Legal and Insitutional Structures for REDD+: International

and National Landscapes

Duncan MarshThe Nature Conservancy

REDDexJuly, 2010

International Institutional Arrangements

• International Negotiating Body: UNFCCC

• Multilateral Funding Vehicles for REDD+– Forest Carbon Partnership Facility (FCPF)– UN REDD– Forest Investment Program

• (under World Bank’s Climate Investment Funds)

• Bilateral Donors

• Global REDD+ Partnership – coordinating partnership, emerged from “Paris-Oslo process”– Mobilize funding– UN REDD and FCPF to contribute support services

Institutional Landscape

International Institutional Arrangements

Global REDD+ Partnership

5

FCPF = A Partnership to Make REDD+ Happen37 Countries and Two Mechanisms

Readiness Mechanism

READINESS FUND

Capacity Building(2008-2012?)

Target ~$185 millionAvailable $115 million

Carbon Finance Mechanism

CARBON FUND

Emission Reductions(2011-2015?)

Target ~$200 millionPledged $55 million

6

FCPF: The Big Picture

• Pioneered REDD readiness preparation process: R-PINs, R-PPs, technical review

• Most countries now actively preparing for readiness

• Due to high demand, REDD Country participation increased from 20 to 37

• Carbon Fund under design; aiming for launch in late 2010

• 37 REDD Country Participants

• 11 Readiness Fund Donors ($115 m)

• 5 Carbon Fund Participants ($55 m)

• 6 Observers

CONTRIBUTORS

AFDAustraliaDenmarkEuropean CommissionFinlandGermanyJapan

OBSERVERS

Forest-Dependent Indigenous Peoples, Private Sector,

International Organizations, NGOs,

UNFCCC Secretariat, UN-REDD Programme

FCPF: Composition of 2nd Participants Committee

REDD COUNTRIES

ArgentinaColombiaCosta RicaDRCGabonGhanaKenya

MexicoNepalPanamaPapua New GuineaSurinameTanzaniaVietnam

NetherlandsNorwaySpainSwitzerlandThe Nature ConservancyUnited KingdomUnited States

FCPF UN REDD FIPGlobal REDD+

Partnership

Chairs1 REDD country; 1 financial contributor

1 REDD country; 1 UN agency

6-month co-chairs: Japan, PNG; then Brazil, France

Membership Balance

1/2 REDD countries; 1/2 RF donors and CF contributors

REDD countries: each region: 1 full, 2 alternate members (up to 9); Donor countries: 3 full (by size of contribution); UN agencies (UNDP, UNEP, FAO)

NGO participation observers

1 full; 3 observers (1 each REDD region; 1 fr dev’d country)

2 observers + 2 alternates ??*

IPs participation observers2 observers + 2 alternates ??*

Business participation observer

2 observers + 2 alternates ??*

IGOs participationobservers (UN REDD, UNFCCC, GEF, FIP)

observers (FCPF, UNFCCC, GEF)

observers: FCPF, UN REDD, UNFCCC, GEF)

UN REDD and FCPF contributing support

Private direct participation yes no no no

Multilateral REDD+ institutions: Governance characteristics

National-Level Institutional Arrangements

• Implementation framework needs to cover legislation and policy instruments that help institutions to govern REDD program (financing mechanisms, institutional mandates, stakeholder engagement, data management, etc.)

• Legislation – – Existing Laws: eg, Costa Rica, Mexico and Argentina– Proposed Laws: eg, Republic of Congo

• Mexico, Costa Rica, for example, have existing financing mechanisms and institutions that other countries could learn from

• No one size fits all, but general principles apply.

Variations in Countries’ Institutional Infrastructure and Needs

Top-Level of Structure: National Committee -- DRC

Lead Agency in Kenya: Ministry of Environment and Mineral Resources

MEMR

NEMA Secretariat at MEMR

PROGRAMS OFFICEPolicy, Law and Strategy

Adaptation Programs Division

Monitoring & Evaluation Division

Research, Early Warning and Disaster Management Division

Communications, Education and Awareness Division

Emissions Trading, CDM and Technology Transfer

Division: the DNA

REDD, Land Use and Land Use Change Division

Key Players:Government, Local Authorities Universities, Private Sector, Civil Society/ NGOs

Key Players:Inter Dep’t committee of experts on M&E, External M&E experts, Internal Auditors, External Auditors, Office of the PM

Key Players:KMD, Nat’l Lands Information Management Systems, CC Expert Group, KFS, KWS, KASALs, FAO & other local and Int’l orgs & dev’t partners

Key Players:Government, Universities, NEMA, Media Training Institutions, Civil Society/ NGOs, Local & Dev’t Partners

Key Players:IPC, NEMA, Gov’t, Local Authorities, KIRDI, KIPI, KEBS, KNPC, NGOs, Local and foreign experts and Dev’t partners

Key Players:Gov’t, KFS, KARI, KEFRI, NEMA, ICRAF, ICIPE, Local and Int’l NGOs & Dev’t partners

Thank you

• Additional slides

FCPF Governance

Participants Committee (PC) An elected subset of the PA with equal

numbers of Donors and REDD Countries

Participants Committee (PC) An elected subset of the PA with equal

numbers of Donors and REDD Countries

Facility Management Team (FMT)(Bank)

Facility Management Team (FMT)(Bank)

Technical Advisory Panels (TAP)

Technical Advisory Panels (TAP)

Carbon Fund Participants Committee

Carbon Fund Participants Committee

Participants Assembly (PA) All Eligible REDD Countries,

Donors and Carbon Fund Participants

Participants Assembly (PA) All Eligible REDD Countries,

Donors and Carbon Fund Participants- Forum for exchange of information- Meets at least annually - Opportunity for ‘subgroups’ to meet and discuss experiences, elect their representatives

Primary decision making body, including all policy issues

Decision making on specific carbon transactions

Official ObserversOfficial Observers

ReadinessFund

(Bank as Trustee)

CarbonFund

(Bank as Trustee)

Bank facilitates partnership and ensures compliance with policies

Provide external technical Advise and Assessments

16Carbon Fund

From Readiness to Carbon Finance

Selects countries

based on R-PIN

PC Assesses R-PPPC Assesses R-PackagePC

• Select ER Program

• Sign ERPA

Carbon Fund Particip-ants

1. REDD plus Strategy2. Reference Scenario3. Monitoring System4. Management

arrangements

“REDD ready”

PREPARATION (Readiness Fund)IMPLEMENTATION

(Carbon Fund)

World Bank support (readiness preparation + fiduciary and safeguards) throughout

DRC Example for an Implementation Framework Process

• Most R-PPs provide a comprehensive arrangement that includes all the relevant ministries and other stakeholders

• However, there are three classes of problems:– Assuring high enough political profile– Making the consultative bodies powerful enough and broadly

representative enough – Overcoming sectoral constraints about REDD (agriculture, mining, local

government)

• Most countries achieve some, but rarely all of these conditions

• Important to create a top-level coordinating body to facilitate cross-sectoral coordination

National Readiness Management Arrangements

Operations

Capacity, Reforms & Investments

Readiness• Diagnostic• Reference Scenario• REDD Strategy• Monitoring System• REDD management

structure

• Institution strengthening• Forest governance and information• Sustainable forest management• Investments outside forest sector

• Payments• Performance-based

The Three Phases of REDD+