Field Implementation Aspects of REDD+ Projects: Lessons from the Sustainable Forestry and Rural Development Project (SUFORD) Lao PDR

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1 Field Implementation Aspects of REDD+ Projects: Lessons from the Sustainable Forestry and Rural Development Project (SUFORD) Lao PDR Anne Arvola/Majella Clarke

2 Overview Sustainable Forestry Management and Village Development in SUFORD Approaching REDD+ Implementation REDD+ challenges REDD+ MRV

3 What Does the SUFORD Project do?

4 Management Plans Participatory Forest Inventory Timber harvesting in Production Forests Areas Production Forest Tree Marking Timber sell Felling Monitoring 4

5 80,000 hectares of PFAs have been certified by Smartwood

6 SUFORD s Village Development Fund Mechanism Timber Revenue Benefit Sharing USD per village Village Development Grants and the Revolving Village Development Fund Village Development Plans and activities Withdrawal from Village Bank account Income generating activities Infrastructure development Awareness Raising and Capacity Building Low carbon village development

7 Approaching REDD+ in SUFORD: Phase 1 and Phase 2

8 Approaching REDD+ in SUFORD: Phase 1 REDD+ Strategy Development Institutional Strengthening Capacity Building

9 Understand Drivers of Deforestation and Forest Degradation Institutional issues Regulative framework Socio-cultural factors Markets Economic factors Global climate change Governance Underlying Resource/ site conditions Limited awareness Access Availablity of technology Household economy Local priorities Local Socioeconomics Tenure insecurity Weak control & law enforcement Profitability Insufficient land access Resource management & monitoring Absent incentives Individual poverty Values & beliefs People s fears Forest degradation Deforestation Immediate Part of the problem or solution? Plantations Fire Wood extraction Pioneering shifting Agricultural expansion Indust. tree plantation Mining? Hydropower Infrastructure Urban expansion Commercial logging Timber for HH cons. Illegal logging Farm based/ small-scale Investment/ small/ medium scale Concession / largescale Small scale Small/ large scale Roads, electricity New settlements/ enlarging

10 Understand the Structure of Emissions from Land

11 Drivers of Deforestation in SUFORD old PFAs

12 What are the cost effective mitigation options for Lao PDR?

13 Marginal Abatement Cost Curves for Forestry in Lao PDR: R-PP

14 Approaching REDD+ in SUFORD: Phase 2 Demonstration Activities

15 What makes REDD+ and sustainable forest management challenging? High food prices High international agricultural commodity prices (rubber and coffee) Opportunity cost of alternative land uses Land tenure issues Large areas of highly degraded forest Transaction costs Fragmented Markets

16 Under what conditions can REDD+ Compete? High forest carbon stock areas (under threat) tc/ha Compliance Market Price EUR 15 t CO2e Implementation and transaction costs not considered

17 REDD+ MRV Framework National REDD+ MRV Provincial REDD+ MRV: annual reporting to national REDD+ MRV SUFORD Project PFA REDD+ MRV: Monitoring and Reporting of emissions and changes in carbon stocks to Provincial REDD+ MRV and the VCS and safeguards to CCB Bilateral agreement for the purchase of certificates retired on purchase Additional emission reductions not sold on the voluntary carbon market SUFORD Project Verified Emission Reductions under VCS MRV Voluntary Carbon Market VCS Registry

18 SUFORD REDD+ MRV core components Support to Monitoring of reference levels against a 10 yr adjustable baseline deforestation and forest degradation under the VCS (IPCC Good Practice Guidance) Monitoring compliance with SE safeguards (WB & CCB) Support reporting on REDD+ compliance (UNFCCC requirements)

19 MRV current achievements Technical Report on the Valuation of Enhancement of Carbon Stocks through Restoration and Regeneration in SUFORD old PFAs Accuracy - SUFORD areas Tier 3, other areas Tier 1-2

20 PFA Land Cover and Carbon Change Analysis Landsat satellite image series (1989/92, 2000, 2006/7, 2009/10) Pixel-based change estimation using VTT AutoChange tool

21 Deforestation before SUFORD Copyright 2009 Indufor Oy

22 Deforestation during SUFORD Copyright 2009 Indufor Oy

23 Carbon calculations Calculation of average carbon stock per forest type using forest management plan of a representative sub-fma Same carbon stock used outside PFA boundaries Volume from FMP Mean wood density from FAO BEF and Root-shoot ration from Nam Leuk study Carbon fraction from IPCC (2003)

24 Development needs Short-term Permanent sample plot system, forest inventory No resources e.g. for soil carbon inventory Medium/long-term Capacity to maintain/develop the current monitoring system in PFA areas Funding Institutions: capacity at provincial & district level

25 Discussion