REDD Research Articles

Financing REDD in developing countries: a supply and demand analysis

Reducing emissions from deforestation and forest degradation (REDD) in developing countries has been at the centre of negotiations on a renewed international climate regime. Developing countries have made it clear that their ability to engage in REDD activities would depend on obtaining sufficient and stable funding. Two alternative REDD financing options are examined to find possible ways forward: financing through a future compliance market and financing through a non-offset fund. First, global demand for hypothetical REDD credits is estimated. The demand for REDD credits would be highest with a base year of 1990, using gross—net accounting. The key factors determining demand in this scenario are the emission reduction targets and the allowable cap. A proportion of emission reduction targets available for offsets lower than 15% would fail to generate a sufficient demand for REDD. Also examined is the option of financing REDD through a fund. Indirectly linking the replenishment of a REDD fund to the market is a promising mechanism, but its feasibility depends on political will. The example of overseas development assistance for global health indicates the conditions for possible REDD financing. The best financial approach for REDD would be a flexible REDD mechanism with two tracks: a market track serving as a mitigation option for developed countries, and a fund track serving as a mitigation option for developing countries.

The Recommendation for REDD based on the Restrictions of A/R CDM Under the Present Rules

The Recommendation for REDD based on the Restrictions of A/R CDM Under the Present Rules

Paiements pour services environnementaux et biodiversité dans les pays du sud

Dans les pays du Sud, les paiements pour services environnementaux (PSE) dédiés à la préservation de la diversité biologique devraient se multiplier à la faveur de la mise en place du mécanisme REDD – dit de « déforestation évitée » et d’abord principalement tourné vers le changement climatique. Les PSE existants rémunèrent plus souvent le coût d’opportunité de l’abandon de certaines activités que la valeur du service fourni, laquelle est difficile à calculer quand il s’agit de biodiversité. Mais cette approche rencontre des problèmes d’efficacité et d’équité. Les PSE peuvent être mis au service du développement et devenir des outils de conservation plus efficaces si l’on dépasse la logique de la compensation du coût d’opportunité.

A little REDD model to quickly compare possible baseline and policy scenarios for reducing emissions from deforestation and forest degradation

A simple model allows rapid comparison of typical baseline and policy scenarios which might be considered under international programs to avoid CO2 emissions caused by forest clearing, such as REDD (Reducing Emissions from Deforestation and Forest Degradation). These tests of REDD policy scenarios can also include CO2 stored in forest products. The value of avoided emissions can also be determined if expected carbon prices, constant or varying, are included. The paper discusses simple illustrative example comparisons as well as possible feedback effects within larger scale setting of CO2 offset availability, CO2 price and emissions reductions.

REDD comes into fashion in Madagascar

As the Copenhagen negotiations on the form of post Kyoto mechanisms to tackle climate change approach, firmly on the agenda are proposals to include Reduced Emissions from Deforestation and forest Degradation (REDD). REDD could potentially generate tens of millions of dollars annually for Madagascar, bringing a huge potential to deliver forest conservation and improved livelihoods for the rural Malagasy. Efforts are underway in Madagascar to access REDD finance through a national working group and implementation of five REDD pilot projects. Many areas where the lowering of rates of deforestation is hoped to take place are part of the new generation of protected areas following the 2003 Durban Declaration. These new protected areas are frequently based on federations or grouping of community managed forests, which the literature and experience has shown to be highly problematic and which are rarely fully operational. If REDD is to prove to be an effective conservation tool, as well as an equitable mechanism to promote rural development several issues need to be addressed: More resources allocated to provide direct incentives to communities and to build local management capacity within their forest management associations. More serious efforts are needed to increase forest plantations and to improve management of existing plantations and natural forests, so as to meet the forest product needs of the whole Malagasy population. Basic human rights to have secure tenure of ancestral forest lands, and to derive a decent living from these needs to be recognised and empowered. The risk of ‘elite capture’ of the revenues generated by REDD should be avoided by the establishment of a transparent and independent scrutiny facility. Finally, it is proposed that improved dialogue between the social critics of conservation in Madagascar and the conservation movement itself should be encouraged.

Landscape-scale variation in the structure and biomass of the hill dipterocarp forest of Sumatra: Implications for carbon stock assessments

One of the first steps in estimating the potential for reducing emissions from deforestation and forest degradation (REDD) initiatives is the proper estimation of the carbon components. There are still considerable uncertainties about carbon stocks in tropical rain forest, coming essentially from poor knowledge of the quantity and spatial distribution of forest biomass at the landscape level.We evaluate the influence of site and topography on forest structure, biomass and carbon stock over a forested landscape in Sumatra. Sixteen sites were selected across a landscape of ca. 1000km2, and within each site, a network of small 0.1ha plots was laid down perpendicular to the major topographical gradient. Structural parameters for trees with diameter bigger or equal to 10cm and major life forms were recorded for each plot. The total sampled area was 70.2ha.The above-ground biomass (AGBM) in the 16 sites ranged from 271±19 to 478±38Mgha−1, with a mean of 361±7Mgha−1. This value is similar to the global ‘tropical wet forest’ estimate of Keith et al. (2009), but 23% higher than the biome default value given in the IPCC (2006) guidelines. Plots on acid tuff were the most distinctive in having fewer and smaller trees, with a resulting low AGBM. The number of stems was low, but the average tree diameter was larger on the nutrient-rich young volcanic andesitic soils. Landscape-scale variability of forest structure and dynamics was considerable. Within sites, there was little variation of mean height or mean diameter of the trees, but significant differences in stem density, basal area and AGBM between land facets. Both topography and geology appeared to affect the dynamics and the biomass of the forest.At the same time, our findings confirm the need for caution in extrapolating data from small plots to larger spatial scales when estimating carbon stocks for a given forest type or a region. Our results for C stock values for Sumatra lowland and hill dipterocarp forests (135–240Mgha−1, with a mean of 180Mgha−1) showed higher variability in C stock values at landscape level than generally reported in the literature. Based on our results, stratified sampling is recommended for biomass and carbon estimation. Within an error range of 6–8% of the AGBM, a minimum area of 4–6ha should be sufficient to estimate biomass with satisfactory accuracy at the landscape scale. Networks of several small plots across landscape are preferable to fewer larger plots, providing that the sampling is representative of the land facets in the area.

Reducing Emissions from Deforestation and Forest Degradation (REDD) and decentralized forest management

The implementation of a mechanism for Reducing Emissions from Deforestation and Forest Degradation (REDD - plus) will be affected by governance conditions within host countries. The top eight countries, which are responsible for 70 percent of the world's total annual deforestation, have implemented certain forms of decentralization in public administration and forest management. This paper analyzes implications of decentralized forest management for the implementation of REDD. Three possible options for the involvement of local governments in the implementation of REDD are: 1) the central government decides on a national reference level and devolves the implementation to local governments; 2) the central government decides on a national reference level and seeks expressions of interest from local governments to implement REDD in their administrative areas; and 3) the central and local governments decide on a national reference level jointly and local governments implement REDD activities locally. This paper also highlights fiscal instruments for REDD revenue distribution.

Above-ground biomass dynamics after reduced-impact logging in the Eastern Amazon

Changes in above-ground biomass (AGB) of 17 1ha logged plots of terra firme rain forest in the eastern Amazon (Brazil, Paragominas) were monitored for four years (2004–2008) after reduced-impact logging. Over the same time period, we also monitored two 0.5ha plots in adjacent unlogged forest. While AGB in the control plots changed little over the observation period (increased on average 1.4Mgha−1), logging resulted in immediate reductions in ABG that averaged 94.5Mgha−1 (±42.0), which represented 23% of the 410Mgha−1 (±64.9) present just prior to harvesting. Felled trees (dbh>55cm) accounted for 73% (±15) of these immediate losses but only 18.9Mgha−1 (±8.1) of biomass was removed in the extracted logs. During the first year after logging, the annual AGB balance (annual AGB gain by recruitment and growth−annual AGB loss by mortality) remained negative (−31.1Mgha−1year−1; ±16.7), mainly due to continued high mortality rates of damaged trees. During the following three years (2005–2008), average net AGB accumulation in the logged plots was 2.6Mgha−1year−1 (±4.6). Post-logging biomass recovery was mostly through growth (4.3±1.5Mgha−1year−1 for 2004–2005 and 6.8±0.9Mgha−1year−1 for 2005–2008), particularly of large trees. In contrast, tree recruitment contributed little to the observed increases in AGB (1.1±0.6Mgha−1year−1 for 2004–2005 and 3.1±1.3Mgha−1year−1 for 2005–2008). Plots with the lowest residual basal area after logging generally continued to lose more large trees (dbh ≥70cm), and consequently showed the greatest AGB losses and the slowest overall AGB gains. If 100% AGB recovery is desired and the 30-year minimum cutting cycle defined by Brazilian law is adhered to, current logging intensities (6treesha−1) need to be reduced by 40–50%. Such a reduction in logging intensity will reduce financial incomes to loggers, but might be compensated for by the payment of environmental services through the proposed REDD (reduced emissions from deforestation and forest degradation) mechanism of the United Nations Framework Convention on Climate Change.

Reduced emissions from deforestation and forest degradation (REDD): a climate change mitigation strategy on a critical track

BackgroundFollowing recent discussions, there is hope that a mechanism for reduction of emissions from deforestation and forest degradation (REDD) will be agreed by the Parties of the UNFCCC at their 15th meeting in Copenhagen in 2009 as an eligible action to prevent climate changes and global warming in post-2012 commitment periods. Countries introducing a REDD-regime in order to generate benefits need to implement sound monitoring and reporting systems and specify the associated uncertainties. The principle of conservativeness addresses the problem of estimation errors and requests the reporting of reliable minimum estimates (RME). Here the potential to generate benefits from applying a REDD-regime is proposed with reference to sampling and non-sampling errors that influence the reliability of estimated activity data and emission factors.ResultsA framework for calculating carbon benefits by including assessment errors is developed. Theoretical, sample based considerations as well as a simulation study for five selected countries with low to high deforestation and degradation rates show that even small assessment errors (5% and less) may outweigh successful efforts to reduce deforestation and degradation.ConclusionThe generation of benefits from REDD is possible only in situations where assessment errors are carefully controlled.

Cambodia's forests and climate change: Mitigating drivers of deforestation

AbstractThe United Nations Framework Convention on Climate Change (UNFCCC) is exploring a mechanism to reduce emissions from deforestation and forest degradation (REDD) to address global warming. This represents a major expansion of earlier forest‐oriented initiatives under the Clean Development Mechanism (CDM) that focused on afforestation and reforestation activities. While the scope of REDD projects is still being defined, potential categories include conservation, stock enhancement, and sustainable management, creating a range of new opportunities for forest‐related climate projects. The core concept behind REDD is that deforestation trends can be slowed, halted, or even reversed conserving billions of tons of carbon that would otherwise be emitted. To succeed, REDD projects will need to control powerful drivers of deforestation and forest degradation operating at multiple levels and carried‐out by a variety of actors, from rural people to political and economic elites. This case study of a REDD pilot project in northwest Cambodia explores how drivers might be contained under a project scenario and how the future international articulation of project design parameters could enable or constrain a global REDD strategy. The paper concludes that to be successful REDD projects will require a hybrid approach in which local drivers are controlled by communities and national drivers are mitigated through policy actions necessitating strong partnerships between diverse institutions.

REDD and PINC: A new policy framework to fund tropical forests as global 'eco-utilities'

Tropical forests are 'eco-utilities' providing critical ecosystem services that underpin food, energy, water and climate security at local to global scales. Currently, these services are unrecognised and unrewarded in international policy and financial frameworks, causing forests to be worth more dead than alive. Much attention is currently focused on REDD (Reducing Emissions from Deforestation and forest Degradation) and A/R (Afforestation and Reforestation) as mitigation options. In this article we propose an additional mechanism – PINC (Proactive Investment in Natural Capital) – that recognises and rewards the value of ecosystem services provided by standing tropical forests, especially from a climate change adaptation perspective. Using Amazonian forests as a case study we show that PINC could improve the wellbeing of rural and forest-dependent populations, enabling them to cope with the impacts associated with climate change and deforestation. By investing pro-actively in areas where deforestation pressures are currently low, the long-term costs of mitigation and adaptation will be reduced. We suggest a number of ways in which funds could be raised through emerging financial mechanisms to provide positive incentives to maintain standing forests. To develop PINC, a new research and capacity-building agenda is needed that explores the interdependence between communities, the forest eco-utility and the wider economy.

On the road to REDD

On the road to REDD

Principles of justice in proposals and policy approaches to avoided deforestation: Towards a post-Kyoto climate agreement

This paper offers a normative analysis of the current negotiations on reducing emissions from deforestation and forest degradation (REDD) under the United Nations Framework Convention on Climate Change (UNFCCC). Drawing on existing theories of distributive justice, we seek to determine which interpretations of equity are embodied in the key proposals and policy approaches to REDD in the run up to a post-Kyoto climate agreement. Our analysis indicates that whilst the various proposals are characterised by different and sometimes contradictory notions of equity, it is the ideas that are more consistent with neoliberal concepts of justice that tend to prevail. The result is that despite abiding contestations and controversies, emerging REDD policy solutions for the post-2012 climate regime looks very likely to reflect a commitment to market-based approaches to forest governance. However, whilst such market-based approaches might serve the preferences of powerful players, their effectiveness in terms of forest preservation, the protection of indigenous peoples and sustainable community development remains extremely dubious. On a broader note, our analysis reinforces the growing realization that the international arena is not beyond the pale of moral arguments but rather that the governance of global environmental change implicates elemental ethical questions regarding which ways of life human beings ought to pursue.

REDDy or not? The Effects on Indigenous Peoples in Brazil of a Global Mechanism for Reducing Emissions from Deforestation and Degradation

Deforestation in the tropics accounts for one-fifth of global greenhouse gas emissions. For this reason, the preservation of remaining tropical forests is an integral component of any international climate change mitigation policy. Indigenous peoples are crucial actors for the success of such a policy given the large amount of forestland in indigenous hands, their historical and cultural role in the management of forests, and their relative success at sustainable forest stewardship.The aim of this research is to contribute to the academic literature and to the ongoing international debate over a mechanism for reducing emissions from deforestation and forest degradation (REDD), scheduled to culminate in December 2009 at the Copenhagen Climate Conference. This article aims to answer the question: What will be the effects on indigenous peoples in Brazil of an international policy mechanism for REDD? It draws upon research conducted using a qualitative prospective policy evaluation method to describe the possible risks and opportunities to indigenous peoples and to make recommendations for improving REDD on the variables of scope, financing, and the process of negotiation and governance.Although the article concentrates on the effects of a REDD policy on indigenous peoples in Brazil given its status as a leading-edge case on this issue, it aspires to offer lessons for the other countries of the Amazon basin.

Trade-offs and synergies between carbon storage and livelihood benefits from forest commons

Forests provide multiple benefits at local to global scales. These include the global public good of carbon sequestration and local and national level contributions to livelihoods for more than half a billion users. Forest commons are a particularly important class of forests generating these multiple benefits. Institutional arrangements to govern forest commons are believed to substantially influence carbon storage and livelihood contributions, especially when they incorporate local knowledge and decentralized decision making. However, hypothesized relationships between institutional factors and multiple benefits have never been tested on data from multiple countries. By using original data on 80 forest commons in 10 countries across Asia, Africa, and Latin America, we show that larger forest size and greater rule-making autonomy at the local level are associated with high carbon storage and livelihood benefits; differences in ownership of forest commons are associated with trade-offs between livelihood benefits and carbon storage. We argue that local communities restrict their consumption of forest products when they own forest commons, thereby increasing carbon storage. In showing rule-making autonomy and ownership as distinct and important institutional influences on forest outcomes, our results are directly relevant to international climate change mitigation initiatives such as Reduced Emissions from Deforestation and Forest Degradation (REDD) and avoided deforestation. Transfer of ownership over larger forest commons patches to local communities, coupled with payments for improved carbon storage can contribute to climate change mitigation without adversely affecting local livelihoods.

Sensitivity of amounts and distribution of tropical forest carbon credits depending on baseline rules

Abstract One of the largest sources of global greenhouse gas emissions can be addressed through conservation of tropical forests by channeling funds to developing countries at a cost-savings for developed countries. However, questions remain to be resolved in negotiating a system for including reduced emissions from deforestation and forest degradation (REDD) in a post-Kyoto climate treaty. The approach to determine national baselines, or reference levels, for quantifying REDD has emerged as central to negotiations over a REDD mechanism in a post-Kyoto policy framework. The baseline approach is critical to the success of a REDD mechanism because it affects the quantity, credibility, and equity of credits generated from efforts to reduce forest carbon emissions. We compared outcomes of seven proposed baseline approaches as a function of country circumstances, using a retrospective analysis of FAO-FRA data on forest carbon emissions from deforestation. Depending upon the baseline approach used, the total credited emissions avoided ranged over two orders of magnitude for the same quantity of actual emissions reductions. There was also a wide range in the relative distribution of credits generated among the five country types we identified. Outcomes were especially variable for countries with high remaining forest and low rates of deforestation (HFLD). We suggest that the most credible approaches measure emissions avoided with respect to a business-as-usual baseline scenario linked to historic emissions data, and allow limited adjustments based on forest carbon stocks.

Carbon payments as a safeguard for threatened tropical mammals

AbstractOne reason for the rapid loss of species‐rich tropical forests is the high opportunity costs of forest protection. In Kalimantan (Indonesian Borneo), the expansion of high‐revenue oil palm (Elaeis guineensis) plantations currently threatens 3.3 million ha of forest. We estimate that payments for Reduced Emissions from Deforestation and forest Degradation (REDD) could offset the costs of stopping this deforestation at carbon prices of US$10–33 per tonne of CO2, or $2–16 per tonne if forest conservation targets only cost‐efficient areas. Forty globally threatened mammals are found within these planned plantations, including the Bornean orangutan (Pongo pygmaeus) and Borneo pygmy elephant (Elephas maximus borneensis). Cost‐efficient areas for emissions reductions also contain higher‐than‐average numbers of threatened mammals, indicating that there may be synergies between mitigating climate change and conserving biodiversity. While many policy and implementation issues need clarification, our economic assessment suggests that REDD could offer a financially realistic lifeline for Kalimantan's threatened mammals if it is included in future climate agreements.

Lessons learned from past influences on deforestation: Effectiveness, efficiency, equity and REDD relevance

Lessons learned from past influences on deforestation: Effectiveness, efficiency, equity and REDD relevance

Compensated successful efforts for avoided deforestation vs compensated reductions

In recent years, several proposals for the design of a mechanism to reduce emissions from deforestation and forest degradation (REDD) within the United Nations Convention on Climate Change have been advanced. The essence of these proposals is to provide financial benefits to developing countries proportionally to the amount of avoided emissions they achieve, i.e. output based. A paper published in Ecological Economics [Combes Motel, P., Pirard, R., Combes, J.L. 2008. A methodology to estimate impacts of domestic policies on deforestation: Compensated Successful Efforts for “avoided deforestation” (REDD). Ecological Economics doi:10.1016/j.ecolecon.2008.06.001.] aims to provide an alternative termed Compensated Successful Efforts (CSE). It suggests that financial benefits should be provided on the basis of developing countries' successful ‘efforts’ to reduce emissions from deforestation, i.e. input based. The CSE approach also differs from previous ones in relation to the definition of what should be counted as avoided deforestation and how to estimate avoided deforestation. The present paper discusses the CSE approach and points out several shortcomings.

Linking Reduced Deforestation and a Global Carbon Market: Impacts on Costs, Financial Flows, and Technological Innovation

Discussions over tropical deforestation are currently at the forefront of climate change policy negotiations at national, regional, and international levels. This paper analyzes the effects of linking Reduced Emissions from Deforestation and Forest Degradation (REDD) to a global market for greenhouse gas emission reductions. We supplement a global climate-energy-economy model with alternative cost estimates for reducing deforestation emissions in order to examine a global program for stabilizing greenhouse gas concentrations at 550 ppmv of CO2 equivalent. Introducing REDD reduces global forestry emissions through 2050 by 20-22% in the Brazil-only case and by 64-88% in the global REDD scenarios. At the same time, REDD lowers the total costs of the climate policy by an estimated 10-25% depending on which tropical countries participate and whether the “banking” of excess credits for use in future periods is allowed. As a result, REDD could enable additional reductions of at least 20 ppmv of CO2-equivalent concentrations with no added costs compared to an energy-sector only policy. The cost savings from REDD are magnified if banking is allowed and there is a need to increase the stringency of global climate policy in the future in response, for example, to new scientific information. Results also indicate that REDD decreases carbon prices in 2050 by 8-23% with banking and 11-26% without banking. While developing regions, particularly Latin America, gain the value of REDD opportunities, the decrease in the carbon price keeps the value of international carbon market flows relatively stable despite an increase in volumes transacted. We also estimate that REDD generally reduces the total portfolio of investments and research and development of new energy technologies by 1-10%. However, due to impacts on the relative prices of different fossil fuels, REDD has a slight positive estimated effect on investments in coal-related technologies (IGCC and CCS) as well as, in some cases, non-electric energy R&D. This research confirms that integrating REDD into global carbon markets can provide powerful incentives for the preservation of tropical forests while lowering the costs of global climate change protection and providing valuable policy flexibility.