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REDD Programs & Benefits Sharing CI’s Experiences and REDD Support to Date

Presentation to U.S. AID REDD Roundtable REDD Programs & Benefits Sharing November 6, 2008 Ben Vitale Managing Director Conservation & Community Carbon Fund. REDD Programs & Benefits Sharing CI’s Experiences and REDD Support to Date National Readiness and Project-level Actions

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REDD Programs & Benefits Sharing CI’s Experiences and REDD Support to Date

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  1. Presentation to U.S. AID REDD RoundtableREDD Programs & Benefits SharingNovember 6, 2008Ben VitaleManaging DirectorConservation & Community Carbon Fund

  2. REDD Programs & Benefits Sharing • CI’s Experiences and REDD Support to Date • National Readiness and Project-level Actions • Benefits Sharing: Madagascar & Cambodia • Key Take Away Messages

  3. Largest portfolio of high biodiversity forest-carbon projects • > 25 carbon projects in development in 14 countries • Producing > 90 million tCO2 over 30 years • CI and partners can also tap into a much larger project pipeline of the Global Conservation Fund and Conservation Stewards portfolios CI’s Carbon Project Experience CI and partners launched largest portfolio of projects

  4. 7 Years of Carbon Project Experience • Delivers Highest Biodiversity and Community Outcomes • 1st CDM Approved Small-scale Forest Methodology • 7th CDM Approved Forest Methodology • 1st Climate, Community and Biodiversity (CCB) Certification • 1st methodology for reducing emissions from deforestation and degradation with the World Bank • $15M in funding provided by diverse partners

  5. Strengthening local enabling conditions takes 24-36 months particularly working with governments, communities, and indigenous people. • Forest carbon project designs require stakeholder engagement well beyond other carbon project asset classes. This is especially unique to forest-carbon projects. • Globally, limited funding is available for these activities Capacity Building and Community Engagement Take Time

  6. National Readiness and Project-level Actions • Provided advisory services to government agencies on REDD since 2003 including 7 World Bank FCPF RPINs (Madagascar, Liberia, Guyana, Suriname, etc.) • Technical support on innovative methodologies nationally and with infrastructure links to REDD (e.g. IDB road improvement planning in Guyana) • Complete wall-to-wall deforestation monitoring and training (e.g. Madagascar, Bolivia, Liberia, etc.) • Establishment of demonstration activities and financing vehicles (e.g. protected areas, trust funds, voluntary carbon market…)

  7. 1. Makira Forest Carbon Project (2002) Forest Conservation: 400,000 ha Carbon benefit: Up to 9 Mt CO2 Next step: National level 2. Mantadia-Zahamena (2004) Forest Conservation: 420,000ha Reforestation: 3,000 ha Livelihoods: 2,000 ha Carbon benefit: ~10 Mt CO2 3. Fandriana-Vondrozo (2008) Forest Conservation: app. 240,000 ha Reforestation: approx. 2,000 ha Carbon benefit: ~10 Mt CO2 Madagascar: 36% defor reduction 00-05

  8. Madagascar:Example Benefits Sharing • Project start-up costs over $1M subsidized by donors • Project costs are front-loaded so early benefits sharing is lower • 50% was based on prior forest-based revenue sharing and requires more analysis based on management and opportunity costs • Allocations of national incentives to projects requires analysis because needs and costs are highly variable across regions

  9. Cardamoms Protected Forest 400,000 hectares Cambodia: Conservation Incentive Agreement

  10. Incentive Agreements:Chumnoab, Cambodia • 73 families need to slash & burn 40 hectares/year • Hunting (Pangolins, Sun bears, tigers, etc) • By-catch of Siamese crocodiles (pop. 200) • Communities desire: • rice production areas/increased food security • teachers who stay in school full scholarly years • income or economic opportunities

  11. Incentive Agreements:Chumnoab, Cambodia • Results: 20K hectares of forest protected (scale to 100K ha) • 10% of the global crocodile population hatched in year 1 • Community engaged in conservation activities • Increased rice production 4x • Teachers in schools year round, buffalos and tools for agriculture were supplied • Agreement requires $100-150K per year to protect the forest

  12. Key Take Away Messages • Dedicated funding for capacity at both the national and local levels for forestry projects must come earlier • Scaling-up projects that include REDD area designations, incentive agreements, and financing instruments (e.g. trust funds) are required for equitable distribution of benefits • National REDD Readiness frameworks must include provisions for distribution of incentives based on varied biodiversity and socio-economic conditions • Market and non-market incentives must be high enough to cover community incentives/opportunity costs, management and monitoring costs, and transaction costs

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