1. Assessment of key policies and measures to address the drivers of deforestation and forest degradation in the context of REDD+ readiness in Nepal Dil B Khatri Naya Sharma Paudel

2. Presentation outline Context and objectives Review of relevant literature The study framework Methodology and approaches

3. Brief update of REDD+ readiness process in Nepal Awareness and capacity development of stakeholders Carbon assessment (development of methodology, guidelines and assessment of carbon) Piloting of REDD+ payment in community forestry Technical studies under FCPF: MRV, RL, SESA and others Development of National REDD+ Strategy- ongoing Development of sub-national level project documents (TAL and others)

4. Inadequate attention on understanding and addressing drivers of D&D Gaps in current state of knowledge on underlying causes of D&D Drivers of D&D and assessing measures and options received inadequate national policy debate and discussion Ongoing activities and initiatives have put less priority on this

5. Study objectives Overall objective: To deepen understanding of underlying causes of D&D and assess key policies and measures to address the drivers of D&D in the context of REDD+ readiness in Nepal Specific objectives: Identify key drivers of deforestation and forest degradation, their underlying causes and their link to wider political economy of the country Examine the current policies, strategies and other measures in addressing deforestation and degradation and identify gaps against the ground reality Recommend practical policy measures that can potentially address the identified drivers of deforestation and forest degradation

6. Framework of the study Surce: Geist and Lambin 2002

7. Study framework: Proximate drivers Proximate drivers Explanation Wood extraction Timber extraction (illegal activities) Fuel-wood Charcoal burning Agriculture expansion Land encroachment for agriculture use Land distribution for landless and environmental refugees Grazing Infrastructure development Hydropower development Road construction Other factorsPolitical instability Forest fire Invasive species

8. Study framework: Underlying causes Underlying causesExplanation Economic Market (timber demand, price) Economic structures (Tax policy, subsidy etc ) Urbanization & industrialization (growing urbanization) Special economic parameters (comparative advantages, price of substitute goods) Policy, institutional Formal policies (Act, regulations etc) Informal policies (mismanagement, transparency, corruption) Property rights (tenure and rights) Technological Production-technology Wood-technology CulturalPublic attitude, behavior DemographicPopulation growth, migration

9. Historical pattern of deforestation in Nepal Pre 1950: – Conversion of agriculture – Export of timber to India (East India Company) 1950-1980: – Resettlement and migration to Terai – Infrastructure development (i.e. East-West Highway, industrial areas) – Fuel-wood collection across the country Post 1980s: – Political instability – Politics around landlessness (Sukumbasi) – Domestic timber demand and illegal logging (small scale)

10. Drivers of D&D: deeper understanding required RPP-Identified proximate drivers RPP-identified underlying causes (consolidated) Drivers identified by independent studies High dependence on forests Illegal harvesting Unsustainable harvesting Resettlement Forest fire Encroachment Over grazing Infrastructure development Expansion of invasive species Limited livelihood alternatives Alternative source of energy Inefficient use Weak governance Weak law enforcement Market failure Insecure tenure Cross-broader demand Expansion of agriculture Poverty Economic growth Technology State exploitation: State induced exploitation of Terai Forest by conversion of forest into agriculture land, sale of timber to India, distribution to land to individuals (Regmi 1978 and Gurung 1989) Insecure tenure and poor governance:  Multiple and conflicting forest management modalities (Ojha 2006).  Weak law enforcement, poor governance and corruption (Sinha 2011, CNRM 2010).  Insecure tenure rights (Bhattarai et al 2002) Socio-economic dynamics and conflicts:  Complex socio-economic and demographic dynamics of Terai (Baral 2002; Baral and Subedi 2003).  Lack of robust institutions (Gautem et al. 2004 and Ojha 2008)  Widespread conflicts at different levels (Satyal-Parvat and Humphreys 2012).

11. Chain of explanation and analysis of policies and measures required Explanation of key drivers (like weak governance, poor law enforcement, market failure…) required Assessment of level of damage of specific drivers Assessment of current measures and policies to address the drivers Devising new options/measures

12. Understanding and prioritizing drivers and measures to address them Drivers of D&DCausesImpactsMeasuresFeasibility Deforestation 1. 2. 3. Forest degradation 1. 2. 3.

13. Possible impacts of drivers Change in land use (severity of deforestation and degradation) Economic loss (national economy) Local livelihood impacts and social conflicts Policy significance and long-term implications Institutional implication (i.e. local collective action)

14. Approach and methodology-1 Literatur e review and develop framewo rk National consultat ion worksho p Review governm ent policies, laws and regulatio ns and secondar y informati on Expert consultat ion (in small groups) Conduct focus group discussio n and interview s Write up, and get reviewed and feedback Present in REDD Working Group and validatio n worksho p Refine report Detail cases Interview with experts FDG at local and district levels Detail cases Interview with experts FDG at local and district levels