1. Governance and REDD

2. Governance failures An illness

3. Governance failures Weak institutions Weak institutions Inconsistent & complicated laws Inconsistent & complicated laws –problems with land tenure and regulation Poor forest law enforcement Poor forest law enforcement Corruption Corruption Lack of transparency Lack of transparency

4. Governance in 37 REDD Countries 80% of REDD readiness countries selected by FCPF & UN-REDD rank in bottom half of World Bank survey of governance in 212 countries (indicators on "control of corruption" and "voice and accountability“) 80% of REDD readiness countries selected by FCPF & UN-REDD rank in bottom half of World Bank survey of governance in 212 countries (indicators on "control of corruption" and "voice and accountability“) Nearly 30% are in the lowest quarter Nearly 30% are in the lowest quarter

5. REDD Countries

6. Demand Another illness Linked to governance

7. The link Poor governance + excessive demand = Illegal and unsustainable timber trade

8. Imports of illegal timber rising Trends in imports of illegal timber to the USA & EU from selected countries 1998 - 2006

9. World supply of Illegal Timber exports (2007) Source: based on importing country declarations adjusted for legality as assessed in http://www.globaltimber.org.uk/IllegalTimberPercentages.doc 5 million m3 RWE 1 million m3 RWE Estimated roundwood equivalent volume of Illegal Timber directly proportional to area of disc Brazil Other South America (includes pulp and paper) PNG & SI Congo Basin East Africa West Africa Eastern Russia Western Russia China Indo- China Malaysia Indonesia PNG & SI

10. Source: based on estimates from http://www.globaltimber.org.uk/IllegalTimberPercentages.doc except Colombia (World Bank estimate).http://www.globaltimber.org.uk/IllegalTimberPercentages.doc PNG & SI Malaysia Indonesia Illegal Legal Ghana Rep. of Congo Cameroon Gabon DRC Tanzania Laos Bolivia Indonesia Papua New Guinea Guyana Peru Paraguay Colombia Vietnam Estimated proportion of illegal timber exports from REDD candidate countries in 2007.

11. Lost revenues Lost revenues from trade in illegally harvested timber are in the range of US$11 billion a year Lost revenues from trade in illegally harvested timber are in the range of US$11 billion a year

12. What are the solutions? Demand-side Strong, uniform and coherent demand- side measures Strong, uniform and coherent demand- side measures –US Lacey Act –EU FLEGT – voluntary partnerships

13. Solutions - governance Incentivise good governance Incentivise good governance Enhance transparency Enhance transparency Strengthen law enforcement Strengthen law enforcement

14. Role of Civil Society Watchdog – in an official or unofficial capacity Watchdog – in an official or unofficial capacity Engage in independent monitoring and verification Engage in independent monitoring and verification Enhance transparency and accountability in forest sector Enhance transparency and accountability in forest sector

15. How? What Global Witness is doing and how it is relevant to REDD www.globalwitness.org

16. Watchdog Expose Expose –illegal and unsustainable trade –corruption Through Through –investigation on the ground

17. Transparency and Accountability Independent Forest Monitoring Independent Forest Monitoring Governance and Transparency Fund project Governance and Transparency Fund project

18. IFM Independent Forest Monitoring Monitors governance – established over 10 years Monitors governance – established over 10 years Bridges gap between State and CS in regulation and enforcement Bridges gap between State and CS in regulation and enforcement

19. Monitor’s functions Based on contract between forest authority and IM organisation Based on contract between forest authority and IM organisation incorporating minimum standards Monitors observes performance of officials in: – –Detecting – –reporting and – –suppressing illegal activity

20. In the forest

21. And in the office

22. Reporting Regular reports go to Reporting Panel Regular reports go to Reporting Panel –peer reviews conclusions and recommendations Freedom to publish Freedom to publish –Cannot change evidence base

23. Where has GW established IFM? Cambodia Cambodia Cameroon Cameroon Honduras Honduras Nicaragua Nicaragua

24. Benefits of IFM Enhance transparency Enhance transparency Increase quality and quantity of information on the forest sector e.g. Cameroon published lists of infractors & legal cases Increase quality and quantity of information on the forest sector e.g. Cameroon published lists of infractors & legal cases Improved law enforcement Improved law enforcement Increase in revenue Increase in revenue

25. Cost of IFM Can pay for itself US$3.5 million is enough to fund an international provider of IFM in Cameroon for seven years IFM led to an increase in revenue. Fines of US$2,600 - US$3.5 million were brought by the forest authority against individual infractors

26. Governance and Transparency Fund Building civil society capacity in developing countries to enhance transparency in forest sector Building civil society capacity in developing countries to enhance transparency in forest sector 8 pilot countries, ₤3.7 million over 4 years 8 pilot countries, ₤3.7 million over 4 years –Identify partner NGO and provide grants –Develop forest transparency report cards –Build capacity so CSOs can undertake IFM and advocacy themselves

27. Relevance to REDD IFM could be adapted for use in independent national monitoring and verification in REDD IFM could be adapted for use in independent national monitoring and verification in REDD Transparency report cards could be used to assess progress with governance Transparency report cards could be used to assess progress with governance

28. ECA Policy recommendations on Governance REDD funding must be linked to governance performance REDD funding must be linked to governance performance –law reform & enforcement –land tenure clarification Independent national monitoring and verification is essential Independent national monitoring and verification is essential Multi-stakeholder national REDD groups must include representatives of IPs, local communities and CSOs Multi-stakeholder national REDD groups must include representatives of IPs, local communities and CSOs

29. Final recommendation Good fiscal governance or REDD funds will go the way of logging revenues