Themes
Global Policies
LAST UPDATED on May 16, 2012
Photo by Frank Schmidt
Latest Updates
15 May 2012: Brazil reiterated the importance of the CDM and proposed that definition of forests in exhaustion included in Annex 3 of the CDM Executive Board 50’s proposed agenda should be used as a basis of discussion. Read more
14 May 2012: Opening today, negotiations under the UNFCCC and the Kyoto Protocol are scheduled to continue in Bonn, Germany, until 25 May 2012. Read more
11 May 2012: The Rio Dialogue Support Team invites readers to submit their recommendations to the online Rio+20 Sustainable Development Dialogue on Forests. Read more
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Global Updates (February to April 2012) Download PDF
International schemes and proposals
National and sub-national schemes: Asia-relevant
Regional, national and sub-national schemes: not linked to Asia
Previously we focused on policy developments in the international climate negotiations and at national and sub-national levels. This update provides a summary on these REDD+/forest carbon mechanisms and REDD+ Readiness activities over the last two months. Please see FCA Briefs No. 2 and No. 4 for earlier policy reviews up to January 2012.
International schemes and proposals
Afforestation/ reforestation under the Clean Development Mechanism
The 35th meeting of the Afforestation and Reforestation Working Group (A/R WG) under the Clean Development Mechanism of the Kyoto Protocol was held from 21-23 March 2012 in Bonn, Germany. Please visit the Standards and Verification theme page for details on amended and revised methodologies and tools.
The 66th CDM Executive Board meeting (Bonn, February 27–March 2, 2012) approved the two-year CDM business plan, CDM 2012 management plan, work plans of the four panels and working groups including the A/R WG. The A/R WG plans to simplify and revise certain methodologies and tools, and possibly introduce changes to the existing Project Design Document (PDD). Other important items approved were various guidelines related to the operationalization of the Project Standard (PS), Validation and Verification Standard (VVS) and the Project Cycle Procedure (PCP) documents, revised glossary of CDM terms and the QA/QC guidelines for standardized baselines.
REDD+ developments under the UNFCCC
In March 2012, the Subsidiary Body for Scientific and Technological Advice (SBSTA) published its report on its thirty-fifth session held in Durban from 28 November to 3 December 2011.
Photo by WISE
In this meeting, SBSTA agreed to continue its work on guidance for the remaining issues relating to national forest monitoring systems and modalities for measuring, reporting and verifying anthropogenic forest-related emissions and removals, forest carbon stocks and forest area changes resulting from the implementation of REDD+ activities. The SBSTA aims to complete this work through its 36th (Bonn, 14–25 May 2012) and 37th sessions and report progress and any recommendations to the Conference of the Parties (COP) at its 18th session in December 2012.
In March 2012, the UNFCCC Secretariat released the submissions by parties on issues identified in decision 1/CP.16, paragraph 72 and appendix II, in particular on how to address drivers of deforestation and forest degradation, and on robust and transparent national forest monitoring systems. The submissions are to be considered by the 36th session of the SBSTA.
The Bonn Climate Change conference will be held from 14-25 May 2012. This will include the 36th session of the SBSTA, the 15th session of the AWG-LCA, the 17th session of the AWG-KP and the 1st session of the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP).
REDD+ Partnership discusses financing barriers and options
The first meeting and workshop of the REDD+ Partnership for 2012 was held in February. Some of the key elements discussed were progress made on REDD+, update on fast-start finance, barriers to accessing and delivering finances, challenges in implementing REDD+ at the ground level and market based versus non-market based approaches to REDD+. The date for the second meeting and workshop for 2012 was set for 11-13 May in Bonn, prior to the UN Climate Change Conference scheduled for 14-25 May.
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National and sub-national schemes: Asia-relevant
UN-REDD reviews and expands its National Programmes
During its eighth Policy Board meeting, the UN-REDD Programme approved funding of USD 4 million each for Sri Lanka’s and the Republic of Congo’s National REDD+ Programmes, bringing the total amount of approved funding for UN-REDD National Programmes to USD 67.3 million. These funds will support the capacity of national governments to prepare and implement REDD+ strategies. The Board also endorsed the Programme’s Social and Environmental Principles and Criteria (details in Standards Brief No.6) as a guiding framework for REDD+ countries and launched the “2011 Year in Review” report.
In 2011, Cambodia established a Programme Management Unit for better coordination of REDD+ implementation among different institutions. It now expects to prepare a national REDD+ strategy and implementation framework. Indonesia developed a set of guidelines for Free, Prior and Informed Consent (FPIC) implementation and selected five districts for pilot UN-REDD programmes. The country is expected to strengthen multi-stakeholder participation and decentralization of REDD+ implementation. Achievements reported for Papua New Guinea in 2011 include stakeholder engagement on REDD+, adopting a holistic approach among different government institutions to implement REDD+ and completing the second draft guidelines for FPIC. PNG aims to prepare a national Measurement, Reporting and Verification system and to develop Reference Emission Levels and Reference Levels.
Philippines held an inception workshop in 2011 and obtained inputs on how to move forward with REDD+ activities in the country. Vietnam established a cross-ministerial steering committee for REDD+ and a National REDD office which further strengthened the National Programme in the country. New working groups on REDD+ benefit distribution systems (BDS), private sector and governance were established and local and provincial stakeholder consultation on BDS were started.
FCPF reviews and expands its National REDD+ Readiness Programmes
The 11th Participants Committee meeting of the Forest Carbon Partnership Facility (FCPF) was held in Asuncion, Paraguay between March 28-30, 2012. The meeting discussed national REDD+ readiness programmes in several countries. Funding of USD 7.4 million was approved for readiness activities in Guatemala and Mozambique. Bhutan, Pakistan, Philippines and Sri Lanka from Asia along with other Latin American and African countries expressed their interest to join the FCPF. The delivery of REDD+ readiness funds through multiple delivery partners such as the Inter-American Development Bank (IDB) and the UN Development Programme (UNDP) was also discussed.
Photo by Laura Billings
The third meeting of the Carbon Fund was also held in Asuncion, Paraguay during March 24-26, 2012. Costa Rica presented its planned emission reduction (ER) programme which then led to a discussion on uncertainty of emissions reductions in countries, and to what level the carbon fund will accept the uncertainty. The meeting also explored how countries like Costa Rica can benefit by signing an ERPA with the carbon fund. Ghana and Nepal presented their ideas for their national ER programmes, and there were discussions on the types of information that countries should include in their Emission Reduction Program Idea Notes (ER-PINs) submitted to the Fund. The participants agreed to establish a Carbon Fund working group that will consist of Carbon Fund participants and REDD+ country representatives. A budget for the working group will be proposed at the next meeting in June 2012.
FCPF and UN-REDD hold joint meeting for sharing and coordination
The FCPF and the UN-REDD Programme held a joint meeting on March 27th in Asuncion, Paraguay. The objective of the meeting was to share knowledge and experiences in REDD+ readiness, and ensure that support from the FCPF and UN-REDD Programmes continues to be delivered to countries in a streamlined and coordinated manner. Other topics on the agenda were community-based measurement, reporting and verification (MRV), land tenure, payment for ecosystem services for REDD+ and draft advice on REDD+ biodiversity safeguards.
China pilots emission caps and gets ready for carbon offsetting
Although China has not set a national cap on greenhouse gas emissions, seven provinces and two cities were ready by the beginning of 2012 to set caps on their emissions. In January, the National Development and Reform Commission requested the pilot cities of Beijing, Tianjin, Shanghai, Chongqing and Shenzhen, and the pilot provinces of Hubei and Guangdong to set overall emissions control targets.
In January Bloomberg reported that China may decide to withhold emission-reduction offsets to comply with its own climate targets after 2015, limiting supply to the European Union.
In February the Shanghai Environment & Energy Exchange reported that China may introduce its own registration and verification process for UN carbon offsets which will allow certified emission reductions (CERs) to be used as domestic offsets. The International Emissions Trading Association (IETA) reported that Australia and China itself could surpass Europe and be the main buyers of post-2012 certified carbon credits from projects in China.
In March the European Investment Bank (EIB) agreed to provide China a loan of USD 330 million to support national forestry projects for climate change mitigation. This loan will finance eight pre-selected investment schemes in the country.
Forest-related mitigation is to play a key role in China’s carbon offset mechanisms and China is exploring options for including forest carbon credits in its national Emission trading scheme (ETS). The scheme was to be launched in 2015 following the pilots in five cities and two provinces, but reports in April indicate that the national ETS will be pushed back until at least 2016.
South Korea’s emissions spiral while it defers voting on carbon trading scheme
South Korea parliament once again delayed voting on their planned national carbon trading scheme (including forestry offsets) in February 2012. In March the country attempted to reschedule the vote on the bill to April or May. The country’s greenhouse-gas emissions increased to about 640 million tons in 2011 from 350 million metric tons in 1990, making it the fastest-growing pollution source among the 34 nations in the Organization for Economic Cooperation and Development (OECD).
Japan publishes feasibility reports on New Mechanisms Projects/Activities
The Japanese Government proposed to establish new mechanisms such as the Bilateral Offset Credit Mechanism (BOCM) to meet their emission reduction targets and support bilateral cooperation with and sustainable development in developing countries. In 2011, the Ministry of the Environment, Japan and the Global Environment Centre Foundation called for proposals on New Mechanism Feasibility Studies from Japanese private entities and NGOs/NPOs. They selected and adopted 29 Feasibility Studies, 7 of them REDD-related including one in Cambodia, one in Vietnam and three in Indonesia. New Mechanism feasibility studies aim to accumulate knowledge and experiences based on concrete projects and activities.
Photo by Somoline Sorn
Final results of the adopted feasibility studies have now been posted. The study in Prey Long, Cambodia suggests a sub-national level REDD+ project is feasible in that area with additional co-benefits by seeking CCBS or REDD+ SES certification. A study in Son La Province, Vietnam suggests that it is feasible to implement a REDD+ project to re-vegetate denuded lands and generate power from wood biomass. Studies in Gorontalo and Jambi Provinces in Indonesia suggest that the two REDD+ project proposals could incorporate additional biomass utilization activities to ensure socio-economic and environmental sustainability. A study of a 28,000 hectare pilot REDD+ project in Central Kalimantan Province indicates that it could reduce emissions of 9344 GgCO2 in 20 years.
The Ministry of Economy, Trade and Industry of Japan invited for the first time and adopted 15 Global Warming Mitigation Technology Promotion projects for 2012 to serve as pilots for raising recommendations for the proposed Bilateral Offset Credit Mechanism. Selected projects promote dissemination of Japan’s low-carbon technology or products such as electricity savings to facilitate larger-scale climate change mitigation. None of the projects selected are related to forest carbon.
European partners for the Governors’ Climate and Forests Task Force
The Governors’ Climate and Forests (GCF) task force held a meeting in February with several European countries including France, Germany, Spain and Belgium who were interested in supporting the creation of partnerships to achieve forest protection, forest management, and rural development in the context of REDD+ in developing countries. GCF highlighted the potential areas of collaboration for technical assistance and capacity building. They also highlighted the importance of private sector investment for REDD+ and sustainable forest management. European regions were encouraged to identify research organizations who could partner with GCF members while GCF members were requested to identify potential investment opportunities that would attract the private sector.
California and Quebec to link up
In December 2011, the Province of Quebec in Canada adopted a cap-and-trade regulation which aims to reduce by 2020 its greenhouse gas emissions by 20% below 1990 levels. In early 2012, the state of California revealed its plans to link its cap-and-trade scheme, which includes REDD+ offsets, with that of Quebec. California and Quebec are part of the Western Climate Initiative (WCI).
California announced that the first carbon permit auction will be postponed to November 2012 which led to market skepticism on whether the scheme will begin in 2013. However in April 2012, the California Air Resources Board chairwoman Mary Nichols reported that the scheme will start as planned irrespective of recent events.
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Regional, national and sub-national schemes: not linked to Asia
EU targets farm and forest land for future ER targets
Governments in the European Union (EU) will have to record changes to forestry and farmland that alter the carbon balance under a new draft law published March. The proposals went beyond the agreements reached at U.N. climate change talks in Durban last year, by requiring EU nations to monitor cropland and grazing land in addition to forests. If this monitoring and reporting is effective, the European Commission will then propose to include the land use, land use change and forestry (LULUCF) sector in the EU’s binding emissions reduction target. Incidentally, carbon prices have been trading at record lows at the EU Emissions Trading Scheme this year.
Australia all set for carbon tax scheme
Australia’s $ 23-per-tonne carbon tax scheme is set to begin in July 2012 and will result in the closing down of the New South Wales Greenhouse Gas Reduction Scheme (NSW GGAS), one of the world’s first mandatory emissions trading schemes that began in 2003. The NSW GGAS will be closed on July 1 in order to avoid duplication but this will leave participants stranded with about $16 million of worthless abatement certificates. The carbon tax scheme is expected to be replaced by an emissions trading scheme in July 2015.
Photo by Anura Hettiarachchi
Up to 5% of offsets from the Carbon Farming Initiative (CFI) can be used to fulfill compliance obligations under the carbon tax scheme and by an unlimited amount when the emission trading scheme is implemented.
The Department of Climate Change and Energy Efficiency released a draft regulation for the Carbon Farming Initiative for public consultation. These amendments provide more information on matters such as auditing, reporting and the issuance of credits.
UK’s Woodland Carbon Code reports milestone emissions removals
As of March 2012, projects registered under the UK’s Woodland Carbon Code were predicted to have removed more than 1 million tonnes of CO2 from the atmosphere. Fifty seven projects covering 2733 hectares across the UK have been registered and ten of these have been validated. Proposed projects in the UK are first registered and then validated and certified against the standards set down by the Code.
Brazil to present national REDD+ strategy in late 2012
A draft outlining Brazil’s national anti-deforestation strategy is expected to be presented to cabinet members and President Dilma Rousseff for review by the end of this year. This draft could attract private sector investment for avoiding deforestation.
Guyana to continue receiving funds from Norway
Year 2011 ended with Guyana struggling to get projects off the ground and receive financial support as promised. However the Ministry of Natural Resources and the Environment announced in April that the country is on course to meeting all of the conditions and will be receiving USD 40 million as the third tranche of funds under the Guyana-Norway forest agreement.
Lima Declaration to protect the Amazon
Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname and Venezuela, members of the Amazon Cooperation Treaty Organization (ACTO) signed an agreement in Lima on March 21 to protect the Amazon forest, its biodiversity and the land rights of indigenous peoples living there. The Lima Declaration included an appendix on illegal mining in the Amazon basin. The ministers agreed to join efforts to control illegal mining in the Amazon, form a specialized working group, develop a strategic agenda, and present the approaches and experiences of member countries in controlling illegal mining at the Rio+20 UN Conference on sustainable development.