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.

Posted in Deforestation, Forestry, REDD+| Leave a comment

Case Studies: Scaling Indigenous and Community Enterprises in Brazil, Challenges and Opportunities ahead

An indigenous woman of the Xingu Seed Network at work | Photo courtesy: Tui Anandi and Danilo Urzedo (ISA)

Brazil is a great laboratory for studying indigenous and community enterprises that support forest conservation and community development. It has abundant and diverse indigenous and community projects and enterprises across the Amazon.

As part of an initiative to foster the growth of these enterprises, EDF catalogued as many examples as we could find and used the Canopy Bridge Atlas to map indigenous enterprises in the Amazon Basin. We selected three cases to investigate further, which are unique in different ways, but face similar challenges.

By studying the three cases, we found that:

  • Securing operating and sanitary licenses from the government has been the most significant challenge for the enterprises due to bureaucratic hurdles. They either are currently experiencing problems in obtaining these licenses or encountered significant problems in the past.
  • Government is also a key source of initial and steady demand, either directly or indirectly, of the products of these enterprises.
  • The enterprises have partnered with allies for technical assistance, start-up funding, and/or continuing funding, in order to scale and maximize impacts.

The Babassu Nut Collecting Cooperative

The Cooperativa Interestadual das Mulheres Quebradeiras de Coco Babaçu (CIMQCB) is a decentralized cooperative formed by women from forest communities who collect and process babassu nuts in Brazil. CIMQCB sells its main products, babassu nut soap, oil, and flour, to various types of local, regional, and national customers.

While obtaining sanitary licensing from the government has been an obstacle for CIMQCB to accessing some markets, the federal government’s school food acquisition program is also a consistent and large client for one of its sub-groups.

Partnerships with foreign development programs have been essential for its organizational development. The European Union and the German Development Bank were some of its first donors. Currently, the cooperative receives supports from the Program of Small Ecosocial Projects.

Read full case study 

The Jupaú Cassava Flour

The Jupaú indigenous people, also known as Uru-Eu-Wau-Wau, who were officially contacted for the first time forty years ago. Their traditional processing techniques create a unique flavor and have attracted significant demand for their product.

However, the Jupaú are not formally organized as a business and are faced with the challenge of meeting sanitary and business regulations as well.

To help them overcome the challenges, Kanine, a local non-profit, is working with the Jupaú to find a culturally appropriate manner to increase their production and secure appropriate licenses from the state, while maintaining their unique and traditional processing that makes their product special.

Read full case study

The Xingu Seed Network

The Xingu Seed Network (RSX) was officially established in 2007 by an association of individuals and organizations working on community development in the Xingu River region. The network sources seeds for 200 different native species that are used for reforestation in the Amazon and Cerrado regions. In RSX, indigenous women are the majority of the seed collectors and the activity is an important source of income for them.

Financial and technical support from donors has played a key role in RSX’s growth. It is on the pathway to financial sustainability from its seed sales ($95,000 in 2015).

Similar to the other cases, business regulations and obtaining the proper licenses have been challenging for RSX. The Brazilian Forest Code drove a significant amount of early demand for their seeds, recent changes to it depressed demand.

Read full case study

Overcoming bureaucratic licensing hurdles, finding right partners, connecting with government programs, and complying with government regulations are the key challenges and opportunities the enterprises highlighted here and many others face.

In the future, EDF and our partners will continue to work with these indigenous and community enterprises throughout the Amazon to help them to overcome the challenges, scale their businesses, and maximize their impacts. There is still much to be done to conserve what is left of the Amazon forest.

Posted in Brazil, Deforestation| Leave a comment

ICAO’s market-based measure could cover 80% of aviation emissions growth in mandatory phase

icao-logo The International Civil Aviation Organization (ICAO), the UN agency charged with setting standards for international flights, has set a goal of “carbon neutral growth from 2020” – i.e. capping net emissions at year-2020 levels. The ICAO Assembly today adopted a global market-based measure that lets airlines purchase high-quality emission reductions to offset the carbon growth above the cap.

Analysis of high-quality data on aviation emissions projections demonstrates the ICAO market-based measure is a critical step forward for climate action, and could prevent nearly 2.5 billion tonnes of CO2 emissions into the atmosphere over the first 15 years of the program. Here’s how.

The market-based measure provides that:

  • from 2021-2023, nations would opt in to a voluntary pilot phase;
  • from 2024-2026, nations would opt in voluntarily to another phase;
  • from 2027-2035, all nations would be required to participate, with some exceptions;
  • least developed countries, land-locked developing countries, and small island developing countries would all be exempt throughout (although these states could opt in at any time if they so choose).

What this means for ICAO’s commitment to “carbon neutral growth from 2020” depends on how many more countries decide voluntarily to opt in.

EDF has developed an interactive tool to allow users to estimate how many emissions would be covered of the billion-tonne gap between projected emissions and the 2020 cap, if various countries opt in to the MBM.

The tool provides unique calculations of the aviation sector’s emissions growth based on projections from ICAO, industry and analysts. The focus on emissions provides a direct estimate of the aviation sector’s contribution to climate change that complements analyses based on aviation’s traffic growth, measured in revenue tonne kilometers (RTKs).

Here’s the snapshot of the tool as of the adoption of the market-based measure on October 6. With Qatar and Burkina Faso becoming the 64th and 65th countries to signal their intent to participate in the MBM from the start, 65% of emissions growth above 2020 would be covered in Pilot + Phase 1, and nearly 80% (79%) of these emissions would be covered during Phase 2 of the program (2027-2035). Importantly, 77% of anticipated emissions growth above 2020 would be covered over the first fifteen years of the program.

aviation-tool-100516_2

The tool shows the importance of commitments to early participation by the Asia-Pacific aviation powerhouse states of Singapore, Japan, Korea, and Australia; the Middle Eastern aviation dynamos of United Arab Emirates and Qatar; Latin American states like Mexico, Costa Rica, Guatemala; and leading African states such as Kenya.

It also shows that as exempted states increase in their importance as aviation powers, participation by at least some of them will be significant for boosting overall coverage toward the goal of carbon-neutral growth from 2020. Consequently, it will be important for today’s leading aviation countries to help build MBM capacity in the anticipated aviation leaders of tomorrow.

A number of countries that are exempt under the resolution's formulas, including leading voices from the front lines of climate impacts – Burkina Faso, Marshall Islands, Papua New Guinea, Costa Rica, Guatemala, and Kenya – have announced their intent to participate, and more are expected to join.

After nearly two decades of effort, ICAO is providing global leadership, with both developed and developing countries taking the lead. Hand in hand with this week’s announcement about ratification of the Paris Agreement, that’s good news indeed.

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Lessons from Brazil on how to turn companies' zero-deforestation commitments into action

By Michelle Mendlewicz, EDF Global Climate 2016 Summer Fellow and Dana Miller, Policy Analyst

Cattle ranching in Brazil | Photo: Scott Bauer via Wikimedia Commons

Hundreds of major consumer goods companies that have driven the demand for soy, palm oil, timber & pulp, and beef – the big four commodities that contribute significantly to deforestation – have committed to eliminating deforestation from their supply chains. However, a vast majority haven’t yet acted on their zero-deforestation commitments or reported their progress.

According to a report by Forest Trends’ Supply Change, the majority of companies do not disclose their progress on zero deforestation commitments, with only 23% to 27% of commitments backed-up by data.

An analysis by The Sustainability Consortium found similar results, with 25% to 40% of companies reporting any information on deforestation for beef, soy, and palm oil.

Cutting and burning trees adds as much pollution to the atmosphere as all the cars and trucks in the world combined, which is why it’s important that more than 400 companies, including Walmart and Unilever, that have committed to achieving zero net deforestation by 2020 actually follow through on their pledges.

Two examples from Brazil, home to the largest remaining area of rainforest in the world, show that collaboration with governments and civil society can help companies turn their zero-deforestation commitments into action.

Mato Grosso’s ambitious strategy

Brazil successfully reduced Amazon deforestation by about 75% from 2005 to 2013 while maintaining robust growth in beef and soy production. Its success can be largely attributed to joint efforts between companies, government agencies, and environmental communities.

Brazil’s experience shows it takes more than commitments from companies to accomplish zero deforestation — businesses must focus on implementation and monitoring.

An example of this collaboration is Mato Grosso’s “Produce, Conserve, Include” (PCI) strategy, launched at the Paris climate conference (COP21) in December 2015. The State of Mato Grosso contributed to 50% of Brazil’s deforestation reduction between 2005 and 2013, while increasing beef and soy production. It is the largest agricultural commodity producer in the Amazon, producing 27% of the soy, 25% of the corn, and 19% of the beef in Brazil. The PCI plan aims to simultaneously reduce deforestation in the Amazon by 90% by 2030, increase agricultural production, and promote socioeconomic inclusion of smallholders and traditional populations.

Major soy and beef merchants Amaggi and JBS, non-governmental organizations such as EDF and partners in Brazil, and the Government of Mato Grosso worked together to develop the plan and continue to collaborate on its implementation.

As PCI’s coordinator stated, the ambitious strategy is only possible because it was “embraced” by society, and due to local partners and international supporters of the initiative.

Brazil’s businesses, governments and civil society successfully reduce deforestation from beef production

Another example of collaboration between businesses, governments and civil society has already shown success in reducing deforestation from commodity supply chains in Brazil. An agreement between Greenpeace and food processing companies in Brazil, Marfrig, JBS, and Minerva, requires farmers to provide information about their suppliers. This information is then cross-checked with government agencies, including the Brazilian Institute of Environment and Natural Resources (Ibama) and the Public Prosecutor’s Office (Ministério Público), to eliminate environmental or socially harmful practices. According to Marfrig, of the 8,303 properties monitored in the Amazon region, 6,471 are approved to supply cattle, while the remaining 1,679 properties are banned.

Meatpacking companies also signed a Term of Adjustment of Conduct (TAC) with the Public Prosecutor’s Office (MPF) to stop purchasing cattle originating from properties that cause illegal deforestation, are located on indigenous territories, are not registered with the government’s system, or are featured in the Ministry of Labor’s list of labor analogous to slavery.

A study published in 2015 found that both agreements – the one with Greenpeace and the TAC with government agencies – have incentivized behavior change by companies. Ranchers supplying to these companies complied with laws to register their properties with the government’s system two years before nearby ranchers. Only 2% of purchases by JBS were with registered properties before the agreement was signed, while 96% of transactions were with registered companies by 2013. Purchases by slaughterhouses from recently deforested properties fell from 36% in 2009 to 4% in 2013. According to Supply Change, JBS and Marfrig have self-reported 100% progress on commitments to zero-deforestation cattle, among other commitments.

Implementing, monitoring and collaborating on zero-deforestation commitments

Challenges remain, however, in eliminating deforestation from beef supply chains. Marfrig, JBS, and Minerva control around half of beef slaughter in the Amazon, while companies that control the other half have no monitoring systems or commitments in place. The limited scope of the agreements can cause issues including “laundering” – when ranchers raise cattle on noncompliant properties and move the animals to compliant ranchers before selling them to slaughterhouses – and “leakage,” when cattle produced on recently deforested land are sold to slaughterhouses that do not have monitoring systems in place.

Greater collaboration between a larger number of companies, producers and governments within a region can reduce the risk that deforestation will leak to other suppliers.

Brazil’s experience shows that it takes more than commitments from companies to accomplish zero deforestation. In order to achieve real progress, businesses must focus on implementation and monitoring. By collaborating and engaging with government agencies and environmental communities, companies can overcome the challenge of traceability and advance the fight against climate change.

For more information on efforts to reduce deforestation from cattle supply chains, visit Zerodeforestationcattle.org.

Posted in Brazil, Deforestation| Leave a comment

Mexico highlights climate leadership at home during Climate Summit of the Americas

Jalisco summit 700*325

Aristóteles Sandoval, Governor of the State of Jalisco, signs the 2016 Climate Action Statement during the Climate Summit of Americas. (Photo credit: Twitter @AristotelesSD)

Governors, ministers, business and community leaders from across the Americas, and the world, convened last week in Jalisco, Mexico for the 2nd Climate Summit of the Americas.

One year after the first star-studded summit held in Ontario, Canada, state and provincial governments reunited to showcase their achievements; highlight further challenges; and push further action and cooperation by states and provinces, as well as national governments.

So-called “subnational” governments have been far more visible on the international stage of global climate action in recent years, particularly in the run-up to the United Nations climate negotiations in Paris.

In 2015, California’s “Under 2 MOU” brought together a total of 135 states, provinces, and regions – representing one quarter of the world economy – to commit to reducing greenhouse gas emissions by at least 80 percent below 1990 levels by 2050.

While the summit’s purpose is to highlight subnationals, Mexican federal officials, from the newly-named UN climate chief, Patricia Espinosa, to the federal Secretary of Environment and high-ranking energy officials were there to demonstrate, once again, that Mexico takes its climate reputation very seriously.

Mexico has long been viewed as a climate leader on the international stage.

In 2010, as the host of the global climate negotiations in Cancun, Mexico’s diplomats were lauded for pushing climate talks to break the deadlock from the 2009 Copenhagen meeting. In 2012, Mexico passed landmark federal climate change legislation. And in the run-up to the Paris meeting, when building momentum through country pledges was critical to the negotiations’ success, Mexico was the first among developing economies (and only the fourth country in the world) to formally pledge to cut its emissions.

Mexico’s global climate commitments are intertwined with its national energy overhaul.

Currently the energy sector produces roughly 65% of its total greenhouse gas emissions. Building out these sectors anew after decades of federal monopoly is no small task, but one on which the country has forged ahead, also setting ambitious clean energy goals, such as a goal to source 50% of electricity from clean energy by 2025, reducing methane emissions from oil and gas by 40-45% by 2025, and aiming to set up a clean energy certificates market that will begin operating in 2018.

Bringing these pieces together with its UN targets requires a comprehensive plan that will ultimately ensure the emissions reductions achieved and drive low carbon economic growth.

Such a plan should enable Mexico to align its climate, energy, and economic development objectives – and though a suite of policies are necessary, the country has waded into discussions of a key policy tool that some of the subnational stars of the summit know quite a lot about – capping emissions and putting a price on carbon.

Mexico now has cooperation agreements with California and Quebec, which together operate the second largest emissions trading system in the world.

At the Summit, Mexican federal officials signed a joint agreement with Quebec and Ontario to work toward carbon pricing. The California agreement, signed in 2014, highlights carbon pricing and the implementation of market mechanisms for reducing emissions. The agreement with Quebec and Ontario, signed at the summit on Wednesday, envisions an eventual participation by Mexico in the Western Climate Initiative.

Mexico is aligning its opportunities.

Trade-relationships, and other ties in the Americas are distinct advantages for Mexico in a global carbon trading world. This enviable strategic advantage needs the sustained political will and resources to build a transparent and robust system, and the vision of its policymakers and entrepreneurs to make it work for Mexico.

 

Read more:

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California’s ambitious new climate commitments follow 10 years of success

Photo credit: Joseph Thornton | Flickr.com

California made history a decade ago this month by being first in the nation to pass legislation (AB 32) putting an absolute limit on carbon pollution through 2020.

The California Legislature made history again last week by extending and strengthening those limits to 2030 (SB 32 and AB 197). SB 32 requires California to reduce pollution 40% below 1990 levels by 2030 – as ambitious as Europe’s climate policies – and provides the flexibility to use a variety of tools to accomplish this goal. The governor has announced he will sign both bills.

Legislators also passed a spending plan yesterday that will direct approximately $900 million in cap-and-trade proceeds to reduce pollution and benefit California communities, especially the most disadvantaged.  Another bill passed yesterday, AB 1550, increases the commitments of those disadvantaged communities and makes low-income communities beneficiaries as well.

California’s decision to set these new targets and establish this new spending plan was not just based on hope and necessity, but on a 10-year foundation of success and a solid understanding that this next set of targets are ambitious but achievable.

Here’s why California’s climate program has been a success, and why the new long-term emissions reduction target will help the state continue to thrive.

California’s carbon pollution is declining.

AB 32 requires California reduce its greenhouse gas emissions to 1990 levels by 2020, a reduction estimated at about 15% below where emissions would have been without regulation.  To meet these reductions, California has adopted a suite of climate policies anchored by a cap-and-trade program, which puts an absolute limit on carbon pollution, while providing cost-effective options for businesses to meet their reduction obligations.

California’s carbon pollution has steadily declined in the last 10 years. In the first two years that the cap-and-trade system was in place (2013 and 2014), California’s carbon emissions declined by an amount equivalent to taking over 1 million passenger vehicles off the road for a year.

California is ahead of schedule in meeting its 2020 goal. Emissions have been below required levels in every year we have data for. Regulators expect that in 2020 California will exceed its own requirements by an amount that is equivalent to taking 3.3 coal burning power plants off-line for one year.

California’s economy is growing.

Historically economic growth has been accompanied by a corresponding increase in emissions, but California is charting a different course. The state’s Gross State Product has increased steadily since the recession as emissions have continued to fall, as shown in this figure:

In the first two and a half years of California’s groundbreaking carbon market, the state added over 900,000 jobs, a growth rate that eclipsed the national rate.

Carbon markets are going global.

The impressive outcomes from the first decade of California’s AB 32 implementation have attracted numerous partners. States, provinces, cities and countries are taking note and action.

At the Paris negotiations at the end of 2015, California Governor Jerry Brown showcased a “Memorandum of Understanding,” bringing together states and regions committing to reducing greenhouse gas emissions to at least 80% below 1990 levels by 2050, or to less than 2 metric tons per capita by 2050. Over 100 states, provinces, and cities, representing one quarter of the world economy, signed on the agreement.

In addition, California is partnering directly with several Canadian provinces to implement joint cap-and-trade programs. It has also established an agreement to share information and work with China and Mexico on their carbon pricing efforts.

2030 target is ambitious but achievable.

Estimates suggest that after on-the-books polices are implemented, California will still have to find a way to reduce pollution another 17-29 percent to meet the 2030 target. The Air Resources Board has proposed relying on a ratcheting up of existing polices and a reliance on the existing cap-and-trade program to ensure the 2030 target is met.  Research from the Lawrence Berkeley National Laboratories shows that meeting the 2030 target is possible with a ratcheting up of existing polices

The world will be watching whether California can repeat its gold medal performance under these new targets, and all indicators seem to point in the state’s favor.

Posted in California, Emissions trading & markets| Leave a comment
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