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California's carbon market could help stop Amazon deforestation

(This post appeared in Point Carbon North America on Feb. 7)

By Juan Carlos Jintiach, Shuar indigenous leader from the Amazon basin, and Derek Walker, Associate Vice President for the US Climate and Energy Program at Environmental Defense Fund

Credit: Dylan Murray

California has a role to play in keeping Amazon deforestation on the decline and giving indigenous and forest communities the recognition and support they need. Credit: Dylan Murray

A recent article in the Journal of Climate predicts that destroying the Amazon rainforest would cause disastrous drought across California and the western United States. Californians are already no strangers to drought – the state is suffering one of its worst on record.

But the research adds an interesting dimension to what we already know from numerous studies about deforestation: that greenhouse gas pollution in California and around the world makes forests, including the Amazon, drier and more susceptible to widespread fires. California may be thousands of miles away from “the Earth’s lungs,” but how we treat our diverse ecosystems directly affects the one atmosphere we all share.

It is good news for everyone that California’s Global Warming Solutions Act (AB 32) – which includes the world’s most comprehensive carbon market – is already helping reduce the state’s greenhouse gas pollution. Amazon states and nations have also greatly reduced their greenhouse gas emissions from deforestation, which collectively accounts for as much greenhouse gas pollution as all the cars, trucks, and buses in the world. California now has a terrific opportunity to show global environmental leadership by helping Amazon states keep deforestation rates headed for zero while helping save money for companies and consumers in the Golden State.

The current world leader in greenhouse gas reductions is Brazil, which has brought Amazon deforestation down about 75% since 2005 and kept almost 3 billion tons of carbon out of the atmosphere. Indigenous peoples and forest communities have played an essential role in this accomplishment. Decades of indigenous peoples’ struggles against corporate miners, loggers, ranchers, and land grabbers and advocacy in defense of their land rights have resulted in the legal protection of 45% of the Amazon basin as indigenous territory and forest reserves – an area more than eight times the size of California.

These dedicated indigenous and forest lands hold about half of the forest carbon of the Amazon, and have proven to be effective barriers against frontier expansion and deforestation. In a real sense, indigenous and forest peoples are providing a huge global environmental service, but that service is almost entirely unrecognized, let alone compensated. And in Brazil, where agribusiness is pushing back hard against law enforcement and reserve creation, deforestation is back on the upswing – increasing nearly 30% last year.

California has a role to play in keeping Amazon deforestation on the decline and giving indigenous and forest communities the recognition and support they need. A program called Reducing Emissions from Deforestation and Forest Degradation (REDD+) gives countries or states that commit to reducing deforestation below historic levels “credits” they can sell in carbon cap-and-trade markets. Getting these programs recognized by California’s carbon market would send a powerful signal that forests in the Amazon and around the world are worth more alive than dead, and would also provide real incentives for further reductions.

Forest community and indigenous leaders from Latin America visited California to engage state leaders and policymakers on the issues of deforestation, indigenous and local peoples’ rights, and potential partnership with the state's carbon market. From left: Juan Carlos Jintiach (Shuar indigenous leader), Megaron Txucarramae (Kayapo indigenous leader) and Lubenay (of a Chiapas forest community).

A few weeks ago, indigenous leaders from Brazil, Ecuador, and Mexico were in California engaging state leaders and policymakers on the issues of deforestation, indigenous and local peoples’ rights, and potential partnership with California’s carbon market. California should insist that only jurisdictions that respect indigenous and local peoples’ rights, territory and knowledge, and ensure that they benefit from REDD+ programs get access to its market.

The successful adoption and implementation of AB 32 is proof that California is leading the nation on effective, market-based climate change policies. But it’s time to take that another step forward. By allowing credits from REDD+ to play a role in the AB 32 program, the Golden State can be a world leader on one of the most significant causes of climate change and take action to protect the health and prosperity of a threatened land and its people.

 

Learn more about REDD+ and California:

Posted in Brazil, Deforestation, Indigenous peoples, REDD|: | 1 Response

Does the future of the Amazon rainforest lie in California?

Derek and CA delegation Jan 2014

From left to right: Lubenay, Juan Carlos Jintiach, Derek Walker and Megaron Txucarramae (a leader of Brazil’s indigenous Kayapo tribe).

This post was co-authored by Steve Schwartzman, EDF's director of tropical forest policy, and originally appeared on EDF Voices.

Over the past year, California’s new carbon market has held five auctions, generating $530 million for projects that reduce climate pollution in the state. This is just the start, however, as we believe the program has potential to achieve substantial environmental benefits half a world away in the Amazon rainforest.

We are working with community partners, scientific and business leaders, and California policy makers to craft a rule that permits credits from REDD (Reducing Emissions from Deforestation and forest Degradation) to be used in California’s carbon market, rewarding indigenous and forest-dwelling communities with incentives for ecosystem protection.

California is leading the way

Using California’s new carbon market to reward rainforest protection would be a powerful signal to Brazil, Mexico, and other tropical countries—and to the world—that leaving forests standing is more profitable than cutting them down.

With the right rules in place, California could create an international gold standard for REDD credits that could be adopted by emerging carbon markets in China, Mexico and beyond.

The right technology

There’s a misperception about how hard it is to measure whether forests are being destroyed or protected. Current technology makes it possible, right now. Satellite and airplane-based sensors are already capable of recording what’s going on with high accuracy. This technology enables us to measure emissions reductions across whole states or countries, the best way to ensure that the reductions are real.

The right partners

We need to help pull together the best policy experts, scientists, and environmental organizations to help California government officials write model rules for REDD that can create a race-to-the-top for forest protection around the world. We need to show that trailblazing states – like Acre in Brazil and Chiapas in Mexico – are ready to be partners with California and can deliver the rigorous level of enforcement and program implementation that California requires.

The right time

There’s real urgency to linking California’s carbon market with REDD. Even though Brazil, home to the world’s largest tracts of tropical forests, has cut deforestation by about 75% from its 1996-2005 levels and consequently become the world leader in reducing greenhouse gas emissions, that progress is fragile. Over the past year, agribusiness has been pushing back hard against law enforcement and the creation of protected reserves, and deforestation increased nearly 30%. If we want Brazil to continue reducing its deforestation towards zero, we must provide economic incentives to protect the Amazon, and California can be an important catalyst in doing that.

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Posted in Deforestation, Indigenous peoples, REDD, United States|: , | Leave a comment

Hopeful signs for U.S. and Chinese Cooperation on Climate Change

The past week has offered a thrilling glimpse into the future for the millions of people around the U.S. and across the world who are yearning for real solutions to climate change. On June 18, Shenzhen, an economically-vibrant city of 15 million on the South China Sea, launched the first of seven Chinese regional pilot carbon market systems slated to begin by the end of 2014. The Shenzhen market is set include at least 635 local companies that contribute approximately 40% of the city’s CO2 emissions, and is expected to result in a 21% decrease in the carbon intensity of the economy in just two years. Shenzhen is one of seven carbon trading pilots that represent about 25% of China’s GDP and may include thousands of companies emitting hundreds of millions of tons of CO2.

Derek Walker is Associate Vice President of EDF's U.S. Climate and Energy Program.

Inspiration, encouragement and support for Shenzhen’s maiden market launch came from a familiar place:  California. Both Shenzhen and California have well-established reputations as trailblazers on innovative solutions that match economic growth with environmental gains. Perhaps it will be little surprise, then, that none other than the state’s top climate change official,  California Air Resources Board (CARB) Chair Mary Nichols and Governor Brown’s personal representative, Wade Crowfoot, stood with senior officials from Shenzhen and from the National Development and Reform Commission (NDRC) at last Tuesday’s launch. Nichols has presided over the development of California’s groundbreaking climate change effort and oversaw the Fall 2013 launch of California’s carbon market, the first comprehensive state-level system in the U.S.

The California market is a promising model for Shenzhen and the other Chinese pilots. California has held three allowance auctions to date, with strong participation by companies and a modest increase in the price of allowances with each auction. Ultimately, California’s carbon market will be a key element driving the state back to 1990 levels of greenhouse gas pollution by 2020, accompanied by dramatic improvements in air quality and significant incentives to carbon-cutting entrepreneurs. Nichols formalized the partnership between California and Shenzhen by signing a Memorandum of Understanding (MOU) paving the way for technical cooperation between officials and other stakeholders engaged in the respective carbon market programs.

The California-Shenzhen partnership is just the tip of the iceberg in the crescendo of cooperation between the U.S. and China.  Earlier this month in California, President Obama and Chinese President Xi signed an agreement to collectively fight dangerous hydrofluorocarbons (HFCs) that are used in air conditioning and refrigeration.  HFCs are pound-for-pound some the most potent greenhouse gases, and controlling them will be an essential short-term piece of solving the climate change puzzle.

As California and Shenzhen roll up their sleeves to support one another’s ambitious climate change programs, they will provide demonstrable proof of the promise of cooperation between their nations and will deliver results and momentum towards national action. In her remarks at the Shenzhen launch, Mary Nichols called the leadership of California, Shenzhen, and other provinces, states and cities around the world “a foundation that national and international action can spring from.”

The Chinese carbon trading pilots are strong signals that climate change is an issue to be taken seriously and to be acted on expeditiously. In the U.S., President Barack Obama takes the stage in Washington tomorrow to lay out his Administration’s vision for bold national action to fight climate change, an eagerly-anticipated outline of how progress will be achieved towards Obama’s 2009 commitment to slash greenhouse gas pollution 17% by 2020.

While 2020 will be an important milestone in charting progress, it is but the beginning of a long journey. Climate change science couldn’t be clearer about the need to achieve dramatic greenhouse gas reductions by mid-century. And no long-term solution to the environmental challenge of our lifetime will be found without the leadership of the world’s top greenhouse gas polluters. That leadership is now coalescing into national and bilateral action and, for the first time in some time, offers hope that we are headed in the right direction.

Cross-posted from EDF's California Dream 2.0 blog.

Posted in Emissions trading & markets, News|: | 1 Response
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