1. REDD Initiatives and Governance
Florence Daviet
World Resources Institute
January 22, 2010
2. Overview
• What we mean by “good governance” in
relation to REDD
• Governance elements in 4 REDD+ spaces
– Program development
– Common elements
• Links to MRV
3. Thinking about the Balance
International - UNFCCC
Governance
- World Bank’s
Forest Carbon
Partnership
Facility
Domestic
Governance - US Legislation
- Amazon Fund
4. Leveraging Governance
• Plan with process,
including for Financing • Independent
process for
International
governance issues
• Upfront Criteria/ redress
• Transparent / mechanism with
trusted financial Fund of specific
types of activities consequences
institution/
• Clear definition of • Independent MRV
mechanisms
“Emission (domestic/
• Transparent MRV international)
system beyond Reduction” quality
carbon • Support for
• Redress multiple actors Safeguards
mechanism
Eligibility
6. GOVERNANCE COMPONENTS
Revenues
Incentives Actors Rules Practice
Government Legal/Policy Framework for Forest Fiscal Forest Fiscal Management
Forest expertise of the Management Effective accounting system for
Transparency national budget authority Roles and Responsibilities for fiscal public spending
management Effective accounting system for
PRINCIPLES OF GOOD
PRINCIPLES OF GOOD GOVERNANCE
Civil society Forest revenue sharing mechanisms revenue collection
Capacity to work on forest Legal requirements for fiscal transparency Comprehensive and timely
Participation revenue issues reporting on fiscal activity
Forest Charge System Transparent management of
Private Sector Effectiveness of the forest charge system resource funds
Financial transparency of Quality of processes to set forest charges Internal controls and auditing of
forest resource companies fiscal activity
Environmental policies of Economic Incentives External auditing of fiscal activity
Accountability lending institutions Effectiveness of economic incentives in
the forest sector Implementation of the
Quality of processes to set economic Forest Charge System
incentives in the forest sector Effective administration and
Consideration of the environmental enforcement
Coordination impacts of non-forest sector economic Public awareness of forest charges
incentives
Implementation of Incentive
Forest Agency Budget Process Programs
Transparency of the annual budget Effective administration and
process enforcement
Quality of legislative oversight Transparent system to record
Capacity payments
Monitoring of impacts and
effectiveness
7. Sample Indicator:
Transparent Management of Resource Funds
Elements of Quality:
• Clarity over who manages the fund
• Broad stakeholder participation to determine
spending priorities
• Clear and publicly available rules to guide
spending
• Fiscal information regularly presented to the
legislature and public
• Annual external auditing with publicly accessible
reports
• Regular and publicly accessible reports on
impacts of fund spending
8. UNFCCC “Good Governance” Language
Safeguards
• Full and effective participation of relevant stakeholders,
including in particular indigenous peoples and local
communities when developing “plans” and “taking
mitigation actions”
• Transparent and effective national forest governance
structures
• Respect for the knowledge and rights of indigenous peoples
and members of local communities
Request for parties to have:
• Transparent national forest monitoring systems
• Action plans that address … land tenure issues, forest
governance issues, gender considerations, safeguards and
ensuring the full and effective participation of relevant
stakeholders, inter alia, indigenous peoples and local
communities
9. • Will have the institutional capacity to reduce emissions from
ELIGIBLE deforestation, including strong forest governance and
COUNTRIES mechanisms to equitably distribute deforestation resources for
local actions; and a land use or forest sector strategic plan
• in a manner that gives due regard to the rights and interests of local
ACTIVITY is
designed, How does this get
communities, indigenous peoples, forest-dependent communities, and
vulnerable social groups;
• with consultations with, and full participation of, local communities,
carried out, indigenous peoples, and forest-dependent communities, in affected areas, as
and
managed
implemented?
partners and primary stakeholders, prior to and during the design, planning,
implementation, and monitoring and evaluation of activities; and
• with equitable sharing of profits and benefits derived from offset credits with
local communities
Protection • Repeats above language
of interests
10. World Bank Forest Carbon Partnership Facility
• Transparent and clear stakeholder process/clearTechnical
R-PP development: reviewed by roles and
Identification of responsibilities/ coordination Bank Staff, Participant’s
Advisory Panel,
governance in • Identify the underlying causes of deforestation and forest
Committee, other s including civil society,
developing and domestic and international.
degradation, considering… governance issues
implementing • Governance quick assessment w/ terms addressing issues
Unclear process in independent assessment
the R-PP • Identify governance issues related to the gate keeper of of
discussed, bank not the implementation
specific activities ‘readiness’
Strategic • Consultation: Develop a consultation plan
Environmental • Environmental and Social Impacts: Assesswith in country
Undertaken by the Bank Impact of readiness
and Social package and policies andMay not bedescribedbank policy,
mission. measures a formal within
Assessment questions about accountability
World Bank • Involuntary Resettlement
Inspection Panel triggered by complaints.
Safeguards • Indigenous Peoples
Questions about application to R-PP process
(backed by the • Forests
and more generally when “safeguards” are
Inspection Panel) • Environment triggered. Consequences?
11. FCPF Guidance questions
Consider a discussion of the following questions and issues, and present a
proposed work program to address them via analytic studies or other
approaches to be undertaken:
• Who owns the carbon? Is there a relationship between carbon ownership
and land tenure?
• How would the REDD revenues generated by these transactions be
assigned and/or shared?
• What could be the checks and balances to be included in the
implementation framework to ensure transparency, accountability and
equity?
• How could stakeholders be engaged in the implementation framework
and the establishment of robust mechanisms for independent monitoring,
assessment and review?
• What other institutional and governance reforms might be needed (e.g.,
anti-corruption laws and measures, national best practices for fiscal
transparency, clarifying roles and responsibilities within a decentralized
forest management system, etc.)?
12. Amazon Fund
Activity approval based on several plans
1. The Sustainable Amazon Plan
2. The Action Plan for Prevention and Control of the Legal
Amazon Deforestation (PPCDAM).
3. State plans being considered where they follow the
federal components (1) territorial planning, (2)
monitoring and control, (3) production activities, (4)
governance.
Multi-stakeholder management by the Amazon Fund
Guidance Committee (COFA). They:
1. Set the fund guidelines and follow up on results
2. Ensure activities are adequate regarding the goals,
commitments and policies of the plans
13. Initial Governance Requests
Common best practice:
Plans with multi-stakeholder participation
MRV of emission reductions – although
transparency not emphasized in all cases
Safeguards – although implementation still a big
question
Some discussion about sharing of benefits, most
clear in US language
14. Process or output MRV?
Participation in Tracking of financial Tracking
REDD policy flows made in improvement in
discussion relation to the plan livelihoods
Process: Process:
Process: Ability of
Participation in Transparency of
local communities
identifying information. Clear
to feedback into
strategies and accountability
political process
activities mechanism
Output: Actual Output: Increased
Output: Accepted
transfers of income in
law/ policy
financing communities
