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Governance and REDD

Governance and REDD. Governance failures. An illness. Governance failures. Weak institutions Inconsistent & complicated laws problems with land tenure and regulation Poor forest law enforcement Corruption Lack of transparency. Governance in 37 REDD Countries.

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Governance and REDD

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  1. Governance and REDD

  2. Governance failures An illness

  3. Governance failures • Weak institutions • Inconsistent & complicated laws • problems with land tenure and regulation • Poor forest law enforcement • Corruption • Lack of transparency

  4. Governance in 37 REDD Countries • 80% of REDD readiness countries selected by FCPF & UN-REDD rank in bottom half of World Bank survey of governance in 212 countries (indicators on "control of corruption" and "voice and accountability“) • Nearly 30% are in the lowest quarter

  5. REDD Countries

  6. Demand Another illness Linked to governance

  7. The link Poor governance + excessive demand = Illegal and unsustainable timber trade

  8. Imports of illegal timber rising Trends in imports of illegal timber to the USA & EU from selected countries 1998 - 2006

  9. Estimated roundwood equivalent volume of Illegal Timber directly proportional to area of disc 1 million m3 RWE 5 million m3 RWE World supply of Illegal Timber exports (2007) (includes pulp and paper) Western Russia Eastern Russia China Indo-China Malaysia West Africa Indonesia PNG & SI Other South America Congo Basin East Africa PNG & SI Brazil Source: based on importing country declarations adjusted for legality as assessed in http://www.globaltimber.org.uk/IllegalTimberPercentages.doc

  10. Estimated proportion of illegal timber exports from REDD candidate countries in 2007. Vietnam Ghana Cameroon Laos Guyana DRC Colombia Malaysia Papua New Guinea Indonesia Indonesia PNG & SI Tanzania Gabon Peru Rep. of Congo Bolivia Legal Illegal Paraguay Source: based on estimates from http://www.globaltimber.org.uk/IllegalTimberPercentages.doc except Colombia (World Bank estimate).

  11. Lost revenues • Lost revenues from trade in illegally harvested timber are in the range of US$11 billion a year

  12. What are the solutions? Demand-side • Strong, uniform and coherent demand- side measures • US Lacey Act • EU FLEGT – voluntary partnerships

  13. Solutions - governance • Incentivise good governance • Enhance transparency • Strengthen law enforcement

  14. Role of Civil Society • Watchdog – in an official or unofficial capacity • Engage in independent monitoring and verification • Enhance transparency and accountability in forest sector

  15. How? What Global Witness is doing and how it is relevant to REDD www.globalwitness.org

  16. Watchdog • Expose • illegal and unsustainable trade • corruption • Through • investigation on the ground

  17. Transparency and Accountability • Independent Forest Monitoring • Governance and Transparency Fund project

  18. IFMIndependent Forest Monitoring • Monitors governance – established over 10 years • Bridges gap between State and CS in regulation and enforcement

  19. Monitor’s functions • Based on contract between forest authority and IM organisation incorporating minimum standards • Monitors observes performance of officials in: • Detecting • reporting and • suppressing illegal activity

  20. In the forest

  21. And in the office

  22. Reporting • Regular reports go to Reporting Panel • peer reviews conclusions and recommendations • Freedom to publish • Cannot change evidence base

  23. Where has GW established IFM? • Cambodia • Cameroon • Honduras • Nicaragua

  24. Benefits of IFM • Enhance transparency • Increase quality and quantity of information on the forest sector e.g. Cameroon published lists of infractors & legal cases • Improved law enforcement • Increase in revenue

  25. Cost of IFM • Can pay for itself • US$3.5 million is enough to fund an international provider of IFM in Cameroon for seven years • IFM led to an increase in revenue. Fines of US$2,600 - US$3.5 million were brought by the forest authority against individual infractors

  26. Governance and Transparency Fund • Building civil society capacity in developing countries to enhance transparency in forest sector • 8 pilot countries, ₤3.7 million over 4 years • Identify partner NGO and provide grants • Develop forest transparency report cards • Build capacity so CSOs can undertake IFM and advocacy themselves

  27. Relevance to REDD • IFM could be adapted for use in independent national monitoring and verification in REDD • Transparency report cards could be used to assess progress with governance

  28. ECA Policy recommendations on Governance • REDD funding must be linked to governance performance • law reform & enforcement • land tenure clarification • Independent national monitoring and verification is essential • Multi-stakeholder national REDD groups must include representatives of IPs, local communities and CSOs

  29. Final recommendationGood fiscal governance or REDD funds will go the way of logging revenues

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