The Yasuni ITT initiative Testing the international community’s commitment to climate change and biodiversity law Fran Aldson, MA Candiddtae, University of London

Background September 2007: proposal to the UN. Leave 846 million barrels of crude oil in the ground - ITT oilfield beneath Yasuni National Park. International compensation in exchange - US $3.5 billion. MoU with UNDP signed 3 August 2010.

The Yasuni NP ‘Cradle of the Amazon’. 1.8 million hectares. One of the most biologically diverse areas on earth. UNESCO World Biosphere site since ,274 tree and bush species. 593 recorded bird species. 100,000 insect species.

23% of the park overlies the ITT oilfields. Project also commits to ‘monitor’ the rest of the Park, and safeguard the 42 protected areas (19% of Ecuador’s surface area).

How will it work? Govt commits to leaving oilfields intact indefinitely. In exchange for at least 50% of the money that they would get if they allowed oil development = US €3.5 billion. This money goes into an International Trust Fund managed by the UNDP. Project managed by a steering committee - 3 govt reps, two donor reps and 1 civil society rep.

Finance Financed both by voluntary contributions and market-based - governments (emission permits auctions, carbon taxes, CC mitigation funds, debt for conservation swaps), IMOs, civil society, businesses, individuals.

Each contributor receives CGYs (Yasuni Guarantee Certificates) to reflect the carbon value of their contribution. CGYs cannot be recognised as carbon credits under CDM or EU ETS. However, if an ETS was set up in the US/Canada, the CGYs could be formally recognised as emissions permits.

Uses of the Fund Capital: invested in fixed income shares in renewable energy projects in Ecuador (geothermal, wind, solar, hydroelectric). Revenue: Invested by Ecuadorian govt in projects fitting with the National Development Plan: - reforestation, forestation, natural regeneration, appropriate management of 100m h.a. of forest. Aim to eliminate deforestation by 2030.

- conserving remaining ecosystems, esp. 43 protected areas. - increase domestic energy efficiency and savings. - promote social development around Yasuni area. The first three could be CDM projects under the KP, and/or form part of REDD+ programmes in post-2012 agreement.

Why is this initiative important? Protects the lungs of the planet - the Amazon. ‘As the Amazon goes, so goes the planet’. Will boost global mitigation efforts under UNFCCC. Essential to meet 2 degree target under Copenhagen Accord (Para.1) and UNFCCC objective. - direct avoided emissions: 407 million tonnes of CO2. (Ecuador’s emissions for 13 years). - estimated emissions savings from investment in sustainble energy projects: 802 million tonnes of CO2.

Revenue investment in reducing and eliminating deforestation could result in the emission of a further 777m tonnes of CO2 being avoided. Essential for biodiversity protection - CBD. A replicable proposal - applicable to the other 18 mega-diverse countries. Facilitates the ‘meaningful participation’ of developing countries in CC mitigation (according to the Accord (para.5) and Bali Action Plan (para. 1(b)(i).

Also fulfils sustainable development objectives - WCED, Rio and beyond by setting a developing country on a different, and more sustainable pathway than our own (renewable energy generation). And prioritisation of environmental goals over economic ones.

Would respect the rights of two of the last indigenous communities living in voluntary isolation - Taromenane and Tagaeri. (Art. 58 of Ecuadorian Constitution and 2007 Dec. on Rights of Indigenous Peoples).

Dangers and drawbacks Future govt change of heart (CGYs would become redeemable and refunded to donors). Won’t dent the world’s thirst for oil, or reduce demand/supply. Governance issues (money not used in the ways outlined). Challenges to govt conduct unlikely.

However… The risks are no greater than for REDD+. Indeed, it is arguably less so (easier to start up, evaluate and monitor). Can be clearly determined whether or not oil development in the ITT has taken place.

So, overall… Value of the Yasuni ITT initiative is: - concrete reflection of CBDR principle. - sets positive mitigation example to developing countries. - can be replicated in other biodiversity hotspots. - promotes true sustainable development, environmental prioritisation. - holistic and long term thinking over short- term gains.

- could help unblock the UNFCCC negotiations impasse. - could be part of post-2012 legal agreement on climate change. - essential to achieve the objective of the UNFCCC and CBD. - protects one of the most important resources on earth: the Amazon.

Final remarks Support for the Yasuni ITT initiative is a no- brainer if we are serious about meeting the objective of the Convention. If developed countries don’t support it, will damage trust with the developing world. And best chance to preserve the Ecuadorian Amazon for a generation will have been lost.