This document summarizes key issues regarding the development of modalities for REDD+ reference levels. It discusses the importance of reference levels for determining business-as-usual baselines and eligibility for results-based finance. Some technical issues addressed include the scope of REDD+, use of historical emissions data, adjusting for national circumstances, and linking reference levels to financing. Procedural issues discussed involve the adoption of reference levels under the UNFCCC and related processes under the Kyoto Protocol. The document provides principles and potential outlines for REDD+ reference level modalities to inform UNFCCC negotiations.

1. Modalities for REDD+
Reference Levels:
Technical and Procedural Issues
9 June 2011 SBSTA Side Event
Prepared for
The Government of Norway

2. Authors
Arild Angelsen
Norwegian University of Life Sciences &
CIFOR
Doug Boucher (Co-Coordinator)
Union of Concerned Scientists
Sandra Brown
Winrock International
Valérie Merckx
European Forest Institute
Charlotte Streck (Co-Coordinator)
Climate Focus
Daniel Zarin (Project Leader)
Climate and Land Use Alliance
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3. Acknowledgments
Peter Aarup Iversen Florence Daviet Michael Obersteiner
Marco Albani Manuel Estrada Porrua Lydia Olander
Alfred Gichu Mochammad Farhan Helmy Erika Oord
Ken Andrasko Jose Carlos Fernandez Yaw Osafo
Kemen Austin Horst Freiberg Jim Penman
Tasso Azevedo Peter Graham Per F I Pharo
D James Baker Nora Greenglass Audun Rosland
Girma Balcha Bronson Griscom Maria Sanz Sanchez
William Boyd Pablo Gutman Sebastian Scholz
Andrea Cattaneo Promode Kant Osvaldo Stella Martins
Bas Clabbers Jagdish Kishwan Bernardo Strassburg
Tim Clairs Antonio LaViña Doddy Surachman Sukadri
Steve Cornelius Donna Lee Naomi Swickard
Pham Manh Cuong Cyril Loisel Victoria Tauli-Corpuz
Andreas Dahl-Jørgensen Fabien Monteils Natalie Unterstell
Daniel Nepstad Michael Wolosin
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4. Goals of the Report
Describe the issues that UNFCCC negotiators
need to address to develop modalities for
REDD+ Reference Levels and Reference
Emissions Levels
Inform and support the SBSTA process that
needs to respond to the COP-16 request for
these modalities to be ready for COP-17
Identify useful follow-up to this report,
between July and November.
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5. What are Modalities?
A set of requirements included in a decision
of the COP formulating rules, standards, or
terms of reference that help operationalize
mechanisms or frameworks established
under the Convention.
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6. Why Reference Levels Matter (1)
Reference Levels/Reference Emission Levels
establish business-as-usual (BAU) baselines against
which actual emissions are compared.
• We refer to these as “RLs”
• Emission reductions are estimated as the difference
between RLs and actual emissions.
• RLs underpin the credibility of REDD+
• The process of establishing RLs can inform development
and implementation of REDD+ policies
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7. Why Reference Levels Matter (2)
Reference Levels/Reference Emission Levels
are also needed to determine the eligibility of
UNFCCC Parties for international, results-
based support for REDD+, and to calculate
that support on the basis of measured,
reported, and verified emission reductions.
• We refer to this as the “compensation baseline”
(CB).*
• CBs underpin the credibility of REDD+ financing.
• CBs influence the potential effectiveness,
efficiency and equity of REDD+ funds.
*Formerly referred to as crediting baseline 7

8. Principles
For the Development For the RLs Submitted
of RL Modalities for Adoption
Environmental Objectivity
Integrity
Empirical Basis
Access
Transparency
Simplicity
Independence
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9. Technical Issues
Scope of REDD+
Historic Emissions and Removals
• Reference emission levels and forest reference
levels should be developed transparently taking
into account historic data, and adjusted for
national circumstances (Decision 4/CP15, para 7)
Adjusting for National Circumstances
Linking RLs to Results Based Finance
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10. Scope of REDD+
The full scope of REDD+ is covered by the
three categories in the IPCC Good Practice
Guidance framework
• Forests converted to other lands
o Deforestation
• Forests remaining as forests
o Forest degradation
o Conservation of forest carbon stocks*
o Sustainable management of forests
o Enhancement of forest carbon stocks in existing forests
• Other lands converted to forests
o Enhancement of carbon stocks through A/R? 10

11. Historic Emissions and Removals
Existing data in many countries are of limited value,
and new data will need to be collected and compiled
Steps and data requirements are relevant at
subnational to national scale—key step is to establish
a set of national standards
Countries could opt to work in a stepwise fashion:
• On selected states/provinces where change in forest cover
historically high, or
• On selected activity such as deforestation where national
capacity exists and satellite imagery is freely available
Approaches and data should be consistent with future
monitoring system
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12. Examples of Needed Data
4. Identify drivers of forest
2. Select which cover change
1. Definition of
pools to include
Forest- determines
which lands to include
15% cover
3. Measures of C stocks 5. Interpret
30% cover
remote
sensing
imagery
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13. National Circumstances
Forest Transition Stage Drivers
• Potential indicators: • Commodity prices
deforestation trends, Development Plans
forest cover, GDP/capita
and Policies
• May affect future rates
of forest conversion
• Integrate REDD+ into
national policies
• Inflated RL?
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14. Linking RLs to Results-Based Finance
Should the Compensation Baseline (CB) be
set equal to, or adjusted from, BAU?
Considerations relevant to the environmental
integrity of a REDD mechanism:
• Additionality: Definition and Scale
• Effectiveness and Efficiency
• Equity
• Avoiding International Leakage
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15. Procedural Issues
UNFCCC Adoption of RLs
Temporal Validity of RLs
Subnational RLs
Related Processes under the UNFCCC and
Kyoto Protocol
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16. UNFCCC Adoption of RLs
RLs could be adopted through one of several
alternative procedural approaches, including:
• A single-undertaking top-down process
• A country-driven sequential process
• Hybrid process: political decision at the
international level and consolidation with
country submissions
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17. Temporal Validity of RLs
RLs may be:
• Re-negotiated within a specific timeframe
• Re-submitted for review and adjustment
• Automatically revised
• Reviewed every X number of years e.g. in the
context of national communications
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18. Subnational RLs
Under an international REDD+ mechanism,
Parties would qualify for international results-
based support only on the basis of adopted
national RLs. Where Parties develop
subnational RLs, they would constitute a step
toward adopting national RLs.
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19. Related Processes Under the UNFCCC
and Kyoto Protocol
LULUCF
• Cancun Agreements – an annex lists reference
levels for estimating emissions from forest
management by developed country Parties in a
possible second commitment period. Values
subject to review
CDM
• If ‘enhancement of carbon stocks’ is clarified to
include A/R of lands not currently forested, then
rules would be needed on how to integrate
existing and possibly future CDM project activities
in broader RLs 19

20. Potential Outline for REDD+ RL Modalities:
A Suggestion for SBSTA
Principles
Guidelines on RL Development
Data Submission
Notification of Preliminary RLs
International Adoption of Final RLs
Data Administration
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21. Next Items on the Agenda
16:40 – Panel Commentators
17:10 – Audience Discussion and Q&A
18:00 – Adjourn to Reception
www.redd-oar.org
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