard (RFS) launched in January at West Bali National Park in Indonesia. RFS is the first carbon credit standard to fully integrate the requirements for carbon accounting, sociocultural and socioeconomic impact, and biodiversity outcomes. Columbia University’s Center for Environment, Economy, and Society worked with national funds in Bolivia, Brazil, Colombia, Ecuador, and Peru to create the standard, taking into account the ecological conditions and social realities of the Amazon region. Adapted for Indonesia, the standard will be tested out at the West Bali National Park, which covers 190 square kilometers.

PUBLICATIONS

Highway through the forest zone

Economic growth is usually viewed positively, but not when it comes at the expense of the rainforest, as is happening in the Peruvian Amazon, according to a new CIFOR report. The country has a relatively low deforestation rate of 0.15% and the government has committed to achieving zero net deforestation, but deforestation currently accounts for nearly half of Peru’s greenhouse gas emissions. And the historical deforestation rates do not reflect the impact of new activities driving economic growth – a key priority for the poverty-stricken country – such as major road and energy infrastructure projects.

Landing on community chest

The REDD+ sector can learn a thing or two from those engaged in community forestry in Latin America, according to a new report called Lessons Learned from Community Forestry in Latin America and their Relevance for REDD+. Latin America is arguably the world leader in community forestry and offers multiple advantages for REDD+, according to the report. It makes a series of recommendations that REDD+ projects can build on, including supporting land tenure, reforming sectoral policies and stopping illegal activity, a major threat to community forestry activities in the region.

Blame it on the pine beetles

The government of British Columbia should take steps to reverse the trend of provincial forests emitting more carbon dioxide (CO2) than they absorb, according to the Sierra Club. Pine beetle infestation, slash fires, wood waste and clear cutting have all contributed to an alarming rate of CO2 emissions. The forest sector accounts for more than half of BC’s total official emissions, but that figure does not include forestry-related emissions beyond those associated with deforestation and afforestation. In November 2013, the BC government dissolved the Pacific Carbon Trust following a controversial report that questioned its support of forestry and other offset projects.

JOBS

Carbon Sourcing Manager – The CarbonNeutral Company

Based in London, the Carbon Sourcing Manager will source emission reduction projects from identification, evaluation, structuring and negotiation of ERPA through close; conduct technical due diligence on projects; and work closely with a sales team in London to source credits for client portfolios. The successful candidate will have a postgraduate degree, a minimum of two to three years of experience within primary carbon origination, and a strong working knowledge of carbon market standards: CDM, VCS, and Gold Standard.

– Read more about the position here

Campaigns Assistant, Forest Program – Environmental Investigation Agency

Based in Washington, DC, the Campaigns Assistant for the Environmental Investigation Agency’s Forest Program will support its work to document and expose illegal logging and associated trade and implement policy to stem the flow of illegal timber imports to consumer countries. The successful candidate will have excellent organization and time management skills, experience in advocacy and campaigns at the national or international level, and a strong interest in natural resource conservation.

– Read more about the position here

Director, CGIAR Research Program – CIFOR

Based in Bogor, Indonesia, the director will manage the CGIAR Research Program on Forests, Trees, and Agroforestry (FTA): Livelihoods, Landscapes and Governance, which brings together several hundred scientists from across the organization. The director will provide intellectual leadership for the FTA, facilitate the delivery of research outputs, and coordinate work plans, budgets, and reporting.

– Read more about the position here

REDD+ Knowledge Sharing and Learning Consultant – World Wildlife Fund (WWF)

Based in Washington, DC, the REDD+ Knowledge Sharing and Learning Consultant(s) will assist WWF’s Forest and Climate Programme to share knowledge about REDD+ through a regular webinar series, online community, and other platforms. The successful candidate will have experience in the field of development-based knowledge sharing, excellent communication skills, and experience working in an international, multi-cultural environment.

– Read more about the position here

Senior AFOLU Consultant – South Pole Carbon

Based in Zurich, Switzerland, the senior AFOLU consultant will generate business opportunities in the area of REDD monitoring, support South Pole Carbon’s forestry project department in technical work, and more. The ideal candidate will be well-networked with multilateral agencies, NGOs and donors in the REDD field; have at least five years of relevant experience in project management and consultancy; and an understanding of forest biometrics and monitoring, reporting, and verification (MRV). English required; French, Bahasa Indonesia, Spanish or Portuguese would be an advantage.

– Read more about the position here

Malawi REDD+ MRV Specialist – Terra Global Capital

Based in Malawi, the REDD+ MRV Specialist will support the upcoming USAID-funded Malawi Integrated REDD Demonstration Program. Candidates must have an advanced degree in forestry, ecology or a related field and a minimum of eight years of relevant work experience, including at least five years of experience in Africa (preferably Malawi).

– Read more about the position here

Research Associate, Greenhouse Gas Protocol – World Resources Institute (WRI)

Based in Washington, DC, the Research Associate will join WRI’s GHG Protocol Corporate Team and be tasked with capacity building for Scope 3 accounting in the financial sector. The successful candidate will have two to four years of professional work experience related to the financial sector and/or corporate sustainability, preferably with a master’s degree in a relevant field, as well as experience with corporate GHG reporting and/or corporate value chains.

– Read more about the position here

ABOUT THE FOREST CARBON PORTAL

The Forest Carbon Portal provides relevant daily news, a bi-weekly news brief, feature articles, a calendar of events, a searchable member directory, a jobs board, a library of tools and resources. The Portal also includes the Forest Carbon Project Inventory, an international database of projects including those in the pipeline. Projects are described with consistent ‘nutrition labels’ and allow viewers to contact project developers.

ABOUT THE ECOSYSTEM MARKETPLACE

Ecosystem Marketplace is a project of Forest Trends, a tax-exempt corporation under Section 501(c)3. This newsletter and other dimensions of our voluntary carbon markets program are funded by a series of international development agencies, philanthropic foundations, and private sector organizations. For more information on donating to Ecosystem Marketplace, please contact [email protected].

Additional resources

What Stories Will Impact
People And The Planet In 2014?

The coming year could be a good one for the environment, with China cleaning its air, palm olil moving towards sustainability, and the world at large finally starting to get a handle on climate change. These are some of the more optimistic projections from the World Resources Institute (WRI) as it identifies what it believes will be the top stories of 2014.

This article was originally published on the WRI website. Click here to read the original.

29 January 2014 | All years are important, but decisions made in 2014 will have a striking impact for decades to come.  

1) The Year of Cities: How Will They Grow?

We’re currently in the midst of the most massive urban transition the world has ever seen. Cities are projected to add 274,000 people every day over the next 30 years. By 2040, the urban population will be more than 2 billion higher than today.

Here’s the point: How cities grow—economically and demographically—will be critical in whether we fail or succeed in the fight against climate change and poverty. Poorly designed, sprawling cities can exacerbate existing greenhouse gas and congestion problems. (Cities already account for 70 percent of global greenhouse gas emissions, and some cities already lose 10 percent of their GDP to congestion alone.) Alternatively, compact, low-carbon cities—featuring sustainable transport systems and people-centric design—can improve quality-of-life and drive economic opportunity.

A growing number of city leaders are beginning to act – and often showing more vision and action than national leaders. This year could significantly accelerate this trend, as a number of key meetings of city leaders can help build political momentum. In February, mayors from the C40 (a group of more than 60 global cities committed to action on climate change) will gather for a summit meeting in Johannesburg. And other major gatherings of mayors in Singapore in June and Colombia in April offer opportunities for best practices to be shared and replicated.

But nowhere will the focus on cities be greater in 2014 than in Brazil as it plays host to the World Cup. All eyes will be on the 12 cities where games will be played.

One the most urbanized, large countries in the world, Brazil has already experienced some of the worst problems of pollution and inequality—as well as some of the most inspiring innovations that are benefitting both citizens and the environment. Urban transport illustrates both. Vehicle emissions caused more than 4,600 premature deaths in Sao Paolo in 2011, and in June last year, more than 1 million protestors took to the streets to demand better urban transport systems and other city services.

At the same time, a new national law requires 3,000 cities to create people-centered city mobility plans by 2015. One hundred cities already have bus-rapid-transit (BRT) systems in place that carry more than 12 million passengers per day.

What image of Brazilian city life will remain in the minds of the 3 million extra visitors and the 3.2 billion World Cup television viewers—and what impact might it have? And, as Brazil faces elections and urban unrest, will its city and national leaders pursue a path towards greener and more efficient cities?

2) Restoration: A 2 Billion Hectare Opportunity

Every minute of every day for the past 13 years, the world has lost an area of forest the size of 50 soccer fields.

The greatest tragedy is that much of all the forest we have lost now has little economic or ecological value. WRI has mapped 2 billion hectares of such degraded land—equivalent to twice the size of China—and shown that much of it can be turned from wasted and unused land into forests, agricultural fields, and other productive uses.

Some countries are beginning to seize this opportunity. The Bonn Challenge, a global commitment for restoration established in 2011, calls for 150 million hectares of deforested and degraded land to be restored by 2020. Restoring this amount of land could bring $84 billion in economic benefits annually and close the greenhouse gas “emissions gap” by one-fifth.

Brazil, Costa Rica, El Salvador, Rwanda, and the United States have already made commitments to the Bonn Challenge, pledging to restore a collective 20 million hectares. This year could be a year of increased momentum. As leaders seek ways of addressing climate change in a way that would boost rather than reduce jobs and incomes, restoration could emerge as the greatest “win-win” of all. Countries will meet again in Bonn in June to potentially seek additional pledges, and the Heads of State Summit on Climate Change in September offers another opportunity to bloom into a global movement.

3) Sustainable Palm Oil: A New Era?

Palm oil has become one of the most ubiquitous ingredients—found in everything from candy bars to cosmetics to cooking oil. More than half of all supermarket items contain it, and its demand will continue to sky-rocket as the global “middle class” rises from 2 to 5 billion between 2010 and 2030.

But it currently comes at a very high cost: It is one of the leading causes of deforestation in tropical areas.

There are signs that the traditional expansion path – cut down the forest to plant oil palm – may be changing. Western companies, led by the likes of Unilever, Nestle, and Proctor and Gamble – are increasingly committing to phasing out all palm oil that has been produced through deforestation. About 15 percent of world trade is now certified as “sustainable” by the Roundtable on Sustainable Palm Oil (RSPO), a collection of more than 1,000 businesses, retailers, investors, and NGOs working to curb deforestation. This is a good start, but so far just scratching the surface.

This year could mark the beginning of a tipping point. Not only established groupings such as the Consumer Goods Forum, but also Asian-based majors such as Wilmar, the second-largest palm oil trader in the world, are now making commitments to deforestation-free production.

Particularly important is the emergence of technologies that enable monitoring to take place. For example, February will see the launch of Global Forest Watch, a high-resolution, Google map-based tool showing deforestation taking place in near-real time. Developed by WRI with key partners, it provides overlays of concessions and protected areas, enabling deforestation to be identified and responsible companies named. This and other tools will provide for the first time the ability to monitor commitments, and will enable all participants in the supply chain—including consumers, shareholders, and NGOs—to distinguish good from bad performance. This theme will be highlighted at the World Economic Forum in Davos this week.

Will this increased transparency encourage more sustainable palm oil? Will other industries like soy, beef, and cocoa follow?

4) China: Clearing the Air?

In 2013, Beijing experienced a whopping 189 days of dangerous air pollution. This choking smog is due largely to China’s massive coal consumption, which constitutes 50 percent of the world’s total.

This year will see a major step-up in action to address pollution. How effective will it be?

In June 2013, China’s State Council approved a $277 billion, five-year, anti-pollution plan—the biggest ever anywhere. A ban was placed on new coal-fired power plants in China’s three key cities—Beijing, Shanghai, and Guangzhou—and tighter pollution regulations were put on 10 additional areas. In an effort to seek less polluting energy sources, more than half of China’s new energy capacity in 2013 came from renewable energy.

This year will see new spending and policy innovations come into force. The pilot cap-and-trade system in five cities and two provinces will be implemented for the first time.

How will it go? Will it indicate that China will be ready for nation-wide implementation, as is currently planned? What will leaders learn from these initiatives? And will it indicate that China can shift away from coal and toward cleaner energy sources?

5) A New Standard for U.S. Power

Last year’s announcement by President Obama of a comprehensive U.S. Climate Action Plan—which reaffirmed the national target of reducing emissions by 17 percent below 2005 levels by 2020—now needs to be implemented. Power plants account for one-third of U.S. greenhouse gas emissions, so reducing these emissions represents one of the most important opportunities.

On June 1, 2014, the U.S. Environmental Protection Agency (EPA) is scheduled to announce new guidelines for existing power plants. (Just last week, they entered the rules for new power plants into the Federal registry). According to WRI analysis, meeting the 17 percent target will require that these regulations reduce power plant emissions by 31 percent by 2020 and by 74 percent by 2035 (below 2011 levels).

Critics will claim that this would impose too high a price on the economy. How effective will those critics be? There is mounting evidence that if the regulations are strong but flexible, the costs will be small and manageable, and that smart regulations can boost technology and competitiveness.

Already nearly 100 coal-fired power plants have closed in the United States in the past two years. And the Union of Concerned Scientists recently showed that nearly half of the remaining 1,050-odd coal-fired plants are old (43 years on average) and ripe or ready for replacement.

This year will also see the opening of the path-breaking Kemper power plant in Mississippi, applying carbon capture and storage at scale. Will the stories be about the era of CCS finally arriving, or more about cost and schedule over-runs?

6) The Year of Global Momentum on Climate Change?

U.N. Secretary-General Ban Ki-Moon will host a heads-of-government summit on climate change in September – probably the largest meetings of global leaders on climate ever. Its intent is to create political momentum in the lead-up to the planned global climate deal to be finalized in Paris in December 2015. Will it?

The coming months will see the unveiling of major analytical reports that could influence the Summit outcome. In March and April, the Intergovernmental Panel on Climate Change will issue its crucial reports on the impacts of climate change and on policy options. In the summer, a major report on the U.S. economy, Risky Business, will be issued. Sponsored by Tom Steyer, Hank Paulson, and Michael Bloomberg, it will provide new evidence on the sharply increased risk the United States is imposing upon itself by not leading more vigorously on climate change. And finally, the Global Commission on the Economy and Climate, led by President Felipe Calderon, Nick Stern, and Luisa Diogo—and comprising a stellar group of global political and business leaders and some of the world’s top economists—will issue its report, The New Climate Economy. This will provide the most up-to-date evidence on the benefits and costs of climate action.

Will all this evidence, coupled with the growing concerns about extreme weather events, be enough to create incentives for firm action? What’s clear is that the world is currently heading in the wrong direction – towards a 3-5 degree Celsius rise in temperatures. Could 2014 change that?

7) The Year of Elections: Which Way Will They Choose?

It’s likely that more people will vote in democratic national elections this year than in any other in history. The stakes are high: Three of the world’s four largest democracies—Brazil, India, and Indonesia—will elect heads of government this year.

Together, these countries account for 25 percent of the global population and 40 percent of the world’s poor. In each of these nations, there are crucial issues relating to social, economic, and environmental futures. The European Union will also hold its elections at a time when European leadership on sustainable development is under threat form political and economic pressures in some member countries. And the mid-term Congressional elections in the United States will influence whether the country can be a global leader on climate and energy.

Moving from current patterns of production and consumption toward a path that is more productive, equitable, and sustainable is a choice. And 2014, more than most, is a year of choices.

  • LEARN MORE: View the Stories to Watch 2014 Powerpoint presentation, video, and other resources on WRI’s Event page.

Andrew Steer is the President and CEO of WRI. He can be reached at [email protected].

Kenyans Earn First Ever Carbon Credits From Sustainable Farming

NAIROBI | 21 January 2014 | The Kenya Agricultural Carbon Project (KACP) last week became the first organization to earn carbon credits under the Verified Carbon Standard (VCS) for locking carbon in soil. The credits represent a reduction of 24,788 metric tons of carbon dioxide, which is equivalent to emissions from 5,164 vehicles in a year. These are the first credits worldwide issued under the sustainable agricultural land management (SALM) carbon accounting methodology.

The program, which Ecosystem Marketplace profiled in 2011, works by promoting sustainable or “climate-safe” agriculture that has also proven to increase yields in some cases. The KACP involves 60,000 farmers on 45,000 hectares.

Results so far show that SALM can help increase farmers’ yields by up to 15-20%, the World Bank says. These productivity gains come from greater soil fertility and help counteract the effects of increasingly extreme weather conditions. By sequestering more carbon in the soil, SALM also helps mitigate climate change.

“This project demonstrates synergies between climate-change adaptation and mitigation strategies in agriculture,” says Diarietou Gaye, World Bank Country Director for Kenya. “Carbon credits are creating a revenue stream that enhances the extension services provided to farmers, which are critical to the adoption of these practices and also adds to farmers’ income beyond their increased crop yields. This also improves their food security, which is now more important than ever given the vulnerability to climate change.”

KACP forms an important part of the World Bank’s efforts to extend climate finance to incentivize better land management. The Swedish NGO Vi Agroforestry is responsible for implementation in Kenya, supported by the World Bank’s BioCarbon Fund and its participants – the French Development Agency and the Syngenta Foundation for Sustainable Agriculture. The Fund will purchase a part of the carbon credits generated by the project by 2017, estimated at $600,000.

“As an organization, Vi Agroforestry focuses on the benefits of improved living conditions for small-scale farmers thanks to increased yields arising from improved cultivation techniques,” says Arne Andersson, Regional Director, Vi Agroforestry. “The SALM methodology proves to be very successful in achieving this.”

The BioCarbon Fund’s SALM methodology received VCS approval in December 2011. The methodology spells out how carbon sequestration in soils are measured and engages farmers themselves in the monitoring process; for the first time they are measuring the impact of their agricultural practices on crop yields.

“This proves, yet again, that good environmental practices make good business practices, and in this case they are making for good farming practices which have tremendous ancillary benefits”, said David Antonioli, VCS Chief Executive Officer. “The exciting results in Kenya show how strategic investment by development organizations like the World Bank can truly benefit farmers in the developing world by helping them harness the power of the international carbon market.”

 

Additional resources

What Stories Will Impact People And The Planet In 2014?

The coming year could be a good one for the environment, with China cleaning its air, palm olil moving towards sustainability, and the world at large finally starting to get a handle on climate change. These are some of the more optimistic projections from the World Resources Institute (WRI) as it identifies what it believes will be the top stories of 2014.

This article was originally published on the WRI website. Click here to read the original.

29 January 2014 | All years are important, but decisions made in 2014 will have a striking impact for decades to come.  

1) The Year of Cities: How Will They Grow?

We’re currently in the midst of the most massive urban transition the world has ever seen. Cities are projected to add 274,000 people every day over the next 30 years. By 2040, the urban population will be more than 2 billion higher than today.

Here’s the point: How cities grow—economically and demographically—will be critical in whether we fail or succeed in the fight against climate change and poverty. Poorly designed, sprawling cities can exacerbate existing greenhouse gas and congestion problems. (Cities already account for 70 percent of global greenhouse gas emissions, and some cities already lose 10 percent of their GDP to congestion alone.) Alternatively, compact, low-carbon cities—featuring sustainable transport systems and people-centric design—can improve quality-of-life and drive economic opportunity.

A growing number of city leaders are beginning to act – and often showing more vision and action than national leaders. This year could significantly accelerate this trend, as a number of key meetings of city leaders can help build political momentum. In February, mayors from the C40 (a group of more than 60 global cities committed to action on climate change) will gather for a summit meeting in Johannesburg. And other major gatherings of mayors in Singapore in June and Colombia in April offer opportunities for best practices to be shared and replicated.

But nowhere will the focus on cities be greater in 2014 than in Brazil as it plays host to the World Cup. All eyes will be on the 12 cities where games will be played.

One the most urbanized, large countries in the world, Brazil has already experienced some of the worst problems of pollution and inequality—as well as some of the most inspiring innovations that are benefitting both citizens and the environment. Urban transport illustrates both. Vehicle emissions caused more than 4,600 premature deaths in Sao Paolo in 2011, and in June last year, more than 1 million protestors took to the streets to demand better urban transport systems and other city services.

At the same time, a new national law requires 3,000 cities to create people-centered city mobility plans by 2015. One hundred cities already have bus-rapid-transit (BRT) systems in place that carry more than 12 million passengers per day.

What image of Brazilian city life will remain in the minds of the 3 million extra visitors and the 3.2 billion World Cup television viewers—and what impact might it have? And, as Brazil faces elections and urban unrest, will its city and national leaders pursue a path towards greener and more efficient cities?

2) Restoration: A 2 Billion Hectare Opportunity

Every minute of every day for the past 13 years, the world has lost an area of forest the size of 50 soccer fields.

The greatest tragedy is that much of all the forest we have lost now has little economic or ecological value. WRI has mapped 2 billion hectares of such degraded land—equivalent to twice the size of China—and shown that much of it can be turned from wasted and unused land into forests, agricultural fields, and other productive uses.

Some countries are beginning to seize this opportunity. The Bonn Challenge, a global commitment for restoration established in 2011, calls for 150 million hectares of deforested and degraded land to be restored by 2020. Restoring this amount of land could bring $84 billion in economic benefits annually and close the greenhouse gas “emissions gap” by one-fifth.

Brazil, Costa Rica, El Salvador, Rwanda, and the United States have already made commitments to the Bonn Challenge, pledging to restore a collective 20 million hectares. This year could be a year of increased momentum. As leaders seek ways of addressing climate change in a way that would boost rather than reduce jobs and incomes, restoration could emerge as the greatest “win-win” of all. Countries will meet again in Bonn in June to potentially seek additional pledges, and the Heads of State Summit on Climate Change in September offers another opportunity to bloom into a global movement.

3) Sustainable Palm Oil: A New Era?

Palm oil has become one of the most ubiquitous ingredients—found in everything from candy bars to cosmetics to cooking oil. More than half of all supermarket items contain it, and its demand will continue to sky-rocket as the global “middle class” rises from 2 to 5 billion between 2010 and 2030.

But it currently comes at a very high cost: It is one of the leading causes of deforestation in tropical areas.

There are signs that the traditional expansion path – cut down the forest to plant oil palm – may be changing. Western companies, led by the likes of Unilever, Nestle, and Proctor and Gamble – are increasingly committing to phasing out all palm oil that has been produced through deforestation. About 15 percent of world trade is now certified as “sustainable” by the Roundtable on Sustainable Palm Oil (RSPO), a collection of more than 1,000 businesses, retailers, investors, and NGOs working to curb deforestation. This is a good start, but so far just scratching the surface.

This year could mark the beginning of a tipping point. Not only established groupings such as the Consumer Goods Forum, but also Asian-based majors such as Wilmar, the second-largest palm oil trader in the world, are now making commitments to deforestation-free production.

Particularly important is the emergence of technologies that enable monitoring to take place. For example, February will see the launch of Global Forest Watch, a high-resolution, Google map-based tool showing deforestation taking place in near-real time. Developed by WRI with key partners, it provides overlays of concessions and protected areas, enabling deforestation to be identified and responsible companies named. This and other tools will provide for the first time the ability to monitor commitments, and will enable all participants in the supply chain—including consumers, shareholders, and NGOs—to distinguish good from bad performance. This theme will be highlighted at the World Economic Forum in Davos this week.

Will this increased transparency encourage more sustainable palm oil? Will other industries like soy, beef, and cocoa follow?

4) China: Clearing the Air?

In 2013, Beijing experienced a whopping 189 days of dangerous air pollution. This choking smog is due largely to China’s massive coal consumption, which constitutes 50 percent of the world’s total.

This year will see a major step-up in action to address pollution. How effective will it be?

In June 2013, China’s State Council approved a $277 billion, five-year, anti-pollution plan—the biggest ever anywhere. A ban was placed on new coal-fired power plants in China’s three key cities—Beijing, Shanghai, and Guangzhou—and tighter pollution regulations were put on 10 additional areas. In an effort to seek less polluting energy sources, more than half of China’s new energy capacity in 2013 came from renewable energy.

This year will see new spending and policy innovations come into force. The pilot cap-and-trade system in five cities and two provinces will be implemented for the first time.

How will it go? Will it indicate that China will be ready for nation-wide implementation, as is currently planned? What will leaders learn from these initiatives? And will it indicate that China can shift away from coal and toward cleaner energy sources?

5) A New Standard for U.S. Power

Last year’s announcement by President Obama of a comprehensive U.S. Climate Action Plan—which reaffirmed the national target of reducing emissions by 17 percent below 2005 levels by 2020—now needs to be implemented. Power plants account for one-third of U.S. greenhouse gas emissions, so reducing these emissions represents one of the most important opportunities.

On June 1, 2014, the U.S. Environmental Protection Agency (EPA) is scheduled to announce new guidelines for existing power plants. (Just last week, they entered the rules for new power plants into the Federal registry). According to WRI analysis, meeting the 17 percent target will require that these regulations reduce power plant emissions by 31 percent by 2020 and by 74 percent by 2035 (below 2011 levels).

Critics will claim that this would impose too high a price on the economy. How effective will those critics be? There is mounting evidence that if the regulations are strong but flexible, the costs will be small and manageable, and that smart regulations can boost technology and competitiveness.

Already nearly 100 coal-fired power plants have closed in the United States in the past two years. And the Union of Concerned Scientists recently showed that nearly half of the remaining 1,050-odd coal-fired plants are old (43 years on average) and ripe or ready for replacement.

This year will also see the opening of the path-breaking Kemper power plant in Mississippi, applying carbon capture and storage at scale. Will the stories be about the era of CCS finally arriving, or more about cost and schedule over-runs?

6) The Year of Global Momentum on Climate Change?

U.N. Secretary-General Ban Ki-Moon will host a heads-of-government summit on climate change in September – probably the largest meetings of global leaders on climate ever. Its intent is to create political momentum in the lead-up to the planned global climate deal to be finalized in Paris in December 2015. Will it?

The coming months will see the unveiling of major analytical reports that could influence the Summit outcome. In March and April, the Intergovernmental Panel on Climate Change will issue its crucial reports on the impacts of climate change and on policy options. In the summer, a major report on the U.S. economy, Risky Business, will be issued. Sponsored by Tom Steyer, Hank Paulson, and Michael Bloomberg, it will provide new evidence on the sharply increased risk the United States is imposing upon itself by not leading more vigorously on climate change. And finally, the Global Commission on the Economy and Climate, led by President Felipe Calderon, Nick Stern, and Luisa Diogo—and comprising a stellar group of global political and business leaders and some of the world’s top economists—will issue its report, The New Climate Economy. This will provide the most up-to-date evidence on the benefits and costs of climate action.

Will all this evidence, coupled with the growing concerns about extreme weather events, be enough to create incentives for firm action? What’s clear is that the world is currently heading in the wrong direction – towards a 3-5 degree Celsius rise in temperatures. Could 2014 change that?

7) The Year of Elections: Which Way Will They Choose?

It’s likely that more people will vote in democratic national elections this year than in any other in history. The stakes are high: Three of the world’s four largest democracies—Brazil, India, and Indonesia—will elect heads of government this year.

Together, these countries account for 25 percent of the global population and 40 percent of the world’s poor. In each of these nations, there are crucial issues relating to social, economic, and environmental futures. The European Union will also hold its elections at a time when European leadership on sustainable development is under threat form political and economic pressures in some member countries. And the mid-term Congressional elections in the United States will influence whether the country can be a global leader on climate and energy.

Moving from current patterns of production and consumption toward a path that is more productive, equitable, and sustainable is a choice. And 2014, more than most, is a year of choices.

  • LEARN MORE: View the Stories to Watch 2014 Powerpoint presentation, video, and other resources on WRI’s Event page.

Andrew Steer is the President and CEO of WRI. He can be reached at [email protected].

Monterrey, Mexico Uses Fund Mechanism For Clean Water and Storm Protection

Typhoon Haiyan recently provided a devastating reminder of the destructive power of hurricanes – a destructive power that the people of Monterrey, Mexico know all too well. That’s why they are building an investments in watershed services program designed to shield them from the worst forms of natural disaster destruction and also put a little water in the bank for dry days.

29 November 2013 | During the Atlantic hurricane season of 1988, Hurricane Gilbert tore through the Caribbean and the Gulf of Mexico, making landfall first on the Yucatí¡n Peninsula and then moving into mainland Mexico – vacillating all the while between Category 3 and 5 on the Saffir-Simpson Hurricane Wind Scale.

Monterrey, Mexico was one of the cities in Hurricane Gilbert’s path, and it was ravaged by floods and landslides that left more than 280 people dead and 1,000 families homeless.

Twenty two years later, Hurricane Alex brought more floods and destruction, but since then the challenge has been drought – highlighting the fact that the 4 million people in this mountainous semi-arid city face more than just hurricaines: they face wildly-fluctuating water supplies made even less predictable by climate change and rapidly-expanding industrial activities. That fluctuation, in turn, threatens the economy that is partly driving it – and therein lies at least a partial solution.    

Establishing an Action Plan

Just over 3 years ago, a consortium of organizations, companies and government agencies launched the Fondo de Agua Metropolitano de Monterrey (Metropolitan Water Fund Monterrey or FAMM). It aims to ensure a healthy supply of water to Monterrey through investment in watershed ecosystems while also working to reduce the risks of flood disasters.

This initiative was created by The Nature Conservancy (TNC), the Inter-American Development Bank (IDB), the FEMSA Foundation and the Global Environment Facility (GEF). The fund is part of the Alianza Latinoamericana de Fondos de Agua (Latin American Alliance Water Fund), which is comprised of these organizations and seeks to explore the use of water funds in Latin America and benefit the local people and ecosystems. The Alliance was launched in June 2011 and, since then, has invested over $27 million to the creation and implementation of 32 water funds in Latin American countries including Ecuador, Colombia, Peru, Brazil and Mexico. The Alliance has conserved more than 7 million hectares in watersheds, which has the potential to benefit some 50 million people.  

Water funds are an investment in watershed services (IWS) mechanism program. Individuals and organizations are compensated using different methods for protecting watersheds. The concept grew in popularity in Mexico during the 2000s, particularly with the National Program for Hydrological Environmental Services (PSAH) that began in 2003 with a focus on watershed protection.  Several  independent projects  with funding mechanisms have emerged as well, increasing the impact of IWS.  The Alliance is working on two of them.  One is FAMM in Monterrey and the other was established in the state of Chiapas in 2011 under the name of   Semilla de Agua (Water Seed Fund), with an area of potential impact of more than 2 million hectares and about 2.5 million beneficiaries.
 

Designing Monterrey’s Water Fun

FAMM took the form of successful IWS models in the region. The group decided to implement the fund as a tool for long-term preservation of the city’s water supply. Monterrey receives 60% of its water from the San Juan Basin when it flows through Mexico’s National Park, Cumbres de Monterrey (NMCP). The relationship between the upstream basins and the populations downstream seemed to be the key between conserving the watershed. The water fund generated the most promising results in terms of recognizing that link and providing a solution.

The water fund operates through investments in a fund for the sole purpose of preserving and restoring the watershed. This is done through conservation actions to natural areas that provide environmental services such as water flow, retention, filtration and water supply to city dwellers.  It was crucial that the funds’ developers followed good practice in its design and implementation using sound scientific data and planning tools.

Within FAMM, there are four key committees: Institutional Practices Committee, Fundraising Committee, the Technical Committee and the Conservation Committee. Each of these committees is made up of specialists from more than 60 institutions. With the project in its planning stage, developers will hear from an assortment of individuals and institutions.

The committees break down the development activities and divide them among the group. Activities include flood mitigation through reforestation, protection of flow, improving infiltration (capture 20% of rainwater), soil protection, water culture development, awareness campaigns and training, and collaboration with levels of government to bring in the necessary resources.
 

How is it Funded?

The payers in an IWS program are the water users that rely on the services of the watershed. Large water users can make contributions that will preserve the basin and ensure the continuation of services they depend on for business and other matters. As of right now, 70 million pesos or US $5 million has been contributed to FAMM. The conservation nonprofits, Pronatura Noreste and CONAFOR have helped develop IWS programs in Latin America and are working on FAMM as well. This initiative will promote sustainable economic development in the Monterrey region as well as restoration and conservation that will boost residents’ quality of life.  
 
The PWS programs FAMM is modeled after have been operational in the region for over three years and span 3,500 hectares. That includes parts of the San Juan River Basin and the Cumbres National Park with 124 participants, including both private landowners and ejidatarios. Ejidos are agricultural land grants where farmers work on communal property. These participants undergo a detailed selection process. Forestry technicians visit the premises and perform a technical study evaluating the current conditions of the land. They study elements such as deforestation, plague, fire and soil quality among others. The contracts signed between landowners or dwellers and the project developers include any special conditions concerning the land. Agreements can also include maintenance of the land for an annual fee. CONAFOR works with the locals on reforestation and conservation initiatives, which can help build trusting relationships between the project and the local populations.

“Landowners now know that their land and the environmental services it provides are worth something,” said biologist Magdalena Rovalo CEO of Pronatura Noreste.  “The challenges of the initiative now are to identify more communities that are willing to commit to the program as well as incorporate more land and trees into it, which can be a time consuming process.”
 

Scope of FAMM

“We know we cannot prevent hurricanes, so we need to have better planning for natural disasters, and part of that plan is informing the public to be more prepared and protect soils through reforestation,” said Colin Herron Strategic Coordinator Water Funds of Mexico and Northern Central America TNC. “Reforestation is a key part of the project as it is a natural mechanism against climate change, at least on a local scale.”

In fact, a first step of the project was to increase the reforestation capacity in NMCP – the Cumbres National Park. Mexico’s National Commission of Natural Protected Areas says germplasm – an organic tissue that can be used to produce a new plant with the same genetic makeup – must be used to reforest a protected area. This turned out to be a challenge because the number of seedlings produced in a year from which the germplasm would come were low – at 80,000 seedlings.  

Reforestation is one of the goals of FAMM that fits into its larger goal which is to reduce – by as much as possible – the catastrophic effects of natural phenomena, like hurricanes, on the population, economy and environment. This is why a big part of FAMM is maintaining the upper part of the basin. The upper basin needs to be in good condition so it’s capable of stopping or acting as a cushion to high water flows during extreme weather events.  Restoring watershed health is essential for storm protection alone, although there are the other motives mentioned like a steady supply of clean water.

The early years of FAMM are crucial. It has to show strong results as well as the ability to keep stakeholders involved in an organization that is permanent and self-sustaining with a long-term vision, said Rodrigo Crespo, Project Manager with the FEMSA Foundation.  He indicated that at this stage, a key step is uniting over the scope of the project and its long-term vision. Executing conservation and monitoring plans, securing agreements with institutions and finding the right tools are the next important steps.  Once these have been accomplished comes the next stage, which is field work. This will strengthen the actions of the early years.  Projects must demonstrate real, measurable effects in areas of maximum impact, as well as make advances in communicating their project to the locals.  In a later stage, where monitoring the projects’ activities will be the primary task, FAMM can seek new mechanisms that will reduce expenses.

FAMM is an ambitious project both in its objectives and in its potential impacts. Its’ success depends on all participants. Developing this project will take up to 20 years of hard work and continuous investment.  But the effort will likely be well worth avoiding the destruction from another Gilbert or Alex.

 

Indigenous Leaders Stand Up For Active Role In REDD

The REDD Rulebook

The “Rulebook” is actually a collection of seven decisions that together provide guidance on how countries can harvest available data to create reliable snapshots of their forests over time and to use these snapshots to create deforestation reference levels that will be recognized by the UNFCCC.

The decisions govern, among other things, modalities for monitoring national forests, addressing the drivers of deforestation and forest degradation, and measuring, reporting and verifying activities designed to reduce greenhouse gas emissions.

It’s still, however, not clear what sort of payoffs that data will yield long-term, and for that there’s a work program for developing results-based finance in support of REDD and a new set of arrangements between the COP and the Green Climate Fund. The decisions also include a mechanism for helping developing countries deal with loss and damage from climate change.

The final decision reached is the one covering institutional arrangements for REDD finance moving forward.

COP 19 Coverage

We covered the COP from beginning to end, with a narrow focus on REDD and those issues still under discussion. Here is the bulk of our coverage, with a few breaking stories omitted.

Demand For Forest Carbon Offsets Rises As Forestland Under Carbon Management Grows sets the stage for Warsaw with a deep dive into the state of forest carbon markets around the world.

REDD, CDM Likely To Find A Place In New Climate Agreement: UNFCCC Executive Secretary Christiana Figueres offers hope that the troubled CDM market and REDD projects will be included in the international climate deal expected to be finalized in 2015.  

Understanding Carbon Accounting Under The UN Framework Convention is a work in progress designed to explain in simple terms the complexity of carbon accounting under the emerging “REDD Rulebook”.

Indigenous Leaders Stand Up For Active Role In REDD relates what indigenous leaders expect from forest-carbon finance

REDD Reference Levels Share Stage With Broader Land-Use Issues In Warsaw outlines the issues on the table at the beginning of the talks.

In Warsaw As In California, Forest Carbon Carrot Needs Compliance Stick  explores the need for compliance drivers to boost demand for forest carbon offsets.  

Forest, Ag Projects Can Combine Adaptation And Mitigation: CIFOR Study  highlights the missed opportunities to link multiple benefits in projects that aim to tackle the impacts of climate change.  

Dutch Platform Turns Landscapes Talk Into REDD Reality examines a new platform unveiled in Warsaw that could serve as a model for future public-private partnerships for financing REDD+ projects.  

The REDD Finance Roundtable: A Quick Chat With EDF, WWF, and UCS takes stock of the talks on the eve of the final REDD agreement.

For REDD Proponents, No Regrets  examines the early success of REDD pilot projects despite sluggish progress made in securing policy and financial support at the national and international levels.  

US, UK, Norway Launch Next-Stage REDD Finance Mechanism Under World Bank examines a financing mechanism designed to support performance-based payments down the road.

After the talks, we began digging into the decisions and themes of the two-week talk, and will be rolling these stories out as they take shape.

Unpacking Warsaw, Part One: The Institutional Arrangements explores the last-minute deal that lays rules for governing REDD finance through 2015.

Unpacking Warsaw, Part Two: Recognizing The Landscape Reality explores the thinking behind the growing emphasis on “landscape thinking” in climate finance.

Unpacking Warsaw, Part Three: COP Veterans Ask, ‘Where’s The Beef?’ explores the reaction of carbon traders to the Warsaw outcomes and offers a peek into the year ahead.

Further stories in this series will explore the impact of individual decisions within the rulebook, the role that the rulebook can play in helping existing projects nest in jurisdictional programs, and the impact of the rulebook on the private sector.

Indigenous people have long been among the world’s most responsible land stewards, and they are well-positioned to gain from programs that harness carbon payments to save endangered rainforest. Leaders in Warsaw argue, however, that such programs will only work if they incorporate indigenous values and realities.

14 November 2013 | WARSAW | Indigenous issues are a central focus of climate talks here this week and next, especially when it comes to programs that use carbon finance to save endangered rainforest (Reduced Emissions from Deforestation and Degradation, or “REDD”).

“It is important to understand how indigenous people are responding to climate change,” said Juan-Carlos Jintiach on Tuesday. “We have made much progress with holistic management pilot projects.”

Jintiach is the economic coordinator for COICA (Coordinadora de las Organizaciones Indí­genas de la Cuenca Amazí³nica, or “Coordinator of Indigenous Organizations in the Amazon Basin”), which is an alliance of associations and peoples within the Amazon that aims to empower indigenous populations and defend them in human and property rights issues. COICA along with the Indigenous Association of the Peruvian Rainforest (Asociacií³n de Indí­genas de la Selva Peruana or “AIDESEP”) discussed the forest conservation work the indigenous groups are doing at a press conference at the 19th Conference of the Parties (COP 19) to the United Nations Framework Convention on Climate Change (UNFCCC) on Tuesday.

Jintiach said that REDD will only work if it recognizes that different tribes have different views and priorities regarding what can and can’t be done on their land. That, in turn, makes it necessary that they are heard in any negotiating process regarding the land they live on. This type of conservation isn’t just focused on carbon, Jintiach said, but other elements relevant to a forests’ prosperity. These include genetic richness, biodiversity, pollination, etc.

Meanwhile, Roberto Espinoza of AIDESEP said that while all REDD projects have the same principles, they can’t be implemented the same way when applying REDD to private initiatives, protected areas or indigenous lands. “There have to be adjustments,” he said.

Espinoza also stressed that companies invested in indigenous REDD projects in the Amazon should, among other things, make internal changes in their policies and practices that reduce emissions. He went on to note that indigenous REDD has been accepted in Peru and made advances in Colombia and Brazil.

The mechanism has been revised to include long-term life planning, territorial status, comprehensive holistic forest management (not just management of the carbon), increased monitoring and an increase in reducing industrial emissions.

Proposals for the revisions came from a host of governments, organizations and agencies including UN REDD, UNCTAD (United Nations Conference on Trade and Development) and the cooperation organization promoting a united Latin America, ALBA (Bolivarian Alliance for the Peoples of our America).

During the meeting, indigenous leaders called on COP 19 participants to not only reflect on climate change, but also to initiate the same type of action indigenous communities are implementing in 5 million hectares of Latin American forestland. They also asked participating countries to put a premium on indigenous rights during negotiations.

Representatives during the press conference mentioned a summit of Amazon indigenous leaders that will be held later this month in Colombia.

Leaders emphasized how indigenous peoples expect to be key players during climate talks and how the following COP will be in Lima, Peru. There, they will continue to seek a “solution that works for the good of people and the planet.”

Ciro Calderon is Program Assistant at Valorando Naturaleza, based in Baja California Sur, Mexico. He can be reached at [email protected].
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Indigenous Leaders Say Stronger Land Rights Helped Slow Deforestation

Indigenous people have always been among the most responsible stewards of forestland, and new research backs that up. A report released today at the Oslo REDD  Exchange 2013, an international conference in Norway, identifies a clear correlation between indigenous land tenure and healthy forests.

29 October 2013 | A delegation of leaders from indigenous and community organizations in Mesoamerica will today tell an international conference in Oslo, Norway, focused on REDD+ that one of the keys to combating climate change can be found in their region, where strong land rights are enabling their people to fend off the agents of deforestation and reduce greenhouse gas emissions that lead to climate change.

Findings to be presented in Oslo by PRISMA, a research institute in El Salvador, and the Mesoamerican Alliance of Peoples and Forests (AMPB), suggest that countries in Mesoamerica have been handing back rights to indigenous peoples in recent decades, and a pattern of improved forest protection is emerging. Those local communities in Mesoamerica with strong land rights are outperforming governments and industry in conserving the forests under their care.

“Mesoamerica has made enormous progress in the recognition of communal rights over forest lands. Sixty percent of the forests in the region are owned or managed by forest communities and indigenous peoples,” said PRISMA’s Andrew Davis. Davis is a co-author of the PRISMA/AMPB study and a participant in the Oslo meeting.

The study found a strong correlation between forest cover and sites where indigenous communities have meaningful rights over land tenure. In Panama, Indigenous people manage more than 50 percent of the country’s mature forests. There, and in Guatemala and Honduras, deforestation pressures are especially fierce and forests that are controlled or claimed by indigenous peoples and forest communities are often surrounded by deforested areas under exploitation for mining, logging or agriculture.

“On the map of Guatemala, our lands look like islands in a sea of devastation,” said Marcedonio Cortave, from the Association of Forest Communities of Petén (ACOFOP). “The lands that surround the forests of indigenous communities are being destroyed.”

“Deforestation is a key driver of climate change,” said David Kaimowitz, director of Sustainable Development for the Ford Foundation. “The indigenous and traditional communities, with support from civil society, have created a groundbreaking solution to the problem of deforestation and global warming as well as a new model for sustainable development.”

Kaimowitz points to the Amazon, as an example where stronger rights has led to forest conservation. 21% of the entire Amazon Basin region—1.6 million square kilometers, an area one and a half times the size of Bolivia—is now in recognized Indigenous territories. This progress has contributed to the dramatic decline in deforestation in Brazil between 2004 and 2011.

Now indigenous communities want to share their experiences with the rest of the world. They believe that their successful struggle for rights could serve as a model, not only for justice for indigenous peoples but also for better outcomes in reducing emissions from deforestation and degradation, known as REDD+. REDD+ is one of the main mechanisms promoted by international agencies to mitigate the impacts of climate change globally.

“Countries in the Mesoamerican region lead the world in respecting land rights through a variety of legal mechanisms that have allowed locally owned REDD+ approaches to emerge, especially in autonomous territories,” Davis said.

Hector Huertas, a representative of the National Coordination of Indigenous Peoples of Panama (COONAPIP), said his mission in Oslo is to spread the word about the work being done in Panama to implement REDD+.

Huertas and Davis are attending the Oslo meeting with other leaders from Mesoamerica, including Victor Lopez Illezcas, who will represent the experiences of community forestry in Guatemala, through which communities sustainably manage 1.2 million hectares of forests.

Threats to progress in Mesoamerica

Despite the encouraging progress in forest conservation being made in Mesoamerica, the PRISMA report shows that it could be reversed by a failure of governments to recognize or enforce indigenous rights over their territories. Moreover, where rights are unclear or unenforced, drug traffickers are more likely take advantage of the lack of control to develop their criminal activities.

Even in successfully managed community forests where rights have been granted to indigenous groups and rural communities, some governments are succumbing to pressure and granting development concessions to foreign interests, especially for hydropower and minerals.

“Demand for land, hydroelectric power and extractives is testing the resolve of governments and our ability to continue to protect our forests, even after we receive significant rights to manage our lands,” said Cortave.

The problem spans the Mesoamerican region.

“Panama has one of the strongest systems of indigenous land rights in Central America, and yet its leaders are struggling to be allowed a seat at the table in deciding the future of our forests,” said Yuro Bacorizo, a member of the General Congress of Collective Lands of the Embera Wounaan in Panama.

The delegation of representatives of indigenous and peasant organizations in Mesoamerica will participate in the Oslo REDD Exchange 2013, to be held on 29–30 October in Oslo, Norway. The group’s mission is to expose participants to the world the progress made in terms of innovative ways to conserve forests.

Julio Tresierra: Transforming Lives With Investments In Watershed Services

16 October 2013 | Julio Tresierra has always been obsessed with change. That’s what lured him from his native Peru five decades ago, and it’s what keeps him going at 71. Since then, he’s been traveling the world – both geographically and philosophically – in search of real-world solutions to our deepest societal problems. He found the answers living with the poorest of the poor and working on over 60 social development projects with various civil society organizations and government agencies across Asia, Latin America, and Africa.

We reached him by phone in China, his booming baritone resonating with the power of a man half his age. He chalks his strength up to his playful curiosity concerning the world as well as his passion for knowledge – a passion that led him to embrace systems theory and the works of Fritjof Capra, which led him to appreciate the holistic approach to conservation that many payments for ecosystem services deals seemed to be taking.

Tresierra reasoned that if farmers and ranchers improved the areas upstream of a watershed by preventing sedimentation and erosion, then residents, businesses and landowners downstream, who rely on healthy watersheds to conduct business, would be willing to pay for the service. It would help lift farmers out of poverty, he thought, and also generate a sustainable cycle: farmers in upland areas, which are usually those who live in extreme poverty and grow food for consumption, would benefit from better crops to restore water quality. This would also enable them to sell their crops to local markets or even trade with foreign buyers. Ultimately, an investments in watershed services (IWS) scheme would allow for cooperation between the water sector and other stakeholders operating in a basin, instead of conflict and competition.

Over the past four years, his ideas for IWS plans have been implemented in Indonesia, Peru and Guatemala benefitting hundreds of families. And it continues to spread as local authorities move forward with the idea.

From Ideas to Actions

Eight years ago, Tresierra went to work for the environmental NGO World Wildlife Fund (WWF) and applied his model in cooperation with CARE, a humanitarian organization specializing in assisting marginalized populations.

“We felt it was critical to work with a humanitarian organization on this,” he says. “The whole point was to attack the drivers of degradation and to lift people and nature together.”

The result is a global network of pilot projects called Equitable Payments for Watershed Services.

Though considered a landmark accomplishment, it was difficult to get rolling, with a lot of “doors closing and opening,” and, “trying and failing.” The project couldn’t move forward in the field without undergoing feasibility assessments in different locations. But their perseverance paid off and the work done in northern Peru’s Jequetepeque watershed began to show significant results. According to Ana Marleny Cerna, the project’s regional coordinator, local communities’ have tripled their incomes in two years due to restoration of the ecosystem focusing on reducing contaminants from sediments. The Jequetepeque Basin includes the northern regions of Cajamarca and Lambayeque. Work on this project continues in collaboration with Peru’s Ministry of Environment and the irrigation board for Jequetepeque’s water users.

A Child of the Mountains and the Forests

Tresierra says he has always been linked to nature growing up in the Amazon rainforest and the Andes Mountains of Peru. He spent his childhood in Peru’s mountainous Central Sierra region and went to work on tunnel construction when he was 13 – work he chose to gain a sense of independence rather than because he had to.

“That began a profound process of learning,” says Tresierra. “I could see the abyss between local communities, the grandeur of nature and the innocence of the people.”

Tresierra went on to obtain a degree in sociology at the Catholic University of Peru and later travelled to the US to study anthropology and sociology at the University of Notre Dame earning a Master’s and Ph.D.

“I did it to equip myself with the knowledge needed to understand the roots of social problems in the long term,” Tresierra says. “It was also a starting point that gave me the international connections required to implement theories I had learned.”

A college classmate, Luis Herrera, remembers Tresierra as a sensitive and perseverant visionary. And his current project with WWF is a clear reflection of his vision for improving the lives of the poor.

“This proposed model promotes a business arrangement between buyers and sellers of environmental services,” Tresierra says. “It’s not a donation, but an incentive to protect nature. It’s a business proposition between upper basin farmers and water users in the lower basin.”

As Tresierra has pointed out through his IWS model-water is not only consumed. It’s used by large companies to manufacture their products or to generate energy.

“The idea is to find ways to unite the management of economic capital with the management of nature,” he says. Tresierra also points out that this process brings to the forefront the important question-what is the natural element that is responsible in some way for social and economic development? The answer is water and this process puts a monetary value on it.

Tresierra also says that an effective water management system will help communities bear the consequences of nature-like a drought- better. Three types of capital, says Tresierra, have been united and put on equal level. They are: social capital, (the rural poor in upland areas) natural capital, (ecosystems that provide water resources) and financial capital (public or private corporations that benefit from clean water flowing downstream.)

Lessons

It’s been a journey filled with ‘trial and error’ attempts, Tresierra says. And his model will continue to grow and change as Tresierra gains more insight.

“Nothing is finished,” he says. “You have to keep trying over and over again.”

Tresierra says he was always convinced his proposal for an IWS plan would be successful because it was based on knowledge and reality and not emotion. It’s important to, “respect differences and be consistent in proposals and speeches.”

While the original idea was to start a project in Honduras and Peru, they met with challenges in both countries. In Honduras, it just wasn’t possible and in Peru’s Chira river basin in the Piura region, the model was opposed by the authorities and a good proportion of the population.

“You have to realize that sometimes there isn’t opportunity to reach an area,” he says.

Tresierra continues to search for mechanisms that will finance conservation while at the same time alleviate poverty. His stretch with WWF is over but he is looking into Tanzania, Romania and Bulgaria as potential candidates for projects. He also worked in China for three years replicating a development model in rural areas.

Not content with the rules that involve exploiting nature for development’s sake, Tresierra understands the biological and ecological limits this planet has and that we need to take care of it.

 

Milagros Salazar is an investigative journalist specialized in environment and social issues. She collaborates on the investigative team of IDL-Reporteros in Lima, Períº and is a correspondent for InterPress Service. She is also a member of the International Consortium of Investigative Journalists. You can reach her at [email protected].
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Waccamaw Wetland Mitigation Bank Helps Developers And Environmentalists Make Peace In South Carolina

When the state of South Carolina wanted to widen the Glenns Bay Road, they risked upsetting a critical wetland habitat. Here’s how mitigation banking made it possible for them to build the road and expand urban green space with a net plus to the environment – and no cost to local taxpayers.

2 October 2013 | A large gap in Lewis Ocean Bay Heritage Preserve on the outskirts of Myrtle Beach has been filled with the long-desired acquisition of a piece of old Horry County family land known as the Vaught Tract.

The 754-acre addition brings the preserve, which holds 23 of the mysterious wetlands known as Carolina Bays, to 10,444 acres.

The addition is being hailed as a precedent in the way it was acquired. The new parcel was donated as a wetlands mitigation bank, meaning credits can be bought from it by private owners, businesses or government agencies to compensate for wetlands they must destroy when they build something.

For the full story, visit The Sun News.

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Gender Integration in REDD+: From Promises to Practice

Gender mainstreaming in REDD+ has taken a tremendous leap forward in recent months with the introduction of practical tools and standards that measure the consideration and integration of gender in REDD+ activities at both the national and subnational levels. Here is a look at some of the tools that have emerged in the first half of 2013 and the policies driving their creation.

23 September 2013 |The revision of the Climate Community Biodiversity (CCB) standards, the launch of the Women’s Carbon Standard (WCS), and the release of the Action Steps booklet by Women’s Environment & Development Organization (WEDO) and REDD+ Social and Environmental Standard (REDD+ SES) – all mark important advances in this long-overdue effort.

These tools have come about as a result of a growing recognition that mainstreaming gender throughout REDD+ processes and activities had been neglected in earlier discussions and that a great deal could be gained by better integration.

In a turning point, the 2010 Cancun Agreement noted the commitment “to address, inter alia, drivers of deforestation and forest degradation, land tenure issues, forest governance issues, gender considerations and the safeguards.”

Similarly, in the voluntary carbon market, buyers have demonstrated a growing interest beyond greenhouse gas emissions reductions in REDD+ co-benefits linked to biodiversity, rural development, and watershed protection. According to Forest Trends’ State of the Voluntary Carbon Markets 2013 report, “Standards…are responding to intensified corporate interest in measuring and verifying the delivery of ‘non-carbon’ project attributes.”

Consequently, attention has turned to the role of women in REDD projects along with the realization that women’s active participation in management and implementation of project actions to reduce deforestation will lead to more equitable and sustainable results.

According to Kate Dillon Levin, Corporate Partnerships Manager for conservation finance advocates Code REDD, “Women’s empowerment is a core component of…internal corporate goals as well as their outgoing message to consumers.”

This is particularly true for companies such as those in the fashion and cosmetics industries that orient their production towards women. It is also believed that the market may reward projects that are able to demonstrate achievements in gender mainstreaming and women’s empowerment with a premium.

Gender Enters the Mainstream

In March 2013, the Climate Community Biodiversity Alliance released the draft third edition of the CCB standards. While the second edition mentioned gender in the context of inclusive consultations and access to employment opportunities, the new edition proposes additional language to encourage measures to promote the effective participation of women.

It also more clearly defines gender as a criteria for identifying marginalized groups, which receive special attention throughout the document. The new draft also states that capacity building efforts for project workers should target a wide range of people in these communities, with special attention to women.

Perhaps most critically, the new draft calls for project developers to “demonstrate that the project generates net positive impacts on the well-being of women and that women participate in or influence decision-making.”

While the third edition is currently still under review, these revisions, if approved, will provide the impetus for more proactive efforts that go beyond the “do no harm” minimum to actually demonstrate positive impacts. Both new and existing projects will need to adhere to the new version of the standards once they are adopted.

Women’s Carbon Standard Takes off

In April, the launch of the WCS by the Bangkok-based organization Women Organizing for Change in Agriculture and Natural Resources Management marked another milestone. This new comprehensive standard establishes a means by which to integrate and measure women’s empowerment and participation and to reward efforts to address women’s concerns in project development. The WCS is designed to be integrated with carbon projects, but it is actually relevant to a wide range of rural development activities.

Representative of a growing trend of supporting results-based approaches to development assistance, the WCS offers a useful tool to demonstrate progress against a clear set of benchmarks. The criteria have been developed by gender experts and have undergone broad consultation in an effort to find the right balance between broadly applicable standards and flexibility in local contexts. The criteria focus on a set of six general domains: income and assets, time, education and knowledge, leadership, food security, and health.

The first three projects seeking approval under the WCS are in the Mekong region and are funded by the Asian Development Bank.

At the Bonn Climate Change Conference in June, WEDO and REDD+ SES released a booklet to guide national integration of gender within the system of international REDD+ safeguards. The “From research to action, leaf by leaf: getting gender right in the REDD+ Social and Environmental Standards” booklet provides a set of three action checklists which allow self evaluation along a spectrum from “not yet gender sensitive” to “gender transformative.”

The checklists include:

  1. Essential actions to develop a gender sensitive program,
  2. Actions to address the gender components of the REDD+ SES Principles, Criteria, and Indicators, and
  3. Actions to develop gender responsive country-level interpretation of indicators. This booklet provides a very practical set of measures to guide national REDD+ program managers. For example, one criteria suggests establishing a 50% quota for women participating in workshops and meetings while another proposes analyzing minutes or records from meetings to determine if women are participating fully and effectively.

Still a Long Way to go

In the last six months, there has been demonstrable progress in providing REDD+ project developers and national program managers with standards and tools to guide actions to mainstream gender in REDD+. For some project developers already cognizant of gender and women’s needs, taking up the suggestions contained in the standards will be relatively easy and require few additional resources.

For instance, some project developers may simply need to conduct a baseline assessment and begin to collect gender differentiated data to measure results. However, national programs and subnational initiatives with a lower baseline will require substantial resources to address gender issues and women’s empowerment, and in some cases, external expertise.

In order to maintain the momentum which has been created this year, it is important that additional resources from both public and private sources are committed to address gender mainstreaming in REDD+. These resources should test the implementation of the tools and standards through practical initiatives and project activities which deliver benefits down to the local men and women managing forests.

Amanda Bradley is the Senior Manager for Social and Community Benefits at TerraCarbon, an advisory firm that supports the development of forest and land based carbon projects.
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Credits From First African
Government Backed REDD+ Project Go On Sale

The Makira REDD+ project in Madagascar, which aims to protect 400,000 hectares of forest, announced its carbon credits are for sale becoming the first of its kind to put credits on the carbon market. Devastated by illegal rosewood logging just a few years ago, the Makira REDD+ project is part of Code REDD, a group of projects with high standards on conserving biodiversity and supporting local livelihoods.

This article was originally published on Mongabay.com. Click here to read the original.

19 September 2013 Carbon credits generated from protecting thousands of hectares of endangered rainforest in northeastern Madagascar have now been certified for sale, reports the Wildlife Conservation Society (WCS), the project’s main organizer. The development represents the first time that credits generated by African government-owned project have been put on the voluntary carbon market.

The Makira REDD+ Project aims to protect 400,000 hectares of forest in a part of Madagascar that has suffered from illegal rosewood logging. Backers estimate the initiative will prevent emissions of 32 million tons of carbon dioxide over the next 30 years, or roughly the annual emissions of the state of Montana. More importantly, the project will help protect some 20 species of lemurs, including more than a dozen at-risk species, while creating new economic opportunities for locals living in and around the park, according to WCS.

“Along with its benefits to wildlife, the sale will directly benefit local communities living around the protected area by allocating 50 percent of the net revenues of carbon sales to improve local infrastructure, provide health and education services, and support training, inputs, and technical assistance for sustainable agriculture,” said the group in a statement. WCS is charged with implementing the project.

The Makira REDD+ Project was conceived before the March 2009 coup that displaced Madagascar’s democratically-elected president from power. The coup cut off the flow of critical conservation funds, spurring an orgy of illegal logging and poaching in Makira and the neighboring protected areas of Masoala and Marojejy. While some of the illegal logging and rosewood smuggling was linked to political officials who took power after the coup, the activity has since slowed dramatically, offering opportunities to strengthen conservation efforts in the region, including bolstering the Ministry of Environment and Forests, whose staff made heroic efforts to stave off illegal logging during the worst of the 2009 political crisis.

Accordingly, Madagascar’s Secretaire General of the Ministry of Environment and Forests welcomed the milestone validation and verification under the Verified Carbon Standard (VCS).

“Green growth is the fruit of a green economy within the context of sustainable development realized through the implementation of an appropriate management of natural resources and the valuing of biodiversity,” said Pierre Manganirina Randrianarisoa in a statement. “Thus, the sale of carbon stored in the protected forests of Makira Natural Park provides a significant financial opportunity for Madagascar.”

The Makira REDD+ Project is run by the Makira Carbon Company, a non-profit subsidiary of WCS. The project is part of Code REDD, a bloc of REDD+ projects that set high standards for conserving biodiversity and supporting local livelihoods. Code REDD aims to create a class of premium REDD+ offsets to set their credits apart from those generated by less stringent and more controversial projects.

WCS president and CEO Cristií¡n Samper says the Makira project sets a good example for what REDD+ can deliver for conservation in developing countries like Madagascar.

“This sale is a major step forward for the Government of Madagascar in advancing the use of carbon credits to fight climate change while protecting biodiversity and human livelihoods,” said Samper. “WCS congratulates Madagascar and is proud to partner with them on the Makira REDD+ project.”

“The sale of these carbon credits has triple bottom-line benefits; it helps wildlife, local people, and fights climate change,” added Todd Stevens, Vice President of the Makira Carbon Company.

Rhett Butler founded Mongabay in 1999 and currently serves as its president, head writer and chief editor.
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Almir Surui: Perseverance Under Pressure

18 September 2013 | Almir Surui was ten years old when the first logging truck came to his tiny village deep in the Amazon Rainforest. It came to chop down a single stand of centuries-old mahoganies, and it came with the grudging approval of the chiefs. After all, they reasoned, it was just one truck, one stand, one time, and for a good cause.

Long an isolated and elusive people of the Amazon, the Paiter-Surui were first contacted by Brazilian authorities in 1969. Numbering 5,000 at the time of First Contact, more than 90% of them died of tuberculosis and smallpox before Almir was born in 1974. He grew up under siege – from white invaders on one side and displaced indigenous people on the other.

By 1983, however, things were looking up. The Paiter-Surui (often just called “Surui”, the name Brazilian authorities bestowed upon them after misinterpreting a neighboring people’s name for “enemy”) had won demarcation for their territory from federal authorities, and they were keen to shift their strategy away from war and bloodshed and towards politics and commerce. That meant they needed money for travel to and from Brasilia.

The loggers offered to cover that expense in exchange for one stand of trees – worth, it turns out, orders of magnitude more than what the Surui received for them.

“That first sale made sense, given the information they had,” says Almir, who became overall chief of the Surui in late 2010. “But that sale led to another and another. It opened an era of short-termism focused on easy money, and soon everything was out of control. Logging trucks were running roughshod over our territory.”

The trucks came by the scores on roads built with money from the World Bank’s Polonoroeste initiative (the “Northeast Pole Northwest Region Integrated Development Program”). By 1986, high-ranking officials from the Indigenous Affairs Agency (Fundaçí£o Nacional do índio, FUNAI) were encouraging the logging operations in exchange for kickbacks from timber companies, and Almir – though barely into his teens – became one of their most vocal critics.

“Many of our own people supported logging,” he says. “I’d argue they had become fixated on the tangible income from logging while overlooking its intangible but very real cost.”

It was a cost not limited to logging, and not borne just by the Surui.

“Neighboring people like the Cinta Larga accepted money from miners, only to find that mining killed the fish,” he says. “Now they spend more money on groceries than they ever got from miners.”

Off to School

By 1988, Almir had achieved an impressive academic record which – together with his eloquent critique of logging – earned him a spot at the Centro de Pesquisa Indigena. The brainchild of indigenous leader Ailton Krenak, the Centro brought young Indigenes like Almir out of the rainforest and into the Universidade Federal de Goií¡s, where he studied applied biology.

Upon graduation in 1992, he was elected chief of his clan, the Gameb. He dutifully married and settled into his village, where he planned to implement a sustainable agriculture program. Tribal elders – most of whom were under 40 themselves after the devastating plagues of the 1970s – had other plans.

The Go-Go Nineties

The Rio Earth Summit had just launched the United Nations Framework Convention on Climate Change (UNFCCC), and the World Bank had just launched the Rondí´nia Natural Resources Management Project (Planafloro), which was an effort to right the wrongs visited by Polonoroeste.

Unlike its predecessor, Planafloro created a vehicle for the active involvement of forest people and local NGOs. Almir, though not even 20 years old, was elected head of CUNPIR (Coordenaçí£o ads nacoes de Povos Indí­genas de Rondí´nia, Sul do Amazonas e Norte do Mato Grosso/the Coordination of Nations and Indian Peoples of Rondí´nia, Southern Amazonas and Northern Mato Grosso), which represented indigenous groups across three Brazilian states.

It was a position that soon brought him into conflict with organizations he had long admired, some of which had been helping indigenous peoples in Rondí´nia since the early 1970s

A Break With Old Friends

“This was a painful period for me,” he says. “These organizations had played an important role in the indigenous movement – they had done some truly wonderful work, and without them, I might not even be here today – but by 1994, a new generation had taken over. They had a very paternalistic attitude towards us, and some of them thought we should do what they told us to do and not talk back.”

He first encountered that paternalism after CUNPIR tried tracking the Planafloro funds that were going into FUNAI coffers. They found much more was going in than coming out, and little of what disappeared was being accounted for.

“It was clear that we needed to push for more transparency, but some of the more radical organizations responded by sending a letter to the World Bank demanding an end to all disbursements under Planafloro,” he says. “Well, first of all, that’s not what any of us wanted – we wanted transparency and good governance – and, second of all, they sent that letter on our behalf, but without our approval.”

Experiences like this sparked his lifelong quest to develop sources of income that are independent of charities but don’t require the destruction of trees.

The Quest for Independence

By the late 1990s, Almir had become a recognized political figure in the state of Rondí´nia, where the bulk of his territory is located, but he didn’t feel he’d done much for his own people. So he resigned his position at CUNPIR and dedicated himself to reorienting the tribal economy towards sustainable products such as non-timber forest goods, handicrafts, ecotourism, and organic agriculture.

The Surui, however, were completely dependent on aid and income from logging for their food and health-care. They lacked the agricultural expertise to implement his sustainable land-use program, and they lacked the business acumen to market such products even if they could produce them. Plus, impoverished members of his people had a hard time focusing on potential income from new activities when they could accept concrete bribes from loggers today.

Gradually, Almir conceived a 50-year economic redevelopment plan that would build up the required expertise by introducing sustainable sources of income where possible, providing reliable healthcare and – critically for the creation of a sustainable economy – teaching the skills needed to thrive in the modern world.

But the sine qua non was a solid governance structure, and for that he still needed the support of international development agencies like the Norwegian Agency for Development Cooperation (NORAD), which had long helped with health care, and the United States Agency for International Development (USAID). Both were instrumental in helping the Surui build up and maintain inclusive governance across the territory, and USAID continues to support such activities to this day.

“One day, we’ll ween ourselves of that, too,” he says. “That’s when we’ll know the 50-Year Plan is succeeding.”

Getting Paid to Plant Trees

In 2004, all four Surui clans were feeling the precariousness of their situation, and each was looking for a way to feed their people if and when the aid dried up. The clan chiefs convened a meeting to discuss their business proposals. One of the chiefs wanted to ramp up logging. One wanted to dig for gold or diamonds. And one wanted to bottle water.

Almir said he wanted to plant trees.

“The Amazon is ill, and I knew that it was up to us to save it,” he says. “I knew that saving the forest was good for everyone, and I knew there were organizations working to save it. I wanted to work with them, to earn our income by saving the forest.”

He was promptly ridiculed by everyone in the room, including those within his own clan.

After the meeting, he went into town, logged onto his computer, and typed “reforestation Amazon” into Google. The first hit was a Swiss organization called Aqua Verde.

“It’s run by a man named Thomas Pizer, and he’s a true friend of the forest,” Almir says. “He was looking to plant trees, and he wanted to hire locals to do it.”

That meant he was offering compensation for a clear and tangible outcome – the kind of economic activity that Almir wanted to nudge his people towards.

“That was a giant step in the right direction,” Almir says. “It would demonstrate that we can earn money by planting trees instead of chopping them down.”

While waiting for that funding to come through, he learned that the Amazon Conservation Team (ACT) had worked with another indigenous people, the Xingu, to create a “cultural map” of their ancestral land. The map identified sacred burial grounds, traditional hunting grounds, and historic sites, among other things. Such a map, he reasoned, could help him formulate a management plan and also promote cultural cohesion among his people.

In December of 2004, he approached ACT, which secured a grant from the Annenberg Foundation to develop a cultural map of the territory.

“This might not seem like much, but it was huge,” says Almir. “It meant we could once again offer our people an opportunity by delivering something of value. That’s tremendously empowering, and helps break the cycle of programmed helplessness.”

What’s more, through ACT he developed a deep and lasting friendship with Vosco van Roosmalen, then head of ACT Brazil, which eventually broke off to form a separate entity, Equipe de Conservacao da Amazonia (ECAM).

The First Logging Moratorium

Dangling the mapping project, with its temporary jobs and its promise of cultural revival, as a carrot, Almir was able to win support from other chiefs for a moratorium on logging.

“The money we got for the mapping project in no way made up for the money we lost by giving up the logging, but it was honest money,” he says. “Deep down, that’s what people want – they want to carry their own weight, but they also need to feed their families.”

When the mapping project started, the logging stopped – but that earned him the animosity of loggers, who placed a $100,000 bounty on his head. For two years, he was looking over his shoulder.

That ended when the mapping project drew to a close and logging started creeping up again. Almir was once again on the road with his hat – and his cultural map – in his hand.

Google Earth

In 2007, Almir logged onto Google Earth for the first time.

“I did what everyone does: I zoomed into my home town,” he says. “But instead I found something like ‘uninhabited territory’.”

That doesn’t mean it wasn’t beautiful. In fact, he clearly saw the way his territory stood out as a sort of oasis of green in a sea of yellow and gray. It was shaped almost like an arrow, and surrounded on all sides by dead land and farms.

“Two things went through my head,” he says. “One was that this could be a great tool for monitoring our forest, and the other was that Google Earth had missed something really important.”

With a trip to San Francisco already in the works, he convinced van Roosmalen to arrange a meeting with Rebecca Moore, who manages Google Earth Outreach. She remembers the conversation well.

Almir the Salesman

“He came in with Vosco, and they sat on the other side of the conference table from me,” Moore recalls. “He was wearing his feathered headdress and speaking in Portuguese, with Vosco translating. It didn’t seem promising.”

But then Almir stood and told the story of his people: of how they had long defended their territory with bows and arrows, and how they shifted to pen and paper, and were now shifting to computers.

“The whole room got very quiet,” she says. “I felt transported to that place he was telling us about, and then he told us they had made a map.”

At her request, he unfurled the cultural map, which he had rolled up in a sheath. She called in other “googlers”, as employees call themselves. Among them was John Hanke, the man who founded Keyhole, which Google bought in 2004 and rechristened “Google Earth”.

“John comes in, and Almir compliments him on his technology,” Moore says. “Almir goes on and on about what a great product we have, and he invited us to come down and see his territory – but then he starts giving us a hard time.”

She says Almir pointed at his map, and then he pointed at her computer, and then he asked why his territory was blank on Google Maps and Google Earth.

“If you go to Sao Paulo or Rio, you see cultural information,” he said – by Moore’s recollection (Almir says he goes on autopilot when he speaks, and rarely remembers what comes out of his mouth).

“You see roads and hotels, museums and schools, videos and photographs,” he continued. “But if you go to our territory, no one would ever know that there are people there, or that they have lived there for generations, or that they are struggling to survive.”

Whatever the exact words, he left with Google’s firm promise to put his territory on their maps – a promise they have kept in spades.

The Seeds of REDD

On the same trip, he ran into Beto Borges, who runs the Communities and Markets initiative of environmental non-profit Forest Trends (publisher of Ecosystem Marketplace). The two had first met in Almir’s days at the Centro.*

“At the time, I thought Forest Trends was like Aqua Verde, and that it had money for reforestation,” Almir says. “Beto said that wasn’t the case, but he told me that we might be able to earn carbon credits by planting trees, because they lock up carbon.”

Borges told him there was carbon funding for planting trees and carbon money for saving trees.

“If you earn it by planting trees, it’s called ‘A/R’ (afforestation/reforestation),” he said. “If you earn it by saving endangered forest, it’s called ‘REDD’ (reduced emissions from deforestation and degradation).”

“This was like a dream come true,” says Almir. “The payments are based on environmental results and not on philanthropy. We would be providers of an ecosystem service and not wards of the state, because we would be fulfilling a very real need for carbon sequestration.”

Forest Trends commissioned a study to make sure indigenous people did, in fact, have the legal rights to generate income from the carbon captured in their trees. Then Almir and Borges pieced together a network of NGOs, consultancies, and lawyers, each with a different role.

Building the Team

“He was adamant that we create a consortium,” says Borges. “He wanted several partners, each doing what they do best, instead of one entity, because he said he never wanted to become dependent on one organization. That’s how Forest Trends works as well, so it was a good fit.”

Almir brought in ACT and the Associaçí£o de Defesa Étnica e Ambiental Kanindé (the Association of Ethnic and Environmental Defense, or “Kanindé”), with whom he’d been working since the early 1990s, while Borges brought in the Instituto de Conservaçí£o e Desenvolvimento Sustentavel do Amazonas (The Institute for the Conservation and Sustainable Development of Amazonas, or “Idesam”) and the Katoomba Incubator, a project of Forest Trends designed to support new initiatives that can then be replicated around the world.

The first job was to explain the project to the tribe and see if they understood it and supported it. Representatives of Kanindé and ACT spent months visiting remote villages and explaining the concept.

Then they needed to see which parts of the forest were really in danger – a task that fell on IDESAM. They looked at other indigenous people who had faced the same needs as the Surui and then calculated the amount of forest that would likely be destroyed through continued logging and eventual conversion to farmland. They concluded that, of the 248,147 hectares that comprised the Surui territory, at least 13,575 hectares would have to be converted to farmland over the next 30 years if the people were to survive – an amount that translates into 7.8 million tons of carbon dioxide. If the Surui instead saved that forest, they would avoid more than 90% of that deforestation, and could expect to earn carbon credits for roughly 5 million tons after accounting for uncertainty.

Almir presented the plan to the Forum of the Clans, and explained that all income would go into a fund to develop schools and jump-start the 50-Year Plan. Once they understood the concept, the other chiefs agreed to unilaterally implement a new moratorium in 2009.

Soon there were more death threats, prompting ACT and then ECAM to send Almir abroad for his own safety. During these trips, he continued to promote the project and raise funds to keep his people going while waiting for the project to kick in.

Bearing REDD Fruit

Then they made their case to the Verified Carbon Standard (VCS) that without carbon finance, they would have to destroy that much forest. They also made their case to the Climate, Community, and Biodiversity (CCB) Alliance that they would preserve the forest in a way that conserves biodiversity and supports their culture.

For three years, the bulk of his people resisted logging, as the tribe subsisted on funding from USAID, NORAD and others. As the years went on, however, the moratorium began to take its toll. A small but vocal minority called for the resumption of logging.

“We’re not a monolithic entity,” Almir says. “Some of our people wanted to move forward with logging, and others were simply desperate.”

In 2010, Almir was named Labiway Esaga – the overall chief of all Surui clans – but his leadership was about to be tested.

So Close, but oh, so…

In June, 2012, VCS auditors “validated” the project – meaning they signed off on its design. That meant there was agreement that without carbon finance the Surui would have to chop a certain portion of their forest to survive. It also meant that the steps the Surui had outlined for preserving that patch of forest made sense.

The next step was the critical one – this was the “verification” phase, where auditors from the Instituto de Manejo e Certificaçí£o Florestal e Agrí­cola (Institute for the Management and Certification of Forests and Farms, or “Imaflora”) and the Rainforest Alliance would look to see that the Surui were, in fact, doing what they said they would do to ensure that those steps were, in fact, being taken.

IDESAM immediately began reviewing satellite images to begin the validation and quickly realized that a 2010 fire in the territory had taken more land than the Surui had realized.

“That fire took ten days to put out, and we had reported it as best we could, but we hadn’t realized how extensive the damage was until we saw those satellite images,” Almir says. “The very day that we got the good news about the validation, Idesam told us that the fire damage meant we’d have fewer credits than we thought we would.”

Fortunately, as the verification process continued, auditors found that their loss wasn’t as bad as they had feared. Logging threats escalated, however, and when police uncovered evidence of a bungled attempt to collect the bounty on Almir’s head, federal authorities responded by providing bodyguards from the elite Força Nacional.

The Loggers Return

As the year dragged on, a Surui patrol found evidence of recent activity on an old logging road, so Almir turned to local authorities for help. When they demanded proof, he started tracking the loggers and documenting their actions.

When authorities still refused to act, he began posting images onto the internet and using both local and international media to ratchet up pressure on authorities to act. He also called out members of the Surui who he believed were colluding with loggers.

“I know that some of our people were looking the other way in exchange for gifts from the loggers,” he says. “Fortunately, they were in the minority, and it’s a testament to my people and to the governance structures we have implemented that more of them didn’t give in to that temptation.”

Meanwhile, the verification process was still underway, and the Surui were lining up buyers.

“We’re in discussions with several potential buyers, but Natura came through first,” says Almir. “They really understood the concept and the project, and they asked the right questions.”

Natura was all but sold on the deal by early 2013, but the Surui wouldn’t have credits to sell until the project was verified. That happened in May, 2013, and in August Natura officially made its purchase, which was announced last week.

“REDD+ is a bridge between the indigenous world and the non-indigenous world, so it’s an appropriate way to begin this process” said Almir in making the announcement. “It creates a vehicle through which the capitalist system can recognize the value of standing forests, and indigenous people can be rewarded for preserving them.”

* CORRECTION:  This article originally stated that Borges had written his master’s thesis on Surui efforts to develop a sustainable agriculture program, but that was not the case. We apologize for the error.

 

Additional resources

The Peru Carbon Fund:
A Peruvian Standard For Peruvian Forests

The Peru Carbon Fund’s new PCF Standard aims to generate something it calls “Carbon Capture Certificates” for people who plant native trees on previously deforested land. It’s a novel approach that allows for landowners to reforest and harvest while accessing carbon payments.

12 September 2013 | Most carbon standards aim to serve either regional compliance programs or global voluntary models. The Peru Carbon Fund (PCF) has carved out a third niche: one designed for the voluntary market and the Peruvian legal landscape.

The PCF Standard aims to promote the planting of fast-growing native trees on lands that are currently being used for farming and ranching. It allows for harvesting so long as the carbon isn’t being dissipated into the air. Wood for construction, for instance, is permitted. Katherine Hamilton, a Strategic Advisor with Ecosystem Marketplace, recently sat down in Lima, Peru with PCF Executive Director Alessandro Riva to chat about the new organization’s work within the region.

KH What is the Peru Carbon Fund?

AR The Peru Carbon Fund is a privately-owned Peruvian company created to gather funds from investors, both corporate and individual, that in return seek carbon-neutral certification, using Carbon Capture Certificates (CCCs). The funds are fully invested in subsidizing reforestation projects in the Amazon.

You are developing an internal standard for these projects. How does it work?

PCF has created a robust internal standard called the PCF Forestry Standard with the objective of issuing Carbon Capture Certificates (CCC). These CCC’s come exclusively from reforestation projects dedicated to produce timber from native, fast-growing species in the Amazon, which will reduce deforestation and aid climate change through the creation of jobs.

We think we have identified the legal and silvicultural characteristics that plantations must possess to be ecologically and economically successful. Legal aspects pertain to specific property and land use regulations to avoid improper reforestation activities; the silvicultural regulation establishes that native species solely are a way to minimize effects, as various successful species have already been identified.

Each CCC is issued for a specific investor in order to compensate its carbon footprint. The certificates are not resalable to other companies; they are not tradable credits. PCF works as a direct and unique link between companies and farmers, reducing significantly the transaction and certification costs.

In general, the PCF Forestry Standard is a mechanism with specific requirements that correspond to a Peruvian reality and legal frame; therefore it’s a standard that most Amazon inhabitants or corporate investors can relate to, allowing for a fast spread of the program nationwide.

Why is PCF creating its own internal standard?

We believe it’s impossible to target a problem as large as deforestation in Peru with a standard that was not made specifically for the Peruvian reality. Additionally, we believe that the extremely high costs of implementing international standards in the Peruvian jungle are the main reason why they haven’t succeeded in turning around this dramatic situation.

The PCF Forestry Standard was created with the goal of simplicity, massive applicability, local knowledge, and zero cost – taking into account what international standards don’t provide. We can say that it’s 100% free for any farmer to apply for the standard; obviously they have to fulfill the requirements, but we see it as the only way to promote properly done reforestations in Peru in order to end deforestation.

You and your colleague, Claudio Mosi, often cite job creation as one of the most important goals of the PCF.

Deforestation in Peru is a socioeconomic problem due to lack of jobs and formal opportunities in the jungle. The slash and burn cycle is responsible for over 80% of deforestation in Peru and is done by locals and immigrants as a way of sustenance for their families.

The only way to halt this cycle is to provide a significant amount of jobs, and the only industry that has the size and characteristics to be successful and easily applied in our jungle is forestry, specifically reforestation for sawn wood.

In this context, the PCF Forestry Standards have established clear guidelines of how reforestation must be done, through the ordered use of lands and the protection of forests.

How does PCF manage transaction costs?

If landowners comply with the PCF Standard, we will proceed with the certification free of charge. All the costs related to the assessment and certification of each landowner will be covered by PCF with the sales of the resulting Carbon Capture Certificate of its plantations.

From the total proceedings, 60% go directly to the landowner to cover all the maintenance and silvicultural costs that must be done.

PCF acknowledges reforestation as an expensive process, and that plantation management costs must be covered in order to produce significant volumes of timber. These costs related activities must be covered by selling CCCs at a price that covers the price of processing.

What is your experience in working on reforestation?

The Peru Carbon Fund team has over ten years of experience in the Amazon jungle, working with reforestation projects. We promote fast-growing, native species for the production of sawn wood and its derivates. Over time, we have worked to collect an immense amount of information, and closed a full growth-commercial-cycle from collection of seeds to the commercialization of the harvest, thus offering tree farmers realistic information on their future proceedings.

All this experience, which includes a full recognition of the local social and economic conditions, is captured in the PCF Standard.

Tell about your recent offset transaction with the company Packing and Plastics.

It is part of Peru Carbon Fund services to measure carbon footprints in order to compensate emissions with our Carbon Capture Certificates. Packing and Plastics Peru contacted us last year to do this. They were being required by their local clients, mostly exporters, to obtain a “green” certificate in order for them to better compete with their products abroad. We measured their carbon footprint and they turned into 100% Carbon Neutral, the first plastic company in Peru to obtain this certificate.

Developing your own standard, not to mention facilitating reforestation projects, is not an easy task. . .

There are several challenges, but the most important ones we are facing is the promotion of PCF throughout the Peruvian Amazon – that our reforestation programs are designed to create sustainable development and wealth through the creation of jobs and ultimately, to end deforestation.

Secondly, to change the mindset of companies in our country which find no value in these issues. By taking action through our business model, companies could realize the benefits inherited by promoting this process.

And what gets you to the office each day?

Ultimately, our main goal is to end the large scale deforestation of the Amazon jungle. The Peruvian Amazon jungle has its own idiosyncrasies and characteristics and it is necessary to recognize those in order to provide a viable solution to this large scale problem.

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Katherine Hamilton is an independent consultant and Strategic Adviosr for Ecosystem Marketplace. She can be reached at [email protected].

This Week In Forest Carbon: A Beautiful Arrangement

Latin America’s largest cosmetics company recently purchased 120,000 tons of carbon offsets from a REDD project in Brazil’s Amazon rainforest that is led by an indigenous tribe. This transaction marks the first sale of forest carbon offsets developed by indigenous people and can be used as a template for other indigenous peoples as well as companies looking to meet their Corporate Social Responsibility requirements.

This article was originally published in the Forest Carbon newsletter. Click here to read the original.

11 September 2013 | Brazilian cosmetics giant Natura Cosméticos has  become the first buyer of carbon offsets produced from a project led by the Paiter-Suruí­, an indigenous people who generated the credits by saving endangered rainforest under the Verified Carbon Standard’s (VCS) Reduced Emissions from Deforestation and Forest Degradation (REDD) methodology.  

“REDD+ is a bridge between the indigenous world and the non-indigenous world, so it’s an appropriate way to begin this process,” says Chief Almir Narayamoga Surui, who spearheaded the effort. “It creates a vehicle through which the capitalist system can recognize the value of standing forests, and indigenous people can be rewarded for preserving them.”  

Natura, Latin America’s largest cosmetics maker, purchased 120,000 tons of carbon offsets from the project as part of its efforts to reduce its greenhouse gas (GHG) emissions by one-third from 2006 levels by the end of 2013.

 

Five years in the works, the transaction required the development of a REDD template that can now be used by other indigenous people across the Amazon, as well as companies looking to meet their Corporate Social Responsibility requirements.  

 

Meanwhile, if the staff at the California Air Resources Board (ARB) gets its way, the board  will sign off on a proposal for California’s cap-and-trade program  to shift the invalidation risk for forestry projects away from forest owners to the buyers of offset credits from approved forestry projects.  

 

The so-called buyers’ liability provisions featured in the cap-and-trade regulations allow the regulators to invalidate credits that are found to be faulty or fraudulent and require regulated entities to surrender replacement offsets. Currently, forest owners are responsible for the invalidation risk, but the buyers bear the risk for the other project types eligible for the California program.  

 

The regulators are aiming for consistency in the buyers’ liability provisions, seen as a noble goal and one that could propel additional development of forest projects, according to some stakeholders. However, oil major Chevron pushed back against the forestry proposal in comments submitted to the regulators in early August.  

 

“ARB’s existing rule places responsibility with forestry owners because forests are a unique type of offset,” says Lloyd Avram, Chevron’s manager of state government affairs. “The forest owner has control over the forest and can manage it in accordance with the requirements or choose not to do so.”

 

“We are concerned that by changing the invalidation risk to the covered entity that uses the offset, ARB is adding unworkable burden and risk to forestry offset buyers which will ultimately discourage use of this important resource to reduce GHGs under ARB’s cap-and-trade program,” he says in the comments.

 

These and other stories from the forest carbon marketplace are summarized below, so keep reading!  

 

With the redesign of our  Forest Carbon Portal  and continued expansion of our  Spanish language sister website Valorando Naturaleza, Ecosystem Marketplace hopes to continue to bring you this kind of fresh information in the second half of 2013! If you value what you read, consider supporting Ecosystem Marketplace’s Carbon Program by contacting  Molly Peters-Stanley. We’re $50k away from being able to publish this year’s State of the Forest Carbon Markets report in a few months’ time – can we count on your support?

 

Here at Ecosystem Marketplace, we are transitioning from data collection to report-writing mode in order to bring you this year’s State of the Forest Carbon Markets report. For those of you developing forest carbon offset projects, if you have not yet responded with data and wish to participate in the survey, please notify  Daphne Yin.

 

—The Ecosystem Marketplace Team

If you have comments or would like to submit news stories, write to us at [email protected].


News

International Policy

Paradise Rejected  

A week after Ecuador announced the dissolution of its Yasuni-ITT initiative, which sought international donations in exchange for not drilling large swaths of rainforests, President Correa announced another surprise: that  Ecuador would also cancel aid from Germany. Germany’s decision to oppose the Yasuni-ITT plans has been blamed for the reluctance of other international donors to participate. Despite withholding funds for that initiative, Germany and Ecuador had agreed on a 34.5 million Euro reforestation program set to start this year that would focus on REDD programs and managing forest protection areas. In a surprise declaration, President Correa just announced the dissolution of this program, citing German “arrogance” for criticizing Ecuador’s drilling plans. Deforestation in Ecuador  has already increased  300% ahead of last year’s rate.
 

Getting jurisdictional

The Governors’ Climate & Forests Fund (GCF Fund) has just issued its first  Request for Proposal  through a grant funded by the US Department of State. Civil Society Organizations are invited to partner with GCF states or provinces to submit proposals to address collective needs to improve forest carbon assessments and capacity. Funding will be provided to proposals which strengthen or improve GCF state and province forest carbon assessments and capacity, and strengthen or improve subnational REDD+ programs and measurement, reporting and verification methodologies and capacity that support national REDD+ strategies.  Under this round of funding, the GCF Fund expects to support projects in all GCF tropical forest countries: Brazil, Indonesia, Mexico, Nigeria and Peru. Proposals are due on October 11.

In plain sight

In this opinion piece, Nigel Turvey, a fellow at Charles Darwin University, argues that Australia’s shadow environment minister Greg Hunt misses a key point about rainforest carbon:  that REDD already offers opportunities to protect tropical forests. Hunt hopes to broker a deal on rainforests and carbon reductions during the 2014 G20 meeting located in Australia. Australia may be ignoring REDD opportunities after its own $100 million AUD investment into the Kalimantan Forest Carbon Partnership proved unsuccessful. However, Turvey argues that policymakers have too many aspirational goals for REDD, and that going back to the basic focus on forests and people is the best hope for improving these projects. He ends with an appeal for the future Australian government to let REDD credits into its planned emissions trading scheme.  
 

Project Development

Hectares to cover before we sleep

Following the landmark use of political risk insurance on a REDD+ project in Cambodia, project developers elsewhere have also tapped into the insurance – most recently on a bamboo reforestation project in Nicaragua. Despite these examples of early mover activity, awareness of political risk coverage and how it can help finance carbon offset projects is still very limited.  A new Ecosystem Marketplace article  provides a case study on the use of political risk insurance in Nicaragua before discussing the capacity for it to be used on other carbon offset projects, and additional innovation that seeks to cover a broader set of risks, political included.  
 

A different sort of insurer

European insurance giant  Allianz is considering expanding its business  of sourcing carbon offsets after buying enough credits to cancel out its own emissions using offsets from Infinite Earth’s Rimba Raya REDD+ Conservation Project in Indonesia – one of the world’s largest REDD projects, developed in accordance with VCS guidelines. According to Nicolai Tewes of Allianz, the insurer is looking into potentially investing in other offset projects on behalf of its clients. Allianz has a history of sourcing offsets from other projects, including the Kasigau Corridor REDD project in Kenya that was developed by Wildlife Works and validated and verified to VCS and the Climate, Community and Biodiversity (CCB) Standards.  
 

Practicing what it preaches

The World Agroforestry Center (ICRAF), an organization whose research includes climate change adaptation and mitigation in agriculture, announced that it has bought carbon credits  to offset its emissions for the next two years. This makes ICRAF the first of the Consultative Group in International Agricultural Research centers to assess and offset emissions. The organization purchased the offsets through The Carbon Neutral Company, and has captured 2,161 tonnnes of carbon dioxide (CO2) through credits from the Kasigau Corridor REDD Project, which protects more than 500,000 acres of forest in Kenya. Already, ICRAF’s main Nairobi office is carbon neutral, and the organization hopes to become fully neutral by tracking its carbon footprint and assessing regional offices.  
 

Catching sight of carbon

Even if whales aren’t spotted, carbon is guaranteed to be caught on the new OrcaSpirit Adventures tours. The company is  offsetting its whale watching and harbor cruises  in British Columbia by purchasing credits from another local project developer, the Great Bear Forest Carbon Project. The project preserves the rainforests and marine life along the British Columbia coastline. It is the first of its kind to be located in indigenous territory, and seeks to provide positive social and environmental impacts. OrcaSpirit Adventures added its enthusiasm for the local project, saying, “To directly be able to support such a cause and know where our contributions are going is incredibly rewarding, not only for our business and our industry but the surrounding ecosystems and communities affected by the conservation of this area.”  
 

Nature and nurture

An Oregon conservation group has proposed a health initiative called the  Forest Health Human Health program  that links landowners with carbon offset buyers, to be used in Willamette Valley, Oregon. The program is already in place elsewhere in the state, in Columbia County. Based on sustainable forest management, 90% of money from carbon credit sales would go into a healthcare account and the landowner would receive an “ATreeM Card.” The balance would go toward community health programs such as a scholarship fund to educate doctors on how to practice medicine in rural areas. The initiative can work for woodlots as small as 20 acres, and permits timber harvesting in the form of tree thinning or underbrush removal.  
 

Golden Ranches turning green

In 2010, a coalition of conservation organizations banded together to buy Golden Ranches, a site spanning more than 550 hectares in Alberta, Canada. Now the owners, including the Alberta Conservation Association, The Nature Conservancy of Canada, and Alberta Fish and Game Association,  have teamed up  with the locally-based Carbon Farmer to plant more than 200,000 trees on about 100 hectares of land. The Carbon Farmer works with landowners and land trusts to turn sites of previously tilled land into native forests and shrub land. The Golden Ranches site is an important wildlife corridor that links to nearby Elk Island National Park and Cooking Lake. It is hoped that the area will become a habitat for many species, including moose and songbirds.
 

Big names in a small forest

In an effort to offset their unavoidable emissions, corporate giants Microsoft and Barclays have turned to a forestry project in Kenya. The Kasigau Corridor REDD project, developed by Wildlife Works, acts as a forest corridor that links two swaths of Kenyan national forests. The project has a dual conservation and sustainable development focus, as the sale of offsets has returned more than $3.5 million to the local communities and generated jobs since 2010. The companies describe their involvement with Wildlife Works as an opportunity “for Microsoft to help create a low-carbon economy” and to have an “on-the ground partner” for Barclays’ key Kenyan markets.  
 

Getting the green light

The Democratic Republic of Congo (DRC)  just received approval  for a $21.5 million grant from the Climate Investment Funds (CIF), which will finance most of the $26.6 million Integrated REDD+ Project in the Mbuji-Mayi/Kananga and Kisangani Basins (PIREDD/MBKISS). PIREDD/MBKISS aims to carry out pilot initiatives over 5 years and is projected to save about 4 million tonnes of CO2 over 25 years. Working with stakeholders, the project will directly benefit an estimated 400,000 people and indirectly benefit up to 1.5 million people. With this approval, the DRC becomes the first ever African grant recipient from CIF’s Forest Investment Program (FIP). It is one of three African countries to be selected to serve as FIP pilot countries. Burkina Faso and Ghana are the others.  
 

National Strategy and Capacity

Fifth year’s the charm

After four years of REDD projects in Indonesia,  deforestation remains rampant and progress sluggish. Though REDD programs receive support from the national level, the slow payback period, corruption, and lack of education has plagued projects at the local and regional levels. After criticism from NGOs, the government of Indonesia  hopes to prove its commitment  through the creation of a national council on REDD+. The council, set to begin operating in September, will take over from the defunct REDD+ task force and will coordinate a nationwide REDD+ road strategy. While the council will not be able to manage projects, it will serve as a central coordination and reporting agency between the responsible Indonesian ministries.  
 

Double the money

Norway and the World Bank  just signed two agreements  with Ethiopia to provide funding for climate mitigation and sustainable land management. The first agreement will add $50 million to Ethiopia’s Sustainable Land Management Program that reduces land degradation while increasing productivity for small farmers. The program has already been successful in rehabilitating more than 190,000 hectares of degraded land since 2008. The second agreement will finance $13 million for the World Bank’s BioCarbon Fund, which will support Ethiopia’s Climate Resilient Green Management Program. The program  is currently building up  Ethiopia’s REDD+ readiness and aims to develop a REDD+ pilot program for the country.
 

Throwing money away

After three payments totaling $1 million, a Peruvian journalist has discovered that  not one tree has been planted  in the city of Pajarillo’s 5,000 acres of reclaimed land. The Peruvian city used to illegally trade coca; the 2011 reforestation project was an attempt to create an alternative source of livelihood for the locals. However, further investigation revealed only a batch of abandoned seedlings. Meanwhile, the mayor’s office has received its final payment, likely approved from a corrupt supervisor from the National Commission for Development and Life Without Drugs. A false evaluation report has also been uncovered and the case is now being investigated by a local public prosecutor. Currently, Peru receives nearly $60 million in REDD money for reforestation.  
 

Smooth sailing for the Atlantic

The government of Paraguay  just extended  its Land Conversion Moratorium for the Atlantic Forest of Paraguay, also known as the “Zero Deforestation Law.” When the law was enacted in 2004, it reduced the deforestation rate by about 90% in a country that ranked second in the world in terms of deforestation rates. Despite a mere 7% of its original surface cover remaining, the Atlantic Forest is home to 7% of the world’s flora and fauna. The law was set to expire in December of 2013.  
 

REDD+ doesn’t pan out in Panama  

Despite strong governance and capacity in relation to many other Latin America countries, Panama’s REDD+ program  faces failure as indigenous leaders pull out. Panama’s indigenous constitute 5% of the population but inhabit 31% of its land. These groups were initially involved in REDD+ planning, and Panama’s National Coordinating Body of Indigenous Peoples (COONAPIP) submitted a draft plan for REDD+ capacity building in indigenous territories in 2011. However, this plan failed to receive UN funding. COONAPIP has since withdrawn from the REDD program in March, followed by the Guna General Congress (another indigenous authority) in June. Proponents of REDD+ fear that if indigenous peoples’ concerns spread outside of Panama, it could negatively affect perception of projects in nearby countries.  
 

Finance and Economics

Tracking REDD+ tracking (continued)

Forest Trends’ REDDX and the Overseas Development Institute’s Climate Funds Update recently launched  Part V  and  Part VI, the last articles of  the organizations’ collaborative series that explains existing REDD+ finance tracking projects while identifying niches and cross-over areas to directly support more comprehensive assessments of REDD+ policy and finance gaps and needs. The series includes Forest Trends’ own new REDDX expenditures tracking initiative. In “Private Lessons for the Public Sphere,” Ecosystem Marketplace explores what policymakers can learn from today’s private sector projects, including due recognition of private sectors’ early action via public support of credited project-level activities; enacting policies that favor “zero-deforestation” or low-carbon products/commodities; and engaging with private actors to explore “carbon-linked” funding mechanisms. “REDD+ Finance: Where Next?” wraps up by identifying three concerted efforts needed to better track REDD+ finance.  
 

Human Dimension

Women leading the charge

Most research on gender and forestry issues has been focused on South Asia,  a new literature review finds. The overwhelming concentration in the region is the legacy of Bina Agarwal, a widely-cited researcher who concentrates on gender and community forestry in India and Nepal. A recent paper by Coleman and Mwangi tested Agarwal’s hypotheses about female participation in African and Latin American countries. While most of their findings reinforced Agarwal’s model, they found that women’s participation in forestry institutions did not change women’s perceptions of fairness or rules and penalties. The study also found that wages differences correlated with the probability of women leadership in forest associations and that women’s participation in leadership positions resulted in less conflict.  
 

Growing peace, one tree at a time

Increased REDD+ and National Adaptation Programs of Action (NAPAs)  could help reduce conflict  in the Central African Republic, new research by the Center for International Forestry Research (CIFOR) shows. The African state, which has suffered from political instability and civil conflict since 1960, has attributed reduced water availability and increased agriculture vulnerability to the changing climate. Despite a high awareness of climate impacts, few mitigation programs exist due to insecurity, violence and high turnover rates. The study notes that REDD+ and NAPAs are instrumental to developing linkages across diverse institutions, and could contribute to the post-conflict reconstruction process.  
 

Science and Technology Review

Cutting down time

Two scientists have discovered a way  to speed up tree measurements. Dr. Beth Middleton and Evelyn Anemaet created the new methodology after conducting research in bald cypress swamps. Traditionally, they would have to use dendrometer bands – two metal straps that bend around the trunk and are fed through a “collar,” which can allow the strap to expand and shrink to measure growth. Constructing these bands is complex and bending the material requires skillful navigation around sharp edges. The new method uses cable-tie heads that are modified to use as collars on the dendrometer bands. It requires less time (up to 20 minutes faster in field conditions) and standardizes the uniform bands to cut down on assembly time. The researchers hope that this method will be adopted into forest studies down the road.
 

Drawing a map of the world

The  Global Conference on Community Participatory Mapping on Indigenous Peoples’ Territories  drew indigenous leaders from more than 17 countries. Meeting in Indonesia, these leaders shared their experiences in mapping their traditional lands and their successes against government and corporations intent on encroaching on their lands. Through simple hand-held GPS devices, communities can catalogue their key cultural and social sites and transfer their historical knowledge into concrete data points. Mapping allows indigenous people to establish their rights to a land and identify areas of conflict with government concessions and corporate project proposals. Already, communities in Brazil, Indonesia, and Malaysia have successfully used their maps to oppose land grabs in their areas.  
 

Playing games  

A  new game-based simulation called SimPachamama  allows policymakers and communities to simulate the effects of various policy actions, including efforts to stem deforestation. The user plays a village mayor whose job is to improve local livelihoods and reduce deforestation. The game found that levying a $450 hectare tax on deforested lands could help curb forest clearing. Researchers believe that the tax would not affect the agricultural sector’s profitability, and it would have a much larger impact on reducing deforestation and improving welfare.
 

Surveying crowd appeal  

Carbomap, a new environmental survey company,  hopes to generate additional revenue for its forest mapping technology through crowd-funding. Carbomap has posted its idea on Share-In, a new Scottish-based crowd-funding platform, and hopes to generate interest and funds in its proprietary LiDAR technology. The technology, described as the “MRI Scanner of Forest Measurement,” will carry out airborne mapping of forest terrain to map and measure the CO2 emissions from the world’s forests.  The company has already been awarded an initial 141,000 pounds from the Scottish Enterprise’s SMART Scotland fund.
 

Publication and Tools

Mitigating mitigation effects  

The International Journal of Biodiversity and Conservation just published a new study titled  Local Vulnerability, Forest Communities and Forest Carbon Conservation: A Case of Southern Cameroon. Researchers found that understanding the vulnerability of forest-dependent communities is a point of departure for building more effective climate mitigation and adaptation strategies. Among its findings, the study reported that mitigation activities might make communities more vulnerable to the effects of climate change and other factors. It also argued that positive outcomes from conservation depend on the willingness and motivation of communities to engage and participate in mitigation activities.
 

Certifying Forest Management

CIFOR just issued a  report  evaluating the impacts of forest management certification and the results of efforts to halt deforestation. The paper analyzes different forest management certifications with other market interventions. The report identifies a number of knowledge gaps for the evaluation of impacts, and calls for the early and effective engagement of stakeholders, the gathering of data on biophysical and socio-economic characteristics, and the sharing of evaluation results with a broad set of stakeholders and partners.  
 

Jobs

M-REDD+ Monitoring & Evaluation Coordinator – The Nature Conservancy

Based in Merida, Mexico, the M-REDD+ Monitoring & Evaluation Coordinator will be responsible for monitoring and evaluating the on-going performance of the M-REDD+ Program, including providing technical guidance and support to ensure the quality of M-REDD+ products and deliverables. Candidates should have a BA/BS degree and 7 years’ experience in REDD+, climate change, forest conservation and/or sustainable rural development or equivalent combination of education and experience. Read more about the position  here.  
 

Business Development Manager – Ecodit

Based in Arlington, Virginia, the Business Development Manager will lead technical proposal development, develop relationships with clients and partners for current projects and new business opportunities, and cultivate and recruit global network of external experts and potential staff who will be featured in proposals. Candidates should have 6-8 years of experience and a technical expertise in one or more of the following areas: clean energy, climate change, REDD+, LEDS, food security, forest and biodiversity conservation, water and sanitation. Read more about the position  here.  
 

Lead Researcher, Colombia Land-Use Strategy – Amazon Environmental Research Institute, International Program  

Based in Bogota, Colombia, the Lead Researcher will contribute to the development of a low-emission land-use strategy in Colombia through outreach and consultation, synthesis of existing knowledge, and new analysis. Candidates should have a Master’s or PhD in environmental management, sustainability, agronomy, or equivalent experience and a minimum of 3 years of experience working in or living in tropical forest regions (preferably in Colombia). Experience in sustainable agriculture and climate change policy (including REDD) is required. Read more about the position  here.  
 

Research Assistant, Ecosystems Services and Management Program – IIASA

Based in Laxenburg, Austria, the Research Assistant will work with scenario design and model applications, particularly with respect to deforestation issues in a national context, and contribute to the further development of the model for the tropical regions and contribute publications of relevant results to peer-reviewed journals. Candidates should have a Master’s degree or equivalent in agriculture, forestry, or environmental economics with proven analytical skills and ease in manipulating large data sets. Read more about the position  here.  
 

Environment and Natural Resource Staff Associate – Tetra Tech

Based in Burlington, Vermont, the Environment and Natural Resources Staff Associate will work on both program implementation and new business development, primarily for USAID-funded projects. Candidates should have a graduate degree in forestry, environmental sciences, or related field, and at least 3-5 years of professional experience. Demonstrated excellence and qualifications in a natural resource or related field (e.g., forestry, climate change adaptation, etc…) is a plus. Read more about the position  here.  
 

Science Editor/Writer – CIFOR

Based in Bogor, Indonesia, the Science Editor/Writer will be responsible for editing “Forests News”, CIFOR’s influential blog on forestry research. Among other tasks, the Science Editor/Writer will edit articles, manage a pool of freelance writers, liaise with scientists and write for the blog. Candidates should have at least 10 years’ experience as an editor for a scientific or science-related publication and a strong understanding of environmental issues, preferably related to forests and climate change. Read more about the position  here.  
 

Sustainability Intern – Forest City

Based in Cleveland, Ohio, the Sustainability Intern will research and manage waste, water and carbon reduction benchmarking programs. Interns will work alongside Energy & Sustainability and Supply Chain procurement professionals to develop a program to record use and create recommendations on ways to minimize impact on today’s natural resources. Candidates should be pursuing a bachelors or masters degree in Sustainability or Environmental Studies and previous internships in a business setting is a plus. Read more about the position  here.  

 

ABOUT THE FOREST CARBON PORTAL

The Forest Carbon Portal provides relevant daily news, a bi-weekly news brief, feature articles, a calendar of events, a searchable member directory, a jobs board, a library of tools and resources. The Portal also includes the Forest Carbon Project Inventory, an international database of projects including those in the pipeline. Projects are described with consistent ‘nutrition labels’ and allow viewers to contact project developers.

 

ABOUT THE ECOSYSTEM MARKETPLACE

Ecosystem Marketplace is a project of Forest Trends, a tax-exempt corporation under Section 501(c)3. This newsletter and other dimensions of our voluntary carbon markets program are funded by a series of international development agencies, philanthropic foundations, and private sector organizations. For more information on donating to Ecosystem Marketplace, please contact [email protected].


Additional resources

Brazilian Cosmetics Giant Buys
First Indigenous REDD Credits

 

10 September 2013 | Brazilian cosmetics giant Natura Cosméticos has purchased 120,000 tons of carbon offsets from the Paiter-Suruí­, an indigenous people of the Amazon who in June became the first indigenous people to generate credits by saving endangered rainforest using the Verified Carbon Standard’s (VCS) for “REDD” (Reduced greenhouse gas Emissions from Deforestation and forest Degradation). The transaction is also the first of its kind, and is being watched by indigenous people across the Amazon as well as by companies looking to meet their Corporate Social Responsibility (CSR) requirements.

“REDD+ is a bridge between the indigenous world and the non-indigenous world, so it’s an appropriate way to begin this process” says Chief Almir Narayamoga Surui, who spearheaded the effort. “It creates a vehicle through which the capitalist system can recognize the value of standing forests, and indigenous people can be rewarded for preserving them.”

Natura is Latin America’s largest cosmetics maker and has committed to reduce its greenhouse gas emissions by one-third from 2006 levels by the end of 2013. A cornerstone of this effort is the Natura Carbon Neutral initiative, a public commitment to offset those emissions that cannot be reduced internally by investing in emission-reduction projects from other institutions whose values and beliefs are aligned with their own.

“Since we made a commitment to be a carbon neutral company in 2007, Natura offsets 100% of its emissions,” says Denise Alves, Director of Sustainability.

The Suruí­ will use the proceeds to jumpstart their 50-year “Life Plan”, which is designed to create a sustainable economy that blends traditional land-use practices, ecotourism, and the harvesting of non-timber forest products with modern scientific methods and procedures.

Until 1969, the Surui were an isolated people living in harmony with the forest. After losing much of their territory to illegal logging, they have become leading proponents of rainforest preservation.

“Until now, companies have looked at rainforest preservation as something they do to be nice, or as philanthropy,” says Chief Almir. “Natura recognizes that carbon neutrality isn’t just a gesture, it’s an obligation, and it’s one we all have. REDD+ makes it possible for companies to meet that obligation, and for us to become providers of an ecosystem service.”

The Surui Forest Carbon Project is designed to prevent at least five million tons of carbon dioxide from being emitted over 30 years while protecting critical rainforest habitat, and its credits have been certified under both the Verified Carbon Standard (VCS) and the Climate, Community, and Biodiversity (CCB) Alliance. The VCS employs a rigorous set of criteria to ensure that actions taken by project proponents actually did preserve the forest, and CCB provides further tests to ensure the project doesn’t harm people or habitat. The project generated its first credits in June, 2013, after an audit by Imaflora (Instituto de Manejo e Certificaçí£o Florestal e Agrí­cola/Institute for the Management and Certification of Forests and Farms) and the Rainforest Alliance confirmed that protective actions taken by the Surui had been successful.

It began in 2007, when Chief Almir Surui first approached the Washington, DC-based environmental nonprofit organization Forest Trends (publisher of Ecosystem Marketplace) for help in reforesting his people’s territory after decades of invasion by loggers. There, he learned of REDD. To lay the foundation of a carbon project being able to be developed, Forest Trends commissioned a precedent-setting legal review that concluded that not only the Surui but all indigenous peoples in Brazil with demarcated territories have carbon ownership rights.

In 2009, the four clans and 25 villages of the Suruí­ voted to impose and enforce a logging moratorium and to work with Idesam (Instituto de Conservaçí£o e Desenvolvimento Sustentavel do Amazonas/Institute for the Conservation and Sustainable Development of Amazonas) to ensure that the impacts of the Suruí­ actions were measurable, reportable, and verifiable. In 2010, Funbio (Fundo Brasileiro da Biodiversidade/Brazilian Biodiversity Fund) joined the partnership to create the Suruí­ Trust Fund and ensure that income from the project is managed responsibly and transparently. Local authorities, including Funai (Fundaçí£o Nacional do índio/National Indian Foundation), have since endorsed the Suruí­ effort as a model project and are supportive of their deal with Natura.

In addition to Forest Trends, Chief Almir credits several partner organizations with bringing the project to fruition. Brazilian nonprofit organization Idesam provided technical support to determine which portions of the 248,147-hectare territory were in danger and estimate the carbon content. Longstanding Suruí­ partners Kanindé (Associaçí£o de Defesa Etnoambiental Kanindé) and ECAM (Equipe de Conservaçí£o da Amazí´nia/Amazon Conservation Team Brazil) helped members of the Suruí­ understand the project in accordance with the principles of Free, Prior, and Informed Consent (FPIC) as articulated in Convention 169 of the International Labor Organization (ILO).

 

Additional resources

In The Colorado Delta, A
Little Water Goes A Long Way

This week is World Water Week and a coalition spanning the US-Mexico border is a perfect example of this year’s theme-water cooperation. The group is thinking outside the box to restore the Colorado River delta – using water rights markets, recaptured wastewater, and a groundbreaking new federal deal – that’s breathing new life into an ecosystem widely assumed to be gone forever.

6 September 2013 |  The Colorado River hasn’t reached the sea in fifteen years.

The two-million acre delta where a young Aldo Leopold once paddled his canoe through “a hundred green lagoons” abounding with life (“At each bend we saw egrets standing in the pools ahead…Fleets of cormorants drove their black prows in quest of skittering mullets; avocets, willets, and yellow-legs dozed one-legged on the bars; mallards, widgeons, and teal sprang skyward in alarm…”) today is a vast, empty mud flat.

For years, scientists assumed it was a dead ecosystem.

After all, the free-flowing river itself disappeared at the Morelos Dam a hundred miles upstream, where the meager portion of water left to Mexico after seven US states took their share was then funneled into irrigation canals or off to the residents of the city of Mexicali. No water passed through the dam, much less was left over for the environment: the Colorado is already over-allocated by sixteen percent. Nine-tenths of the original wetlands are gone. Much of the delta has become desert.

But in the 1980s and 1990s, something unexpected happened. During El Nií±o years, sometimes the Colorado ran high, and then water would be released through the dam to prevent flooding upstream.
In the aftermath of these floods, the landscape looked palpably healthier. As a team of scientists wrote in the Southwest Hydrology Journal, “riverbanks once choked with saltcedar and other salt-tolerant shrubs have sprouted new cottonwood and willow trees following each flood event. The floods wash salts from the riverbanks and wet the soil, allowing tree seeds to germinate and grow. The trees grow in stands…that correspond to the high water mark of each flood.”

The delta was more resilient than it seemed.

To the east of Morelos Dam, a concrete canal crosses the border. It runs for 75 miles, from the Wellton-Mohawk Irrigation District in Arizona into Mexico’s Sonoran Desert, draining agricultural wastewater from farmlands.

At the mouth of the canal, another startling thing happened. As water began flowing in the late 1970s, a vast wetland appeared. La Ciénega de Santa Clara today has grown from 500 acres to perhaps forty times that size, hosting thousands of songbirds, waterbirds, and fish.

To the astute observer, the message was clear: in the delta, a little water goes a long way.

A Water Trust

In 2008, a coalition of non-profit groups hailing from both sides of the border, including the Sonoran Institute, Pronatura Noroeste, and the Environmental Defense Fund, decided to act on that knowledge, and tap a new source for restoring water to the river: the market.

They created the Colorado River Delta Water Trust (CRDWT), which buys water rights on the open market and effectively retires them, restoring the water to the river (a mechanism known as “instream buybacks” or “water buybacks”).

“We purchase irrigation water rights in the Mexicali Valley from willing sellers, usually farmers,” explains Osvel Hinojosa, Pronatura Noroeste’s Water and Wetlands program director. Under Mexican law, the water right can be separated from the land and the water redirected to uses in other places. Now, instead of irrigating agricultural fields, the water is once again irrigating plantings of native trees and inundating riparian areas to encourage native vegetation growth.

Their biggest goal, though, has been to secure enough water to maintain a small base flow, which means the portion of stream flow in a river contributed by groundwater or other subsurface sources. Baseflows are the sustained background levels present even during dry periods.

No one has ever bought water on behalf of the environment before in Mexico, though similar mechanisms have worked in the United States and Australia. Nor has a water ‘buyback’ mechanism like this ever been carried out across national boundaries, with conservation groups pooling resources to save the river that links their countries. The CRDWT is doing something almost entirely unprecedented, both in conservation finance and in successfully cooperating to restore a transboundary basin.

Working through water markets lets the coalition act quickly, explains Hinojosa. “We saw great potential to reach an allocation of up to 60 million cubic meters per year, and particularly water with very good quality.” Pronatura Noroeste already used treated wastewater and agricultural drainage to feed marshes and estuaries in the delta, but to bring back forests in the riparian zone (i.e. the area along the banks of the river), they needed cleaner water, and the best place to get it was to simply buy it on the market.

The Sonoran Institute estimates that in the long term, the lower Colorado needs 50,000 acre-feet (61.7 million m3) (one acre-foot, or AF, represents the volume of water needed to flood an acre of land to one foot deep, or about twice as much water as a household in the US West uses in a year) for baseflows annually. Buying these rights on the Mexican market will probably cost between US $12-15 million.

Through the market, the water trust has secured about 3200 AF to date and invested about US $1 million. Their goal is to triple that in the next five years.

The buybacks are just one arrow in a quiver. The coalition stays busy: it’s also worked to secure another 6080 AF (7.5 million m3) per year of treated wastewater from the Las Arenitas Waste Water Plant to restore flows in the Hardy River, a tributary of the Colorado. CRDWT has participated in binational negotiations between the US and Mexico to ensure that the agricultural wastewater flows that maintain the Ciénega de Santa Clara wetlands will continue. They’ve protected 25,000 acres (10,000 ha) of mudflats and estuarine habitat in the delta, plus another few thousand along the Hardy and the Colorado rivers, in the El Doctor wetlands, and in riparian corridors. The idea is to create a network of restored sites: if that can be done, much of the habitat functionality for wildlife will return.

Piece by piece, they’re reassembling the delta.

“This as an ecosystem with high resiliency, and we have learned that with a little bit of water we can achieve significant restoration,” says Hinojosa.

Minute 319

It seems the higher-ups are listening. Last November, the CRDWT became a key partner in an agreement between the US and Mexican governments that aims to reconcile management of the Colorado River to certain environmental realities.

Minute 319, as the agreement is known, does a few important things. First, it spreads the effects of drought and flush years more evenly between the two countries. Previously, Mexico’s entitlement was more or less locked in: every year the US was required to send about 1.5 million AF (1.85 billion m3) of water to Mexico annually, except in cases of “extraordinary drought,” which were never defined in the original 1944 treaty between the two countries. Now, there’s a process for revising that allotment downward to reflect drought, and in turn Mexico, which lacks its own storage capacity, can keep its ‘extra’ water in wetter years behind the Hoover Dam for later use.

And for the first time, the two countries have agreed to set aside some water for the environment. Minute 319 dedicates a total of 158,000 AF (1.95 billion m3) over a five-year period: a third will support base flows, the rest a one-time ‘pulse’ flow, to mimic both historical background levels and the large springtime floods that existed in the Colorado in the years before the dams were built.

The Colorado River Delta Water Trust is responsible for securing a third of that water through its water right buybacks.

To deliver the rest, the US has agreed to contribute US $21 million to help pay for infrastructure improvements and environmental projects in Mexico, where irrigation infrastructure was badly damaged in a 2010 earthquake. These conservation projects and irrigation efficiency improvements are expected to create enough water savings for the pulse flow, so existing water entitlements won’t be cut.

An initial pulse flow of 105,000 AF (129.5 million m3) is scheduled tentatively for 2014, and no later than 2016.

Minute 319 was widely lauded as a historic deal and a landmark for transboundary cooperation. Former US Secretary of Interior Ken Salazar called Minute 319 “essentially the most important agreement that has ever been put together between the United States and Mexico on water in the Colorado River.

“The environmental component was an essential part of the negotiations,” says Hinojosa. “It opened the door and set the table for binational collaboration in more difficult topics, such as shortage criteria, joint investments in infrastructure, and storage of Mexican water in the US.”

“Local communities are the cornerstone of this process”

Within the Mexicali Valley, support runs just as high. “We have been working with these communities for seventeen years, to get them involved and excited about the restoration of the Colorado River delta,” Hinojosa points out.

Restoration projects are creating jobs, for one thing. The Mexican Federal Government provides funding for a temporary employment program in the Valley, which pays about a hundred people each year to clear invasive salt cedar and plant cottonwood, willows, and mesquite in its place.

Locals welcome these jobs, and the water trust’s investments in restoring a natural landscape that many older residents still remember.

“A farmer sold us recently 20 water rights (200,000 m3 or 162 AF per year),” says Hinojosa. “His story is similar to many of the transactions we have done. He moved to the Mexicali Valley in the 1950s, and obtained from the government the land and water rights as part of an ejido [a form of communally held land common in Mexico]. He formed a family and was able to send his children to college in Mexicali, and eventually the family moved to the city. He finally retired and the family is not interested in continuing the farming activity, and placed the water rights in the market.”

“Usually, these water rights are purchased by other farmers in the region, but also by the cities of Tijuana and Mexicali, and then the water goes outside the Valley. Since with our activities, we are keeping the water in the district and for programs that create local benefits, we receive the support from the sellers and the farming community.”

The river stirs to life

These days, the Colorado River basin is locked in the worst drought in a century. But sometime soon – whether in a year or three – the river will be connected with the sea once again during the planned pulse flow.

Long-absent local birds and marine species are expected to come back, along with the 300,000 migrating waterbirds that have historically stopped in the delta for the winter. A wealth of habitats stretching over 60,000 hectares – the forests, marshes, lagoons, mudflats and estuaries that Leopold once explored – will appear once more on the landscape.

Minute 319 is a five-year agreement, and the coalition is already thinking about the next round of negotiations. Hinojosa says at the top of CRDWT’s priorities is demonstrating that their efforts are working, and to learn as much as possible about the ecological recovery process in the delta so they can craft an even better deal next time.

The CRDWT is also exploring new funding sources to ramp up their buyback activities: they’ve moved beyond traditional foundation support to a partnership that channels money from a US buybacks program, Bonneville Environmental Foundation’s Water Restoration Certificates, to purchasing water rights in the delta. They’re also working with the Redford Center, on a public fundraising campaign called Raise The River launching this week.

“There are huge opportunities,” says Hinojosa. Not only for the Colorado River: “This process can set a precedent of international cooperation for the dedication of environmental flows and restoration.”

How Forest Carbon Projects
Protect Themselves From Political Risk

Following the landmark use of political risk insurance on a REDD+ project in Cambodia, project developers elsewhere have also tapped into the insurance – most recently on a bamboo reforestation project in Nicaragua. Despite these examples of early mover activity, awareness of political risk coverage and how it can help finance carbon offset projects is still very limited.

27 August 2013 | In 2011, a few years after US-based land-use carbon consultant Terra Global Capital (TGC) launched its Oddar Meanchey REDD Project in Cambodia, it asked the Overseas Private Investment Corporation  (OPIC)  to shield its investment from political risk.

More specifically, the project helps Buddhist monks and other community members reduce greenhouse gas emissions from deforestation and forest degradation (REDD), and it does so in a way that could serve as a template for community-based REDD projects around the world. But it’s located in a country that most investors don’t understand. So TGC asked OPIC, the US government’s primary development finance agency, to provide protection against the risks of expropriation, war, and civil unrest – risks familiar not only to Cambodia, but to countries around the world. In the very first instance of political risk insurance for a forest carbon offset project, OPIC came through with $900,000 in political risk insurance – a service that the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) also offers.

Between the two of them, OPIC and MIGA have so far insured several carbon offset projects around the world designed to promote sustainable forestry, wind farms, and solar energy, allowing them to move forward in some of the world’s riskiest political and economic environments.

Nicaragua’s bamboo kingdom

In 2012, MIGA provided its first political risk insurance to a carbon offset project on the Atlantic Coast of Nicaragua, where EcoPlanet Bamboo (EPB) has been developing a forest carbon offset project to support its work reforesting degraded pasture land with guadua aculeate, a native bamboo species. The project is just one piece of the company’s growing efforts to provide timber manufacturing industries with a sustainable alternative fiber in order to reduce pressure on natural forests.

photo of recently-cleard hillside
The production of palm oil is expanding and threatening forests in  Nicaragua’s coastal region, not far from EcoPlanet Bamboo’s sustainable bamboo plantations. For the land to be primed for palm oil, the forests are being burned, sometimes without removing the timber.

While EPB hopes to use carbon finance to meet debt repayments and support bamboo-processing activities and social programs in the area, MIGA’s $27-million guarantee backs the company’s investment in the purchase and conversion of degraded land into commercial bamboo plantations for the sale and export of bamboo fiber.  

Troy Wiseman, CEO and Co-Founder of EPB, says he was initially attracted to MIGA’s political risk coverage due to the perception of Nicaragua as a high-risk environment, especially in Europe, where EPB had the opportunity to raise debt finance for the project. Despite Nicaragua’s recent economic turnaround, the country still has a reputation among investors as one of Latin America’s least-developed countries, with high poverty rates following decades of political instability. Political risk insurance, he reasoned, could help overcome that hurdle and lower the interest rate at which EPB could access capital.

first planting
In April 2011, land preparation began at EcoPlanet Bamboo Central America’s Rio Siquia Plantation.

“Once we had political risk insurance, you could take the risk argument away because the cost of capital  would come down,” says Wiseman. “It came down for us by about 40%.”

As for the insurance itself, aside from the potential payoff in case an insurance claim is triggered, Wiseman notes that having MIGA on the contract reduces the risk that expropriation even occurs in the first place. MIGA underwriter Gloriana Echeverria says that’s partly because the Nicaraguan government is a shareholder in MIGA, which means it’s literally invested in its performance.

“This reduces the chance of expropriation because the government is unlikely to interfere with a project that has MIGA – and therefore the World Bank – as its partner,” she says. “We’ve gotten involved in over 100 cases where the investor has a certain problem with the government interfering. MIGA can mediate between the government and the investor to arrive at a solution that will make both parties happy.”

Political risk aside, the decision to invest in the project using carbon finance required taking on a significant amount of risk in its own right. “No one really had a proven bamboo methodology at a commercial level that could be duplicated,” says Wiseman. Indeed, EPB is the first organization to use a bamboo-based carbon offset methodology on a project validated under the Verified Carbon Standard (VCS) and the Climate, Community, and Biodiversity Alliance (CCBA), and is also certified under the Forest Stewardship Council for sustainable forest management.

EPB’s project is not a pure carbon offset project insofar as it derives revenues from bamboo sales. MIGA’s financial analysis of the project takes into account all revenue streams. For projects that are strictly dependent on carbon finance, Echeverria says MIGA’s financial analysis could differ in accounting for the financial sustainability of the project. A project relying solely on carbon revenues could be seen as a riskier project to insure.

Navigating the kitchen sink

For project developers trying to distinguish between OPIC and MIGA insurance, the primary difference is that OPIC requires majority US participation in an investment, whereas MIGA is open to nationals of any of its 179 member countries as long as the coverage is for a cross-border investment. MIGA is usually competitive in the riskier countries where investors are more concerned about getting the World Bank umbrella effect of deterrence, whereas OPIC tends to focus its activities in countries where a strong bilateral relationship might exist with the US. There is also a private political risk insurance market, but arguably without the deterrence effect. It is unclear whether carbon offset project developers have used this market.

bamboo growing wild
Guada aculeate bamboo growing wild in their native habitat on EcoPlanet Bamboo’s Rio Kama Plantation. November 2011.

Ultimately, MIGA can provide up to $220 million in insurance coverage per project, whereas OPIC can provide up to $250 million  – both agencies able to provide additional coverage through reinsurance. But how affordable is political risk insurance at the end of the day? And what incentives exist to help project developers invest in poor and risky countries where capital is hard to come by?  

The cost of the policy depends on the country, with insurance premiums rising significantly for particularly high-risk environments. For countries in the middle tier, the insurance itself may not be prohibitively expensive, but cash-strapped project developers looking to tap into political risk insurance can ultimately face additional upfront costs if—unlike EPB or TGC—they aren’t already in compliance with the prerequisite environmental, anti-corruption, and other policies required to land MIGA and OPIC insurance.

“There is already significant environmental work that project developers have to deal with in order to register with VCS and CCBA, which may be costly,” says Ruth Ann Nicastri, Managing Director of Political Risk Insurance at OPIC. “Terra Global Capital had already started those processes before they sought political risk insurance from us, so those costs were already taken into account in their budget. For project developers working on projects that haven’t taken the steps to obtain that kind of rigorous certification, it might be onerous to suddenly have to meet OPIC’s environmental requirements.”

For smaller projects that cannot afford certain evaluations, OPIC sometimes undertakes these evaluations as part of its own due diligence process, she notes. OPIC also provides discounted rates for small businesses, while MIGA provides subsidized rates for investments of $10 million or less with an average 25% discount, with specific rates depending on the country.

Beyond that, some have floated the idea of having public entities, possibly domestic, help subsidize insurance fees. “Depending on the country, it may be possible to provide additional layers of subsidy or premium pricing in a way that could offset political risk insurance premiums,” says Cameron Prell, Senior Counsel at US-based law firm McGuireWoods.

Project developers also have the option to apply to grants from donor agencies such as FMO, the Dutch development bank, that have strong stated interests in sectors relevant to carbon offset projects such as agribusiness, energy, food, and water to underwrite the cost of the insurance premium instead of provide a traditional grant or donation, Wiseman notes.

If a tree falls in the forest…

In spite of early-mover activity, there is still relatively low awareness that political risk insurance is available for forest carbon offset projects through MIGA and OPIC. The default risk management tool remains the buffer pool approach, which requires that project developers set aside carbon credits as reserves in order to cover unforeseen losses in carbon stocks.

“I don’t see the buffer pool approach as having a necessarily conflicting goal as these new emerging products, but the purpose of the buffer pool is definitely not to encourage financing,” says Stephen Matzie, Investment Officer at the US Agency for International Development (USAID), the US federal government’s principal aid agency. “It does require a significant amount of credits over the project’s lifetime, but I think it’s one of those things that can be tweaked to encourage private financing.”

While reportedly cheaper than the buffer pool approach, political risk insurance does not cover the broad set of risks that are technically covered by the buffer pool approach.

“OPIC and MIGA political risk insurance are advisable in many emerging markets that lack a robust regulatory regime for forest carbon,” Prell says. “However, the riskier markets are going to potentially result in higher premiums. Regardless, the insurance products should not be viewed as a sufficient instrument able to cover the current market demand and price risks inherent in forest carbon projects.”

There has been some push to expand the offering of products that can cover exposure to political risk alongside other risks. “The private sector and willing development finance institutions are developing additional guarantees that may address some measure of market risk, including project performance and valuation,” he notes. “The coverage is not 100%, but such mechanisms could provide some measure of risk mitigation for investors.”

USAID’s Development Credit Authority has been a prime innovator in this space, having been approached in early 2012 to develop a special loan guarantee for REDD activities. The agency is now working on several transactions simultaneously, with the one furthest along covering the Choco region in Colombia where it’s helping local communities pull together a REDD project. USAID’s guarantee covers a broad range of risks in addition to political risk, including those associated with verification, weather, and the production of carbon credits.

The path forward

Carbon offset projects continue to enter the pipeline to tap into political risk insurance on a case-by-case basis, including new prospects in Colombia, Brazil, and Indonesia. However, whether the market can see scaled-up adoption is hard to say.

While the use of MIGA’s political risk insurance for carbon offset projects is limited thus far, Prell notes that there has been some discussion about the potential for a new political risk insurance product for forest carbon to be modeled after the index-backed agricultural insurance programs offered by the World Bank’s Global Index Insurance Facility.

On OPIC’s end, Nicastri says, “As far as we can tell, we’re still the only ones willing to cover regulatory risk for forest carbon. However, OPIC is happy to work with other insurers to provide the product to a broader range of investors.”

As for EcoPlanet Bamboo? “We plan to use political risk insurance in every country where we plant bamboo as we embark on a new goal of reforesting 1 million acres of degraded land in Southeast Asia and Brazil, while expanding our current footprint in Africa,” says Wiseman. Some of this work could potentially include a carbon offset element.

Brazilian Cosmetics Giant Buys First Indigenous REDD Credits

 

10 September 2013 | Brazilian cosmetics giant Natura Cosméticos has purchased 120,000 tons of carbon offsets from the Paiter-Suruí­, an indigenous people of the Amazon who in June became the first indigenous people to generate credits by saving endangered rainforest using the Verified Carbon Standard’s (VCS) for “REDD” (Reduced greenhouse gas Emissions from Deforestation and forest Degradation). The transaction is also the first of its kind, and is being watched by indigenous people across the Amazon as well as by companies looking to meet their Corporate Social Responsibility (CSR) requirements.

“REDD+ is a bridge between the indigenous world and the non-indigenous world, so it’s an appropriate way to begin this process” says Chief Almir Narayamoga Surui, who spearheaded the effort. “It creates a vehicle through which the capitalist system can recognize the value of standing forests, and indigenous people can be rewarded for preserving them.”

Natura is Latin America’s largest cosmetics maker and has committed to reduce its greenhouse gas emissions by one-third from 2006 levels by the end of 2013. A cornerstone of this effort is the Natura Carbon Neutral initiative, a public commitment to offset those emissions that cannot be reduced internally by investing in emission-reduction projects from other institutions whose values and beliefs are aligned with their own.

“Since we made a commitment to be a carbon neutral company in 2007, Natura offsets 100% of its emissions,” says Denise Alves, Director of Sustainability.

The Suruí­ will use the proceeds to jumpstart their 50-year “Life Plan”, which is designed to create a sustainable economy that blends traditional land-use practices, ecotourism, and the harvesting of non-timber forest products with modern scientific methods and procedures.

Until 1969, the Surui were an isolated people living in harmony with the forest. After losing much of their territory to illegal logging, they have become leading proponents of rainforest preservation.

“Until now, companies have looked at rainforest preservation as something they do to be nice, or as philanthropy,” says Chief Almir. “Natura recognizes that carbon neutrality isn’t just a gesture, it’s an obligation, and it’s one we all have. REDD+ makes it possible for companies to meet that obligation, and for us to become providers of an ecosystem service.”

The Surui Forest Carbon Project is designed to prevent at least five million tons of carbon dioxide from being emitted over 30 years while protecting critical rainforest habitat, and its credits have been certified under both the Verified Carbon Standard (VCS) and the Climate, Community, and Biodiversity (CCB) Alliance. The VCS employs a rigorous set of criteria to ensure that actions taken by project proponents actually did preserve the forest, and CCB provides further tests to ensure the project doesn’t harm people or habitat. The project generated its first credits in June, 2013, after an audit by Imaflora (Instituto de Manejo e Certificaçí£o Florestal e Agrí­cola/Institute for the Management and Certification of Forests and Farms) and the Rainforest Alliance confirmed that protective actions taken by the Surui had been successful.

It began in 2007, when Chief Almir Surui first approached the Washington, DC-based environmental nonprofit organization Forest Trends (publisher of Ecosystem Marketplace) for help in reforesting his people’s territory after decades of invasion by loggers. There, he learned of REDD. To lay the foundation of a carbon project being able to be developed, Forest Trends commissioned a precedent-setting legal review that concluded that not only the Surui but all indigenous peoples in Brazil with demarcated territories have carbon ownership rights.

In 2009, the four clans and 25 villages of the Suruí­ voted to impose and enforce a logging moratorium and to work with Idesam (Instituto de Conservaçí£o e Desenvolvimento Sustentavel do Amazonas/Institute for the Conservation and Sustainable Development of Amazonas) to ensure that the impacts of the Suruí­ actions were measurable, reportable, and verifiable. In 2010, Funbio (Fundo Brasileiro da Biodiversidade/Brazilian Biodiversity Fund) joined the partnership to create the Suruí­ Trust Fund and ensure that income from the project is managed responsibly and transparently. Local authorities, including Funai (Fundaçí£o Nacional do índio/National Indian Foundation), have since endorsed the Suruí­ effort as a model project and are supportive of their deal with Natura.

In addition to Forest Trends, Chief Almir credits several partner organizations with bringing the project to fruition. Brazilian nonprofit organization Idesam provided technical support to determine which portions of the 248,147-hectare territory were in danger and estimate the carbon content. Longstanding Suruí­ partners Kanindé (Associaçí£o de Defesa Etnoambiental Kanindé) and ECAM (Equipe de Conservaçí£o da Amazí´nia/Amazon Conservation Team Brazil) helped members of the Suruí­ understand the project in accordance with the principles of Free, Prior, and Informed Consent (FPIC) as articulated in Convention 169 of the International Labor Organization (ILO).

 

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In The Colorado Delta, A Little Water Goes A Long Way

This week is World Water Week and a coalition spanning the US-Mexico border is a perfect example of this year’s theme-water cooperation. The group is thinking outside the box to restore the Colorado River delta – using water rights markets, recaptured wastewater, and a groundbreaking new federal deal – that’s breathing new life into an ecosystem widely assumed to be gone forever.

6 September 2013 |  The Colorado River hasn’t reached the sea in fifteen years.

The two-million acre delta where a young Aldo Leopold once paddled his canoe through “a hundred green lagoons” abounding with life (“At each bend we saw egrets standing in the pools ahead…Fleets of cormorants drove their black prows in quest of skittering mullets; avocets, willets, and yellow-legs dozed one-legged on the bars; mallards, widgeons, and teal sprang skyward in alarm…”) today is a vast, empty mud flat.

For years, scientists assumed it was a dead ecosystem.

After all, the free-flowing river itself disappeared at the Morelos Dam a hundred miles upstream, where the meager portion of water left to Mexico after seven US states took their share was then funneled into irrigation canals or off to the residents of the city of Mexicali. No water passed through the dam, much less was left over for the environment: the Colorado is already over-allocated by sixteen percent. Nine-tenths of the original wetlands are gone. Much of the delta has become desert.

But in the 1980s and 1990s, something unexpected happened. During El Nií±o years, sometimes the Colorado ran high, and then water would be released through the dam to prevent flooding upstream.
In the aftermath of these floods, the landscape looked palpably healthier. As a team of scientists wrote in the Southwest Hydrology Journal, “riverbanks once choked with saltcedar and other salt-tolerant shrubs have sprouted new cottonwood and willow trees following each flood event. The floods wash salts from the riverbanks and wet the soil, allowing tree seeds to germinate and grow. The trees grow in stands…that correspond to the high water mark of each flood.”

The delta was more resilient than it seemed.

To the east of Morelos Dam, a concrete canal crosses the border. It runs for 75 miles, from the Wellton-Mohawk Irrigation District in Arizona into Mexico’s Sonoran Desert, draining agricultural wastewater from farmlands.

At the mouth of the canal, another startling thing happened. As water began flowing in the late 1970s, a vast wetland appeared. La Ciénega de Santa Clara today has grown from 500 acres to perhaps forty times that size, hosting thousands of songbirds, waterbirds, and fish.

To the astute observer, the message was clear: in the delta, a little water goes a long way.

A Water Trust

In 2008, a coalition of non-profit groups hailing from both sides of the border, including the Sonoran Institute, Pronatura Noroeste, and the Environmental Defense Fund, decided to act on that knowledge, and tap a new source for restoring water to the river: the market.

They created the Colorado River Delta Water Trust (CRDWT), which buys water rights on the open market and effectively retires them, restoring the water to the river (a mechanism known as “instream buybacks” or “water buybacks”).

“We purchase irrigation water rights in the Mexicali Valley from willing sellers, usually farmers,” explains Osvel Hinojosa, Pronatura Noroeste’s Water and Wetlands program director. Under Mexican law, the water right can be separated from the land and the water redirected to uses in other places. Now, instead of irrigating agricultural fields, the water is once again irrigating plantings of native trees and inundating riparian areas to encourage native vegetation growth.

Their biggest goal, though, has been to secure enough water to maintain a small base flow, which means the portion of stream flow in a river contributed by groundwater or other subsurface sources. Baseflows are the sustained background levels present even during dry periods.

No one has ever bought water on behalf of the environment before in Mexico, though similar mechanisms have worked in the United States and Australia. Nor has a water ‘buyback’ mechanism like this ever been carried out across national boundaries, with conservation groups pooling resources to save the river that links their countries. The CRDWT is doing something almost entirely unprecedented, both in conservation finance and in successfully cooperating to restore a transboundary basin.

Working through water markets lets the coalition act quickly, explains Hinojosa. “We saw great potential to reach an allocation of up to 60 million cubic meters per year, and particularly water with very good quality.” Pronatura Noroeste already used treated wastewater and agricultural drainage to feed marshes and estuaries in the delta, but to bring back forests in the riparian zone (i.e. the area along the banks of the river), they needed cleaner water, and the best place to get it was to simply buy it on the market.

The Sonoran Institute estimates that in the long term, the lower Colorado needs 50,000 acre-feet (61.7 million m3) (one acre-foot, or AF, represents the volume of water needed to flood an acre of land to one foot deep, or about twice as much water as a household in the US West uses in a year) for baseflows annually. Buying these rights on the Mexican market will probably cost between US $12-15 million.

Through the market, the water trust has secured about 3200 AF to date and invested about US $1 million. Their goal is to triple that in the next five years.

The buybacks are just one arrow in a quiver. The coalition stays busy: it’s also worked to secure another 6080 AF (7.5 million m3) per year of treated wastewater from the Las Arenitas Waste Water Plant to restore flows in the Hardy River, a tributary of the Colorado. CRDWT has participated in binational negotiations between the US and Mexico to ensure that the agricultural wastewater flows that maintain the Ciénega de Santa Clara wetlands will continue. They’ve protected 25,000 acres (10,000 ha) of mudflats and estuarine habitat in the delta, plus another few thousand along the Hardy and the Colorado rivers, in the El Doctor wetlands, and in riparian corridors. The idea is to create a network of restored sites: if that can be done, much of the habitat functionality for wildlife will return.

Piece by piece, they’re reassembling the delta.

“This as an ecosystem with high resiliency, and we have learned that with a little bit of water we can achieve significant restoration,” says Hinojosa.

Minute 319

It seems the higher-ups are listening. Last November, the CRDWT became a key partner in an agreement between the US and Mexican governments that aims to reconcile management of the Colorado River to certain environmental realities.

Minute 319, as the agreement is known, does a few important things. First, it spreads the effects of drought and flush years more evenly between the two countries. Previously, Mexico’s entitlement was more or less locked in: every year the US was required to send about 1.5 million AF (1.85 billion m3) of water to Mexico annually, except in cases of “extraordinary drought,” which were never defined in the original 1944 treaty between the two countries. Now, there’s a process for revising that allotment downward to reflect drought, and in turn Mexico, which lacks its own storage capacity, can keep its ‘extra’ water in wetter years behind the Hoover Dam for later use.

And for the first time, the two countries have agreed to set aside some water for the environment. Minute 319 dedicates a total of 158,000 AF (1.95 billion m3) over a five-year period: a third will support base flows, the rest a one-time ‘pulse’ flow, to mimic both historical background levels and the large springtime floods that existed in the Colorado in the years before the dams were built.

The Colorado River Delta Water Trust is responsible for securing a third of that water through its water right buybacks.

To deliver the rest, the US has agreed to contribute US $21 million to help pay for infrastructure improvements and environmental projects in Mexico, where irrigation infrastructure was badly damaged in a 2010 earthquake. These conservation projects and irrigation efficiency improvements are expected to create enough water savings for the pulse flow, so existing water entitlements won’t be cut.

An initial pulse flow of 105,000 AF (129.5 million m3) is scheduled tentatively for 2014, and no later than 2016.

Minute 319 was widely lauded as a historic deal and a landmark for transboundary cooperation. Former US Secretary of Interior Ken Salazar called Minute 319 “essentially the most important agreement that has ever been put together between the United States and Mexico on water in the Colorado River.

“The environmental component was an essential part of the negotiations,” says Hinojosa. “It opened the door and set the table for binational collaboration in more difficult topics, such as shortage criteria, joint investments in infrastructure, and storage of Mexican water in the US.”

“Local communities are the cornerstone of this process”

Within the Mexicali Valley, support runs just as high. “We have been working with these communities for seventeen years, to get them involved and excited about the restoration of the Colorado River delta,” Hinojosa points out.

Restoration projects are creating jobs, for one thing. The Mexican Federal Government provides funding for a temporary employment program in the Valley, which pays about a hundred people each year to clear invasive salt cedar and plant cottonwood, willows, and mesquite in its place.

Locals welcome these jobs, and the water trust’s investments in restoring a natural landscape that many older residents still remember.

“A farmer sold us recently 20 water rights (200,000 m3 or 162 AF per year),” says Hinojosa. “His story is similar to many of the transactions we have done. He moved to the Mexicali Valley in the 1950s, and obtained from the government the land and water rights as part of an ejido [a form of communally held land common in Mexico]. He formed a family and was able to send his children to college in Mexicali, and eventually the family moved to the city. He finally retired and the family is not interested in continuing the farming activity, and placed the water rights in the market.”

“Usually, these water rights are purchased by other farmers in the region, but also by the cities of Tijuana and Mexicali, and then the water goes outside the Valley. Since with our activities, we are keeping the water in the district and for programs that create local benefits, we receive the support from the sellers and the farming community.”

The river stirs to life

These days, the Colorado River basin is locked in the worst drought in a century. But sometime soon – whether in a year or three – the river will be connected with the sea once again during the planned pulse flow.

Long-absent local birds and marine species are expected to come back, along with the 300,000 migrating waterbirds that have historically stopped in the delta for the winter. A wealth of habitats stretching over 60,000 hectares – the forests, marshes, lagoons, mudflats and estuaries that Leopold once explored – will appear once more on the landscape.

Minute 319 is a five-year agreement, and the coalition is already thinking about the next round of negotiations. Hinojosa says at the top of CRDWT’s priorities is demonstrating that their efforts are working, and to learn as much as possible about the ecological recovery process in the delta so they can craft an even better deal next time.

The CRDWT is also exploring new funding sources to ramp up their buyback activities: they’ve moved beyond traditional foundation support to a partnership that channels money from a US buybacks program, Bonneville Environmental Foundation’s Water Restoration Certificates, to purchasing water rights in the delta. They’re also working with the Redford Center, on a public fundraising campaign called Raise The River launching this week.

“There are huge opportunities,” says Hinojosa. Not only for the Colorado River: “This process can set a precedent of international cooperation for the dedication of environmental flows and restoration.”

Credits From First African Government Backed REDD+ Project Go On Sale

The Makira REDD+ project in Madagascar, which aims to protect 400,000 hectares of forest, announced its carbon credits are for sale becoming the first of its kind to put credits on the carbon market. Devastated by illegal rosewood logging just a few years ago, the Makira REDD+ project is part of Code REDD, a group of projects with high standards on conserving biodiversity and supporting local livelihoods.

This article was originally published on Mongabay.com. Click here to read the original.

19 September 2013 Carbon credits generated from protecting thousands of hectares of endangered rainforest in northeastern Madagascar have now been certified for sale, reports the Wildlife Conservation Society (WCS), the project’s main organizer. The development represents the first time that credits generated by African government-owned project have been put on the voluntary carbon market.

The Makira REDD+ Project aims to protect 400,000 hectares of forest in a part of Madagascar that has suffered from illegal rosewood logging. Backers estimate the initiative will prevent emissions of 32 million tons of carbon dioxide over the next 30 years, or roughly the annual emissions of the state of Montana. More importantly, the project will help protect some 20 species of lemurs, including more than a dozen at-risk species, while creating new economic opportunities for locals living in and around the park, according to WCS.

“Along with its benefits to wildlife, the sale will directly benefit local communities living around the protected area by allocating 50 percent of the net revenues of carbon sales to improve local infrastructure, provide health and education services, and support training, inputs, and technical assistance for sustainable agriculture,” said the group in a statement. WCS is charged with implementing the project.

The Makira REDD+ Project was conceived before the March 2009 coup that displaced Madagascar’s democratically-elected president from power. The coup cut off the flow of critical conservation funds, spurring an orgy of illegal logging and poaching in Makira and the neighboring protected areas of Masoala and Marojejy. While some of the illegal logging and rosewood smuggling was linked to political officials who took power after the coup, the activity has since slowed dramatically, offering opportunities to strengthen conservation efforts in the region, including bolstering the Ministry of Environment and Forests, whose staff made heroic efforts to stave off illegal logging during the worst of the 2009 political crisis.

Accordingly, Madagascar’s Secretaire General of the Ministry of Environment and Forests welcomed the milestone validation and verification under the Verified Carbon Standard (VCS).

“Green growth is the fruit of a green economy within the context of sustainable development realized through the implementation of an appropriate management of natural resources and the valuing of biodiversity,” said Pierre Manganirina Randrianarisoa in a statement. “Thus, the sale of carbon stored in the protected forests of Makira Natural Park provides a significant financial opportunity for Madagascar.”

The Makira REDD+ Project is run by the Makira Carbon Company, a non-profit subsidiary of WCS. The project is part of Code REDD, a bloc of REDD+ projects that set high standards for conserving biodiversity and supporting local livelihoods. Code REDD aims to create a class of premium REDD+ offsets to set their credits apart from those generated by less stringent and more controversial projects.

WCS president and CEO Cristií¡n Samper says the Makira project sets a good example for what REDD+ can deliver for conservation in developing countries like Madagascar.

“This sale is a major step forward for the Government of Madagascar in advancing the use of carbon credits to fight climate change while protecting biodiversity and human livelihoods,” said Samper. “WCS congratulates Madagascar and is proud to partner with them on the Makira REDD+ project.”

“The sale of these carbon credits has triple bottom-line benefits; it helps wildlife, local people, and fights climate change,” added Todd Stevens, Vice President of the Makira Carbon Company.

Rhett Butler founded Mongabay in 1999 and currently serves as its president, head writer and chief editor.
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Building A More Resilient Gulf

31 July 2013 | Charlie Broussard, a shrimper on the docks in Cocodrie, Louisiana, has seen the wetlands he paddled through as a kid shift dramatically – literally. In fact, the Louisiana coastline is changing so quickly that fisherman and oil rig workers who have spent their lives navigating the bayou by boat sometimes get lost as familiar landmarks are drowned. In Louisiana, 1,880 square miles of land has vanished since the 1930s, and the current rate of land loss is equivalent to a football field every 38 minutes.

“The state almost views land loss as an existential threat,” says Alex Kolker, a coastal geologist at the Louisiana Universities Marine Consortium, a research center located ‘at the end of the Earth’—or, more specifically, at the end of LA Highway 56 in Cocodrie.

Charlie Broussard

Charlie Brussard, a shrimper in Concodrie, Louisiana, has seen the coastline change dramatically in his lifetime.

 

Wetlands restoration ‘at the end of the Earth’

Many Gulf Coast residents—especially those who lived through Hurricane Katrina in 2005—are acutely aware of the fragility of ‘hard’ infrastructure, such as the levee that broke and the floodwalls that failed to stop inundation during the storm. ‘Soft’ natural infrastructure, such as wetlands, can absorb flooding, break waves, and slow storm surge, taking some of the pressure off of levees and other ‘hard’ structures. Without wetlands, coastal areas are much more exposed to hurricanes.

To begin to address these vulnerabilities, Louisiana’s 2012 Coastal Master Plan prioritizes 109 coastal restoration projects, at a price tag of $50 billion. But, with 85% of Louisiana’s coast controlled by private landowners, others are looking to the private sector to support wetland restoration.

Louisiana Map

A ‘less optimistic’–but plausible–scenario of land loss from Louisiana’s 2012 Coastal Master Plan.

 

“There is a lot of potential for large-scale impact by working with industry,” says Sarah Mack, the founder and CEO of wetland restoration project developer Tierra Resources.

Wetlands sequester carbon both in life and in death. Like forests, they build carbon as they grow. When the plants die and decay, organic material compacts into soil, permanently storing carbon belowground. In September 2012, the American Carbon Registry approved a wetlands methodology—authored by Mack and two contributors from Louisiana State University—that will allow landowners to quantify the carbon sequestered by restoration projects and then sell verified emissions reductions (i.e. carbon offsets) to voluntary offset buyers.

The first pilot project using the wetlands methodology is now underway at the Luling Oxidation Wetlands Assimilation Pond, a 950-acre wetland 20 miles west of New Orleans that is threatened by subsidence (regional sinking) and saltwater intrusion. To restore the wetland, the project diverts treated municipal wastewater that once flowed into a canal into the wetland, which is thirsty for nutrients and freshwater. Thus, the project turns municipal trash (wastewater) into treasure (wetland food).

With the influx of nutrients, wetland plants will grow, and Tierra Resources estimates that the Luling project will sequester 1,000 to 7,000 metric tons of carbon dioxide (MtCO2e) annually. They are planning to transact offsets in one to two years.

A utility builds its resilience

Entergy, a utility with 2.8 million customers in the Gulf and the company that invested $150,000 to help develop the wetlands methodology, has the right of first refusal on the Luling project and is planning to purchase some of the carbon offsets produced by the restoration work. The company sees wetlands as a kind of natural insurance that will buffer their infrastructure in an uncertain climate future.

“We’re uniquely at risk due to the geographic location of our company and our customers,” says Brent Dorsey, director of corporate environmental programs at Entergy. “Every few years, taking a direct hit from a hurricane is difficult to recover from. Our customers can’t afford for us to keep rebuilding the system.”

In 2010, Entergy hired McKinsey to quantify climate risk across the company’s assets. They used a statistical model by the reinsurance company Swiss Re to simulate 10,000 possible hurricane ‘years,’ looking at the multitude of different pathways that hurricanes could take across the Gulf and how the likelihood and strength of storms might change under different climate scenarios.

Drivers of land loss in the Louisiana Gulf

The largest driver of land loss in coastal Louisiana is subsidence–or sinking due to:

(1) natural sediment compaction and

(2) oil and gas drilling, which sucks out pockets of liquid offshore, creating space for the land to settle.

(3) The channelization of the Mississippi River also means that about 50 percent less sediment is reaching the Gulf, therefore slowing the only process that naturally builds land.

(4) On top of that, climate change is leading to rising sea levels globally and more intense storms, both of which eat away at the Gulf Coast.

Dead Cypress

Dead cypress trees cover tens of thousands of acres in the Gulf. Without wetlands restoration, even more of the landscape will turn to open water.


The analysis found that Entergy’s infrastructure—which includes 500,000 miles of transmission lines and 300 generation facilities—is vulnerable to storms even without climate change. Under a moderate climate change scenario, cumulative losses from wind, sea level rise, and storm surge could cost Entergy $370 billion (in 2010 dollars) over the next two decades.

Entergy has already been adapting its infrastructure to the impacts of more intense and frequent storms: The company is elevating substations, replacing damaged wooden structures with metal and concrete, and strengthening transmission and distribution lines and conductors. But the severity of climate risks has changed Entergy’s calculus around some of the resiliency measures that might otherwise be considered too expensive.

For instance, wetland restoration comes out at 3.31 on the company’s cost-benefit analysis, meaning that for every $3.31 invested, Entergy would get $1.00 worth of ‘casualty loss reduction’ value. However, when all of the co-benefits of wetlands—water purification, fisheries, recreation, and carbon sequestration—are included, the true value of this natural infrastructure begins to emerge.

Bayou

Companies such as Entergy are beginning to price out the true value of wetlands, which includes services like carbon storage and storm protection.


“If you can add an economic value, or ‘internalize,’ the environmental services that wetlands provide, then wetland restoration begins to pencil out a little better [on the cost-benefit analysis],” Dorsey says. “This is really the sweet spot to start to bring all of the co-benefits together.”

Entergy’s Environmental Initiatives Fund commits $1 million annually to greenhouse gas reduction projects such as wetland restoration, methane capture, nitrous oxide destruction, and landfill gas-to-energy. Projects such as Luling allow Entergy to invest in climate change mitigation and adaptation at the same time.

Acres to go before we sleep…

Entergy is now working to get other private sector actors interested in leveraging carbon financing for wetland restoration. Tierra Resources’ newest pilot project is a wetland planting initiative with ConocoPhillips. The company has 640,000 acres of wetlands to their name, making them one of the largest private wetland landowners in the United States.

Restoring an acre of wetland can cost up to $150,000—an expense “beyond the capacity of most private landowners,” Mack explains. While carbon financing may not be able to cover all of the per-acre costs for capital-intensive restoration techniques such as river diversions, it may leverage other financing, and ultimately make the difference in restoration decisions. Tierra Resources is also developing other types of restoration techniques that may be able to be fully funded using carbon finance.

Shrimper

Shrimpers in Cocodrie, Louisiana rely on coastal ecosystems for their livelihoods. Carbon finance could give a boost to restore wetland habitat important for shrimp fisheries.span>


Tierra Resources estimates that a healthy wetland sequesters as much as 15 MtCO2e per acre per year, and that 4 million acres of wetlands in the Mississippi River Delta are eligible for carbon-accounted restoration. If future carbon projects were to cover 1 million acres in the Gulf (a quarter of the potential), Tierra Resources estimates that carbon financing could leverage between $5 and $15 billion for wetlands restoration, based on modeling using an offset price of $12-25 per tonne.

The organization is pushing for the wetlands methodology to be included in California’s cap-and-trade compliance market, where wetlands offsets could fill a projected gap in offset supply. Inclusion of the wetlands methodology in the compliance market could mean a steadier demand for wetlands offsets, and higher prices. In 2012, the average carbon offset sold for $5.90 on the voluntary market, compared to an average price for California-bound offsets of $9.30/t, a 16% increase over the previous year. Though companies such as Entergy have stepped up to purchase wetlands offsets voluntarily, a wetlands protocol under California cap-and-trade would create a much larger market for the offsets—and the potential to leverage more financing for restoration.

Sober optimism

Louisiana’s 2012 Coastal Master Plan recognizes for the first time that the state will not be able to save every acre.

“It’s a very big step to come out and say, ‘we can’t save the entire coast,’” Morgan Crutcher, a Technical and Policy Analyst at the Coalition to Restore Coastal Louisiana says. “We’re watching coastal communities go through the grieving process.”

Protest Sign

A protest sign in the Louisiana bayou reads: “It’s worth saving.” Gulf residents are losing land at a rapid rate.span>


Kolker, the coastal geologist, views the reality in Louisiana as a precursor for the kind of tough decisions that other states may soon face as ice sheets melt and sea level rise accelerates: “In some ways, we’re already the climate future,” he says.

In the meantime, with every storm in the Gulf, the need for robust coastal wetlands becomes more apparent, the costs of inaction more devastating. The impacts of climate change and the efficacy of natural infrastructure in absorbing some of the impacts of storms have caught the attention of the private sector, and companies such as Entergy are beginning to take action. And on a coast that is disappearing before people’s eyes, (tempered) optimism may be the only way forward.

 

 

Allie Goldstein is traveling around the US this summer uncovering stories of climate resilience.
Additional resources

Cookstoves Program Aims To
Spread Devices Across Africa And Asia

29 July 2013 |The Bonn International Cooking Energy Forum in Germany was the site for the unveiling of StovePlus, a program to provide residents of developing countries in Africa and Asia with alternatives to inefficient cookstoves. GERES, the French non-profit organization behind the new program, aims to distribute 2 million improved cookstoves in these regions by 2017 through StovePlus.

Nearly 3 billion people in the world rely on solid biomass for cooking and heating on a daily basis, but most of them use inefficient devices and open fires, leading to 4 million premature deaths every year, according to the Global Burden of Disease Study commissioned by the Institute for Health Metrics and Evaluation. Reliance on biomass also puts great pressure on natural resources, putting the world’s forests at risk, GERES notes.

The StovePlus program aims to strengthen the clean cooking sector and provide technical support to project developers in South-East Asia and West Africa, with the support of the Global Alliance for Clean Cookstoves (the Alliance). The Alliance provides funding to the GERES Biomass Energy Lab in Cambodia, one of the services offered in StovePlus. In 2012, the Alliance released a request for proposals (RFP) to enhance capacity for a global network of centers to provide testing, cookstove development, and capacity building services. Thirteen centers were selected for awards in Bolivia, Cambodia, China, Ghana, Honduras, India, Kenya, Nepal, Nigeria, Peru, Senegal, South Africa, and Uganda (lab and field). Under the RFP, $1.6 million was made available to support these centers.

Cookstove projects can provide significant health benefits and empower women – who often walk long distances to collect the necessary wood fuel for heat or cooking purposes – by freeing up their time and increasing their household income, says Jennifer Tweddell, Manager of Carbon Finance and Impact Investing for the Alliance. In addition to reducing greenhouse gas (GHG) emissions, the projects also have the impact of reducing deforestation, she says.

Clean cookstoves have become all the rage in the voluntary carbon markets, with voluntary buyers funneling $80 million toward offsets from these and water filtration projects last year, according to the State of the Voluntary Carbon Markets 2013 report. These household devices that burn fuel more efficiently or not at all (thus reducing GHG emissions while sparing households from harmful smoke inhalation) were the voluntary market’s fourth most popular mitigation activity – transacting 5.8 MtCO2e, or 80% more than in 2011. These projects have so far delivered at least 4 million cookstoves from 45 projects to developing country households with the aid of carbon revenues, the report finds.

In 2012, carbon finance for clean cookstove distribution reached 15 country locations on three continents, according to the report. The most prominent project locations included Peru, Ghana, Mozambique and Kenya.

Developers of cookstove projects are determined to secure buy-in from stove users, with only 2% of clean cookstove projects engaged in stove giveaways and the majority of projects charging users between $2 and upwards of $140 per device, a finding that pleased Tweddell.

“We’re very much in favor of a market-based approach so we’re glad that there aren’t a lot of free giveaways because we really feel that to be sustainable and to reach universal adoption, which would be 500 million households, you can’t do that on donor dollars and (corporate social responsibility),” she says. “You do that through having a thriving marketplace where people at the base of the pyramid are consumers who go out and actually purchase these products from social enterprises that are also making a profit doing that.”

Transactions of clean cookstove offsets were valued at $65.3 million in 2012 – 54% more than in 2011. Over time, the value of private sector support for clean cookstove carbon projects is estimated to be $145 million.

The average price for offsets from clean cookstove projects was $11.3/tCO2e in 2012, representing a 15% fall in price from 2011’s $13.2/tCO2e. The price decline was attributed to the growing volume of available cookstove project offset supply and a lack of clarity regarding certified emissions reduction demand in the European Union Emissions Trading System – a source of demand for some clean cookstove offsets. But the price for cookstove projects was well above the volume-weighted average price of $5.9/tCO2e of all project types seen in 2012.

“I really do think it’s because of all the additional benefits that these projects bring,” Tweddell says. “Certainly, you can tell a really great story about having a health benefit, improving the lives of people in developing countries, as well reducing your carbon emissions.”

In trying to attract investment, the Alliance often hears people talk about the crash of the carbon markets, but the report is very useful because it provides evidence of the higher prices commanded by these charismatic projects, she says.

“That helps us to demonstrate the value to potential buyers, but also to investors who often don’t understand the carbon markets and are a little bit leery of businesses that are reliant on carbon revenues,” she says.

For more findings on cookstoves and other voluntary carbon projects, read the Ecosystem Marketplace report here.

 

Additional resources

How Forest Carbon ProjectsProtect Themselves From Political Risk

Following the landmark use of political risk insurance on a REDD+ project in Cambodia, project developers elsewhere have also tapped into the insurance – most recently on a bamboo reforestation project in Nicaragua. Despite these examples of early mover activity, awareness of political risk coverage and how it can help finance carbon offset projects is still very limited.

27 August 2013 | In 2011, a few years after US-based land-use carbon consultant Terra Global Capital (TGC) launched its Oddar Meanchey REDD Project in Cambodia, it asked the Overseas Private Investment Corporation  (OPIC)  to shield its investment from political risk.

More specifically, the project helps Buddhist monks and other community members reduce greenhouse gas emissions from deforestation and forest degradation (REDD), and it does so in a way that could serve as a template for community-based REDD projects around the world. But it’s located in a country that most investors don’t understand. So TGC asked OPIC, the US government’s primary development finance agency, to provide protection against the risks of expropriation, war, and civil unrest – risks familiar not only to Cambodia, but to countries around the world. In the very first instance of political risk insurance for a forest carbon offset project, OPIC came through with $900,000 in political risk insurance – a service that the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) also offers.

Between the two of them, OPIC and MIGA have so far insured several carbon offset projects around the world designed to promote sustainable forestry, wind farms, and solar energy, allowing them to move forward in some of the world’s riskiest political and economic environments.

Nicaragua’s bamboo kingdom

In 2012, MIGA provided its first political risk insurance to a carbon offset project on the Atlantic Coast of Nicaragua, where EcoPlanet Bamboo (EPB) has been developing a forest carbon offset project to support its work reforesting degraded pasture land with guadua aculeate, a native bamboo species. The project is just one piece of the company’s growing efforts to provide timber manufacturing industries with a sustainable alternative fiber in order to reduce pressure on natural forests.

photo of recently-cleard hillside
The production of palm oil is expanding and threatening forests in  Nicaragua’s coastal region, not far from EcoPlanet Bamboo’s sustainable bamboo plantations. For the land to be primed for palm oil, the forests are being burned, sometimes without removing the timber.

While EPB hopes to use carbon finance to meet debt repayments and support bamboo-processing activities and social programs in the area, MIGA’s $27-million guarantee backs the company’s investment in the purchase and conversion of degraded land into commercial bamboo plantations for the sale and export of bamboo fiber.  

Troy Wiseman, CEO and Co-Founder of EPB, says he was initially attracted to MIGA’s political risk coverage due to the perception of Nicaragua as a high-risk environment, especially in Europe, where EPB had the opportunity to raise debt finance for the project. Despite Nicaragua’s recent economic turnaround, the country still has a reputation among investors as one of Latin America’s least-developed countries, with high poverty rates following decades of political instability. Political risk insurance, he reasoned, could help overcome that hurdle and lower the interest rate at which EPB could access capital.

first planting
In April 2011, land preparation began at EcoPlanet Bamboo Central America’s Rio Siquia Plantation.

“Once we had political risk insurance, you could take the risk argument away because the cost of capital  would come down,” says Wiseman. “It came down for us by about 40%.”

As for the insurance itself, aside from the potential payoff in case an insurance claim is triggered, Wiseman notes that having MIGA on the contract reduces the risk that expropriation even occurs in the first place. MIGA underwriter Gloriana Echeverria says that’s partly because the Nicaraguan government is a shareholder in MIGA, which means it’s literally invested in its performance.

“This reduces the chance of expropriation because the government is unlikely to interfere with a project that has MIGA – and therefore the World Bank – as its partner,” she says. “We’ve gotten involved in over 100 cases where the investor has a certain problem with the government interfering. MIGA can mediate between the government and the investor to arrive at a solution that will make both parties happy.”

Political risk aside, the decision to invest in the project using carbon finance required taking on a significant amount of risk in its own right. “No one really had a proven bamboo methodology at a commercial level that could be duplicated,” says Wiseman. Indeed, EPB is the first organization to use a bamboo-based carbon offset methodology on a project validated under the Verified Carbon Standard (VCS) and the Climate, Community, and Biodiversity Alliance (CCBA), and is also certified under the Forest Stewardship Council for sustainable forest management.

EPB’s project is not a pure carbon offset project insofar as it derives revenues from bamboo sales. MIGA’s financial analysis of the project takes into account all revenue streams. For projects that are strictly dependent on carbon finance, Echeverria says MIGA’s financial analysis could differ in accounting for the financial sustainability of the project. A project relying solely on carbon revenues could be seen as a riskier project to insure.

Navigating the kitchen sink

For project developers trying to distinguish between OPIC and MIGA insurance, the primary difference is that OPIC requires majority US participation in an investment, whereas MIGA is open to nationals of any of its 179 member countries as long as the coverage is for a cross-border investment. MIGA is usually competitive in the riskier countries where investors are more concerned about getting the World Bank umbrella effect of deterrence, whereas OPIC tends to focus its activities in countries where a strong bilateral relationship might exist with the US. There is also a private political risk insurance market, but arguably without the deterrence effect. It is unclear whether carbon offset project developers have used this market.

bamboo growing wild
Guada aculeate bamboo growing wild in their native habitat on EcoPlanet Bamboo’s Rio Kama Plantation. November 2011.

Ultimately, MIGA can provide up to $220 million in insurance coverage per project, whereas OPIC can provide up to $250 million  – both agencies able to provide additional coverage through reinsurance. But how affordable is political risk insurance at the end of the day? And what incentives exist to help project developers invest in poor and risky countries where capital is hard to come by?  

The cost of the policy depends on the country, with insurance premiums rising significantly for particularly high-risk environments. For countries in the middle tier, the insurance itself may not be prohibitively expensive, but cash-strapped project developers looking to tap into political risk insurance can ultimately face additional upfront costs if—unlike EPB or TGC—they aren’t already in compliance with the prerequisite environmental, anti-corruption, and other policies required to land MIGA and OPIC insurance.

“There is already significant environmental work that project developers have to deal with in order to register with VCS and CCBA, which may be costly,” says Ruth Ann Nicastri, Managing Director of Political Risk Insurance at OPIC. “Terra Global Capital had already started those processes before they sought political risk insurance from us, so those costs were already taken into account in their budget. For project developers working on projects that haven’t taken the steps to obtain that kind of rigorous certification, it might be onerous to suddenly have to meet OPIC’s environmental requirements.”

For smaller projects that cannot afford certain evaluations, OPIC sometimes undertakes these evaluations as part of its own due diligence process, she notes. OPIC also provides discounted rates for small businesses, while MIGA provides subsidized rates for investments of $10 million or less with an average 25% discount, with specific rates depending on the country.

Beyond that, some have floated the idea of having public entities, possibly domestic, help subsidize insurance fees. “Depending on the country, it may be possible to provide additional layers of subsidy or premium pricing in a way that could offset political risk insurance premiums,” says Cameron Prell, Senior Counsel at US-based law firm McGuireWoods.

Project developers also have the option to apply to grants from donor agencies such as FMO, the Dutch development bank, that have strong stated interests in sectors relevant to carbon offset projects such as agribusiness, energy, food, and water to underwrite the cost of the insurance premium instead of provide a traditional grant or donation, Wiseman notes.

If a tree falls in the forest…

In spite of early-mover activity, there is still relatively low awareness that political risk insurance is available for forest carbon offset projects through MIGA and OPIC. The default risk management tool remains the buffer pool approach, which requires that project developers set aside carbon credits as reserves in order to cover unforeseen losses in carbon stocks.

“I don’t see the buffer pool approach as having a necessarily conflicting goal as these new emerging products, but the purpose of the buffer pool is definitely not to encourage financing,” says Stephen Matzie, Investment Officer at the US Agency for International Development (USAID), the US federal government’s principal aid agency. “It does require a significant amount of credits over the project’s lifetime, but I think it’s one of those things that can be tweaked to encourage private financing.”

While reportedly cheaper than the buffer pool approach, political risk insurance does not cover the broad set of risks that are technically covered by the buffer pool approach.

“OPIC and MIGA political risk insurance are advisable in many emerging markets that lack a robust regulatory regime for forest carbon,” Prell says. “However, the riskier markets are going to potentially result in higher premiums. Regardless, the insurance products should not be viewed as a sufficient instrument able to cover the current market demand and price risks inherent in forest carbon projects.”

There has been some push to expand the offering of products that can cover exposure to political risk alongside other risks. “The private sector and willing development finance institutions are developing additional guarantees that may address some measure of market risk, including project performance and valuation,” he notes. “The coverage is not 100%, but such mechanisms could provide some measure of risk mitigation for investors.”

USAID’s Development Credit Authority has been a prime innovator in this space, having been approached in early 2012 to develop a special loan guarantee for REDD activities. The agency is now working on several transactions simultaneously, with the one furthest along covering the Choco region in Colombia where it’s helping local communities pull together a REDD project. USAID’s guarantee covers a broad range of risks in addition to political risk, including those associated with verification, weather, and the production of carbon credits.

The path forward

Carbon offset projects continue to enter the pipeline to tap into political risk insurance on a case-by-case basis, including new prospects in Colombia, Brazil, and Indonesia. However, whether the market can see scaled-up adoption is hard to say.

While the use of MIGA’s political risk insurance for carbon offset projects is limited thus far, Prell notes that there has been some discussion about the potential for a new political risk insurance product for forest carbon to be modeled after the index-backed agricultural insurance programs offered by the World Bank’s Global Index Insurance Facility.

On OPIC’s end, Nicastri says, “As far as we can tell, we’re still the only ones willing to cover regulatory risk for forest carbon. However, OPIC is happy to work with other insurers to provide the product to a broader range of investors.”

As for EcoPlanet Bamboo? “We plan to use political risk insurance in every country where we plant bamboo as we embark on a new goal of reforesting 1 million acres of degraded land in Southeast Asia and Brazil, while expanding our current footprint in Africa,” says Wiseman. Some of this work could potentially include a carbon offset element.

The Peru Carbon Fund:A Peruvian Standard For Peruvian Forests

The Peru Carbon Fund’s new PCF Standard aims to generate something it calls “Carbon Capture Certificates” for people who plant native trees on previously deforested land. It’s a novel approach that allows for landowners to reforest and harvest while accessing carbon payments.

12 September 2013 | Most carbon standards aim to serve either regional compliance programs or global voluntary models. The Peru Carbon Fund (PCF) has carved out a third niche: one designed for the voluntary market and the Peruvian legal landscape.

The PCF Standard aims to promote the planting of fast-growing native trees on lands that are currently being used for farming and ranching. It allows for harvesting so long as the carbon isn’t being dissipated into the air. Wood for construction, for instance, is permitted. Katherine Hamilton, a Strategic Advisor with Ecosystem Marketplace, recently sat down in Lima, Peru with PCF Executive Director Alessandro Riva to chat about the new organization’s work within the region.

KH What is the Peru Carbon Fund?

AR The Peru Carbon Fund is a privately-owned Peruvian company created to gather funds from investors, both corporate and individual, that in return seek carbon-neutral certification, using Carbon Capture Certificates (CCCs). The funds are fully invested in subsidizing reforestation projects in the Amazon.

You are developing an internal standard for these projects. How does it work?

PCF has created a robust internal standard called the PCF Forestry Standard with the objective of issuing Carbon Capture Certificates (CCC). These CCC’s come exclusively from reforestation projects dedicated to produce timber from native, fast-growing species in the Amazon, which will reduce deforestation and aid climate change through the creation of jobs.

We think we have identified the legal and silvicultural characteristics that plantations must possess to be ecologically and economically successful. Legal aspects pertain to specific property and land use regulations to avoid improper reforestation activities; the silvicultural regulation establishes that native species solely are a way to minimize effects, as various successful species have already been identified.

Each CCC is issued for a specific investor in order to compensate its carbon footprint. The certificates are not resalable to other companies; they are not tradable credits. PCF works as a direct and unique link between companies and farmers, reducing significantly the transaction and certification costs.

In general, the PCF Forestry Standard is a mechanism with specific requirements that correspond to a Peruvian reality and legal frame; therefore it’s a standard that most Amazon inhabitants or corporate investors can relate to, allowing for a fast spread of the program nationwide.

Why is PCF creating its own internal standard?

We believe it’s impossible to target a problem as large as deforestation in Peru with a standard that was not made specifically for the Peruvian reality. Additionally, we believe that the extremely high costs of implementing international standards in the Peruvian jungle are the main reason why they haven’t succeeded in turning around this dramatic situation.

The PCF Forestry Standard was created with the goal of simplicity, massive applicability, local knowledge, and zero cost – taking into account what international standards don’t provide. We can say that it’s 100% free for any farmer to apply for the standard; obviously they have to fulfill the requirements, but we see it as the only way to promote properly done reforestations in Peru in order to end deforestation.

You and your colleague, Claudio Mosi, often cite job creation as one of the most important goals of the PCF.

Deforestation in Peru is a socioeconomic problem due to lack of jobs and formal opportunities in the jungle. The slash and burn cycle is responsible for over 80% of deforestation in Peru and is done by locals and immigrants as a way of sustenance for their families.

The only way to halt this cycle is to provide a significant amount of jobs, and the only industry that has the size and characteristics to be successful and easily applied in our jungle is forestry, specifically reforestation for sawn wood.

In this context, the PCF Forestry Standards have established clear guidelines of how reforestation must be done, through the ordered use of lands and the protection of forests.

How does PCF manage transaction costs?

If landowners comply with the PCF Standard, we will proceed with the certification free of charge. All the costs related to the assessment and certification of each landowner will be covered by PCF with the sales of the resulting Carbon Capture Certificate of its plantations.

From the total proceedings, 60% go directly to the landowner to cover all the maintenance and silvicultural costs that must be done.

PCF acknowledges reforestation as an expensive process, and that plantation management costs must be covered in order to produce significant volumes of timber. These costs related activities must be covered by selling CCCs at a price that covers the price of processing.

What is your experience in working on reforestation?

The Peru Carbon Fund team has over ten years of experience in the Amazon jungle, working with reforestation projects. We promote fast-growing, native species for the production of sawn wood and its derivates. Over time, we have worked to collect an immense amount of information, and closed a full growth-commercial-cycle from collection of seeds to the commercialization of the harvest, thus offering tree farmers realistic information on their future proceedings.

All this experience, which includes a full recognition of the local social and economic conditions, is captured in the PCF Standard.

Tell about your recent offset transaction with the company Packing and Plastics.

It is part of Peru Carbon Fund services to measure carbon footprints in order to compensate emissions with our Carbon Capture Certificates. Packing and Plastics Peru contacted us last year to do this. They were being required by their local clients, mostly exporters, to obtain a “green” certificate in order for them to better compete with their products abroad. We measured their carbon footprint and they turned into 100% Carbon Neutral, the first plastic company in Peru to obtain this certificate.

Developing your own standard, not to mention facilitating reforestation projects, is not an easy task. . .

There are several challenges, but the most important ones we are facing is the promotion of PCF throughout the Peruvian Amazon – that our reforestation programs are designed to create sustainable development and wealth through the creation of jobs and ultimately, to end deforestation.

Secondly, to change the mindset of companies in our country which find no value in these issues. By taking action through our business model, companies could realize the benefits inherited by promoting this process.

And what gets you to the office each day?

Ultimately, our main goal is to end the large scale deforestation of the Amazon jungle. The Peruvian Amazon jungle has its own idiosyncrasies and characteristics and it is necessary to recognize those in order to provide a viable solution to this large scale problem.

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Katherine Hamilton is an independent consultant and Strategic Adviosr for Ecosystem Marketplace. She can be reached at [email protected].

This Week In V-Carbon: Alternatives In Africa

At the African Carbon Forum earlier this month, Ecosystem Marketplace presented its findings from the State of the Voluntary Carbon Markets report in Cí´te d’Ivoire. While African nations have historically focused on CDM projects, interest in voluntary carbon projects has grown, showcased by a record $66M in offsets occurring in 2012 alone.

This article was originally published in the V-Carbon newsletter. Click here to read this article in its original format.

23 July 2013 | Ecosystem Marketplace writers recently returned from the Africa Carbon Forum in Abidjan, Cí´te d’Ivoire where we presented Africa-relevant findings from the  regional section  of our State of the Voluntary Carbon Markets 2013 report.

Here, we find that growing interest from voluntary buyers in supporting charismatic offset projects in the region raised the value of transacted offsets in Africa to a new high of $66M in 2012, as the average price for the region’s record activity (8 MtCO2e of transacted offsets) rose 6% to $8.30/tCO2e.

That said, the United Nations’ Clean Development Mechanism (CDM) market still dwarfs the voluntary carbon market, by transacted volume. Some project developers we surveyed in the clean cookstoves market continued to gravitate toward the CDM instead of (or in addition to) going straight to a voluntary market-only standard, hoping to keep a foot in both marketplaces in case compliance market CER prices recover, and attracted by larger-volume demand at any price.

 

Acknowledging that Africa’s carbon strategy can tap into but not rely on the voluntary markets alone, a new  Ecosystem Marketplace article  investigates opportunities and challenges for Africa under the CDM.  While African countries have traditionally been overshadowed as potential hosts for offset projects, the region could face expanding opportunities under the CDM given the European Union’s sharpened focus on least developed countries – most of which are located in Africa.

 

As always, opportunity comes with a grain of salt. Many LDCs will have access to the European market, but the current CER spot “is not a great price that you get for your natural resources,” cautions Andrei Marcu, Senior Advisor at the Center for European Policy Studies and Advisor to Poland. He says African countries will need to ensure that they have access to more markets, including those not necessarily inside the Kyoto Protocol.

 

These and other stories from the voluntary carbon marketplace are summarized below, so keep reading! Also, a reminder that Ecosystem Marketplace continues to collect data describing clean cookstove  and  forestry projects. Respondents to either survey can choose to be publicly recognized alongside a link to your website – and no individual data points are publicly reported. Both surveys close at the end of this month, so act fast!

 

And if you value what you read in this news brief, consider supporting Ecosystem Marketplace’s Carbon Program as a Supporting Subscriber.

Readers’ contributions help us keep the lights on and continue to deliver voluntary carbon market news and insights to your inbox biweekly and free of charge. 

For a suggested US$150/year donation, you or your company can be listed as a V-Carbon News Supporting Subscriber (with weblink) for one year (~24 issues). 
 


Reach out to inboxes worldwide and make your contribution  here  (select “Support for Voluntary Carbon News Briefs” in the drop-down menu). You will receive an email from the V-Carbon News team confirming your sponsorship listing and weblink information.

 

—The Editors

For comments or questions, please email: [email protected]


V-Carbon News

Voluntary Carbon

Simpler, sleeker, and more simpatico

Last week, the Ecologica Institute formally launched Version 5.0 of the SOCIALCARBON Standard, a co-benefits standard that debuted in 2008 with a focus on sustainable livelihoods. The new version features simplified templates and improved metrics, with a “temporary nature rule” that streamlines processes with the Verified Carbon Standard (VCS) by mandating an overlap of at least 50% of the VCS accounting monitoring period with the SOCIALCARBON monitoring period. Divaldo Rezende, one of the standard’s original creators, says the rule will help secure social benefits of a project before it is certified and lower costs to project developers by ensuring that the monitoring is harmonized with VCS. SOCIALCARBON will continue to accept Version 4.0 guidelines for all reports certified until December 31, 2013.

   – See Version 5.0
   – Read Ecosystem Marketplace coverage

 

What wood Markit do?

The Woodland Carbon Code (WCC) – launched in 2011 to encourage domestic afforestation activities in the United Kingdom – has just gone live on the Markit Environmental Registry. Until now, the UK Forestry Commission which oversees the standard had operated an internal register of WCC projects. The move to Markit is intended to enhance transparency and accountability in the trade of Woodland Carbon Units (WCUs) by enabling the tracking of project registration and credit listings, ownership, and retirement. In addition, Markit’s registry provides an introductory mechanism to convene buyers and sellers of WCUs.

   – Read press release

 

Just like that

JustGreen, an initiative of Just Energy – a publicly traded provider of energy solutions based in the US – has purchased two billion pounds (about 907,185 tCO2e) through its carbon offset and renewable energy credit programs. The purchase corresponds to cutting about 190,000 cars off the road and planting 4.5 million trees.  Just Energy buys carbon offsets certified to standards including VCS, IOS, and the Climate Action Reserve in response to customers subscribing to JustGreen Natural Gas or JustGreen products. JustGreen Lifestyle is carrying out a Facebook campaign to offset more greenhouse gas emissions, with the goal of covering 10,000 pounds for every new ‘like.’ If and when the campaign achieves 10,000 pounds, the goal will be doubled to 20,000 pounds.

   – Read more

 

Newcomers take a stand

In support of its expansion into forestry and land use, the Gold Standard Foundation has appointed three new members to its Technical Advisory Committee. Newcomers include Jacqueline Gehrig-Fasel of TREES Forest Carbon Consulting in Switzerland, Tony Knowles of the Cirrus Group in South Africa, and Asep Suntana of Surya University in Indonesia, who together offer decades of land use and forest carbon experience to the standard. Requirements for afforestation/reforestation projects under the Gold Standard are anticipated for public release in August.

   – Read more

 

Carbon couple dreams big

A recent article profiles the Rabieys, the entrepreneurial couple behind The Carbon Farmer, a tree-farm business in Alberta, Canada that converts previously tilled land into forests with native trees, shrubs and grasses in support of biodiversity and carbon sequestration. Customers have the option of paying $2 to have a tree planted on their behalf, or $15/tCOwe for carbon credits. Started as a project on a Rabiey family farm, the couple has expanded to partner with other landowners and landtrusts to afforest and reforest across Alberta. To date, they have planted over 300,000 trees, within plans to plant another 330,000 this year, expected to offset the annual footprint of 25,000 Albertans.

   – Read more

 

Judgment day for co-benefits

The following Climate Community & Biodiversity (CCB) Alliance projects, Abote Community-Managed Reforestation Project, Buffelsdraai Landfill Site Community Reforestation Project, REDD+ de la Concesií³n para Conservacií³n Alto Huayabamba Project, and the New Leaf CarbonProject are now accepting public comments on whether their project documents meet CCB requirements. The first two projects will accept comments through July 24, while the latter two will accept comments through July 28.

   – Provide comment

 

Climate North America

ROW recommendations see ripple effect

After two years of consultations with indigenous leaders, environmentalists, and government representatives, the REDD Offsets Working Group (ROW)  has just released its final recommendations  on how to work international REDD+ offsets into California’s cap-and-trade program. The recommendations account for indigenous rights, calling on California to ban credits that don’t conform to international principles and to retain the right to suspend recognized credits if they are later found to be out of compliance.  More than four dozen representatives of major corporations, NGOs, and indigenous communities  have signed a letter of support  for the recommendations.

 

Of the two states considering to feed REDD+ credits into California’s cap-and-trade scheme – Chiapas, Mexico and Acre, Brazil – the State of Chiapas  was inaccurately reported to have canceled its REDD+ program. The Chiapas state government has released a response reaffirming its commitment to jurisdictional REDD+.

 

The momentum of the broader movement to recognize forestry within compliance carbon markets is building not only in California but also at a national level. With US President Barack Obama’s recent pledge to REDD+ in his Climate Action Plan, the US joins a number of nations and corporations committed to using the UN mechanism to curb tropical deforestation and lower greenhouse gas emissions. Read Ecosystem Marketplace coverage  here.

   – Read ROW recommendations

 

Easy does it

Last week, the California Air Resources Board (ARB) released proposed changes to its cap-and-trade program, to be considered by the board in October. On the list is a mechanism that prevents carbon allowance prices from overshooting a set threshold, and the offering of additional allowances for sale at a price-containment reserve auction before the November 1 deadline of each compliance period. In order to ease the burden for emitters, another major item seeks to grant free allowances covering 100% of emissions in both the first and second compliance periods to industrial sectors at risk of moving out of California due to compliance costs.

   – Read more about proposed changes
   – Read NRDC reaction to proposed changes

 

Kyoto & Beyond

Africa looms large on CDM map

The Clean Development Mechanism recently passed its 7,000 project mark, with 1,000 new projects accepted since February despite still-despondent CER prices. A new Ecosystem Marketplace article scopes out the potential for CDM offset project development in Africa, a continent that has been traditionally overshadowed as a potential host of CDM projects but faces increasing opportunities given the European Union’s sharpened focus on least developed countries – most of which are located in Africa  – away from emission reductions in countries like China, India, and Brazil.

   – Read more about CDM milestone
   – Read Ecosystem Marketplace article

 

EU ETS on the operating table

European Union member states recently resuscitated the “backloading” proposal, giving the green light to a revised draft regulation that limits the number of international credits that emitters can use to comply with the EU Emissions Trading Scheme. The revised proposal assures that backloading will only be a one-time affair, with allowances to be put back on the market starting the year after the year in which allowances have been withheld, instead of waiting until 2018-2010. It calls for 600 million of the 900 million backloaded allowances to be made available to create a fund supporting innovative low-carbon technologies and demonstration projects, alongside measures to cut costs and carbon emissions of energy-intensive industries.

   – Read more from UPI
   – Read more from Argus

 

Global Policy Update

The double-edged lifebuoy

Australian Prime Minister Kevin Rudd announced last week that the country’s controversial national carbon tax will be replaced by an emissions trading scheme in July 2014, a year ahead of schedule. The advance launch is anticipated to cut the cost of carbon from a projected AU$25.40/tCO2e in July next year to around AU$6/tCO2e. While the lower price tag on carbon is expected to reduce pressure on both polluters and consumers, it would also mean less income to support projects developed under the government’s Carbon Farming Initiative (CFI) and funds like the Biodiversity Fund which currently rely on carbon tax revenue.

   – Read about price float decision
   – Read about impact on CFI/Biodiversity Fund

 

Kazakhstan ETS: business may stall great success

In January of this year, Kazakhstan became the first former Soviet state to launch a national carbon trading pilot, with plans to transition to a fully operational “second phase” emissions trading phase in 2014. In the current pilot phase, businesses are allowed to buy an unlimited amount of allowances from the government, and face soft penalties for noncompliance. Despite strong backing from President Nazarbayev, the country’s planned move to an ETS has caused ripples of discontent among the business community – in particular with KazEnergy, an alliance of energy producers. Even within the government, some officials have voiced doubt about the readiness of the Ministry of Environmental Protection (MEP) to administer the ETS, and suggest the 2014 date could be pushed back further.

   – Read more

 

Russian politics

High-level meetings held recently could indicate a new future of Russia’s carbon markets. At the first, held by Russia’s inter-ministerial Working Group on Climate Change and Development, a proposed draft decree endorsing a 25%-below-1990 target was rejected by the president’s administration a second time, potentially resulting in up to six months’ delay for decree approval. At a different meeting held at the Economic Ministry, attendees agreed to develop a blueprint for a future national carbon mechanism, to be launched as early as 2014. Despite converging interest in a carbon market, the two proposals are pursuing two different tracks: with the Climate Change and Development group favoring a project-based approach and the Economic Ministry backing broader market-based initiatives.  

   – Read more

 

Featured Jobs

Technical Specialist – Plan Vivo Foundation

Based in Edinburgh, the Technical Specialist will select and prepare approved methodologies for projects to use under the Plan Vivo Standard 2013 and coordinate and conduct technical reviews of project documents. Candidates should have a Master’s Degree in ecosystem services or a related discipline such as environmental management or forestry.

   – Read more about the position here

 

Carbon Markets Specialist – Ecodit

Based in Kazakhstan, the Carbon Markets Specialist will be the lead technical expert for support to the Government of Kazakhstan and regulated community on the ETS. Candidates should have a Master’s Degree in an environmental- or climate change-related field, such as public policy, economics, law, science or international development and 7+ years of experience in the design and implementation of carbon market mechanisms. Read more about the position here.  

   – Read more about the position here

 

Intern – China Beijing Environmental Exchange

Based in Beijing, the Intern will research existing international and domestic carbon markets and track and manage cooperation projects with both international and domestic carbon trading institutions. Candidates should have a Master’s Degree related to policy, environment, economics or finance and be fluent in both English and Chinese.

   – Read more about the position here

 

Local Expert, LOME – myclimate

Based in Kampala or Nairobi, the Local myclimate Expert (LOME) will identify suitable projects for the myclimate project pipeline, conduct screenings and due diligence of projects and coach project partners throughout the entire carbon cycle. Candidates should have a degree in engineering, renewable energy, environmental science or related field and 2-5+ years’ work experience in related relevant fields.

   – Read more about the position here

 

Project Director, Conservation Investments – The Nature Conservancy

Based in San Francisco, the Project Director will support the California chapter’s work in conservation finance, environmental economics, and conservation assets such as carbon credits. Candidates should have an M.B.A. or other graduate degree and outstanding analytical and project management capabilities.

   – Read more about the position here

 

2 Positions – Terra Global Capital

Based in San Francisco, the AFOLU Carbon Quantification and Development Senior Specialist will review technical aspects of AFOLU carbon projects and provide guidance to project developers regarding project typology, eligible methodologies and mechanics of carbon monitoring, reporting and verification. Candidates should have a PhD in applied natural sciences such as forestry, ecology or natural resources and 5+ years’ experience. Also based in San Francisco, the Natural Resource Climate Change Project Manager will support the carbon development process for international forest and land-use carbon projects and jurisdictional programs. Candidates should have a Bachelor’s in environmental science or natural resource management and 5+ years’ experience.  

 

 

Executive Director – The Climate Trust

Based in Portland, the Executive Director will oversee and direct growth of the offset portfolio and provide visionary and strategic leadership to advance the organization’s mission, revenue deployment, impact and growth. Candidates should have at least a Bachelor’s Degree and 10+ years’ experience as a senior executive in a an environmental or energy-related organization.

   – Read more about the position here

 

 

 

ABOUT THE ECOSYSTEM MARKETPLACE

Ecosystem Marketplace is a project of Forest Trends, a tax-exempt corporation under Section 501(c)3. This newsletter and other dimensions of our voluntary carbon markets program are funded by a series of international development agencies, philanthropic foundations, and private sector organizations. For more information on donating to Ecosystem Marketplace, please contact [email protected].


Additional resources

Indigenous Groups, NGOs, And Major
Corporates Line Up Behind REDD+ in Cali

More than four dozen representatives of major corporations, global NGOs, and indigenous communities from around the world have signed a letter of support for including carbon credits from programs that save endangered rainforest in California’s Climate Policy – provided those credits meet certain criteria.

SAN FRANCISCO | 18 July 2013 | Eight indigenous leaders from Latin America and Africa have joined corporate giants like Disney and Pacific Gas & Electric as well as non-governmental organizations like Environment Africa and the Skoll Foundation in urging the California Air Resources Board (ARB) to recognize “jurisdictional REDD” (Reduced Emissions from Deforestation & Forest Degradation) carbon offsets, which are generated by saving endangered rainforest in jurisdictions that, like California, are reducing emissions across their jurisdiction. The endorsement only applies to credits from REDD projects that are recognized by and accounted for by those jurisdictions.

Among the signatories to a letter of support for jurisdictional REDD are Chief Almir Surui, who spearheaded the creation of the first indigenous-led REDD project, and Chief Pascal Kizaka, who partnered in the creation of the first REDD project ever to sell credits under the Verified Carbon Standard. Their projects are not likely to be impacted by the endorsement, at least not in the near term, because neither is in a jurisdiction that has pledged to reduce its emissions.

The letter comes as ARB prepares to finalize the state’s climate policy, and several signatories have also submitted letters individually. At the same time, the independent REDD Offsets Working Group (ROW) released its recommendations for integrating jurisdictional REDD into California’s climate regulations.

In an interview with Ecosystem Marketplace last month, Chief Almir said that he sees REDD as a way of bridging collective indigenous values and capitalist non-indigenous values.

“In the indigenous vision, the standing forest has intrinsic value that we collectively must protect, but in the vision of the non-indigenous, capitalist world, the standing forest will only be respected when it yields a result, a payment, some sort of deliverable,” he said. “REDD is a vehicle through which the capitalist system can recognize some of the value that we have always recognized.”

He emphasized, however, the need to provide safeguards for projects involving indigenous people.

“There are several different ways to develop REDD, and if someone from outside who doesn’t understand our rights and values comes in and wants to do REDD on indigenous lands solely for economic reasons, that could have negative ramifications,” he said. “That’s why it’s important for indigenous peoples to develop REDD as protagonists with autonomy and rights. If the forest survives, so does our traditional knowledge, and that gives us the opportunity to develop the territory in a sustainable way.”

Forests are disappearing at the alarming rate of 13 million hectares per year, accounting for an estimated 15% of total annual greenhouse gas emissions. Climate change experts largely agree that climate stability cannot be achieved without the conservation of the world’s remaining forests. REDD+ is one of the best available solutions to this complex challenge.

If approved, regulated entities would be allowed to meet up to 2% of their compliance obligations through approved jurisdictional REDD+ offsets until 2018, and up to 4% thereafter. These limitations ensure that regulated entities continue to cut emissions at source while also acknowledging the importance of tropical forests and sustainable land use within climate change policy.

Additional resources

This Week in Forest Carbon: Lessons From Vietnam

A new Forest Trends brief compares and contrasts case studies from two villages in Vietnam to highlight the implications of illegal logging on REDD+ and FLEGT as well as the role of community participation and land tenure agreements in forest governance. Meanwhile the Ecosystem Marketplace Carbon Program gears up for its final round of data collection in preparation for the 2013 State of the Forest Carbon Markets report.

This article was originally published in the Forest Carbon newsletter. Click here to read the original.

15 July 2013 | Hot off the Forest Trends press, a  new brief  explores the implications of small-scale illegal logging on REDD+ and Forest Law Enforcement, Governance and Trade (FLEGT) initiatives in Vietnam.

The brief highlights the rationale of clear and secure tenure rights for local people living near forests containing timber – not just to occupy them, but also to sustainably harvest forest assets if they so choose.  Without these rights, locals are excluded from forest benefits and more likely to illegally log. According to the brief, “increasing resources dedicated to law enforcement in the absence of changes in incentive structures” is not enough to stop illegal logging.

To contrast what hasn’t worked in  forest governance in small-scale forest management  and what has worked, Forest Trends presents case studies from the villages of Ban Y and Phuc Minh (whose names have been changed) in Hoa Binh and Binh Dinh provinces. In Ban Y, forest tenure rights granted to villagers by the government excluded tree harvesting rights. As a result, community members were barred from extracting timber from these forests, despite their historical claims on the forests, legal tenure rights, and livelihood needs. Harmful illegal logging ensued, with Ban Y villagers taking on the largest risk and least benefits while government officials, brokers, and traders captured most of the benefits.

 

Conversely in the village of Phuc Minh, while villagers received similar tenure rights as in Ban Y, their forest was not under the prohibitive protection category and instead received support from the German Development Bank for a community forestry project that combined forest protection with sustainable harvest techniques. Villagers actively participated in decision-making on how to distribute timber revenues and remaining harvested timber, prioritizing community members in need and those who complied with forest protection responsibilities.

 

The lessons learned from Vietnam’s forest governance experience have direct implications for FLEGT and REDD+, whose missions both prioritize actions against illegal logging. For forest carbon in particular, the brief stresses that the effectiveness of community-based REDD+ efforts relies on the reorientation of law enforcement to support rather than oppose small-scale forest management. In addition, the brief says the design of REDD+ should combine performance-based payments for forest protection with active use and management by smallholders, since REDD+ payments alone are unlikely to provide sufficient incentives for forest protection.

 

Learn more about Forest Trends’ recommendations on FLEGT and REDD+ in Vietnam  here and keep reading below for the inside scoop on other important forest carbon developments!

 

Here at Ecosystem Marketplace, we are in the final stages of data collection in preparation for our 2013 State of the Forest Carbon Markets report. If your organization has developed forest carbon projects for the voluntary or compliance carbon market in 2012, we invite you to describe your project and any 2012 transactions by participating in our survey before July 31, 2013. This will be the final deadline for organizations wishing to take part in this year’s report.  

 

Forest carbon project developers that provide project-level information – whether or not you have transacted credits yet – can also choose to have their project profiled as the Forest Carbon Portal’s Featured Project. You can also specify your preferred level of confidentiality – from completely open (including transaction prices and volumes) to completely confidential. Create a profile and submit your responses here!

 

—The Ecosystem Marketplace Team

If you have comments or would like to submit news stories, write to us at [email protected].


News

International Policy

Mission accomplished

After a mission to Panama in early June, an independent investigation and evaluation team  recently published its initial findings regarding Panama’s withdrawal from the UN-REDD+ Programme. After receiving input from a range of in-country stakeholders, the report was compiled by the investigation and evaluation team and later presented at the UN-REDD Policy Board meeting in Lombok, Indonesia at the end of June. Preliminary findings confirm faults in the National Programme design as well as the absence of a participatory process, leading to the exclusion of indigenous peoples in program activities. The investigation and evaluation team plans to return to Panama and release a final report in August.

 

US Policy

Follow the golden rule?

Following a  ruling by the U.S. Court of Appeals for the District of Columbia Circuit  in  Center for Biological Diversity v. U.S. Environmental Protection Agency  (EPA), forest owners are encouraging the EPA to prioritize the completion of amendments to its greenhouse gas regulations in order to take advantage of the carbon benefits of forest bioenergy. The ruling concluded that the EPA “did not adequately justify its decision to temporarily defer biogenic emissions from its greenhouse gas regulations”, but did not clarify whether the EPA could finalize “permanent amendments to its rules regarding the treatment of such emissions.”  The greenhouse gas amendments are expected to greatly impact the degree to which private forest owners in the U.S. are able to provide forest carbon offsets.  

 

Project Development

Disney helps dreams come true

A new  article  translated from Ecosystem Marketplace’s  Valorando Naturaleza  provides an in-depth look into Conservation International’s VCS/CCB-validated Alto Mayo REDD+ project in Peru, and Disney’s $3.5M contribution to the project. Tracing its roots back to 2008, the project has resulted in the mainstreaming of sustainable agriculture practices in the area, preservation of local biodiversity, and the generation of 3 MtCO2 in emissions reductions to date. Of that, 400,000 tCO2e has been attributed to Disney’s contribution and gone toward offsetting the company’s carbon footprint. Disney has since agreed to provide a second grant of $3.5M to Conservation International’s work in Alto Mayo.  

 

A rumble in the jungle

Greenomics Indonesia, a non-governmental conservation organization, recently  accused the Rimba Raya Conservation project for its alleged false claim  of obtaining approval from the Indonesian government for a 64,000-hectare carbon project, reportedly the world’s largest. Vanda Mutia Dewi, national program coordinator for Greenomics Indonesia, asserted that Rimba Raya conservation received an ecosystem restoration permit in March 2013 for only 36,331 hectares of land and believes that of the remaining hectares, 18,642 hectares are in the possession of the Tanjung Putting Conservation Park. Indonesia’s Forestry Ministry said that a cooperation plan agreed to by the Tanjung Putting Conservation Park and Rimba Raya Conservation could not yet accommodate carbon market activities.

 

A minor setback  

Elsewhere in Indonesia, AusAid – the Australian government’s foreign development assistance agency – recently announced its  plan to end its support for a major forest restoration project on the island of Borneo. The $47-million project, known as the Kalimantan Forests and Climate Partnership (KFCP), aimed to restore 200,000 hectares of peatland and reduce 700 MtCO2e over 30 years. However, it encountered approval delays and objection from officials and local communities. Australia’s withdrawal, along with the challenges of Indonesia’s bureaucracy and opposition from multiple parties, could potentially set back Indonesia’s REDD Programme. While the “main thrust” of KFCP has ended, both the Australian and Indonesian governments are discussing which parts of the project could benefit from additional work over this next year.

 

Yunnan in the thicket of it

While seven pilot emissions trading schemes are in various stages of initiation across China,  Yunnan Province launched its own carbon sequestration program  on June 17, when China debuted its National Low-Carbon Day. Yunnan Forestry Investment Company (YFI) sold 17,800 tCO2e worth of carbon credits at 1.07M yuan (US$174,000) to the Guangdong-based Friends of Iron and Steel. The Yunnan Development and Reform Commission brokered the deal. The offset purchase will help finance YFI’s work to plant and maintain forest and bamboo groves, supported by a 30-year lease granted by the provincial government to manage 3,500 ha of unused land in Xishuangbanna Dai Autonomous Prefecture. The project is expected to sequester 550,000 tCO2e over three decades.

 

Judgment day for co-benefits

The following Climate Community & Biodiversity Alliance projects, Abote Community-Managed Reforestation Project, Buffelsdraai Landfill Site Community Reforestation Project, REDD+ de la Concesií³n para Conservacií³n Alto Huayabamba Project, and the New Leaf Carbon Project are  now accepting public comments  on whether their project documents meet CCB requirements. The first two projects will accept comments through July 24, while the latter two will accept comments through July 28.  

 

National Strategy & Capacity  

Binh there, done that  

An Ecosystem Marketplace  article  summarizes Forest Trends’ recent paper on Vietnam’s Forest Law Enforcement, Governance and Trade (FLEGT) and REDD+ initiatives, exploring policies pertaining to illegal logging. Through two case studies in the provinces of Hoa Binh and Binh Dinh, the paper discusses the history behind deforestation in the two regions and examines the lack of clear and secure tenure and land use rights, which has further contributed to deforestation and aggravated an already corrupt forest governance system. According to the paper, in order for FLEGT and REDD+ to succeed, forest governance must support small-scale community forest management with equitable distribution of tenure rights and other benefits to local people.

 

Bridging the Great Wall

As China rolls out seven domestic pilot emissions trading schemes this year – with the city of Shenzhen’s debuting last month – market actors are wondering how carbon offsets will fit into the picture.  A new Ecosystem Marketplace article  provides a breakdown of the types of offsets eligible for trading, existing supply and potential demand, as well as what’s on the horizon. Offset methodologies approved for use by China’s National Development and Reform Commission (NDRC) do not yet cover forestry and land use, which is still in the process of being vetted. Domestic initiatives like the Panda Standard, China’s first voluntary carbon standard, are seeking NDRC approval for their afforestation/reforestation methodologies.  

 

Beyond the forest

In the district of Tanjung Jabung Barat on the Indonesia island of Sumatra, a  Reducing Emissions from All Land Uses (REALU) project  is in full swing. REALU, an initiative funded by the Norwegian Agency for Development Cooperation, “operates in several countries to find out how to reduce greenhouse gas emissions within an entire landscape rather than just from a particular activity or sector.” The REALU project provides technical assistance to help support the Indonesian government’s low-emissions development plans, currently concentrating its efforts on a 16,000-hectare plot of protected peat forest. Central to the work is a low-carbon land-use planning method developed by the World Agroforestry Centre in collaboration with the government’s district planning and development agency.

 

To log or not to log

A new report by The Australia Institute  asserts that it makes more financial sense to conserve the native forests of southern New South Wales for carbon credit generation than to continue logging, valuing forest carbon abatement opportunities at $222 million over the next 25 years. The government of New South Wales does not agree, stating that the report used incorrect assumptions and is based on an unrealistically high carbon price. While the federal government’s Carbon Farming Initiative could broaden its reach in the future, to date, native forestry logging operations are not yet eligible under the scheme.  

 

Ethiopia off on good foot

The REDD Desk recently added  Ethiopia to its collection of REDD+ readiness profiles. As part of the Climate Resilient Green Economy Strategy (CRGE), Ethiopia joins the ranks of the Guyana, Vietnam and Indonesia in building a development plan intended to reduce emissions from the forestry sector and encourage a low-carbon development path. In addition to developing a green economy, the CRGE Strategy intends to help Ethiopia achieve a middle income country status by 2025. Ethiopia is in its second phase of REDD+ readiness with two pilot projects, Bale Mountains Eco-Region REDD+ Project and the Oramia Region REDD+ Pilot Programme, currently underway.  

 

Columbian consultations

At a recent UN-REDD Programme Policy Board meeting, Colombia presented its Readiness Preparation Plan, highlighting both government and non-government participation and consultations with woman and youth. In response, the Policy Board approved  $4 million in funding earmarked for Columbia’s National Programme, as well as another $4 million for a community grant initiative that will provide resources and build capacity in local communities while empowering them to engage in REDD+ activities. Last year, Colombia held an inception workshop for the creation of a Colombia-based market platform for voluntary carbon offset transactions, to have an initial focus on forest carbon.

 

The crown jewel

Over the last ten years, wildfires and mountain-pine beetle infestations have taken their toll on forest land in British Columbia. The B.C. provincial government recently announced a partnership with the Carbon Offset Aggregation Cooperative to plant trees on Crown land,  allowing private-sector companies to engage in carbon offset activities through reforestation efforts. Through the B.C. Forest Carbon Partnership Program, more than one million trees could be planted in the next five years. According to Ben Parfitt, a resource policy analyst with the Canadian Centre for Policy Alternatives, “the success of the private-sector project will likely hinge on the market value of carbon offsets.

 

Science & Technology Review

Seeing hotspots

Recently launched, the  Mitigation Lab, a new laboratory under the World Agroforestry Centre’s Climate Change Unit,  is intended to help researchers identify and quantify GHG emissions from “hotspots” across a variety of ecosystems including forests, agriculture, and dairy farming. The lab’s gas chromatographs are capable of analyzing 120 GHG samples over an eight-hour time period, allowing researchers to compare GHG emissions between landscapes on which climate-smart agriculture has been practiced and those on which it has not – ultimately expected to provide evidence that climate-smart agriculture in fact contributes to climate change mitigation while increasing farm production.

 

Speaking volumes

Scientists and climate change experts are now able to access tree models for forest volume, biomass and carbon stock through an online platform for the first time.  GlobAllomeTree, launched by the Food and Agriculture Organization (FAO) of the United Nations, uses allometric equations to evaluate different forest services like timber production and bioenergy strategies involving forest volume, biomass, and forest carbon, and is expected to support REDD+ efforts. “This is the first time that countries have access to an extensive database of tree models used to evaluate resources worldwide,” says FAO Forestry Officer Matieu Henry. “It allows them to get a clear picture on their forests’ capacities to store carbon.”

 

Publications & Tools

REDD+y to integrate

Integrating Communities into REDD+ in Indonesia, a PROFOR working paper, addresses how REDD+ can tackle underlying community issues such as lack of access to forest land. The report provides background on REDD+ in Indonesia and highlights the need to integrate community development approaches into a REDD+ framework, the role of communities in Indonesia’s forestry sector, as well as mechanisms for addressing a multitude of community-level funding needs.

 

Keep your options open

Published by Forest Carbon Asia,  REDD+ Biodiversity Safeguards: Options for Developing National Approaches  explores the potential to develop a national safeguard approach that would comply with both international policy commitments and national policy frameworks. In light of the Cancun Safeguards and Aichi Biodiversity Targets, this brief discusses REDD+ readiness activities in relation to biodiversity across 20 Asian countries, including a discussion of Vietnam’s national safeguard approach.  

 

Jobs

2 Positions– The Nature Conservancy  

Based in Mexico, the  Agricultural Economist, Yucatan Peninsula  will contribute to the establishment of Mexico’s REDD+ Program on the Yucatan Peninsula and develop the regional/local assessments, tools, and frameworks for the design and implementation of sub-national REDD+ strategies. Candidates should have a Bachelor’s and 5+ years’ experience in conservation practice. Based in Brazil, the Coordinator, Amazon Forest  will provide technical and political leadership and support for The Nature Conservancy’s REDD+ work in the Amazon and will build strategic, scientific and technical capacity among staff and partners on REDD+. Candidates should have a Bachelor’s and experience in REDD+, forest conservation and/or sustainable agricultural production.  

 

Global Climate Change Specialist – ECODIT  

Based in Washington, D.C., the Global Climate Change Specialist will identify ways to integrate clean energy, land use and carbon sequestration, and adaption to climate change and development efforts. Candidates should have a Master’s Degree in a field relevant to climate change-related science and policy and 5+ years of experience in environmental management. Read more about the position  here.

 

Technical Specialist – Plan Vivo Foundation

Based in Edinburgh, the Technical Specialist will select and prepare approved methodologies for projects to use under Plan Vivo Standard 2013 and coordinate and conduct technical reviews of project documents. Candidates should have a Master’s in ecosystem services or a related discipline such as environmental management or forestry. Read more about the position  here.  

 

Junior REDD+ Policy Consultant – Climate Focus

Based in Thailand, the Policy Consultant will support the USAID funded “Lowering Emissions in Asia’s Forests” (LEAF) project and will help coordinate work and prepare advice on issues affecting REDD+ policy design. Candidates should have a Bachelor’s Degree and 3+ years of experience in natural resource management, forest policy, or the carbon markets. Read more about the position  here.  

 

2 Positions – Conservation International

Based in Botswana, the  Manager, Government Liaison and Environmental Policy  will be responsible for liaising with the Government of Botswana on matters related to the Gaborone Declaration and supporting policy research on Natural Capital Accounting, PES and REDD. Candidates should have a Master’s or PhD in environmental, political or social sciences and 2+ years’ experience in environmental policy. Based in Indonesia, the  Deputy, Chief of Party  will oversee a team in the North Sumatra program area and will be responsible for local coordination, monitoring and development of the annual Sustainable Landscapes Partnership program workplan. Candidates should have a Bachelor’s in natural resource management or a related field and 7+ years’ experience with public-private partnerships.  

 

2 Positions – World Wildlife Fund

Based in Zambia, the  Community Forest Lead, Community-Based Forest Management Program  will be responsible for leading efforts to sustainably manage 700,000 hectares of Participatory Forest Management Areas in Zambia. Candidates should have a Master’s in rural development, forestry, natural resource management or a related field and 7+ years’ experience. Based in the Democratic Republic of the Congo, the  Chief of Party, Central Africa Forest Ecosystems Conservation  will direct staff, oversee grant, sub-grants and consulting contracts and coordinate with staff from WWF and partner organization on a daily basis. Candidates should have at least a Master’s in forestry, conservation biology or a related field and 8+ years’ field experience.  

 

Chief of Party – CARE  

Based in Zambia, the Chief of Party will contribute to the USAID/Zambia’s Climate Change Program Objective and the Community-Based Forest-Management Program for REDD+ Readiness. Candidates should have at least a Master’s Degree in forestry, ecosystem services, natural resource management, or international development and 10+ years of leadership experience in managing international development programs. Read more about the position  here.

 

ABOUT THE FOREST CARBON PORTAL

The Forest Carbon Portal provides relevant daily news, a bi-weekly news brief, feature articles, a calendar of events, a searchable member directory, a jobs board, a library of tools and resources. The Portal also includes the Forest Carbon Project Inventory, an international database of projects including those in the pipeline. Projects are described with consistent ‘nutrition labels’ and allow viewers to contact project developers.

 

ABOUT THE ECOSYSTEM MARKETPLACE

Ecosystem Marketplace is a project of Forest Trends, a tax-exempt corporation under Section 501(c)3. This newsletter and other dimensions of our voluntary carbon markets program are funded by a series of international development agencies, philanthropic foundations, and private sector organizations. For more information on donating to Ecosystem Marketplace, please contact [email protected].


Additional resources

Small Scale Illegal Logging In Vietnam:
Implications for FLEGT And REDD+

Key results from a Forest Trends paper on the government of Vietnam’s Forest Law Enforcement, Governance and Trade (FLEGT) and the country’s REDD+ initiatives finds that illegal logging can only be curtailed with policies promoting small scale forest use and management that benefit the local communities.

8 July 2013 | Strategies attempting to curb illegal logging in Vietnam must provide forests benefits for the local communities in order to be effective. This means clear and secure tenure rights are distributed to the local people.

It’s a key lesson to consider in the Forest Law Enforcement, Governance and Trade (FLEGT) and Reduced Emissions from Deforestation and Forest Degradation (REDD+) initiatives currently pursued by the Government of Vietnam and the focus of NGO and Ecosystem Marketplace publisher Forest Trends’ Information Brief on Vietnam deforestation.

The brief examines two case studies from Hoa Binh and Binh Dinh provinces that illustrate how differences in the allocation of clear and secure tenure and use rights affected the prevalence of illegal logging. In the small Dao village of Ban Y (all village names have been changed), villagers were not given meaningful tenure rights to the local forest. Villagers can only derive benefit from the forest if they actively participate in illegal logging. In the Kinh village of Phuc Minh, villagers received full tenure rights, with the result that the villagers themselves protected local forests against outside encroachment guaranteeing a sustainable timber harvest and long term benefits.

Background

Despite the Government of Vietnam’s attempts to increase enforcement, illegal logging is still a pressing concern in Vietnam today. The trade in illegally sourced timber involves a range of actors from large-scale and powerfully connected networks to small-scale operators, and affects all forests across the country and including those zoned for protection. The persistence of small-scale illegal logging has given rise to significant public concern and increasingly severe law enforcement efforts by the central government.

The Vietnamese media typically portrays small-scale Illegal logging as being perpetrated by poor villagers who invade government property containing natural forest with valuable timber. Corrupt forest protection officers are described as turning a blind eye on the villagers’ illegal practices, and they all collude with traders to perpetuate this trade in illegal timber for personal gain. Media and government recount this simplified story, leading to widespread calls upon the central government to strengthen law enforcement by “cleaning up” Vietnam’s forest protection apparatus and increasing the human and financial resources allocated to enforcement.

Research shows that this conventional account of small-scale illegal logging is overly simplistic. Illegal practices are not simply due to the presence of poor villagers, corrupt local officers and illegal traders. Nor is the widespread presence of illegal logging simply due to a lack of law enforcement. Illegal practices instead reflect a combination of factors, a key one being the lack of tenure rights given to local people living near forests containing valuable timber, thus legally excluding them from forest benefits including those from timber. Increasing resources dedicated to law enforcement in the absence of changes in incentive structures for all involved will not work.

Ban Y: Small-Scale Illegal Logging in a Protection Forest

In 1995, government policies on forestland allocation granted individual households in Ban Y tenure rights for forestland. However, this transfer of tenure rights did not include the concurrent transfer of tree harvesting rights to the villagers. The local forestlands were classified as protection forests for watershed protection. Households were not allowed to extract any timber from these forests, despite their historical claims on the forests, legal tenure rights and livelihood needs.

Despite the prohibition, villagers began to cut trees for cash income. Villagers used relatively harmful “cut and run” extractive techniques, typically damaging a dozen smaller trees when cutting and hauling each big log, leaving branches and small trees behind. This damage is increasingly further within forest areas as high value trees are being progressively depleted. Timber cut in the forest near Ban Y was brought to Huu Bang, a timber trading village near Hanoi, and eventually ended up as furniture in Vietnam’s domestic markets.

Despite mandates to check the legality of timber harvesting, trade and transport of timber, a complex chain of government officials allowed the illegally sourced logs to be transported between Ban Y and Huu Bang, and were facilitated by traders, local brokers and village leaders.

In this case study, one single timber trader was a critical facilitator, making payments to village leaders, local brokers (called “lawmakers” by villagers), tax and traffic officers. The local brokers would in turn make payments to other government officials who would ultimately allow the timber to pass into the wholesale markets (Figure 1). The trader’s truck encountered no difficulties when passing through a series of checkpoints overseen by various local government officials.

Among all actors involved in getting the timber from tree to market, Ban Y villagers benefitted the least and bore the most risk. While collectively government officials (23) and brokers (2) captured the most (39%) of the benefits, on a per capita basis the trader made the most profit (Figure 2). Villagers received 30% of total benefits, but the benefit was spread between numerous villagers, and they spent more time and bore more risks (e.g., injuries associated with logging and hauling of the tree) than the other groups. The average return for a day’s labor was a mere 29,000 VND (or US$1.80 in 2004, when the research was undertaken). The trader obtained 9% of the total benefit as a single person and was not exposed to the same kinds of risks as the villagers. A wholesaler in Huu Bang received 22%.

Why did the villagers cut the trees?

The 1995 forestland allocation in Ban Y did not ensure forest protection. While the villagers received formal rights to the land, they did not receive any rights to the trees on the land. Villagers were unable to translate the formal rights into tangible benefits for themselves – either for cash income or subsistence needs.

As might be expected, villagers in Ban Y ignored the government’s restriction placed on the forest and continued to conduct their customary practices in the forest with reference to the rights that they had enjoyed historically. “Forest belongs to villagers” was a common expression, allowing villagers to justify the logging regardless of the government’s prohibition. They were driven by high demand and lucrative prices being offered on the domestic timber market. Despite the low nominal benefits, the prices being offered by local traders enticed the villagers to collude with the trader and local officials. The tale of Ban Y is repeated across Vietnam, driving the depletion of timber and degradation of forests.

Phuc Minh: Forest Protection and Management by Village Community

Similar to Ban Y village, the village of Phuc Minh received the formal tenure rights (The district People’s Committee granted the village tenure rights to the forest for a 50-year period under a single title) to the forest lands around their village. However, in this case, the Phuc Minh forest lands were not placed in the prohibitive protection category. In fact, with technical and financial supports from German Development Bank (KfW) through a community forestry project, the allocation was given with the understanding that villagers would combine forest protection with low-impact logging to ensure both positive social and environmental outcomes. The German Reconstruction Bank (KfW)-funded project aimed to improve local livelihoods and forest conditions by way of community forest management (Community forest management rested on the allocation of 364 ha of natural forest containing valuable timber to Phuc Minh village in 2008), helping the villagers’ Community Forest Management Board to establish community forest protection and development regulations which set out the rights and duties of the community with regard to forest use and management. Villagers and project staff report that community management put an effective stop to illegal activities. The villagers received the permission to harvest trees only after they demonstrated an increase in timber volume and forest value since the time of allocation.

Technical and financial assistance from the KfW project undoubtedly increased not only the ability of villages to obtain meaningful rights to forest resources, but also their technical capacity. The project trained villagers in forest inventories, silvicultural management, and harvesting techniques. Villagers conducted a forest inventory to determine the status and timber value of the forest they had been allocated. They contracted technical staff to develop and submit forest management and sustainable timber harvesting plans to the district People’s Committee for approval. They conducted the first timber harvest in 2010-2011, extracting almost 100 m3 of timber through sustainable harvesting techniques.

Villagers assumed an active role in decisions about the use of the harvested timber. They decided to give preference to community members in need. With support from the project and local authorities, the Community Forest Management Board organized a tender process for the sale of the remaining timber. They also decided how to use generated revenues after paying the applicable resource tax and fees to the Commune People’s Committee. Retaining around 60% of total revenues, villages decided to fund the operations of the Community Forest Management Board, pay for protection activities and invest a significant share in the village forest development fund.

Perhaps most importantly, villagers who could prove compliance with their responsibilities for forest protection were allowed to withdraw operational funds from a collective village savings book established with the Bank for Social Policies. This savings book was funded out of revenues from the harvested timber in recognition of the wider benefits generated by the villagers’ forest and the expenses incurred by villagers in protecting the forest.

Community forest management was successful in Phuc Minh not only because villagers derived tangible benefits from the forest and participated in decision-making but also because their benefits were linked to performance in forest protection. Support provided by the KfW project clearly also contributed to the success.

Tapping the potentials of small-scale forest management

Ban Y and Phuc Minh offer two contrasting cases on how forest governance can accommodate small-scale forest management. The comparison demonstrates that in the context of similar law enforcement arrangement existed in the two villages, the critical significance of the full package of tenure and use rights which enable villagers’ ability to derive tangible benefits from forests for sustainable forest management.

The observations from Ban Y demonstrate that villagers will not make constructive contributions to forest management if they are not given full tenure rights including the use right or are excluded from forest benefits. The inability of the villagers to benefit from nearby forest resources enticed villagers to team up with a timber trader because they were not able to derive benefits from the forest otherwise. Local officials colluded in the illegal practice for personal gains. Villagers benefitted from the arrangement benefit but ended up gaining the least among all involved actors. This provided little incentive for villagers to manage the forest in a sustainable manner.

Experience from Phuc Minh shows that villagers will take on a constructive role for sustainable forest management if they are given full tenure rights–in this case including the right to harvest timber from the forest. Secure tenure rights and guaranteed timber harvests resulted in a strong incentives for community members to work together with local forest protection officers to protect the forest and prevented the emergence of the coalition driving illegal logging in Ban Y.

These insights reveal that law enforcement alone will not solve the problem of small-scale illegal logging in Vietnam. In the worst case, further criminalization of logging would provide added impetus to illegal activities by empowering corrupt local officials, increasing the profits made by traders and wholesalers, and diminishing the benefits accruing to villagers.

The centrality of tenure rights calls for renewed emphasis on forestland allocation to local communities and forest reclassification from protection to productive purposes. The significance of tenure right also questions the continuing use of short-term contracts in forest protection and management because they do not involve the transfer of tenure rights.

Implications for FLEGT and REDD+

The insights presented above have direct implications for Vietnam’s Forest Law Enforcement, Governance and Trade (FLEGT) and Reduced Emission from Deforestation and Forest Degradation (REDD+) initiatives. Objectives and measures to combat illegal logging figure prominent in both. The Voluntary Partnership Agreement (VPA) to be signed with the European Commission (EC) in the future accords high significance to actions stopping illegal logging. Similarly, Vietnam’s proposal for the second phase of the UN-REDD Programme foresees allocation of significant funds for measures against illegal logging.

Currently, the emerging EC – Vietnam FLEGT VPA is supposed to cover both imported and domestically produced wood materials. Domestic illegal logging will only be curtailed if Vietnamese policies promote governance that accommodates small-scale forest use and management, and allows local communities to benefit from the forest. Additional, specific implications for FLEGT are:

  • The emphasis in Vietnam’s FLEGT needs to be more on the G than the E, i.e. emphasize governance reforms over simple forest law enforcement.
  • The legality definition under FLEGT will only serve legal forest governance if it makes suitable adjustments to Vietnam’s current legal framework, including rights to villagers’ right to timber from natural forests currently managed by State entities.
  • The development of Vietnam’s FLEGT VPA requires broad-based consultations with all kinds of stakeholders at national and local levels.

Similarly, REDD+ will achieve reductions in deforestation and forest degradation only if REDD+ actions accord small-scale forest management a constructive role. Specific implications include the following:

  • Full-scale implementation of REDD+ requires the expansion of forestland allocation to local communities in order to provide positive incentives for villagers’ participation through real benefits derived from the forest.
  • The design of REDD+ needs to combine performance-based payments for protection of forests with their active use and management by smallholders because REDD+ payments alone are unlikely to provide sufficient incentives for protection.
  • REDD+ requires a reorientation of law enforcement from obstructing to supporting small-scale management.

Key Messages

  • Villagers’ lack of clear and secure tenure rights is a key driver of small-scale illegal logging
  • Sole reliance on law enforcement is likely to aggravate small-scale illegal logging because it provides local officials more opportunities for bribery
  • FLEGT will reduce illegal logging only if forest governance accommodates small-scale forest management
  • REDD+ will increase forest carbon stocks only if law enforcement supports small-scale forest management instead of obstructing it
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