private sector

Kasigau Corridor REDD+ project: Lessons for national readiness processes

Tremendous growth in REDD+ pilot and demonstration projects has been observed following the Bali Action Plan and Cancun agreements. The question is, how can lessons from such projects be used to enhance national-level REDD+ Readiness processes?

A recent study published in Climate Policy draws on the example of a case study from Kenya – the Kasigau Corridor REDD+ project – and attempts to shed light on how this subnational-level private-sector-driven REDD+ project interacts with and contributes to national-level technical, policy, and institutional readiness for REDD+. The Kasigau Corridor REDD+ project has managed to bundle up REDD+ implementation with community-level employment opportunities

“The Kasigau Corridor REDD+ project led by Wildlife Works Carbon was chosen from among many projects in Kenya and Africa because it is the world’s first registered REDD+ project issued with Verified Carbon Units under the Verified Carbon Standard and is one of the few REDD+ projects currently selling REDD+ credits on the voluntary market,” explains Florence Bernard, Associate Scientist at the World Agroforestry Centre and study lead author.

From the study, she explains a number of key innovations brought by the Kasigau Corridor REDD+ Project, including demonstration that REDD+ has potential for implementation in dryland forests. “This is likely to be a strong incentive for Kenya and other countries to initiate projects in other dryland forest ecosystems,” says Florence Bernard.

According to Bryan Adkins, Director of Regional Engagement at Wildlife Works Carbon and co-author of the paper, the project has managed to bundle up REDD+ implementation with community-level employment opportunities, something that has informed the design of strategy options for addressing drivers of deforestation and forest degradation while strengthening community engagement and prioritizing ‘pro-poor’ REDD+ activities at the national level. “In addition, there exists a transparent benefit distribution disbursement process for carbon-derived revenues in Kasigau, on which the national level could capitalize,” says Bryan Adkins. 

Another key successful feature of the Kasigau Corridor project was the ability of Wildlife Works Carbon to negotiate upfront investments with external private sector and therefore secure start-up capital needed for initial project implementation and operational costs. “While this private sector finance model might be of further interest at the project level, this should also urge the national level on attracting further private-sector investments in REDD+ pilots and demonstrations projects, especially at a time of public finance shortage for Readiness and REDD+ in general, as well as on promoting a more attractive investment climate for private sector ” explains Florence Bernard.

While the national REDD+ Readiness process in Kenya is beginning to learn and draw from local level projects through such private sector project lens, dialogue with and between partners is crucial in order not to miss out on potential benefits from interactions with subnational-level actors.

The study further emphasizes the need for developing frameworks and modalities for stakeholder participation, a robust private sector engagement process, and platforms for cross linkages at different levels.

The article is available under open access: Florence Bernard, Peter A. Minang, Bryan Adkins & Jeremy T. Freund (2014): REDD+ projects and national-level Readiness processes: a case study from Kenya, Climate policy, DOI: 10.1080/14693062.2014.905440

To link to this article: http://dx.doi.org/10.1080/14693062.2014.905440

Social actors that could make or break agriculture

Sustainable agriculture is driven by a host of factors, key being social actors with the ability to influence decisions and choices by farmers.

 A recent study on Social actors and unsustainability of agriculture published in Current Opinion in Environmental Sustainability identifies who these actors are, ways they could make agriculture unsustainable, and interventions that could work for sustainability.

Actors in agricultural landscapes whose actions can threaten farm sustainability include investors and creditors who incur lose andA discussion forum with farmers in Cameroon. Social actors such as investors can influence decisions and choices by farmersabandon farms due to low economic returns, neighbors and environmental activists engaged in conflict because they are negatively affected by farming activities, customers concerned with quality of products, and shifting providers and farm regulators who impose restrictions. Individual interests drive these groups and their actions impact on farmer’s ability to benefit or loose from agriculture; and further influence consequent management decisions that in turn affect sustainability.

“Some actors could have either positive or negative influence on different aspects of sustainability such as customers demanding for environment friendly products,” says Florence Bernard, Associate scientist, ASB Partnership for the Tropical Forest Margins at the World Agroforestry Centre (ICRAF) who is the study lead author. She notes that such consumer behavior is encouraged as it helps to promote agricultural sustainability from an environmental perspective  but because it involves a shift in the way farm activities are conducted, it poses some risks that impact on economic sustainability, at least before farmers can begin to realize benefits to adjustments made.

Several interventions that can empower farmers to deal with risks and threats through adaptive management include implementation of macro-economic policies where governments can provide careful targeted subsidies for farm inputs and encourage availability of long-term credit facilities, reduce import tariffs and export taxes for farmers; harmonizing sectoral policies; participatory land use planning that incorporates stakeholder preferences and that also promotes social learning so that decisions made are not out of current economic benefits but are based on a future outlook that encapsulates environmental and social benefits as well.

Other incentives are payments for environmental services whereby farmers are compensated for opportunities foregone while protecting the environment as well as extension services that make use of new effective approaches such as innovation platforms that promote a two way communication mechanism amongst the various actors and stakeholders. 

The study provides indicators that can be used to identify and avoid pathways that lead to unsustainability along the process of agricultural production. For instance indicators of conducive economic policy reforms might include measures taken to reduce or eliminate market distortions and availability of long-term credit facilities to famers.s innovation platforms that promote a two way communication mechanism amongst the various actors and stakeholders.

Ultimately, sustainability depends on how systems, institutions and technologies evolve and the ability to embrace and or respond to associated changes. Being in a position to identify social actors and pathways along that process is critical. 

 

 

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Guestbook

Tony La Viña: Landscape approach is a stronger signal to REDD+

By Elizabeth Kahurani

According to Tony La Viña, a REDD+ facilitator at the United Nations Framework Convention on Climate Change Conference of Parties (UNFCCC COP 18) talks, a landscape approach holds potential to unlock ambiguities and uncertainties that threaten to stall implementation and scaling up of the REDD+  (Reducing emissions form Deforestation and Forest Degradation) mechanism.

“We are looking at the new Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) process as the future frameworkPanelists at the private sector side event organized at the sidelines of COP 18 that will merge REDD+, Agriculture, Land-Use Change and Forestry into a land use approach that might make more sense with stronger signals,” Tony said while speaking at an event organized to disseminate findings of a study on engagement of private sector in REDD+ conducted by ASB Partnership for the Tropical Forest Margins at the World Agroforestry Centre (ASB-ICRAF) and the International Institute for Sustainable Development (IISD). The event was co-organized with The International Emissions Trading Association (IETA) at the margins of COP 18 in Doha, Qatar.

Tony’s views affirm ongoing research on viable ways of Reducing Emission from All Land Uses (REALU) that is being implemented by the ASB-ICRAF. REALU is based on the premise that REDD+ is only effective to some extent as it only addresses part of the total emissions from land-use change, and implementation of the mechanism is challenged by issues to do with measurements, monitoring, unclear forest definitions, leakage, respecting local communities rights and equity.

One of the key outputs from this research that is piloting landscape approaches demonstrations sites in the Congo Basin, Latin America and Southeast Asia is a strategy on Land Use Planning for Low Emission Development (LUWES) that has been applied in Indonesia to provide a guide on multistakeholder participation and emission reduction scenarios within specific zones of a landscape, or across an entire landscape.

Indeed, from debates and future plans being discussed here at COP 18, a landscape approach seems to be the future to REDD+. With the theme Sustaining Landscapes, this will be the year when Forest Day transits from an exclusive focus on forests to encompass other land uses. “Forest Day 6 will be the last one that is organized during the UNFCCC COP. We are looking forward to building on the Forest Day experience, joining forces with a wider range of partners in agriculture and rural development, and holding a Landscape Day at the UNFCCC COP next year,” notes Peter Holmgren, Director General at the Centre for International Forestry Research (CIFOR).

Governments urged to mitigate REDD+ risks for private sector

At the side event, private sector actors underscored the role of governments in boosting private sector confidence by creating demand for REDD carbon credits and mitigating risk levels. “REDD investment credit cycles take long before they develop to a grade that investors want to buy. They require a lot of money and represent a huge amount of risk. We in the private sector are looking to the governments as the proxy for quality and assurance,” said Jonathan Shopley, Managing Director, The CarbonNeutral Company. Similar sentiments were echoed by Armin Sanhoevel, CEO, Allianz Climate Solutions GmbH.

Alfred Gichu, REDD+ focal point in Kenya noted that while at the international level there was need to create demand for the carbon market, the national governments need to have strategies and policies in place.  A key recommendation from the private sector study was that governments should encourage collaboration with private sector, provide proper governance structure and conducive environment for REDD+ implementation.

“A conducive policy environment would be one that addresses challenges to do with land tenure and carbon ownership, legal basis for private investment as well as appropriate social and environmental safeguards,” explains Florence Bernard, Programme Assosciate at ASB Partnership who led the study on private sector engagement.

Further, she noted that the benefits of involving the private sector as part of a solution to addressing deforestation and degradation go beyond meeting the current climate-finance gap, as they can also provide technical expertise, capacity building and technological innovation. “The private sector can, be part of the solution to mitigating climate change by addressing key drivers of deforestation,” Florence said.

With the title The Private Sector in the REDD+ Supply Chain: Trends, challenges and opportunities, the new study highlights  i) who are the private actors, including their areas of strength and capabilities that can be synergized to leverage on opportunities; and ii) Incentives needed to attract private sector engagement and investment at scale. These are vital steps to harnessing the potential and ability of the private sector in REDD+ efforts.

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The Role of the Private Sector in Climate Change Interventions

Side event – The Private Sector and REDD+: Trends, challenges and opportunities; Thursday, 29 November, 2012; 9:00 – 10:15 am; Diplomatic Club, Doha, Qatar

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The Role of the Private Sector in Climate Change Interventions

Involving the private sector in REDD+ (Reducing Emissions from Deforestation and Forest Degradation) will be key to its success, says a new study by the ASB Partnership for the Tropical Forest Margins at the World Agroforestry Centre (ASB-ICRAF) and the International Institute for Sustainable Development (IISD).

Funding is a major concern in the implementation of REDD+ activities and involving the private sector will be absolutely critical to scale up investment in REDD+.  It is estimated that betweenUS$17–40 billion per year is needed to realize the potential of forests to mitigate climate change.  But since 2008, funding for the REDD+ mechanism has been largely in the form of public donor pledges, which fall far below this target at an approximate cumulative figure of US$7.2 billion. To mobilize funds for meeting the needs of developing countries in climate mitigation and adaptation, a decision to establish a Green Climate Fund (GCF) was made at the last Conference of the Parties (COP 17). The GCF is intended to mobilize US$100 billion annually by 2020 and has within it a “private sector facility” that targets funds from private sector sources.

Besides increasing the scale and speed at which investment needs to flow, the private sector can also make vital contributions to REDD+ initiatives through its technical expertise. In this way, the private sector can, be part of the solution to mitigating climate change by addressing key drivers of deforestation.

REDD+ is a mechanism that aims at compensating developing countries that forgo development activities that cause deforestation. It is part of global efforts to combat climate change, encompasses the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries.

The extent to which the private sector potential is effectively used to meet climate objectives, such as through REDD+ highly depends on i) a thorough understanding of the actors, including their areas of strength and capabilities that can be synergized to leverage on opportunities; and ii) Incentives needed to attract private sector engagement and investment at scale.

These are vital aspects explored in a new study titled The Private Sector in the REDD+ Supply Chain: Trends, challenges and opportunities. The study identified several private sector actors engaged in REDD+, including investment banks seeking future investment opportunities or to become ‘’carbon neutral’’, emission-intensive industries looking to offset carbon credits for pre-compliance/compliance, multinational firms through their voluntary Corporate Social Responsibility (CSR) programmes and for branding/image purposes, companies developing REDD+ projects, brokering firms, consulting companies offering technical expertise and capacity building and auditors, among others.

A conducive regulatory and policy environment that cushions against risk is key to moving forward on private sector engagement. “Policy clarity and certainty are critical determinants of private sector involvement in REDD+, both internationally and nationally,” explains Florence Bernard, Programme Associate at ASB-ICRAF and lead author of the study. “Governments need to make a deliberate intention to actively engage the private sector in national legislation and sectoral planning.”  

Other necessary incentives for engagement involve including REDD+ in compliance markets to increase demand for REDD+ credits, ensuring clear land and carbon ownership systems, and engaging the private sector to address the fundamental drivers of deforestation. It is also crucial that the private sector’s investments are secured with performance-based payments issued directly to projects independently of national–level performance, through adequate embedding or “nesting” of projects within national level monitoring, compliance and overall accountability systems.

An in-depth discussion of these and other results from the study will be discussed at a side event organized by The International Emissions Trading Association (IETA) in partnership with IISD and ASB-ICRAF at the UNFCCC COP 18 on Thursday, 29 November, 2012 at 9:00 – 10:15 am, Diplomatic Club, Doha, Qatar.

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For the past three years, IISD (www.iisd.org)  has partnered with the ASB Partnership for the Tropical Forest Margins (www.asb.cgiar.org)  at the World Agroforestry Centre (www.worldagroforestry.org)  to deliver a project aimed at addressing these challenges through information sharing and research to encourage innovative thinking and the continuous improvement of REDD+ processes and strategies. The project engaged over 300 developing country experts who identified topics of importance and inputted into the policy research process. The final year of the project focused on two critical determinants of REDD+ success, namely:

  • Developing and implementing REDD+ safeguard information systems (SIS)
  • Fostering effective private sector engagement in the REDD+ supply chain

Ahead of COP 18, IISD and ASB-ICRAF has released a series of publications to further explore these critical issue areas. The publications are the result of substantive research that included an extensive desk study, in-country semi-structured interviews with REDD+ experts and practitioners, and regional expert meetings.

 

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