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REDD FORESTRY AND CLIMATE CHANGE

Course Code: SFM 504
Year 3, Semester 1

UNIT 4- REDD+

Tutor:
Pradeep Baral, MSc.
Assistant Professor

Year: 2023

REDD+
TOPICS COVERED
• Introduction to REDD+
• Dawn of REDD+ including its timeline
• Future of REDD+ and carbon commodification
• Importance of REDD+
• REDD+ conditions
• REDD+ phases
• Results-based finance (RBF)
• Reference level and MRV
• Financing REDD+
• Issues and challenges

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REDD+ contd..
INTRODUCTION
• Deforestation and forest degradation account for around 11% of greenhouse gas GHG
emissions, second only to the energy sector
• In order to meet the Paris Agreement goals, global emissions need to effectively halve by
2030. Addressing forest emissions will be critical to achieving this in this next decade
• In response, Parties to the UNFCCC have developed a voluntary climate change
mitigation approach designed to incentivize developing countries to reduce carbon
emissions from deforestation and forest degradation
• REDD is the abbreviation for “reducing emissions from deforestation and forest
degradation”, followed by REDD+, with the “plus” referring to “the role of conservation,
sustainable management of forests and enhancement of forest carbon stocks in developing
countries”
• REDD+ is a results-based payment scheme aimed at reducing emissions by providing
financial incentives for ‘developing’ countries to reduce carbon emissions within their
borders and promote low-carbon development via forest protection and conservation

REDD+ contd..
Thus, REDD+ aims to incentivize developing countries to contribute to climate change
mitigation in the forest sector by:
• reducing carbon emissions from deforestation;
• reducing carbon emissions from forest degradation;
• conservation of forest carbon stocks;
• sustainable management of forests; and
• enhancement of forest carbon stocks

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REDD+ contd..
Fundamental concept of the REDD+
is to set a reference level (dotted
line) based on the trend of previous
deforestation and associated
emission, and to evaluate emission
in case of preventing deforestation
and forest degradation through
REDD+ activities (solid line)
compared with the reference level.

REDD+ contd..
• At the core of REDD+ lies the notion that financial incentives can alter peoples’
motivations to harvest timber and other forest products
• REDD+ acknowledges that temptations to deforest or degrade forests via logging and
conversion to agriculture, plantations, mining, or other economic activities are great,
particularly in countries experiencing high poverty levels but that still have vast swathes
of forest
• It envisages paying people for forest conservation
• In this sense, REDD+ can be looked as a form of payment for ecosystem services or PES
scheme
• But it seeks to avoid problems associated wide application of PES systems for forest
conservation in the past, particularly unclear definitions of land tenure and forest carbon
rights

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REDD+ contd..
• The richer countries (with historical high emission levels) pay the poorer countries for the
opportunity costs of not continuing to develop at least parts of their forestlands according
to an extractive socio-economic development model (such as logging, deforestation, land
conversion)
• Norway, not only a wealthy OECD country with an extensive contemporary extractive
industry but also an historically important timber producer, is recognized as the primary
instigator and funder of REDD+
• Through its International Climate and Forest Initiative, Norway earmarked around USD
500 million for REDD+, supporting the establishment of the UN-REDD Program, the World
Bank’s Forest Investment Program (FIP), and the Forest Carbon Partnership Facility (FCPF)
• Along with Norway, the United States, Germany, Japan, and the United Kingdom
provide the lion’s share of REDD+ funding and ten countries including Brazil, Indonesia
and DR Congo receive the majority of finance.

REDD+ contd..
DAWN OF REDD+
• As a framework, REDD+ has been negotiated for ten years under the United Nations (UN)
Climate Convention, since COP 11 in Montreal Canada
• It was formally recognized in December 2015, when 197 parties to the Convention adopted
the Paris Agreement to specifically take action on greenhouse mitigation, adaptation and
finance starting from the year 2020.
• Article 5, Paragraph 1 of the Agreement states: “Parties should take action to conserve and
enhance, as appropriate, sinks and reservoirs of greenhouse gases as referred to in Article 4,
paragraph 1(d), of the Convention, including forests.”
• This refers to the need to promote the sustainable management of natural carbon sinks
such as forests and other terrestrial ecosystems.
• Thus, with the Paris Agreement, the focus has shifted from negotiating REDD+ to
implementing and financing REDD+ as no additional foundational decisions are needed
for REDD+ to be fully implemented.

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REDD+ contd..
Timeline of REDD+
• 11 December 1997 – Kyoto Protocol adopted and includes land use, land use change and
forestry as a sector of emissions.
• October/November 2001 – Marrakesh Accords (COP 7) specifies the nature of land use,
land use change and forestry.
• December 2005 –REDD was first discussed at the COP 11 in Montréal at the request of the
governments of Costa Rica and Papua New Guinea when they submitted the document
"Reducing Emissions from Deforestation in Developing Countries: Approaches to Stimulate
Action“. The avoided deforestation proposal was formally taken up as an agenda.
• December 2007 – The Bali Action Plan was adopted at the COP 13. It was decided that
REDD is to be included in a post-2012 framework and the details were to be decided during
the COP 15 in Copenhagen
• December 2008 – At the COP 14 in Ponzan, Poland, the avoided carbon emissions from
conservation of forest carbon stocks, sustainable management of forests and the
improvement of forest carbon stocks were given the same level of priority as deforestation
and forest degradation, constituting the ‘+’ in REDD+

REDD+ contd..
• December 2009 – Industrialized countries pledge an additional US$30 billion between 2010
and 2012 to developing nations and a goal of US$100 billion per year by 2020 as part of the
Copenhagen Accords (COP 15), with part of the funding to go towards REDD+
• December 2010 – The Cancun Agreements (COP 16) provided guidance to entities and
countries assisting the REDD+ readiness process (the “fast-start period until 2012), on the
phased approach and on requirements for developing countries, such as the national plans,
national reference emission levels, national forest monitoring systems and a safeguard
compliance system. Agreement was also made on the creation of a Green Climate Fund
• November 2012 – At COP 18 Doha, methodological guidance on developing modalities for
a national forest monitoring system (NFMS) and for MRV of REDD+ activities discussed
• November 2013 – COP 19, held in November 2013 in Warsaw, Poland, adopted the 7
decisions of the Warsaw Framework for REDD+. Together, these decisions provided “rule
book” for national forest monitoring systems, forest reference levels (FRL), MRV,
safeguards, results based payments, institutional arrangements and drivers analysis
• November 2015 – Paris Agreement adopted. Article 5.2 encourages implementing and
supporting REDD+

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REDD+ contd..
FUTURE OF REDD+: COMMODIFICATION OF CARBON?
• REDD+ has indeed been described as “the world’s largest experiment in Payment for
Ecosystem Services (PES)” that “promotes the commodification of ecosystems carbon
storage and sequestration functions on a global scale”
• The logic is that financial compensation for foregoing economic opportunities from forest
conversion for agricultural, plantation development, or other purposes, would motivate
forest users towards forest conservation
• REDD+ would generate income to actors that conserve forests only if actual, verifiable,
forest protection was achieved, and that the benefits were shared in a just manner
• Over time, it is envisaged that the public financial resources made available to establish
REDD+ schemes by aid donors and implemented via multilateral institutions (the World
Bank and UN system) would make way to an elaborate global carbon market, where
forest owners and managers would “simply sell carbon credits like regular commodities
such as grain, coffee or cocoa”
• In this way, forest carbon is set to become a resource commodity

REDD+ contd..
WHY IS REDD+ IMPORTANT?
• Deforestation and forest degradation have long been recognized as significant sources of GHG
emissions, thereby contributing to global warming that cause climate change
• As up to 11% of GHG emissions are caused by deforestation and forest degradation, it is important
that the reduction of these emissions is part of the global plan to fight climate change
• REDD+ is the identified mechanism to do so. It provides developing nations an economic
alternative to the more destructive use of forest lands by providing people a financial incentive to
keep their forests intact
• Developing nations that meet UNFCCC REDD+ requirements will receive results-based payments
for verified emissions reductions
• As such, REDD+ incentivizes developing countries to reduce greenhouse gas emissions and increase
the removal of carbon dioxide from the atmosphere by forest land
• Furthermore, REDD+ can generate other substantial benefits, including positive impacts on
biodiversity, conservation of critical forest ecosystems, climate change adaptation and low-emission
development and poverty reduction

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REDD+ contd..
REDD+ CONDITIONS
• To deliver real reductions in carbon dioxide emissions, REDD+ must satisfy the following
conditions.
1. Additionality: Proof that any reduction in emissions from a REDD+ project is
genuinely additional to reductions that would occur if that project were not in place
2. No leakage: Leakage is a reduction in carbon emissions in one area that results in
increased emissions in another. A classic example is where curbing clear-felling in one
region of forest drives farmers to clear-fell in another
3. Permanence: The long-term viability of reduced emissions from a REDD project. This is
heavily dependent on the forested area’s vulnerability to deforestation and/or
degradation

REDD+ contd..
PHASES OF REDD+
Phase 1: Readiness
• During Phase 1 (often called “REDD+ readiness”), countries develop a national strategy or action
plan; a national Forest Reference Emission Level and/or Forest Reference Level; a robust and
transparent national forest monitoring system; and a system for providing information on how
social, legal, and environmental safeguards are being addressed and respected throughout the
implementation of the REDD+ activities.
Phase 2: Demonstration
• Phase 2 involves the implementation of national policies and measures, which could involve
further training, technology development and transfer, and results-based demonstrations.
Phase 3: Implementation
• Phase 3 involves implementation of REDD+ activities at the national level and the emission
reductions and removal from the forestry sector are fully measured, reported and verified (MRV).
Countries can access results-based payments when they have completed the MRV processes
under the UNFCCC

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REDD+ contd..
• Another way to look at the REDD+ phases is (1) Readiness Phase; (2) Implementation
Phase; and (3) Financing/Results-based Payment Phase. The three phases that may overlap.

• Phase 1 and 2 are financed primarily through public funds, mainly through bilateral and
multilateral development cooperation.
• For financing Phase 3 – payments for verified emission reductions, a variety of public,
private or “appropriate market based” finance, should be made available
• According to the Warsaw Framework 2013, the Green Climate Fund and Forest Carbon
Partnership Facility will play a key role in providing REDD+ results-based finance.

REDD+ contd..

A REDD+ Country is a developing country that has signed a Participation Agreement to participate in the
Readiness, Demonstration and Implementation. As of 2021, there are 57 REDD+ Country Participants

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REDD+ contd..
REDD+ READINESS
• During the readiness phase, developing countries develop a national strategy for implementing REDD+.
• To do this they draw upon broad stakeholder input and on research, such as studies on the drivers of
deforestation or on legal reforms.
• The national strategy includes mechanism for:
▪ Developing national forest monitoring systems using remote sensing and/or ground-based
approaches to monitor REDD+ activities, estimate forest carbon stocks, forest-related greenhouse gas
emissions and changes in forest area.
▪ Establishing reference emission levels. These are the baseline levels of forest sector greenhouse gas
emissions, against which a country's REDD+ performance will be assessed.
▪ Developing a credible system for measurement, reporting and verification (MRV). This will assess
the effects of REDD+ activities on forest carbon and provide the basis for results-based payments
▪ Building technical, institutional and human capacity
▪ Establishing safeguards and grievance mechanisms

REDD+ contd..
• Examples of REDD+ finance for readiness include the Forest Carbon Partnership Facility’s
Readiness Fund and the UN-REDD Program, among others
• Following more than a decade of REDD+ readiness and implementation of specific actions
to reduce deforestation and forest degradation, many developing countries are now starting
to approach the Results-based Payments phase.

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REDD+ contd..
RESULTS-BASED FINANCE FOR REDD+
• Results-based finance (RBF) is an innovative approach to development finance in general –
payments are made on the basis of an ex-post demonstration of results
• RBF for REDD+ is conditional upon a reduction of greenhouse gas emissions from forests
(tons of CO equivalent)
• Rather than providing up-front finance for measures that shall lead to emission reductions,
RBF provides an ex-post reward and is designed to incentivize a REDD+ country (the
recipient) to take appropriate actions.
• REDD+ RBF is still in the piloting phase
• There are several initiatives with different levels of engagement and operational experience
• The main distinction is between bilateral initiatives like the Norwegian government’s
cooperation with selected countries, the German REDD for Early Movers Program and
multilateral initiatives, especially the Carbon Fund of the Forest Carbon Partnership Facility
(FCPF)

REDD+ contd..
Under the UNFCCC, a country must fulfill four pre-requisites in order to be eligible for results-
based (RBF) finance for REDD+:
1. A national REDD+ strategy or action plan;
2. A national forest reference level as the basis for accounting the results of REDD+ activities
(subnational as an interim measure);
3. A national forest monitoring system for the monitoring and reporting of the REDD+
activities (subnational as an interim measure);
4. A system for reporting, and a recent summary of information, on how all of the REDD+
social and environmental safeguards are being addressed and respected throughout the
implementation of the activities.

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REDD+ contd..
REFERENCE LEVELS
• Reference levels are a key component for any national REDD+ program
• Reference levels are expressed as tons of CO2 equivalent per year for a reference period against which
the emissions and removals from a results period will be compared
• They serve as benchmarks for assessing country’s performance in implementing REDD+ activities
• They serve as a baseline for measuring the success of REDD+ programs in reducing greenhouse gas
emissions or enhancing removals from forests
• They are developed by considering historic emissions and removals, based on data collected as per
commonly accepted standards adjusted for national circumstances such as future development scenarios
• Developing countries aiming to implement REDD+ activities are invited to submit a reference level to
the UNFCCC secretariat, on a voluntary basis and when deemed appropriate
• The information contained in the submission should be transparent, complete, accurate, and consistent
with guidance agreed by the UNFCCC
• The results measured against these baselines are eligible for results-based payments

REDD+ contd..
MEASUREMENT, REPORTING AND VERIFICATION (MRV)
• A cornerstone of any national REDD+ scheme is a reliable, credible system of measuring,
reporting and verifying (MRV) changes in forest carbon stocks
• REDD+ is an economic mechanism that offers developing countries financial incentives for
reducing greenhouse gas emissions from deforestation and forest degradation
• The difference between the carbon stock of forests under historical deforestation and forest
degradation rates (Reference Level) and the actual C-stock achieved by forest conservation
measures will be compensated financially
• The MRV system detects the changes in the C-stocks expressed in tons of CO2
equivalents through implementing REDD+ activities compared to a Reference Level
• REDD+ payments are made only after verified evidence of emissions reduction are
provided
• In broader terms, MRV relates to both actions on the ground (i.e., that change forest
carbon stocks) and REDD+ transactions (i.e., compensation and financial transactions or
transfers)

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REDD+ contd..
• Many countries do not have even a minimum capacity for MRV. The priority for these
countries is to develop a roadmap for establishing a sustainable MRV system to get started
• A first step could be to set up an interim national monitoring system that would gradually
lead to a fully developed MRV system
• National monitoring systems need to be established using an appropriate combination of
remote sensing and on-the-ground methods for reliably estimating GHG emissions related
to forests by source, removal by sinks, and changes in the area of forest and carbon stocks
• During the phased approach of REDD+ implementation, MRV systems and the
respective capacities are to be developed in phases 1 and 2, while operational MRV
systems are only used in phase 3 to measure, report and verify emission reductions
• In the first two phases, developing country can draw on international funds; while in the
third phase it is intended to cover all direct and transaction costs, including the MRV
system, by result-based payments to make REDD+ economically viable
• Without MRV system, any national plan to achieve compensation for REDD+ actions based
on results will be incomplete. The Warsaw Framework presents detailed rules and
guidance for MRV carbon (CO2e) emissions and removals

REDD+ contd..
FINANCING REDD+
• REDD+, as currently conceived, involves payments to developing countries that will prevent
deforestation or degradation that would otherwise have taken place
• Result based payments for REDD+ can be obtained from compliance carbon markets (offsets), where
actors in industrialized countries offset their own emissions by transferring funds as carbon credits to
developing countries
• Or it can be some other mechanism such as a voluntary carbon market or from public sources, which can
either be national (e.g. state budget or other fiscal measures for REDD+) or international (e.g., Green
Climate Fund (GCF), Global Environment Facility (GEF), UN-REDD, Forest Carbon Partnership Facility
(FCPF), or bilateral aid)
• In addition, there is also the possibility of private financing. This includes smallholders investment,
private foundations or green bonds, the realization of which is usually found in private REDD+ projects
• The payments then, in principle, go towards actions that enable developing countries to conserve or
sustainably use their forests (say, through more appropriate harvesting of wood and other forest
products), when they might otherwise not have been able to do so

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REDD+ contd..
• Currently, a few countries contribute more than 80% to international public funding for REDD+:
Australia, Germany, Norway, United Kingdom and USA
• Multilateral funds managed by the World Bank (such as FCPF), the GEF, the GCF, and the UN-
REDD Program are responsible for the distribution of a majority of the international public
funding
• The funds are used to cover both transaction costs, including costs for information,
enforcement, implementation and monitoring, as well as the results-based payments for
REDD+ activities (the direct cost)
• For instance, the FCPF is a World Bank program that has two funding mechanisms: the readiness
fund, which supports developing countries for participation in a future system of positive
incentives for REDD+, and the carbon fund, which provides payments for verified emission
reductions from REDD + programs in countries that have made considerable progress towards
REDD+ readiness
• The GCF, a fund established within the framework of the UNFCCC to assist developing countries
in climate change adaptation and mitigation practices, has also begun the REDD+ results-based
payments pilot program and will disburse around US$2.5 billion a year to developing countries

REDD+ contd..
• On February 2021, the Government of Nepal signed a landmark agreement with the
World Bank’s FCPF, unlocking up to US$45 million by 2025 to mitigate its carbon
emissions from deforestation and forest degradation
• With this Emission Reductions Payment Agreement (ERPA) in place, Nepal is expected to
reduce 9 million tons of carbon dioxide emissions in the Terai Arc Landscape (TAL)
• Nepal will receive $5 for every ton of carbon dioxide emission reduced
• This points to one of REDD's potential advantage for both developed and developing
countries, particularly at a time of volatile global economics: it can be cheap in comparison
to other mitigation activities, such as carbon capture and storage, renewable energy or geo-
engineering techniques
• Although the point is arguable, leaving forests more or less alone (forest conservation) can
bring more benefits for very little cost

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REDD+ contd..
ISSUES AND CHALLENGES OF REDD+
1) Project-based
• As the concept of REDD+ was being defined, many organizations began to promote
REDD+ projects at the scale of a forest area (e.g. large concession, National Park),
analogous to CDM projects under the Kyoto Protocol
• Reduction of emissions or enhancement of removals are vetted by an external organization
using a standard established by some third party (e.g. CCBA, VCS) and with carbon credits
traded on the international voluntary carbon market
• However, under the UNFCCC, REDD+ is defined as national strategies and action plans
and national monitoring, with sub-national coverage allowed as an interim measure only

REDD+ contd..
2) Benefit distribution
• The UNFCCC decisions on REDD+ are silent on the issue of rewarding countries and
participants for their verified net emission reductions or enhanced removals of greenhouse
gases
• It is not very likely that specific requirements for sub-national distribution of benefits will
be adopted, as this will be perceived to be an issue of national sovereignty
• The revenues a country receive must be distributed to the people in a transparent and
equitable manner by being specific on percentages retention for management,
identification of stakeholders, type of benefit or means of distribution

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REDD+ contd..
3) Free, Prior and Informed Consent (FPIC)
• The REDD+ decisions under the UNFCCC do not have free, prior and informed consent as
an explicit requirement
• A large portion of lands that will be targeted by REDD+ will likely be lands of indigenous
people and other communities
• Many of the world’s poorest people, including indigenous people, live in forests and
depend on them for their food and livelihoods. These people have an important role in
preserving and protecting the forest ecosystems
• Every, or at least many, communities need to provide their consent before any REDD+
activities can take place

REDD+ contd..
4) Leakage
• Leakage is a term that is often used in project-based REDD+
• The term originates from Afforestation/Reforestation projects under the CDM of the Kyoto
Protocol where it is assessed to quantify effects of the project outside of the project area
• Leakage is less of an issue when REDD+ is implemented at a national or subnational level,
as there can be no domestic leakage once full national coverage is achieved
• However, there can still be international leakage if activities are displaced across
international borders, or "displacement of emissions" between sectors, such as replacing
wood fires with kerosene stoves (AFOLU to energy) or construction with wood for
construction with concrete, cement and bricks (AFOLU to industry)
• REDD+ initiatives require leakage be considered in program design, so that potential
leakage of emissions, including across borders, can be minimized

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INTERNATIONAL POLICIES AND INSTITUTIONS contd…

5) Permanence
• There are questions regarding the longevity of carbon reductions via REDD+ activities
• Emissions reductions one-year can be rapidly undone the next as a result of fire, pest
outbreak and change in management, among other things

6) Monitoring, reporting and verification

• The ability to verify the results of projects is imperative in REDD+ but measuring the
amount of carbon stored in forests is difficult and imprecise
• Although the technical capability and expertise to measure deforestation has become
sufficient in recent years, there are still concerns on how developing countries can develop
and implement a reliable MRV system

REDD+ contd..
7) Offset vs reductions for industrialized countries
• There is considerable opposition to REDD+ on the basis that it is another method by which
industrialized nations can continue to pollute while not decreasing their own emissions
and rather offsetting them
• A Carbon offset is a way to compensate for your emissions by funding an equivalent CO2
saving elsewhere
• Critics argue that emission reductions must also come from the developed countries and
cannot only come via offsets

8) REDD projects and programs also need to be ‘additional’

• That is, they must lead directly to reductions in deforestation and degradation that would
not have happened simply as a result of wider changes in the economy

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THANK YOU!
Any question?

Next Class: REDD+ in Nepal

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