Governance and REDDGovernance and REDD

Governance failuresGovernance failures

An illnessAn illness

Governance failuresGovernance failures Weak institutionsWeak institutions

Inconsistent & complicated laws Inconsistent & complicated laws – problems with land tenure and regulationproblems with land tenure and regulation

Poor forest law enforcementPoor forest law enforcement

CorruptionCorruption

Lack of transparencyLack of transparency

Governance in 37 REDD Governance in 37 REDD CountriesCountries

80% of REDD readiness countries 80% of REDD readiness countries selected by FCPF & UN-REDD rank in selected by FCPF & UN-REDD rank in bottom half of World Bank survey of bottom half of World Bank survey of governance in 212 countries governance in 212 countries (indicators (indicators on "control of corruption" on "control of corruption" and "voice and accountability“)and "voice and accountability“)

Nearly 30% are in the lowest quarterNearly 30% are in the lowest quarter

REDD CountriesREDD Countries

DemandDemand

Another illnessAnother illness

Linked to governanceLinked to governance

The link The link

Poor governance + excessive Poor governance + excessive demanddemand

= Illegal and unsustainable = Illegal and unsustainable timber tradetimber trade

Imports of illegal timber Imports of illegal timber risingrising

Trends in imports of illegal timber to the USA & EU from Trends in imports of illegal timber to the USA & EU from selected countries 1998 - 2006selected countries 1998 - 2006

World supply of Illegal Timber exports (2007)

Source: based on importing country declarations adjusted for legality as assessed in http://www.globaltimber.org.uk/IllegalTimberPercentages.doc

5 million m3 RWE 1 million m3 RWE

Estimated roundwood equivalent volume of Illegal Timber directly

proportional to area of disc

Brazil

Other South America

(includes pulp and paper)

PNG & SI

Congo Basin

East Africa

West Africa

Eastern Russia

Western Russia

China

Indo-China

Malaysia

IndonesiaPNG &

SI

Source: based on estimates from http://www.globaltimber.org.uk/IllegalTimberPercentages.doc except Colombia (World Bank estimate).

PNG & SI

Malaysia

Indonesia

Illegal Legal

Ghana

Rep. of Congo

Cameroon

Gabon

DRC

Tanzania

Laos

Bolivia

IndonesiaPapua New Guinea

Guyana

Peru

Paraguay

Colombia

Vietnam

Estimated proportion of illegal timber exports from REDD candidate countries in 2007.

Lost revenuesLost revenues

Lost revenues from trade in illegally Lost revenues from trade in illegally harvested timber are in the range of harvested timber are in the range of US$11 billion a yearUS$11 billion a year

What are the solutions?What are the solutions?

Demand-sideDemand-side

Strong, uniform and coherent Strong, uniform and coherent demand- side measuresdemand- side measures

– US Lacey ActUS Lacey Act– EU FLEGT – voluntary partnershipsEU FLEGT – voluntary partnerships

Solutions - governanceSolutions - governance

Incentivise good governance Incentivise good governance

Enhance transparencyEnhance transparency

Strengthen law enforcementStrengthen law enforcement

Role of Civil SocietyRole of Civil Society

Watchdog – in an official or unofficial Watchdog – in an official or unofficial capacitycapacity

Engage in independent monitoring and Engage in independent monitoring and verificationverification

Enhance transparency and accountability Enhance transparency and accountability in forest sectorin forest sector

How?How?

What Global Witness is doing and how What Global Witness is doing and how it is relevant to REDDit is relevant to REDD

www.globalwitness.orgwww.globalwitness.org

WatchdogWatchdog

Expose Expose – illegal and unsustainable tradeillegal and unsustainable trade– corruptioncorruption

Through Through – investigation on the groundinvestigation on the ground

Transparency and Transparency and AccountabilityAccountability

Independent Forest MonitoringIndependent Forest Monitoring

Governance and Transparency Fund Governance and Transparency Fund projectproject

IFMIFMIndependent Forest MonitoringIndependent Forest Monitoring

Monitors governance – established Monitors governance – established over 10 yearsover 10 years

Bridges gap between State and CS in Bridges gap between State and CS in regulation and enforcementregulation and enforcement

Monitor’s functionsMonitor’s functions

Based on contract between forest Based on contract between forest authority and IM organisationauthority and IM organisation incorporating minimum standards

Monitors observes performance of officials in:– Detecting– reporting and – suppressing illegal activity

In the forestIn the forest

And in the officeAnd in the office

ReportingReporting

Regular reports go to Reporting Regular reports go to Reporting PanelPanel– peer reviews conclusions and peer reviews conclusions and

recommendationsrecommendations

Freedom to publishFreedom to publish– Cannot change evidence baseCannot change evidence base

Where has GW established Where has GW established IFM?IFM?

CambodiaCambodia CameroonCameroon HondurasHonduras NicaraguaNicaragua

Benefits of IFMBenefits of IFM

Enhance transparency Enhance transparency

Increase quality and quantity of information Increase quality and quantity of information on the forest sector e.g. Cameroon on the forest sector e.g. Cameroon published lists of infractors & legal casespublished lists of infractors & legal cases

Improved law enforcementImproved law enforcement

Increase in revenueIncrease in revenue

Cost of IFMCost 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

Governance and Transparency Governance and Transparency FundFund

Building civil society capacity in Building civil society capacity in developing countries to enhance developing countries to enhance transparency in forest sectortransparency in forest sector

8 pilot countries, 8 pilot countries, ₤₤3.7 million over 4 years3.7 million over 4 years

– Identify partner NGO and provide grantsIdentify partner NGO and provide grants– Develop forest transparency report cardsDevelop forest transparency report cards– Build capacity so CSOs can undertake IFM and Build capacity so CSOs can undertake IFM and

advocacy themselvesadvocacy themselves

Relevance to REDDRelevance to REDD

IFM could be adapted for use in IFM could be adapted for use in independent national monitoring and independent national monitoring and verification in REDDverification in REDD

Transparency report cards could be Transparency report cards could be used to assess progress with used to assess progress with governancegovernance

ECA Policy recommendations ECA Policy recommendations on Governanceon Governance

REDD funding must be linked to REDD funding must be linked to governance performancegovernance performance– law reform & enforcementlaw reform & enforcement– land tenure clarificationland tenure clarification

Independent national monitoring and Independent national monitoring and verification is essentialverification is essential

Multi-stakeholder national REDD groups Multi-stakeholder national REDD groups must include representatives of IPs, local must include representatives of IPs, local communities and CSOscommunities and CSOs

Final recommendationFinal recommendationGood fiscal governanceGood fiscal governance

or REDD funds will go the way of logging revenuesor REDD funds will go the way of logging revenues