BUILDING A REDD STRATEGY

FOR MATO GROSSO STATE

BUILDING A REDD STRATEGY

FOR MATO GROSSO STATE

REDDex MettingCancún - July 13, 2010

Laurent Micol

Mato Grosso State Quick facts

• Area: 903,000 km²– Amazon 51%, Cerrado 43%, Pantanal

6%

• 2.9 million people– Urbanization 76%

• Brazil’s largest producer of grain and livestock– Soybean: 17 MT in 2008 (8% of

world production), Cotton 2 MT– Cattle: 26 M heads in 2008

• Amazon’s 2nd largest timber producer– 4.0 Mm³ of logs processed in 2009

Land tenure structure in Mato Grosso

CategoryNumber of

areasArea

# km² 000 %

Indigenous Lands 68 134 15Conservation Units 73 33 4Smallholders settlements 386 43 5Private properties ~ 100,000 694 77

Registered in SLAPR 10,700 206 23Not yet registered ~ 90,000 488 54

Total 903 100

Deforested areas in Mato Grosso

• Deforested areas: 37% of the state’s territory – 55% deforested after 1990

• Expected increase in demand for agriculture land

• Average opportunity cost estimated to $ 1,500 / ha, expected to increase

Remaining forests

Remaining savannas

Main roads

Deforested areas

‘

Deforestation rates in Mato Grosso: under control?

96 97 98 99 00 01 02 03 04 05 06 07 08 090

2,000

4,000

6,000

8,000

10,000

12,000

14,000Deforestation in Mato Grosso's Amazon region, 1996 - 2009

km²

SLAPR Curupira Operation

Jurupari Operation

Decentralization of Forest Management, Soy Moratorium

PPCDQ-MT

Stabilization of agriculture and cattle ranching production,

reduction of logging and growth of forest management

Average 8-10% per year agriculture and cattle ranching expansion

State REDD strategy construction process

• Early discussions with government and agriculture sector

• Zero Deforestation Pact

• Participation in Bali

2007 2008 2009 2010

• ICV study on REDD potential in Mato Grosso state

• NW Mato Grosso Pilot Project feasibility analysis

• Discussion on pilot project in the Xingu region

• MoU with California and start of GCF process

• Plan to Control Deforestation, with 89% reduction target

• Creation of State Climate Change Forum

• Reference document for Mato Grosso REDD Program (COP XV)

• REDD working group in Climate Change Forum

• REDD Plan and bill under preparation

• Climate Policy bill under preparation

• 9 REDD projects under preparation

Components of REDD plan

General approach

Scope, Target, Baseline & Additionality

Legal, Technical and Institutional Framework

Climate change and REDD bills, Carbon accounting and MRV,

Registry of emissions reductions,Benefit sharing mechanism,

Program management

Actions‐ Governance‐ Pilot projects‐ Sectoral Programs

Funding Strategy‐ Public funds‐ Voluntary markets‐ Regulated markets‐ Security fund

General approach and targets

• Reference scenario based on historical emissions– Estimate future deforestation?– “crediting” baseline?– Baseline and target for cerrado

and for degradation?– Estimate of emissions?

• Additionality: deforestation reduction AND agriculture production increase

• Generate REDD Certificates (Credits)?

Deforestation reduction target in Mato Grosso’s forest area, 2006-2020

reduction

Technical framework: registry system of projects and programs

Notification Compulsory

Pre-register Voluntary

Register Voluntary

Process Characteristic

Legality

Compliance with Principles & Criteria

Emissions reduction performance

Criteria

Carbon accounting

PlanningFund raising

Fund allocation or REDD crediting

Aim

REDD Actions

• Cotriguaçu REDD+ project (Northwest Mato Grosso): State Government, ICV, TNC, ONFI

• Xingu indigenous project: ISA, EDF, IPAM• Other 6 smaller projects

• Private forest reserves conservation (above 80% legal requirement) – linked to SLAPR

• Forest management practices improvement• Cattle ranching intensification• Smallholders settlements sustainability• Indigenous lands protection and sustainable development• Conservation Units effective protection and area increase

Pilot Projects

State-wide Programs

Main challenges and next steps

• Integration with federal level (parallel processes for REDD bills)

• Lack of technical guidance and framework=> adopt/ use FCPF approach/ templates?

• Insufficient government leadership and human & financial resources

• GCF process…=> California: small C offset market with high standards=> potential as platform for state-level REDD approach development and fund-raising?

• Define and implement funding strategy