ENABLING PROGRAMMATIC-LANDSCAPE LEVEL INTERVENTIONS FOR CLIMATE CHANGE

WORLD BANK CARBON FINANCE UNIT

Presenting author: Neeta Hooda, Senior Carbon Finance Specialist, World BankCo-authors: Andre Aquino, Senior Natural Resource Specialist, World Bank

Donna Lee, Independent Consultant

Land and Poverty ConferenceMarch 25, 2014

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• Two of the greatest challenges of the 21st Century are:1. Rising Global Food Demands

o The food crises of 2008, 2010, and 2012, as well as continuing food price volatility, underscore the vulnerability of the world’s food system to climate events

o FAO estimates that by 2050 the world population will exceed 9 billion, requiring increasing overall food production by some 70% - (FAO, 2009)

2. Climate Changeo Expected impacts from climate change are also significant, for example in Africa where key staple crops (e.g.

maize, sorghum, millet, groundnut, cassava) are expected to be negatively affected, losing between 8 to 22 percent of productivity by mid-century - (Schlenker and Lobell, 2010)

Land use (including forestry and agriculture) is estimated to be between 27 to 34% of global GHG mitigation potential to 2020, and plays a key role in ensuring future food security.

- (UNEP – Emissions Gap Report, 2013) & (World Bank ,2012)

• A ‘Landscape Approach’ aims to manage natural capital in an integrated manner to meet needs of present and future generation. – More recently landscapes have been linked to efforts to increase climate change

resilience while mitigating the effects of climate change itself

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THE NEED FOR A ‘LANDSCAPE APPROACH’ TO CLIMATE CHANGE

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• The term ‘Integrated Landscape Management’ (ILM) is used by a number of communities of practice, each with its own focus and objectives

• Common to the literature on ILM are several key elements:1. Multiple, agreed objectives about land uses and its benefits2. Cooperative management at multiple scales-national, jurisdictional

and local3. A scale of intervention that encompasses a landscape, or an area of

land where multiple uses are occurring (e.g. farming, conservation/protected areas, extractive activities, urban development, etc.)

4. A multi-stakeholder, participatory process that together are planning, taking decisions, implementing, and monitoring

AN EMERGING OPPORTUNITY: INTEGRATED LANDSCAPE MANAGEMENT

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FOR EXAMPLE:

Participatory Forest Management

Increased agricultural productivity

Improved cooking stoves / biogas

Intensified livestock management

Integrated Landscape Management

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Institutional Challenges

• National Level: Many countries do not have the institutional capacity to host multi-stakeholder dialogue and negotiations

• International Level: institutions support initiatives that narrowly target single issues within the landscape

Policy Challenges

• National Level: climate change policy is rarely consistent (and often in direct conflict) with other sectoral policies

• Policies that support conventional agriculture typically prevail over those that support sustainable, climate-smart practices

• Development planning is short term compared to land use dynamics

Financing Challenges

• National Level: incentives are created through policies and as well as fiscal measures (e.g. agricultural subsidies, concessional loans by development banks, etc.)

• International Level: focus is placed on particular aid priorities, such as agriculture, energy, forestry, industry etc.

• Private Sector: investments tend to focus on supply chains from specific commodity markets down to farm level production and not on a holistic approach to land management, which are seen as a government responsibility

CHALLENGES WITH LANDSCAPE APPROACHES

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• RBF involves testing mechanisms whereby the country (or actors within the countries) would receive payments against demonstrating results towards sustainable landscapes

• These results could be: 1. Proxies to emissions reductions, such as policy reforms that create an enabling

environment to reducing deforestation or investments towards law enforcement or towards creating incentives for agriculture expansion into degraded areas (as opposed to expanding into primary forests);

2. GHG emissions reduction from deforestation verified by a third party

POTENTIAL CATALYST: RESULTS-BASED FINANCING (RBF)

Intermediary Indicators• XX HAs under community

management• YY HAs under conservation

agriculture• Land use plan adopted• …

Emissions Reductions• Measured against an agreed

baseline and verified by a third party

Y1

Y2

Y3

Y4

Y5

…

Y

30ILMsustainability and scale up

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FCPF & BIOCF: WORLD BANK FINANCING INSTRUMENTS FOR REDD+

• Two global funds managed by the World Bank that aim to pilot results based financing for REDD+ by making payments for emission reductions:

Forest Carbon Partnership Facility (FCPF)• The FCPF’s Carbon Fund is designed to pilot performance-based

payments for emission reductions from REDD+ programs in a small number of FCPF countries (around 6)

The BioCarbon Fund (BioCF)• Through the Initiative for Sustainable Forest Landscapes (ISFL)

the BioCF promotes and rewards GHG emissions reductions from the land sector, including REDD+

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CASE STUDY: ETHIOPIA

Name of Jurisdiction: Oromia Region

Duration: 20 Yrs. (2015-2035)

Name of Managing Entity:

National co-ordination:

National Level framework to foster integrated interventions:

Oromia Forest and Wildlife Enterprise (OFWE), Oromia President’s office

National REDD+ Secretariat; CRGE

Ethiopia Strategic Investment Framework; Climate Resilient Green Economy

Main Driver of Deforestation: Agricultural expansion, Fuelwood consumption

Estimated GHG Mitigation Potential: 261 million tCO2e (over a 20 year period)

Objective: This program uses an integrated landscape approach to address deforestation in the Oromia region of Ethiopia while improving agricultural production and access to rural energy

Key Interventions & Activities : Participatory forest management (PFM) Fuel efficient cookstove program Improved regulatory framework (land

tenure and land use planning) Climate-smart agriculture Assisted natural regeneration Integrated crop-livestock-forestry

systems Promotion of alternative livelihoods

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CASE STUDY: ZAMBIA Name of Jurisdiction: Luangwa Valley - Eastern and Muchinga

Provinces

Duration: 10+ Yrs.

Name of Managing Entity:

National Coordinating Entity

Luangwa Valley Ecosystem Partnership Management Initiative

National Climate Change Secretariat, Ministry of Finance, which will also house REDD

Targeted Deforestation Commodities:

National Level framework to foster integrated interventions:

Maize; legumes (such as groundnuts and soybeans), oilseeds, sweet potato, cassava, and horticultureNational Climate change Response Strategy

Other Drivers of Deforestation: Fuel wood consumption, Charcoal production

Objective: This program will promote integrated solutions for conservation and rural livelihoods.

Key Interventions & Activities : Climate Smart Agriculture and “intensified” agricultural productivity and diversification that improves soil conditions and decreases pressure on land and forests

Land use planning specially around national Parks and public forests

Access to solar energy REDD+ pilot demonstration Improved wildlife management Tourism sector development Private sector engagement for

sustainably produced commodities

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• Landscape approaches need to meet dual objectives:– Natural resource management– Sustainable economic development

• Need for strong Institutional arrangements to coordinate multiple stakeholders to foster decision making, and delivery of services across sectors

• Need for technical support on land use planning and adoption of new land management technologies

• Enabling environment and policy framework so communities can benefit from land based ecosystem services, and conditions are created for private sector investment

• Results based climate finance offers an opportunity to structure interventions, and incentives to ensure sustainability of landscapes

CONCLUSIONS:

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Thank you!

Neeta Hoodanhooda@worldbank.org