UNFCCC Workshop on Reducing GHG Emissions from Deforestation in Developing Countries

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This presentation is supported by COLOMBIA,
ECUADOR, GUATEMALA, HONDURAS, MEXICO, NICARAGUA,
PANAMA, PARAGUAY, PERU and URUGUAY

• UNFCCC Workshop on Reducing GHG Emissions from
  Deforestation in Developing Countries

Rome, 29 August 1 September
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What is ?

• Grupo Latino Americano de Discusión Sobre Bosques
  y Cambio Climático Latin American Discussion
  Group on LULUCF and Climate Change
• GLAD-CC is an informal network of LULUCF experts
  and negotiators intended to promote policy and
  technical analysis, mutual understanding and
  dialogue in Latin America before and during
  official UNFCCC negotiations.
• We are a 5 year old network, not a formal
  negotiation group in the UNFCCC process.
• We maintain an open and constant dialogue with
  other regions and countries.

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What is ?

• What weve done so far
• Two/four annual meetings since 2001
• Joint submissions (on AR-CDM, on avoided
  deforestation)
• Capacity-building seminars on AR/CDM (in many
  countries)
• Web site and name (since 2006)
• What we plan to do
• Build task forces made up of international
  experts and Latin American government officials
  aimed at discussing key issues in the AD
  negotiation process
• Main sources of funding
• Meetings UNEP, IUCN, FAO, ONF, Switzerland,
  World Bank, seeking for support for future
  meetings
• Web page maintained by CATIE (www.glad-cc.net)
• Task forces proposal seeking funding

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Deforestation in Latin America

• The forest sector in Latin America has the
  capacity to store very large amounts of carbon in
  vegetation and soils.
• However, currently it is also a large source of
  emissions due to deforestation and forest
  degradation, with the regions accounting for
  about half of total deforestation worldwide
  (approximately 6.5 million ha/yr).
• GLAD-CC countries lost around 1.6 million ha/yr
  in the period 2000 - 2005.

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Examples of drivers in the region

• Identified direct drivers in the Amazon
  rainforest include
• cattle ranching,
• extensive agriculture,
• subsistence agriculture,
• Illegal (and sometimes, legal) logging.
• In Latin America deforestation is caused mainly
  by e.g. illegal logging, energy needs (fuelwood),
  the expansion of the agricultural frontier, fire
  and illegal crops.

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Examples of drivers in the region

• Poverty is one of the main indirect drivers in
  Latin America, for people tend to move into
  forested areas and extract resources necessary
  for their survival.
• Each driver, direct and indirect, requires
  different policy approaches and represents
  different opportunity costs in various sectors of
  the society.
• There is a need for studies contrasting the
  economics and possible policy approaches of these
  circumstances.

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Projected deforestation in tropical Latin
America, 2000-2010
Source FAO
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GHG EMISSIONS FROM DEFORESTATION

• LULUCF GHG emissions in the region are in general
  very significant
• In many countries they are similar or even larger
  than emissions from energy generation (e.g.
  Brazil, Colombia, Panama, Ecuador, Peru)
• Emissions from GLAD-CC countries represent about
  740 MtCO2e yr-1

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ACTIONS UNDERTAKEN IN THE REGION

• An important amount of land is afforded some sort
  of protection
• Local projects promoting sustainable management
  while benefiting locals are on the rise
• Several governments have passed policies to
  enhance protection of forests.
• The region has experience in developing carbon
  conservation projects (around 30 registered in
  the WRI database)

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ACTIONS UNDERTAKEN IN THE REGION

• Many countries in the region have developed
  eco-tourism and environmental services programs
  as a means to generate revenue to protect forests
  (e.g. Costa Rica, Mexico, Bolivia).
• Despite all the efforts carried out by our
  countries, the forests of the region are still
  facing tremendous challenges from numerous
  development threats.

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Policy approaches

• To strengthen actions to reduce GHG emissions
  from deforestation, national institutions will
  possibly need to engage, inter alia, in
• (a) ensuring the implementation of existing and
  new measures to control deforestation,
• (b) modifying existing legislation in order to
  remove institutional/legal perverse incentives
  that increase deforestation, and
• (c) investing in programs of payment for
  environmental services related to forest
  protection.

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Positive incentives

• National level
• Institutional capacity building to allow the
  implementation of GHG emission reduction policies
  in the land use sector and to strengthen agencies
  in charge of monitoring and controlling
  deforestation as well as changes in carbon
  stocks.
• Technical capacity building and technology
  development and transfer.
• Consolidation and enforcement of protected
  areas.
• Approaches should take into account specific
  national circumstances and enable a variety of
  measures while building on existing positive
  experiences

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Positive incentives

• Local level
• Financial incentives to
• compensate for the opportunity costs of land
  use,
• to engage in sustainable agricultural practices,
  and
• to cover transaction costs

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Funding

• FAO 1997 estimates that the forestry sector alone
  is funded only 27 percent of what it requires.
• The United Nations Conference on the Environment
  and Development (1992) estimated the cost of
  protecting tropical forests through sustainable
  development at 30 billion per year.
• Innovative approaches to attract new and
  additional funds to the forest sector in
  developing countries are required to reduce
  forest loss and avoid GHG emissions.

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Sources of funding

• Capacity building ODA, bilateral and
  multilateral agreements, public-private
  partnerships and other mechanisms.
• Up-front financing is essential. Possible
  sources revolving funds, advanced payments, ODA
  and new donor programs, among others.
• For prompt-start experiences, market-based
  approaches are also a possibility.

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Sources of funding

• To reduce GHG emissions at a scale that would be
  adequate for pursuing the ultimate objective of
  the UNFCCC, positive incentives should be based
  on market mechanisms and/or other innovative and
  flexible financial approaches.
• Mechanisms for reducing GHG emissions from
  deforestation should not undermine GHG emission
  reduction efforts by Annex I countries, nor
  weaken the existing flexibility mechanisms under
  the Kyoto Protocol.

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Technical issues

• Actions to curb GHG emissions from deforestation
  should be implemented at the project level a
  project may be implemented up to the regional or
  national scale.
• Reference scenarios on GHG emissions from
  deforestation should not disadvantage countries
  that have taken early actions.
• Definitions should allow the participation of all
  Parties and the use of different types of
  activities for reducing GHG emissions from
  deforestation.
• The discussion on technical issues should not
  prevent or delay the adoption of adequate and
  equitable policy approaches and positive
  incentives.

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Conclusions

• We must start building capacities in developing
  countries while we study and discuss policy
  approaches/incentives/mechanisms.
• Conditions and drivers are very different, there
  is no silver bullet, therefore innovative
  mechanisms have to be designed and assessed.
• Consequently, we need to keep ALL the options
  open at this point in the negotiation process.