EDF Talks Global Climate

Cocoa partnerships: How collaboration helps the Arhuacos of Colombia conserve the forest and improve economic opportunity

Women from the Arhuaco indigenous nation of Colombia prepare to process cocoa produced for sustainable chocolate company Original Beans. Photo by Original Beans

This post was co-authored by Chris Meyer, Senior Manager of Amazon Forest Policy at EDF, and Sybelle VanAntwerp, Community Economic Development Volunteer serving with the Peace Corps in Colombia. It originally appeared on peacecorps.gov. En español.

The story behind Dutch chocolate company Original Beans’ Arhuaco Businchari chocolate bar begins in the tropical forest covered Sierra Nevada region of Colombia, on the Caribbean coast in the northern reaches of South America. That is where the indigenous Arhuaco nation has been able to cultivate, harvest, and sell cocoa successfully for the past two years, improving the economic opportunities for their communities while conserving the precious forest around them.

This past March, the Environmental Defense Fund (EDF) organized a workshop in Bogotá that provided the Arhuaco community a platform for knowledge sharing. It also sponsored a visit by a cocoa buyer. This fruitful collaboration was made possible with the help of the US government’s Peace Corps program and EcoDecision’s Canopy Bridge, with USAID funding. It’s an example that shows how collaboration is key to conserving the remaining tropical forests and supporting indigenous peoples to develop alternative economic activities that align with their cultural values. For the Arhuacos, the collaboration is already generating results and they are sharing their experience with entrepreneurial indigenous groups throughout the country.

The buyer visit, a key element of this collaboration, took place at the Arhuaco cocoa processing center just outside of Santa Marta, Magdalena. Jan Schubert, from Original Beans, the Arhuacos’ principal European partner, spent almost two weeks in the region promoting community cocoa initiatives. According to Original Beans, the company has a distinctive vision to “replenish what we consume” – focusing on biodiverse agroecosystems, reforestation, sustainable value chains, and community involvement. It is more than just a chocolate company. Currently, Original Beans makes their own Arhuaco Businchari bar, has an exclusive agreement for single-origin couverture with JRE Europe restaurants, and also recently started selling cocoa beans to small-scale chocolate makers through the Original Beans warehouse in Amsterdam.

Schubert explained, “With the Arhuaco community’s Colombian buyer, Cacao de Colombia, Original Beans aims to buy 10 metric tons of cocoa beans during the 2018 harvest, supporting indigenous livelihoods with a stable price more than double the market average.”

Challenges of organic certification

During the visit, Schubert supported several efforts, including working closely with members of the Arhuaco community association ASOARHUACO to plan out the next steps in the organic certification process. This will be crucial in the coming year to increase Arhuaco cocoa’s commercial value and reach a wider market segment in Europe. Although the community’s cocoa production is yet to be certified, Arhuaco producers follow organic cultivation principles aligned with their cultural values. Challenges of geography and communication make organic certification especially difficult. Original Beans used this most recent visit as an opportunity to strategize with association leaders, especially around the organization of baseline GPS information for each producer that will be evaluated by the certification body.

In the remote Arhuaco village of Bunkwimake in the higher altitudes, the vision is to continue developing a nursery that will house native tree species and eventually rescued cacao bunsi, or white cocoa, which is a unique variety that is native to the Sierra Nevada. Original Beans donated materials to construct a nursery and is exploring the possibility of installing an irrigation system, collaborating closely with community leaders and advisors to determine the next steps of support.

A girl from the Arhuaco indigenous nation in Northern Colombia samples a selection of chocolate bars from Original Beans, a sustainable chocolate company that is partnering with the Arhuaco nation on cocoa production. Photo by Original Beans.

Indigenous entrepreneurship

Arhuaco indigenous leaders have begun looking to share their experiences with commercializing cocoa and coffee beyond their community. Arhuaco leaders Francisco Villafaña and Jader Mejía presented their experiences at the Third Macro-Territorial Meeting on Economies for Indigenous Peoples of the Northeastern Amazon in Bogotá. Organized by EDF, the GAIA Amazonas Foundation, and Global Green Growth Institute, the workshop served as a noteworthy moment of capacity building between indigenous communities.

Villafaña and Mejía’s presentation told a success story of indigenous entrepreneurship. They spoke about the development of the value chains of both cocoa and coffee, key partners and aid organizations that have helped them in the process, and overarching successes and challenges. One prominent partner that has helped the community since 2009 is USAID and ANADARKO, through the nonprofit ACDI/VOCA; in addition, the community has received national government support through a UNODC alternative livelihoods program to replace illicit use crops. Villafaña and Mejía demonstrated the Arhuacos’ achievements, which serve as a model for other indigenous groups, including creating their own brands and small batches of chocolate bars and coffee through this financing. For the Arhuaco presenters, the forum was invaluable as they continue to develop the marketing skills necessary for successful business growth. Not only were they able to gain experience with public speaking, but they were also able to network with potential business partners.

In response to the Arhuacos’ presentation, workshop participants highlighted that profit is not always a sufficient incentive to develop an economic activity that is in line with indigenous values. The speakers portrayed profit as a tool and resource, rather than an objective, to achieve loftier goals such as increasing market access or infrastructure, improving food sovereignty, and reclaiming territories. The participants supported the idea that communities need to drive their own projects, instead of being led by outsiders that have less of an understanding or stake in the work within the community. Foreign organizations have a greater impact when they empower community leadership, help strengthen existing structures and create learning opportunities within each process so that participants can become self-sufficient in the long-term.

Narratives such as that of ASOARHUACO might generate new ideas among participants for project proposals; there is a significant call for community-driven projects from the Colombian government through its Indigenous Pillar of the Amazon Vision Program (PIVA). Ultimately, Villafaña and Mejía offered the workshop’s participants a shared perspective relevant to Colombia, stemming from a wealth of common experiences in developing economic opportunities consistent with their indigenous culture.

From Bogotá to Bunkwimake, this collaboration is strengthening the Arhuacos’ efforts to market their products and ultimately drive their own processes. It connects the community members with new experiences, opportunities, and partners that empowers individuals and increases the community’s sense of ownership over its cacao production.

The cacao wager has not been won; the community must continue to insist on its short, medium, and long-term objectives. For this reason, it needs to continue carrying out institutional management and leadership to achieve its dreams of the peace, balance, and health of Mother Nature.

 

Also posted in Agriculture, Indigenous peoples / Leave a comment

Deforestation-free supply chains: 4 trends to watch

Trees removed from a forest. iStock

Hundreds of companies have committed to eliminating deforestation from their supply chains by 2020, but the political landscape and market conditions are shifting as the deadline draws nearer. Here are four emerging trends that these companies – as well as the governments and civil society organizations engaging with them to zero out deforestation – should be taking into consideration as 2020 fast approaches.

1. Western companies can’t solve deforestation on their own.

One significantly subscribed-to theory of change for deforestation-free supply chains was that if enough companies set goals and purchase deforestation-free commodities, we will see reductions in deforestation globally. But so far, even with more than 350 companies setting forest-related goals, we are not seeing this transformational change. This is primarily because emerging economies play an increasingly important role in commodity markets. U.S. and European companies do not have enough market leverage to have a widespread impact.

Take beef, for example. Beef accounts for more deforestation annually than all of soy, palm oil, and pulp and paper combined. Western consumers actually eat very little of it. Most beef is consumed domestically in countries like Brazil, while the rest goes to countries where deforestation isn’t a major factor in consumers’ purchasing decisions, like Russia and countries in the Middle East.

Similarly, markets for palm oil, another major driver of deforestation, tend to prioritize price over environmental impact. This is particularly true in China, India and the domestic markets of Indonesia and Malaysia.

Clearly then, a deforestation-free strategy needs to involve non-Western markets and address those supply chains.

2. New approaches that focus on local context and solving governance challenges are gaining traction among supplier companies.

Three new approaches that focus on local context and solving governance challenges are gaining traction among supplier companies. These three initiatives follow what is known as the jurisdictional approach because they focus on engaging actors from the government, private sector, farmer groups, and civil society. With the jurisdictional approach, the private sector works with governments to reduce deforestation and improve productivity in an entire region.

  • Mato Grosso, Brazil’s Produce, Conserve, and Include (PCI) strategy. PCI is one of the pioneering pilots of the jurisdictional approach, and is gaining momentum after finalizing an investment plan and a $54 million commitment to the provincial governments for REDD+. This multi-stakeholder platform aims to work with producer companies to increase production of agriculture and livestock while reducing deforestation, increasing reforestation, and incorporating smallholders and indigenous peoples in low-emission rural development. The PCI is tackling thorny commodities such as the state’s beef and soy production.
  • Olam’s Living Landscape policy. Few upstream plantation companies have agreed to change their plantation development and purchasing strategies, but Olam just did. Their new strategy focuses on collaborating with multiple stakeholders in landscapes and making a holistic positive impact – not just mitigating negative impacts.
  • The World Cocoa Foundation’s Forest and Climate Initiative. As part of this initiative, private sector actors up and down the cocoa supply chain are collaborating through an association to work with the governments of Ghana and Ivory Coast to reduce deforestation in the production of cocoa. This exciting collaborative model allows companies to engage alongside peers and with governments, and has potential which will be watched closely.

3. Certifications are limited in their ability to solve commodity-linked deforestation on a broad scale.

Global certification processes can help companies take short- and medium-term steps toward reducing deforestation in their supply chains. However, corporate leadership on forests needs to incorporate approaches that help resolve the problem on a broader scale and for the long term.

A better approach is a broader process such as the Responsible Sourcing Palm Oil (RSPO) certification system that is now being implemented in a number of jurisdictions. The RSPO helps its members think more broadly about indirect impacts and other supply chain actors – such as government agencies – in places where palm oil is grown and being developed.

4. More complex approaches that include governments are necessary in most contexts and for medium- and long-term success.

Because deforestation is a complex, multi-layered challenge, solving deforestation necessitates a complex approach – one that involves players from the crops and industries causing deforestation, as well as local and national political processes. Inherent in such a complex approach is the need to define complex concepts, including the term “deforestation” itself, and what is “legal” at the state, provincial, and/or national level.

TFA 2020 General Assembly and making progress

The Tropical Forest Alliance (TFA) 2020 initiative is a platform focused on enhancing partnerships between government, private sector, and civil society organizations to eliminate deforestation. Parties at TFA’s upcoming General Assembly will tackle how to achieve the goal of zero net deforestation by 2020 from key commodities, like beef, soy and palm oil.

EDF will promote jurisdictional approaches, including Mato Grosso’s Produce, Conserve, and Include strategy, during a side event geared at increasing the engagement of corporate actors with government, farmers and civil society.

Reducing deforestation remains a significant challenge and becoming more urgent – deforestation rates remain high and have a direct impact on global warming. It will take the actors involved in deforestation to come together to find a solution that works for everyone, and for the planet. Promising solutions, like the jurisdictional approach, are emerging and showing signs that it can be done.

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New report shows landscape of finance for REDD+ and climate action in forests

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A new report from Environmental Defense Fund and Forest Trends identifies the sources of funding currently available for REDD+ and climate action in forests, and analyzes the challenges and opportunities for accessing and coordinating this finance. Designed to serve as a resource for negotiators, policymakers, practitioners, NGOs, and others involved with the implementation of REDD+ and climate action in forests, the report aims to contribute to scaling up, coordinating, and allocating funding in a timely, efficient, and effective manner.

The report, “Mapping Forest Finance: A Landscape of Available Sources of Finance for REDD+ and Climate Action in Forests”:

    • Describes the sources of finance available for each phase of REDD+ —Readiness (Phase 1), Implementation (Phase 2), and Results-based Finance (Phase 3) – and related climate action in forests by detailing each finance source’s: type, mechanism, eligibility requirements, scale, access process, scope, and challenges.
    • Presents information that is both historical and forward looking so as to provide context and inform future decisions when it comes to planning REDD+ implementation and supporting financial strategies combining a diversity of funding sources. The Green Climate Fund, for example, recently announced a pilot program for forest sector results-based payments. Additionally, while not yet an available source of results-based finance, transfer-based payments (TBPs) are a potential source of viable funding for performance based results. Parties in the UNFCCC are currently negotiating internationally transferred mitigation outcomes (ITMOs) as a part of Article 6.2, which will determine the exact nature of TBPs in relation to REDD+.
    • Reveals many challenges with and opportunities for accessing and coordinating finance for REDD+ and climate action in forests at the international and national level. Key challenges identified include minimizing the gap between what is available and what is needed for each REDD+ phase; developing cohesive national visions that can be translated into usable investment plans; allocating funding appropriately according to cross-sectoral and coherent national finance strategies; and aligning requirements and criteria under funding sources for consistency and coherency of requirement processes so to facilitate access and disbursements.
    • Highlights challenges specific to forest landscape restoration (FLR), such as the high costs associated with addressing degradation and promoting sustainable management of forest landscapes, when compared to activities for reducing emissions from avoided deforestation. This challenge creates the need for more comprehensive national REDD+ visions that include activities to address the barriers for sustainable management of forests and enhancement of carbon stocks; and
    • Describes the opportunities for both accessing and coordinating finance, which range from exploring viable, complementary sources of market-based REDD+ finance for Phase 3 to redirecting sources of funding for agriculture, for example, to finance REDD+ activities.

The report also reflects how many finance sources are able to fund multiple phases of REDD+, considering that REDD+ phases often overlap and operate simultaneously, as seen in the infographic below which shows the sources of finance and funding mechanisms for the three phases of REDD+. Such a comprehensive landscape of complementary and/or synergistic sources of funding can contribute to defining efficient and coherent financial strategies for REDD+ design and implementation.

The report, produced with support from IUCN as part of ongoing efforts to accelerate action on REDD+ through forest landscape restoration, is timely as the coordination of financial support for REDD+ and climate action in forests will continue to be a top agenda item at the upcoming Bonn intersessional, having featured prominently during COP 23. During the COP, country negotiators – as a continuation of REDD+ focal point meetings held since COP19 – resumed discussions on the coordination of support for the implementation of activities in relation to mitigation actions in the forest sector by developing countries, including institutional and financial arrangements. Negotiators debated the potential need for additional governance arrangements for improving the coordination of support for REDD+ funding and implementation. Additionally, side event and panel participants, country representatives, and others involved with REDD+ and climate action in forests expressed concerns over the availability, sustainability, and coordination of funding for results. Yet, negotiators could not agree on a decision and the co-chairs decided to continue negotiations during the next meetings to be held in May 2018.

The report aims to contribute not only to upcoming UNFCCC conversations pertaining to improving access to and coordination of finance for REDD+ and mitigation actions in the forest sector but, by clarifying the challenges with and opportunities for adequately accessing and coordinating funding for REDD+ and climate action in forests, will also contribute to ensuring that funding is made available and disbursed in a timely, efficient, and effective manner.

View the report at edf.org/mappingforestfinance.

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What to expect for forests and REDD+ at COP22 in Marrakesh?

Forest

Photo credit: Flickr @CIFOR

With the Paris Agreement entering into force on November 4th, climate negotiators at this years’ climate talks (COP22) in Marrakesh will have to roll up their sleeves and get to work on the rules and guidance that will translate Paris climate commitments into action.

As the only sector with its own article in the Paris Agreement, the land sector will be discussed this year in the context of implementation and progress – especially REDD+. There are no agenda items directly addressing forests at COP22, so REDD+ negotiators will need to focus on how REDD+ fits into other items on mitigation, accounting, transparency, and markets. Forests will also be highlighted during a series of COP events in the Global Climate Action Agenda (GCAA).

Forests in the Global Climate Action Agenda

On November 8th—the US election day—the Global Climate Action Agenda (GCAA) will showcase important forest initiatives. Held alongside the negotiations, the GCAA is meant to highlight initiatives not only from nation states, but also from a broad set of stakeholders including civil society and the private sector. Partnerships among these stakeholders will be especially emphasized.

The GCAA will also highlight the New York Declaration on Forests annual assessment report, which was released globally on November 3rd. This year’s report focused on private sector’s implementation of their zero-deforestation supply chain commitments. The report also gives a good overview of overall progress against halving deforestation in natural forests by 2020, which should be at the center of the discussions at the GCAA forest showcasing event.

While I find it heartening that many companies based in North America, Europe, and Australia are making deforestation commitments, the world’s forests need countries and companies in emerging markets to start implementing and reporting on their commitments.

Negotiations: Transparency, Accounting, and Markets

At COP22, REDD+ negotiators will most likely be found at the sides of their colleagues that focus on transparency and accounting. REDD+ methodological guidance included in the Warsaw Framework for REDD+ and other previous decisions already ensures a high level of transparency in any REDD+ programming. Experience with effective transparency provisions under REDD+ provides an opportunity to inform the development of the “enhanced transparency framework” that will be critical to the success of the Paris Agreement.

Accounting in the land and forest sector is as important as that in other sectors – if not more important, given the sector’s potential to remove carbon dioxide from the atmosphere. It is critical to ensure that consistent principles apply throughout all sectors, including effective accounting that avoids double counting of emissions reductions.

To promote environmental integrity between countries’ policies to implement REDD+, a report published today by EDF and four other leading organizations collected recommendations from experts from REDD+ countries and technical assessment teams on forest reference levels. It provided key guidance for tropical countries to receive payments for results from REDD+.

The negotiations on markets will probably be some of the most interesting. Markets could provide a much needed source of funding to support results from REDD+, while REDD+ could provide useful lessons for the development of accounting guidance for Article 6 (related to transfers of mitigation outcomes), as detailed in our joint submission with four other leading observer organizations.

Countries may choose to use REDD+ emission reductions as Internationally Transferred Mitigation Outcomes (ITMO) under Article 6.2 of the Paris Agreement, consistent with the Warsaw Framework and other REDD+ decisions. The use of ITMOs toward national commitments must also be consistent with the accounting guidance yet to be developed under Article 6.2, including the clear requirement to avoid double counting of emissions reductions.

The country of Brazil offers an example of where the REDD+ and ITMO debate is playing out. Recently, the Brazilian Coalition on Climate, Forests and Agriculture, made up of over 130 leading environmental NGOs and companies has recently, after extensive internal discussion, approved a consensus position on REDD+. Their position – that can be found here – posits that the positions of Brazil’s international climate negotiators dealing with land use – in particular their opposition to market-based REDD+ and failure to recognize subnational REDD+ systems in national carbon accounting – do not reflect the overwhelming majority views on these issues in Brazilian society. It will be interesting to see these differences between Brazilian society and their climate negotiators debated at the COP.

It is not clear how forests or REDD+ will be featured in the new market mechanism to contribute to the mitigation of greenhouse gas emissions and support sustainable development (under Article 6.4 of the Paris Agreement). I don’t expect negotiators to start discussing a new REDD+ methodology for Article 6.4 in Marrakesh, and this is likely many years down the road.

As previous analysis has shown significant costs savings from using REDD+ in carbon markets, I expect countries interested in using markets to discuss the details of transacting REDD+ ITMOs next year, either within the UNFCCC negotiations or in clubs of carbon markets in parallel to the UNFCCC.

The Marrakesh COP will probably yield less tangible text related to REDD+ than past UNFCCC meetings, though REDD+ negotiators will probably have much to discuss with each other outside the negotiating rooms. What I will be looking for are signs that REDD+ implementation is accelerating and how the accounting and transparency discussion in the UNFCCC might impact REDD+ and the forest sector.

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California’s Climate Leadership Can Help Save Tropical Forests

Source: Environmental Defense Fund, Steve Schwartzman

Source: Environmental Defense Fund, Steve Schwartzman

Back in 2006, when California was passing the Global Warming Solutions Act (AB32), some in industry pushed back hard, claiming that California couldn’t stop climate change by itself and that all AB32 would do was compromise the competitiveness of the state’s economy. California has proved the naysayers wrong – its economy is booming, and emissions are falling. Far from going at it alone, the Golden State is increasingly leading a global trend.

Now, California has an opportunity to build on its international leadership. By setting the gold standard for carbon market credit for international sectoral offsets – the subject of the California Air Resources Board’s (CARB) upcoming workshops – it can send a powerful signal to communities and governments that are fighting to stop tropical deforestation: carbon markets will help support their struggle.

California’s climate change program has prompted a plethora of bottom up climate action programs around the world, some of which are already achieving large-scale emissions reductions. Last December in Paris, California hosted a meeting of the “Under 2 MOU”, a group of 127 sub-national jurisdictions started by California and Baden-Wurttenburg in Germany, accounting for over a quarter of the global economy that have committed to reducing emissions below 2Mt per capita or 80% – 95% by 2050. Since the national commitments made at the Paris UN climate conference represent about half of what the science tells us is needed to keep warming below the critical threshold of 2°C, the Under 2 MOU could contribute significantly to closing the gap.

California has an opportunity to build on its international leadership by setting the gold standard for carbon market credit for international sectoral offsets.

California was also a founder of the Governor’s Climate and Forest Task Force (GCF), with Amazonian states and Indonesian provinces, in 2008. The GCF now includes 29 states and provinces from four continents, covering over a quarter of the world’s remaining tropical forests and collaborates on low-carbon rural development and creating incentives for reducing emissions from tropical deforestation and forest degradation – and GCF members have become global leaders in reducing CO₂ emissions.

Between 2006 and 2013, the states of the Brazilian Amazon, supported by national policy, reduced Amazon deforestation about 75% below the 1996 – 2005 annual average, reducing emissions by about 4.2 billion tons of CO₂ — far more than any other country or region in the world — while simultaneously increasing agricultural output and improving social indicators. Regional leader, Acre, is developing a market-based system to reward landowners and forest communities financially for conserving forest, and dedicated 70% of the proceeds of the first international transaction for forest carbon credits to indigenous and forest communities.  Overall,  reduced deforestation resulted from both state and federal policy, law enforcement, and signals from major consumer goods companies that deforestation-based soy and beef would be denied market access. California and the GCF’s work on carbon market credit for reducing deforestation gave communities and producers the prospect of economic incentives – for the first time – for protecting rather than destroying forests.

Around the world, some 50 states and countries are moving ahead with either cap-and-trade emissions reductions regime or carbon taxes – most of which began well before the Paris Agreement and President Obama’s Clean Power Plan. Meanwhile, 188 nations have made reduction commitments  covering about 90% of global emissions through the UN Paris Agreement. Increasingly countries and states are recognizing – as California and the Amazon have demonstrated – that they can stop Greenhouse Gas pollution and grow their economies at the same time, and that learning how will make them more competitive and prosperous in a carbon-constrained global economy. California, Acre, and other GCF members’ innovative development of international sector-based credits will ultimately give all of these  carbon pricing  initiatives more options and make them stronger.

Moving ahead with allowing international sector-based offsets into California’s carbon market will take the process to the next level, signaling to tropical jurisdictions globally currently responsible for more Greenhouse Gas pollution than all the cars and trucks in the world that living forests can become worth as much as dead ones.

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Three cheers for REDD+ and forests in the Paris Climate Agreement

By Chris MeyerSenior Manager, Amazon Forest Policy and Dana Miller, Research Analyst

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The Paris Agreement sends a strong signal for the forest protection policy REDD+. Credit: Flickr/Dams999

The Paris Agreement was a historic moment for the world, including the world’s forests. Now it is time to implement the agreement. But first, let’s take a moment to celebrate three important wins for forests and the framework for Reducing Emissions from Deforestation and forest Degradation (REDD+).

1) Article 5 on REDD+ signals political support for the existing internationally agreed framework

The Paris Agreement included a specific provision (Article 5, below) on forests and REDD+. Experts from EDF, Conservation International, Forest Trends, National Wildlife Federation, The Nature Conservancy and Union of Concerned Scientists told press that this article “would send a strong political signal to support better protections for forests in developing countries and encourage developed nations to provide the financial incentives to do so.” This article also encourages “results-based payments”, which refers to a promising mechanism where donors pay for verified emissions reductions achieved through REDD+.

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