Is REDD+ a risky, uber-complex business?

Tropical forests cover about 15 percent of the world’s land surface but every year around 13 million hectares of forest are cleared for crop cultivation, cattle, logging and mining (FAO 2010). Forests are both carbon guzzlers (sinks) and emitters (sources) and deforestation and forest degradation accounts for a whopping 15-17 percent of man-made GHG emissions each year.

In the context of climate change, a 50 percent reduction in GHG emissions is needed by 2030 to prevent global temperature rising above 2 degrees Celsius (IPCC 2007, AR4) but the positive news is that reducing deforestation is the “single largest opportunity for cost-effective and immediate reductions of carbon emissions.” (Stern Review, 2006) The Eliasch Review estimates that an annual investment of USD17 -33 billion is required to achieve a target of halving emissions from the global forestry sector by 2030.

Since 2005, a UN Framework Convention on Climate Change (UNFCCC) financial mechanism to reduce GHG emissions in the forestry sector has evolved from what was then known as "avoided deforestation", to become RED (Reducing Emissions from Deforestation) then REDD (plus Degradation) and now to REDD+ (also includes the sustainable management of forests and the enhancement of forest carbon stocks) which was officially agreed in Cancun in 2010.

Simply put, REDD+ is a form of a payments-for-environmental-services (PES) that would offer developing countries financial benefits for protecting their forests. The financing of REDD+ is still being worked out, but payments are likely to come in the form of a combination of verified/ certified emission reductions and removals, (recognized in voluntary and/or compliance markets) and through performance based payments from public sources (e.g., Green Climate Fund, bilateral REDD+ funding), as well as other financing (such as taxes and levies and the re-direction of subsidies) and new market mechanisms.

Multifaceted

Over the last five years, REDD+ has grown increasingly broad and multifaceted in many unpredicted ways, according to Analysing REDD+: Challenges and Choices (CIFOR 2012). This is partly due to a lack of reliable long-term financing and the need to cater for huge diversity of interests, institutions, ideas and information. In addition, many of the first REDD+ projects were established with development funds and getting countries “ready” for REDD+ and ensuring projects are properly designed, funded and implemented has been slower and more complex than expected.

Many bilateral and multilateral initiatives are underway and there are now over 200 REDD+ projects running in around 50 countries. As an example,  more than 40 developing countries have joined the World Bank-hosted Forest Carbon Partnership Facility (FCPF) and the UN REDD-programme in order to exchange experiences, tap into expertise and receive financial support to develop national REDD+ plans and strategies. Bilaterally, the Norwegian Government has pledged USD2.8 billion to support the development of REDD+ and emissions reductions interventions in several countries, including Indonesia, Guyana and Brazil.

Case Study: One interesting example of a REDD+ project is in Nepal where the government, in collaboration with a range of organizations, has initiated a pilot Forest Carbon Trust Fund. This is designed to involve local communities in monitor the carbon in their forests, providing the necessary training for them to do so and giving them the opportunity to claim reward for enhanced carbon capture. The project, financed by the Norwegian Agency for Development Co-operation under the Climate and Forest Initiative, covers over 10,000 hectares of community managed forest and has an outreach of over 18,000 households with over 90,000 forest-dependent people. Show full page 1 2 3 next › last » Related Content Bonds key to forest conservation and climate FSI coalition warns cost of failing to protect forests is huge Incentive design key to cut Indonesia forest emissions Strong support for natural capital accounting at Rio+20 Comments Post new comment Subject: Comment: * Input format Filtered HTML Web page addresses and e-mail addresses turn into links automatically. Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <p> <span> <img> <div> <pp_img> <pp_media> <h2> <h3> <h4> <h5> <h6> <br> <blockquote> <table> <tbody> <tr> <th> <td> Insert images and media with <pp_img> or <pp_media>. See formatting options for syntax. Full HTML Web page addresses and e-mail addresses turn into links automatically. Insert images and media with <pp_img> or <pp_media>. See formatting options for syntax. More information about formatting options Word verification: * (verify using audio) Type the characters you see in the picture above; if you can't read them, submit the form and a new image will be generated. Not case sensitive. Upcoming Events The 6th Deepwater Asia Congress, Indonesia Event Date: May 20, 2013 - May 22, 2013 Event Location: Jakarta, Indonesia Geothermal Power Asia Congress 2013 Event Date: May 21, 2013 - May 22, 2013 Event Location: Jakarta, Indonesia 2013 IHA World Congress on Advancing Sustainable Hydropower Event Date: May 21, 2013 - May 24, 2013 Event Location: Kuching, Malaysia Geothermal Asia Congress 2013 Event Date: May 22, 2013 - May 23, 2013 Event Location: Jakarta, Indonesia All events... Post Your Event Supporting Organizations Reports & Resources UNEP Measuring progress – environmental goals and gaps Over the last few decades, a great number of environmental goals and objectives have been adopted and a few success stories can be told. World Energy Outlook 2012 The global energy map is changing in dramatic fashion, the International Energy Agency said as it launched the 2012 edition of the World Energy Outlook (WEO).     Turn Down The Heat This report by the World Bank spells out what the world would be like if it warmed by 4 degrees Celsius, which is what scientists are nearly unanimously predicting by the end of the century, without serious policy changes. CDP Asia ex-Japan Climate Change Report 2012   Companies in Asia reveal expectations that regulations that could lead to rising costs for reporting and reducing GHG emissions will also be the main sources of climate-related business opportunities. See all featured resources Most read Most viewed New CDM rules aimed at helping smaller countriesCities pushing forward in battle to mitigate climate changeCould air pollution block Hong Kong’s third runway?Cadmium contamination: where is the next vulnerable region?Bearing the standardNGOs unite to support HK Government conservation action ESG integration still finding its legs in IndiaThe prospects for aviation biofuelA look toward Durban from AsiaCounting environmental costPlanning for peak coal in ChinaMaking gains on the triple bottom line © 2013 CleanBiz Asia Ltd, All Rights Reserved