Transcript Slide 1
The Role of Governance and
Institutions in REDD
Operationalising Carbon
Finance in Ghana.
Roundtable Meeting 27-28
November 2008
Robert Bamfo, Forestry
Commission and
Michael Richards,
FRR/Forest Trends
Carbon finance depends on good governance
Institutional & governance
constraints increase risks &
transaction costs – so the cost
effectiveness depends on it
REDD depends on clarification and
protection of carbon property rights
(including community rights)
Credit buyers conduct country risk
assessments, e.g., compliance
capacity? will local property rights be
protected? etc.
Targeted REDD incentives must
reach forest managers or
communities cost effectively
Institutional coordination is vital for
the success of policies to reduce
deforestation
REDD should stimulate better governance
• REDD is a market or results
based incentive for better
governance & policies
• R-Plan calls for multiple
stakeholder participation in
developing the REDD strategy
• Accountability, transparency,
compliance, conflict resolution
procedures, etc. are necessary
• International pressures for good
governance in REDD – could
result in a premium?
• Links to VPA …
REDD – VPA synergies
• They have similar aims reduce deforestation and
social/ecological benefits
• Legal definitions are key
• Role of civil society
• Clear standards vital
• Monitoring and verification
• Transparency & accountability
• Both have to tackle the
informal sector issues, e.g.
how to formalise it?
VPA measures can pave the
way for REDD – which could
help pay for VPA
Some national institutional issues
• How to channel benefits effectively
to forest managers – action research
via REDD ‘demonstration activities’
(NB existing beneficiary mechanism
for plantation development)
• How to improve coordination
between sectors especially since the
main causes of deforestation are
outside the forest sector
• National land use policy?
• How much decentralisation is good?
(should favour transparency)
• Is a new specialised institution for
carbon finance needed? (Costa Rica
model - FONAFIFO)
Some institutional roles (from R-Pin)
• MLFM and FC: REDD Strategy coordination (FCPF RPlan Focal Point); data generation/storage; carbon
measurement & monitoring (RMSC + CSERGIS); law
enforcement coordination
• EPA: Climate change policy direction, standard setting,
monitoring; NB EPA is the Designated National Authority
(DNA) for Clean Development Mechanism (CDM)
• District Assembly: byelaws, negotiations, stakeholder
platform, enforcement
• Traditional Authorities: set byelaws and standards,
resource creation, land allocation, mediators, community
mobilization
• Civil Society (Forest Watch): Monitoring, awareness
creation, mediation, etc.
Local Institutions
• Strong local institutions vital to
reduce transaction costs
• Collaborative Resource
Management Programme, inc.
CREMAs
• Local government, DAs will play
vital role – capacity building
• Communities should maintain
flexibility in their land use options
in REDD contracts
• Admin. & technical capacity
building is vital, inc. M&E
• Action research on benefitsharing mechanisms
Some conclusions
• REDD should be as a major incentive for improved
governance
• The cost-effectiveness of REDD depends on good
governance, e.g., keeping transaction costs to a
minimum, institutional coordination to reduce
deforestation
• Clarification of carbon rights and tenure is fundamental
• There are clear opportunities for REDD to build on the
VPA governance and policy platform
• Broad stakeholder consultation and participation in the
formulation & implementation of national REDD strategy
• Action research (via REDD demonstration activities) is
needed on the appropriate institutional arrangements for
channeling targeted REDD incentives, and for
community level benefit sharing mechanisms
• Major capacity building of national and local institutions
will be an essential part of Readiness Plan