Phased Approach Time Line – Preparation Needs Safe Guards Background Paper p.8- 9:2.3.2;2.3.3; Define the property rights associated with carbon under different property rights models (common law, etc.) Define non-conventional public good commodity of carbon Free and prior informed consent from local participants Effective communication between science, local communities, government, and business Business focus on risk mitigation and not exclusively on profit motive Develop Generally Accepted Accounting Principles for forestry carbon credits by Financial Accounting Standards Board and others Engage CFA Institute to develop financial analysis and portfolio management metrics and capacity Standardize legal contracts Develop forestry carbon credit insurance mechanisms World Bank safeguards plus other international treaties, conventions, and codes of conduct Third-party audit, monitoring, validation, and verification Incorporate FLEG, non-timber wood products and services Incorporate REDD into existing governance structures and governmental functions Overlap carbon accounting, carbon quality, and forestry certification standards mechanisms Understand that biodiversity and community safeguards are risk mitigation mechanisms Financing Mechanisms & Practicality p Understand all current funding sources Develop forestry carbon securitization bond, sovereign bond, and municipal bond financing mechanisms Develop sustainable bottom-up cost accounting models that reflect real project performance measures Major sources of funding should be governments, ODA, IGO, UN REDD, FCPF, and others Northern NGOs as a channel for funds and capacity builder and service providers Corporate social responsibility funding from corporations, LLCs, high net worth individuals, and other for-profits? Develop different and separate additional targets of 11% to 32% decrease emissions by 2030 based on REDD Regulated market can learn from interacting with the voluntary carbon market Reward standing existing forests and develop mechanism to prevent degradation Develop biodiversity offsets and nation-wide Climate, Community, Biodiversity (CCB) standards? Levy on in-country voluntary market projects assists with paying for in-country capacity building Transparency on mtCO2e pricing and development, validation, and verification costs Key Characteristics National policy Create disbursed shared community property right New model and no longer business-as-usual Recognize legal and legitimate owners and engage with land user, land beneficiary, and land owner Existence of accountable financial system Input biodiversity explicitly into REDD definition Annex 1 and developed nation REDDiness preparation on demand side and within importation of credits, taxation issues, and policy issues Main Capacity Building Needs Understand carbon markets supply chain, life cycle analysis, legal contracts, and cash flows Mimic The Forest Dialogue process locally within Indonesia Governments function properly and effectively with flexible, transparent, iterative, and adaptive management REDD governance Develop local capacity to understand carbon projects’ contracts and legal rights and responsibilities Emergence of the ‘state of citizenship’ for local citizens within the development of the REDD process Interaction between voluntary and compliance markets Write, illustrate, and distribute actual ‘REDD case studies’ that include community, technical, market, financial, policy, and carbon analysis