Forest Carbon Partnership Facility R-PP Preparation DRIVERS OF DEFORESTATION AND DEGRADATION August, 13 – 14, 2009

ADDRESSING DRIVERS OF DEFORESTATION AND DEGRADATION 2 Rapid land use changes are due to both Direct and Underlying/Root causes with significant impact on forest ecosystems loss & degradation Importance of identifying, understanding & prioritizing Direct and Underlying causes:  Direct and their Underlying causes are the key elements for shaping a National REDD Strategy  Indentifying and assessing them is the cornerstone for designing interventions to reduce pressure on forests  Crucial for selecting REDD options, planning interventions and deploying resources to reduce deforestation & degradation

UNDERLYING AND DIRECT CAUSES 3 UNDERLYING CAUSES Unsound Economic & Market Factors Landlessness & Unclear Allocation Rights Demographic Factors Unsound Policy & Institutional Factors Other Socio Economic & Cultural Factors Expansion of Agricultural and Pasture Frontier Unsound Infrastructure Development Forest Fires Forest Products Extraction Extractive Industry Activities DIRECT or PROXIMATE CAUSES

ADDRESSING DIRECT & UNDERLYING CAUSES OF DEFORESTATION AND DEGRADATION 4 REDD Strategy should address systematically the Drivers of deforestation and degradation ( e.g. case: R-PPs needed more focus, at least in the preliminary identification & assessment of D&U causes that would allow improving R-PP design & preparation of ToRs ) Important to link Direct causes with the respective Underlying causes to ensure effective REDD options to reduce emissions (e.g. case: Unsound past experiences in selecting interventions and priority areas to prevent forest loss, ICDP cases)

UNDERSTANDING UNDERLYING CAUSES 5 Result from structural socio-economic political and Institutional conditions that generate impact on forest cover and land use at local, national and also at international level (important for crafting REDD options) Expressed in direct causes that demand comprehensive interventions using approaches including among others, policy & legal reforms, and enforcement Demand political will & good governance

UNDERSTANDING UNDERLYING CAUSES 6 Underlying or root causes are diverse:  Unsound policy and institutional factors (e.g. perverse economic/resource use incentives; forest fees & permits payments vs. agriculture; bio-fuel in Amazonian countries)  Unsound Economic & market factors (case: Mahogany illegal trade case resulting in degradation)  Landlessness & Unclear allocation rights (e.g. case subsistence farming, sifting agriculture)  Demographic factors (e.g. case: unplanned immigration into forestland areas in Andean countries)  Other socio economic & cultural factors (unsound agricultural production practices & resource use e.g. case: man made forest fires & some tillage practices)

IDENTIFYING DIRECT CAUSES OF DEFORESTATION & DEGRADATION 7 Involve immediate human land use activities that change forest cover in local areas Are direct cause of forest loss or disturbance usually linked to an underlying cause, thus critical for REDD strategy Are the result of different complex relationship that differ from place to place & will demand different REDD options.

IDENTIFYING DIRECT CAUSES OF DEFORESTATION & DEGRADATION 8 Expansion of agricultural and pasture frontier (e.g. case: clearing land for cash crops (Soybean, palm oil etc.), cattle ranching, sugar cane, subsistence farming; each of them may need different options for REDD Strategy) Unsound infrastructure development (Hydroelectric or irrigation dams, road construction e.g. case in the Amazonian region, challenges for REDD) Forest fires (e.g. Challenges for tropical forest countries) Forest products extraction (e.g. unsustainable firewood extraction linked to poverty, illegal logging, etc.) Extractive industry activities (e.g. case oil, gas & mining, river bank mining in Amazonian countries)

GOVERNANCE A KEY BUILDING BLOCK FOR REDD FOREST & LAND INSTITUTIONS, AND CONFLICT MANAGEMENT TRANSPARENCY, ACCOUNTABILITY & PUBLIC PARTICIPATION QUALITY OF FOREST & LAND ADMINISTRATION LEGISLATION AND RULE OF LAW ECONOMIC EQUITY, INCENTIVES & SUSTAINABILITY

GOVERNANCE A KEY BUILDING BLOCK FOR REDD FOREST & LAND INSTITUTIONS AND CONFLICT MANAGEMENT  Stability of forest & land administration agencies; presence on the ground: capacity for timely response; based on public administration professionalism; decision making based on legislation and customary rules (e.g. case: recent land legislation changes in Latin America)  Capacity for conflict resolution on forests & land issues TRANSPARENCY, ACCOUNTABILITY AND PUBLIC PARTICIPATION  Public information, stakeholder participation and consultation on forest and land policy and legislation development; and on law enforcement; (case: REDD working group participation)  Accountability to stakeholders (Stakeholder policy dialogue round tables)  Decentralization & devolution of responsibility to local communities QUALITY OF FOREST & LAND ADMINISTRATION  Willingness to address forest and land issues  Capacity & effectiveness of forest & land agencies to implement and enforce laws  Control of corruption

GOVERNANCE A KEY BUILDING BLOCK FOR REDD LEGISLATION AND RULE OF LAW  Quality of forest & land legislation  Quality of forest and land allocations  Property and tenure rights recognized/honored and enforced  Quality of law enforcement ECONOMIC EQUITY, INCENTIVES AND SUSTAINABILITY  Right incentives for law compliance & sustainable forest and land use, and penalties for violations  Socially sound & fair terms of trade for forest & agricultural products  Strong market institutions  Appropriate user fees and taxes