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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
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
““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
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
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
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
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
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....
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;
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
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
Thanks for your attentionThanks for your attention
Tracy JohnsThe Woods Hole Research [email protected]
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
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
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
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
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
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
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
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