The Readiness Mechanism-Some ideas for your consideration next steps

							Developing Incentives for Reducing Emissions from Deforestation and Degradation (REDD)

The Readiness Mechanism Some ideas for your consideration next steps

FCPF
July 10, 2008

The Readiness Plan is the extension of the RPIN:  will build on information provided  will demand additional detailed description on how REDD strategies will be prepared

 A REDD reference emission level established, based on historic emissions and modeling of future emissions. Ideally follows guidance from UNFCCC.  An economically effective, efficient and socially equitable REDD strategy formulated and vetted through a meaningful policy/stakeholder consultation process.

Readiness defined

 A monitoring and verification system designed and implemented
 REDD infra-structure established:
 National coordination of activities, Ownership of ER, Distribution of ER revenues

1st Phase
(U$200,000)

REDD countries prepares the Readiness Plan
•Definition of objectives/strategies and responsibilities •First Planning Workshop •Stock taking of existing information and assessment of knowledge gaps •Preparation of main ToRs for Plan •Preparation of Consultation Plan •Identification of potential partners ($)

Grant Agreement for Readiness

R-Plan Review

Draft Readiness Process

2nd

Phase

REDD countries implement the Readiness Plan
•Identification of most effective and efficient strategies (incl. policy changes) •Methodology work (Ref. emission level) •Design and implementation of Monitoring system •Identification of Investment needs

Country “ready”

3rd Phase if needed

Preparation of R-Plan

Scoping and gap analysis Setting of objectives / defining activities Preparation of Stakeholder consultations plan

UN-REDD, bilateral donors, NGOs, foundations?

FCPF Readiness

Readiness Phases
and implementation

Strategy Identification of most effective and development & efficient strategies (incl. policy changes) consultation Methodology work (Ref. emission level) Design of Monitoring system Identification of Investment needs Implement. of monitoring Implementation of monitoring system (co-financing from other partners needed) Physical investments in projects, eg. Investments in infra-structure for forest concessions, demarcation of indigenous reserves, parks; economic alternatives; community forestry programs, etc. Payment for emission reductions from demonstration activities

Implement. of FIF? Strategy

Carbon

Demonstration Activities

 What are the drivers of deforestation and what are the links to other sectors?
 Drivers of deforestation? Sectors, policies, behavior?  Stewards of forest protection?  Strengths and Weaknesses of current public interventions and policies

REDD Strategies
draft Checklist of issues to be considered

 What are the opportunity costs?– helps to set priorities and provides better understanding of dynamics of DD
 Difference between opportunity costs and costs to implement strategies to reduce emissions  Draft guidance on methods is under development  Presentations and publications are available:
 http://go.worldbank.org/WGOVBCRDG0

 What are the policy and regulatory changes that each country could promote?
 Studies could be done by sector, region or country wide – starting with an assessment of the situation
    Fiscal policies, removal of subsidies Analysis of institutional capacity and cooperation Land tenure security, Forest law and governance, corruption, etc

 What priority investment programs could be promoted? What are their costs? What is the planning horizon?
      Institutional capacity building and strengthening Community forestry Zoning Forest industry Protection forests Promotion of economic alternatives, tax exemptions, subsidies  Research and Development, etc.

REDD Strategies
Draft Checklist of issues to be considered

 What are the political, social and institutional risks and trade offs of proposed actions
 How to assess impacts – “Strategic Environmental Assessment”  What are the affected social groups?  Would action enhance biodiversity protection?  Institutional capacity assessment?  What are the political and institutional roadblocks?

Factors to be considered
Capacity assessm. And time for impl. Carbon effectiveness Cost effectiveness Social and env. Benefits & impacts

Increase of protected areas

Draft Risks and trade-off assessment

Community forestry progr
Improvement of law enforc. Forest industry improvement

Evaluation will be different depending on the time horizont

REDD Strategy options

Reforestation
Intensification of soy bean Certification campaign Indigenous demarcation. Regulatory approaches…

Etc.

 What kind of “REDD infrastructure” will be needed to manage REDD?
REDD Strategies
Checklist of issues to be considered

 What institutional setting is needed to manage REDD in a country?
 Coordination, reporting, participation,

 How can ownership of Emission Reduction be defined in each country?
 What is the scale of implementation, and accounting?  Is there a legal framework in place that already defines ownership of “environmental services” or “carbon emission reductions” – Are attributions to forest protection defined? – Are responsibilities for land management clear? Land tenure?

 What kind of “REDD infrastructure” will be needed to manage REDD?
 How can potential future revenues be used and distributed?

REDD Strategies
Checklist of issues to be considered

 What are the current experiences with existing programs? – Can we scale up?  Are additional mechanisms needed? Individual payments – finance of programs?  Is there a link between attributers and beneficiaries?  Who manages, coordinates and controls distribution? Need for transparent, effective, equitable system.

 Relationship between national accounting and specific programs and actions?
 Explore implications of different options? – Is there a need for a National GHG Registry? – How would specific activities link up to a National Accounting System?

Potential Principles for Design of MMV System:
 Build on existing national systems  Support multicountry MMV approach as feasible  Help design MMV system to meet acceptable levels of uncertainties ….  …but flexibility in standards and approaches:
 To encourage participation  To encourage variety of approaches  To promote cost effective systems

Measuring, Monitoring and Verification

 Principle of conservatism in GHG accounting and reporting  Seek consistency and complementary with other non- GHG (i.e. forest) monitoring and reporting systems  Third party assessment of MMV system proposals.  Coordination across REDD initiatives and support.

Potential Next Steps:
1. Promote dialogue with national, international, and IPCC experts on reporting standards. 2. Consult with national experts and stakeholders, incl. IPs 3. Build on UN IPCC Guidelines for National GHG Inventories, and IPCC good practice guidance for LULUCF (available):
e.g. Sourcebook: www.gofc-gold.uni-jena.de/redd

Measuring, Monitoring and Verification

4. Assess availability of national data sets and capacity:
1. Land cover and land cover change historic data 2. Remote sensing and forest inventory interpretation and reporting capacity 3. Current and potential GHG national accounting and reporting capabilities 4. Identify gaps in current systems.

5. Design MMV system to fill in gaps, or to introduce enhanced approach 6. Integrate MMV with GHG accounting and reporting system. 7. Identify costs and possible partners for cooperation and implementation of system

 Assessment availability and quality of historic land cover change and carbon density data:
 Early step in preparation of the Readiness Plan, and assessment of monitoring capacity and needs  Develop data acquisition plan, where needed.

 Estimation of historic GHG emissions:
Reference Scenario How could we get started?

 Use existing forest inventory, carbon density maps or other approach  Establish further permanent plots for carbon density, if needed

 Projection of future emissions, via modeling, etc. (if country requests)
 Based on analysis of drivers of deforestation, and potential development strategies of country

 Setting of National Reference Scenario and submission
 National decision  External Peer review

Impact assessment

 Readiness activities should be analyzed on their environmental and social impacts during the planning process  Repeated and meaningful consultation is essential. It is not only a requirement (“World Bank Safeguard”), but a condition for success  REDD strategy development is a planning exercise where information on potential negative impacts must be made available to stakeholders and decision takers  World Bank recommends use of “Strategic Environmental Assessment” as an adequate and effective tool to evaluate potential impacts.

1. To access the US$ 200,000 to prepare the Readiness Plan:  Simplified proposal for activities how to prepare and submit to FCPF
1. How will you spent the 200,000?
How to get started?

2. Sign Grant Agreement
1. Prepare Readiness Plan
– – – – – Definition of objectives/strategies and responsibilities First Planning Workshop Preparation of main ToRs for Plan Preparation of Consultation Plan Stock taking of existing information and assessment of knowledge gaps Under preparation, but builds on R-PIN

3. Template for Readiness Plan


REDD Implementation Schedule (example) 1-3 1. Developing a REDD Strategy 1.1 Assessment of current forest and land use policies and their effectiveness; Terms of Reference Analysis Dissemination of results … 1.2 Analysis of drivers of deforestation/degradation … 1.3 Analysis of the Costs of REDD (opportunity costs and implementation costs) … 1.4 Strategic environmental and social assessment (SEA), with stakeholder consultation plan … 1.5 Analysis of policy changes and investments that are expected to be necessary to achieve REDD; … 1.6 Analysis of institutional planning and coordination of REDD, including coordination, outreach and potential REDD revenue distribution … 1.7 Analysis of capacity building needs … 4-6 7-9

Months (in the Form of a Bar Chart) 10-12 13-15 16-18 19-21 22-24 25-27 28-30 31-33 34-36 37-39 40-42 43-45 46-48

Draft template for R-Plan under preparation

2. Designing and Implementing a Monitoring System 2.1 Data gap analysis 2.2 TORs design study 2.3 Design study 2.4 Consultations 2.5 Implementation 2.5.1 Contracting of satellite images … … 3. Developing a Reference Scenario National definition of deforestation and degradation Subcomponent xx Subcomponent xx Quantification of historical rates of emissions from deforestation and degradation Terms of Reference for consultants Subcomponent xx Subcomponent xx Biomass field estimates across all land-uses, incl. deforestation and degradation Terms of Reference for consultants

These are initial thoughts. We would appreciate inputs and ideas
Wrap up

Potential for discussion at next meeting