Papua New Guinea: Not ready for REDD

8/8/2019 Papua New Guinea: Not ready for REDD

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www.greenpeace.org.au

PAPUA NEW GUINEA :NOT READY FOR


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Executive Summary 1Introduction 2Recommendations 3The Promise of REDD in PNG 4

The Need for International REDD Finance 4Somares Plan: From Copenhagen to Cancun 5McREDD and Rushed REDD Plans 5Carbon Cowboys 7Donor Bodies and REDD Financing 8

Poor Forest Governance in PNG 10Illegal and Destructive Logging 10Corruption in the Forestry Sector 10Dismantling of Indigenous Peoples Rights 12

Conclusion 13Reference 13

contents

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executive summary

This report critiques the handlingof domestic policy aimed atReducing Emissions fromDeforestation and Degradation(REDD) by the Government ofPapua New Guinea (PNG) andthe way it has engaged withinternational REDD negotiationssince the 2009 UN ClimateConference in Copenhagen.

The poor governance andentrenched corruption thathas long characterised the PNGlogging industry, together witha refusal to accept conditionsfor REDD funding and a growingdismissal of indigenous peoples

rights, means PNG is not currentlyready for REDD funding. This isunfortunate as future generationsof Papua New Guineans and thecountrys unique biodiversity couldmiss out on a positive alternativeto continued destructive industriallogging.

Greenpeace is a strong advocatefor fast-start funding for REDDif it is provided with strictpreconditions for governancereform. Greenpeace has provided,and will continue to provide,advice and recommendations tothe Government of PNG (GoPNG)on the measures that should

be taken to advance its casefor REDD money. Greenpeaceskey recommendations area moratorium on new large-scale logging and agriculturalconcessions and a review ofexisting operations and stringentsafeguards for indigenous peoplesand biodiversity.

This report offers recommendationsfor existing and prospective REDDdonor countries and key conditionsthat must be met by theGoPNG before REDD

nancing occurs.


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introduction

There is no questioning the uniqueenvironmental and cultural importanceof PNG. Covering the eastern half of the island of New Guinea, the countryhosts one of the worlds largest andmost diverse areas of remaining intacttropical forest. It also supports theEarths most diverse collection of cultures with over 850 languages.

Yet PNG faces signi cantenvironmental and economicchallenges. Much of the largelyrural-based population does not haveaccess to health or education servicesand one third of the population liveson less than US$1.25 a day. 1

Decades of industrial logging havenot delivered the promised bene ts

of employment, improved health andeducation. Communities affectedby logging have witnessed the lossor destruction of their forests andwaterways, two things that are keyto their subsistence way of life. Todayonly 55% of PNGs forests remain asintact forest landscapes, 2 much of which are at risk of being lost forever.

Due largely to unsustainable levelsof logging, PNG has the second

highest proportion of nationalgreenhouse gas (GHG) emissionsfrom land use and land use changeand forestry (LULUCF) in the world. 3

The appeal of receiving internationalnancial assistance for REDD has

seen PNG position itself as a leaderwithin international REDD discussions.

Yet this high level of in uence hasnot been re ected in leadership oneffective emission reductions or

forest protection domestically. Whatnational policy has been developedthus far aims to maximise potentialinternational REDD funding ratherthan improve institutional and politicalcapacity in PNG in order to implementeffective REDD policy and measures.

Meanwhile, the search and investmentfor voluntary REDD carbon creditsand schemes has ballooned inPNG as speculative investors and

entrepreneurs look to get into arapidly emerging but uncontrolledmarket.

Corruption within PNGs forestindustry, disregard for land ownerrights, in ated estimations of likelybene ts from REDD and a lack of effective institutional systems in placedo not engender con dence in thecountrys ability to manage a fundedinstitutional transition to a low carbon

economy. Rather than leading toinstitutional reform, these allegationshave resulted in the re-naming of relevant institutions to de ect blame.

Recently introduced legislation marksa shift towards reduced governmenttransparency and an increasingdisregard of rights of its indigenouspeoples the owners of 97% of thecountrys forests.

PNGs GHG emissions reduction

plans focus largely on ReducedImpact Logging (RIL), sidelining thebene ts of conservation. It also leavesmany to conclude that PNGs largelyforeign-owned logging industry andpro-logging advisors retain unduein uence over the GoPNG and itsforest and REDD policies.

For the GoPNG to provide analternative to continued destructivelogging and deforestation, which has

shown no real bene t to its people,it must embark on a new way toengage with REDD policy at homeand abroad.

For prospective international REDDdonors, the greatest way to supportthe people of PNG and achievethe objectives of REDD is to insiston legislative preconditions toaccompany REDD funding.

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recommendations

t redd :

1. Implement a comprehensive setof preconditions and safeguardsfor credible REDD and Climate-Compatible Development in PNGthat includes:

b. Recognition and respect forindigenous peoples rights tothe forest lands and carbon(including a requirement of areview of the Environment Actto remove elements that breach

the UNDRIP);c. No support or nancing for

industrial logging (including RILor SFM) of intact or primaryforests, and the re-alignment of the forestry sector to focus onmanagement and restorationof secondary forests and localprocessing;

d. The implementation of a moratorium on forestconversion for industrialagriculture and the expansionof logging into intact or primaryforests by the Governmentof PNG;

e. Participatory land use andconservation planning basedon the free prior and informedconsent of the customary

landowners. It must also ensureareas of high conservationvalue, primary forests and intactforest landscapes are protectedwith a focus on communityprotected areas;

f. Measures to ensure forestgovernance reform in orderto keep corruption out of REDD.

2. Establish a PNG Forest Fund withmulti-stakeholder governance thatincludes civil society and NGOrepresentatives, similar to the

Amazon Fund.

t G P p n wG :

3. As a demonstration of commitmentto REDD, immediately declare amoratorium on industrial logging inintact or primary forest and forestconversion for industrial agriculture.

4. Ensure the REDD and PNG lawsrespect the rights of the customary

landowners as laid down in thePNG constitution and the UNDeclaration on the Rights of Indigenous Peoples. Further, rightsto forest carbon and the majorityof bene ts from its conservationshould remain with the customarylandowners.

5. Reject the baseline and businessas usual (BAU) scenarios withintheir Climate-CompatibleDevelopment Interim ActionPlan (IAP) and Strategy (SDCCD).Instead, use realistic assumptionsfor GHG abatement based upon10 year average deforestationrates similar to the approachtaken in Brazil.

6. Carry out comprehensive andinclusive consultation withPNG civil society including thecustomary landowners on theproposed IAP and SDCCD.

7. Redirect the IAP and SDCCDto focus on GHG abatementfrom forest protection, particularlyin primary forest and restorationof secondary forest, rather thana continuation and expansionof logging (RIL).

8. Establish a PNG Forest Fundto manage REDD nance with

multi-stakeholder governancethat includes civil society andNGO representatives, similarto the Amazon Fund.

t h g a s w a y o s u p p o h p o p l o f P n G a a h i v h o b j iv s o f r e d d is o i s is o l g is la iv p o i io s o a o m p a y r e d d f u i g


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the Promise of redd in PnG

t n i l

redd f The protection of PNGs forests,in particular the intact and primaryforests that store considerablevolumes of carbon, is essential formitigation of climate change. Muchof this forest is threatened by loggingand conversion for agriculture. Thepeople of PNG, most of whom live asubsistence life relying on the forest,also have the right to developmentand improving their livelihoods.

Therefore protection of their forestsfor the global bene t is going torequire international nancing tocompensate forgone development.

Only 55% of PNGs forests todayare in large blocks of primary forest(>500 km2) of minimally disturbedforest ecosystems known as IntactForest Landscapes (IFLs).

Primary forests are generallymore carbon dense, biologicallydiverse and resilient than other forest ecosystems, includingmodi ed natural forests andplantations, accordingly, in largely

intact forest landscapes wherethere is currently little deforestationand degradation occurring,the conservation of existingforests, especially primary forests,is critical both for preventing futuregreenhouse emissions through lossof carbon stocks and continuedsequestration, as well as for conserving biodiversity. 4

The UN Convention on BiologicalDiversity (CBD)

However, continued illegal anddestructive logging and theconversion of forest areas intoplantations could see much of PNGscommercially accessible tropicalforests cleared or degraded by 2021. 5

With over 85% of PNGs people livingwithin the forest and surrounding ruralareas, the forests play an importantrole in their livelihoods. However,access to education and healthcare remains a major developmentchallenge. One third of the populationlives on less than US$1.25 a day. 6 Despite years of economic growth,industrial development has bene tedonly a very few, with many living inpoverty. 7 PNG has traditionally been

dependent on overseas aid to bridgethe gap in its development needsand rapidly increasing population.

The Australian Government,for example, gave $457.2 million inaid to PNG in 2010. 8 This representsabout 6% of PNGs GDP in 2009. 9

With REDD nance there is theopportunity to marry the two goalsof GHG emissions reductions throughforest conservation and developmentthat improves the livelihoods of localcommunities. REDD nance couldprovide essential infrastructure andservices such as education, health,communication and housing as wellas support small-scale low-impactcommunity use that maintains thecarbon and biodiversity.

However a major challenge is forPNG to transform its policies, lawsand institutions, if it is to ready itself for increased international assistancevia REDD. It will need to bring downthe high levels of corruption andimprove governance if donors are tobe reassured that REDD nancingcan achieve the goals of emissionsreductions, forest conservation andclimate-compatible development.

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s Pl : fc p g cOn 27 May 2010, at the Oslo Climateand Forest Conference, PNG PrimeMinister Michael Somare outlinedthe countrys new plans for REDDand described it as a model for allprospective countries looking tobene t from REDD.10 In his speech,he also identi ed the nance neededby PNG for a targeted cut of over110 million tonnes of GHG emissions(between 2011 and 2015 and for alow carbon pathway leading to 1.1 to1.5 billion tonnes of CO 2e reductionsbefore 2030.

While PNG has not yet lodged aNational Communication on GHGemissions, deforestation andforest degradation emissions wereestimated to be about 44 milliontonnes in 2010. 11

Somare identi ed that PNG needsfast start funding of betweenUS$715 million to US$1 billion in threephases over the period 2011 2015:

US $71 million for readinesspayments

US $118 million for pilot programcosts

US $526 811 million forperformance based payments. 12

Somare also criticised the currentprocesses under the World Bank and the United Nations, calling thema tangle of endless process andconditionalitys (sic). The implicationbeing that safeguards for biodiversityand indigenous peoples rights(which Somares speech and theCoalition for Rainforest Nations (CfRN)presentation failed to address), arehindering the ow of REDD nance.

r redd PlWhile PNG has made commitmentsto reduced GHG emissions, it hasrelied heavily on analysis that in atesbaselines and BAU scenarios,and opts for expanded loggingas the main REDD abatementstrategy. Further to this, it haslargely excluded local civil societyincluding the customary (indigenous)forest holders, in the developmentof its climate-compatible plans,and is simultaneously underminingindigenous rights throughamendments to the countrys laws.

In February 2010, PNG made aconditional commitment to theUNFCCC, under the Copenhagen

Accord, that GHG emissions wouldbe reduced by about 30% fromcurrent levels and about 50% fromBAU by 2030.

GoPNG has developed an Interim Action Plan for Climate-CompatibleDevelopment (IAP).13 The planpurports to shape more climate-resilient development whilst almostdoubling annual GDP growth andsuggests a BAU emissions growthof almost 40% over the next 20 years.However, there are a number of signi cant failures in the plan.

Firstly the GoPNG proposes the needto clarify and rationalize the allocationof land between forestry, commercialagriculture, subsistence agricultureand other uses such as hunting.Previously the government declared,All natural forest carbon is ownedby the customary landowners andmanaged by the state. 14 However,details are scant on how the statewill manage the carbon on thelandowners behalf, especially howbene ts will be shared.

Outwardly it would appear that theGoPNG is proposing to effectivelyappropriate the rights over forestcarbon, control any nancial gainsor sales, and decide on how anybene ts are distributed. Customarylandowners have not handed overtheir rights to the State to manageforest carbon and any attempt to doso would cause signi cant oppositionto REDD in PNG.

G re enp ea ce /So lness

c o i u e d ille g a l a d d e s ru i ve lo gg i g

a d h e o ve rs io o f fo re s a re a s i o

p la a io s o u ld s e e m u h o f P n Gs

o m m e r ia ll y a e s s ib le ro p i a l fo res s

le a re d o r d e g ra d e d b y 2021


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With or without landowner support,the GoPNG proposes a 50%reduction in BAU GHG emissionsby 2030. In effect the GoPNGproposes a 10% reduction in theestimated emissions of GHG in 2010,

largely through changing forestryand agricultural practices. The IAPsuggests that these reductionsare conditional on an internationalagreement that will fund REDD,so that Papua New Guineansare compensated for ecosystemservices and emissions bene ts theycontribute to the world, and for theresulting changes to their incomesand livelihoods.

These could be seen as laudablegoals if not for the fact that much of this abatement potential is estimatedto be from Reduced Impact Logging(RIL) in existing operations (loggingprimary forest). Apart from somereference to conservation initiativesand community REDD projects,no assessment of the GHGabatement opportunities of conserving the remaining primaryforests in PNG is undertaken in theIAP. Conserving primary forest is theeasiest and surest way of addressingthe massive forest degradation

caused by logging and instead usingRIL to restore secondary logged overforests together with local processing.

Indeed, under the BAU scenario,the IAP suggests that a 2% annualgrowth in log and agriculturalcommodity production and a doublingin production of minerals and oiland gas to 2030. As recent studiessuggest, current rates of loggingare unsustainable and most of theproductive forest will be logged bythe end of the decade. It is thereforequestionable whether a 2% annualincrease in log production to 2030is even possible, even beforeconsidering whether landowner

approval for the expansion is possible.Projected future BAU reference levelsfor REDD are poor standards toestimate and reward reductions.

An increasing reference level basedon BAU projections assumescontinuing deforestation anddegradation and a built-in incentiveto in ate such reference baselines:the higher the reference baselineassumed, the easier it is to generate

reductions and hence gain rewards. To ensure real emissions reductionsPNG should follow Brazils lead and

use an average ten year deforestationrate as a reference period sothat donors can base performancepayments on actual reductions indeforestation and degradation.

Furthermore, monitoring, reportingand verifying emission reductionsbased on RIL is dif cult and expensivecompared to the relatively simplespatial analysis required for reductionsin area of primary forest logged orforest not cleared. It is thereforequestionable that RIL can achievegenuine emission reductions in PNG.

Therefore, in order to developa credible climate-compatibledevelopment strategy the GoPNGneeds to shift to real emissionsreductions through the protectionof primary forest together withcommunity development, RIL onlyin the millions of hectares of alreadylogged over forests, and by allowingindustrial agriculture expansion onlyin already cleared areas.

Gre e np e a ce /Be hring-Chisholm

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c b c wb Voluntary carbon trading hasfuelled PNGs ongoing cargo cult 15 and the corruption of of cials andparliamentarians. 16 Described asa classic 21st-century scam, it isknown in PNG as mani bilong skai sky money because it appearsto be selling air. Current proposalsbeing rushed through undermineindigenous peoples rights, in ateBAUs and may allow logging. Thegovernment has sent mixed signalson whether it supports them or not.

In addition to the scandals andcorruption associated with logging,there have also been a number of events linking the PNG governmentto the so called carbon cowboys.Late in 2009, Opposition Leader SirMekere Morauta raised questionsabout claims of possible abuse of process and corruption purportedlybased on of cial documents bearingsignatures of high public of cials, 17

including: The then Of ce of Climate Change

and Environmental Sustainability(OCCES) involvement in issuingcarbon credits certi cates toforeign companies for forest areasin PNG.

A document, signed by then Acting Secretary for Commerceand Industry and co-signed by thecurrent National Planning MinisterPaul Tiensten which con rms thereceipt of US$200 million, paid byC.A. PNG Ltd to the GoPNG forCarbon Credits totaling33,333,333 tonnes.

A week later, an Australian companywas embroiled in a US $100 millioncarbon trading scandal in PNG.

Carbon Planet admitted to giving fakecarbon certi cates that purported torepresent a million tonnes of voluntarycarbon credits issued by the UN. Thecompany claimed that the certi catescreated by PNG of cials were merelyprops to help persuade landownersto sign over the carbon rights to theirforests. 18 After an investigation, thehead of the PNG Of ce of ClimateChange, Theo Yasause, was removedfrom of ce in 2010.19

In June 2010, two carbon projectshave sought approval from theClimate Community and BiodiversityStandards. The Minister for Forests,Belden Namah endorsed the

April Salome Project in East Sepik Province as the rst pilot project inthe country. 20 Yet con icting thissupport, the PNGs Of ce of ClimateChange and development executivedirector Wari Iamo stated: The PNGGovernment does not recogniseand disavows any partnership,support, endorsement or any formof connection to the proposedprojects. 21

The second project, Kamula Dosoin Western Province, is led bycontroversial Australian businessmanKirk Roberts. 22 In many of thevoluntary carbon projects there havebeen concerns about landownerconsent but in this case one triballeader claims he was forced atgunpoint to sign away his lands tothe project. They came and got mein the night... police came with a gun.

They threatened me. They told me, You sign. Otherwise, if you dontsign, Ill get a police and lock you up,

said a leader of the Kamula Dosopeoples Abilie Wape. 23 This is in spiteof the fact that the Kamula Dosoarea is subject to a court injunctionpreventing carbon trade projectdevelopment as well as a landdispute both are in process inthe PNG courts.

In August 2010, both carbon tradeprojects and supposed REDD pilotschemes were the subject of criticism

for a litany of inconsistencies,dubious science, legal issues andconcerns landowners will be rippedoff.24 The baseline data on thevolume of timber appears to bein ated and there is a possibilitythat both could allow logging.

The GoPNG is sending con ictingmessages in respect to voluntarycarbon trading in PNG. On theinternational stage, the Prime Minister

Michael Somare insists that hisGovernment is opposed to voluntarycarbon trading. Meanwhile back inPNG his Ministers and governmentof cers tell a different story. GoPNGneeds to urgently reign in all thevoluntary projects until it has a robustpolicy framework that is supportedacross the entire government.

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P n G h a s b e e ig o re d b y m a y d o o r

c o u t r ie s lo o k i g t o s u p p o r t a t io s

w ith p ro g re s s i ve p o lic y p o s i t io s

d B reddf g

It is not surprising that there has beenlittle international interest in PNG as aresponsible recipient of REDD fundingdue to high levels of corruption,carbon cowboy scandals, and lack of political leadership on REDDin PNG. While Australia has pledgeda small amount ($3m) for capacitybuilding and UN REDD is assisting(US $2.5m), PNG hasbeen ignoredby many donor countries looking

to support nations with progressivepolicy positions.

PNG expressed interest in becominga pilot country in the rst and secondround of investments in REDDpilots under the World Bank ForestInvestment Program (FIP) but sofar has failed to be recommendedor approved by the Expert Groupof the FIP. 25

As an active architect of the WorldBanks Forest Carbon PartnershipFacility (FCPF), PNG has also hadsurprising dif culty with securingfunds. Its rst application wasrejected largely due to a lack of consultation and signi cantinformation gaps. The FCPF has sinceaccepted an amended application,but there is still some disagreementwhether this will be in the form of Readiness Funding or will merelylead to PNG receiving technicalassistance. 26 However, it has been

reported that PNG has advised theFCPF that until other countries havereceived FCPF grants, it will only seek resources from UN REDD and notfrom the FCPF.

The GoPNGs focus on reducedimpact logging rather than forestprotection is out of step withmany key donors safeguards or aid nance policies. One of threeobjectives of the Norwegian

US $3 billion Climate and

Forest Initiative is to promotethe conservation of natural foreststo maintain their carbon storagecapacity.

The German Ministry for EconomicCooperation and Developments(BMZ) binding guidelines on forests(Forest Sector Strategy) statesprimary forests, are the mostimportant terrestrial reservoirs forcarbon, and minimum ecologicalstandards in forests with highconservation value, protection of the ecosystems biodiversity takesprecedence over other goals.

The environmental safeguards of the Japan International Cooperation

Agency (JICA) state that: Projectsmust not involve signi cant conversionor signi cant degradation of criticalhabitats or critical forests andillegal logging of forests must beavoided. All three governmentsalso have safeguards on indigenouspeoples rights.

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Governance issues are also behindmuch of the reluctance of donorcountries and bodies to providecapacity building nance to PNG.GoPNGs plans for institutionalchanges and capacity building forclimate-compatible development willdo little to address PNGs credibilitygap with donors. Following Brazilsexample, PNG needs to establisha PNG Forest Fund with multi-stakeholder governance to manageREDD preparedness, nances andbene t sharing.

There have been suggestionsreported by insiders that the failureof the GoPNG to effectively negotiateinternational nance ows for REDDis partly due to the US-born Climate

Ambassador, Kevin Conrad, whoreputedly retains a tight controlof PNGs REDD policy.

Conrad has come under re in thePNG parliament, primarily for hisactivities as an investment banker.Last year, Peter ONeill, whileopposition leader, attacked Conradfor his roles in a failed US $8m public

servants housingscheme and in theUS $17m collapseof commodity exporter

Angco Coffee. MalKela Smith, theGovernor of theEastern Highlands,

said We dont trust him with themoney carbon trading will bring.So far, the income from carbontrading remains mani bilong skai . 27

The people of PNG deserve to havetheir country develop in a way thatimproves their livelihoods and protectstheir natural resources for future

generations. REDD could providefunding to achieve this, or it couldcompound corruption and ongoingforest degradation. PNG needs todevelop a coherent and inclusive planthat includes placing a moratoriumon the logging of primary and intactforests, as well as on agriculturalexpansion into forested areas, andtransforms its institutions and forestgovernance. Until then, it would beirresponsible for international fundingbodies and donor governments toprovide PNG with REDD funding.

t h p o p l o f P n G s v o h a v h i o u y v lo p i a w a y h a im p o v s

h i liv lih o o s a p o s h i a u a l s o u s f o f u u g a io s

Greenpeace/Sutton-Hibbert

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Poor forest Governance in PnG

Despite having some of the bestforestry laws in the world, PNGsreputation as a forest manager is verypoor. Failure to control illegal anddestructive logging means that theGoPNG is not ready to implementthe even more technical and rigorousgovernance and enforcementstructures that will be requiredto ensure postive REDD outcomes.

ill g l dL gg g

The majority of logging operationsin PNG can be classi ed asenvironmentally, economicallyand socially unsustainable 28 andthe vast majority of the logging inPNG is illegal.29

In one GoPNG review of 14 forestryoperations between 2000 and 2005,none could be de ned as legal andonly one project managed to meetmore than 50% of key criteria for

a lawful logging operation.30

No logging concession is able tomeet the International Tropical TimberOrganisations (ITTO) criteria forsustainable logging and none, exceptfor two community eco-forestry groupschemes, have Forest StewardshipCouncil (FSC) certi cation.

Privately owned companies control allcommercial timber production fromnatural forest areas. Malaysian ownedcompanies dominate this commercialtimber production. The role of the State is limited to inadequatemonitoring and control.

c p f s

The lack of nancial accountabilityand oversight of government ministersand bureaucrats in PNG continues toundermine con dence in the countrysability to deliver on key Governmentprograms and equitably distributeits wealth. Cronyism and self-interest

seem to be the mantra of many inthe GoPNG and the forestry sector

in particular has a long historyof corruption and undue dealings.

In the rst admission of its kindby a PNG government of cial, thecountrys Forest Minister, BeldenNamah, told parliament in 2008 thatlogging companies routinely out thelaw with the help of corrupt of cials. 31 He revealed that most of hisdepartmental of cers responsible formonitoring forestry operations hadignored the law and that many werein the pockets of logging companies.Later in 2008, the Post-Couriernewspaper linked unnamed PNGpoliticians to US $45m in a Singaporebank account, allegedly moneyearned through secret logging deals. 32

In 2009, PNGs anti-corruptionwatchdog investigated the allegedpayment of millions of dollars in bribesfrom the logging industry to ministersin the government of Prime MinisterMichael Somare. Media reports inPNG claimed there was a money trailof corrupt payments from Singapore

Gr e enp e ac e / So lnes s

Greenpeace / Murp h y

t h e m a jo ri y o f lo g g i g o p e ra io s i

P n G a b e la s s i e d a s e v iro m e a ll y,

e o o m i a ll y a d s o ia ll y u s u s a ia b le

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through Australia to Port Moresby,with $US 27m being withdrawn fromone account around the timeof the last PNG national election. 33

The Ombudsman Commission failedto determine whether the paymentsto the Singapore bank accounts werederived from a 2% take of loggingexport revenues from operations inthe Gulf Province in southern PNG.

In its 2009 Global CorruptionReport, Transparency Internationalfound that forestry in PNG hadreached a critical juncture withcurrent levels of logging said to

be unsustainable, and the legalityof many current concessions indoubt. 34 The report concluded that:

In Papua New Guinea, the effectsof lobbying alongside other formsof corruption to in uence decisionson forestry and logging have

had a signi cant impact on thesustainability of the industry. 35

In 2009, the PNG Auditor Generalsaid corrupt of cials had stolenabout $360m annually in recentyears. 36

In 2009, allegations were made thatthe shooting of PNGs top corruption

ghter, Chief Ombudsman ChronoxManek, was linked to corrupt partieswishing to silence him. This indicates

just how far parties may be willingto go to hide their activities. 37

Corruption remains a signi cantbarrier to sustainability for PNGsforestry sector. Despite a numberof independent reports and

investigations, some undertakenby the PNG Ombudsman, the currentGoPNG has failed to adequatelyrecognise the problem and hadplaced little emphasis on measuresto rectify and punish individualsfor corruption.

Any successful REDD program willrequire a high level of monitoring,good governance and transparency.

There is a long way to go before the

GoPNG can honestly claim to beready to deliver such guaranteesand cleaning up its forestry sectormust be a priority.

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d l g i g P pl r g

As mentioned, PNG has some of themost comprehensive environmentallaws relating to forests in the world.

This is due largely to the requirementfor prior and informed consent of traditional landowners for forestryor other natural resource exploitation.

Yet these laws are currently under threat.

Thanks to PNGs foresty laws,the judiciary has been used effectivelyto limit some of the worst examplesof landowner abuse andenvironmental impact at the handsof the PNG logging industry. However,the overloaded courts often take yearsto hear a case. 38

Only one day after Somares speech

in Oslo earlier in 2010, the PNGParliament broke parliamentarystanding rules to amend itsenvironmental laws.

The amendments ban legalchallenges against environmentallydestructive projects if the projectis ruled to be of national interest 39.

These include removing landownersrights to challenge in court anydevelopment that impacts their landfrom future or continuing harm andto be awarded compensation.

Legal opinion suggests theEnvironment (Amendment) Act 2010should be declared unconstitutionalas it:

breaches the right to protectionand enforcement of landownersguaranteed rights under S57 of the Constitution;

breaches the landowners rightto compensation under S58 of the Constitution;

breaches the landowners rightsto unjust deprivation of propertyunder S53 of the Constitution;

is contrary to National Goal andDirective Principles Goal 4; and

breaches Constitution Section25(2) and Section 25(3).

In response to media criticism overthe amendments, the Attorney-General, Ano Pala, issued a decreeimposing a media blackout on debatesaying, your right to freedom of expression is now subsumed. 40

The new laws, which have notgone unnoticed by civil society inPNG and are currently the subjectof a Constitutional challenge, areperhaps the most obvious exampleof the GoPNGs attempts to sidelineindigenous rights.

The 2009 policy which purportedlyattempts to relieve customarylandowners of their rights overforest carbon (as detailed above)is a speci c example of the GoPNGseeking to exclude indigenous rightsin the context of REDD.

Greenpeace /Be hr ing-C h is ho lm

Gr e e np e a c e / S c he lt e m a

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ConClusion

1. UNDP United Nations Development Program (2009)Human Development Indices , Table 3: Human and income poverty, p35. http://hdr.undp.org/en/ media/HDI_2008_EN_Tables.pdf

2. IFL: An unfragmented expanse of forest and natural ecosystems withina forested landscape that is minimally disturbed by people and largerthan 50,000 hectares.

3. WRI -World Resources Institute (2010)Climate Analysis Indicators Tool (CAIT) Version 5.0. Washington, DC: World Resources Institute (WRI).http://cait.wri.org.

4. CBD - Convention on Biological Diversity (2009)Connecting Biodiversity and Climate Change Mitigation and Adaptation Report of the Second

Ad Hoc Technical Expert Group on Biodiversity and Climate Change.CBD Technical Series.5. Shearman, P.L., Bryan, J.E., Ash, J., Hunnam, P., Mackey, B. & Lokes,

B. (2008)The State of the Forests in Papua New Guinea , University ofPapua New Guinea. https://reader009.{domain}/reader009/html5/0527/5b0ab75051777/5b0ab75f5dd04._forests.htm.

6. UNDP United Nations Development Program (2009)Human Development Indices , Table 3: Human and income poverty, p35. http://hdr.undp.org/en/ media/HDI_2008_EN_Tables.pdf.

7. The GoPNG developed thePNG De nition of Poverty , as being: Lack ofaccess to economic and nancial growth opportunities and the inef cientdelivery of, and lack of access to basic services. The factors contributingto this de nition of poverty include: weak governance, weak social supportsystems, unsustainable use of natural resources, unequal distribution ofresources and a poorly maintained infrastructure network. Cited in Storey,D. (2010).Urban Poverty in Papua New Guinea . National Research InstituteDiscussion Paper 109. National Library Service of Papua New Guinea.

8. Oaks, D. (2010)Top PNG diplomat attacks Coalition; Howard era derailed bilateral relations ELECTION 2010. The Age, Melbourne. 13 August, p6.

9. PNGs estimated GDP in 2009 was US $7.907b according to The CIA WorldFactbook CIA (2010).

10. The REDD Monitor (2010a) http://www.redd-monitor.org/wordpress/wp-content/uploads/2010/06/PM-Somare-at-Oslo-Forest-Climate-Conference-27-May-2010-Final.pdf.

11. WRI (2010).12. With an equivalent carbon price of between $7 or $8 per tonne.13. The IAP supersedes the previous strategy draft Climate-compatible

Development in Papua New Guinea. Second Draft for StakeholderComment. March 2010.

14. PNG MoF - Ministry of Forestry (2009)Forestry and Climate ChangeFramework for Action 2009-2015 ; PNG National REDD strategy draftMay 2009.

15. Power and leadership attributed to the provision of goods traditionallythought to have been gifts from their ancestors.

16. Callick, R. (2009a)The rush is on for sky money . Weekend Australian.Canberra. 5 September p13.

17. Yakham, H. (2009)Carbon credit concerns demand action . Papua New Guinea Post Courier. Port Moresby. 2 November, p14.

18. Post-Courier (2009) Scandal threatening carbon trading rights . Post-Courier.Papua New Guinea. 11 September, p14.19. ibid.20. PNG Forest Minister (2010) Press Statement.Forest Minister Endorsement

of April Salome Forest Management Area for a Pilot Project for REDD .http://www.forestry.gov.pg/site/ les/April%20Salome%20220609.pdf.

21. Post-Courier (2010). Critics see REDD over PNG Carbon. Post-Courier.Papua New Guinea. 11 August, p10.

22. Convicted of race horse doping.See Cubby, B. and Wilkinson, M.(2009) I am a top foreigner in Papua New Guinea, says carbon kingpin,Sydney Morning Herald, Sydney, 4 September . http://www.smh.com.au/ environment/i-am-a-top-foreigner-in-papua-new-guinea-says-carbon-kingpin-20090903-fa0m.html

23. Quote from SBS documentary PNG Climate Woes Continue December2009. Cited inRights and Resources (2009) THE END OF THE HINTERLAND: Forests, Con ict and Climate Change, Washington DC , p1.http://www.rightsandresources.org/documents/ les/doc_1400.pdf; andPicka, T. (2009). http://www.sprep.org/att/irc/ecopies/countries/papua_new_guinea/69.pdf

24. Post-Courier (2010).25. FIP -Forest Investment Program - Expert Group (2010)Recommendationsfor Additional Pilots under the FIP , Second Report of the Expert Group to theFIP Subcommittee, 4 June 2010.http://www.climateinvestmentfunds.org/cif/ sites/climateinvestmentfunds.org/ les/FIP%207%20Expert%20Group%20June%202010_key_document_071910.pdf.

26. UN REDD (2010) Initial Draft of the UN REDD Program PNG QuickStart Initiative. http://www.un-redd.org/Portals/15/documents/ events/20090309Panama/Documents/UN-REDD%20PNG%20NJPD.pdf

27. Callick, R. (2009a).28. ITTO International Tropical Timber Organisation (2007) Achieving the ITTO

objective 2000 and sustainable forest management in Papua New Guinea ,Report of the diagnostic mission. http://www.itto.or.jp/live/Live_Server/3632/ E-C42-7_PNG_Mission_Full_Report.doc; ODI Oversees DevelopmentInstitute (2007a).What can be learnt from the past? A history of the forestry sector in Papua New Guinea . Papua New Guinea ForestStudies 1. http://www.odi.org.uk/fecc/resources/reports/ png_paperone_history.pdf ; ODI-Overseas Development Institute (2007b).The current legal

and institutional framework of the forest sector in Papua New Guinea . PapuaNew Guinea Forest Studies; Sherman et al. (2008).

29. Review Team (2001)Review of Forest Harvesting Projects being processed towards a Timber Permit or a Timber Authority , Observations andRecommendations, The Independent Forestry Review Team, prepared forthe Government of Papua New Guinea, October 2001; Roberts, G. (2006a)The rape of PNG forests , The Weekend Australian 24-25 June, p29; Roberts,G. (2006b)Timber scam costing PNG $100m a year , The Australian 20 July,p7; McDonald, H. (2006)Loggers remain a law unto themselves , SydneyMorning Herald, 9-10 September, p22; SBS Australian Television (2001)Wilderness Laid Waste by Corruption , Dateline May 2; SBS Australian Television (2004) Jungle Justice , Dateline November 2.

30. Forest Trends (2006)Logging, legality and livelihoods in Papua New Guinea:synthesis of of cial assessments of the large scale logging industry vol. 1,Forest Trends, Washington, DC.

31. Roberts (2008a).32. Roberts (2008b).33. ibid.34. Transparency International, (2009). Global Corruption Report 2009:

Corruption and the Private Sector. Cambridge University Press.London. p164.35. ibid.36. ibid.37. ibid.38. ODI (2007).39. ibid40. The Advertiser (2010).Papua New Guinea Media gagged , The Advertiser,

Adelaide, 26 June, p26.

Unless measures are taken toprotect PNGs forests, the currentpressure from destructive industriallogging looks set to continue. Theresult will be a disaster for the climate,the people of PNG who rely upon theforests and the critically importantecosystems that exist within them.

REDD offers a signi cant opportunityfor the future of PNG. Yet thereis nothing to be gained by theinternational community or by thepeople of PNG when forests arenot protected from destructive

and illegal logging and anincreasingly desperate andcorrupt leadership continuesto bulldoze the rights ofindigenous peoples.

Ensuring that strictsafeguards for people andbiodiversity are attachedto REDD payments, suchas those proposed bythe German Government and thoserecommended in this report, willensure the maximum environmentaland social bene ts are

achieved and that countries likePNG will be saving their forests forthe good of the planet, not the pro ts

of a few.

Gr e e np e a c e / S u tton-Hib b e r t

Refere ce


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Greenpeace Australia Paci cGPO Box 3307, Sydney NSW 2001L 2, 33 Mountain Street, Ultimo NSW 2007Ph: +61 2 9281 6100Fax: +61 2 9280 0380Email: [email protected] Front cover image Greenpeace/Behring-Chisholm Back cover image Greenpeace/Sutton-Hibbert