Reduced Emissions from Deforestation and Forest Degradation (REDD): Why a Robust and Transparent Monitoring, Reporting and Verification (MRV) System is Mandatory

Abstract

The reduction of emissions from deforestation and forest degradation (REDD) was approved at the 16th session of the Conference of the Parties of the UNFCCC in Cancun in 2010 as an eligible action to prevent climate change and global warming in post-2012 commitment periods. REDD assigns a financial value to the carbon stored in forests. In order to generate benefits from REDD countries need to implement sound systems for monitoring, reporting and verification (MRV) of carbon stocks. The mere reporting of point estimates such as carbon stocks or carbon stock changes is not sufficient, unless the associated uncertainties are specified. Sampling and non-sampling errors influence the reliability of estimated activity data and emission factors, and thus affect the potential to generate benefits from implementing a REDD-regime. Uncertainties are addressed by the principle of conservativeness that requests the reporting of the reliable minimum estimate (RME). The RME constructs a reliability interval around a carbon stock estimate and utilizes the lower bound for reporting and the calculation of benefits. In this chapter, a framework for calculating accountable emission reductions including assessment errors is developed. Theoretical considerations as well as a simulation study for four selected countries with low to high deforestation and forest degradation rates show that even small assessment errors (5% and less) may offset successful efforts in the reduction of emissions from deforestation and forest degradation. The generation of benefits from REDD renders possible only in situations where a robust and transparent MRV-system is applied that provides a sound approach for the calculation of RMEs.