1. Arun K. Bansal, IFS (retd.) Former Addl. DG Forests, India
Carbon Finance – Global perspective Opportunities under JICA Assisted Forest and NRM Projects
Arun K. Bansal, IFS (retd.)
Former Addl. DG Forests, India
7th Annual National Workshop on
” Sustainable Forest Management through Community Partnership”
UPPFMPAP (JICA Assisted)
15th -16th April 2015, Lucknow, Uttar Pradesh, India

2. Carbon Finance CDM (AR) – REDD +
Carbon finance has its genesis in the global concerns of GHG emissions / climate change
SPM IPCC 5th Assessment Report 2013 – in 2011 atmospheric concentrations of the greenhouse gases CO2, CH4, and N2O 391 ppm11, 1803 ppb, and 324 ppb, and exceeded the pre-industrial levels by about 40%, 150%, and 20%, respectively.
Annual CO2 emissions from fossil fuel combustion and cement production were 9.5 Gt C/yr in % above the 1990 level & net CO2 emissions from anthropogenic land use changes were 0.9 Gt C/yr (avg to 2011)
Changes in many extreme weather and climate events have been observed since about 1950.
Due to sheer size India is fifth largest emitter of GHGs though our per capita emissions are lower than most developed countries.
Carbon finance aims to act as an enabler for clean technologies.
Carbon finance can be used to improve efficiency of polluting industries and/or sequester GHGS through restoration of degraded forests and establishing new forest areas.
CDM (AR) – REDD +

3. Carbon Finance & Forests
Forests have an unrecognised potential in climate change and development agenda:
Key areas identified by FAO in 2011 FRA:
1. Forest Industries – to maximise energy efficiency, spur innovation & create a reliable fibre supply and contribute to local livelihoods.
2. REDD+ along with poverty alleviation
3. Improvement in forest based livelihoods – non-cash value of forests, SMEs and CBFM
4. Long term implications of forest carbon tenure to be examined more critically to ensure equitable benefit sharing and long term management of local resources and rights.

4. Net change in forest area by country, 2005–2010 (ha/year)
Source: FAO, Global Forest Resources Assessment 2010

5. Forests & Climate change
Forests cover 31% of the world’s land area 4 billion ha.
1.6 billion people depend on forests for their livelihood
High rate of deforestation – 13 MHa/annum although has come down from 16 MHa/annum during 1990s.
Deforestation has important implications for CC. But deforestation figures do not reflect degradation – which causes loss of bio-diversity, soil erosion, and decline in biomass.
~ 51.9% area under management plans aiming at SFM.
Forests are both sinks (80% of carbon stored in land vegetation & 40% of carbon in soils) and sources (25% of GHG released are from deforestation).
Reduction of Deforestation and degradation and increase in forest cover are important for CC mitigation.

6. Uniqueness of India’s Forests
India has 1210 million human population (2011 census) [population density 382 per sq. km. up from 264 in 1991 & 325 in 2011]
464 million livestock (excluding Poultry).
21.8% population is below poverty line and more than 273 million people depend n forests for livelihood & some for subsistence.
Forest cover is 21.05% & Tree Outside Forests is 2.76% of GA.
Per capita forest cover is 0.06 ha compared to global figure of 0.6 ha.
In spite of vast pressure - forest cover has stabilized for last decade.
But quality of forest cover? Forest in Green Wash area ~ 53/76 Mha.
FSI’s assessment - carbon stock in India’s forests has increased by 592 Million tons between 1994 – 2004 (five carbon pools - Above Ground Biomass, Below Ground Biomass, Dead wood, Litter, Soil Carbon), and another 278 MT till
Growing Stock ~58 cum/ha compared to global avg. 131 cum/ha.
Carbon Stock is ~99 t/ha compared to global avg t/ha.

7. REDD+ the evolution
AR-CDM – since 1997 – as a component in CDM aiming at creating tradable CER credits [through transfer of technology to developing countries and diffusion of technology within host countries as well as improvement in livelihoods in developing countries] that can be used by industrialised countries to meet their ER targets. – under KYOTO PROTOCOL.
No forest cover since 1999, and plantation of commercial tree species.
Inclusion of tropical forest management was debated but given up due to perceived difficulties in methodologies to establish additionality and leakage – detrimental impacts out side project areas attributable to Project Activities.
Coalition of Rain Forests was established....
52 project including 4 in India.

8. REDD+ the evolution ....
UNFCCC COP 11 at Montreal in 2005 – Papua New Guinea, and Costa Rica jointly presented a proposal called “Reducing Emissions from Deforestation in developing countries: approaches to stimulate action – avoided deforestation
COP 13 at Bali in 2007 – many developing countries including India requested to include mechanisms for the Conservation and SMF and Enhancement of forest carbon stock- REDD Plus.
COP 15 at Copenhagen – it was agreed to use IPCC guidelines to establish a forest monitoring system at National & Sub- National levels using combination of RS and Ground based Inventory.
COP 16 at Cancun – a basic framework for REDD Plus including five targeted activities, phased approach, and consideration of safeguards was proposed.
Warsaw Framework on REDD Plus at COP 19 in 2012.

9. What REDD + is?
Reducing emissions from deforestation and forest degradation in developing countries and the role of conservation, sustainable management of forests and enhancement of forest carbon stock in developing countries [with biodiversity conservations, ecosystem service, recognising rights of indigenous (local) communities]
A part of Climate Change mitigation strategy under UNFCCC – under negotiation since 2005.
An incentive based mechanism for promoting and rewarding forest ecosystem conservation
Funds ? by developed countries to developing countries – fund based or result/performance based?
Definition of Forest:
Area > 0.05 ha, Tree height > 2m, Crown density > 15%
Reference Document India (DEC 2014) Area >= 1 ha, Crown Density >= 10%

10. WARSAW framework for REDD +
Results based finance to progress full implementation of activities
Coordination of support for the implementation of mitigation action in forest sector
Modalities for national forest monitoring system
Summary of information on safeguards
Forest reference emission levels 
Modalities for Monitoring reporting and verifying
Addressing drivers of degradation
Some pledges for int’l funds have been made ....
we need to look internal funding as well –
CAMPA – Externally Aided Projects .....
Voluntary Carbon Market

11. Phases of REDD+ Implementation
Readiness
Demonstration
Result based REDD+
Capacity building
Policies and measures
REDD+ strategy
Monitoring system
Implementation of policies
Implementation of strategies
Capacity building
Results based demo.
Payments (Performance-based)
MRV
Transaction Costs

12. REDD Plus co-benefits (not just C)
Synergy with Adaptation
Needs
Conserving
biodiversity
Protecting
ecosystem
services
Economic
benefits
Community
benefits
Integrated and sustainable management of ecosystem services -
maintaining/improving local/regional ecosystem services, where appropriate, encourages their sustainable use to support local livelihoods
Addressing drivers of degradation (causes & mitigation measures)
Social and Environmental safeguards
Non-carbon benefits – ecosystem services, improved governance
Capacity Development - communities, FD and other stakeholders
Local communities to get benefits of addl. carbon

13. aiming REDD+ readiness
REDD+ Programmes
aiming REDD+ readiness

14. National REDD+ Strategies
UN-REDD
work areas
MRV and Monitoring
REDD+ Governance
Transparent Equitable Accountable Management of REDD+ Payments
National REDD+ Strategies
16 partner countries currently receiving direct funding support. Total 40 partner countries
Stakeholder Engagement
Multiple Benefits of forests and REDD+
REDD+ as Catalyst of Green Economy

15. Forest Carbon Partnership Facility
The World Bank acts as the Trustee for the REDD Readiness Mechanism and the Carbon Fund, the Secretariat to the FCPF, as well as implementer by providing technical inputs
The FCPF is made up of REDD country participants, donor participants, Carbon Fund donors, and observers.
The FCPF - Readiness Fund supports tropical and sub-tropical developing countries in preparing themselves to participate in a future, large-scale, system of positive incentives for REDD+. This includes:
Adopting national REDD+ strategies
Developing reference emission levels (RELs)
Designing measurement, reporting, and verification (MRV) systems Setting up REDD+ national management arrangements
Including proper environmental and social safeguards

16. major components of REDD +
Addressing Drivers of degradation (analysis of DoD in the local context and how are they being addressed)
Rights of local people (what they are and how and to what extent they are being met with?)
Environmental and social safeguards (ecosystem services, bio-diversity, quality of planting stock/plantations)
Access & benefit sharing mechanism (how effectively is it functioning?)
Monitoring Reporting & Verification (base line data of parameters to be measured, measurement methods, community capacities to measure, reporting formats & frequency, verification process – manuals etc.
Conditions in Buffer zone ~10% area all around

17. How is India placed for REDD + ?
Long history of scientific forest management.
Trained cadres of foresters
System of Working Plans – revision every 10 years with detailed assessment of results – recent National working Plan code includes methodology for assessment of carbon stock
CBFM started in 1990 – involving ~ 1/3 of TFA
Biennial Survey of Forest Resources using RS data
Assessment of carbon stock (with SFR).
? Working Plans have provisions which meet almost 80% of REDD Plus documentation requirements.
CBFM is a very successful initiative and it is graduating into JFM+ through incorporation of activities to address livelihood needs of the FDCs.
Carbon stock is being assessed at national level but it may not be adequate to ascertain/identify local communities for transferring REDD+ financial incentives in due course. So there is a need to have carbon measurement strategies at sub-national and local levels.

18. India’s REDD+ Initiatives
REDD+ incentives to be passed on to the communities
National REDD Cell in the MOEF&CC
National REDD+ Policy and Strategy - Zero draft
Reference Document finalized Dec
Green India Mission – under NAPCC – focus on landscape approach for increasing forest cover over 5 MHa, improve quality of forest cover over another 5 MHa, increasing quality of ecosystem services, good governance at village level, and to provide services for improved monitoring at the outcome level to avail benefits under REDD + implementation??
FOREST Plus Project jointly with USAID
4 landscapes in Himachal Pradesh, Madhya Pradesh, Karnataka, and Sikkim
Focus on SFM and improving livelihoods of FDC with financial incentive as co-benefit

19. REDD+ pilot studies in India - TERI
As a part of Norwegian Framework Agreement with TERI
National, State and Community level Consultations
Six sites
Temperate forests (Uttarakhand)
Dry-Deciduous Mixed Forests (Uttar Pradesh)
Moist –Deciduous Forests (Madhya Pradesh)
Moist deciduous-Mixed forests (Odisha)
Mangrove Forests - Sundarbans (West Bengal)
Tropical Moist Deciduous forests (Nagaland
2 in JICA assisted forestry projects
Odisha – Angul - Jereng Budhiapahad VSS 200 ha. +8%
UP – Renukote – Gardawa Forest Beat 77 ha. +71
Although current carbon was measured based on five pools, change was compared based on two pools,, namely AGB & BGB, by computing them for baseline year, 1990, from NDVI through regression analysis.
(Ref: Assessment for Designing REDD Plus Project in India ,TERI, 2013)

20. JICA assisted Forest Sector projects &
REDD+

21. Activities under JICA Forestry Projects
Forest Restoration (JICA)
Reducing Forest Degradation (REDD+)
two sides of the same coin
In tune with REDD+
Addressing drivers of degradation on through comprehensive Micro Plans for restoration of forests, forest plus alternate livelihood program (reducing sustenance dependence on forests),
Environmental and social safe guards: CBFM under JFM or JFM+
Communities getting benefits
Capacity development of communities
Community involvement in monitoring
....and much more
Based upon OFSDP and other subsequent projects (second generation JICA assisted forestry projects).
Further improvement might be on way in JICA’s third generation projects.

22. Gaps JICA Forestry Projects in the context of REDD+
Micro Planning - Addressing Drivers of Degradation (how contextual & comprehensive is the analysis and effectiveness of mitigation measures - incl qualitative aspects, sustainable harvesting..) Ensuring bio-diversity conservation (biodiversity is getting conserved due to the nature of restoration works but.. Carbon & Biodiversity measurement (RS based monitoring of forest cover changes in treated forest areas) Benefit sharing (provisions & actual practices) Monitoring of impacts (with reference initiation of works – no uniform benchmark even across the project areas) Leakages including health and vitality of neighbouring non-project areas Community Capacity Development Additional focus areas Documentation?? Further improvement

23. Addl. actions for REDD + readiness under JICA
Develop understanding of REDD+ through stakeholder workshops
Mechanisms to assess forest condition & bio-diversity
Ensuring safeguards for the communities
Look at neighbouring forests - leakages
Operational equitable benefit sharing mechanism
Evolving sustainable harvest levels of selected NTFPs
Measuring carbon (five pools) – appropriate local volume tables
Capacity development (training) for use of GIS & carbon/biodiversity assessments
Evolve training modules/materials
Policy research: ownership?
JFM forests under resolutions – legal back up ?
Carbon rights as a new property ?
Valuation of ecosystem services and benefit sharing mechanism
Valuation of traditional knowledge
Additional action points taking into account the activities planned under most JICA assisted forestry projects in India as outlined earlier slides.
Research themes are suggested to provide valuable input to the Policy makers and to address potential future conflicts.
Can we create positive scope in JICA Forestry Projects
for facilitating REDD+ readiness, and REDD + type incentives to communities through pilots in each project

24. REDD + Pilots - JICA forest sector projects??
Create positive scope in JICA Forestry Projects for Facilitating REDD+ readiness – analysing & filling in the gaps REDD + type incentives to communities Some activities may be across the project and some in selected DMUs/FMUs Focussed Capacity Development of FD and communities through partnership with national/local organisations associated with REDD+ readiness projects/activities Costs: on two counts - enhancing awareness & preparedness - carbon linked incentives to JFMCs

25. REDD+ Readiness benefits the communities
Better understanding of emerging global initiative and getting prepared to harness its financial incentives as and when they become available
Undertaking forest restoration activities more effectively by addressing the gaps if any, with further capacity development and proper documentation of interventions and results thereof – effective & robust MRV
Obtaining direct benefits of well managed forest through sustainable harvests (NTFPs) – improved forest based livelihoods
Benefitting from eco system services (enhanced agricultural productivity, better health human and cattle...,) including PES?
Community empowerment – equitable benefit sharing, working towards local self reliance (through forest based & alternative livelihood options) and green economy at local and sub-regional levels
Become effective partners in national development
REDD plus requires a comprehensive/holistic approach towards SFM there by any gaps in present system will get addressed.
Drivers of forest degradation are to be addressed while taking care of bio-diversity and social/environmental concerns, and recognising the rights of FDCs.

26. thanks for patience concluding words....... bansalka@yahoo.in
Carbon finance - REDD+ to be seen as an opportunity
to improve livelihoods of forest dependent communities & Sustainable Forest Management
with financial incentives as co-benefit
thanks for patience