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REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole The Woods Hole Research Center Research Center

REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

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Page 1: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

REDUCING EMISSIONS FROMDEFORESTATION and

Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of

UNFCCC Policy Process

The Woods Hole The Woods Hole Research CenterResearch Center

Page 2: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

AcronymsAcronyms

UNFCCC – United Nations Framework UNFCCC – United Nations Framework Convention on Climate ChangeConvention on Climate Change

COP – Conference of the PartiesCOP – Conference of the Parties RED(D) – Reducing Emissions from RED(D) – Reducing Emissions from

Deforestation (and Degradation)Deforestation (and Degradation) SBSTA – Subsidiary Body for SBSTA – Subsidiary Body for

Scientific and Technological AdviceScientific and Technological Advice CDM – Clean Development CDM – Clean Development

MechanismMechanism

Page 3: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

““Submission by the Governments ofSubmission by the Governments ofPapua New GuineaPapua New Guinea

& Costa Rica& Costa RicaReducing Emissions from Deforestation in Reducing Emissions from Deforestation in

Developing Countries:Developing Countries:Approaches to Stimulate ActionApproaches to Stimulate Action

Eleventh Conference of the Parties to the Eleventh Conference of the Parties to the UNFCCC: Agenda Item # 6”UNFCCC: Agenda Item # 6”

Enter RED...

Montreal, Nov 2005

Page 4: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

REDD in the UNFCCC REDD in the UNFCCC processprocess

20052005– December - Montreal – RED is placed on the UNFCCC December - Montreal – RED is placed on the UNFCCC

agenda with 2 year recommendations deadlineagenda with 2 year recommendations deadline 2006-20072006-2007

– 2 SBSTA workshops on scientific, technical, and 2 SBSTA workshops on scientific, technical, and policy issues of REDDpolicy issues of REDD

December 2007December 2007– Bali – 2 year deadline reached; SBSTA recommends Bali – 2 year deadline reached; SBSTA recommends

inclusion of degradation; Bali Action Plan includes inclusion of degradation; Bali Action Plan includes REDD as a potential option to reach climate goalsREDD as a potential option to reach climate goals

Page 5: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Issue: Scale Issue: Scale

National vs Project-level approach:National vs Project-level approach:National accounting approach:National accounting approach:

avoids many problems with leakage that kept REDD avoids many problems with leakage that kept REDD out of CDMout of CDM

could drive deeper Annex I commitmentscould drive deeper Annex I commitments SSupports development of cross-sectoral policies to upports development of cross-sectoral policies to

address drivers of deforestationaddress drivers of deforestation

Subnational accounting approachSubnational accounting approach May aMay allow broader initial participationllow broader initial participation QQuicker startuicker start PPromotes private sector financingromotes private sector financing

Page 6: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Issue: BaselinesIssue: Baselines

National historical reference period National historical reference period based on emissionsbased on emissions

Forward-looking baseline modeling Forward-looking baseline modeling future „business as usual“ emissionsfuture „business as usual“ emissions

Baseline of carbon stocksBaseline of carbon stocks Global average emissions baselineGlobal average emissions baseline Hybrid approachHybrid approach

UUsing combination of historical sing combination of historical emissions and carbon stocksemissions and carbon stocks

Page 7: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Issue: ScopeIssue: Scope

Include degradation?Include degradation? Include maintenance of carbon stocks?Include maintenance of carbon stocks? Include regrowth/increase in carbon Include regrowth/increase in carbon

stocks?stocks? What about countries that have not yet What about countries that have not yet

deforested? Perverse incentive?deforested? Perverse incentive?

– Costa Rica – declining deforestationCosta Rica – declining deforestation– Congo Basin – limited degradationCongo Basin – limited degradation– Brazil – extensive historical deforestationBrazil – extensive historical deforestation– GhanaGhana –– high deforestation rates high deforestation rates

Page 8: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Issue: Financing MechanismIssue: Financing Mechanism Market:Market:

– Credits created for emissions reduced, Credits created for emissions reduced, which can be sold in carbon market and which can be sold in carbon market and used for countries to meet emission used for countries to meet emission reduction targetsreduction targets

Non-market approach:Non-market approach:– Annex I countries contribute voluntarily Annex I countries contribute voluntarily

to large fund not linked to marketto large fund not linked to market– LLevy on emissions trading to fund REDDevy on emissions trading to fund REDD

Hybrid approachesHybrid approaches– SSeparate market for REDD creditseparate market for REDD credits

And many others....And many others....

Page 9: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

All approaches advantage some All approaches advantage some countries and disadvantage otherscountries and disadvantage others

National level accounting – favors countries National level accounting – favors countries with strong measurement and monitoring with strong measurement and monitoring capacity, and government infrastructure for capacity, and government infrastructure for tracking and accountingtracking and accounting

Historical baselines – favors countries with Historical baselines – favors countries with high levels of historical deforestationhigh levels of historical deforestation

Scope – including deforestation only favors Scope – including deforestation only favors countries with high deforestation rates; countries with high deforestation rates; including degradation favors countries with including degradation favors countries with logging and fuelwood gathering as primary logging and fuelwood gathering as primary forest emissions; forest emissions;

Page 10: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Advantage/Disadvantage cont’dAdvantage/Disadvantage cont’d

Scope cont’d - including Scope cont’d - including maintenance and regrowth of carbon maintenance and regrowth of carbon stocks favors countries with low stocks favors countries with low historical emissions and high carbon historical emissions and high carbon stocks, as well as countries with net stocks, as well as countries with net carbon gain in forestscarbon gain in forests

Financial mechanism – depends on Financial mechanism – depends on structurestructure

Page 11: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Next steps for REDDNext steps for REDD Dec 2008 – Poland Conference of the Dec 2008 – Poland Conference of the

Parties Parties Dec 2009 – Deadline for establishing Kyoto Dec 2009 – Deadline for establishing Kyoto

Protocol successor – Copenhagen Protocol successor – Copenhagen Protocol?Protocol?– Success of REDD is heavily dependent Success of REDD is heavily dependent

on consensus on comprehensive climate on consensus on comprehensive climate agreement to follow Kyoto Protocol’s agreement to follow Kyoto Protocol’s 2012 expiration2012 expiration

Page 12: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Thanks for your attentionThanks for your attention

Tracy JohnsThe Woods Hole Research [email protected]

Page 13: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Compensated ReductionCompensated Reduction

Amazon Institute of Environmental Amazon Institute of Environmental Research, Environmental Defense, Research, Environmental Defense, The Woods Hole Research CenterThe Woods Hole Research Center

ScaleScale - National level accounting - National level accountingBaselineBaseline – National historical baseline – National historical baselineScopeScope - Could include degradation; - Could include degradation;

maintenance or regrowth of carbon maintenance or regrowth of carbon stocks not includedstocks not included

Financing Mechanism Financing Mechanism - Market-based - Market-based approachapproach

Page 14: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

PNG ProposalPNG Proposal ScaleScale – National level accounting – National level accounting BaselineBaseline – national historical – national historical

reference period – at least 5 yearsreference period – at least 5 years ScopeScope – can include degradation; – can include degradation;

separate fund for maintenance and separate fund for maintenance and growth of carbon stocksgrowth of carbon stocks

Financing mechanism Financing mechanism – market-– market-based approachbased approach

Includes “Development Adjustment Includes “Development Adjustment Factor” applied to baseline to reflect Factor” applied to baseline to reflect national circumstancesnational circumstances

Page 15: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Stock-Flow ApproachStock-Flow Approach The Woods Hole Research Center; The Woods Hole Research Center;

based partly on Strassburg Global based partly on Strassburg Global Baseline ApproachBaseline Approach

ScaleScale – National-level acounting – National-level acounting BaselineBaseline – Global historical baseline – Global historical baseline ScopeScope – can include degradation; – can include degradation;

based on both emissions and carbon based on both emissions and carbon stocksstocks

Financial mechanismFinancial mechanism – could be – could be market or fund-basedmarket or fund-based

Page 16: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Nested ApproachNested Approach

Climate Focus, CATIE, ColombiaClimate Focus, CATIE, Colombia ScaleScale – combination of subnational – combination of subnational

and national accountingand national accounting BaselineBaseline – project baselines “nested” – project baselines “nested”

into future national baselineinto future national baseline ScopeScope – includes degradation; does – includes degradation; does

not include maintenance or regrowthnot include maintenance or regrowth Financing mechanism Financing mechanism – market-– market-

based approachbased approach

Page 17: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Strassburg Global Baseline Strassburg Global Baseline ApproachApproach

Bernardo Strassburg, University of Bernardo Strassburg, University of East Anglia, UKEast Anglia, UK

ScaleScale – national-level accounting – national-level accounting BaselineBaseline – global historical baseline – global historical baseline ScopeScope – can include degradation; – can include degradation;

does not include maintenance or does not include maintenance or regrowth of carbon stocksregrowth of carbon stocks

Financial mechanism Financial mechanism – could be – could be market or fund-basedmarket or fund-based

Page 18: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Carbon Stock ApproachCarbon Stock Approach Climate Focus, Center for International Climate Focus, Center for International

Environmental Law; similar approach Environmental Law; similar approach favored by Indiafavored by India

ScaleScale – national-level accounting – national-level accounting BaselineBaseline – based on current carbon stocks, – based on current carbon stocks,

not emissionsnot emissions ScopeScope – because based on stocks, includes – because based on stocks, includes

deforestation, degradation, maintenance deforestation, degradation, maintenance and regrowth of carbon stocksand regrowth of carbon stocks

Financing Mechanism Financing Mechanism – market-based – market-based approachapproach

Page 19: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Dual Markets ApproachDual Markets Approach Center for Clean Air Policy; Greenpeace Center for Clean Air Policy; Greenpeace

favors a similar approachfavors a similar approach ScaleScale – national-level accounting – national-level accounting BaselineBaseline – national historical baseline – national historical baseline ScopeScope – Includes degradation; does not – Includes degradation; does not

include maintenance or regrowth of include maintenance or regrowth of carbon stockscarbon stocks

Financial mechanism Financial mechanism – market/fund – market/fund hybrid: separate “market” for REDD hybrid: separate “market” for REDD creditscredits

Page 20: REDUCING EMISSIONS FROM DEFORESTATION and Degradation (REDD) IN DEVELOPING COUNTRIES: Background and status of UNFCCC Policy Process The Woods Hole Research

Brazil ProposalBrazil Proposal

ScopeScope – National-level accounting – National-level accounting BaselineBaseline – modified national – modified national

historical “reference emission rate”historical “reference emission rate” ScaleScale – Focus on deforestation; does – Focus on deforestation; does

not include maintenance or regrowth not include maintenance or regrowth of carbon stocksof carbon stocks

Financing Mechanism Financing Mechanism – competitive – competitive Fund-based approachFund-based approach