Title: Reducing Emissions from Deforestation in Developing Countries COP11 Agenda Item
1Reducing Emissions from Deforestation
in Developing CountriesCOP-11 Agenda Item
6
- the katoomba group
- São Paulo, Brazil
- October 4, 2006
- www.RainforestCoalition.org
2Papua New Guinea
3Climate Objective
- Carbon-Neutral
- while fulfilling our social and economic
priorities. - Land Use Net rates of deforestation must be
slowed, halted and reversed Costa Rica, China - Transportation Replace carbon intense fossil
fuels with clean-burning technology and renewable
bio-fuels Brazil, Holland. - Energy Sufficient hydro potential and natural
gas to fuel our economic growth aspirations.
Environmentally and Socially Sustainable Economic
Growth
4Problem
- UNFCCC and KP
- No Meaningful Solutions
- Deforestation No incentive to Reduce Emissions
from deforestation - Transportation No real incentive for National
transition to clean and renewable fuels in
transportation - Energy CDM offers too much red-tape and low
carbon prices to facilitate energy shifts at
small scale.
5Emission Sources
6Obstacles
7Deforestation Drivers
-
- Agriculture Soya, Coffee, Cocoa, Sugar, etc.
- Logging Low value exports, unsustainable
practices. - Development Roads, power-lines, social services,
etc. - Population Urbanization growth drives above.
Perverse Incentives!
8Rainforest Coalition
- Bolivia
- Central African Rep.
- Chile
- Congo
- Costa Rica
- DR Congo
- Dominican Republic
- Fiji
- Gabon
- Guatemala
- Nicaragua
- Panama
- Papua New Guinea
- Solomon Islands
- Vanuatu
9Rainforest Coalition
CfRN
Interregional Policy Development Consensus
10COP-11 Agenda 6 Summary
- Deforestation Real Threat to Climate Stability
- Emissions Resulting Emissions are Significant
- Policy Incentives Seek flexible basket of
voluntary instruments to accommodate national
situations. Market forces drive most
deforestation and Emissions Markets may hold key
to solution. - Process Parties refer to SBSTA with goal to
reach recommendations by 2007
11Climate Change Multilateral Cooperation
- Common but Differentiated Responsibilities
- Industrial to Developing Maintain philosophy of
mandatory reductions that finance voluntary
instruments by developing nations. Support
Sustainable Development. - Amongst Developing Immense difference between
developing countries. Need flexible basket of
voluntary emissions reduction instruments in
present form, CDM alone is not enough.
North to South Flexible Basket of Positive
Incentives
12COP-11 Agenda 6 Positive Incentives
- Flexible Basket of Voluntary Incentive
- (Diversity of National Circumstance)
- Official Development Assistance Approach (ODA)
- Voluntary National Approach (Voluntary Annex
C?) - Flexible Scale Approach National Circumstance
- Aggregate under UNFCCC Bilateral and/or
Multilateral Funds and Emissions Trading
Agreements - Optional Protocol within UNFCCC
Voluntary Multi-Staged Not Mutually Exclusive
13The Brazil ProposalGeneral Observations
- Support
- Objective
- Voluntary
- National
- Base Scenario
- Credit / Debit System
- Questions
- Demand
- Pricing Logic
- ODA cash flow stability
14COP-11 Agenda 6 Price vs. Objectives
- AAU/ERU
- National
- Fixed targets
- Minimal transactional risk
- Higher atmospheric value
- REDD (Annex C?)
- Voluntary Reductions
- National Scale
- Performance Risk minimized
- High atmospheric value
- Higher Social value
- Organic or Fair Trade
Price
- CER
- Positioned as cheap mechanism
- Carries performance risk buyer must
replace credit - Lower atmospheric value supplemental
credit
Atmospheric Social Objectives
15COP-11 Agenda 6 Value ? Social Benefit
- Significant source of carbon emissions currently
outside frameworks. - Increases the flexibility of developing countries
through a national approach. - Significant new revenue streams to addresses
poverty in rural areas with clear metrics to
access effectiveness. - Underpins MDG objectives related to environment,
poverty, gender equality, health, etc. - Major biodiversity conservation benefits
- Supports efforts against desertification and soil
erosion - Leads to watershed protection and potable water
supply
16COP-11 Agenda 6 Additional Deeper Cuts
? AAU --- JI --- CDM ?
KP1 (- 6)
Additional
? AAU --- JI --- CDM ?
REDD
KP2 (- 10?) REDD - 5?
New Total -15?
NEW CREDITS DEEPER CUTS
17Key Messages
- Drivers Leading drivers are identifiable. Must
overcome perverse incentives and opportunity
costs of alternative land uses -- both locally
and internationally. In most cases, higher
carbon incentives will drive greater emissions
reductions from deforestation. - Solution Possible Technology, methods and
markets available now to accurately measure
changes in carbon stocks and trade relevant
credits at a National scale. Challenge is
implementation (standards, policy, etc.)
18Key Messages
- Policy Incentives Diversity of national
circumstances justifies a flexible set of
positive incentives -- ODA may be important to
get started quickly, but markets are likely the
best sustainable finance solution. - Future Deforestation must feature prominently
in future climate stability actions. Continue
cross-regional consensus -- Bolivia, Central
African Republic, Congo, Costa Rica, Dominican
Republic, DR Congo, Gabon, Ghana, Guatemala,
Honduras, Indonesia, Kenya, Lesotho, Nicaragua,
Panama, Peru, Papua New Guinea. - International funding needed immediately for
analysis, capacity building,
pilot market activities.