Governance,RiskandREDD

RosalindReeve

ForestCampaignManager

www.globalwitness.org

Governancefailures•  Corrup8on

• Weakins8tu8onsandunclearlaws

•  Poor/non‐existentforestlawenforcement

•  Lackoftransparency&accountability

Forestlawenforcement2007ChathamHousecompara8vestudyofenforcement

‐fisheries,wildlife,forests,ozone‐

•  Forestlawenforcementemergedasweakest

•  In7REDDcountries:“thegeneralpicturethatemergesisoneofwidespreadcorrup>onundermininga?emptstostrengthenforestlawenforcement”

•  “…foundafewexamplesofsuccesses,oSenassociatedwithIndependentForestMonitoring(IFM)conductedbyNGOsorfollowingpublicitysurroundinginves8ga8onsbyNGOs.”

Asymptomofgovernancefailures

Environmentalcrime

Illegallogging

Es8matedpropor8onofillegalandlegal8mberproduc8onin15REDDcandidatecountriesin2007

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

Indonesia Papua New Guinea

Guyana

Peru

Paraguay

Colombia

Vietnam

Governancein37REDDCountriesinFCPF

•  WorldBanksurveyofgovernancein212countries–2indicators– controlofcorrup8on– voiceandaccountability

•  80%of37FCPFcountriesrankinboaomhalf

•  Nearly30%areinthelowestquarter

GovernanceinREDDCountries

COFACERiskRa8ngs •  Frenchexportcreditagency

•  Supportsbusinessopera8nginhighriskmarkets

•  Assessessovereignriskandassignsra8ngstocountries

Ra8ngs

•  2types– Countryra8ngs– Businessclimatera8ngs

•  7levels– A1,A2,A3,A4,B,C,D

REDDcountries‐BestandWorst •  A4

–  theins8tu8onalframeworkhasshortcomings– acceptablebutoccasionallyunstable[business]environments

•  D– ahigh‐riskpoli8calandeconomicsitua8on–  thebusinessenvironmentisverydifficult–  theins8tu8onalframeworkhasveryseriousweaknesses

REDDcountryra8ngs •  DRC•  Bolivia•  Ecuador•  Indonesia•  Panama•  PNG•  Paraguay•  Tanzania•  Vietnam•  Zambia•  Brazil•  Cambodia•  CAR•  Cameroon•  Congo‐Brazzaville•  Guyana•  Kenya•  Mexico

Businessclimate Countryra>ngD DC DC CC BA4 A4D BC CD BC BC CA4 A4D DD DC C D CD DC CA4 A4

RiskstoREDD

– Corrup8on

– CarbonCrime

• CarbonCowboysegBrazil,PNG

• OrganisedCrime

Carboncrime

Interpol •  "Alarmbellsareringing.[REDD]issimplytoobigtomonitor.Thepoten8alforcriminalityisvastandhasnotbeentakenintoaccountbythepeoplewhosetitup"

•  "Organisedcrimesyndicatesareeyeingthenascentforestcarbonmarket.IwillreporttothebankthatReddschemesareopentowideabuse”

PeterYounger,Interpol,Oct09

Interpol •  "Fraudcouldincludeclaimingcreditsforforeststhatdonotexistorwerenotprotectedorbylandgrabs.Itstartswithbriberyorin8mida8onofofficials,thenthere'sthreatsandviolenceagainstthosepeople.There'sforgeddocumentstoo.Carbontradingtranscendsborders.“

PeterYounger,Interpol,Oct2009

Howdowepreventthis?

MinimiseRiskofCarbonCrime •  Engageenforcementagenciesnow

•  Developmechanismsforcoopera8velawenforcementthattranscendborders

•  Engagecivilsociety–notjustconsult

•  Learnandapplylessonsfromaddressingfraudandcrimeinothersystemse.g.CITES,illegaltradeinODS

•  Effec8veMRVthatgoesbeyondcarbonandincludesIM‐REDD‐independentmonitoringofREDD

EngageEnforcementAgencies •  Interna8onal

–  Interpol–“IdonotseeanyinputfromanylawenforcementagencyinplanningREDD”

•  Regional–  Regionalenforcementen88es,e.g.LusakaAgreementTaskForce

•  Na8onal–  notjustforestlawenforcementofficers–policeandInterpolNCBs,prosecutors,judiciary

DevelopCoopera8veLawEnforcement

•  Interna>onallevel,e.g.MOUbetweenInterpolandUNFCCCSecretariat

•  Regionallevel–useexis8ngmechanisms,e.g.LATF,anddevelopnewonesmodeledonexis8ngnetworks

•  Na>onallevel–betweenna8onalagencies–police,forestauthori8es,climatefocalpoints,InterpolNCBs,prosecutors,judiciary

•  Na>onaltoInterna>onallevel–useexis8ngmechanisms,e.g.Interpolandtheirnetworks

EngageCivilSociety •  Consulta8onisnotenough

•  Needengagementindecision‐making

•  Breakdownbarriersbetweencivilsocietyandenforcementagencies–  InterpolEnvironmentalCrimeProgramme–openmee8ngsofWildlifeandPollu8onCrimesWorkingGroupswithNGOs

Learn&applylessons •  CITES–systemforfraudulentpermits

•  MontrealProtocol‐illegaltradeinODS–hadtoamendProtocolonceimplementa8onbegantobite

•  FLEGT

Effec8veMRV(notMRv) •  Broad–addresssafeguardsaswellascarbon

–  governance–  socialissuesandimpacts–  biodiversityandenvironmentalintegrity

•  Inclusive–allstakeholders•  Transparent•  Robustins8tu8ons•  Integrated–allthepartsfitandworktogether•  Feedbackloop–toinformREDDimplementa8on•  Incorporateindependentmonitoring–IM‐REDD

PlannedworkChathamHouseandGlobalWitness

•  Buildon25yearscombinedexperiencein:

–  Analysingenvironmentalcrimeandconveningenforcementcommunity(ChathamHouse)

–  Inves8ga8ngforestcrime(GlobalWitness)–  Establishingindependentmonitoringsystems(GlobalWitness)

–  Buildingcoopera8velawenforcement

•  Iden>fythepossibili>esforfraudtoemergeincarbontrading