Carbon Finance – Global perspective
Opportunities under JICA Assisted
Forest and NRM Projects
Arun K. Bansal, IFS (retd.)
Former Addl. DG Forests, India
7th Annual National Workshop on
” Sustainable Forest Management through Community Partnership”
UPPFMPAP (JICA Assisted)
15th -16th April 2015, Lucknow, Uttar Pradesh, India
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Carbon Finance
• Carbon finance has its genesis in the global concerns of GHG
emissions / climate change
– SPM IPCC 5th Assessment Report 2013 – in 2011 atmospheric concentrations of the
greenhouse gases CO2, CH4, and N2O 391 ppm11, 1803 ppb, and 324 ppb, and
exceeded the pre-industrial levels by about 40%, 150%, and 20%, respectively.
– Annual CO2 emissions from fossil fuel combustion and cement production were 9.5 Gt
C/yr in 2011 - 54% above the 1990 level & net CO2 emissions from anthropogenic land
use changes were 0.9 Gt C/yr (avg 2002 to 2011)
– Changes in many extreme weather and climate events have been observed since about
1950.
• Due to sheer size India is fifth largest emitter of GHGs though our per
capita emissions are lower than most developed countries.
• Carbon finance aims to act as an enabler for clean technologies.
• Carbon finance can be used to improve efficiency of polluting
industries and/or sequester GHGS through restoration of degraded
forests and establishing new forest areas.
CDM (AR) – REDD +
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Carbon Finance & Forests
Forests have an unrecognised potential in climate change and
development agenda:
Key areas identified by FAO in 2011 FRA:
1. Forest Industries – to maximise energy
efficiency, spur innovation & create a reliable
fibre supply and contribute to local livelihoods.
2. REDD+ along with poverty alleviation
3. Improvement in forest based livelihoods – noncash value of forests, SMEs and CBFM
4. Long term implications of forest carbon tenure
to be examined more critically to ensure
equitable benefit sharing and long term
management of local resources and rights.
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Net change in forest area by country, 2005–2010
(ha/year)
Source: FAO, Global Forest Resources Assessment 2010
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Forests & Climate change
• Forests cover 31% of the world’s land area 4 billion ha.
• 1.6 billion people depend on forests for their livelihood
• High rate of deforestation – 13 MHa/annum although
has come down from 16 MHa/annum during 1990s.
• Deforestation has important implications for CC. But
deforestation figures do not reflect degradation – which
causes loss of bio-diversity, soil erosion, and decline in
biomass.
• ~ 51.9% area under management plans aiming at SFM.
• Forests are both sinks (80% of carbon stored in land vegetation &
40% of carbon in soils) and sources (25% of GHG released are from
deforestation).
• Reduction of Deforestation and degradation and
increase in forest cover are important for CC mitigation.
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Uniqueness of India’s Forests
• India has 1210 million human population (2011 census) [population
density 382 per sq. km. up from 264 in 1991 & 325 in 2011]
• 464 million livestock (excluding Poultry).
• 21.8% population is below poverty line and more than 273 million
people depend n forests for livelihood & some for subsistence.
• Forest cover is 21.05% & Tree Outside Forests is 2.76% of GA.
• Per capita forest cover is 0.06 ha compared to global figure of 0.6 ha.
• In spite of vast pressure - forest cover has stabilized for last decade.
• But quality of forest cover? Forest in Green Wash area ~ 53/76 Mha.
• FSI’s assessment - carbon stock in India’s forests has increased by 592
Million tons between 1994 – 2004 (five carbon pools - Above Ground
Biomass, Below Ground Biomass, Dead wood, Litter, Soil Carbon), and
another 278 MT till 2011.
• Growing Stock ~58 cum/ha compared to global avg. 131 cum/ha.
• Carbon Stock is ~99 t/ha compared to global avg. 162 t/ha.
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REDD+ the evolution
• AR-CDM – since 1997 – as a component in CDM aiming at
creating tradable CER credits [through transfer of technology to
developing countries and diffusion of technology within host
countries as well as improvement in livelihoods in developing
countries] that can be used by industrialised countries to meet
their ER targets. – under KYOTO PROTOCOL.
• No forest cover since 1999, and plantation of commercial tree
species.
• Inclusion of tropical forest management was debated but given
up due to perceived difficulties in methodologies to establish
additionality and leakage – detrimental impacts out side project
areas attributable to Project Activities.
• Coalition of Rain Forests was established....
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REDD+ the evolution ....
• UNFCCC COP 11 at Montreal in 2005 – Papua New Guinea, and
Costa Rica jointly presented a proposal called “Reducing
Emissions from Deforestation in developing countries:
approaches to stimulate action – avoided deforestation
• COP 13 at Bali in 2007 – many developing countries including
India requested to include mechanisms for the Conservation
and SMF and Enhancement of forest carbon stock- REDD Plus.
• COP 15 at Copenhagen – it was agreed to use IPCC guidelines to
establish a forest monitoring system at National & Sub- National
levels using combination of RS and Ground based Inventory.
• COP 16 at Cancun – a basic framework for REDD Plus including
five targeted activities, phased approach, and consideration of
safeguards was proposed.
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• Warsaw Framework on REDD Plus at COP 19 in 2012.
What REDD + is?
• Reducing emissions from deforestation and forest degradation in
developing countries and the role of conservation, sustainable
management of forests and enhancement of forest carbon stock in
developing countries [with biodiversity conservations, ecosystem
service, recognising rights of indigenous (local) communities]
• A part of Climate Change mitigation strategy under UNFCCC – under
negotiation since 2005.
• An incentive based mechanism for promoting and rewarding forest
ecosystem conservation
• Funds ? by developed countries to developing countries – fund
based or result/performance based?
• Definition of Forest:
– Area > 0.05 ha, Tree height > 2m,
Crown density > 15%
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– Reference Document India (DEC 2014) Area >= 1 ha, Crown Density >= 10%
WARSAW framework for REDD +
• Results based finance to progress full implementation of activities
• Coordination of support for the implementation of mitigation action
in forest sector
• Modalities for national forest monitoring system
• Summary of information on safeguards
• Forest reference emission levels
• Modalities for Monitoring reporting and verifying
• Addressing drivers of degradation
Some pledges for int’l funds have been made ....
we need to look internal funding as well –
CAMPA – Externally Aided Projects .....
Voluntary Carbon Market
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Phases of REDD+ Implementation
Readiness
• Implementation of policies
• Implementation of strategies
• Capacity building
• Results based demo.
• Capacity building
• Policies and measures
• REDD+ strategy
• Monitoring system
Demonstration
Result based
REDD+
• Payments
(Performance-based)
• MRV
• Transaction Costs
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REDD Plus co-benefits (not just C)
Synergy
with
Adaptation
Needs
Economic
benefits
Conserving
biodiversity
Protecting
ecosystem
services
Community
benefits
•
•
•
•
•
Addressing drivers of degradation (causes & mitigation measures)
Social and Environmental safeguards
Non-carbon benefits – ecosystem services, improved governance
Capacity Development - communities, FD and other stakeholders
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Local communities to get benefits of addl. carbon
REDD+ Programmes
aiming REDD+ readiness
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UN-REDD
work areas
National REDD+ Strategies
MRV and Monitoring
REDD+ Governance
Transparent Equitable Accountable
Management of REDD+ Payments
Stakeholder Engagement
Multiple Benefits of forests and REDD+
REDD+ as Catalyst of Green Economy
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Forest Carbon Partnership Facility
• The World Bank acts as the Trustee for the REDD Readiness
Mechanism and the Carbon Fund, the Secretariat to the FCPF,
as well as implementer by providing technical inputs
• The FCPF is made up of REDD country participants, donor
participants, Carbon Fund donors, and observers.
• The FCPF - Readiness Fund supports tropical and sub-tropical
developing countries in preparing themselves to participate in
a future, large-scale, system of positive incentives for REDD+.
This includes:
Adopting national REDD+ strategies
Developing reference emission levels (RELs)
Designing measurement, reporting, and verification (MRV) systems
Setting up REDD+ national management arrangements
Including proper environmental and social safeguards
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major components of REDD +
• Addressing Drivers of degradation (analysis of DoD in
the local context and how are they being addressed)
• Rights of local people (what they are and how and to
what extent they are being met with?)
• Environmental and social safeguards (ecosystem
services, bio-diversity, quality of planting stock/plantations)
• Access & benefit sharing mechanism (how effectively
is it functioning?)
• Monitoring Reporting & Verification (base line data of
parameters to be measured, measurement methods,
community capacities to measure, reporting formats &
frequency, verification process – manuals etc.
• Conditions in Buffer zone ~10% area all around
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How is India placed for REDD + ?
• Long history of scientific forest management.
• Trained cadres of foresters
• System of Working Plans – revision every 10 years
with detailed assessment of results – recent National
working Plan code includes methodology for
assessment of carbon stock
• CBFM started in 1990 – involving ~ 1/3 of TFA
• Biennial Survey of Forest Resources using RS data
• Assessment of carbon stock (with SFR).
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India’s REDD+ Initiatives
 REDD+ incentives to be passed on to the communities
 National REDD Cell in the MOEF&CC
 National REDD+ Policy and Strategy - Zero draft
 Reference Document finalized Dec. 2014.
 Green India Mission – under NAPCC – focus on landscape
approach for increasing forest cover over 5 MHa, improve
quality of forest cover over another 5 MHa, increasing quality
of ecosystem services, good governance at village level, and
to provide services for improved monitoring at the outcome
level to avail benefits under REDD + implementation??
 FOREST Plus Project jointly with USAID
 4 landscapes in Himachal Pradesh, Madhya Pradesh,
Karnataka, and Sikkim
 Focus on SFM and improving livelihoods of FDC with
financial incentive as co-benefit
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REDD+ pilot studies in India - TERI
 As a part of Norwegian Framework Agreement with TERI
 National, State and Community level Consultations
 Six sites
o
o
o
o
o
o
Temperate forests (Uttarakhand)
Dry-Deciduous Mixed Forests (Uttar Pradesh)
Moist –Deciduous Forests (Madhya Pradesh)
Moist deciduous-Mixed forests (Odisha)
Mangrove Forests - Sundarbans (West Bengal)
Tropical Moist Deciduous forests (Nagaland
 2 in JICA assisted forestry projects
Odisha – Angul - Jereng Budhiapahad VSS 200 ha. +8%
UP – Renukote – Gardawa Forest Beat 77 ha. +71
 Although current carbon was measured based on five pools, change
was compared based on two pools,, namely AGB & BGB, by computing
them for baseline year, 1990, from NDVI through regression analysis.
(Ref: Assessment for Designing REDD Plus Project in India ,TERI, 2013)
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JICA assisted Forest Sector projects
&
REDD+
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Activities under JICA Forestry Projects
In tune with REDD+
Addressing drivers of degradation on
through comprehensive Micro Plans
for restoration of forests, forest plus
alternate livelihood program
(reducing sustenance dependence
on forests),
• Environmental and social safe
guards: CBFM under JFM or JFM+
• Communities getting benefits
• Capacity development of
communities
• Community involvement in
monitoring
• ....and much more
Forest Restoration (JICA)
Reducing Forest Degradation (REDD+)
two sides of the same coin
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Gaps JICA Forestry Projects in the context of REDD+
Micro Planning - Addressing Drivers of Degradation
(how contextual & comprehensive is the analysis and effectiveness of
mitigation measures - incl qualitative aspects, sustainable harvesting..)
Ensuring bio-diversity conservation
(biodiversity is getting conserved due to the nature of restoration works
but..
Carbon & Biodiversity measurement
(RS based monitoring of forest cover changes in treated forest areas)
Benefit sharing (provisions & actual practices)
Monitoring of impacts
(with reference initiation of works – no uniform benchmark even across
the project areas)
Leakages including health and vitality of neighbouring non-project areas
Community Capacity Development Additional focus areas
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Documentation?? Further improvement
Addl. actions for REDD + readiness under JICA
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•
•
•
Develop understanding of REDD+ through stakeholder workshops
– Mechanisms to assess forest condition & bio-diversity
– Ensuring safeguards for the communities
– Look at neighbouring forests - leakages
– Operational equitable benefit sharing mechanism
– Evolving sustainable harvest levels of selected NTFPs
Measuring carbon (five pools) – appropriate local volume tables
Capacity development (training) for use of GIS & carbon/biodiversity assessments
Evolve training modules/materials
Policy research: ownership?
JFM forests under resolutions – legal back up ?
Carbon rights as a new property ?
Valuation of ecosystem services and benefit sharing mechanism
Valuation of traditional knowledge
Can we create positive scope in JICA Forestry Projects
for facilitating REDD+ readiness, and REDD + type incentives to
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communities through pilots in each project
REDD + Pilots - JICA forest sector projects??
Create positive scope in JICA Forestry Projects for
Facilitating REDD+ readiness – analysing & filling in the gaps
REDD + type incentives to communities
Some activities may be across the project and some in selected
DMUs/FMUs
Focussed Capacity Development of FD and communities
through partnership with national/local organisations associated
with REDD+ readiness projects/activities
Costs: on two counts
- enhancing awareness & preparedness
- carbon linked incentives to JFMCs
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REDD+ Readiness benefits the communities
• Better understanding of emerging global initiative and getting
prepared to harness its financial incentives as and when they
become available
• Undertaking forest restoration activities more effectively by
addressing the gaps if any, with further capacity development and
proper documentation of interventions and results thereof –
effective & robust MRV
• Obtaining direct benefits of well managed forest through
sustainable harvests (NTFPs) – improved forest based livelihoods
• Benefitting from eco system services (enhanced agricultural
productivity, better health human and cattle...,) including PES?
• Community empowerment – equitable benefit sharing, working
towards local self reliance (through forest based & alternative
livelihood options) and green economy at local and sub-regional
levels
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• Become effective partners in national development
concluding
words.......
Carbon finance - REDD+ to be seen as an opportunity
to improve livelihoods of forest dependent communities &
Sustainable Forest Management
with financial incentives as co-benefit
[email protected]
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