Lessons Learned for REDD+ from PES and Conservation Incentive Programs

Embed Size (px)

Citation preview

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    1/22

    Lessons Learned for REDD+ from PES

    and Conservation Incentive ProgramsExamples from Costa Rica, Mexico, and Ecuador

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    2/22

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    3/22

    Lessons Learned for REDD+ from PES

    and Conservation Incentive Programs

    Examples from Costa Rica, Mexico, and Ecuador

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    4/22

    Cover photo: Ranjith Ranjith/World Bank

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    5/22

    iii

    Contents

    Background ..............................................................................................................................1

    Brie synopsis o the country programs .........................................................................1

    PES and conservation incentive programs as building blocks or

    national REDD+ ...................................................................................................................2

    1. Participation agreements ...............................................................................................3

    2. Equity or social objectives .............................................................................................4

    3. Trade-os and synergies between multiple (ecosystem) benets ..................7

    4. Eective measuring, verication and reporting ....................................................9

    5. Sustainable nance and administrative costs ......................................................11

    The way ahead ..................................................................................................................... 13

    PES to REDD+ connections ..............................................................................................14

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    6/22

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    7/22

    1

    Background

    This Policy Brie originates rom discussions at the 16th Conerence o the

    Parties o the UNFCCC in Cancun in December 2010 between representatives

    o Costa Rica, Ecuador and Mexico, the World Bank and Forest Trends. These

    discussions ocused around learning or REDD+ rom these countries pay-

    ments or environmental services (PES) programs and, in the case o Ecuador,

    its conservation incentives program Socio Bosque. This Policy Brie is dawn

    rom a paper (Forest Trends 2011) combining lessons rom the country expe-

    riences with observations rom the wider literature.

    Brie synopsis o the country programs

    Costa Rica and Mexico have been pioneers in the creation o PES mecha-

    nisms. Costa Rica started its PES Program (PSA) scheme in 1997, coordinated

    by the National Forestry Financing Fund (FONAFIFO) with unds rom a tax

    on ossil uels. By 2009, there were 671,000 hectares under the PSA. This

    helped increase national orest cover rom 44% in 1998 to 51% in 2005. Costa

    Ricas experience is also notable as regards establishing an enabling policy,

    legal and institutional ramework or PES.

    Mexico started its Hydrological Environmental Services Program (PSAH)

    in 2003 with earmarked unds rom national water ees. The PSAH involves

    Whats it about?

    Lessons Learned for REDD+ from PES

    and Conservation Incentive Programs

    Examples from Costa Rica, Mexico, and Ecuador

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    8/22

    2

    payments to landowning ejidoand agrarian communities, as well as indi-

    vidual landowners, or maintaining orest in hydrologically important areas.

    In 2004, the Payments or Carbon and Biodiversity Services Program (PSA-

    CABSA), which includes agroorestry systems, was added. These programs,

    managed by the National Forest Commission (CONAFOR), have now beenintegrated into the Program o Payments or Environmental Services (PSAB).

    PSAB currently covers 2.2 million hectares o orest.

    More recently, Ecuador created the Socio Bosque program o con-

    servation incentives in 2008. In addition, in June 2009 the Ministry o

    Environment established the Pramo Chapter o Socio Bosque resulting in

    the additional conservation o about 18,000 hectares o this Andean eco-

    system o great importance or protecting and regulating water resources.

    By 2011 about 868,000 hectares o native orest and other priority ecosys-

    tems were protected.

    PES and conservation incentive programs asbuilding blocks or national REDD+

    Reducing Emissions rom Deorestation and Forest Degradationplus con-

    servation o orest carbon stocks, sustainable management o orests, and

    enhancement o orest carbon stocks (REDD+) aims to create incentives

    or developing countries to invest in orest based reduction o greenhouse

    gases. Three common provisions o PES programs are particularly relevant

    to REDD+: payments are conditional on perormance (or at least on realizing

    conservation activities), they require well-established legal and policy rame-

    works, and they need eective monitoring.

    Based on the three national experiences and the wider PES literature,

    Costa Rica, Mexico and Ecuador, supported by Forest Trends (2011), The

    World Bank and several experts, have identied key lessons (some o themoverlapping and most o them interrelated) or inorming the transition to

    REDD+ or incorporation o the current national program as a sub-program o

    the national REDD+ program. Table 1 lists a set o lessons grouped into ve

    main areas.

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    9/22

    3

    1. Participation agreements

    Participation agreements in national programs:

    challenges and synergies

    Contracting or conservation incentives and PES raises complex issues or

    participants and government regulators alike. For example, the contract

    scope must be careully and clearly delineated to avoid conusion, to prevent

    raud and abuse, and to create robust rameworks or rewarding conserva-

    tion actions or outcomes. A key challenge is how to make complex legaldocuments more accessible to less literate participants. Experiences with

    participation agreements in conservation incentive programs in Costa Rica,

    Mexico, and Ecuador are instructive or developing REDD+ generic contracts.

    The political and institutional contexts or these agreements are very

    important. Good coordination among relevant regulatory bodies is essential

    or keeping REDD+ administrative costs down and enhancing success. Access

    to technical support and training are also essential or increasing program

    reach and efcacy. In terms o their content, PES or conservation incentive

    participation agreements provide a useul ramework or REDD+ participation

    Table 1. Summary of lessons learned for REDD+ from PES/Conservaton incentve programs

    Areas of lesson learning Lesson titles

    1. Participation agreements Participationagreementsinnationalprograms:challengesandsynergies

    2. Equity or social objectives Progresstowardsenablingalegal,policyandgovernanceframework

    Goodgovernanceandappropriateinstitutionsatmultiplelevels Adoptingarights-basedapproach

    Tacklingobstaclestoparticipationofthepoor

    Crediblemonitoringofsocialoutcomesandimpacts

    3. Trade-os and synergies between

    multiple (ecosystem) benets

    Accountingformultiplebenetsintargetingpaymentsorincentives

    Explicitlyconsideringmultiplebenetsinevaluatingoutcomes

    Evaluatingsynergiesandtrade-oswithotherprograms

    Designingpaymentsorincentivesthatrewardmultiplebenets

    4. Measuring, reporting, and

    verication (MRV)

    Measuringindicatorsandtechnologies:synergiesbetweenPESandREDD+

    Measuringeectiveness:quanticationandattributionofprogramimpacts

    Addressingleakagethroughprogramdesignandmonitoring

    Cost-eectiveMRVandpotentialtrade-os

    HumancapitalinvestmentsforeectiveMRV

    5. Sustainable nance and

    administrative costs

    Diversiedfundingsourcesandnancialsustainability

    Engagingtheprivatesectorwithpublicprograms

    Fundingowscontextmatters

    Controllingadministrativecosts

    Area o

    lesson learning

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    10/22

    4

    agreementstheyarestandardizedandshort,andreferencemoredetailed

    program guidelines and procedural details. There are however key dierences

    when considering emission reductions or removals. REDD+ participation

    agreements will need to borrow experience rom the emission reduction pur-

    chase agreements (ERPAs) used in carbon markets other than PES programs.

    2. Equity or social objectives

    A central concern o PES and REDD+ is a possible trade-o between social

    and environmental objectives. In the country programs there is little evi-

    dence o a trade-o in the sense that social objectives are losing out to

    environmental objectives, but there is evidence that the latter have been

    aected by the strong social objectives resulting rom social and political

    pressures (e.g., or PES to meet wider government development objectives).

    The challenge in the context o REDD+ is how to increase carbon addition-

    ality without sacricing positive social outcomes; the ideal is to achieve

    win-win outcomes, but these have historically proved very elusive.

    Progress towards an enabling legal, policy and institutional

    ramework

    It is essential to combine direct incentives with progress towards an enabling

    policy legal, policy and governance ramework. A key area includes prop-

    erty rights and tenure: the wider evidence is that communities tend to

    protect orests better than governments; that more secure or clearer tenure

    can encourage conservation, but is not by itsel a sufcient condition

    when opportunity costs are high; and that tree or orest tenure is critical to

    resource user incentives. The three countries have made good progress in

    building an enabling ramework, but also ace some challenges:

    Costa Rica has recognized carbon and other ecosystem service rights

    as belonging to landowners, and has a clear legal and institutional

    ramework or PES under Forestry Law No. 7575, but under hal o orest

    owners have clear land title.

    InEcuador, other REDD+ components (apart rom Socio Bosque)

    include land tenure and titling, establishing the legal, nancial and

    institutional ramework, and inter-sectoral planning, but carbon prop-

    erty rights are currently unclear.

    Area o

    lesson learning

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    11/22

    5

    InMexico, tenure is clear with ejidos and agrarian communities owning

    70% o orest area, while almost all the rest are small area properties

    ownbysinglefamiliesbuttherearesomeinter-sectoralpolicyconicts:

    agricultural subsidy programs promote high value crops and basic

    grain production resulting in orest clearance in some areas.

    Good governance and appropriate institutions at all levels

    Goodgovernanceandappropriateinstitutionsareessentialatalllevelsfor

    eective and equitable program management, supportive local governance

    arrangements, lower transaction and implementation costs and benet

    sharing mechanisms, and because they aect the opportunity costs o SFM

    and conservation. It is possible to identiy some win-win opportunities, or

    example, in Mexico weak community governance oten coincides with high

    deorestation threats. In addition, strong community institutions, like in the

    case o Mexico, have avored positive social and environmental outcomes.

    The country programs also reveal good adaptive management capacity

    asreectedinthefrequentreforms.Theyhavetendedtobringinthird

    parties such as orestry consultants (in Costa Rica) and civil society organiza-

    tions (in Mexico) or compliance monitoring, but some observers note that

    the perormance o these parties is insufciently monitored. Looking ahead

    to REDD+, the ull paper sets out some well-established institutional design

    principles that are associated with success, promote accountability via easy

    tounderstandrulesthatcoversanctions,conictmanagementandadjudica-

    tion, and can be monitored and enorced locally.

    Adopting a rights-based approach

    A rights-based approach ties in closely with the social saeguards agreed in

    Cancun and international legislation. It includes land and carbon propertyrights, as well as a more general set o human rights associated with orest

    peoples rights to make decisions and live a peaceul and secure lie. The

    right to ree, prior and inormed consent (FPIC) is being incorporated into

    national procedures, but as yet there does not appear to have been a signi-

    cant project application o FPIC in these countries.

    It has been noted that a rights-based approach to REDD+ should

    include inter alia the training o orestry ofcials in their rights-related

    responsibilities, increased transparency o data and decision-making, and

    the reorm o laws, regulations and administrative and judicial mechanisms

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    12/22

    6

    to recognize and protect orest peoples rights. Also as FPIC emerges, coun-

    tries can promote good practice through national standards or norms or

    conducting FPIC.

    Obstacles to participation o the poor

    A lesson rom PES and other programs is that high transaction costs, eligi-

    bility criteria associated with land titles, and other entry barriers, such as

    educational levels and poor understanding o a program can make it di-

    cult or the poor to participate. Transaction costs relate to the complexity

    o application procedures and the quality o program outreach with

    poorer applicants.

    The country programs have responded to these challenges, or example,

    by simpliying application procedures, recognizing possessory rights short

    o a ormal land title (Costa Rica) and making alliances with civil society and

    NGOs to socialize and expand the program (Ecuador); in Mexico, transaction

    costs are relatively low since contracts are with community authorities.

    Credible monitoring o social outcomes and impacts

    One reason why it is hard to nd evidence which supports or contradicts

    views about the social eects o PES is the paucity o credible data. Either

    social impacts are not measured at all or monitoring systems do use

    methods that actor in attribution or cause and eect. This causes contested

    views on social benets and trade-os, prevents clear lesson learning or

    project and program design (via ex-ante social impact assessment), and

    inhibits adaptive management.

    There is little experience with monitoring social impacts in these or other

    countries. Under REDD+ there will be increasing pressure on countries to

    show that the social and biodiversity co-benets o carbon are real andadditionalespeciallyifthereisapricepremiumforequitableREDD+.There

    is thereore an urgent need or practical guidance in cost-eective social

    impact assessment o REDD+. This need is being met at the project level,

    but progress at the national level is slightly slower. This is however a key

    objective o both the Strategic Environmental and Social Assessment (SESA)

    process o the World Bank Forest Carbon Partnership Facility and the recently

    established Learning Initiative or Social Assessment o REDD+ (LISA-REDD).

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    13/22

    7

    3. Trade-os and synergies between multiple(ecosystem) benefts

    The close inter-relationship between biodiversity and environmental services

    provides opportunities or multiple (ecosystem) benets, but also includesthe potential or trade-os. Very ew assessments have been made o how a

    PES ocus on one environmental service can impact other environmental ser-

    vices. Given the potential o REDD+ to aect land management over larger

    areas and leverage urther nance, explicit consideration o environmental

    trade-os and synergies is critical.

    Accounting or multiple benets in targeting payments or

    incentives

    Most PES programs struggle to account or outcomes or the targeted

    environmental service, let alone account or outcomes in terms o multiple

    benets. REDD+ programs will ace similar challenges in accounting or

    multiple benets due to the inherent high variability in biodiversity and envi-

    ronmental services; lack o data on the relationships between specic land

    management actions, and the types, quantity and quality o environmental

    services provided; and weak denition o (and metrics or measuring) the

    environmental services provided.

    To account or environmental service outcomes, most PES programs use

    simple proxies (e.g. orest or non-orest area). Although orest conservation

    can be assumed to provide multiple benets, it will be important to assess

    how REDD+ carbon sequestration options aect other services.

    There are three main ways that PES programs can account or trade-os

    and synergies across multiple benets in the targeting o payments:

    aligningPEStargetingwithnationalorregionallanduseorconserva-tion priorities;

    evaluatingthespatialoverlapamongmultiplebenetsintargeting

    payments; and

    usingmultiplecriteriaforscoringorrankingeligibleprojects.

    Each approach involves data and cost challenges. However, explicitly

    addressing trade-os and synergies in targeting can increase the ecological

    eectiveness and economic efciency o PES programs. Ecuador, Costa Rica

    and Guatemala have begun developing spatially explicit inormation and

    Area o

    lesson learning

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    14/22

    8

    maps o the overlap among areas important or carbon, biodiversity, and

    water-related services. This approach establishes a basis or evaluating how

    PES can enhance (or detract rom) provision o multiple services, or achieve

    other conservation goals such as expanding protected areas. Mexico and

    Costa Rica have rened and adapted their eligibility criteria and ranking oprojects based on experience in early phases o their PES programs, and can

    target areas where multiple benets anddeorestation risks are greater. The

    emerging spatial analyses will provide vital data to help REDD+ programs

    support other conservation priorities.

    Evaluating synergies and trade-os

    PES or REDD+ programs can compete with other environmental goals and

    priorities or be undermined by competing programs and priorities (e.g.,

    agricultural expansion, biouels, and major roads). Only by understanding

    positive and negative impacts on other services will it be possible to

    design REDD+ programs that integrate multiple goals or development and

    conservation.

    Few PES programs explicitly consider trade-os and synergies with other

    programs. REDD+ strategies need to evaluate and manage synergies and

    trade-os, and engage with multiple stakeholders to align REDD+ with other

    policies. For example, REDD+ strategies should support programs promoting

    the sustainable production o high-value crops (e.g., the Roundtables or

    Sustainable Soy and Sustainable Palm Oil), and strengthen environmental

    impact assessment (EIA) regulations.

    Designing payments or incentives that reward multiple benets

    In theory, PES programs that reward multiple benets have several advan-

    tages over programs that pay or a single service. A lesson o Mexicos PSABis that successul programs are linked to a clear perception o the relation-

    ship between orest conservation and multiple benets. Multiple payments

    would provide stronger incentives or conservation, whereas payment or

    a single service may not cover opportunity costs. PES programs have more

    chance o success i unds rom dierent services can be combined. For

    example, in Bolivia an initial biodiversity payment or orest conservation

    provided the start-up costs to allow a watershed payment services program

    to be designed and implemented, with long-term unding rom water users.

    But the challenges associated with multiple ecosystem service payments

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    15/22

    9

    (additionality, metrics, accounting and relationships between management

    activities and service provision) will substantially increase transaction costs.

    Despite these challenges, PES programs have explored several ways or

    rewarding multiple benets: payments or dierent services over time in

    Bolivia; tiered payments based on the importance o areas or particularservices in Mexico and Costa Rica; and payments tied to a points system in

    the above-mentioned Silvopastoral Project. Monitoring data rom the latter

    suggest that it has resulted in greater environmental benets and addition-

    ality than some other PES programs in the region. Payments that reward

    multiple services can also help ensure that a narrow ocus on carbon in

    REDD+ does not result in a trade-o with other vital ecosystem services such

    as biodiversity and water.

    4. Eective measuring, verifcation and reporting

    To benet rom results-based REDD+ nancing, countries must use robust

    measuring, reporting, and verication (MRV) systems. Eorts to develop and

    implement these systems can benet rom the experiences o conservation

    incentive programs, which have been developing and testing MRV systems

    or years. At the same time, new MRV systems and data collected or REDD+

    can strengthen these programs and could even allow them to benet rom

    REDD+ nance.

    Monitoring indicators and technologies: synergies between PES

    and REDD+

    Emerging REDD+ programs can benet rom the monitoring eorts o

    the conservation incentive programs. Existing data and systems or moni-

    toringforestcoverthedominantmonitoringindicatorcaninformREDD+ data sets i the methods, protocols, and denitions are consis-

    tent. Moreover, REDD+ programs can explore synergies with ongoing

    site visits in the national programs to monitor land use changes that are

    more difcult to track than deorestation, but are real opportunities or

    REDD+namelyforestdegradation,improvedforestmanagement,and

    carbon stock enhancement.

    REDD+ monitoring, on the other hand, can help conservation incentive

    programs by identiying signicant deorestation events on incentive prop-

    erties or highlighting areas experiencing increased deorestation, and which

    Area o

    lesson learning

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    16/22

    10

    need more support and/or compliance enorcement. There are however

    distinctions in the general requirements or REDD+ (e.g., specic project

    activities, land uses, and vegetation types) that preclude direct MRV syner-

    gies with incentive programs.

    Measuring eectiveness: quantication and attribution o

    program impacts

    Attributing precise levels o conservation (or emissions reductions) to a

    specic incentive (or REDD+) program is inherently difcult, since it requires

    one to credibly describe a counteractual scenario, and it is even more di-

    cult when program participants have very dierent socio-economic and

    biophysical characteristics. While assessing program eectiveness requires

    careul design, it need not be prohibitively expensive. A research design in

    which impacts are attributed rom the start, and based on a sound counter-

    actual or reerence scenario, rather than ex-postis ar more likely to generate

    accurate and reliable data.

    Addressing leakage through program design and monitoring

    Although national REDD+ programs aim to account or leakage through

    national systems o monitoring and accounting, preventing activity displace-

    ment or market leakage is very challenging. To the extent that conservation

    incentive mechanisms are used as tools or REDD+, specic leakage mitiga-

    tionmeasuresareneededtheseincludearequirementstoenrollallforests

    within a property to avoid intra-property activity shiting; a balanced system

    o sanctions or deorestation in parallel with incentive payments; and the

    careul design o agricultural or livestock intensication in non-orest lands

    alongside incentives or orest conservation.

    Cost-ecient MRV and potential trade-os

    Emerging REDD+ programs need to be aware o the costs associated with

    MRV, including the costs o acquiring remotely-sensed data, processing and

    analyzing the data, ground-truthing it, assigning carbon densities through

    site visits, and administrative costs. The MRV system may also require

    population and socio-economic data in order to construct an accurate base-

    linecollectingthiscanbecomplexandexpensive.Ingeneral,themore

    precise that the data needs to be, the higher will be the cost. A reasonable

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    17/22

    11

    cost o monitoring or REDD+ is 10% o total costs; the national incentive

    programs have expended about 15% on monitoring costs.

    Human capital investments or eective MRV

    Mexico, Costa Rica, and Ecuador are taking advantage o REDD+ readiness

    unding or investing in human and institutional capacity to create a timely,

    accurate, and cost-eective MRV system. The country experiences suggest

    that a cost-eective approach is to employ third-parties to undertake much

    o the monitoring, especially the site visits. It may also be cost-eective to

    engage community members and NGOs to monitor compliance and track

    indicators that are difcult or program sta to monitor. This would help

    increase community ownership and social capital.

    5. Sustainable fnance and administrative costs

    A key challenge or PES and REDD+ programs is nancial sustainability,

    i.e., creation o a stable long-term unding path to achieve the desired out-

    comes. The nancial success o PES and REDD+ hinges on integration at

    various levels: integration o dierent sources o public and private nance;

    o regional scales and duration o unds; and integration o administrative

    processes or und disbursement, MRV, and registration. Designing PES

    and REDD+ programs to complement certication programs, compliance

    requirements, state unding, and agricultural project nance will acilitate

    enrollment, maximize co-investment, and amortize transaction and adminis-

    tration costs across programs.

    Diversied unding sources and nancial sustainability

    To secure sustainable land use changes, a PES program depends on a

    predictable delivery o nancial incentives over time. PES and REDD+

    programs require an incentive structure that delivers start-up unds or

    rapid uptake o best practice, along with consistent payments to address

    landowner nancial risk. As well as balancing short and long-term payment

    solutions, combining unding sources and types can increase the nancial

    security o PES and REDD+ programs. Recognizing these challenges, some

    countries have included mechanisms such as environmental endowment

    unds which acilitate long-term multiple investments. These have added

    Area o

    lesson learning

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    18/22

    12

    to nancial sustainability as payments are made rom capital interest.

    Advocates o national REDD+ approaches see advantages o unding

    mechanisms that can leverage national, public, donor and market revenues

    which can help address the unding gap in the early stages o program and

    project development.

    Engaging the private sector with public programs

    While public unding has been prominent in the three programs, it may be

    limited in the longer term. To ensure sustainable land use change, public

    unding or conservation activities is best structured to leverage private

    investment. This can be accomplished through tools such as loan guaran-

    tees, guaranteed x priced payments, tax incentives and other mechanisms

    that are already successully deployed to stimulate investment in the renew-

    able energy sector. Using public nance to establish institutional rameworks

    that reduce private sector risk and embed REDD+ in a broader development

    vision is an important goal o readiness programs. Rather than crowding

    out private sector nance by over-regulating ecosystem services provision,

    public unds could be used to mitigate specic risks acing the private sector.

    Public-private institutions oer a high potential strategy to leverage private

    unding in national conservation initiatives.

    Funding fowscontext matters

    Incentives directed at nancing gaps can help PES programs become efcient

    and catalytic. By linking PES with existing conservation or land use programs,

    such as micro-credit nancing to armers and orest landowners, PES is not

    the only way to nance a land use change, and the nancial sustainability o

    the conservation activity can be enhanced. In the three national incentives

    programs, landowners are paid to not deorest. This preventative approachimplies that payments need to continue indenitely, an unlikely scenario. In

    REDD+ it will be important to move rom prevention to alternative sustainable

    land use models. To date, national incentive programs have not experimented

    sufciently with nancing alternative land uses apart rom orest conservation.

    Controlling administrative costs

    Eective environmental targeting is costly in terms o MRV and other

    transaction costs, or example the costs associated with dierentiated pay-

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    19/22

    13

    ments based on opportunity costs. Controlling administrative costs will be

    a big challenge or national REDD+, or example, or eective application

    o the REDD+ saeguards. The issues o how to incorporate the various

    stakeholders that will both impact and be impacted by REDD+, and how

    to ensure equitable benet distribution or all orest stewards are majorchallenges. The country experiences indicate that the costs can be kept

    in check by using local technical expertise, appropriate technology and

    strong administrative integration.

    The way ahead

    This review shows that national PES and conservation incentive programs are

    versatile mechanisms that can evolve into dierent orms o positive incen-

    tives, and providing a wealth o experience or inorming the development

    o REDD+. As shown in the diagram on page 14, developing a well-estab-

    lished PES program provides a valuable bridge with REDD+.

    In the REDD+ preparation process, 54 countries have so ar expressed

    interest in developing REDD+ strategies to be ready or the post-Kyoto

    period, and at least one hal o those countries1, 2 have a readiness plan

    approved or pending approval. Most o these plans mention the use o

    positive incentives to achieve REDD+ objectives, and have specied PES as

    the main driver o these strategies. Moreover, many countries have shown

    a strong interest in the national programs, and several have made country

    visits with the aim o establishing lines o collaboration or early action. Par-

    ticular interest has been shown in aspects such as local governance, orest

    inventories and monitoring systems.

    A simple way o ensuring that REDD+ plans take account o the valuable

    lessons o experience rom the national experiences is or the new countries

    to work together with more experienced ones. Thus Costa Rica, Ecuador, andMexico could act as coaches with donor support to avoid such south-to-

    south exchanges becoming a nancial burden.

    1 November 2011. This policy brie has been prepared by Costa Rica, Mexico, and Ecuador withsupport rom Forest Trends and The World Bank,rom the paper and a workshop discussiononLessons Learned or REDD+ rom PES and Conservation Incentive Programs in Costa Rica,Mexico and Ecuador.

    2 REDD+ Partnership, FCPF, UN REDD.

    Conclusions

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    20/22

    14

    PES to REDD+ connectionsAchievements

    Obstacles

    PES or conservation incentives systems

    Provideincentivesforforestownersorlegalpossessorstostopormitigatedeforestation

    and/or degradation.

    Allows or the establishment o monitoring systems, improve governance structures, andencourage social involvement.

    Contribute to emission reductions that can be acceptable as ast-start actions in the

    REDD+ ramework.

    Kindle the rural economy creating jobs by stimulating integrated management o orest

    resources.

    Contribute solving the problem o poverty thus avoiding migration to the cities, which

    orest management, conservation policies and rural programs in most countries have

    ailed to mitigate.

    Formalize property rights by revising both land titling and property limits denitions.

    Enhance conservation awareness and its contribution to mitigate climate change.

    Identiy vulnerable ecosystems with deorestation risks and prioritize conservation

    actions.

    Obstacles in the REDD+ Process

    Governments ailure to recognize the land rights o orest communities. Yet the

    traditional knowledge and practices o these communities, including Indigenous Peoples,

    have enabled the sustainable management and conservation o natural orest areas or

    thousands o years. These communities have the right to occupy their ancestral lands and

    reely access the resources there.

    Lack o knowledge and capacities, and ineective communication.

    Subsidy approaches are vulnerable to problems o, or example, additionality, leakage and

    perverse incentives, all o which imply the need or strong governance.

    Trade-o o multiple objectives (co-benets): equity and poverty alleviation as

    undamental requirements versus no prioritizing such co-benets at the expense o

    successul carbon storage.

    PROVIDE INSTRUMENTS FOR SOLVING:

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    21/22

  • 8/3/2019 Lessons Learned for REDD+ from PES and Conservation Incentive Programs

    22/22

    Lessons Learned for REDD+ from PES

    and Conservation Incentive Programs

    Examples from Costa Rica, Mexico, and Ecuador