Forest Carbon Partnership Facility

1. Forest Carbon Partnership Facility R-PP Preparation DRIVERS OF DEFORESTATION AND DEGRADATION August, 13 – 14, 2009

2. ADDRESSING DRIVERS OF DEFORESTATION AND DEGRADATION • Rapid land use changes are due to both Direct and Underlying/Root causes with significant impact on forest ecosystems loss & degradation • Importance of identifying, understanding & prioritizing Direct and Underlying causes: • Direct and their Underlying causes are the key elements for shaping a National REDD Strategy • Indentifying and assessing them is the cornerstone for designing interventions to reduce pressure on forests • Crucial for selecting REDD options, planning interventions and deploying resources to reduce deforestation & degradation

3. UNDERLYING CAUSES Unsound Policy & Institutional Factors Unsound Economic & Market Factors Landlessness & Unclear Allocation Rights Demographic Factors Other Socio Economic & Cultural Factors Expansion of Agricultural and Pasture Frontier Unsound Infrastructure Development Forest Fires Forest Products Extraction Extractive Industry Activities DIRECT or PROXIMATE CAUSES UNDERLYING AND DIRECT CAUSES 3

4. REDD Strategy should address systematically the Drivers of deforestation and degradation (e.g. case: R-PPs needed more focus, at least in the preliminary identification & assessment of D&U causes that would allow improving R-PP design & preparation of ToRs) • Important to link Direct causes with the respective Underlying causes to ensure effective REDD options to reduce emissions(e.g. case: Unsound past experiences in selecting interventions and priority areas to prevent forest loss, ICDP cases) ADDRESSING DIRECT & UNDERLYING CAUSES OF DEFORESTATION AND DEGRADATION 4

5. Result from structural socio-economic political and Institutional conditions that generate impact on forest cover and land use at local, national and also at international level (important for crafting REDD options) • Expressed in direct causes that demand comprehensive interventions using approaches including among others, policy & legal reforms, and enforcement • Demand political will & good governance UNDERSTANDING UNDERLYING CAUSES 5

6. Underlying or root causes are diverse: • Unsound policy and institutional factors (e.g. perverse economic/resource use incentives; forest fees & permits payments vs. agriculture; bio-fuel in Amazonian countries) • Unsound Economic & market factors (case: Mahogany illegal trade case resulting in degradation) • Landlessness & Unclear allocation rights (e.g. case subsistence farming, sifting agriculture) • Demographic factors (e.g. case: unplanned immigration into forestland areas in Andean countries) • Other socio economic & cultural factors (unsound agricultural production practices & resource use e.g. case: man made forest fires & some tillage practices) UNDERSTANDING UNDERLYING CAUSES 6

7. Involve immediate human land use activities that change forest cover in local areas • Are direct cause of forest loss or disturbance usually linked to an underlying cause, thus critical for REDD strategy • Are the result of different complex relationship that differ from place to place & will demand different REDD options. IDENTIFYING DIRECT CAUSES OF DEFORESTATION & DEGRADATION 7

8. Expansion of agricultural and pasture frontier(e.g. case: clearing land for cash crops (Soybean, palm oil etc.), cattle ranching, sugar cane, subsistence farming; each of them may need different options for REDD Strategy) • Unsound infrastructure development(Hydroelectric or irrigation dams, road construction e.g. case in the Amazonian region, challenges for REDD) • Forest fires(e.g. Challenges for tropical forest countries) • Forest products extraction(e.g. unsustainable firewood extraction linked to poverty, illegal logging, etc.) • Extractive industry activities(e.g. case oil , gas & mining, river bank mining in Amazonian countries) IDENTIFYING DIRECT CAUSES OF DEFORESTATION & DEGRADATION 8

9. GOVERNANCE A KEY BUILDING BLOCK FOR REDD • FOREST & LAND INSTITUTIONS, AND CONFLICT MANAGEMENT • TRANSPARENCY, ACCOUNTABILITY & PUBLIC PARTICIPATION • QUALITY OF FOREST & LAND ADMINISTRATION • LEGISLATION AND RULE OF LAW • ECONOMIC EQUITY, INCENTIVES & SUSTAINABILITY

10. GOVERNANCE A KEY BUILDING BLOCK FOR REDD • FOREST & LAND INSTITUTIONS AND CONFLICT MANAGEMENT • Stability of forest & land administration agencies; presence on the ground: capacity for timely response; based on public administration professionalism; decision making based on legislation and customary rules (e.g. case: recent land legislation changes in Latin America) • Capacity for conflict resolution on forests & land issues • TRANSPARENCY, ACCOUNTABILITY AND PUBLIC PARTICIPATION • Public information, stakeholder participation and consultation on forest and land policy and legislation development; and on law enforcement; (case: REDD working group participation) • Accountability to stakeholders (Stakeholder policy dialogue round tables) • Decentralization & devolution of responsibility to local communities • QUALITY OF FOREST & LAND ADMINISTRATION • Willingness to address forest and land issues • Capacity & effectiveness of forest & land agencies to implement and enforce laws • Control of corruption

11. GOVERNANCE A KEY BUILDING BLOCK FOR REDD • LEGISLATION AND RULE OF LAW • Quality of forest & land legislation • Quality of forest and land allocations • Property and tenure rights recognized/honored and enforced • Quality of law enforcement • ECONOMIC EQUITY, INCENTIVES AND SUSTAINABILITY • Right incentives for law compliance & sustainable forest and land use, and penalties for violations • Socially sound & fair terms of trade for forest & agricultural products • Strong market institutions • Appropriate user fees and taxes