Developing Incentives for Reducing Emissions from

Deforestation and Degradation (REDD)

The Readiness MechanismSome ideas for your

consideration

next steps

FCPFJuly 10, 2008

The Readiness Plan is the extension of the R-PIN:

will build on information provided will demand additional detailed

description on how REDD strategies will be prepared

Readinessdefined

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.

A monitoring and verification system designed and implemented

REDD infra-structure established: National coordination of activities, Ownership

of ER, Distribution of ER revenues

DraftReadiness

Process

Grant A

greement for R

eadiness

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 ($)

•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

REDD countries implement the Readiness Plan

1st Phase(U$200,000)

2nd Phase

3rd Phaseif needed

R-Plan

Review

Country “ready”

Readiness Phases

and

implementation

Preparation of R-Plan

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

Strategy development & consultation

Identification of most effective and efficient strategies (incl. policy changes)Methodology work (Ref. emission level)Design of Monitoring systemIdentification of Investment needs

Implement. of monitoring

Implementation of monitoring system(co-financing from other partners needed)

Implement. of Strategy

Physical investments in projects, eg.Investments in infra-structure for forest concessions, demarcation of indigenous reserves, parks; economic alternatives; community forestry programs, etc.

Demonstration Activities

Payment for emission reductions from demonstration activities

FCP

F Readiness

UN

-RE

DD

, bilateral donors, NG

Os, foundations? C

arbon

FIF?

REDD Strategies

draft Checklist of issues to be considered

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

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

REDD Strategies

DraftChecklist of issues to be considered

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.

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?

DraftRisks and trade-off

assessment

Capacity assessm. And time for impl.

Carbon effectiveness

Cost effectiveness

Social and env. Benefits & impacts

Increase of protected areasCommunity forestry progrImprovement of law enforc. Forest industry improvementReforestationIntensification of soy bean Certification campaignIndigenous demarcation.Regulatory approaches…

Etc.

RE

DD

Strategy

options

Factors to be considered

Evaluation will be different depending on the time horizont

REDD Strategies

Checklist of issues to be considered

What kind of “REDD infrastructure” will be needed to manage REDD? 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?

REDD Strategies

Checklist of issues to be considered

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

distributed? 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?

Measuring, Monitoring

and Verification

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

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.

Measuring, Monitoring

and Verification

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

4. Assess availability of national data sets and capacity:1. Land cover and land cover change historic data2. 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

Reference Scenario

How could we get started?

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: 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.

How to get started?

1. To access the US$ 200,000 to prepare the Readiness Plan: Simplified proposal for activities how to

prepare and submit to FCPF1. How will you spent the 200,000?

2. Sign Grant Agreement1. 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

3. Template for Readiness Plan Under preparation, but builds on R-PIN

Draft template for R-Plan

under preparation

REDD Implementation Schedule (example)1-3 4-6 7-9 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

1. Developing a REDD Strategy1.1 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 …

2. Designing and Implementing a Monitoring System

2.1 Data gap analysis2.2 TORs design study2.3 Design study2.4 Consultations2.5 Implementation 2.5.1 Contracting of satellite images……

3. Developing a Reference ScenarioNational 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 xxBiomass field estimates across all land-uses, incl. deforestation and degradation Terms of Reference for consultants Subcomponent xx Subcomponent xx

Projection and modeling of future emissions from deforestation and degradation Terms of Reference for consultants Subcomponent xx Subcomponent xx

Stakeholder consultations on Reference Scenario

Months (in the Form of a Bar Chart)

Wrap up

These are initial thoughts. We would appreciate inputs and ideas

Potential for discussion at next meeting