This Earth Day, Let’s Focus On Results Instead Of Rhetoric

 

This article was originally published on the Huffington Post blog. Click here to read.

 

22 April 2014 | He was not hard to spot. In the shadow of Oxford Castle, under the dome of the Bodleian Library, or from the tower of St. Mary’s Church, the vivid feather headdress was impossible to miss, as was the face of the man who wore it, Chief Tashka Yawanawa, in Oxford, England, earlier this month for the Skoll World Forum on Social Entrepreneurship. Here, where the history of the place is somehow strangely still alive, his headdress stood for a different kind of history. Not one of bards and decades upon decades of scholarly thought and soaring architecture, but an even older history – of forests and the people who make the trees and the land their home.

Tashka made the long journey from his village in the northwest corner of Brazil to join more than 1,000 social entrepreneurs at the conference. There, Malala Yousafzai, the Pakistani girl shot in the face by the Taliban for speaking out about girls’ education, told a packed auditorium of her compulsion to speak for those who could not speak for themselves. Experts spoke on impact measurement, sustainable development, and “cross-sector peace-building.”

And in a centuries-old pub, over ale and steak pie, Chief Tashka spoke of the 800 members of his people, the feathers of his headdress brushing against the low stone ceilings of the place. The Yawanawa, like other indigenous people, are struggling to keep their way of life and traditions alive in the face of serious threats, such as illegal logging and mining. They are fighting for the rainforests, often described as the “lungs of the planet.”

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Chief Tashka Yawanawa: Bridging Economy and Ecology

 

Tashka spoke of his people’s “Plan de Vida,” or Life Plan, a document that maps out their growth overthe next 50 years, identifying strategies for key areas, including health, education, and security. It is a dynamic map for the future, deeply informed by traditional knowledge and values. The Plan de Vida is an invaluable instrument, vital to the Yawanawa’s work as stewards of the forest. Tashka spoke of how the values embedded in the Plan were vulnerable to the pressures of those from the outside, who would, in their short-sightedness, strip the land of its very being.

And as improbable as it might seem, that vulnerability is what brought Tashka to the Skoll conference and the social entrepreneurs who for five days swarmed the cobblestones of Oxford – to see if somehow he and other indigenous leaders could work with modern markets to save the world’s forests.

Throughout the week, conference participants parsed economic markets in the context of social entrepreneurship in lecture halls and seminar rooms, discussing hybrid business models, “Profit With Purpose,” smallholder productivity. How does the Yawanawa Plan de Vida, then, fit in with such ideas, with emerging markets? In the evolving realities of indigenous people in a world of fast change, how are they absorbing the changes and continuing to lead?

How can a remote, isolated, tiny group of forest stewards embrace today’s technology and the business models of modern markets – and more importantly, how can emerging financial instruments (like the forest-carbon financing mechanism REDD) embrace the values and structure of a Plan de Vida?

The answer to these questions may contain the kind of conservation success story that can seem elusive at times. It is in the intersection of these two elements – the old and the new – that solutions on climate change are emerging. One such effort is a new and unique initiative that will empower forest-dependent communities to engage equitably and productively with new sources of finance, including REDD+ and other compatible initiatives. In shorthand, it is called AIME – which stands for Accelerating Inclusion and Mitigating Emissions, and it is a partnership of environmental and indigenous organizations that we at Forest Trends have been leading , thanks to the generous support of the United States Agency for International Development (USAID).

It’s useful to identify the “sweet spot” that exists when technology and the modern world meets the forest. The Yawanawa are using Android phones to collect and transmit valuable data about the forest to the government and others, sophisticated mapping systems of their lands, and the Internet to communicate far beyond the borders of their territories. The modern marketplace, in turn, is being led by traditional cultures to think more broadly into the future, realizing that entrusting the asset that is the rainforest to indigenous people is the smartest move they can make.

On Earth Day this year, let us focus on this sweet spot. As the social entrepreneurs think big, as the economists crunch numbers, and as the scientists cast gloomy eyes on the burgeoning climate crisis, let us embrace the values that have sustained indigenous people for so long – a capacity for evolving and adapting with a deep respect for the traditions of the past. As Chief Tashka’s headdress symbolizes the millennial tradition of protecting one of Earth’s most valuable resources, we can be optimistic that with the right strategies, we can solve some of the most pressing climate change and broader environmental issues of our time. As Tashka said, “Each one of us has a responsibility to care for Mother Earth.”

Uniting People And Ecosystem Resilience For Food Security In Latin America on Earth Day

This week’s Katoomba Meeting in Lima aims to complement year-end climate talks there by focusing on how climate policy fits into the larger “landscape approach” that incorporates people, farming, forests, and water. EcoAgriculture Partners looked at more than 100 initiatives in Latin America to find out what works and what doesn’t, with surprising results.

22 April 2014 | Our global food systems pursue economic efficiency in production   at the cost of environmental resilience, but our production landscapes rely on highly-interconnected ecosystems, and the local communities and other users who manage those resources need a wide range of products and ecosystem services. Focusing on only one objective from the land ignores this reality, and has been a problem even for ecosystem service markets that developed to incorporate the value of nature back into our economy; these often still pay separately for water, carbon, and habitat stewardship rather than for ecosystem functioning overall.

But the days of narrowly defining sectoral objectives for land and resource management will soon be gone, replaced by an “integrated landscape approach” that recognizes both the holistic nature of living ecosystems and the reality of rural economies. Latin America is leading this transition, including Peru, where this week’s Katoomba Meeting is taking place.

Over the past 2 ½ years, EcoAgriculture examined more than 100 integrated landscape initiatives (ILI’s) across the continent, together with our partners CATIE, Bioversity International, Conservation International and the University of Idaho. We found a surprising degree of community engagement and collaboration among stakeholders from agriculture, health, biodiversity, water to protect and restore their landscapes from threats of degradation and climate change.

Examples

One example can be found in eastern Bolivia, where the Chiquitano Model Forest is attempting to conserve the largest remaining area of dry tropical forest in the rain shadow of the Andes while improving livelihoods – many of which are dependent on the large and expanding livestock sector.

Another example can be found in rainy and humid El Salvador. Here, the Ministry of Environment and Natural Resources has initiated the National Program for Ecosystem and Landscape Restoration (PREP), which aims to restore a staggering 50% of the country’s land, degraded by deforestation, intensive agriculture and extreme weather events.

Though different in their approaches, both are integrated landscape initiatives that recognize an urgent reality: agricultural lands must be managed in ways that also protect biodiversity and healthy watersheds; natural habitats must be managed to sustain water sources for irrigation and crop pollinators; communities need diverse landscapes to fulfill their various needs. This is the essence of the new “landscape approach”.

While most policy, finance, education and planning institutions remain structured and separated by sector, local demand for multi-functional landscapes has motivated widespread innovation. Nowhere is more advanced than in Latin America.

Integrated Landscape Management in Latin America

In 2011, we helped launch the Landscapes for People, Food and Nature Initiative (LPFN), which is a collaborative partnership of leading environmental and agricultural NGOs, research centers, UN agencies, and governments. At the time, integrated landscape management was poorly documented, with little empirical evidence of where, why and how such approaches were being implemented. To fill this gap, we began to assess the experiences of Integrated Landscape Initiatives through a series of continental reviews around the world.

The review of Latin America and the Caribbean (LAC) included a survey of 104 ILIs seeking to improve outcomes for food production, ecosystem conservation, and rural livelihoods by harmonizing activities across multiple sectors and stakeholders at a landscape scale. The survey was followed by a series of interviews in 23 of the surveyed landscapes. Despite the relatively long history of integrated management in LAC, this was the first comprehensive study of the contexts, motivations, design, participation and outcomes of ILIs in the region.

A Working Definition of ‘Integrated Landscape Management’

The LPFN identified five common components of integrated landscape management: (1) shared or agreed management for multiple objectives; (2) field practices that provide multiple benefits; 3) ecological, social, and economic interactions   managed to reduce negative trade-offs and optimize synergies; 4) collaborative, community-engaged processes for dialogue, planning, negotiating and monitoring decisions are in place; and 5) markets and public policies are being shaped to achieve the diverse set of landscape objectives and institutional requirements.

The Chiquitano Model Forest

To see the components in action, we return to the Chiquitano Model Forest in Bolivia. The Model Forest has served as a platform for a diverse set of stakeholders to collaborate and generate new ideas for maintaining forest connectivity while tapping into new markets for non-timber forest products, organic coffee and sesame, and sustainable range management.

With fourteen participating municipalities, finding an approach to governance that would work for the Model Forest has been a challenge. Engaging large agricultural producers has been an ongoing problem, and they are still absent from most of the Model Forest’s discussions and activities. In contrast, many local governments have been very supportive in engaging their municipalities in activities to reduce tradeoffs between land uses at smaller scales.

Hermes Justiniano remarks, “It’s not easy…the municipalities have a lot of optimism, strength and dedication, but other actors not as much.”

Together the municipalities coordinate within a mancomunidad to address challenges across the entire territory. The leaders of Chiquitano Model Forest agree that a landscape approach is challenging.

“[Chiquitano] still does not have a fully-developed model for active and participatory governance,” says Hermes, but it has helped stakeholders in the region establish a common, long-term vision and plan for their landscape.

Piloting in El Salvador

Another case is one of El Salvador’s PREP pilot landscapes. The landscape includes the municipality of Cinquera, where several local organizations along with the municipal government have developed a wide range of programs to engage the local communities across the landscape in creating a forest reserve, promoting agroecological farming practices, strengthening opportunities for cultural and eco-tourism, and establishing public spaces and art to commemorate the area’s history.

Pedro Ramon Fuentes, of Cinquera’s Municipal Reconstruction and Development Association, and Pablo Alvarenga, a local historian and farmer, are among the community leaders at the forefront of these efforts, bringing Cinquera’s rich history of collaboration on reconstruction to bear on new efforts to restore El Salvador’s landscapes.

“Because of these locally initiated processes,” says Herman Rosa, El Salvador’s former Minister or Environment, “we have healthier soils, and healthier soils have the potential to absorb more carbon, but even more importantly, healthy soils produce better crops, more food, and strengthen food security.”

Cooperation occurs at the local level between farmers and organizations and at the landscape level between municipalities and upstream-downstream water users, but Rosa recognizes that more is needed. “If we want to reduce the impacts of climate change,” says Rosa, “we must strengthen local efforts to restore degraded landscapes. But we cannot stop there. It has to be taken to the national level.”

Building on Experience to Mainstream ILM

We found in our study that Latin America has been a center of innovation for ILM. Nearly all initiatives are taking place in mosaic landscapes characterized by multiple land uses including forestry, agriculture, grassland and urban areas. Many of these landscapes in the past were engaged in single-sector conservation or agricultural development projects. Over time, they developed into more integrated programs, as the diverse objectives of stakeholder groups in the landscapes were recognized as critical for reducing tradeoffs. Underlying this transition has been advances in thinking, policy and action from Latin American organizations and institutions, many of which are partners of the Landscapes for People, Food and Nature Initiative.

For example, the Ibero-American Model Forest Network has helped lead the integration of landscape approaches with territorial development as a framework for policy and investment. CATIE has worked to usher landscape approaches into the REDD strategies, establish biological corridors through densely populated agricultural areas, and evaluate diverse experiences with payments for ecosystem services to farmers and farming communities. IICA and PRISMA are extending integrated watershed management to meet broader stakeholder objectives, and mobilizing initiatives on climate-smart territories/landscapes. EcoLogic Development Fund is helping pioneer new approaches to link smallholder sustainable supply chains with landscape management, and Ecadert is working closely with partners to build institutional capacity for territorial and landscape management. Changes in governance at the local and national levels have allowed the rise of indigenous territorial rights to enable ILM.

Motivations and Challenges

To help landscape approaches get to scale in Latin America, it is critical to understand their motivations and challenges. Respondents in our study identified, on average, six factors as “very important” for motivating the formation of their initiatives. Natural resource conservation and improving human livelihoods were most frequently reported by respondents overall. Seventy-five percent of ILIs invested in activities across all four key domains of landscape functionality covered by the survey: agriculture, ecosystem conservation, livelihoods, and supporting institutions. Those initiatives with multiple objectives and greater numbers of participating stakeholder groups reported a greater number of outcomes, suggesting that a multi-objective, multi-stakeholder approaches can and do achieve a broader range of outcomes than less integrated approaches. Dubí¡n Antonio Garcí­a, who works with ASOCORREDOR in the Serraní­a de los Paraguas-Tatamí¡ Corredor, remarked, ¨because we are working across all of the dimensions of the landscape (environmental, cultural, social), we are able to take on and solve problems with an integrated approach.

Many landscape leaders we interviewed note their efforts are undermined by limited funding opportunities and unsupportive policies in their landscapes. For example, several ILIs from Brazil are struggling to achieve integrate management in the face of uncertainty regarding the implementation of Brazil ´s Forest Code. In Bolivia, forest laws and agrarian reform policies present conflicting incentives for stakeholders within the Chiquitano Model Forest.

The interviews also illuminated the contexts in which ILIs are taking place, providing more details on primary livelihood opportunities, tenure arrangements, agricultural markets and important changes to the landscape and its residents over the past 25 years. Across Meso-America, severe weather events and the impacts of climate change have had lasting impacts. In other parts of Latin America, enormous political changes accompanied by policies to   intensify agriculture and extraction of natural resources have been followed by agrarian reform, impacting land pressures, livelihoods and social organization in the landscapes where these ILIs work.

These findings provide a starting point for offering empirically-rooted guidance for governments, civil society organization and donors to support and promote the development of integrated landscape approaches.

An Integrated Landscape Target

The time is ripe for more systematic efforts to support integrated landscape initiatives and mainstream ILM across Latin America and around the world. The post-2015 sustainable development agenda should reflect what we have learned about successful landscape management, and the possibilities and challenges of integrated approaches. More research from LPFN partners as part of our Global Review provide further guidance for how investment, policy, agribusiness, agricultural research and others can benefit from embracing this approach. Findings, illustrated with case experience from Latin America and elsewhere, offers concrete lessons on topics such as how to engage business in multi-stakeholder initiatives, how to finance integrated landscape investments, designing market mechanisms that provide financial incentives for ILI’s, landscape governance and policy frameworks, designing climate-smart landscapes, and managing agrobiodiversity at landscape scale.

We know what must be done, and have seen it working throughout Latin America. It is now critical to press for the resources and the will to make it happen at a global scale. That’s why the Landscapes for People Food and Nature Initiative has issued a position statement urging the Open Working Group on the Sustainable Development Goals to consider an integrated landscape target as one of a dashboard of targets to support better integration of the Goals. The position statement is available online here and open for public signature. Please consider signing it today. This new cross-sectoral thinking and action will support and catalyze efforts in Latin America and globally.

 

Sara J Scherr is President and CEO, EcoAgriculture Partners. She is an agricultural and natural resource economist specializing in land and forest management policy in tropical developing countries, and she can be reached at [email protected]

Abby Hart is an Extension Support Specialist with Ecoagriculture Working Group in the Department of Natural Resources at Cornell University.. She can be reached at [email protected]

Peruvian Ecosystem Services Law In Limbo On Eve Of Earth Day Katoomba Meeting In Lima

NOTE: This article was adapted into English from Ecosystem Marketplace’s Spanish language sister site, Valorando Naturaleza. Click here to view the original in Spanish.

 

18 April 2014 | It’s not easy for any country to protect its natural areas from exploitation, but Peru is making a solid attempt to preserve its forests, which store massive amounts of carbon and provide habitat to thousands of rare and endangered species – delivering in the process benefits that accrue to the world at large and not only to Peru.

The country’s legislators have drafted one of the most comprehensive pieces of legislation for governing Payments for Ecosystem Services (PES), but the Ley de Mecanismos de Retribucií³n por Servicios Ecosistémicos has been perpetually on the brink of passing since it was introduced in 2008. It emerged around the same time as the Brazilian state of Acre’s System of Incentives for Environmental Services (Sistema de Incentivo a Serviços Ambientais, or “SISA”), and like that ground-breaking initiative, the Peruvian law would create a legal framework for conservation efforts that harness private capital.

In December, a key congressional commission gave the bill a thumbs-up; in February, the Ministry of Environment (Ministerio del Ambiente, or “MINAM”) launched a consultation initiative with indigenous people; and last week, the bill was slated to be formally debated for the first time before the entire National Congress.

That debate, however, never took place, and now the bill is back on ice – a development that will feature prominently at the 20th Katoomba Meeting, which runs from April 22 through 25 in Lima.

The Laws of Limbo

In Peru’s unicameral system, a bill must first emerge from a commission before being introduced to the congress at large. The PES Bill passed that hurdle in December, when it was approved by the Committee of the Environment and Ecology. It was supposed to have its long-awaited debut before Congress on April 10, but then it got pushed back to April 15, when it was again left in the lurch. Now it isn’t clear if the bill will head back to the Environment Commission or again be presented to the entire Congress.

Those close to the process are speculating as to why the bill didn’t progress. It’s possible legislators outside of the Environment Committee disagreed with the bill. It’s also possible the last congressional meeting was simply packed with other proposals and they didn’t have time to discuss the PES bill.

How it Works

The bill provides a legal framework to support a diverse range of ecosystem services – including greenhouse gas emissions reductions, biodiversity conservation and the preservation of natural beauty. Investments in watershed services (IWS), an already popular water management method in the country, have also been incorporated into the proposal.

There are two parties involved in the PES process that the bill lays out. The first are land stewards – farmers, indigenous peoples, landowners and individuals involved in ecotourism, who act as the receivers of ecosystem services. The other group – mostly civil society, businesses and municipalities – are the payers. They compensate the land stewards to practice sustainable land-use. These sustainable practices ensure businesses and cities will have the ecosystem services, like clean water and air, that they need to survive and thrive.

The government will be responsible for identifying the payers and also for administering the compensation process.

Monitoring for compliance and effectiveness will vary by program. For REDD (reducing emissions from deforestation and forest degradation), which is already well-developed internationally, the law incorporates existing certification procedures and standards.

Congressman Nestor Valqui Matos was one of the leading legislators on this bill, guiding it through the Commission. He tells Ecosystem Marketplace that some key details still need to be ironed out, and he singled out the law’s lack of provisions on preexisting conditions. This, he says, introduces an element of uncertainty that could come back to haunt them if not dealt with now.   Conditions like determining the legal rights to the area where the project will take place and who stands to benefit should be decided on at the start.

Jose Luis Capella agrees. He is Director of the Forestry Program in the Peruvian Society of Environmental Law (SPDA), and says all of these issues should be worked out in the design phase.

The Changing Role of Government

Peru’s Payments for Ecosystem Services (PES) programs are still voluntary agreements between parties, which means the government’s role is limited. It boils down to ecosystem services management and providing regulatory certainty for contracts.

“It’s a voluntary agreement between private parties with a private contract but the state often owns the natural resources at the center of the contract,” says Capella.

Therefore, PES programs require state involvement as well as participation from the private sector in order to operate – but that degree of involvement is still a matter of debate.   Institutions have argued in certain locations – near remote communities, for instance – more government intervention is needed in order to provide transparency and keep information flowing to the locals. Otherwise, locals may feel their rights are being violated by outside organizations.

But Capella says the focus right now shouldn’t be on government monitoring but on simply creating more programs.

Protection for Indigenous People

Matos says prior consultation is only proposed where the project has the potential to directly impact collective rights of indigenous peoples.

“It’s important that all actors involved in a PES project benefit,” says Capella. “This law will help achieve that by keeping everyone properly informed and creating opportunities for those closest to the forest.”

The bill also faces implementation challenges on a regional level, because regional governments must be able to involve a consortium of individuals including forest users and indigenous groups but also NGOs and federal government agencies like the Ministry of Environment and Agriculture and Irrigation. Companies involved in water management, as well, will often need to be involved in developing a program.

Implications of a PES Law

Examples of PES and IWS in Peru are plentiful. One such example is the program implemented in the Rumiyacu-Mishquiyacu micro-watersheds, located among the jungles of Peru’s San Martin region. The area was degraded and the plan was to compensate using non-monetary benefits like tools to support sustainable production and technical advice. In return, participants in the project agreed to switch from their old ways of managing the land, which resulted in harmful environmental impacts, to a sustainable land management style that enhanced the ecosystem services.

People affected by the harmful land activities-mostly those living in the city of Moyobamba in Moyobamba province, agreed to finance the sustainable activities. This voluntary payment was made through their monthly water bill.

And there will continue to be movement in this space on different levels as the legislation works its way through Congress. The The Watershed Services Incubator, a collaborative initiative between environmental non-profit Forest Trends (publisher of Ecosystem Marketplace) and MINAM, among other institutions, is one active project. The incubator acts as a capacity-building platform for developing water projects based on PES.

Ultimately, Peru’s proposal aims to coordinate all of these activities by providing a simplified framework for PES to increase the mechanism’s use. It’s based on a simple idea that isn’t particularly innovative: those who help maintain and improve ecosystem services establish an agreement with those who are voluntarily willing to compensate for those services.

Elisa Arca is a journalist living in Lima, Peru. She writes for cambia.pe and can be reached at [email protected].
Additional resources

Biodiversity Boom Bolsters Peruvian Forests (And REDD) Ahead Of Year-End Climate Talks There

By saving their Manu National Park, Peruvians have engineered a biodiversity boom – just as more research shows that undisrupted and biodiversity-rich ecosystems recover more rapidly from disturbances brought on by climate change. Lauren Cooper of Nature Services Peru says this should put REDD front-and-center at year-end climate talks there.

15 April 2014 | A new survey, by UC Berkeley, SIU-Carbondale, and Illinois Wesleyan University is bringing some much-needed positivity in global biodiversity news. Despite species and biodiversity figures dropping all over the world, Manu National Park of southern Peru has surpassed its own record for species biodiversity. The park continues to hold title as the richest biodiversity hotspot in the world for reptiles and amphibians.

Located in the Department of Madre de Dios in southern Peru, Manu Park is already a world-renowned attraction for “eco-tourists” – specifically bird watchers, scientists, and conservationists. The World Heritage List in 1987.

The nearly 1.5 million protected hectares hosts a variety of ecosystems, including lowland moist Amazonian rain forest, high-altitude cloud forest, and Andean grasslands. Located east of the city of Cuzco, down the steep slope of the Andean mountains, the park has remained largely untouched by modern development and is symbolic of pristine wilderness.

The new survey finds more than 1,000 species of birds (accounting for roughly 10 percent of global bird species), more than 1,200 species of butterflies, more than 200 mammals, and now 287 reptiles and amphibians.

What are the larger implications?

Biodiversity contributes to ecosystem services such as water circulation, air filtration, micro- and macroclimate stabilization, as well as useful products for humans such as wood, clean water, and medicines. For communities living in and around the forests, this also means basic livelihood needs such as food, spirituality, and materials for building and clothing. The complex relationships between plant, animal, insect, fungi, and amphibian species is what keeps ecosystems functioning.

Science and media have been buzzing around the idea of extinction loss –that it’s happening, its unprecedented in our era (in the last major extinction the Earth lost 90% of biodiversity and the dinosaurs), and it has meaningful impacts for humans. Today we are facing a global biodiversity crisis that is only now becoming understood.

A new book by Elizabeth Kolbert, The Sixth Extinction: An Unnatural History, is getting a good deal of attention. Kolbert suggests that 20 to 50 percent of all living species on earth could disappear within this century. As perhaps the most direct threat to life on Earth, this can be confusing with all of the attention climate change is receiving. It is important to know that these issues are not separate, but are instead highly interrelated. How biodiversity loss will interact with a changing climate is perhaps the most daunting prospect humans have ever faced.

How has this happened? From habitat destruction to water pollution, transporting invasive species to pesticide use, natural resource extraction to human-induced climate change, we are now impacting nearly every corner of the Earth. Scientists have determined that habitats are being so rapidly destroyed and altered that extinction is occurring at a much faster rate than species can evolve.

A Connection to Climate Change?

Climate change is aggravating the issue of biodiversity loss. Beyond the physical destruction of ecosystems to build roads and communities (to accommodate our exploding population), climate change brings highly uncertain impacts and consequences to conservation and biodiversity.

Climate change can lead to movements of species in “unpredictable or aggressive ways” while pests and non-local species create additional challenges for the resilience capacity to resist invasion. For example, this ecosystem resilience can be overcome if forest fires occur too frequently or over large areas.

However, research has found that undisrupted and biodiversity-rich ecosystems recover more rapidly from disturbances such as logging, storms, species shifting, or fire. Therefore, simply by maintaining forest health and biodiversity, such as in the Manu National Park, forests are more capable and well-adapted to coping with any disturbances. These findings have important and reassuring implications for conservation and landscape management, indicating that long-term protection and conservation provides unrivaled benefits to biodiversity and connectivity. This is especially important when looking at the current rate of biodiversity loss; once these species are gone, we won’t get them back.

Linking it all Together: COP20 in Lima, Peru

Coincidentally, the 2014 Conference of the Parties (COP) of the United Nations Framework for Climate Change Convention (UNFCCC) is in Lima, Peru. It’s also the meeting spot for the second Katoomba meeting, which fittingly kicks off on April 22-Earth Day.

The COP is an annual international meeting that brings together national level negotiators to find solutions for climate change. The COP includes mitigation of emissions (reducing CO2 from fossil fuel burning and destroying natural sinks such as forests) and adaptation (adjusting to climate change impacts happening today and in the future). Although the COP has been criticized as a slow and bulky response, it’s the formal communications plan currently in place and remains an important platform to discuss these issues and work toward solutions.

While marking the 20th COP is symbolic in its own right, additional pressure to fulfill targets set in the Durban Platform for Enhanced Action will dominate this meeting. This platform, created in South Africa in 2012, agrees to commit to a new international agreement with legal force to reduce greenhouse gas emissions by 2015. The plan will become operational by 2020. This is an immense task itself, and leaders in Lima are preparing to reach this target.

While the 20th COP is certainly crucial in light of accelerating global climate change, it is also an opportunity for issues of forests, ecosystem services, and biodiversity to move more fully into the negotiations. As a major tropical forest country, Peru leadership should be strong and consistent in the stance that forest-rich countries must be provided with substantial incentives, functioning mechanisms, and institutional support to implement biological conservation and Reducing Emissions from Deforestation and Degradation (REDD+).

Tapping into REDD

Last year’s COP in Warsaw, Poland made some progress in orchestrating funding, transparency, and monitoring for the REDD+ mechanism. Though it still has some way to go, continued support is providing REDD+ projects, existing and developing, the confidence to progress. However, specifics on safeguards, further funding, and the possibility of a compliance market remain murky. The parties are still searching for effective ways to implement conservation and REDD+ while maintaining the highest standards of respect for people that live and depend on forests.

Forest carbon has been included for a number of years in various carbon valuing approaches and markets. Payments for ecosystem services (PES) including biodiversity are emerging as well. The last decade has shown success in developing effective market components for carbon credits and REDD+, validation, transparency, and establishing appropriate safeguards. While we still have much to learn, and REDD must continue to stay flexible and open to learning best practices, the sheer volume of high quality projects demand that this mechanism begin to function boldly to both reduce emissions and protect biodiversity.

Efforts to value ecosystems (including carbon, services, and biodiversity) have an essential role in balancing the global needs of carbon mitigation and biodiversity conservation. A central tenet of the negotiations is creating new mechanisms to value goods such as carbon and ecosystem services that fall outside of the traditional economic model. It will be important to support current and emerging projects while local, regional, and national governments launch ecosystem valuing programming and regulations. Achieving further consensus and funding for REDD+ in COP 20 can move towards both climate and biodiversity goals.

Global Engagement

In the face of climate change and biodiversity loss we are required to come together as a global community in ways never needed before. We must learn from the mistakes made in the industrialized world, not just helping developing countries to leap-frog dirty technologies, but also in creating solutions to reduce deforestation and protect biodiversity.

Lauren Cooper is a Project Coordinator with Nature Services Períº, a Peruvian company focused on sustainable ecosystem management. She can be reached at [email protected].
Additional resources

Brazil Sees Promise, But Need For New Funding Source For REDD


8 April 2014 | Brazilian company Natura caused quite a stir in the global carbon markets in 2013 when it engaged in a first-of-its-kind deal to purchase 120,000 tons of carbon offsets from a project developed by the Paiter-Suruí­ indigenous community in the Amazon under the Verified Carbon Standard’s Reduced Emissions from Deforestation and forest Degradation (REDD) methodology.

In 2007, the cosmetics giant launched its corporate carbon neutral program, which now supports 15 carbon offset projects in Brazil and one in Colombia, Mariama Vendramini told attendees of the Navigating the American Carbon World conference in San Francisco. Vendramini is the commercial and financial director for Biofilica, which provides environmental services and develops REDD offsets for Brazilian companies. She estimated the total number of offsets voluntarily purchased by the company at 1.5 million tonnes of carbon dioxide equivalent (MtCO2e).

It turns out that Natura is not alone in terms of Brazilian companies looking to voluntarily offset their greenhouse gas (GHG) emissions. In October 2013, Ticket Car launched a pilot program to allow its clients to manage and offset their vehicle emissions at about 1,500 tonnes of carbon dioxide equivalent (tCO2e) per year. Brazilian banking giant Santander also launched a pilot project to allow its clients who purchased cars to offset their emissions, with the pilot project leading to demand of about 70, 000 tCO2e in six months.

Click here to continue reading this story on the Forest Carbon Portal.

Buying Hope And Time For Coral Reef

Between now and August, we’ll be examining the economic benefits of coral reefs and financing mechanisms designed to help preserve them. Here’s a look at the other side of that equation: what it costs to maintain them, and the challenge of meeting that cost through conventional means.

9 April 2014 | “The need was evident because I was diving all the time, going out to the same spots – and you get there, and the coral had died,” explains Ken Nedimyer, the former fisherman who initiated coral nursery-based restoration in the Florida Keys. Coral reefs, which provide habitat for over twenty-five percent of marine species, are dying worldwide, especially in tropical waters, from combined climate change, ocean acidification, overfishing, disease, and pollution stresses. In 2001, Nedimyer began to gather staghorn coral (Acropora cervicornis ) and elkhorn coral (Acropora palmater) from degraded reefs for his ad-hoc nursery in Tavernier Key. By 2003, his nursery coral looked strong, and Nedimyer began planting the coral within the nearby reef areas.

In 2004, Nedimyer began collaborating with the Florida Keys branch of The Nature Conservancy (TNC), and that same year, the Florida office of the Restoration Center of the National Oceanic and Atmospheric Administration (NOAA) offered Nedimyer and TNC their first joint grant, a $35,000 Community-based Restoration Grant for coral nursery and restoration work. “We were looking for grass roots groups that were really just trying to get started, get new ideas off the ground,” explains NOAA marine biologist Tom Moore, who runs the NOAA Restoration Center’s southeast Atlantic coral restoration work. “(T)hat is exactly what Ken was doing. They had an idea, it was a new idea, [and] it didn’t have a lot of big money behind it.”

In 2006, staghorn coral and elkhorn coral were listed as threatened species under the federal Endangered Species Act, and NOAA became even more interested in Nedimyer’s and TNC’s work, according to Moore. That year, the NOAA Restoration Center offered a $45,000 Community-based Habitat Restoration Grant to Nedimyer, TNC, and their new collaborators, the University of Miami, the Mote Marine Laboratory, and Nova Southeastern University. The total project costs for 2004 (which ran into 2005) and 2006 efforts were $88,000 and $105,000, respectively, according to Caitlin Lustic, TNC’s Coral Reef Restoration coordinator.

In 2007, Nedimyer reorganized his small, part-time group into the non-profit Coral Restoration Foundation (CRF). Because the grant money, the coral nursery, and the restoration effort were all relatively modest, Nedimyer continued working his fisherman day job.

This changed during the recession in 2009, when the American Recovery and Relief Act (ARRA), better known as “the stimulus,” funded NOAA’s Restoration Center with 168 million dollars for employment-generating restoration projects. Under the Stimulus, NOAA gave Nedimyer, TNC, and their partners a 3.3 million dollar grant to work on coral reef restoration for a three year period. With stimulus funding, Nedimyer dedicated himself full time to coral restoration. “It allowed us to really ramp up the program and take it to a whole new level,” says Nedimyer, whose own nurseries grew from approximately 5,000 to 30,000 coral during the three-year period.

Getting a NOAA stimulus grant was competitive and entailed a multi-level application review with separate panels of data and restoration policy experts. However, NOAA encouraged the TNC/CRF-led group , which now consisted of TNC, CRF, the University of Miami, Nova Southeastern University, Mote Marine Lab, and the Florida Fish and Wildlife Commission, all in Florida, to apply. (Penn State would also help out during the grant period providing genetic analysis of coral.) Creating jobs was key, says Moore, and he points out that “coral restoration was actually one of the most efficient ways to create jobs because we did not have lots of equipment expenditures… and it is relatively low tech. It is really people in the water doing work. And so that got a lot of traction.” Moore also credits the different coral restoration groups’ forging a strong partnership. “It allowed them to tell one cohesive story and ultimately get funded,” Moore says.

Once underway, the grant created thirty-five new jobs among the collaborating groups, with TNC coordinating the program, distributing NOAA-stimulus funds, and directly reporting to NOAA. The partners divided up the $3.3 million dollar grant, with TNC getting extra for administration, and Nedimyer getting the second largest portion of the grant. The partners focused on restoration in the Ft. Lauderdale, Miami, Upper, Middle and Lower Keys, and Dry Tortugas. Work in the United States Virgin Island St. Croix and St. Thomas parks were included as well.

The partners each set up a staghorn coral nursery and prioritized coral genetic diversity for hearty, disease resistant strains. Each group made plans to transplant approximately 1,200 coral during the last months of the grant period.

All participated in restoration. With CRF, for example, participants replanted sets of 400 coral at Conch Reef, Pickles Reef, Molasses Reef and Key Largo Dry Rocks, all in the Keys. The group produced new understandings of coral genetics with assessments published, and achieved high genetic diversity for staghorn coral. CRF now has over 100 genetic strains of staghorn at the CRF Tavernier nursery alone.

Lustic organized monthly meetings in which the different groups shared data and experiences. Nedimyer offered his own coral nursery experience, which proved critical. In 2010 a cold front swept through the Keys marine area, killing much coral placed at the bottom of the marine nurseries. Nedimyer’s innovations with coral trees and coral lines that were elevated above the marine bottom in CRF nurseries enabled his nurseries to avoid devastation, and he was able to resupply a few of the partners who lost hundreds of coral during the 2010 cold snap.

Lustic, Nedimyer, and Moore report solid success and coral nurseries still in place. Moore offers a big picture assessment where global stresses, such as climate change, need to be addressed. At the same time, Moore emphasizes the need for ongoing restoration today. Otherwise, he says, when and if those global challenges are addressed, there will be a “Panda bear” situation, “with coral reef in dire, dire straits.”

Moore adds that one major goal of the stimulus grant was to replant enough genetically diverse coral to have successful coral spawning events, which only happens once a year and which were desultory before the grant. He confirms that in 2013 a major spawning occurred in stimulus fund restored areas. “What we were trying to do with this project is to make sure that we outplant corals that are genetically diverse from one another and close enough to each other so that when they do have their one night of sexual reproduction that…those reefs that we have restored…will become seed grounds for other reefs in other areas,” explains Moore. “We set that up in a number of places.”

Lustic also points to scaled-up potential and demonstrable success as the stimulus grant’s legacy. But she is concerned that the partners, who remain a group and maintain nurseries, are underfunded. The group is currently receiving a modest $170,000 two-year NOAA grant divided six ways, which the partners match with their own raised funds and then TNC matches that amount, making it a 1-1-1 match. “We are only funding right now at a smaller level, and the partners are ready to be doing this at a bigger scale,” Lustic says. She also says that there is a possibility of receiving money under the Restore Act, the authority for collecting BP Oil Spill penalties. The funds are distributed to ecology-centered projects in the Gulf States. But that is very uncertain. Meanwhile, TNC does receive some alternative funding with the National Park Service supporting TNC’s Dry Tortugas program.

In a few places, advances continue. Nedimyer’s Coral Reef Foundation now has a $650,000 annual budget, with five full-time employees, and 40,000 coral in its nurseries. In addition to NOAA support, CRF receives significant private interest and support. Nedimyer and his team are also now providing guidance for Bonaire and Colombia on coral reef restoration and hold 15,000 coral in its Caribbean nurseries. Recently, his team formed another United States NGO just for international programs.

However, Nedimyer agrees with Lustic and Moore that the fall in funding makes it near impossible to bring south Atlantic and Caribbean coral reef restoration up to what it could be. “All of those nurseries are still running. All of them have plans to do more…Now NOAA is convinced this can be done on a big scale and that we have worked out all the bumps,” Nedimyer says. “The [grant’s] legacy is ‘look at all we can do now. We have all the tools in place, we have the corals in place, and we have people trained how to do it…’ So we say, ‘look, let’s keep doing this.’ ”

Richard Blaustein is a freelance environmental journalist based in Washington D.C. He can be reached at [email protected].

Donors Delivering On Pledges In Colombia, Ecuador and Peru

 

3 April 2014 | Ecosystem Marketplace’s State of the Forest Carbon Markets 2013 report found that 80% of the world’s REDD (Reduced greenhouse gas Emissions from Deforestation and forest Degradation) credits originated in Latin America during 2012, and that Brazil leads the region in funding commitments to REDD.

Beyond that, however, the funding picture has always been a bit nebulous. Until now

Forest Trends’ REDDX Initiative has been following REDD+ finance in 14 countries – six of them Latin American. It finds that, out of $111,334,638 pledged to those three Latin American countries, $54,052,851 – or nearly half – has been delivered to date.

“It surprised everyone,” says Marta Echavarria of Ecuador’s EcoDecision, an organization specializing in ecosystem services markets.

For the full story, please visit the Forest Carbon Portal.

REDDX Ecuador Chart
REDDX Ecuador Chart
REDDX Ecuador Chart
Additional resources

REDD Bonds For Brazil And The World

REDD finance is one of many pay-for-performance mechanisms designed to jump-start climate-safe agriculture across the developing world, but it’s emerging slowly and uncertainly. REDD+ Bonds, however, can help states and other sub-national jurisdictions harness tomorrow’s funding today. Here’s how.

31 March 2014 | Norway, Germany, the UK and the US drew headlines at December climate talks in Warsaw last year when they unveiled a new financing mechanism designed to help developing countries save endangered rainforests.

Their mechanism kicks in over a period of years, and it works by promoting climate-safe agriculture. Its funding will be contingent on tons of Reduced Emissions from Deforestation and forest Degradation, which technically makes it a “REDD+” initiative. Its sponsors, however, have made it abundantly clear that it’s a development mechanism and not an offsetting mechanism. That means it won’t be able to harvest pools of private funding from companies looking to reduce their carbon footprints.

It is, however, typical of the “payments for performance” that governments seem willing to endorse without reservations, and that makes it something you can take to the banks, meaning borrow against. That’s something you can’t say about offsetting – at least not at the regional level.

Because such payments for performance are more certain than offsetting, they present an opportunity for regions in tropical rainforest countries that have made progress in reducing rates of deforestation to lock in that progress now rather than risk backsliding.

Brazil’s Quandary

Brazil has been leading the way with an ambitious target to reduce deforestation by 80% while still increasing agriculture production. Both the national government and states such as Mato Grosso and Acre have been improving regulation and targeting a portion of public agriculture finance toward more sustainable production practices.

Those efforts led to six years of reduced deforestation until the country relapsed last year – some say because of short-term financial pressures.

The Power of Now

Making the investments necessary to improve agriculture productivity while conserving forests across entire regions and countries is an exciting prospect but will require a great deal of capital today and cannot wait for performance payments after the meticulous readiness phase of REDD+ is complete and actual emissions reductions have been created years down the line.

This is where REDD+ Bonds can come in. In our recent report –“Jurisdictional REDD+ Bonds: Leveraging Private Finance for Forest Protection, Development, and Sustainable Agriculture Supply Chains”, we have been working on a financing structure that might address these themes and help integrate REDD+, the efforts of governments, farmers, indigenous communities, NGOs and commodity buyers and to source funding from the capital markets.

Green Bonds are seen as important in attracting investment from institutional investors like pension funds, for capital-intensive developments such as renewable energy infrastructure. Indeed, there has been growing interest from investors, but generally only if they yield as much as and are no riskier than “plain vanilla” bonds. After all these investors have a legal responsibility to look after the funds they hold on trust for pensioners and others.

However, the hoped for investment in bonds for forest protection has thus far foundered in the absence of credible guarantees and revenue lines. Our proposal is that Jurisdictional REDD+ Bonds would have the yield and risk characteristics that investors are used to seeing in Brazilian or Colombian or other sovereign bonds. (Higher risk countries with a poor credit rating would need additional support from development finance institutions such as the World Bank to provide some protection to investors).

The critical missing piece in the jigsaw, we believe, is to link the emerging trend for donor government ‘payment for performance’ to bond cash flows.

The Finance

In our paper we illustrate how payments of $5 per tonne of carbon dioxide equivalent (the standard metric of the carbon market) over 10-15 years for meeting emission reduction targets versus agreed upon baseline scenarios for Brazilian states, would offset the interest rate that states would have to pay to bondholders; and could thus attract hundreds of millions of dollars in investment.

To secure the best interest rate possible we would suggest that, in a Brazilian context, the bonds be issued under a Federal/State partnership, because individual states do not have the investment-grade credit rating easily to access the international capital markets, and their ability to borrow is restricted by federal law.

This would require the federal government and the relevant state to agree on the correct split of revenues from payments for REDD+ credits, as well as the baseline, monitoring and accounting approaches. Thus state level emission reduction targets would be linked to the national REDD+ strategy.

The proceeds from bond issuance can support, upfront, the local financing mechanisms for sustainable agriculture of the kind that many forest countries are already initiating. Some of the funds could help pay for the direct costs of conservation or support for indigenous communities. And some for investment, lending and risk-reduction mechanisms for improved productivity, infrastructure or processing facilities that would themselves generate financial returns and therefore support a viable long-term funding model.

The fundamental assumption is that access to significant funds at zero or even negative interest rates would support the combined goals of increased agriculture production and reduced deforestation, and allow for countries to guarantee the return of the Bond principal to investors, just as they do for normal bond issues with more onerous market rates of interest.

With REDD+, the international community would monitor and verify reduced emission reductions generated at the ‘jurisdictional’ level. Such a framework could in time provide commodity buyers with an entire region of zero deforestation supply chains. Those states defined as territories with ‘no net forest loss’ would ultimately secure a competitive advantage in accessing markets and therefore a whole further round of investment from commodity buyers.

Relatively small donor funding, predicated on successful REDD+ outcomes, can unleash a lot of private investment – initially from bondholders, but also from local and international agriculture supply chain actors.

Financing instruments like Jurisdictional REDD+ Bonds, with an ambition to operate at scale, can harness international climate finance to support developing countries’ own efforts, then in turn link to global demand for sustainable commodities and therefore support a truly integrated landscape approach that could be transformational in overcoming costs or barriers that stand in the way of reduced deforestation, resilient ecosystems, improved livelihoods, and sustainable agriculture production.

Rupert Edwards is Senior Finance and Carbon Advisor for the Forest Trends Public Private Co-Finance Initiative. He was formerly a Managing Director of Climate Change Capital, where roles included Head of Strategy Development and Head of Portfolio Management, Carbon Finance. He can be reached at [email protected].
Additional resources

Amazon States In Brazil Push For Benefit-Sharing On National REDD+ Strategy

Brazil aims to slash its greenhouse gas emissions 38% by 2020, with more than half of those reductions coming from an 80% reduction in Amazon deforestation. That makes REDD finance more important than ever – and bureaucratic deadlock more damaging. Amazon states say the whole process can be smoothed by splitting revenues and responsibilities 80/20 between the states and Brasilia.

12 March 2014 | Before relapsing in 2013, Brazil had slashed deforestation rates six years running – an achievement that meant 3.5 billion fewer tons of carbon dioxide escaping into the atmosphere than would have happened if they’d continued on their previous pace. That’s roughly 1/3 of the total amount the country has promised to reduce by 2020, but its winning streak ended when deforestation rates surged 28% last year.

The country still, however, says its deforestation rate will be 80% lower in 2020 than its average rate was from 1996 through 2005. In fact, it’s counting on that reduction to deliver more than half of its promised 38% reduction in greenhouse gas emissions. To achieve such a dramatic reduction in deforestation, it plans to harness incentive payments for Reducing Emissions from Deforestation and forest Degradation (REDD).

But while individual Brazilian states have stepped up with concrete strategies for implementing REDD finance, the federal government has been slow to move – prompting the Governors’ Climate and Forests Task Force (GCF) last month to propose a REDD readiness strategy that would divide both revenues and responsibilities between the states and the federal government.

Outlined in a report entitled “Contributions to the National Strategy for Emissions Reduction from Deforestation and Forest Degradation (REDD+): A Proposal for Allocation Between States and the Union”, the proposal was developed by the finance ministries of Acre, Amapí¡, Amazonas, Mato Grosso, Parí¡ and Tocantins with technical support from Brazilian non-governmental organization IDESAM (Institute for the Conservation and Sustainable Development of Amazonas/Instituto de Conservaçí£o e Desenvolvimento Sustentavel do Amazonas).

Bridging the Federal/State Divide

Brazilian states have long advocated for control over direct payments for REDD, and the federal government has long argued for the creation of a central fund to manage any income. The new proposal represents a compromise that would create something called “REDD+ Units” (U-REDD+), 80% of which would be divided among the states and 20% of which would go to the federal government. They said such units would not be administered by the federal government, but by a new agency operating independently of both the states and the federal government.

“It is important to stress that the division of U-REDD+ to the states does not signify a ‘pass-through’ or use right to the state governments,” the report states. “It is understood as a fundamental premise that each state should establish a specific regulation (per example the states of Acre and Mato Grosso) that determines how REDD+ should be managed at the state level and how its potential benefits would be divided among all relevant stakeholders, such as traditional and indigenous populations, rural producers, municipalities, residents of conservation units, etc.”

Acre has created a unique System of Incentives for Environmental Services (SISA), while Mato Grosso created its own REDD+ System last year. The states of Rondí´nia, Amapí¡ and Amazonas are also in the process of developing their regulations through public consultations and needs assessments, among other activities.

The Federal Framework

The federal government has launched several initiatives to prepare for REDD, primarily the National Climate Change Policy (PNMC), the National Plan on Climate Change (NPCC) and the Plan for the Prevention and Control of Deforestation in the Legal Amazon (PP-CDAM). A National REDD+ System (SisREDD+) is ready to launch pending the approval of two legislative decrees, while a National REDD+ Strategy being developed under the Ministry of Environment (MMA) has bogged down in bureaucratic and political inertia.

The NPCC established the 38% emission-reduction target across all sectors, and expects more than half of that target – 55% –to come from halting deforestation. The Ministry of Science, Technology and Innovation, however, anticipates that emissions from energy, agriculture, manufacturing and waste management will increase over the same period – putting more pressure on REDD in particular and efforts to reduce deforestation in general.

Resolving the Reference-Level Jam

The state proposal aims to spread U-REDD+ among all the Amazonian states, based on each state’s reference levels. It is not clear whether U-REDD+ will allow transactions through market-based mechanisms (offsets) or though funds and domestic investments. That will largely depend on how federal legislation regarding the treatment and recognition of offsets evolves.

For a full summary of the methodology of the stock and flux mechanism for allocation of U-REDD+ between states, download the full report.

Additional resources

Palm Oil: From Plantation To Peanut Butter

Palm oil is found in hundreds of products but it’s virtually unheard of by the average consumer despite its production destroying huge swaths of forest in tropical places like Indonesia and Malaysia. But the Union of Concerned Scientists is trying to help change that by promoting awareness as a key step in achieving deforestation-free palm oil development.

This article was originally posted on the Union of Concerned Scientists’ (UCS) blog. Click here to read the original.

3 March 2014 | A couple of years ago, as I waited for my morning coffee to brew and my toast to, er, toast, I was reading the label of my peanut butter jar and had my entire organic, fair trade world thrown for a loop when I saw that my peanut butter
contained palm oil.

Palm oil is everywhere. It is found in thousands of products we use every day from cookies, ice cream, and doughnuts to lotions, soaps, and make up. While there are many benefits to the production and use of palm oil, it is also a major driver of tropical deforestation. How was it that my choices as a consumer, which I thought were pretty “green,” could stand in such contrast to the work I’d spent the better part of a decade devoted to?

What I’ve come to learn over the last few years is that the convoluted path that palm oil takes from plantation to product makes it very difficult for even the most environmentally conscious consumers to know whether the products they buy contribute to deforestation. It’s taken me many years and a lot of firsthand experience to fully understand the scope and scale of the problem.

Starting at the beginning

Corcovado National Park

Primary tropical rainforest in Corcovado National Park, Costa Rica. When forests like this are cleared for palm oil production about 80% of the biodiversity is lost.

The first time I ever heard of palm oil was while studying abroad as an undergrad. I’d just spent a week camping on the beach in Corcovado National Park in Costa Rica where I had my first exposure to intact tropical forests. I woke up every morning at dawn to the sound of countless species of birds and insects; saw Agouti, Kuwaiti, and Peccaries (the tropical equivalent of rabbits, raccoons, and wild pigs) every time I hiked through the forest; and dodged mangoes and cashews thrown by White Faced Capuchin monkeys.

Shortly after our bus left the park we drove through a palm oil plantation. What I saw was worlds apart from the forest I’d just left. Gone were all the diverse species of plants and animals, replaced instead with row upon row of identical palm trees, with very little growing underneath, and no animal life in sight.

As I’d come to learn later, only about 15 percent of animal species that are found in primary forests remain after the forest is converted to palm plantations. That two-hour drive was my first experience with the stark reality of what we lose when forests are cleared and replaced by palm oil.

Getting the whole picture

Palm Oil Plantation

A palm oil plantation on Sumatra in Indonesia. Over the last twenty years plantations like this one have replaced millions of acres of natural forests.

It wasn’t until nearly ten years later, though, when I again spent two hours looking at nothing but palm oil plantations, that the full scope of the problem really hit me.

This time, I was flying over Sumatra, Indonesia. From take-off until landing the view as far as I could see was nothing but palm oil plantations. What I’d seen in Costa Rica was just the tip of the iceberg.

Globally, there are more than 16 million ha of palm oil plantations. That’s an area larger than the state of Georgia! Most palm oil plantations are located in just two countries, Indonesia and Malaysia. While not all of that area has come at the expense of forests, it’s estimated that between 30 and 80 percent of oil palm plantations in those two countries are the result of deforestation. Those forests are some of the last remaining habitat of critically endangered species, like the Sumatran Tiger, Rhinoceros, and Orangutan. When I toured rescue facilities on Sumatra and Borneo I saw dozens of orangutans saved from palm oil plantations, many of which were orphaned babies who’d lost their homes and mothers when the forest was cleared.

Deforestation doesn’t just affect the home of those animals, but ours as well. The clearing of tropical forests releases massive amounts of carbon dioxide, the leading cause of climate change, into the atmosphere.

Worldwide tropical deforestation accounts for around 10 percent of all climate change emissions, and one study estimates every year from 2000 to 2010 land-use from palm oil in just Indonesia produced as much global warming pollution as between 45 and 55 million cars. Flying over the sea of oil palms, spotting the occasional plume of smoke as producers illegally burned their lands for replanting, it was not hard to imagine how demand for palm oil is having such global effects.

What can be done?

Baby Orangutan

Baby orangutans being transferred at a rescue center in Kalimantan, Indonesia. Many orangutans at the center had been rescued from new palm plantations.

Which brings me back to my peanut butter. Having seen firsthand the destruction and devastation that irresponsible palm oil development can cause, I was left wondering if the food I eat and the products I use are contributing to the problem. The answer is that it’s very hard to know for sure.

The road from plantation to product is long and complex. At many points along the supply chain palm oil from different plantations is mixed. This allows palm oil plantation owners who are destroying forests to hide behind the lack of transparency. The best way to hold these bad actors accountable is for the companies that make our cookies, chocolates, conditioners, and cosmetics to commit to not buy any palm oil that causes deforestation and to trace their palm oil back to its origin to ensure it is deforestation-free.

And the best thing for me and you to do to protect tropical forests? Well, the first thing you can do is breathe a sigh of relief, because it’s OK to keep buying products that contain palm oil (no need to give up those Girl Scout cookies quite yet). For reasons I won’t get into here (they involve words like “fungibility” and can be found in our report Recipes for Success), boycotting palm oil has little effect on the amounts and ways it’s produced.

Part of the problem with palm oil is that very few of us have heard of it. Most of us don’t know it’s an ingredient in the products we buy or that it contributes to global warming. So, a few colleagues and I developed an infographic explaining this hidden part of the climate problem.

So be part of the solution—view the infographic.

Then help raise awareness about what palm oil is, how it’s causing global climate change, and how we can pressure companies to adopt deforestation-free palm oil policies.

It may seem like a small thing, given the magnitude of the problem, but little things add up. For instance, last December when the world’s largest trader of palm oil announced a no-deforestation commitment, it called out the role consumer demand played in shaping its policy:

We know from our customers and other stakeholders that there is a strong and rapidly growing demand for traceable, deforestation-free palm oil, and we intend to meet it as a core element of our growth strategy”

The time to act is now, and companies will listen to you, so what are you waiting for?

Caleb May-Tobin is a policy analyst for the UCS’ work on palm oil. He can be reached at [email protected].
Additional resources

This Week In Water: Landscapes Thinking In Action

Ecosystem Marketplace is taking an up-close look at the landscapes approach to nature and conservation starting with two Katoomba Meetings this spring, which will help prompt cross-sector collaboration. Meanwhile, EM monitors landscapes thinking activities in Yorkshire, England and the US.

This article was originally posted in the Water Log newsletter. Click here to read the original.

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

Mechanisms like species banking, forest-carbon crediting, and investments in watershed services draw finance into conservation, based on the fundamental recognition that our civilization depends on clean air, clean water, and resilient ecosystems. On the other hand, focusing efforts (and finance) on specific ecosystem values favors those that can be measured and verified, which means we 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.

 

But creating 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 upcoming global Katoomba Meetings – the first to be held in Brazil in March followed in April by one in Lima – demonstrate that principle in action, bringing together diverse stakeholders together as part of an ongoing effort to accelerate this change.

 

Landscape approaches are a recurring feature in this month’s Water Log as well.

 

We have stories about a $30 million dollar effort to manage forested watersheds in the US for multiple functions: drinking water protection, carbon sequestration, habitat, and resilience to wildfire and other disasters. In Yorkshire, a water company is working with local farmers, hunters, business and government to restore moorlands to health, selecting strategies that benefit local wildlife, protect downstream areas from flooding, sequester carbon, and naturally filter water.

 

We think stories like this are important. A ‘landscape approach’ sounds nice (or all “motherhood and apple pie,” as they might say in Yorkshire) but the average observer might wonder what, exactly, investing in nature at a landscape scale looks like in practice.

 

We suggest taking a look at coverage of a recent WRI/IUCN effort to collect lessons about successes and failures in forest landscape restoration, inventorying more than 20 examples from countries spanning the globe. We also have coverage of a powerful new tool for real-time, landscape-scale monitoring: the Global Forest Watch, a project of Google and the University of Maryland. With ‘landscape approaches’ becoming the latest buzzword at global climate talks, 2014 may be a big year for projects like these.

— The Ecosystem Marketplace Team

For questions or comments, please contact [email protected]


EM Headlines

GENERAL

Google Offers a View into Forest Growth—or Loss—in Real Time

If a tree falls in the forest, not only can you hear it, now you can actually see it in real time, thanks to a new, freely accessible tool called Global Forest Watch.


The world has lost 230 million hectares of tree cover from 2000 to 2012, according to data compiled by the University of Maryland (UM) and Google. In an effort to reverse this “spiral of destruction,” a coalition of more than 40 partners – led by the World Resources Institute (WRI) and including UM and Google – have jointly launched Global Forest Watch, a new online forest monitoring and alert system that utilizes the most recent satellite data available.

 

“This will be a revolution in global forest management,” said Felipe Calderí³n, former President of Mexico, at a February 20 launch event at the Newseum in Washington DC.

Read more at Watershed Connect.

Latin American Katoomba Meetings Aim To Turbocharge Climate Talks

There’s always been a sense that a more formalized holistic approach would deliver better benefits than splitting conservation finance into narrow streams like carbon, biodiversity offsets, or watershed investments. That philosophy took center stage at climate talks in Warsaw late last year.

 

2014 is the 20th year that climate negotiators under the UN Framework Convention on Climate Change will be meeting to try and end global warming, and Peru will host this year’s talks. As a run-up, it’s also hosting the 20th Katoomba Meeting in April – one of two Katoombas taking place in Latin America this year.

 

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.

Here’s a preview of these two meetings and how we’ll be covering them.

Keys To Launching Successful Forest Landscape Restoration

In 2011, WRI, the International Union for the Conservation of Nature (IUCN), and research partners published Landscapes of Opportunity, the first global assessment of where forest landscape restoration might be possible. This map helped build momentum toward the Bonn Challenge, a global commitment to start restoring 150 million hectares—an area three times the size of Spain—of lost and degraded forests by 2020.

 

Since then, several nations―ranging from the United States to Rwanda―have made Bonn Challenge restoration pledges, with pledges from others on the way. What some nations are asking now isn’t “what” restoration is or “where” it is possible, but “how” can it be done successfully?

 

To help answer this question, WRI and IUCN assessed more than 20 examples from around the globe of forest landscape restoration over the past 150 years, including both relative successes and failures. Lessons from these countries can not only provide insights into what works, but also inspire others to restore.

Keep reading at Ecosystem Marketplace.

Writing About Food Security? Say It With Pictograms!

Food security is a critical yet complex issue, and CGIAR (formerly the Consultative Group on International Agricultural Research) has issued a new set of pictograms designed to help people who need to communicate it do so with pictures.

 

Big Facts is an open-source, online library of pictograms designed to illustrate the nexus of climate change, agriculture and food security. It is intended to provide a credible and reliable platform for fact checking amid the range of claims that appear in reports, advocacy materials and other sources. Anyone is free to download, use and share the facts and graphic images.

Visit the Big Facts library.
Learn more about the project.

In The News

POLICY UPDATES

Will Louisiana’s Plan for Reviving the Gulf Be Enough?

In a sharp contrast to the strategy used to manage runaway nutrient pollution in the Chesapeake Bay, which relied on setting strict caps on pollution at federal and state levels, officials are taking their own approach to similar problems in the Gulf of Mexico. State of Louisiana officials say that river diversion projects can help remove nitrogen and phosphorus from the waters draining into the Gulf. The state will also fund voluntary programs to encourage farmers to manage their fertilizer use and control animal wastes.


Environmental groups say that heavy reliance on engineered diversions will mean a long wait for results: “We’re looking at five, ten, fifteen, twenty years out for multiple large-scale diversions to be in place, and we need to be doing something about the dead zone long before that,” says Matt Rota, a spokesman for Gulf Restoration Network.


Critics also charge that the plan fails to engage upstream states, which are the source of the majority of pollution. Garret Graves, chairman of the Coastal Protection and Restoration Authority, noted that Louisiana lacks the authority to induce upstream states to control nutrient pollution, though Louisiana is exploring the possibility of a nutrient credit trading system with upriver states. In the absence of federal intervention, as in the Chesapeake (which would be sure to meet fierce opposition), Graves says voluntary efforts are the way forward.

The Times-Picayune has coverage.

Commonwealth-NSW Ink a Deal on the Murray-Darling

A new deal signed between the Australian Commonwealth and the state of New South Wales will deliver $80 million AUD ($71.7 USD) for water infrastructure projects and restore 1500 gigalitres of water to the Murray-Darling river system over the next eight years through water entitlement buybacks by the Commonwealth. New South Wales has previously taken issue with the maximum cap on buybacks, citing concerns about impacts to farmers.

Learn more at Circle of Blue.

Water Rights Buybacks Helped Australian Farmers, Study Says

A chief criticism of the Australian federal government’s efforts to buy and retire water rights in the Murray-Darling River system has been that buybacks would hurt farmers. A new study, forthcoming in the journal Agricultural Water Management, suggests that the opposite may be true. Sale of water entitlements were found to be linked to farmers’ reducing their debt, modernizing operations, and increasing productivity. The catch: these benefits take some time to appear. About one-fifth of farmers in the basin have sold surplus water entitlements to the government, which set a goal to restore 3200 gigalitres of water to the severely overdrawn river system by 2012. Of those farmers who sold entitlements, 60% were still farming, 30% had left the sector, and 10% had replaced the sold entitlement with water from other sources or switched to dryland farming.

Get the full story.

World Bank Throws its Weight Behind Nexus Thinking

The World Bank recently announced its newest initiative, “Thirsty Energy,” which seeks to support tools and management frameworks that address linkages between water and energy security. Water-for-energy is the entry point: the World Bank says it will work to increase awareness among decision-makers about the water requirements of energy development choices, and promote integrated planning around water and electricity.

Visit the Thirsty Energy website.

GLOBAL MARKETS

Restoring US Lands – One Forest at a Time

As carbon emissions increase, healthy forests are needed to counter those effects, says Robert Bonnie of the US Department of Agriculture (USDA). And it’s the reason why the USDA – under President Obama’s climate action plan to cut carbon pollution – is spending $30 million on forest restoration projects this year. They’re starting with restoring the watershed that provides Helena, Montana with its drinking water supply, by reducing forest fuels (such as pine beetle-killed trees). That effort will cost $865,000. Altogether, the Chiefs’ Joint Landscape Restoration Partnership will support projects in twelve states aiming to reduce the threat of wildfire, protect water quality and improve wildlife habitat. Funds will come from a mix of Forest Service budget (for efforts on public lands) and Farm Bill appropriations (for work with private landowners).

Learn more at the Helena Independent Record.

Nairobi Business Task Force Aims for Water Collaboration, Not Conflict

In Nairobi, water risk is making collaborators out of former competitors. East African Breweries’ subsidiaries’ operations in Nairobi face increased insecurity around water supplies in the Tana catchment. Other businesses in Nairobi, including BASF, British American Tobacco, Coca-Cola Nairobi Bottlers and Chandaria Industries, had the same problem. These companies, along with government officials, the German development department GIZ, and other stakeholders, in 2013 formed a task force to collectively address problems in the watershed.

 

The effort is in early stages, but members have agreed to share best practices and jointly commit to specific interventions to protect the watershed. “We realised we couldn’t do it on our own and that to make a real difference in the broader watershed, businesses will have to work together with new partners, many of whom we hadn’t worked with before,” Michael Alexander, global head of environment for Diageo (East African Breweries’ parent company), tells the Guardian.

Read more from the Guardian.

Ohio River Basin States Take the Lead on Water Quality Trading

Next month, three states in the Ohio River Basin will move forward with the first interstate water quality credit trade. Ohio, Indiana and Kentucky make up what is currently the world’s biggest nutrient trading agreement. The plan includes 46 power plants and hundreds of wastewater facilities along with 230,000 farmers in the basin. Interstate trading has been a key issue slowing down progress in other regions, particularly the Chesapeake Bay. The Chesapeake Bay is one of the most polluted watersheds in the country, but the six states and the District of Columbia bordering the Bay have yet to agree on what comprises a credit.

Keep reading here.

Yorkshire Water Invests in Pennine Moorlands

In the moorlands of Yorkshire, a water company is making major efforts to protect and restore the moors, helping to improve downstream water quality, control flooding, and protect wildlife habitats. Yorkshire Water has financed fencing to keep grazing animals out of sensitive areas, and this spring will replant 75 hectares with native vegetation. Work is being carried out through the Moors for the Future Partnership, a collaboration between Yorkshire Water, Natural England, local livestock producers, Calderale Council, rural regeneration company Pennine Prospects, and a local grouse shoot. Natural England will cover agri-environmental payments to land managers as compensation for their help in rehabilitating the moors.

Learn more.

Water Quality Trading Alliance aims to Spur Programs and Advance Effectiveness

In the US, law firm Troutman Sanders LLP has founded the Water Quality Trading Alliance (WQTA) to give trading the proverbial shot in the arm. The WQTA plans to work alongside the US Environmental Protection Agency and Department of Agriculture, acting as a platform to advance the science and effectiveness of water quality trading, while supporting new and existing markets. “This group will fill a breach at the national level by bringing together leaders who are committed to advancing the integrity, scientific rigor and defensibility of water quality trading,” says Brooks Smith of Troutman Sanders.

WaterWorld has coverage.

Businesses Realize Value of Nature with Online Resource

The Nature Conservancy and the Corporate Eco Forum are behind a new online resource for businesses called the Natural Capital Business Hub. It’s designed to help companies integrate the value of ecosystem services like clean water, into their bottom line, and adopt sustainable practices. “The natural capital of our earth is at risk. The Natural Capital Business Hub helps companies share good practice in new ways of working and designing infrastructure,” says Rupert Thomas of Shell. “It is important for me that we at Shell can share our experiences with green infrastructure solutions that can lower costs and carbon emissions while building up critical ecosystems, and also learn from others.” The Hub includes tools, case studies, implementation assistance, opportunities for collaboration and networking.

Read more here.

Trading in Grey for Green Spaces in London

Central London’s Victoria District is set to be one of the most sustainable and biodiverse places in the city. A £4bn (USD $6 billion) revitalization strategy for the area includes plans to create more than 25 hectares of green roofs and enhance other green infrastructure elements, like rainwater collection systems and planted “living walls”. Efforts build on a comprehensive green infrastructure audit that began in 2010, the first to be carried out by a business improvement district; other districts in London have since followed suit. “The creation of new areas of public realm, the enhancement of existing green assets and the progression of new environmental initiatives will soften the streetscape and make Victoria a place to linger rather than just hurry through from A to B,” the report explains. “In Victoria, the importance of green infrastructure in making the area a more pleasurable space to visit, live and work in is fast being recognised.”

 

Learn more.

A Wetland Park Spawns Green Growth in Los Angeles

A wetlands park in Los Angeles has earned the highest rating under the Institute for Sustainable Infrastructure’s (ISI) Envision standard for capturing and reducing local urban runoff, while revitalizing the neighborhood with green spaces. The South L.A. Wetland Park used a series of best management practices regarding stormwater management, like capturing water from storm drains to sustain the wetlands. It also was designed to be resilient to the effects of climate change, adapting to extreme flood or drought conditions. “The South L.A. Wetland Park is a good example of an integrated engineering solution that successfully built consensus, captured and improved local urban runoff, and created a new neighborhood-revitalizing amenity,” said Sean P. Vargas, Psomas Principal, Director of Sustainability, and Envision Sustainability Professional and Envision Verifier at an award presentation ceremony.

Learn more.

Make a New Glacier, or Save the Old One?

Scientists in Chile, facing widespread retreat among the country’s 3100 glaciers, are trying a new tactic: making new ones. Glaciologist Cedomir Marangunic, of the University of Chile, is leading experimental techniques to encourage glacier formation through spreading detritus, adding barriers to encourage snow accumulation, or covering glacial surfaces with geotextile sheets to reduce the loss of surface ice. 82 percent of Chile’s fresh water reserves are in glaciers, but legal protection of glaciers lags behind neighboring Argentina. And questions about ownership status of glaciers on private land and assessing responsility for impacts fairly (for example, should the city of Santiago be penalized for air pollution that contributes to glacier melt?) remain.

 

Meanwhile, the head of Greenpeace Chile sounds skeptical: “I don’t doubt the good intentions of those [behind the studies],” says Matí­as Asun. “The urgent thing now is not to wait thousands of years to reproduce a glacier, to see if it works, but to protect what is already there.”

Tierramérica has coverage.

EVENTS

Nexus 2014: Water, Climate, Food and Energy Conference

The Water Institute at the University of North Carolina at Chapel Hill and collaborators will host the Nexus 2014: Water, Food, Climate and Energy Conference on March 5-8, 2014 to examine the thoughts and actions related to a nexus approach. The co-Directors of the Conference are Jamie Bartram, Director of The Water Institute, and Felix Dodds, Associate Fellow at the Tellus Institute, with support from an International Advisory Committee. The Conference will bring together scientists and practitioners working in government, civil society and business, and other stakeholders focusing on the questions of how and why the nexus approach is, and can be, used on international and local levels. 5-8 March 2014. Chapel Hill NC, USA.

Learn more here.

Conference on Innovations for equity in smallholder PES: bridging research and practice

What are the best ways to make schemes that compensate protectors of natural resources fairer and more inclusive? IIED’s conference on Innovations for equity in smallholder PES: bridging research and practice aims to explore the latest thinking on the issue from researchers, policy makers, funders and practitioners, and to share lessons learned. 21 March 2014. Edinburgh, Scotland.

Learn more here.

2014 Water Policy Conference

An impressive slate of legislators and policymakers have joined the lineup for AMWA’s 2014 Water Policy Conference in April. Key members of Congress and Administration officials will share their insights on national developments that will affect the nation’s water utilities in months and years to come. Attendees will also have the opportunity to share their views with the speakers. 6-9 April 2014. Washington DC, USA.

Learn more here.

Groundwater Summit 2014

This annual meeting will focus on “10 years of moving research to solutions.” Participants will have the opportunity to model, explore, characterize, bank, inject, extract, treat, and predict all subsurface needs with everything groundwater related. 4-7 May 2014. Denver CO, USA.

Learn more here.

2014 National Mitigation & Ecosystem Banking Conference

The only national conference that brings together key players in this industry, and offers quality hands-on training and education sessions and important regulatory updates. Learn from & network with the 400+ attendees the conference draws, offering perspectives from bankers, regulators, and users. 6-9 May 2014. Denver CO, USA.

Learn more here.

3rd Symposium on Urbanization and Stream Ecology

The Symposium on Urbanization and Stream Ecology is a meeting of stream ecologists held approximately every five years aiming to further the scientific study of stream ecosystems in urban landscapes. In 2014, the third symposium will be held in Portland in the days preceding the joint meeting of the Society for Freshwater Science (SFS) and the Association for the Sciences of Limnology and Oceanography (ASLO). The theme of SUSE3 will be mechanisms: both in the broad sense of landscape-scale drivers of ecological change and in the detailed sense of small-scale drivers of in-stream biotic response. At the broad scale, the symposium aims to further our understanding of variation in dominant mechanisms in different regions of the globe. 15-17 May 2014. Portland, OR.

Learn more here.

CONTRIBUTING TO ECOSYSTEM MARKETPLACE

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Additional resources

Valorando Naturaleza Live Streamed Launch From Bogota

A group of experts convened to address issues surrounding the upcoming climate conference in Peru at the Bogotí¡ Regional Exchange hosted by Valorando Naturaleza and the Initiative for Conservation in the Andean Amazon. The Exchange took place February 27th and 28th.

25 February 2014 | As the region prepares for hosting the 20th climate negotiations of the UNFCC in Peru at the end of the year, with ambitions of clearly defining the role of land use and forestry in the agreement on global greenhouse gas emissions, there is a need to translate decisions from Warsaw’s COP19 into clear actions and implementation strategies. These actions will affect and involve efforts of many regional actors from governments, business leaders, donors, scientists, NGOs and community leaders, who all want to contribute to the process.

Forest Trends’ Valorando Naturaleza (VN) and the Initiative for Conservation in the Andean Amazon (ICAA) have organized a regional exchange called “Reviewing the COP19 results on climate change and the state of economic incentive programs for ecosystem services”. The event starts February 27th and will end tomorrow in Bogota, Colombia. It will be live streamed here on VN.

This event will also launch our platform of information on environmental services for Latin America, ValorandoNaturaleza.org, Spanish langurage sister site to Ecosystem Marketplace.

A collection of articles recently published on our website are now available in our first Insights booklet called ‘Forest carbon in 2014: Implications and opportunities for Latin America.

Perspectives and objectives

The event will focus on current critical issues for the region. One of the main objectives regarding forest carbon will be to better understand the implications of the decisions made during the COP19, and to integrate stakeholders goals to the steps towards COP20 in programs and projects at the national, sub-national and private level.

Given the strong participation of Latin America in the voluntary carbon market and the prevalence of REDD+ projects in the region, the exchange provides a key opportunity for those present to propose ways to improve financing and implementation of such projects in the dynamic context surrounding REDD+ in these early months of the year. And to do so while taking into account that successful initiatives are those that include holistic strategies that measure carbon sequestration capacity or water quality, but also have activities focused on people, the environment and processes related to governance and finance.

Close to eighty experts from 11 countries in Latin America, United Kingdom and United States, including officials from national and regional governments, indigenous peoples, bilateral and multilateral support institutions, project developers, associations, producers, NGOs, and representatives of the private sector will participate in the exchange.

In order to multiply the capacity of the South-South exchanges without increasing our carbon footprint, we will broadcast live from our website. The discussion will be facilitated via twitter and Facebook where participants will have the opportunity to ask questions remotely.

After the event, ValorandoNaturaleza.org will publish articles on key topics of the discussion, linked to presentations and panel discussions, and interviews with the attendees.

Structure of the discussions

Priorities of the group will be defined through discussion panels placed after stimulating presentations divided into the following four modules:

Module 1: Results from COP19 and implications for Latin America introduced by the following presenters:

  • Jenny Wong and Willy Alarcí³n from the UNFCCC secretariat
  • Milagros Sandoval, Manager of the Environmental Policies, Conservation International Peru
  • Regional REDD negotiators Elvira Gí³mez, MINAM – Peru, Iví¡n Valencia, MADS – Colombia, and íngel Valverde, MAE – Ecuador.

Module 2: Financial flows monitored in Colombia, Ecuador and Peru for REDD+ through the REDDX Initiative, presented by:

  • Roberto Leí³n Gomez from Fundacií³n Natura – Colombia
  • Martha Echavarrí­a from EcoDecisií³n
  • José Luis Capella from the Peruvian Society of Environmental Law.

And a special presentation by Sarah Lowery from Public and Private Finance Initiative of Forest Trends, covering examples of comprehensive finance for low emission rural development.

Module 3: Innovative initiatives and lessons learned on ecosystem services development and finance in Latin America will begin with a presentation by Phil Covell, of Forest Trends, highlighting findings from two annual reports on the state of water investments and biodiversity. This will be followed by highlights from four countries in the region:

  • Rosa Marí­a Vida, Pronatura Sur – Mexico
  • Felipe Carazo, Fundecor – Costa Rica
  • Marta Echavarria, Ecuador and
  • Cecilia Sandoval, CONDESAN – Peru.

Galo Medina, TNC Ecuador, will lead the discussion panel of the module.

Module 4 aims to better understand the different perspectives of state governments, indigenous and local communities, and the private sector regarding the use of economic incentives for conservation and management of ecosystems in Latin America.

Module 4 starts with insights into projects and initiatives from Brazil with

  • Pedro Soares of IDESAM and Alberto Tavares of the Development of Ecosystem Services Company, presenting on two leading states in the Brazilian Amazon, Acre and Amazonas, and the first indigenous project to sell REDD credits in Brazil.
  • Plinio Pizango from AIDESEP will talk about the indigenous perspectives on REDD, considering the priorities and goals of the groups he represents;
  • Hoovert Carabalí­, Representative of the Community Council of Mí¡laga Bay will discuss a forests and fisheries project in Colombia;
  • Josefa Mesí­as, President of the Moyobamba Project Management Committee will describe her experience leading this community based water initiative; and finally
  • Erwin Palacios of Conservation International Colombia will talk about his experience with biodiversity, water and forest management programs in Colombia, Peru, and the rest of the region.

Luis Fernando Jara of PROFAFOR Ecuador will chair this discussion.

Module 4b will end this section with presentations focused on stakeholders from the private sector, with the participation of

  • Juliana Lopes, Director, Carbon Disclosure Project in Latin America
  • Zubair Zakir, Carbon Neutral Co.
  • Christian Dannecker, South Pole Carbon; and
  • Lucio Pedroni, of Carbon Decisions, linking activities in the private sector with the progress made in nesting and REDD+ jurisdictional work in the region.

Roberto Gí³mez Charry, Fundacion Natura Colombia will chair the discussion.

Alliances and Expected Outcomes

In the closing session, attendees will take the findings of the topics addressed in the event to prioritize actions so that funding, policies and strategies can increase the impact of initiatives, forest carbon programs, and other ecosystem services in the region. This will lead to the identification of key points for COP20 and areas where regional actors can create alliances and make contributions.

Watch the exchange online at Valorando Naturaleza or ICAA and participate with your questions and thoughts!

 

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.

 

Keys To Launching Successful Forest Landscape Restoration

Forest restoration has the potential to bring millions of hectares of land back to life—a move that could help protect watersheds and ensure food security. The World Resources Institute (WRI) and the IUCN are hoping their global assessment of landscape restoration projects will spur further action.

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

17 February 2014 | In 2011, WRI, the International Union for the Conservation of Nature (IUCN), and research partners published Landscapes of Opportunity, the first global assessment of where forest landscape restoration might be possible. This map helped build momentum toward the Bonn Challenge, a global commitment to start restoring 150 million hectares—an area three times the size of Spain—of lost and degraded forests by 2020.

Since then, several nations―ranging from the United States to Rwanda―have made Bonn Challenge restoration pledges, with pledges from others on the way. What some nations are asking now isn’t “what” restoration is or “where” it is possible, but “how” can it be done successfully?

To help answer this question, WRI and IUCN assessed more than 20 examples from around the globe of forest landscape restoration over the past 150 years, including both relative successes and failures. Examples came from countries such as Brazil, China, Costa Rica, Ethiopia, India, Nepal, Niger, Panama, Puerto Rico, South Korea, Sweden, Tanzania, and the United States. Lessons from these countries can not only provide insights into what works, but also inspire others to restore.

Forest Landscape Restoration in Action

History tells us that large-scale forest landscape restoration is possible.

Costa Rica witnessed its tropical forest cover decline from 85 percent of its land area at the start of the 20th century to below 30 percent by 1987. Yet through a series of restoration efforts—such as innovative financing approaches, policy reforms, and technical assistance to landowners—the nation’s forest cover climbed back to about 50 percent by 2010. This significant restoration yielded a variety of benefits—such as more forest products, ecotourism, and reduced soil erosion—for the nation’s environment, economy, and citizens.

South Korea restored its forests on a large scale after the Korean War. Between 1953 and 2007, forest cover expanded from 35 percent to 64 percent of the country’s total area, while its population doubled and its economy grew 300-fold. Those who say a country can’t grow its economy and restore its forests at the same time haven’t been to South Korea.

Costa Rica and South Korea are not alone. In the eastern United States, about 13 million hectares of forests recovered between 1910 and 1960. Puerto Rico’s forest cover climbed from 6 percent of the island around 1940 to about 40 percent in 2000. And farmers in southern Niger have miraculously restored 5 million hectares of agroforestry landscapes, improving their livelihoods and helping to reverse desertification.

These countries and others show that forest landscape restoration not only can be done, but can also deliver significant benefits to people and the planet.

Forest Restoration Chart

WRI identified 2 billion hectares of degraded land that offer opportunities for restoration. Click on the map to view a larger version.

Lessons from the Past

So how can countries effectively pursue forest landscape restoration? Three lessons are emerging from our assessment.

First, countries with successful restoration programs were motivated by a wide variety of benefits, including improved water quality, soil retention, increased wood supplies, and job creation. More recently, the focus has expanded to recreation, wildlife and biodiversity conservation, and climate change mitigation benefits.

Second, the desired benefits can change over time. Forest landscape restoration in the southern United States, for example, was driven in the 1920s by a desire to protect watersheds, reduce soil erosion, and restore wood supplies. Later, during the Great Depression of the 1930s, it became a way to restore jobs. In the 1960s, recreation emerged as a priority. And in the decades that followed, wildlife conservation and climate change mitigation became aspirations.

Third, we identified three common themes to successful restoration (Table 1):

  1. A clear motivation. Decision-makers, landowners, and/or citizens were inspired or motivated to restore forests and trees on landscapes.
  2. Enabling conditions in place. These included ecological, market, policy, social, and institutional conditions.
  3. Implementation capacity and resources. Capacity and resources were in place and mobilized to implement restoration on a sustained basis.

 

Restoration Table

Different factors were important in different case studies, suggesting that context is important. No one factor appears to be sufficient to trigger restoration success; a combination was typically needed. And the success factors are inter-related. For instance, performance monitoring can help people adjust their implementation strategies, as well as further motivate restoration by publicizing successes and benefits. Finally, the greater the number of success factors that are in place, the greater the likelihood of successful restoration.

Emerging Tools to Support Future Restoration Efforts

Building on this assessment, WRI and IUCN will be publishing a “Rapid Restoration Diagnostic” that helps identify which success factors already exist and which are currently missing within landscapes being considered for restoration. It is designed to help decision-makers identify factors that must be addressed before investing large amounts of human, financial, or political capital in restoration.

The diagnostic tool will be complemented by an IUCN and WRI handbook to help decision-makers and communities plan and implement on-the-ground forest and landscape restoration. Both are slated to be released in 2014.

In the past, forests have too often been sacrificed in the name of economic development. In the future, we envision forest landscape restoration as an integral part of economic development, providing jobs for rural communities and generating a multitude of renewable goods and services.

History tells us that large-scale forest landscape restoration has been done before. We believe it can be done again.

Let the restoration generation begin!

Stewart Maginnis is head of IUCN’s Forest Conservation Programme. Craig Hanson is the Director of WRI’s People and Ecosystems Program. He can be reached at [email protected].

COP President Aims To Plug
Knowledge Holes In Amazon Nations

The Amazon region faces growing threats to its water, energy, food and health as climate change accelerates, and Peru is one of the nations that’s proven most adept at meeting that challenge. The country’s Environment Minister, who is also presiding over this year’s UN climate talks, says his country still has plenty of learning to do – and recommended a bit of homework.

28 January 2014 | Peru this year will host both the year-end climate talks and the April Katoomba Meeting – and with good reason. The country’s economy and culture flow from both the Amazon rainforest and the Andean mountains, and it’s a world leader in the creation of financing mechanisms designed to keep those living ecosystems going. But the country’s Environment Minister – who is also acting as President of the 20th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 20) in Lima – says even the people of this forward-thinking nation don’t really understand the interplay between their economy and their ecology.

“We are still not completely aware of how the Amazonia ecosystem supports water, energy, food and health security,” said Minister Manuel Pulgar-Vidal as he promoted the Amazonia Security Agenda, a report authored last year by the Global Canopy Programme (GCP) and the International Center for Tropical Agriculture (CIAT), with support from Climate & Development Knowledge Network and Fundacií³n Futuro Latinoamericano.

Calling the report “fundamental for decision makers in order for them to take action and make policies that aim to preserve the sustainable use of these resources and services,” he highlighted the growing awareness of the interrelations between climate change, water, food, and security.

“The concept of security is fundamental for improving decision-makers awareness of the implications of the threats to the provision of services, resources and ecosystem services,” he said.

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Costa Rica Aims For Carbon Neutrality With Payments For Ecosystem Services

Costa Rica’s great experiment with payments for ecosystem services helped restore millions of hectares of forest and shaped the nation into a laboratory for climate mitigation mechanisms. Costa Rica is now establishing a domestic carbon market with plans to link it to international markets in the future-all as part of its plan to become carbon neutral by 2021.

27 January 2014 | The green foliage that characterizes Costa Rica is as famous as the ancient cultures of other Latin American nations. “We have ruins like Guatemala, but we also have a stunning landscape,” says Katiana Murillo of Costa Rica’s Department of Climate Change. And Costa Rica has worked to give an economic value to these natural areas.

The world has noticed. Achim Steiner, the Executive Director of UNEP (United Nations Environment Programme), said at the UN climate conference, COP 19, in November that Costa Rica is 10 years ahead of the global community on this issue.

Costa Rica arrived at that conference in Warsaw with several proposals they meant to move forward on starting with initiating the first Nationally Appropriate Mitigation Actions (NAMAs) on alternatives to carbon intensive farming. While at the conference, it also looked at establishing a local market for carbon credits. And before the conference, Costa Rica had been working toward recovering forestland lost during the 1980s. A little over 20% of forest was remaining when the government began and now over 50% of the country is covered with green.

Costa Rica has captured more than 90 million tons of carbon in recent years, but with no international compliance market to sell credits intoI, it’s using the reductions in-country to encourage a national market for buying and selling carbon credits among businesses, organizations and individuals. By 2021, it hopes to be a carbon-neutral nation.

“Costa Rica isn’t meant to be a model for everyone,” says William Alpizar, the head of Costa Rica’s Department of Climate Change. “But we do believe that there is a sense of urgency for all countries to make an attempt at stopping the escalation of greenhouse gas (GHG) emissions.”

Breaking Even

“There’s no doubt that public sentiment in Costa Rica on reducing carbon emissions contributed to the government’s proactive behavior,” says the Director of the Costa Rican NGO, Fundecor, Felipe Carazo.

This public sentiment led to the government announcing their goal of becoming carbon neutral and laying out steps needed to fulfill this goal. They made good on one promise by establishing BanC02 in October 2013, an environmental bank focused on climate change mitigation and low carbon development. The bank buys and sells carbon credits allowing people and companies to offset their GHG emissions.

The bank is the operational arm of the Board of Carbon-a board that administers the Costa Rican Compensation Unit (UCC), Costa Rica’s carbon credit. It’s also part of the Ministry of Environment and Energy.

Carazo still notes the importance of creating national policy that prioritizes conservation and climate change and accounting for it in budgeting and top-level decision making.

Because climate change is already being felt in Costa Rica. Between 2005 and 2011, losses from extreme weather events reached $130 million, according to the Ministry of Agriculture. Infrastructure and agriculture were hardest hit.

The mitigation schemes undertaken as a result of climate impacts don’t just affect development and farming but also the forestry sector. These sectors are inter-related.

“The permanence of the forest is a product of the interrelationships and pressures with other sectors such as agriculture, industry and exports and even those outside of the country,” says Miguel Cifuentes of the Tropical Agricultural Research and Higher Education Center (CATIE) which focuses on environmental issues in tropical America.

PES to the Rescue

Out of the range of possible conservation initiatives that could aid Costa Rica in mitigating climate change, Payments for Ecosystem Services (PES) has proven itself as one of the most effective. It’s been functioning since 1997 and has developed into schemes like the REDD (reducing emissions from deforestation and degradation) mechanism that preserves tropical forests and encourages biodiversity conservation.

Nearly a million hectares of forest has benefitted from Costa Rica’s PES program. Former Minister of Environment, Alvaro Umana, has been promoting PES since the 1980s and largely credits the method for Costa Rica’s recovery of forest cover. He also credits other factors: an expansion of national parks and a law that prohibited changes in usage from forest land. Also, the creation of private forest reserves and tax exemptions for sustainable forest management created incentives for good land stewardship.

However, the success didn’t come without challenges.

“There are places where this mechanism has had an additional effect and others where it hasn’t,” says Cifuentes. He recommends prioritizing PES in the areas that work as well as pushing for better ecosystem services assessments.

Ultimately, PES programs helped reverse Costa Rica’s pattern of deforestation. Conservation measures like the Forest Act in 1996 and the fuel tax came about because of strong public support for conservation. Ecotourism generatessignificant income for the nation, and the people recognize how profitable the forests are.

“As a country, we understand that reducing emissions is good for the atmosphere and the climate and also puts Costa Rica on the road to greater global competiveness. Reductions in the cost of production and in our carbon footprint make us more profitable,” says Alpizar.

Costa Rica has now moved on to focus on preservation. “The tree should not be altered or used in any form,” says Cifuentes. He is referring to Costa Rica’s stance on cutting down trees for development and how the general population feels about the nation’s deforestation age. This perception is having an effect on the forestry sector. The National Forestry Bureau’s latest report found a decrease by 35% of local wood processing sources and also a 49% decrease in employment since 2007.

In order to meet mitigation targets the country is committed to, forests must be strong and standing. But the economy must also be strong. Cifuentes says this is possible. “It’s all in how the resources and land is managed,” he says.

Outside the Forest

Cifuentes considers Costa Rica’s mitigation strategies to be among the best in this region of the world. The belief that concepts like Nationally Appropriate Mitigation Activities (NAMAs) and LCDs (Low Carbon Development) are pieces from the same puzzle is emphasized by the tropical research center, CATIE. CATIE has worked with governments to implement NAMAs in the livestock sector and in the coffee industry.

Reaching out to the coffee trade is especially important in a place like Costa Rica because the cultivation of coffee is a part of its history and employs 8% of the country’s workforce. Coffee plantations consume over 90,000 hectares of land, and its production contributes 9% of national GHG emissions.

Therefore, mitigation actions have been implemented through the reduction and more efficient use of nitrogen fertilizers. They have also made efficiency improvements in the various stages of processing and have developed programs that support agroforestry systems for carbon sequestration.

Reducing emissions from coffee production is essential to Costa Rica’s overall mitigation strategy. Its success will impact other sectors contributing to GHG emissions like other areas of agriculture and energy.

Another sector, livestock, accounts for 82% of emissions. Mitigation strategies for this space were deemed impossible on a large scale by a report published in November because of financial, cultural, institutional and technical barriers. The study is uncertain about carbon sequestration and if the problem could really be solved by a NAMA scenario.

Cifuentes is quick to point out, however, that there are always uncertainties when dealing with new ideas. The concept of ecosystem services was unheard of 20 years ago.

For Cifuentes, reducing carbon emissions using the various market schemes are complex. The monitoring, reporting and verifying (MRV) of REDD+ is layered with complexities. But this is something Costa Rica should work on-refining a methodology for quantifying carbon and continuing to implement REDD+. It’s something Costa Rica could do, Cifuentes says. “The country has already shown great experience in this area unlike other countries where similar programs haven’t even been tested.”

A Green Market

All of these initiatives are meant to achieve the same goal: namely, to reach a national carbon emissions amount of zero. And in 2013, the Voluntary Domestic Carbon Market was established as another initiative to help achieve this goal.

The market would operate something like this: companies looking to become carbon neutral or offset a portion of their emissions implement sustainable practices within their operation and purchase carbon credits through BanC02 for unavoidable emissions. Companies and individuals can also sell a surplus of emissions reductions to the bank. The market acts as a forum for participants to trade UCCs-Costa Rica’s carbon credit.

The National Forestry Financing Fund approved the appropriation of 1.2 million tons of carbon certificates to secure the future of the PES program. The fund receives a payment through the transaction between a buyer of credits and BanC02.

Fernando Orozco, a member of BanC02, says the price of the credits depends on the sector and the parties involved. Clean energy will vary from forest restoration and so on, he says.

Any company or institution can become carbon neutral so long as their credits were approved by the Clean Development Mechanism (CDM), Verified Carbon Standard (VCS) or under Costa Rica’s domestic certification. As of this month, eight companies carry the label and four are on their way to get it.

BanC02 receives support from several government departments and financial institutions. The Ministry of Agriculture is involved as is the Ministry of Environment and Energy. The National Forestry Financial Fund, National Bank of Costa Rica and the Bank Foundation of Environment-part of the Ministry of Environment- also provide support. The latter is entering into talks over trading in global markets with international organizations and other nations, according to Orozco.

Even with this support, the challenges facing PES in Costa Rica is great. BanC02 is responsible for the MRV of mitigation projects ensuring that emissions are actually being reduced. It’s difficult because the methodologies and technical tools needed for this are still very much in development.

“There’s little time to perform quality analysis on each of those services,” Orozco says. “But the market for them is promising.”

Globalizing an Idea

“Costa Rica is not only seeking funding for their climate initiative but justice for the forests,” Alpizar says. “But while we ask for a helping hand, we are extending another to give.”

Costa Rica does need money to finance its mitigation strategies. Ultimately, its plan is to create an international market with credits generated by forest activity.

Cifuenetes welcomes this news and the good news that forest restoration is exceeding loss. He’s also pleased that the government is announcing new mitigation tools. But he’s pessimistic about achieving carbon neutrality by 2021. The forest sector is just one sliver of the climate problem, he says. There are other sectors like those mentioned-agriculture, energy-and also transportation.

“What can we offer to sectors like transportation so they will reduce their emissions,” he asks.

While many questions remained unanswered, one certainty is Costa Rica met with serious success when it set out to decrease deforestation. Forest loss was costing the nation nearly $500 million. With much of the forest recovered, perhaps some of those extra funds could be used toward curbing climate change in other sectors.

Milagros Salazar is an investigative journalist for the Inter Press Service news agency specializing in environmental and social issues. She can be reached at [email protected].

Opinion: The Value of Ecosystem Services Valuations

It’s a fact that human life relies on the natural world but figuring out how to measure this dependency is difficult. Tundi Agardy, a marine conservation expert and the director of Forest Trends’ Marine Ecosystem Services Program, discusses her views on the benefits and dangers of ecosystem services valuations.

22 January 2014 | Nothing focuses the capitalist mind like high worth. If natural ecosystems can be demonstrated to have high value in the goods and services they provide, then – or so the thought goes – governments whose responsibility it is to ensure they are protected will be compelled to meet their obligations, while the private sector will see real benefit in investing. At the same time, in reaction to regulatory disincentive (a logical extension of government acting on its responsibilities) or in reaction to financial incentive (a logical extension of capturing private sector interest), communities and property rights owners will be stronger stewards, acting as individuals and as societies in ways so as to avoid undermining the golden goose.

We have seen this work in practice, and only a fool would argue that stressing the value of nature is a waste of breath. But what roles does economic valuation play in this? Is economic analysis always necessary to achieve conservation or sustainable use? And do economic analyses always lead to the expected, desirable outcomes?

You will already guess that the answers to these questions, at least in my mind, are not simple. Perhaps they are to an economist (which I am not), but as a conservation practitioner I have been surprised far too many times to think we have this one figured out.

The Basic Idea

An ecosystem services perspective provides us a way of looking at the collective value of nature. Admittedly the term has been slow to gain traction in our everyday language, but the concept is getting better acceptance as people toy with ways to articulate it. We now hear phrases like ‘nature’s benefits,’ ‘natural capital,’ ‘human dependence on nature,’ as well as terms borrowed from economics like ‘intrinsic value.’

Though the idea of environmental services was introduced in the 1970s, it really didn’t get widespread international attention until the Millennium Ecosystem Assessment, published in 2005. Today a concerted international effort to understand ecosystem services and incorporate that understanding into decision-making (the IPBES-Intergovernmental Platform on Biodiversity and Ecosystem Services) is underway, but, honestly, we’re kidding ourselves if we think the world gets it. It is only in the telling of stories of loss (nature transformed, lost opportunities, costs of degradation) that the ecosystem services idea has real resonance.

How Much for this Ecosystem Service?

Loss is difficult to quantify. Loss goes beyond costs – it affects the human spirit, and society’s resilience. Nonetheless, we’ve seen how tragic catastrophic events periodically rekindle interest in what, exactly, nature does for us – and how imperative it is to protect these services for our well-being. Whether it is the Asian tsunami of 2004, Hurricane Katrina in 2005, or the more recent Hurricane Sandy (2012) and Typhoon Haiyan (2013), there are consistent expressions of ‘what if’ – “What if mangrove and reef off Aceh had been protected, would the loss of human life in the tsumani been less?” “What if we hadn’t messed with nature by removing oxbows, rechannelizing the Mississippi, stressing the coastal wetlands – would Katrina have caused so much damage?” “What if oyster reefs and salt marshes had been spared the ravages of development, would lower Manhattan and New Jersey shore communities been better protected from Sandy?”

Asking such hypotheticals won’t bring lost lives or property back, but it has spurred greater interest in understanding the roles of nature (ecosystem services) in minimizing risk.

So we have a sudden preponderance of studies quantifying the economic values of nature, including shoreline defense. The numbers can be huge, especially when derived from studies of loss of nature and how it affects wealthy communities or places where land value is extremely high. These data from localized studies are then extrapolated to other parts of the world, in a process known as “benefits transfer.” This has been done for hurricane damage and nature’s role in minimizing it, and also for other services with direct market value, such as support to fisheries and ecotourism.

In the coastal domain where I work, there are numbers one can grab from economic studies for any service one can think of, and with a few calculations and lots of caveats, one can present an estimate of the value of ecosystem services for any place in the world.

I have been guilty of this myself. But as is obvious, I am not comfortable with it. Value is not easily transferable – it is context specific. Not every society has a fisheries or ocean-going culture, so the potential value of fisheries offshore may never be captured. Is it fair to say that nature provides X amount of economic value in supporting fisheries when those fish will never be caught? Likewise with the more intangible values like aesthetic value – not all societies look similarly on nature. Is it fair to say something holds aesthetic value worth Y if the local communities don’t see it that way (literally)?

Since I am not an economist or social scientist, I don’t know how these sciences deal with such differences in perception, but I do believe that value is in the eye of the beholder.

Then there is the thorny problem of discounting. The value of something today is not carried forward into tomorrow – markets fluctuate, goods and services can become more rare (rendering them more valuable), substitutions can be found (rendering them less valuable), and the value in terms relative to the economy overall generally diminishes over time. Economists and planners have argued over what is a reasonable discounting rate, especially in settings where economic value drives environmental decision-making. And it is an important argument indeed – the loss of something with a discounting rate of 15% can be more easily rationalized than the loss of something that would have retained its value over time. Yet disappearing and compromised nature all around the world would suggest that these ecosystem services are indeed priceless, and we sacrifice them at our (and our grandchildren’s) peril.

So what role does economic valuation have in preventing this foolish destruction of nature at our own peril?

Positive Outcomes of ‘Good’ Valuation

Currently there are 934 marine ecosystem services valuations listed on the Marine Ecosystem Services Partnership (MESP) database, a virtual center of information based out of Duke University. The database links the economic value of ecosystems to their ecological value and then to the case study location. The library is constantly updated so the number of valuations listed is always growing.

But the fast growing number of valuation studies doesn’t necessarily mean the information is being put to good use, for management of natural systems or for society. There are good (helpful) studies, and then there are, well – less valuable ones. I risk revealing my true nature as an ecologist and not an economist when I speak to ‘good’ versus ‘not-so-good’ valuation. But bear with me.

Valuations, if done well and robustly, can influence policy at the local, regional, national, and international level in very positive ways. These include spurring planning and the development of policies to safeguard ecosystem services of value, determinations of risk, compensation for damage to natural capital, and a greater rationale for more holistic and effective ecosystem-based management, each discussed in detail below, in the context of the coastal systems.

Appraising the economic value of ecosystem services coming out of coastal and marine ecosystems has guided conservation planning in many parts of the world. For instance, protected areas are established in places with real or prospective value in supporting biodiversity (a non-market value) or in supporting ecotourism (a related market value).

The design of these protected areas in terms of boundaries and the way activities are managed can maximize economic rents or preserve economic values. And when coupled to innovative financing schemes that allow stewards of the resource to “sell” the services to those that benefit most from them (as in PES – Payments for Ecosystem Services, or what we would prefer to call INC – Investments in Natural Capital), crucial funds flows can be created for conservation and management.

In San Andres, Colombia, Forest Trends has worked with CORALINA to undertake economic studies of ecosystem services, focusing the attention of resort owners on the inherent value of sandy beaches for their business and promoting their investment in reef management specifically aimed at continued natural production and stabilization of those beaches.

Investing in Natural Capital

Calculating the economic value of nature can clearly attract investors, for both protection of nature and for restoration of nature (something that is inherently very expensive, and often beyond the budgets of government agencies charged with managing coastal and marine areas). But it has significance for financiers as well – determining values and appraising how well management protects those values can guide responsible investing, whether through trading firms or via development banks. And at the macroeconomic level, including ecosystem services values into national accounting can positively affect ratings, which in turn affects access to financial capital needed for sustainable development and further nature protection.

On the other end of the spectrum, determinations of economic value of services allows agencies to determine more precise compensation in the wake of damages, as occurs with ship groundings on reefs or oil spills. Having the baseline values determined avoids or reduces the guesswork and litigation that usually occurs following a catastrophic accident.

Injecting determinations of economic value into existing planning frameworks can also guide evaluation of trade-offs and steer decision-making toward greater rationality with longer time frames in mind.

In Belize, for instance, the Natural Capital project has applied Marine InVEST models to a host of scenarios for development, allowing the Coastal Zone Management Authority and Institute to assess the possible consequences of planning.

Similarly, economic values can find their way into Strategic Environmental Assessment (for example, Proecoserve.)

Working with our partners, we at Forest Trends are beginning to develop a comprehensive picture of nature’s benefits and how they flow to beneficiaries across the large and complex landscape/seascape of Marismas Nacionales, Mexico.

Examples abound at all levels of geographic scale and complexity, and many of these projects can rightfully claim that they have catalyzed the push toward more Ecosystem-based Management or EBM. And without EBM and its effective integration of watershed management, marine management, and land use management, our conservation investments are often wasted.

Economic valuation of nature’s services allows a more accurate appraisal of the awareness, attitudes, and motivations of the public. That, in and of itself, has immense value.

But – valuations can have unintended consequences.

Valuation Gone ‘Bad’

Putting a price tag on nature is unappealing to many, and can have unexpected negative consequences, catalyzing a backlash against even the very idea of ecosystem services. Fundamental to the backlash is the philosophical argument that nature has value in its own right, not only (and perhaps not primarily) in its support of human life and well-being.

But attaching economic value to nature does necessarily preclude a nature-centric (as opposed to human-centric) ideology. What is, in my mind, a more legitimate concern, is how the valuation information is used, and misused.

One pitfall can result from identifying a single service of high worth, and having all management attention and investment then focused on maximizing that commodity.

Take blue carbon, for example. As scientists have begun to quantify the amount of carbon sequestration being performed by coastal habitats like mangroves, salt marshes, and seagrass meadows, interest in capturing those values has led to methods for generating carbon credits (through VCS, possibly, or in the voluntary markets, or through REDD+ schemes).

Coastal managers and private landowners could be tempted to take steps to maximize carbon fixing, at the expense of other ecosystem services. Taken to its extreme conclusion, seagrass and salt marsh, along with beaches and salinas, might be converted to mangrove ‘plantations’ in order to generate, and sell, the maximum amount of blue carbon. These mangrove plantations could be maintained in isolation, without connection to other marine habitats or upstream watersheds, with no other production functions like shoreline stabilization, fish nurseries, water filtration, or biodiversity support, occurring.

Equality for All

At Forest Trends we’ve been trying to promote a much more holistic view of ecosystem services, even in cases where there is money to be made from commodifying a single service.

In the Abu Dhabi Blue Carbon Demonstration Project, we appraised all ecosystem services coming out of known Blue Carbon habitats (mangrove, seagrass, salt marsh, but also coastal sabkha and cyanobacterial mats), to stress the comprehensive value of functional natural habitats.

While we did estimate the potential collective value of these ecosystems for their services as part of blue carbon co-benefits, we cautioned against the maximization of any one service at the expense of the others. Other groups are looking at ‘bundled services’ too, undaunted by the complexities.

Nonetheless, the danger of having valuation lead to unsustainable and inequitable use remains. With human nature, the default trajectory is down the simplest path, especially one that may end in profit. And when part of the calculus for making decisions about access to space or resources, or in resolving conflicting uses, profitable activities often trump non-use values.

Flagging areas as particularly valuable in ecosystem services can lead to inequity, denial of access, privatization, and – in the worst case – land grabs. Short planning horizons and unrealistic discounting can bias all development decisions in the direction of ecosystem harm and ecosystem services loss, even when economic value for one or more services is found to be high.

Making a Difference

Will the valuation have a meaningful impact in terms of policy change for the ecosystem it is appraising? The question of influence is another large one when discussing valuation. And a report from the NGO WRI (World Resources Institute) found that coastal economic valuations over the Caribbean region helped raise awareness of the importance of coastal ecosystems but did little in influencing policy change. More than 200 such valuations that measure the monetary value of marine ecosystem goods and services exist on the Caribbean, according to WRI’s paper. But their study only identifies 13 that have had a positive influence on conservation or management based legislation.

The report identified that valuation led to the Belizean government banning bottom trawling and the creation of St. Maarten’s first national marine park.

Report authors collected research from existing literature on valuation and marine policy as well as from interviews from those involved-marine park managers, conservation advocates and economists. Their questions and data drew heavily from the creation of Bonaire National Marine Park, which is one of the best known cases of valuation impacting policy in the Caribbean.

One of the report authors, Richard Waite, notes that in the year since this paper was published, they have made adjustments to their results. They have discovered other influential valuations raising the number to 16.

No one officially tracks influence in a public way, Waite says, so there are probably a decent number of cases we don’t know about.

What’s more, policymakers weren’t a group interviewed for the paper. Speaking with them now, WRI found that policymakers largely want more valuation-a significant find for the future of such assessments.

The report also notes that the type of valuation plays a big role in delivering change on a large scale. Absolute accuracy from the valuation isn’t always critical depending on the context. Valuation should be conducted depending on the policy in question. Sometimes a ballpark figure is needed and other times-when related to taxes and fees-more precise data is required.

Outside of the actual data the valuation provides, governance and stakeholder engagement is a key factor that can’t be neglected if planning to catalyze change.

Is it Worth the Effort?

Even when such pitfalls are avoided, we might ask ourselves “Is it possible, or even desirable, to attach economic value to things like cultural or spiritual services? Do we ultimately undermine their value when we try to do this? Does putting a price tag on nature diminish our sense of wonder?”

With a utilitarian, capitalistic mindset, we may ignore the things that matter most to long term human well-being. And, paradoxically, we may become even less inclined to fight for nature and her services.

Economic valuation of nature’s services is part and parcel of better understanding and appreciating nature’s role in sustaining us – physically, mentally and spiritually. We can use economic valuation to improve our planning, our management, and to drive investment. However, it cannot be the lone driver for decision-making, and we must be aware of potential pitfalls, and consciously work to avoid them.

A Way Forward?

Perhaps the safest path is to adopt a broader view of what should be part and parcel of economic valuation. As recently described by Blake Ratner and Edward Allison in a policy review paper, economics is not just about wealth – healthy economies may have less to do with a wealthy generation, and more to do with reciprocity and cooperation to solidify rights and enhance resilience.

Nature’s role in providing the basis for social systems that maximize such resilience is obvious, — and priceless.

Tundi Agardy is the Director of Forest Trend’s Marine Ecosystem Services Program. She can be reached at [email protected].
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COP President Aims To Plug Knowledge Holes In Amazon Nations

The Amazon region faces growing threats to its water, energy, food and health as climate change accelerates, and Peru is one of the nations that’s proven most adept at meeting that challenge. The country’s Environment Minister, who is also presiding over this year’s UN climate talks, says his country still has plenty of learning to do – and recommended a bit of homework.

28 January 2014 | Peru this year will host both the year-end climate talks and the April Katoomba Meeting – and with good reason. The country’s economy and culture flow from both the Amazon rainforest and the Andean mountains, and it’s a world leader in the creation of financing mechanisms designed to keep those living ecosystems going. But the country’s Environment Minister – who is also acting as President of the 20th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 20) in Lima – says even the people of this forward-thinking nation don’t really understand the interplay between their economy and their ecology.

“We are still not completely aware of how the Amazonia ecosystem supports water, energy, food and health security,” said Minister Manuel Pulgar-Vidal as he promoted the Amazonia Security Agenda, a report authored last year by the Global Canopy Programme (GCP) and the International Center for Tropical Agriculture (CIAT), with support from Climate & Development Knowledge Network and Fundacií³n Futuro Latinoamericano.

Calling the report “fundamental for decision makers in order for them to take action and make policies that aim to preserve the sustainable use of these resources and services,” he highlighted the growing awareness of the interrelations between climate change, water, food, and security.

“The concept of security is fundamental for improving decision-makers awareness of the implications of the threats to the provision of services, resources and ecosystem services,” he said.

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Why Is Amazon Deforestation Climbing?

The rise in deforestation in the Amazon over the past year threatens to reverse progress made in the region that has been the largest single contribution to curbing climate change. The news and information source, Mongabay, offers some solutions saying the recent increase has to do with a lack of incentives flowing to farmers.

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

2 December 2013 | The 28 percent increase in deforestation in the Brazilian Amazon over last year that was reported this week is bad news, but it is not surprising. It is bad news because the decline in deforestation since 2005 has given us the single largest contribution to climate change mitigation on the planet, far surpassing the reductions in emissions achieved by any Annex 1 country under the Kyoto Protocol. Brazil’s achievement is particularly noteworthy because it did not come at the expense of agricultural production; beef and soybean production continued to grow. The increase in deforestation is not surprising because there are still no positive incentives flowing to the farmers and livestock growers whose collective land-use decision-making determines how much forest falls each year. There is time to correct this.

We review here some hypotheses for why deforestation increased and some thoughts on which hypotheses are the most plausible. Most are hypotheses that have been presented in the media and in the literature. Rigorous testing of these hypotheses will require further analysis.

Hypothesis 1: The new Forest Code in Brazil has given license to landholders to clear more forest

Response: Unlikely.

    First, the new Forest Code does not reduce the amount of forests that landholders must keep on their properties. They still must keep at least 80 percent of their landholdings in forest if they are located in the Amazon region.

    Second, there is a surprising lack of hard evidence that the Forest Code has inhibited deforestation in the past. Compliance has been very low, in part because the government did little to implement the Code. In Mato Grosso, less than 1/5th of landholders were in compliance with the Forest Code as of 2012.

    Could the amnesty afforded to landholders in the new Forest Code, reducing the area of land that they are required to reforest, have instilled in landholders a sense of impunity, encouraging them to clear more forest? Perhaps, but if that were the case, why didn’t they begin to assert their impunity last year, after the New Forest Code was approved?

Hypothesis 2: Rising commodity prices have increased the profitability of forest conversion to crops and livestock, increasing deforestation rates.

Response: Likely a significant factor, when combined with Hypothesis 3 below

    First, soy prices were close to their all-time high in late 2012 and early 2013 and a somewhat weaker Real has favored exports. (Beef prices, corrected for inflation, have been flat.) Soybeans are not the biggest proximate driver of deforestation, but they are the most profitable large-scale Amazon land use. Of particular importance, high soybean prices drive up land values, capitalizing and displacing cattle ranchers who can then move deeper into the forest frontier.

    Second, most of the Amazon is not suitable for soy. Only 3 percent of the Amazon is forested, suitable for soy and outside of protected areas. Most of the potential for soy conversion is found in Mato Grosso, where deforestation rose 390 km2 (out of a total increase of 1,270 km2). Parí¡, where the biggest increase in forest clearing took place (640 km2, half of the total), has only limited potential for soy expansion.

    Third, cattle intensification may be slowing down, making it more difficult to increase beef and crop production without forest clearing. (Cattle intensification—greater beef production per area of pasture—has been an important element of the decline in deforestation in the Brazilian Amazon region because it has allowed the cattle herd and soy production to grow with less clearing of new crop- and grazing-land, 2].)

Hypothesis 3: The “command-and-control” measures that have been implemented in the Amazon to reduce deforestation are reaching their limits. Farmers have yet to receive positive incentives for their roles in lowering deforestation.

Response: Probably quite important.

    Although one would think that Brazil’s deep reduction in deforestation involved both positive and negative incentives to keep farmers and livestock producers from cutting down trees, this is actually not true. The incentives are virtually all negative (see Table below). Some programs designed to deliver positive incentives, such as REDD+, have not yet been implemented in a way that would send positive signals to responsible producers, beyond a few scattered projects mostly using non-market funds for payments (e.g., the Amazon Fund). (Review of this topic will be published in December 2013. With this lack of positive incentives for keeping forests standing, and perhaps a perception that law enforcement has declined, forest clearing associated with land speculation may have increased.
Law/Initiative Forest metric Negative incentive Positive incentive
Forest Code 80% of property with forest cover Fines, access to credit None
Critical Municipalities Municipality-wide deforestation Access to credit and markets None
Soy Moratorium (voluntary) Cut-off date for forest clearing Access to soy buyers None
Beef Moratorium (voluntary) Cut-off date for forest clearing Access to beef buyers None
Roundtable for Responsible Soy (RTRS), Voluntary; few farms certified Restrictions on clearing native habitat Uncertified producers may be shut out of some markets Price premiums (although they have been very low)
REDD+ State-wide, historical deforestation None Not yet implemented for farmers at scale
Consumer Goods Forum commitment Zero net deforestation by 2020 Exclusion from CGF buyers None designed.
Low-Carbon Credit (ABC) Program Legal compliance   Low interest (5.5%) credit; but uptake has been low

Chart: Eight of the laws, programs and voluntary initiatives designed to slow deforestation that are operating in Mato Grosso, where most of the decline in deforestation has taken place. Virtually all of the incentives for farmers to keep forests standing have been negative.

Hypothesis 4: Agrarian reform farm settlements (“assentamentos”) are still without an effective alternative to deforestation

Response: Probably not a significant factor

The decline in deforestation has taken place primarily on medium and large-scale land holdings, which have been the focus of law enforcement activities and other negative incentives Smallholders tend to clear the same amount each year. Their capacity to clear land is limited by labor constraints. Their ability to respond to perceived national or international market opportunities is also low, since most of their production is for subsistence or local markets. Smallholder deforestation as a proportion of total deforestation in the Brazilian Amazon has increased, but we still don’t know if there have been substantial increases in the absolute area cleared by smallholders.

Deforestation across the Non-Brazilian Amazon, 2004-2012

Another possible cause:

Infrastructure: Dam construction (Belo Monte) and improvements (both current and planned) in soy transport along the Tapajos River corridor may have increased forest clearing in Parí¡ state. The second factor may be driving land speculation and forest clearing in northern Mato Grosso and western Parí¡. A hydro-electric complex on the Madeira River may have contributed to the rise in deforestation in Rondonia state.

Overall Response

The rise in deforestation is probably the result of several factors. There is no evidence that the New Forest Code is one of them. It is important to remember, as well, that the increase is small. Deforestation in 2012 was 77 percent lower than the ten year average ending in 2005; in 2013, it is 70 percent lower. The amount of deforestation recently reported is still the 2nd lowest since official monitoring began.

Keeping deforestation from rising further (reviewed in

  1. Negotiate a shared definition of success in reducing deforestation among agricultural, livestock and finance sectors. The average historical rate of deforestation is already used as a performance baseline by REDD+ programs, Brazil’s National Climate Change Policy and the “Municipios Criticos” program, and is recommended here as a simple, robust metric.
  2. Align the Consumer Goods Forum 2020 “zero net deforestation” commitment, domestic agricultural credit programs, other financial instruments (such as the ICMS Verde recently implemented in Parí¡ State), REDD finance (the Amazon Fund has been sitting on a proposal from Mato Grosso for two years), and other benefits, to favor the producers and local governments who are lowering deforestation across municipalities and entire states below its historical average. The volume of funding to finance deforestation is far greater than that targeted toward reducing deforestation. This ratio needs to be reduced or even inverted.
  3. Develop economic alternatives for smallholder families in agrarian reform settlements that do not depend upon further forest clearing. Provide smallholders with the extension services and infrastructure they need to invest in more intensive production systems that reduce pressure on forests.
  4. Ramp up support for indigenous peoples livelihoods. Their territories act as strong barriers to deforestation.
Daniel Nepstad is the Executive Director and Senior Scientist at the Earth Innovation Institute. He can be reached at [email protected]. Joao Shimada is the Agricultural Commodities Lead. Claudia Stickler is a scientist. David McGrath is a Senior Scientist.

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].
Additional resources

This Week In Forest Carbon: Reading Into REDD+ Acceptance

The Governor’s Climate & Forests Task Force (GCF) just gained three new members from Peru. But while membership may improve REDD+ development in the South, it does not mean it will be easy finding a buyer in the North. There are growing doubts that California, a GCF member, will accept REDD+ credits into its cap-and-trade program.

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

14 October 2013 | The Governor’s Climate & Forests Task Force (GCF)  just gained three new members from Peru. The Peruvian states – San Martin, Loreto, and Ucayali – are all members of CIAM (Consejo Interregional de la Amazoní­a Peruana, or the Interregional Amazon Council), an interregional coordination board that promotes sustainable development in the Amazonian regions in Peru. GCF serves as a platform to enhance capacity building and transnational cooperation to fight deforestation. Its members currently include states from Brazil, Mexico, the United States, Spain, Nigeria and Indonesia.

Patricia Luna del Pozo, Technical Secretary Specialist at CIAM, notes, “We see the GCF as an important tool for governments in Peru. We need to better understand what other regional governments are doing around the world and contribute to their efforts through our experiences.” The newest additions could learn from neighboring Brazil, where participating GCF states have received support for a national REDD+ strategy. Brazil has reduced deforestation by more than 75% since 2005, and Peru could achieve similar results. The Peruvian states can also benefit from a recently launched training program to map and improve the networks of civil society, government, and other organizations and from the newly launched  GCF Fund, an independent funding mechanism that supports GCF members.

 

While GCF membership may improve REDD+ development in the South, it does not mean it will be easy finding a buyer in the North. California, a GCF member, signed a memorandum of understanding with Acre, Brazil and Chiapas, Mexico in 2010. The REDD Offsets Working Group issued its final recommendations on incorporating REDD in to the California program this July. However, there  are  growing doubts that the state will accept these credits into its cap-and-trade program. ARB spokesman Dave Clegern explains, “We have an MOU to observe development of sector-based projects in Chiapas and Acre, but no agreement to accept those projects.” Right now, California officials are focusing on getting the domestic offsets right, he says.  

 

A bill introduced in the California legislature earlier this year indicates that reservations about REDD remain. The bill seeks to ban international offsets, in a bid to retain any benefits from California’s law within the state. In addition to political opposition, expectations that the allowance market will be oversupplied may also hinder REDD adoption. Recent projections indicate California’s cap-and-trade program will have more allowances than needed through 2019. Thus, offset demand might not be driven by compliance needs but by whether companies view offsets as a key mechanism to diversify their compliance strategies.  

 

—The Ecosystem Marketplace Team

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News

International Policy

Forests, ag must star in Warsaw

The Intergovernmental Panel on Climate Change’s (IPCC) newest executive summary is now available. This fifth summary warns that the world has already emitted half of the total carbon emissions that will result in a 2-degree Celsius increase. But what does this mean for forests?  In an opinion piece by CIFOR Director Louis Verchot, he argues that the emissions of forests and agriculture (which make up around 30% of global emissions) need to be addressed. In the upcoming COP19 in Warsaw, Verchot hopes that countries will agree on verification and finance with Reducing Emissions from Deforestation and Forest Degradation (REDD) projects and begin discussions to include agriculture and land use change emissions at the international stage.  

 

Project Development

Mangroves offer carbon trove

Launched in October, the Mikoko Pamoja project  will sell mangrove offsets in Kenya. The project will start by covering 117 hectares and including 3,000 people, and aims to raise around $12,000 a year. Part of the funds will be distributed for community education and health, while the remaining money will plant new seedlings and protect the mangroves. The people behind the idea, Professor Huxham of Edinburgh Napier University and Dr. James Kairo from the Kenya Marine and Fisheries Research Institute, hope to expand it over time. The Mikoko Pamoja project currently has backing from Earthwatch Institute, the World Wildlife Fund, Aviva and the Ecosystem Services for Poverty Alleviation programme. The project’s offsets are currently being verified by Plan Vivo.  

 

No need to mow

South Carolina’s first registered carbon-offset project, Middleton Woodlands Avoided Conversion,  has just been approved by the Climate Action Reserve  (CAR). The project will conserve 3,731 acres next to the historic Middleton Place, the oldest landscaped gardens in America and recognized national historic landmark. Managing director of Middleton Place Colby Hollifield explains that the owners began looking for financial options to preserve the land after witnessing increased land development nearby over the past two decades. They partnered with Green Assets for help with managing the project, as “quite frankly, there’s no way this would have happened without guidance from the Green Assets team. The CAR process demands experts who can navigate the program’s rigorous quantification and inventory methodologies to create high-quality forest carbon offsets.”

 

‘Peat’ing Indonesia’s fires  

Indonesia  may have found a way to beat peat fires  with its Sustainable Peatland Management project. In a fire last October, peatland across central Kalimantan burned except for a five-hectare plot. The plot is one of five pilot sites that were chosen for the project and its success offers a promising future for peat. Unlike other peatlands, this pilot site raises the level of the water table to reduce the amount of soil burning, uses peat ameliorants to reduce acidity and encourage plant growth and encourages inter-cropping to necessitate weeding and make the land less flammable. A replication project, starting last year, uses 100 hectares of land run by 42 farmers and is funded through Indonesia’s REDD+ scheme.  

 

Money troubles in Uganda

Uganda  just signed a $3.6 million agreement  with the World Bank to fund its REDD Readiness Preparation Proposal. Despite this cash infusion, and an additional $865,000 offered by the Australian government, $6 million more is needed to reach the proposed budget. Environmental analysts further expressed concern about the use of this money. David Mwayafu, from the NGO Uganda Coalition for Sustainable Development, worries that “there is no clear mechanism for revenue distribution and sharing in Uganda.” Lauren Goers Williams, an associate at the World Resources Institute, stresses the need for communication and training to work with local communities’ individual forests needs.

 

Finishing first for the gold

Cambodia’s Oddar Meanchey REDD+ Project  became the first in the world to earn the Climate, Community and Biodiversity (CCB) Standard’s “Triple Gold” designation. Oddar Meanchey benefits 13 community forest groups and more than 10,000 households by implementing a mixture of community water delivery, sustainable farming, and land tenure facilitation projects over a 50,000 hectare space. This effort has avoided more than 700,000 tonnes of greenhouse gas (GHG) emissions between 2008-2011. It is now CCB and Verified Carbon Standard (VCS) verified.  

 

Growing capacity in Ghana

Ghana  just secured $9.75 million  from the Climate Investment Fund’s (CIF) Forest Investment Programme (FIP), through support from the African Development Bank (AfDB). The money will finance Ghana’s Engaging Local Communities in REDD+ and Enhancement of Carbon Stocks project, which will support 12,000 people through capacity building, seeds and equipment, and financial incentives. An estimated 175,000 people will benefit indirectly. “Approval of this project means that Ghana can exponentially ramp up sustainability of its forest sector and ensure that forest-related communities are both recipients and creators of effective and climate-smart economic solutions,” said Albert Mwangi, AfDB’s task manager for Ghana’s project. The project will be piloted in two regions to begin with, in Western and Brong Ahafo.  

 

A nutty idea

Three car parks in Leeds and Manchester  are raising awareness about car emissions  in an unusual way: they are currently accepting horse chestnuts, also known as conkers, in lieu of parking fare. One conker is worth 20 pence and so far more than 1,500 conkers – £300 – has been redeemed. The campaign hopes to raise awareness about offsetting vehicle emissions, as all of the conkers will be donated to the Hetchell Wood Nature Reserve where they will be planted. Jonathan Leadley, from Yorkshire Wildlife Trust has commented on the scheme: “This fantastic, but slightly bonkers idea will raise the profile of Yorkshire Wildlife Trust’s wonderful woodlands and hopefully raise a bit of cash to help us look after them.”

 

National Strategy and Development

Indiana Jones to the rescue

Just three days after the Indonesian Government announced the long-awaited establishment of a REDD+ Management Agency (RMA),  actor Harrison Ford had a heated exchange  with Forestry Minister Zulkifli Hasan over illegal logging and encroachments in the Tesso Nilo national park. Ford is vice-chairman of the Board of Directors of Conservation International, and this latest concern over transparency highlights a major need that the new agency should address, the actor said. The RMA has its work cut out for it: a 16-page document lays out 12 functions, including the development of a REDD national strategy and coordinating REDD projects across multiple ministries, as the agency’s mandate. While the agency’s source of funding will be transparent and accountable, no regulation currently exists stipulating public accountability of the agency’s work.  

 

Communities find their voice

Kenya  has been facing governance issues with its reforestation initiatives, and locals are not happy about it. Joseph Lesingo, a member of the Ogiek tribe’s council of elders, says that “communities are not consulted on the nature and benefits of carbon trade projects apart from being informed that planting trees will generate money.” He continues, describing how projects plant exotic trees instead of indigenous species and how communities must rely on investors since they have limited knowledge and access to climate change funding. Benson Ochieng of the Institute for Law and Environmental Governance agrees that local communities have been duped by a lack of transparency and public disclosure. Corruption, embezzlement and misappropriation of project funds are difficult to enforce, he adds, since Kenya does not possess a legal framework for climate-related offenses as stipulated by REDD.  

 

Minding the gaps

The  Global Comparative Study on REDD+, produced by CIFOR, studied land tenure security across five countries (Brazil, Cameroon, Indonesia, Tanzania and Vietnam). The report found that tenure issues must be addressed before REDD+ projects begin; however, the amount of time and costs it takes to implement tenure security is often not included in REDD+ proposals and lengthens the average three to five-year project cycle.  Furthermore, while successful projects employ diverse approaches, project proponents often have trouble coordinating with national strategies and actions. This suggests that these efforts are localized and unlikely to have an impact on other projects in country. The study concludes with the assessment that “little of value can be achieved in the context of project cycles absent of collaboration with government actors”.  

 

Finance and Economics

Earning the medal without the money

While Cambodia’s Oddar Meanchey project just received Triple Gold CCB verification,  buyers haven’t followed the accolades. The NGO Pact has worked with the government to create this REDD+ project since 2007 but stopped funding the scheme in July. Carbon credit sales were expected to fill the financing gap, but no deals have been made as the government of Cambodia still has not signed off on the project, as it was supposed to in May. Pact expects that the forestry administration will buy the credits to continue funding the project. Back in the U.S., Terra Global Capital has been talking to prospective buyers as well. They hope to complete sales before the end of the year. In the meantime, communities in the project assert that the lack of funds means that they can’t monitor illegal logging and they’ve seen land encroachments increase.  

 

Money does grow on trees

In  Ecotrust Forest Management, the investment fund selectively harvest trees sustainably, profits from carbon credits, and sells forest products such as brush undergrowth for floral arrangements. The approach seems to be working: from its start in 2004, the Ecotrust Forest Fund 1 averaged 10.6% per year average gross returns from the $30 million under investment. The fund focuses on finding young forests or forests that need rehabilitation, so they are competitively priced compared to mature forests. While traditional forest investors cut trees at the end of their fast growth stage – about every 35-40 years – and often replant with Douglas-fir trees, Ecotrust relies on mixed trees and selectively logs. They prefer smaller scale logging, selling conservation easements, carbon credits and other activities that add up to larger income streams.

 

Human Dimension

Sticks are fine but words hurt REDD

The Kuna Yala indigenous people in Panama  have rejected REDD after a year and a half of consultation  with Wildlife Works. The 51 communities voted to reject the proposal and took it a step further by announcing a withdrawal “from all discussions at the national and international level on the REDD issue.” Two cousins from the Kuna Yala have created an indigenous rap group, Kunarevolution, to rap about their connection with the earth and the Kuna’s land and water rights. They believe that REDD would take away from future generations and that “it would have been the end of us as a people.”  

 

Science and Technology Review

Forests in flux

In an effort to understand more about carbon sequestration and saturation, the Terrestrial Ecosystem Research Network  has installed about 20 “flux towers” in Australia. The towers send out infrared beams 20 times a second, which measure the transfer of carbon between the landscape and the environment. While many towers measure present-day levels of CO2, one site is “doused” with higher levels of CO2 that resemble the future climate. Current trees in Australia have grown faster and larger due to increased CO2 concentrations in the atmosphere acting as a fertilizer. Scientists hope that the data will provide insights into forest carbon sequestration and the possibility of carbon saturation from too much CO2. More than 500 flux towers are now installed worldwide.  

 

Stress can kill

In a  new study released in Global Change Biology, scientists discovered that Black Spruce trees of North America subject to environmental stresses die after about five years. They also revealed that tree growth slows down with forest age, as expected, but that middle-aged trees have faster carbon uptake than previously expected. These results have implications for climate models, which are mainly based on short-term observations for vegetation. It also may change perceptions of another long-term forest study, the BOREAS project that was carried out by NASA in the 1990’s. The new results show that the 1990’s data was “not the worst [decade] ever for growth, but pretty bad. That means instead of typical growth, we saw slow growth, and that raises questions about whether, on average, forests are socking away more carbon than we think,” explains lead author Ben Bond-Lamberty.

 

Publications and Tools

Reaping the rewards

Produced by the Economics of Land Degradation Initiative, ‘A global strategy for sustainable land management’ compares sustainable land management with unsustainable, short-term practices.  It argues that sustainable land management practices have greater benefits than costs, and that increased adoption could generate $1.4 trillion in increased crop production.  

 

Adapting to REDD+

This  CIFOR case study  examines an Indonesian village’s potential impacts and benefits from climate adaptation interventions. Villagers created two adaptation projects, which the study then evaluated using cost-benefit analysis and projections for returns on investment. It concluded that in addition to direct impacts, the proposed projects could have indirect positive impacts on REDD+. They recommend joint implementation of REDD+ and adaptation projects, to maximize social impact.  

 

Ghana’s growth potential

The “Analysis of Linkages and Opportunities for Synergies Between FLEGT, REDD and National Forest Programme in Ghana” report, coordinated by Tropenbos International and the FAO, examined forest governance in the country and found it to be lacking. The report concluded that coordination between REDD+, FLEGT and the public policy sector has been ineffective. Greater attention is needed to create synergies between national forest policies and institutions.  

 

Jobs

Chief of Party, Cambodia Supporting Forests and Biodiversity (SFB) Project – Winrock International

Based in Phnom Penh, the Chief of Party will oversee the USAID-funded Cambodia SFB Project. The Chief will serve as the principal liaison to USAID/Cambodia and provide overall technical leadership and administrative oversight in order to achieve the results of the program. Candidates should have a Master’s degree required in forestry or environmental management and a minimum of 10 years’ professional experience in fields required for the successful implementation of this program. Read more about the position  here.

 

Assistant Programmes Officer – World Land Trust

Based in Suffolk, UK, the Assistant Programmes Officer will primarily be responsible for the administration of the Carbon Balanced and Carbon Balanced Paper programmes within the World Land Conservation Programmes Team. The successful candidate will be the primary point of contact for all carbon-related queries, with a particular emphasis on contacts with corporate carbon offset supporters. Candidates should have a Bachelor’s degree and an understanding of key concepts in climate science, appreciation of the impact of climate change on biodiversity and the role of conservation in short-term climate change mitigation. Read more about the position  here.

 

Forests and Climate Measures/Communications GLOBE Intern – The Nature Conservancy (TNC)

Based in Washington, D.C., the intern will support the Nature Conservancy’s Forests and Climate team through assessment of performance against program goals, as well as through capture and dissemination of key lessons learned from TNC’s REDD+ work. Candidates should have at least three years of undergraduate study and one year of relevant experience. Experience manipulating, analyzing and/or interpreting data and producing reports is a plus. Read more about the position  here.

 

Sales and Marketing Assistant – co2balance

Based in Taunton, UK, the Sales and Marketing Assistant will develop sales and marketing material, as well as develop new business through sales campaigns and promote the company through marketing campaigns. Candidates should have a minimum of one year of experience in sales, marketing and administration and possess excellent written and verbal communication skills. Read more about the position  here.

 

Regional Manager (Africa) – The Gold Standard

Based in Europe or Africa, the Regional Manager will play a key role in marketing and capacity building activities within Africa and contribute to the review and assessment of Gold Standard projects and methodologies. Candidates should have a Master’s degree in engineering, science or related discipline and at least five years of work experience within the carbon markets and/or other environmental markets. Read more about the position  here.

 

Carbon Program Associate – Impact Carbon

Based in California, the Program Associate will be responsible for managing the execution of all aspects of project development from diligence to implementation on multiple projects in multiple countries with heavy focus on the analysis and packaging of data for carbon asset verification. Candidates should have a Bachelor’s degree at minimum and 1-2 years’ professional experience in consulting, or related business, environmental science, or research.  Read more about the position  here.

 

Program Assistant, Verification – The Climate Registry

Based in California, the Program Assistant will support the Registry’s verification and accreditation programs, focusing on day-to-day operation of the voluntary and mandatory verification programs to help ensure that the Registry collects high quality GHG data. Candidates should have a BS degree (environmental science or related technical degree preferred) and one to two years of professional experience related to GHG/climate change, corporate environmental management, and/or air quality issues. 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

Three Peruvian States Join Global Subnational Carbon Cooperative

Three Peruvian states last week joined the Governors’ Climate & Forests Task Force (GCF). This means that the collaboration of states and provinces aiming to curb deforestation and reduce carbon emissions is now active within 20% of the world’s tropical forests. Also last week, the GCF elected the governor of Acre, Brazil, as their new chair.

7 October 2013 | Puerto Maldonado| Peru | Three Peruvian states – San Martin, Loreto, and Ucayali – have officially joined the Governors’ Climate & Forests Task Force (GCF), which already links states in Brazil, Mexico, the United States, Spain, Nigeria and Indonesia.

All three Peruvian states are members of CIAM (Consejo Interregional de la Amazoní­a Peruana, or the Interregional Amazon Council), which is an interregional coordination board that promotes sustainable development in the five Amazonian regions in Peru through public policies, projects and programs.

Patricia Luna del Pozo, Technical Secretary Specialist at CIAM, noted, “We see the GCF as an important tool for governments in Peru. We need to better understand what other regional governments are doing around the world and contribute to their efforts through our experiences.”

For new members, the GCF is an important platform that will act on existing efforts in the fight against deforestation. Membership will enable capacity building in the subnational provinces, regions and states the GCF operates in.

ADVANCES IN SAN MARTIN

San Martin is one of the recent Peruvian regions to join the GCF. According to local government officials, 72% of San Martin’s forests are still standing. This encouraging figure hides the alarming statistic that, until 2000, San Martin was the most deforested region of Peru (with a peak of 50 000 hectares deforested per year). It was during a period in Peru where public policy favored developing forest areas.

In recent years, however, San Martin has demonstrated how projects that protect natural areas rather than destroy them can be beneficial. There are four validated forest projects in San Martin. One is in the Alto Mayo forest. Another, the Cordillera Azul National Park, is responsible for the protection of more than half a million hectares of forest.

When Valorando Naturaleza spoke with Silvia Reí¡tegui, Manager of the Regional Environmental Authority of San Martin, she said the work at the subnational level encourages innovative and sustainable development   that isn’t necessarily a priority for the state. The Peruvian model advocates a mining-based economy, while the San Martin model works for “green growth,” says Reí¡tegui.

“It is important for us to work with the GCF, which has been operating at subnational levels, generating mechanisms and ways to stop deforestation and in many cases, raising livelihoods, as we are doing in this region,” she added.

COMMON GOALS

In the same vein, Cesar Villanueva, San Martin’s Regional President and president of CIAM stated that, “by working together with the GCF, we can create a basis for developing our own strategy to protect forests and fight climate change in the Amazon.”

He added, “together we can show the world the importance of developing jurisdictional programs to reduce emissions from deforestation and land use while ensuring sustainable living for rural communities.”

An example of how this can work is seen in Brazil where the GCF has had success. The activity it has been doing in Acre, Amapí¡, Amazonas, Mato Grosso, Parí¡ and Tocantins provide support to the national strategy for REDD +.

In 2005, Brazil reduced deforestation by more than 75%, avoiding more than 3 million tons of carbon emissions. It’s expected that Peru can achieve these same high results.

Poverty alleviation is another focus point of the GCF. “Tocantins has a strong commitment to the strategy and the approach of the GCF that transforms the value of environmental goods into sustainable development for local communities,” says Divaldo Rezende, the Special Secretary for Investment in Tocantins, Brazil. “The GCF provides a way to achieve the goals of reducing poverty and conserving the forests and natural resources.”

Outlook for the GCF

GCF members elected the Governor of Acre as the GCF Chair for 2014 at their annual meeting as well. Acre has been a progressive state in accounting for and managing greenhouse gas emissions and deforestation at a jurisdictional level.

“Acre has a program to reduce emissions based on the promotion of a new development model. This has been made possible through 14 years of investment in innovative public policies. We are at the appropriate moment to chair the GCF, to share our experience and continue to make progress utilizing intelligence from other GCF members,” noted Rodrigo Neves, President of the Climate Change Institute of Acre, Brazil.

The new members of the GCF will benefit from various tools, such as a recently opened training program that includes an effort to map and improve the network of civil society organizations, academic, government, private sector and funding organizations.

The GCF also formally launched the GCF Fund, an independent funding mechanism that supports community needs and activities as well as proof-of-concept demonstrations from GCF members.

The GCF includes states and provinces that are leading the way in building comprehensive, jurisdiction-wide approaches to reducing deforestation and promoting low emissions development, including the US state of California. More than 20% of the world’s tropical forests are in GCF states and provinces, including more than 75% of Brazil’s and more than half of Indonesia’s and now 80% of the forests of Peru.

It’s supported by the Gordon and Betty Moore Foundation, Climate Works Foundation, the Alliance for Climate and Land Use, and the Norwegian Agency for Development Cooperation.

Elisa Arca is a journalist liivng in Lima. She writes for cambia.pe-a website focused on climate change. She can be reached at [email protected].
Additional resources

This Week In Forest Carbon: Going Local

The Peru Carbon Fund (PCF) developed a Peru-specific forest carbon standard this past year to create a homegrown alternative to international standards. Likewise, Costa Rica officially launched its own nation-wide voluntary domestic carbon market earlier this September. In Brazil, the recent REDD+ transaction between Brazilian cosmetics giant Natura Cosméticos and the Paiter-Suruí­ also marks the first sale of carbon offsets from an indigenous tribe.

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

30 September 2013 | Latin America is trending local in recent forest carbon news out of Peru, Costa Rica, and Brazil. “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,” says Executive Director Alessandro Riva of the Peru Carbon Fund (PCF). The Fund  developed a Peru-specific forest carbon standard  this past year to create a homegrown alternative to what Riva calls “the extremely high costs of implementing international standards in the Peruvian jungle.”

Likewise in support of domestic reforestation and conservation efforts, Costa Rica officially  launched its nation-wide voluntary domestic carbon market  earlier this September. Its carbon units are only available to domestic players for the time being.  

 

In Brazil, the  recent REDD+ transaction  between Brazilian cosmetics giant Natura Cosméticos and the Paiter-Suruí­ also departs from the global North-South buyer-seller dynamic and marks the first sale of carbon offsets from an indigenous tribe. Over five years in the making, the Suruí­ tribe’s REDD+ project was finally verified by the Verified Carbon Standard (VCS) and the Climate, Community, and Biodiversity (CCB) Standards this year. It wouldn’t have gotten off the ground were it not for Chief Almir Narayamoga Surui, whose story you can read in Ecosystem Marketplace’s  new article.

 

Those in the cosmetics and fashion industries don’t have to look far beyond Suruí­ to find other causes to also support – especially those that target their products toward women. Beyond the watershed moment for indigenous involvement in REDD+,  women are also looking at potentially greater participation in REDD+  thanks to recent efforts to mainstream gender issues through the revision of the CCB Standards, the launch of the Women’s Carbon Standard, as well as the release of the Action Steps booklet by the Women’s Environment & Development Organization and the REDD+ Social and Environmental Standards.

 

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 are currently in report-writing mode in order to bring you this year’s State of the Forest Carbon Markets report.  Thanks most recently to  Carbon Credit Solutions,  the  Peru Carbon Fund, and  WM Beaty  for responding to the survey! We’re $35k away from being able to publish this year’s report in a month’s time (a big thanks so far to  Face the Future!) – can we count on your support?

—The Ecosystem Marketplace Team

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


News

U.S. Policy

California to put buyers on the hook for forestry

If the staff at the California Air Resources Board (ARB)  gets its way, California’s cap-and-trade program could end up  shifting the invalidation risk for forestry projects  away from forest owners to the buyers of offset credits from approved forestry projects. The buyers’ liability provisions allow regulators to invalidate credits that are found to be faulty or fraudulent and require regulated emitters 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 now aiming for consistency in the buyers’ liability provisions, seen by some as a move that could propel additional forest carbon development, while seen by others as an inappropriate burden to buyers.

 

Compliance offsets released for good behavior

The ARB announced it will  issue the first batch of 600,000 compliance offset credits  this month. More than 300,000 credits, the single largest offset, were issued to Environmental Credit Corp.  The ARB has currently approved four offset protocols including forestry management projects, urban forestry projects, dairy digester projects and ozone depleting substances destruction projects. All projects have been verified by an independent third party that looks into the project’s history, documentation and site. ARB Chair Mary Nichols claims that the approved offsets have met “the most rigorous verification of any existing program.” Verified projects may be used by facilities to cover up to 8% of their compliance requirements.

 

Project Development

Where dreams come true

The voluntary carbon markets will have an increasingly key role to play in support of “the happiest place on earth,” given the Walt Disney Company’s  new plans to expand its offset purchasing program. Already covering direct emissions (Scope 1), Disney plans to expand its voluntary offset program to soon also include its indirect emissions from the consumption of purchased electricity, heat or steam (Scope 2). The Climate Solutions Fund, Disney’s internal carbon pricing program, initially used the European price of $15 per tonne (/tCO2e) as its benchmark but the price charged has ranged from $11-14/tCO2e in practice. To date, Disney has preferred to fund new projects than buy older offsets and to work with long-time NGO partners such as Conservation International, the Nature Conservancy, the Conservation Fund and World Wildlife Fund.

 

In the land of lemurs, REDD with a plus

The March 2009 coup in Madagascar didn’t only displace the country’s democratically-elected president – it also cut off key conservation funds, spurring an “orgy” of illegal rosewood logging. The Makira REDD+ project,  verified last week  under the VCS, aims to reverse that trend. The 400,000-hectare project  will prevent 32 million tonnes of carbon dioxide emissions (MtCO2e)  over the next 30 years in a forest that provides for people as well as 20 species of lemurs. The project is run by the Wildlife Conservation Society and marks the first time that credits generated by government-owned project in Africa have been put on the voluntary carbon market. Makira is part of the Code REDD Campaign, and 50% of the revenue from the project’s offsets (assuming it finds a buyer) will go towards sustainable agriculture training, health, and education for local people–the plus part of REDD+.

 

Peering into Microsoft’s Windows

In the absence of carbon regulation, Microsoft is known for doing something a bit unusual: taxing itself internally, spurring a race to save energy and creating a pool of money that can be reinvested in efficiency, clean energy, and carbon offset projects. While it has been public knowledge for some time that the company has supported Wildlife Works’ Kasigau Corridor REDD+ project in Kenya as well as Pact’s Oddar Meanchey REDD+ project in Cambodia,  a new article brings to light  that Microsoft has also purchased offsets from an Amazonian REDD+ project in Acre, Brazil and the Meru Nanyuki Reforestation project in Kenya. The company-wide carbon price was  initially set at a modest $6 to $7/tCO2e  but is expected to increase over time. As for the total amount Microsoft collected through its internal carbon fee? They’re keeping mum.

 

Hearkening back to New Zealand’s heyday

City Forests has successfully  locked buyers into purchasing New Zealand carbon units (NZUs)  at more than $20. Fetching five times the open market trading price, this deal is in no way representative of the rest of the New Zealand market, but rather a vestige of forward-purchase contracts signed during better years. City Forests’ record $14.6 million profit the last financial year (to June) was in part thanks to a $6 million carbon credit sale to an unnamed trading bank and oil company. “They were sold at the peak of the market,” Grant Dodson, the company’s chief executive, explained. Because of persistently low prices, the company – which is owned by Dunedin City Council – is not planning to sell any credits this year.  

 

Meanwhile, a report last week showed that forest credits dropped to less than 2% of units retired on New Zealand’s Emissions Trading Scheme in 2012 – down from 64% in 2010. Labour Party Climate Change spokesperson Moana Mackey  called for damming the flood of cheap international emission reduction units (ERUs)  that have been overcrowding and depressing prices in New Zealand’s domestic market. Mackey’s newly proposed bill would require 50% of carbon credits surrendered in the country to be NZUs, protecting the forest carbon sector. She says that emissions from deforestation have surged over the last two years as NZUs have fallen flat and that reversing that trend is the governing National Party’s only serious hope for curbing greenhouse gases (GHGs).

 

Banking on REDD in the DRC

A $21.5 million grant from the  African Development Bank Group (AfDB) will finance a pilot REDD+ project  in the Democratic Republic of Congo (DRC). The AfDB approved the project with funds from the Forest Investment Program (FIP).  The project will protect carbon stocks in Mbuji-Mayi/Kananga, a degraded savannah area, and Kisangani, a closed forest area, producing an estimated 4 MtCO2e over 25 years and benefitting 400,000 people. The project aligns with the DRC’s 2012-2016 Growth and Poverty Reduction Strategy Paper, which in part focuses on natural resource management and climate change control as a way to stimulate job creation and green growth.

 

Kariba on the market

The first offsets from the Kariba REDD+ project in Northern Zimbabwe  went on sale this month. Developed by South Pole Carbon, the project will generate almost 52 million carbon offsets over 30 years as it protects 785,000 hectares of the Miombo forest from deforestation and degradation. Verified by both the VCS and CCB Gold Level, the Kariba REDD+ Project includes anti-poaching patrols and forest fire prevention and promotes sustainable agriculture endeavours such as beekeeping and community gardening. Kariba is also a part of Code REDD, an initiative to ramp up corporate support for REDD projects. Code REDD reports that the Kariba REDD+ project  recently received approval by Australia’s National Carbon Offset Standard, becoming one of a few international REDD+ projects available to use for voluntary offsets by Australian companies.  

 

Seed money to grow into REDD projects

The Governor’s Climate & Forests (GCF) Fund announced its first  Request for Proposals  on August 28. The GCF is seeking to support efforts to strengthen subnational REDD programs and monitoring, reporting and verification methodologies and to improve forest carbon assessments at the state and provincial levels; all proposals should align with national-level REDD+ strategies. Civil society organizations are encouraged to partner with GCF tropical forest countries–Mexico, Peru, Brazil, Indonesia, and Nigeria–on proposals. All five countries are expected to receive some GCF financing for “proof of concept” projects. Proposals are due October 11 and decisions will be made by October 30. The GCF Fund has an initial seed grant of $1.5 million from the U.S. Department of State for 2013-2014 activities.

 

National Strategy and Capacity

Peru and Costa Rica go local

An interview with Alessandro Riva, Executive Director of the Peru Carbon Fund (PCF), provides an insider’s look into the fund’s new Peru-specific Forestry Standard, which diverges from most carbon standards serving either regional or global models. The standard seeks to generate Carbon Capture Certificates (CCCs) for native tree planting on previously deforested land, and allows for harvesting (e.g. using wood for construction) as long as the carbon isn’t released into the air. The Fund gathers financing from investors that seek carbon-neutral certification using CCCs, and fully invests the money in Amazon reforestation projects. Uniquely, the CCCs cannot be resold; PCF aims to provide a direct link between companies and farmers.

 

Earlier this month, Costa Rica’s President Laura Chinchilla signed a decree announcing  the launch of the country’s voluntary domestic carbon market. The market, which will be only open to domestic players for now, is the next move in Costa Rica’s plan to become carbon neutral by 2021. Under the new market, developed by the Costa Rican government with help from consultancy écoRessources, companies will be able to trade Costa Rican Compensation Units (UCCs), which are tied to domestic reforestation and conservation efforts alongside other projects designed to cut emissions and improve energy efficiency. UCCs are estimated to cost $3-$5/tCO2e, and the first trades are expected to take place toward the end of 2014.The price estimates stem from the World Bank Carbon Fund’s commitment to buy a maximum of $63 million forest-based credits.  

 

Brazil’s story of de-deforestation…and how they can keep telling it

A piece in  The Economist  last week documents the various colliding factors that have led to a dramatic decrease in deforestation in many Brazilian states over the last decade. The story of how ranchers in Paragominas (in the Parí¡ state of Brazil) have moved from burn-and-expand agriculture to forest stewardship in the space of 10 years is one that includes the influences of many characters. The article acknowledges that the near halt to deforestation in Parí¡ is an inherently tentative victory: “If locals can prosper without chopping trees down, there is a good chance that the rest of the forest will survive. If they can’t, it won’t.” It is at these everyday decision points that carbon financing could play a crucial role – especially in the context of Jurisdictional and Nested REDD+ projects.

 

New Indonesian agency has its work cut out

Indonesia’s long-awaited  decree for a national REDD+ agency  was signed by President Susilo Bambang Yudhoyono on September 10. The decree recognizes Indonesia’s commitment to reduce GHGs 26% by 2020 as compared to the ‘business as usual’ scenario – 41% of that reduction can come from international assistance. In that vein, the REDD+ Managing Agency will be responsible for developing and implementing Indonesia’s national REDD+ strategy, monitoring and evaluating projects, coordinating law enforcement around REDD+, and more. The Center for International Forestry Research (CIFOR) welcomed the announcement of the agency but warns of the heavy lifting that lies ahead: “This is only the beginning of huge tasks associated with forest and land governance,” said Daniel Murdiyarso, a scientist with CIFOR.

 

Abbott to carbon farmers: don’t worry about it

When Tony Abbott took office as Prime Minister of Australia on September 18, he made good on his promise to  introduce a bill to repeal the country’s carbon tax  (now AU $24.15/tCO2e) on his first day in office. The bill leaves landowners who have been adopting sustainable agriculture and restoration  projects  as part of the Carbon Farming Initiative (CFI) in the lurch with 1,962,675 already issued emissions reductions (called ACCUs in Australia) on their hands. These landowners are concerned that axing the carbon tax will also derail demand for their offsets, but Abbott’s environment minister Greg Hunt says not to worry: the government is allocating $1.55 billion in its first three years out of the Emissions Reduction Fund to purchase the credits. An extra buyer in the market, Hunt says, “always means more competition and higher prices for any seller.” The ACCUs will still be available to voluntary buyers, regardless of Australia’s carbon tax outcome.

 

The Australian government’s intention to establish a Direct Action Plan in place of a carbon price could also potentially  limit the potential for blue carbon  to take off domestically. With seagrass meadows tucking away between four and ten times the amount of carbon that forests do, new research from Edith Cowan University estimates the value of Australia’s seagrass meadows  at more than $5 billion on the international carbon market. The estimate is, however, tenuously hinged on a carbon trading price of A$35/tCO2e (predicted by Australia’s federal government by 2020 based on the country’s former trajectory of instituting a national emissions trading scheme by 2014-2015).

 

Smudging the numbers

In a global comparative study on REDD+, researcher Mary Menton from the Global Canopy Programme noticed an oddity: the official data from Peru’s case study showed no change in the charcoal industry over time. “I thought it looked a bit fishy and warranted some field work,” says Menton. Her hunch paid off, as the  new study  found that the case city Pucallpa produced 80 times more charcoal than official figures. The city is the capital of Ucayali, a major charcoal supplier to Lima. The research turned up another surprising result: though production had shot through the roof, deforestation hadn’t. Charcoal producers in Pucallpa mainly used sawmill waste to burn as scrap wood, which isn’t a direct threat to rainforests.  

 

Human Dimension

It takes a village  

In the small village of Buntoi, Kalimantan, the 2,700 inhabitants will now add one new home:  Indonesia’s first Climate Communications Center. The Center will become a place that provides direct communication between traditional knowledge users and global environmental experts. “This center is about creating the foundations of the future so that knowledge-exchange on development, sustainable practices and ongoing input from local communities can be hard-wired into the process,” said Dr. Kuntoro Mangkusubroto, chief of the President’s Delivery Unit for Development Monitoring and Oversight. The project is part of the greater Central Kalimantan REDD+ pilot in Indonesia, which receives $1 billion from a partnership with Norway to reduce deforestation and degradation.  

 

Science and Technology Review

Peat loss turns up the heat

Indonesia, currently the world’s third-largest carbon emitter, began draining ancient peat swamp forests in the Kalimantan region in 1996 as part of what was called the Mega Rice Project, intending to grow rice for food security. However, “it was a giant catastrophe,” says Professor Mark Cochrone, since the soil was unsuitable for growing crops. The professor will study the matter further with a  new $2.2 million grant from NASA  to use satellite image, modeling and field studies to track the carbon emissions from peat loss. His work may also be used to help the Indonesian Forest Research and Development Agency assess their progress in reducing the emissions. Whether or not the ecosystem can be restored “will depend on how serious [the government] is about reestablishing the hydrology.”

 

The giant role of beanstalks

Researchers have discovered that legumes – bean and seed producing plants –  may prove pivotal for reforesting in the tropics. Tropical soil is often nitrogen poor, which can reduce the chances of successfully reforesting degraded land. However, legumes are natural nitrogen fixers in that they convert atmospheric nitrogen into soil-based nitrogen. The study, published in Nature, found that legume plants grew at nine times the rate of non-fixing plants during the first 12 years of forest regrowth in 16 second-growth forests in Panama.  As the forests aged, they gradually weaned off nitrogen-fixers. “We knew that legumes were important, but what surprised us was their ability to respond to nitrogen deficiency during the early phase of the regrowth,” says Sarah A. Batterman, a postdoctoral researcher at Princeton.

 

Flying high with funds

NASA and the U.S. Geological Survey  launched a public forum and call for ideas  last week, at the end of their Sustainable Land Imaging Architecture Study Industry and Partner Day. They are currently accepting ideas for a project that would replicate the success of their Landsat satellites, which have provided over 41 years of data on food, water, forests and other natural resources. NASA wants to develop a space-based system that can provide continuous Landsat-quality data for at least 20 years with minimal costs. The call comes after a directive from the Obama Administration earlier this year created the Sustainable Land Imaging Program. Meanwhile, the popular Landsat program has continued running with the Landsat 8, launched in February.  

 

Publications:

REDDy for Engagement

Commissioned by the Forest Carbon, Markets and Communities Program of USAID, the  Readiness To Engage: Stakeholder Experiences for REDD+  report examines national, sub-national and nested stakeholder engagement experiences, good practices and lessons learned. It finds that REDD+ programs must keep historical governance issues in mind when developing new projects in the forestry sector; transparency, stakeholder engagement and accountability remain major challenges.  

 

Turning a new LEAF

Lowering Emissions in Asia’s Forests (LEAF) released a new publication,  International Experience with REDD+ and National Forest Funds. The paper details LEAF’s lessons learned from its work with the Vietnam REDD+ Funds, and offers a comparison of operational aspects of the forest funds. Lastly, the paper examines the macro-economic conditions essential for developing investment into these funds.    

 

A standard for standards

Despite a multitude of forest certification standards, the environmental and social benefits remain to be impartially evaluated. The  new CIFOR report  proposes an empirical research framework to examine these benefits and suggests that such a methodology should be used to evaluate tropical forest certification on a global scale.  

 

Jobs:

Regional Director, San Joaquin Valley – Sustainable Conservation

Based in San Joaquin Valley, the Regional Director will evaluate new ideas, technologies and business models that reduce the environmental impact of California dairies while providing profitable revenue streams in areas of high concentrations of dairies. Candidates should have 10+ years’ experience in a leadership role or equivalent and significant knowledge of the California agriculture sector and agricultural systems.

 – Read more about the position  here

 

Forest Carbon Sales and Marketing Manager – CO2OL

Based in Germany, the Forest Carbon Sales and Marketing Manager will lead CO2OL’s work to commercialize the carbon credits generated by our reforestation projects and individual forest carbon projects. Candidates should have a track record of carbon credit sales or sales of investment/financial products and an expertise in the branding, marketing and differentiation of premium carbon credits.

 – Read more about the position  here

 

Carbon Analyst – New Forest

Based in Bogota, Colombia, the Carbon Analyst will identify, develop, and manage forest carbon offset projects for the California and Western Climate Initiative cap-and-trade market. Candidates should have a Master’s in Forestry and at least two years of work experience.  

– Read more about the position  here.  

 

Chief Investment Officer – Ecotrust Forest Management

Based in Portland, OR, the Chief Investment Officer will lead the execution of all financial planning and investment analysis functions for the forestland investment funds managed by EFM. Candidates should possess five to ten years of complex financial analytical experience and demonstrated experience using Microsoft Excel and Microsoft Access for financial model development, including VBA programming.

– Read more about the position  here.  

 

Earth Science Policy and Program Strategy Analyst Job – Booz Allen Hamilton

Based in Washington, D.C., the Analyst will support the NASA Applied Sciences program on a variety of projects and topics, including climate change, REDD+, and water resources and management. Candidates should have 7+ years of experience in a science or a technical environment and experience performing background research and literature searches.  

– Read more about the position  here.  

 

Program Advisor, Indigenous and Communal Conservation – The Nature Conservancy

Based in Arlington, VA, the Program Advisor will conduct research and analysis and write reports related to international human and indigenous peoples’ rights and policies and the implications for sustainable development and conservation. In addition, he or she will provide advice on strategies for scaling up indigenous-led, community-based conservation. Candidates should have a Bachelor’s degree in political science, international development, social sciences or ecology at least 5 years related experience or equivalent combination.

– Read more about the position  here.  

 

Manager, Knowledge Sharing & Learning, Forest & Climate Change – World Wildlife Fund

Based in Washington, D.C., the Manager will develop and manage effective REDD+ knowledge sharing within the FCP extended team, across the WWF Network as relevant, and with partner organizations. Candidates should have an undergraduate degree in knowledge management, education or related field and a minimum of 8 years’ work experience with proven success in setting up lessons learning systems for preferably international organizations.

– Read more about the position  here.  

 

Chief of Party, Low Emission Development Strategy (LEDS) – Cadmus Group

Based in Guatemala, the Chief of Party will identify ways to support the Government of Guatemala on the planning, design, policy development, and implementation of the LEDS Project, as well as promote participatory processes with the private sector and civil society. Candidates should have ten or more years of experience in a managerial position in Guatemala or in Latin America, with a minimum of five years of experience in management or technical assistance in fields related to the subject matter of this project, such as natural resource management, sustainable forestry management, climate change topics, REDD+, biodiversity conservation, etc.

– Read more about the position  here.  

 

Chief Technical Officer – American Carbon Registry  

Based in Sacramento, CA or Arlington, VA, the  Chief Technical Officer will oversee the American Carbon Registry (ACR) registration of California compliance and early action offset projects from listing through verification and offset issuance. The CTO is also responsible for ACR’s voluntary offset project registration as well as overseeing the development and/or approval of new carbon offset standards, methodologies and tools. Candidates should have a Masters in the Environment, Forestry, or related field and at least 10 years of experience with environmental markets and five years of carbon market experience.  

– 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

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

Disney To Expand
Voluntary Carbon Offset Buying

Already a major player in the voluntary carbon market, the Walt Disney Company is planning to expand its offset purchasing program to cover indirect emissions related to its operations. Disney has pledged to continue supporting new offset projects, particularly in the forestry sector, and has used the funds generated from its double-digit internal carbon prices to pay above-average prices for the credits.

13 September 2013 | The entertainment giant that runs the “Happiest Place On Earth” is wild about carbon offsets, so much so that the Walt Disney Company will expand its already substantial voluntary offset purchasing program to account for indirect emissions generated by its operations, an effort to be financed by a $11-14 per-tonne internal carbon price the company charges its business units, according to sources close to the program.

In 2009, Disney announced a series of long-term goals to reduce its environmental impact, including a goal of zero net direct greenhouse gas (GHG) emissions, a target that will likely be updated in the next year, says Bob Antonoplis, assistant general counsel for The Walt Disney Company. The multi-media company challenged its business units to reduce their direct emissions through energy efficiency, fuel savings and fuel substitution initiatives and turns to the voluntary carbon markets to offset what it cannot reduce internally.

Disney’s voluntary offset program has covered these Scope 1 direct emissions and the company is planning to expand its offset purchasing in the “near future” to include its Scope 2 emissions, which cover indirect emissions from consumption of purchased electricity, heat or stream, Antonoplis says.

“We’re going to be expanding our program as we fold in our Scope 2 emissions, which will obviously increase the amount of projects that we’ll be involved in,” he told participants in a Climate Action Reserve (CAR) webinar on Thursday.

Since establishing its environmental goals, Disney has since become a major buyer in the voluntary carbon markets. “It was clearly driven by the overall goal that we set for ourselves,” he says. “That’s why we are participating at the scale that we are and then when we fold in our Scope 2 emissions, we’ll be at an even higher scale.”

As part of this effort, Disney established its Climate Solutions Fund, the name given to its internal carbon pricing program. The costs of carbon offset projects are charged back to individual business units at a rate proportional to their contributions to the company’s overall direct emissions footprint. Charging the business units for their GHG emissions raises the capital that is used to invest in third-party emission reduction projects.

When the internal carbon pricing mechanism was first pitched to Disney management, the then European price of $15 per tonne (/tCO2e) was used as the benchmark, Antonoplis says. But the price charged to the company’s internal units has been much lower in practice, varying in the US $11-14/tCO2e range, he says.

By comparison, the average price for voluntary offsets on a global basis was $5.9/tCO2e in 2012, with an average price of $6.7/tCO2e in North America last year, according to Forest Trends’ Ecosystem Marketplace’s 2013 State of the Voluntary Carbon Markets report.

Disney’s four cruise ships pay “a significant chunk” into the fund, while its less energy-intensive movie studio and television divisions are responsible for lower payments, according to Antonoplis.

Forest Lovers

The folks who choose offset projects for Disney have a particular affection for forestry projects.

“We like projects that have co-benefits and side benefits in addition to just pure GHG benefits,” he says. “We’re really drawn to forestry projects and we’re really drawn to reforestation projects in particular that have watershed protection, habitat rehabilitation as well as a GHG component. A bulk of our money is spent on forestry projects.”

With the help of a $3.5 million donation from Disney, Conservation International was able to develop a reduced emissions from deforestation and forest degradation (REDD+) project in the dwindling Alto Mayo Protected Forest in Peru. The project, which Antonoplis calls “fantastic,” has generated 3 million tonnes of emissions reductions (MtCO2e) so far, and delivered a host of benefits for the local populations.

“We’re big supporters of REDD and we’re active in both California and Washington, DC on trying to get REDD into our regulatory programs,” he says.

In 2012, Disney’s direct GHG emissions footprint was 867,353 tCO2e and the company retired 433,677 tCO2e in carbon credits generated by the Peru project to help meet its indirect GHG emissions goal.

Antonoplis is particularly proud of the Cuyamaca Rancho State Park project, for which Disney helped finance the reforestation of 1,075 acres of forest land, which was decimated by the Cedar Fire of October 2003. This was a particularly pricey endeavor compared to other offset projects such as dairy methane, livestock or ozone-depleting substances projects, he notes.

“Even though it was ‘expensive,’ it was just a wonderful project,” he says.

The company has purchased a smaller percentage of carbon offsets from other projects such as energy efficiency, livestock gas capture and landfill gas, with landfill projects in particular an extremely cost effective way to capture methane, which has a much higher global warming potential than carbon dioxide.

“You get a lot of bang for the buck in engineering costs,” Antonoplis says. “It’s cheaper to do them and it keeps the price down.”

Demand will likely continue for lower-priced landfill methane projects via the Chicago Climate Exchange’s offset registry program because of the significant price differential that exists between CCX projects and the higher-priced CAR credits, says Molly Peters-Stanley, associate director of Ecosystem Marketplace.

“Not everybody pays as much for voluntary offsets as Disney does,” she says.

Disney’s preference is to fund new projects rather than purchasing older offsets and to work with long-time NGO partners such as Conservation International, the Nature Conservancy, the Conservation Fund and World Wildlife Fund, with 80-90% of its credits acquired through these relationships.

“They’re friendly contracts to negotiate and we each have kind of a reputational stake in the project working,” Antonoplis says. “It enables us to easily enter into agreements to fund these projects.”

Location of the projects is often a consideration for the company in choosing offset projects. Disney has financed several reforestation projects with the Nature Conservancy in China because of major construction on the upcoming Shanghai Disneyland and its existing theme park in Hong Kong, he says. The company also wanted to engage in projects in California because it is headquartered in the state. But Disney also has projects in Peru and the Lower Mississippi Valley, where it does not have operations.

“We don’t only pick projects based on geography,” he says. “But all things equal, we do like projects in our neighborhood.”

Voluntary Buying Going Strong

The entertainment giant’s offset purchasing strategy assumes that a vibrant voluntary market exists, Antonoplis says. “Obviously that is the case and it’s worked very well to our benefit,” he says. “It’s been a successful program for us.”

In 2012, voluntary actors contracted 101 MtCO2e for immediate or future delivery, a 4% increase over 2011, while the volume purchased domestically in North America increased by 1% to about 30 MtCO2e, according to the Ecosystem Marketplace report.

Ninety percent of offset volumes were contracted by the private sector, where corporate social responsibility (CSR) and industry leadership were the primary motivators, Peters-Stanley says.

For Disney, CSR was “clearly our motivation,” Antonoplis says.

Despite being based in California, the company’s offset purchasing is not motivated by compliance mandates because its operations in the state fall well below the 25,000 tCO2e threshold to be covered under California’s cap-and-trade program. “That kind of frees us up from not having to worry about the offset component of the cap-and-trade program,” he says.

CAR was the most popular offset standard in North America in 2012, with a 30% share of the market, in large part due to preparations for California’s compliance program, which officially launched in January 2013, Peters-Stanley says. Removing compliance-related transactions from the equation, the Verified Carbon Standard (VCS) was hands-down the leading standard for voluntary activities in North America, she says.

“If it weren’t for the voluntary market, the vibrancy of the standards such as VCS and [the American Carbon Registry] and CAR of course, we wouldn’t be comfortable playing in this area,” Antonoplis says. “The vibrancy of the market and the verification standards and the ability to get these projects off the ground and going has really worked well for us.”

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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.  

 

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