20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group 1 Conceptual and Practical Challenges in the Operationalization of REDD in Tanzania Simon Milledge Consultant, Royal Norwegian Embassy, Dar es Salaam

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group2 Post-Kyoto and Forests Source: IPCC Fourth Assessment Report Big Big Cheap Cheap Quick Quick Energy supply Waste Industry BuildingsForestry Transport Agriculture Win-win Win-win GHG emissions by source

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group3 REDD System to reward individuals, communities, projects and countries that reduce GHG emissions from forests System to reward individuals, communities, projects and countries that reduce GHG emissions from forests Potential to increase financial inflows from public funding, international development aid, private investment, international carbon markets Potential to increase financial inflows from public funding, international development aid, private investment, international carbon markets Next stop: Copenhagen at UNFCCC CoP15 Next stop: Copenhagen at UNFCCC CoP15 Reduced Emissions from Deforestation and Forest Degradation

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group4 Mitigation options Source: Rights and Resources Initiative Climate Change and Governance in the Forestry Sector

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group5 Conceptual challenges Aid (ODA) Compliance (offset) markets Global fund National REDD Fund Other? National REDD ‘DNA’ Land users Communities Local governments Performance based Performance based Competitive Competitive REDD payments Emission reductions International level National level Sub-national level National REDD-PES scheme International REDD-PES scheme Source: CIFOR Moving ahead with REDD

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group6 Conceptual challenges Incentive driven not driver (PSR) focused Incentive driven not driver (PSR) focused Additional not substitutional to forest management basics Additional not substitutional to forest management basics Different perceptions and interests Different perceptions and interests STATE RESPONSE PRESSURE

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group7 National REDD Implementation POLICY AND PLANNING COORDINATION AND COMPLIANCE National Fund management, equitable benefit sharing Local Stakeholder engagement National Carbon Marketing Department? National Carbon (REDD) Fund National Carbon Monitoring Centre Central and local government owned forests Community or privately owned forests JFM National Climate Change SC National REDD Technical Committee National REDD Coordinator CARBON FINANCING Liability, contracting and payments CARBON ACCOUNTING Land/forest management, monitoring and assessment International UNFCCC CARBON BUYERS CARBON VERIFIERS International policy engagement Negotiation International verification Assistance with REDD Readiness Development partners CARBON MARKETING Verification and reporting CARBON STOCK MANAGEMENT Research and education Networking and awareness Piloting and learning Capacity building and training

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group8 Technical challenges Variation with: Forest area (ha) Carbon density (C/ha) Forest carbon = forest area (ha) x carbon density (C/ha) Avoided deforestation Reduced -ve change Avoided degradation Aforestation Reforestation Regeneration Restoration Enhanced +ve change SFM Strategies Strategies Forest type and others Forest type and others Soil, climate Soil, climate Tenure Tenure Landscape uses, opportunity costs Landscape uses, opportunity costs Infrastructure Infrastructure Scope Scope

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group9 Technical challenges Scale◊ Scale◊ Reference levels/baselines Reference levels/baselines Leakage Leakage Permanence Permanence Liability Liability MARV ◊ MARV ◊ Financing and fungibility◊ Financing and fungibility◊ Benefit sharing Benefit sharing ◊ phased approach likely approach likely

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group10 Technical issues YY ?? Payment for reduced emissions Co-benefits ComplianceVoluntary Variation with: Strategies Strategies Land cover Land cover Soil, climate Soil, climate Tenure Tenure Landscape uses Landscape uses Socio-economic status Socio-economic status Biodiversity Biodiversity Infrastructure Infrastructure Co-Benefits Co-Benefits Markets Markets

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group11 Socially responsible REDD POLICY AND PLANNING COORDINATION AND COMPLIANCE National Fund management, equitable benefit sharing Local Stakeholder engagement CARBON FINANCING Liability, contracting and payments CARBON ACCOUNTING Land/forest management, monitoring and assessment International UNFCCC CARBON BUYERS CARBON VERIFIERS International policy engagement Negotiation International verification CARBON MARKETING Verification and reporting CARBON STOCK MANAGEMENT Research and education Networking and awareness Piloting and learning Capacity building and training

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group12 Sustainability issues Factoring cost-benefit analyses (esp. FFF) Factoring cost-benefit analyses (esp. FFF) Addressing drivers Addressing drivers Unexpected impacts Unexpected impacts Volatility Volatility Long-term valuation Long-term valuation Futures risk management Futures risk management

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group13 National REDD Strategy FrameworkStrategy Action Plan 1st draft Jan 2009 Final draft Dec 2010 Zero draft Dec 2009 IRA facilitating Task Force working document ● Baseline establishment, monitoring, reporting, verification ● Financial mechanisms● Market Access ● Coordination● Governance ● Research and education● Capacity building ● Stakeholders engagement ● Information knowledge and networking

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group14 National REDD Readiness Strategy development Strategy development Coordination Coordination Piloting Piloting Capacity building Capacity building Awareness and transparency Awareness and transparency Research Research

20 February 2009 Tanzania Natural Resource Forum Carbon-Forestry Working Group15 NGOs and CSOs Local-national-international linkages Local-national-international linkages Multi-country experiences Multi-country experiences Emphasis on co-benefits Emphasis on co-benefits Piloting Piloting Lessons sharing, awareness Lessons sharing, awareness Knowledge management Knowledge management Research Research Advocacy Advocacy … CALL FOR PROPOSALS SOON MARV Benefit sharing Triple wins under different conditions … possible small NGO grants for REDD