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Ranchi 31 July 2014 Jagdish Kishwan Chief Advisor, Policy Wildlife Trust of India

Jharkhand Forest Department and UNDP Capacity Building Workshop on Climate Change and Adaptation Forest Carbon Financing- REDD+. Ranchi 31 July 2014 Jagdish Kishwan Chief Advisor, Policy Wildlife Trust of India Former Chief Negotiator for REDD+, Government of India

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Ranchi 31 July 2014 Jagdish Kishwan Chief Advisor, Policy Wildlife Trust of India

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  1. Jharkhand Forest Department and UNDPCapacity Building Workshop onClimate Change and AdaptationForest Carbon Financing- REDD+ Ranchi 31 July 2014 Jagdish Kishwan Chief Advisor, Policy Wildlife Trust of India Former Chief Negotiator for REDD+, Government of India Former Director General, Indian Council of Forestry Research and Education and Former Chancellor FRI University

  2. Organization of Presentation Adaptation and mitigation challenges NAPCC and individual missions Financial requirement for NAPCC implementation REDD+ progress in UNFCCC COPs REDD+ financing options REDD+: future relevance and use for India

  3. Mitigation + Adaptation:Whose Responsibility? UNFCCC Countries (Annex 1 more than Non-Annex) National Government Industry Society Individual !!!!!!! Frugal lifestyle, use of CFL/LED, smart lights, no plastics, use of energy saving devices, renewables

  4. Main Issue: Climate Change • Development v/s emissions • Energy and environmental sustainability • Challenges • Finance • Regulation • Technology • Capacity • Market imperfections Source: Environmental and Energy Sustainability: An Approach for India: McKinsey & Company, August 2009

  5. Challenges of Mitigation and Adaptation Strategy and planning Money Technology Capacity Priority Intent

  6. Forest a Versatile Sector Forests goods and services sustain a sizable population of rural communities Source as well as sink of atmospheric CO2 Forests get impacted by CC, in turn impacting LCs- livelihoods, health Need adaptation like living beings Potential to provide C money in addition to well known goods and services to LCs Multi-utility species providing traditional products like wood, timber, fodder, food preferred in afforestation and reforestation projects globally

  7. Forest a Versatile Sector Multi-utility Species Bamboo Preferred in afforestation projects in Africa:- Bamboos in plantations in Hula District, Ethiopia, Giant Timber Bamboos in Hurungwe District, Zimbabwe, Bamboo Bicycles in Uganda Central America:- Central American Reforestation Project: Qualified Verified C Standard (VCS) and Climate, Community and Biodiversity Alliance (CCBA) Gold Certification

  8. Low Carbon Strategies for Inclusive GrowthPlanning Commission, April 2014 Energy efficiency Households, Buildings, Industry Transport Power Carbon sequestration (Forest sector) Green India Mission (50-60 mtCO2eq) PA management (47 mtCO2eq) Increase in FTC in 1.7 lakh FF villages (12.5 mtCO2eq) Improved wood burning cook-stoves (52.8mtCO2eq) Replacement of domestic and office metal and plastic furniture with wooden furniture (3 mtCO2eq) C sequestration measures in forest sector alone capable of reducing emission intensity of GDP by 5.2% by 2030

  9. NATIONAL ACTION PLAN ON CLIMATE CHANGE(Released by PM in June 2008) • Action Plan comprises 8 Missions • National Solar Mission now JNNSM • National Mission for Enhanced Energy Efficiency • National Mission on Sustainable Habitat • National Water Mission • National Mission for Sustaining Himalayan Ecosystem • National Mission for A Green India (GIM) • National Mission for Sustainable Agriculture • National Mission on Strategic Knowledge for Climate Change

  10. 6. National Mission for a “Green India” (GIM)(Approved by PM’s Climate Change Council) Goals include afforestation of 10 million hectares of degraded forest lands and expanding forest cover from 23% to 33% of India’s landmass

  11. GIM aims at addressing climate change by enhancing carbon sinks in sustainably managed forests and other ecosystems enhancing resilience and ability of vulnerable species and ecosystems to adapt to changing climate enabling adaptation of forest dependant local communities in face of climatic variability

  12. India’s forests are major sink of CO2 Our estimates show that the annual CO2 removals by India’s forest and tree cover is enough to neutralize 11.25 % of India’s total GHG emissions This is equivalent to offsetting 100% emissions from all energy use in residential and transport sectors; or 40% of total emissions from agricultural sector. India’s forest and tree cover a major mitigation resource serving India and the world (Kishwan et al, 2009) Carbon Capture potential of our forests

  13. Implementation of NAPCCFinancial Requirements • Preliminary estimates of Nodal Ministries suggest total requirement of Rs. 2,30,000 crore to implement 8 Missions • Impossible to mobilize through budgetary resources alone Source: Planning Commission (2013)

  14. Implementation of NAPCC:Financial Requirements (12 FYP) Source: Planning Commission (2013)

  15. Financial Requirements for NAPCC+ Other Adaptation Measures • Other adaptation measures for health, housing, migration • + Rs 4,00,000 crore may be required • Impossible to provide through budgetary route • Innovative means- market, taxation- levy, incentives and rebate

  16. Financial Requirements for NAPCC+ Other Adaptation Measures Innovative means of financing Forest Sector • CDM • REDD+

  17. REDD+Progress of financing

  18. COP-16 Cancun (2010): REDD+ Decisions • 5 REDD+ activities defined and agreed • RELs/RLs agreed as benchmarks • 3 progressives phases of implementation recognized- preparatory, demonstration, results-based actions • Financing options wide open, no agreement or further movement

  19. COP-17 Durban (2011): REDD+ Decisions • Safeguards for rights of IPs/LCs and conservation of natural forests agreed • Agreement on construction of RELs/RLs • No agreement on National Forest Monitoring Systems and MRV, left for discussions at COP 18 (Doha) • Agreement to continue work on financial options including public, private, market, non-market, fund-based mechanisms

  20. COP-18 Doha (2012) Forestry DecisionsNon-Carbon benefits Agreed on a work programme for 2013 to address: (a) Ways and means to transfer payments for results-based actions; (b) Ways to incentivize non-carbon benefits; Also to initiate work on methodological issues related to non-carbon benefitsresulting from implementation of REDD+ activities

  21. COP-19 Warsaw (2013): “REDD+ COP” REDD+ Decisions Landmark development on financing of REDD+ Negotiators at COP19 in Warsaw agreed on seven decisions relating to REDD+: “Warsaw Framework for REDD Plus”

  22. 1. Results-based finance for full implementation of activities in Decision 1/CP.16, Paragraph 70 (REDD+) (Decision 9/CP.19) Warsaw Framework for REDD+ • 2. Coordination of support for implementation of activities in relation to mitigation actions in forest sector by developing countries, including institutional arrangements (10/CP.19) • Methodological guidance for activities relating to REDD+ • 2. Measuring, Reporting and Verification (MRV) of REDD + activities (14/CP.19) • 3. Technical assessment of Reference Emission levels/Reference Levels submitted by Parties (13/CP.19) • 1. National forest monitoring systems (11/CP.19) • 4. Timing and frequency of submission of summary of information on how safeguards are addressed and respected (12/CP.19) 5. Addressing drivers of deforestation and forest degradation (15/CP.19) Source: VRS Rawat, ICFRE

  23. Summary of Warsaw Framework for REDD+

  24. Summary of Warsaw Framework for REDD+

  25. Summary of Warsaw Framework for REDD+

  26. Summary of Warsaw Framework for REDD+

  27. Summary of Warsaw Framework for REDD+

  28. Summary of Warsaw Framework for REDD+

  29. Summary of Warsaw Framework for REDD+

  30. SBSTA 40, REDD+ Conclusions Bonn, June 2014 • Methodological guidance for REDD+ (carbon) concluded in Warsaw • Non-market based financing: SBSTA 41 to continue development of methodological guidance for non-market based approaches • Non-carbon benefits: SBSTA 41 to continue consideration of methodological issues related to non-carbon benefits Bolivia through LMGC insisting on replacement of REDD+ with JMA

  31. What should India be doing? Develop a REDD strategy or action plan for REDD plus implementation Developing safeguards and system of Information flow on safeguards Need for capacity building Pilot/ Demonstration Projects on REDD plus Work on developing Reference Emission Levels/Reference Level for REDD plus Developing a transparent national system of MRV Reference Document for REDD+ in India

  32. REDD+ Finance Required to support 3 Phases of REDD+ Implementation • Preparatory • Demonstration • Results-based actions

  33. REDD+ Finance: Requirement Preparatory Phase • Small amount for policy development and capacity building • Internal sources • International organizations • UN-REDD, FCPF, GIZ, USAID

  34. REDD+ Finance: Requirement Demonstration Phase • Small to moderate amount for execution of pilots or demo projects • Internal sources (Schemes, State Budgets) • Bilateral arrangements (Norway, Brazil, India) • Measurement, carbon estimation • International organizations • UN-REDD, FCPF, GIZ, USAID • Voluntary market (Gold Standard, Carbon Fix, Forest Stewardship Council)

  35. REDD+ Finance: Requirement Results-based Phase • Huge amounts required for creating • alternatives to check drivers of deforestation and forest degradation • national forest monitoring systems • technical staff for REDD+ MRV, SIS • financial REDD+ incentives • supporting infrastructure

  36. REDD+ Finance: Solutions Results-based Phase: Sources • External • UNFCCC, bilateral (Norway) • Internal • CAMPA • Performance Achieve and Trade Scheme • Private sector • CSR

  37. REDD+ Finance: Achievement Preparatory+Demonstration Phase • Forest Plus Project- USAID • Garo Hills Green Spine Project- IUCN-WLT • 6 TERI Projects • Voluntary market

  38. REDD+ Finance: Achievement Results-based Phase ?

  39. REDD+ Finance: Reality Options for India post COP 19 • UNFCCC finance unlikely to be available in near future • Mobilize resources other than from UNFCCC • External • Multilateral- WB, GEF, ADB, EU • Bilateral- JICA, USAID, GTZ, Norway • Project level- USAID, FCPF, UN-REDD, Voluntary Market • Internal • Finance Commission Awards, ACA (PC)

  40. Future: Multi-benefit Innovative Voluntary ProjectsEssentials Innovation and partnership Combine carbon benefits and other possible benefits like health How to commodify health benefits MRV of health benefits/credits on same lines as VERs/CERs Create market for health credits Possibility for water, biodiversity, food, environmental credits??? Integration of C service and non-C benefits!!

  41. REDD+ Finance: Conclusion • UNFCCC financing to take time, uncertainty of quantum • Countries need to go for alternative options • Internal and bilateral financing good options • Private sector a good source

  42. Future importance of REDD+ for India • 2015 new climate change agreement in UNFCCC • Annex I and Non-Annex countries to have commitments post 2020 • India too to shoulder commitments; e.g., reduction in EI by 20-25% by 2025 • REDD+ potential option for meeting EI commitment (>5% REDD+ own contribution) • Finances: GIM, emitters pay principle, PAT expanded to include A&R as admissible action • Future: REDD+ experience leading to realization of blue carbon sequestration potential

  43. Thanks for your attention

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