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International lessons learnt on REDD+ benefit sharing mechanism

  1. GL Pham Thu Thuy, Grace Wong, Maria Brockhaus, Moira Moeliono, Lasse Loft GL International lessons learnt on REDD+ benefit sharing mechanism
  2. Outline 1. Background 2. Benefit sharing features (e.g. definition, legal instruments, beneficiaries, approach, time and frequency of payment, criteria for payment, safeguards, assessment framework) 3. Key messages
  3. Global comparative study on REDD+ benefit sharing mechanism since 2009 Series of info briefs downloadable from:
  4. What do we mean by ‘benefit sharing’ • Benefit sharing is the distribution of direct and indirect NET GAINS from the implementation of REDD+ as Benefits come with costs BENEFITS COSTS • 3 types of direct benefits: •Monetary gains from international and national finance related to REDD+ •Benefits associated with the increased availability of forest products & ecosystem services •Carbon rights ? •Indirect benefits e.g. improved governance infrastructure provision • Direct financial outlays (implementation and transaction costs) • Foregone revenues from alternative forest land and resource use (opportunity costs) ▪ Benefit sharing mechanism = range of institutional means, governance structures and instruments that distribute the net benefits
  5. Assessment framework of national carbon rights legislation (Loft et al. 2015)
  6. Who should be eligible to receive REDD+ payment ? Discourse 1: Those with legal rights Discourse 3: To effective facilitators of implementation Discourse 4: To those who incurring the costs Discourse 2: To low emitting forest steward Luttrell et al. 2012 ▪ Trade-offs need to be properly weighed and negotiated amongst relevant stakeholders ▪ Central question: What is the primary objective of REDD+ ?
  7. 1. Market-based systems are efficient …weak monitoring and evaluation systems mean effectiveness is unknown 2. Community forestry is both equitable and effective due to highly participatory nature …high transaction costs 3. Fund-based systems can be effective and efficient, if well-functioning institutions and sectoral coordination are in place 4. Forest financing instruments are potentially effective and easy to scale-up …marginalizes local people, top-down bureaucracy ▪ Elite capture is a big problem in all cases and in all countries! ▪ Co-benefits are uncertain Common approaches to benefit sharing and Key lessons Pham, T.T. et al. (2013) Approaches to benefit sharing: A preliminary comparative analysis of 13 REDD+ countries
  8. • Upfront and post payment combined • Payment made when people need the most • Conditionality is the key • Equal benefits and responsibilities distributed • Clear payment criteria Time and frequency of payment Principle for payment criteria • Depending on REDD+ objective • Incentivizing reform • Country-specific and participatory decision-making process • Managing the politics of numbers • Conditionality, additionality, and permanence • Geographically different Safeguards Identify high-risk area in Benefit sharing mechanism with particular linkages to specific safeguards through risk assessment exercise
  9. Framework used for assessing benefit-sharing mechanisms: design features, contextual factors and outcome criteria (Source: Wong et al. 2019).
  10. https://www.cifor-
  11. • There is no ‘one size fits all’ • Clarifying objectives of national REDD+ before design of a benefit sharing mechanism is critical • Mix of benefits and instruments – in many cases, indirect and non-cash benefits are important • Dialogue with actors at all levels are critical – legitimacy of a decision requires due process and participation in decision-making • Cross-cutting issues: Accountability/ legitimacy/ MRV Key messages
  12. | | | The Center for International Forestry Research (CIFOR) and World Agroforestry (ICRAF) envision a more equitable world where forestry and landscapes enhance the environment and well-being for all. CIFOR–ICRAF are CGIAR Research Centers. THANK YOU