MSG Leaders Declaration on Environment & Climate Change Presentation by: Melanesian Spearhead Group Secretariat 31 October, 2012

Melanesia Spearhead Group (MSG) At a Glance Established in 1988 Members: Fiji, Papua New Guinea, Solomon Islands, Vanuatu and the Kanaks of New Caledonia Purpose inter-membership trade exchange of Melanesian cultures, traditions and values Sovereign equality economic and technical cooperation amongst members Alignment of policies in order to further MSG member’s shared goals of economic growth, sustainable development, good governance and security Country Population (Estimated Figure) Land Area (sqkm) Total GDP 2010 (US$b) GDP Growth Rate (2011) PNG 6,732,000 (2009) 452,860 9.8 8.9% Solomon Is 530,669 (2010) 27,990 0.67 9.3% Fiji 837,271 (2007) 18,270 3.2 2.1% Vanuatu 234,023 (2009) 12,190 0.68 4.3% Our Principle - The MSG is founded on the principle of respect for and promotion of its Melanesian cultures, traditions and values and for its defence and promotion of independence as the inalienable right of indigenous peoples of Melanesia The MSG members combined constitute over three quarters of the population and land area of the broader Pacific group of nations. The countries of Melanesia cover a land area greater than 500,000km2 and include almost 2,000 islands, the flora and fauna of our region are species rich and numerous species are endemic to Melanesia.

Key Melanesia Environment Challenges Threats to the loss of species and bio-diversity, and invasion of species; Harvesting and exploitation of natural resources (forestry, fishery, mining etc.) without suitable environmental and conservation safeguards; Soil erosion and degradation of coastal marine ecosystems; Loss of terrestrial ecosystem and resultant loss of vital water supply, food and traditional medicine, and employment and income; and Impact of climate change across all sectors of society, and in particular on and around the low lying islands, which will exacerbate the impacts of current unsustainable resource use and poor environmental management

MSG Leaders’ Declaration on Environment & Climate Change MSG Leaders signed the MSG Leaders Declaration on Environment and Climate Change Declaration on 30 March 2012. Recognise the critical importance of a healthy environment for the long term livelihoods of our people and the need for us to take significant steps to ensure the management and conservation of our unique ecosystems and biodiversity including our tropical forests, river systems, mountain and coastal ecosystems and marine resources; Realize the global importance and contribution of our Melanesian marine and terrestrial biodiversity to Global Biodiversity and the need for urgent and significant action to conserve and manage these resources; Highlight that climate change adds to the existing challenges of growing populations and socio- economic development threatening the status of our natural environment, and the role of healthy ecosystems as essential natural infrastructure in mitigating and protecting us from the impacts of climate change;

Declaration Endorse the adoption of a “Framework for Green Growth” as the basis for all development and note the significance of existing regional initiatives such as the Pacific Mangroves Initiative, Coral Triangle Initiative and other related initiatives supported by donors and partners; and Call for a “Melanesia Blue Carbon Initiative” Announce the establishment of a “Melanesia Terrestrial Commitment” Call for the development of a Melanesia Green Climate Fund Commit to a significant MSG role in Environment and Climate Change issues by formalizing an MSG Environment and Climate Change Ministers meeting, an MSG Environmental and Climate Change Technical Advisory Group and an Environment and Climate Change Unit in the MSG Secretariat

MSG Green Growth Framework Overall objective: Enhancing economic growth and development through the avoidance of loss of biodiversity and unsustainable use of natural resources, and the prevention of environmental degradation with a view to improving society’s welfare

Potential areas of focus national green growth at the national level Integration of green growth opportunities into national planning Better integration of national sustainable development policies, including climate change mitigation and adaptation (and others such as DRR, social development, poverty reduction, infrastructure) Promote innovative financing mechanisms Fiscal and budgetary reforms to promote more sustainable production and consumption, and to finance a green growth transition Promote best available technology transfer Promote eco-efficiency in the productive sector such as SMEs Traditional governance for resource conservation Public outreach An economy is the economic system that is made up of the labor, capital and natural resources and the economic agents that participate in the production, exchange, distribution and consumption of goods and services. Green economy recognizes the need for growth but, not just growth but quality growth that maintain the balance between the three dimensions of development—economic, social, and environmental---and is therefore sustainable. From a green economy perspective, the current economic system misallocates capital by undervaluing natural and social capital (other than entrepreneurship) resulting in gross imbalances particularly in the ecological and social sphere This is particularly important in the forests sector where over exploitation of the natural forest resources could result in high short-term economic gain but long-term consequences, while “green” forests can result in consistent, long-term gain.

Key sectors of a Green economy Mining Forest management Fisheries Energy Agriculture Manufacturing Infrastructure and transport Tourism Important role for government is to create an enabling environment for private sector led green growth.

Dual Consultative modality Regional Green Growth dialogue preparations Multi-organisation and integrated Partnership: UNESCAP, ILO, GIZ, IUCN, Regional/ International Process towards GG definition Ownership of the process MSG level Defining Green Growth in the national context Framing GG priorities Concrete implementing priorities National levels

Melanesia Blue Carbon Initiative Call for a “Melanesia Blue Carbon Initiative” that recognizes the significant role of mangroves, wetlands, coastal swamps and sea grass beds in sequestering carbon as well as other inherent benefits such as coastal protection and food security. This initiative will inform decision makers in Melanesia on the scale and value of these important areas as well as a strategy to conserve and manage these resources. largest mangrove, seagrass and coastal swamp areas in the Pacific. Conserve and manage mangroves and coastal ecosystems Identifies carbon sequestration potential Links with Pacific Mangroves Initiative and other existing initiatives

Draft Proposals Proposal 1: Identification of the contribution of Melanesian blue carbon in the global carbon storage and fluxes. Proposal 2: Awareness raising on the role of blue carbon in carbon sequestration in relation to climate change. Proposal 3: Identify funding opportunities to support the protection and management of mangroves, seagrass and other coastal ecosystems as a contribution to global mitigation efforts. Proposal 4: Monitoring and evaluation of the change of the extent and value of blue carbon resources To Consider…………. What is the extent of Melanesia Blue Carbon stocks – Mangroves, Seagrass, coastal swamps? What is the value of management and restoration of mangroves, seagrass beds and coastal swamps?

Melanesia Terrestrial Commitment Commitment to… Conserve and Manage Forests Major water catchments and river systems Mountain and coastal ecosystems Sustainable Land use practices Agriculture Development Engage and Support traditional landowners Manage and conserve their environment It also includes Strengthening of landowner communities and principal partners to sustainably manage their natural resources including forests, wetlands, fresh water and other natural ecosystems through co-management arrangements for long-term management effectiveness. Extending “REDD+ like” benefits to non-forest owning communities and non-forest ecosystems. And……... Establishing sustainable financing mechanisms at a regional and national levels to support restoration, management and conservation activities Investing in national capacity to manage natural resources at various levels including Government, Civil Society and land owning communities. Finally………… Ensure benefits from healthy terrestrial ecosystems are sustainable and resilient in times of climate and environmental change. Enhancing the sustainable livelihoods of landowning communities who do not have other sources of income, such as mineral or oil / gas wealth to support, to manage and retain their natural heritage by engaging in future economic activities (ecotourism, PES, pharmaceuticals)

Recognizing communities role with the environment Communities are owners or caretakers of environment goods Development and conservation partnerships Commit communities to management of natural resources Support governance structures Long term engagement Spreads benefits of development or resource boom beyond resource owners

Melanesia Green Fund Development of a Melanesia Green Climate Fund and matching national funding mechanisms to be resourced by climate change mitigation and adaptation funding and other innovative mechanisms including investments from the mining and extraction industries and private sector, that will support the implementation of the Melanesia Terrestrial Initiative and related marine activities to undertake climate mitigation and adaptation action Establishiment Seed funding Contribution by other development partners The MSG Climate Fund will complement the current efforts of the MSG countries to finance their climate change adaptation and mitigation programmes. These programmes will continue with their current applications to international climate financing institutions and focus whilst the focus of this Green Growth Climate Fund will be focused on blue carbon and the terrestrial commitment. Structures and fund instruments will reflect the ownership of the fund. A Melanesian set of features will be integrated into the fund mechanism to best respond to the needs and to be reflective of the priorities of the MSG. The envisaged structure of the fund would enable communities to address much needed development concerns whilst at the same time making commitments to conservation.

Conceptual thoughts on Climate Fund Sub-regional entry point Regional partnerships Cross country focus National pool Supporting National environment development focus Community input Access into communities Partnership in Green Growth process Pacific Islands Regional Multi-Country Coordinating Mechanism proposal The MSG Climate Fund’s resources will be sourced mainly from fund sources, foundations, Trusts and other Funding agencies that are keen to work with the MSG at sub-regional and national levels. It is envisaged that the climate fund would have 2 entry points, at national level and at the regional level. This would allow for the funding sources to contribute to the climate fund through the national level or through the MSG level

Useful Lessons All of the Countries in the MSG have developed National Adaptation Programme of Action (NAPA). Many adaptation programmes at community level Vanuatu – Community Pilots, Tegua Relocation & Paama Rainwater Harvesting projects PNG – focus on 6 priority area s - Coastal flooding, sea-level rise, Inland flooding, Landslides, Malaria and vector-borne diseases, Agriculture yield and damage to coral reef. Fiji - AusAid Building Resilience Project – Ba and Macuata Province - to protect and improve coastal ecosystem services and support long term food security, livelihoods and the well being of the Fiji an communities through activities that reduce community vulnerability to the effects of climate change.

Challenges High cost of travel to outer islands – will be a deterrent to spreading projects Enhance public education and awareness raising on climate change. Strengthening institutional mechanisms within members to coordinate CC issues Harmonization of climate change-related programmes, projects and initiatives. Coordination of stakeholders and their activities at the donor- government level and down to the planning and implementation of cc related programmes

Way Forward……MSG Establishment of Environment and Climate Change function within the Secretariat Initial 2 years support from the German Government though GIZ National Consultations undertaken on the Draft Frameworks and working with key Partners UNESCAP, IUCN, GIZ, SPC Endorsement by MSG Environment and Climate Change Ministers Meeting Endorsement by MSG Leaders – 2013