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Addressing Governance Failures in REDD: Enhancing Transparency and Accountability in Forestry

Governance failures in REDD countries significantly hinder the effectiveness of initiatives aimed at reducing deforestation and promoting sustainable forestry. With weak institutions, poor law enforcement, and rampant corruption, approximately 80% of REDD-readiness countries are ranked in the bottom half of global governance indices. This leads to illegal timber trade, costing an estimated $11 billion annually. Solutions require robust demand-side measures, incentivizing good governance, enhancing transparency, and empowering civil society for independent monitoring. The Governance and Transparency Fund aims to strengthen capacities in developing countries to foster accountability.

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Addressing Governance Failures in REDD: Enhancing Transparency and Accountability in Forestry

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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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