DRC ER-PIN An Emission Reduction Program Idea Note for the Democratic Republic of the Congo

République Démocratique du Congo

REDD+ and the DRC A Turning Point

• DRC is the world’s prime example of an HFLD country o 154M hectares of forest, 0.2% reported deforestation rate

• 186th out of 186 on the Human Development Index o Stability returning, investment climate improving, but these advances

intrinsically put forests under threat

• Brazil’s forest estate is 3X as big as DRC, but it earns 100X the income from its forest sector • REDD+ has the potential to help DRC avoid the traditional route of

deforestation for development

The increasing pressure on DRC to move from HFLD to HFHD…to LFHD…

• National level and Regional Level

• Population increase

• Increasing political stability

• Increased investment in extractives: forestry, mining, etc.

The Dilemma of HFLD

• HFLD countries offer a vital opportunity for REDD+ mechanism – they

still have a large % of intact forest, and deforestation has not yet

become a force of development

• Therefore REDD+ offers the possibility to protect intact forests, without

having to displace entrenched massive deforestation

• But there are 2 significant hurdles for DRC:

• 1. The common historical approach in REDD+ to REL provides greater

rewards to countries that have already achieved development progress

through deforestation than to countries that have not, leaving a built-in

disincentive for early action

• 2. The past does not predict the future – a historical REL fails to capture the

growing pressure on forest resources, thereby limiting REDD’s potential to

succeed as an alternative financially viable development path

What is needed to make REDD+ work for DRC as an HFLD?

• Leadership and Collaboration – strong govt commitment, civil society

involvement, private sector partnerships

• Ground-up meet top-down: initiate actions and test methods and

approaches at subnational scale, incorporate lessons from pilot

activities into national process

• Reward performance against realistic projected threat due to changing

national circumstances

• Insure rewards reach actors on the ground and are equitably distributed

based on performance

• Program must represent viable financial alternative that allows

DRC to use its forests as a means of development, the top priority

for the People of the DRC

Program Approach

• Goal: a model provincial green development program that provides

alternatives and rewards performance to address the challenges of

climate change, poverty reduction, natural resource conservation

and protection of biodiversity

• Serves as both a broad-scale Program with provincial-level enforcement

and incentive programs, and an umbrella for projects targeting specific

drivers and actors

• Aligns with the activities financed in the FIP, and includes both enabling

and emission-reducing activities

• Planning to pilot the VCS Joint Nested REDD+ standard, and in

discussions to pilot the REDD+ SES standard

Mai Ndombe REDD+ Program A world class public-private

partnership • MECNT/CN-REDD – governing the second-largest tropical forest estate

in the world, with the Mai Ndombe Program Area representing a frontier

of deforestation/degradation

• ERA/WWC – leading REDD+ developers, with VCS validated and

verified REDD+ project in the Program area

• WWF-DRC – global leader in conservation, with deep experience and

engagement in the Program area

Cascade Deforestation

Why Mai Ndombe?

• 75% forest

• Closest forest estate to Kinshasa - under threat from growing charcoal,

timber, food needs of nearly 8 million people

• Pilot activities already existing – WWF, ERA-WWC, Novacel

• Includes southern part of the Ramsar site Tumba-Ngiri Mai Ndombe

• Salonga National Park – home to iconic but threatened species such as

the bonobo and chimpanzee; also home to Elephant, buffalo,

hippopotamus ,leopard

• 1.8 million people within Program Area, many are agricultural

households

Leadership and Implementation

Section 3: Implementing Partners Role

MECNT In charge of the national MRV system will be deployed at the level of the ER Program

Province du Bandundu – Ministère de l’environnement

Responsible for the coordination of deployment of the national REDD strategy at the provincial level and for guiding CN-REDD’s deployment in the province

ERA-WWC Technical advice in thedevelopment of the program and implementation support for MRV

WWF-DRC Technical advice in thedevelopment of the program and implementation of local land use plans

Local government and Rural Committees (CARGs) Integration and approval of local land use plans and resolution of conflicts

Customary authorities and legally recognized local community organizations (ASBL)

Implementation of village level land use plans and adoption of alternative sustainable development strategies

Agricultural companies (NOVACEL, SEBO) Implementation of alternative agricultural / agroforestery programs and control of wild fires

Legal logging companies Forestry Certification and movement towards reduced impact logging

Civil society: GTCR, RRN, CEDEN, ISCO Congo, Hans Seidel, Churches

Information, education and communication. Surveillance and support for empowerment activities

FIP, KfW, CBFF, USAID-CARPE, NORAD, AFD, JICA Lenders of funds supporting investments in empowerment and sectoral activities

Section 1: Responsible management entity MECNT

Section 2: National REDD+ Focal Point CN-REDD

Expected Program Lifetime

2010 2011 2012 2013 2014 2015 2016 Phase 1

Readiness

Phase 2

Investment

Phase 3

Implementation

FIP + other APD &

private sources

ER-Program

Readiness funding

First ER Delivery

The DRC Government considers this a permanent program for the Green Development of Mai Ndombe Province

Section 5: Drivers of Deforestation

• Charcoal production to supply Kinshasa • Slash and burn agriculture (subsistence and commercial) • Cattle Ranching (large and small holder) • Bush Fires • Illegal logging • Industrial logging • Pop. Growth • Land degradation • Lack of alternatives • Lack of governance • Low productivity • Transport network

rehabilitation

Dir

ect

Cau

ses

In

dir

ect

Cau

ses

Major Barriers to REDD+

• Low level of local capacity

• Corruption and lack of strong institutions

• Land tenure conflicts

• Illegal activities

• Poor infrastructure for access to markets

Drivers of Emissions vs. Deforestation

- Degradation in forest concessions doesn’t

always result in deforestation but takes forest

from primary to secondary and provides

access

- Deforestation from secondary forest to non-

forest inside and outside forest concessions

essentially the same drivers

- This process of logging degradation followed

by secondary agent deforestation is referred

to as cascade deforestation

Cascade Deforestation

Cascade Deforestation

Alignment with National REDD+ and Development Strategy

Enabling Activities Emission-reducing activities REDD+ requirements

Cross-cutting Activities

Bush fire control Community forestry RIL and Forest certification

Agroforestry on degraded land Agricultural intensification

Access to markets (contract planting) Improved value chain

National Registry

Reference levels

Proxy MRV method for each program and stakeholder

MRV system coherent and integrated into national system

Piloting the program Fiduciary management, benefits sharing mechanisms, legal and operational procedures Capacity building

Basic infrastructure Organization of local

institutions and communities Land use planning, micro-

zoning and land tenure modernization and recognition

Element 1

Element 2

Element 3

Element 5

Element 6

Element 9

Element 7

Element 8

Element 4

Enabling activities Community land management plans integrated to Territorial zoning

Step 1. Assess customary land rights (internal and with

neighboring communities)

Step 2. Create a land cover map using satellite imagery

Step 3. Create a baseline land use map

Step 4. Make a simple management plan for the village

• Validation of VLMP in Territorial level land use planning

• PES contract for implementation of the VLMP Activities

• PES payment based on results of implementing the VLMP

Emission-reducing Activities

• Agroforestry on degraded land to sustainably produce food and

fuelwood

• Agricultural intensification where possible as a strategy to phase out

slash & burn agriculture

• Bush fire control (major regeneration of primary forest expected)

• Reforestation

• Community forestry and conservation concessions

• Incentivize logging sector to reduce emissions through reduced-impact

logging, forest certification, etc.

Institutional arrangements

ER Program Management Entity (Bandundu Province, WWF-DRC, ERA-WWC )

Stakeholder Board of Direction Composed of CN-REDD and key

stakeholders

Provincial and local govt, Local communities NGOs, Private Sector,

Provincial govt, Local communities, NGOs, Private Sector

Emission-reducing activities Enabling activities

MECNT

Section 7: Preliminary analysis in the area of SESA

• State of advancement of SESA

• Consideration of the elements of the SESA in the program

activities

Section 8: Information sharing, communication and consultations

• FPIC is essential

• Indigenous Peoples engagement is crucial

• The state of affairs today and engagement of stakeholders

• Planned communication activities

• Two forms of workshop

• General information on ER Program and what it means to citizens of the province

• Specific FPIC for communities being asked for direct participation

• Mechanism for complaints and recourse

Section 9: Co-benefits

Stakeholder

actions

- - - -

Empowerment

Activities

Local

communities

Central and

local

Administration

Local NGOs

Project

Development

- - - -

Alternative

activities

NGOs

Local

communities

Private

investors

Local socio economic results

Program results

Capacity building

Financial Results

Pay for performance

for REDD+

Section 10: Benefit Sharing

• Up front Program investments in Community Projects to reduce

pressure on forests

• Fixed share of program revenues for communities

• Additional Share of profits between community and government

proposed

• Payments for emissions reductions performance and by proxy

• Full design will take place during Design Phase

• Existing legal agreements provide guidance

Reference Emission Levels (REL) – An evolving Approach

1. average historical emissions (2000-2010) for area outside forest concessions – has weaknesses as basis for REL

1. FACET has significant temporal data issues

2. FACET has too broad definition of secondary forest – 30-900 tCO2

3. Ignores degradation emissions from logging concessions

4. Approach Ignores soil pool

5. Doesn’t account for avoid deforestation demonstrated in REDD+ early action programs

6. Doesn’t distinguish between variable threat by land use and forest type

2. DRC is HFLD country so adjustment to pure historical baseline is appropriate

3. Nested REL Modeling approach to be proposed to capture emissions projected into future by land use type but maintain envornmental integrity at jurisdictional level in REL.

Section 11: REL and Deforestation Risk

Future Mai Ndombe Province Land-use Based REL Separate reference levels for each concession

Nested RELs

Monitoring, Reporting and Verification

ER-Program Data will be fully integrated into the National Forest Monitoring system for REDD+ : 1. REDD+ Registry 2. Terra Congo (satelitte land monitoring system)

ER-Program MRV system based on

• National Forest Inventory • Greenhouse Gas Inventory • Baseline 2010 FACET forest cover map • Will be tightly integrated with REL • Proposed scope deforestation and degradation

and all above and belowground biomass pools (soil very significant but not included yet in REL)

Section 13: Timetable

• ER Program Design – 6-12 months

• ER Program implementation 12-18 months

0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76

Calculate Baseline …

Identify Deforestation …

Construct Baseline Forest …

Prepare Jurisdictional …

Consult Stakeholders

Obtain National Approval …

Identify Leakage

Mitigate Leakage

Quantify Unmitigated …

Design Monitoring Program

Contract with Validator

Interface with Validator

Register Baseline

Conduct Monitoring

Resolve Stakeholder …

Implement Safeguards & …

Quantify Net Reductions …

Reconcile Project & …

Non-Permanence Risk …

Write Monitoring Report

Contract with Verifier

Interface with Verifier

Register Offsets (Optional)

Supply Buffer Credits

Future Mai Ndombe - Jurisdictional ER Program Timeline

weeks

Section 14: Financing Plan

• $20M Annual Fixed ER Program Cost Estimate

• $Donor Funded Start Up Financing ?

FCPF-CF

FIP

NORAD

• Potential to Reduce Emissions to earn up to $120M per year in

Revenues

Result Based Sustainable Financing

Investment in Enabling and

emission reducing Activities

MRVed ERs

FCPF and others buys ERs from National REDD+ Fund

National REDD+ Fund:

1-PES to participants based on contribution to MRVed results

2-Cover program management costs

3-Covers National MRV system

National REDD+ Fund:

Assesses proposals for program expansion

Proceeds from sale of ERs go to the

ER-Program:

- Core management costs (fixed %)

- National MRV system (fixed %)

- Program activities (enabling and

emission-reducing in Program area)

Performance based payments as

MRVed (PES scheme)

- Emission Reduction Impact (based on MRV)

- Area of action (e.g. number of ha under

agroforestry, under RIL, )

- Volume of activities implemented (no of

improved cook-stoves, no of improved kilns)

- Opportunity costs

- Source of investments (public/private)

Key Messages • DRC is the most important HFLD country. Its needs are very different than those of

Brazil or non HFLD countries. It should be treated differently.

• DRC is committed to protecting its forests, and doesn’t want charity, it wants to earn

ERs but it must have a realistic REL that allows it to earn enough revenue from REDD

to make REDD a viable economic alternative to increasing logging to fuel development.

• Mai Ndombe will provide a unique opportunity for the international community to

explore how public and private financing can support a public private partnership to

deliver large scale REDD+ in an HFLD country.

• We are committed to developing this ER Program and hope the CF will be a

cornerstone customer, but realize we have to find customers for the entire program to

make it viable, so need to design it flexibly to support multiple revenue streams.

• How to move quickly but not lock in early limitations – adaptive program.