Presentation to U.S. AID REDD Roundtable REDD Programs

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Presentation to U.S. AID REDD RoundtableREDD
Programs Benefits SharingNovember 6, 2008Ben
VitaleManaging DirectorConservation Community
Carbon Fund
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• REDD Programs Benefits Sharing
• CIs Experiences and REDD Support to Date
• National Readiness and Project-level Actions
• Benefits Sharing Madagascar Cambodia
• Key Take Away Messages

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CIs Carbon Project Experience

• Largest portfolio of high biodiversity
  forest-carbon projects
• gt 25 carbon projects in development in 14
  countries
• Producing gt 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 and partners launched largest portfolio of
projects
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• 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

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Capacity Building and Community Engagement Take
Time

• 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

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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)

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Madagascar 36 defor reduction 00-05
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
420,000 ha 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
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MadagascarExample 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

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Cambodia Conservation Incentive Agreement
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Incentive AgreementsChumnoab, 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

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Incentive AgreementsChumnoab, 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

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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