Presentation on theme: "Property Rights to Carbon in the Context of Climate Change"— Presentation transcript:
1 Property Rights to Carbon in the Context of Climate Change Grenville Barnes and Sheryl QuailSchool of Forest Resources and ConservationGeomatics ProgramUniversity of FloridaMarch 2009
2 Structure of Presentation IntroductionUnderstanding Carbon pools and dynamicsClimate Change Mitigation StrategiesWho controls the major forest Carbon Pools Conceptualizing Property RightsDefining Property Rights to CarbonConclusion
3 How to formalize the transaction? What would prevent sale to others? Who “owns” the tree?How to formalize the transaction?What would prevent sale to others?How can conservation rights beenforced?What is a fair market price?Jose’s $500 tree(Acre, Brazil)
4 Need to define C property rights “Clarifying both property rights to forestland and the legal rights and responsibilities of landowners is a vital pre-requisite for effective policy and enforcement… (Stern et al. 2007: 608)Only when property rights are secure, on paper and in practice, will longer term investments in sustainable management become worthwhile. (OCC 2008: 58)In order to create and deliver carbon credits to a carbon offset investor, project proponents must ensure that landownership and formal property rights are well defined and documented. This creates a special risk for developing countries that have inaccessible or costly land titling procedures.” (Randrianarisoa, Vitale & Pandya 2008)“…time has come for property theorists to ‘reconstitute property’ to engage with the sociological and ecological [dimensions]…” (Boydell et al 2008)“..property rights, far from being straightforward instruments of ownership, are nuanced and highly important to any system that essentially creates permits and offsets …” Allan & Bayliss 2005)“The reason many natural resources are not traded efficiently in market systems is …. the good or service should be private rather than public…….” (Portela et al 2008: 13)“Resolving the uncertainties surrounding legal title to the sequestered carbon is critical to securing its market value in a CDM transaction.” (Miller et al 2008: 166)“Many REDD systems will create a new form of tradable commodity in the form of carbon rights…(PEP Report 2008)
5 Natural Carbon Cycle CO2 in Atmosphere Forest Carbon Ocean Carbon photosynthesisOcean uptakerespirationOcean lossForest CarbonOcean CarbonrunoffFossil CarbondecompositionSoil Carbon
6 The Human Influence CO2 in Atmosphere Forest Carbon Ocean Carbon BurningFossilFuelsForest CarbonOcean CarbonWarming tempsAcidificationDeforestationLand Use ChangeForest clearingFossil CarbonSoil CarbonForests cheapest option…
8 Bali Action Plan – REDD (2007) Kyoto ProtocolBali Action Plan – REDD (2007)Clean Development Mechanism (1 project)emissions reduction from developedcountries to developing countriesAfforestation and reforestation (A/R) indeveloping countriesWorld Bank –Forest Carbon Partnership Facilityfunds for capacity building and project designBioCarbon FundA/R & REDDJoint Implementationemissions reductions betweendeveloped countriesUN-REDD ProgrammeChicago Climate Exchange (CCX)European Union Emissions Trading SystemRegional Greenhouse Gas Initiative (RGGI)New South Wales ETSOver the Counter (OTC) tradesFormal Markets($128 B )UK ETSVoluntary Markets($331 million – 2007)Cap/trade(Signatories)C Emitting Companies
9 REDD focuses on forest carbon Global Forest CoverageAnnual Net Change in Forest Area by Region ( )[FAO 2005]“… an estimated 20 billion tons of carbon could be released into the atmosphere over the next 20 years under a “business as usual” scenario in the Brazilian Amazon alone.” (Nepstad et al 2007)
10 Who Owns the world’s Forests (and Forest C)? [White and Martin 2002]22% of Forests in Developing Countries is reserved for or privately owned by communities – 2008 study shows trend continues…
11 FOREST TENURE 2008 – Latin America 2008 – Africa 99.7% administered by Government(Data source: Sunderlin, Hatcher and Liddle 2008)
12 Property Lenses Conventional western views – Locke, Blackstone et al Roman Law – the basis for civil lawCommon Property Resources‘Bundle’ of Property Rights paradigmWeb of interestsLayers of Rights and Interests
13 Roman Law Classification of Property Tenure RegimeDefinitionExamplesRes CommunesThings open to all by their inherent nature(CO2 )Air, sea, atmosphere? (open access)Res PublicaeThings belonging to the public and open to the public by law(sub-soil C; forest C?)Roads, navigable rivers(public property)Res (Terra) NulliusThings belonging to no-oneUnclaimed land, fish or gameRes UniversitatisProperty belonging to a private or public group in its corporate capacity(forest C in communities)Private university, condominium (community property)Res in PatrominiumThings that could be privately owned by an individual(forest C on private land)Land under private ownershipOpen AccessStateCommunalPrivate
14 Web of Interests… a set of interconnections among persons, groups, and entities each with some stake in an identifiable (but either tangible or intangible) object, which is at the center of the web. All of the interest holders are connected both to the object and to one another (Arnold 2002: 333).Property Object
15 Property Regimes Carbon Pools Global Commons‘Right to pollute’Carbon DioxideCarbon MonoxideMethaneATMOSPHEREBlue CarbonGaseous Phase(770G T)NATURALRESOURCES(FORESTS)Timber, Extraction, Conservation Rights (concession)Forest Carbon, Plants, Litter, RootsGreen CarbonBiosphere( G T)LANDLand Rights (title)Soil (1.5 to 1.6 K T)Mining/Mineral, Oil Rights (concessions)Fossil FuelsSedimentary RockSUB-SOILLithosphere(66-100M T)Gray CarbonTerritorial SeaHigh SeasOCEANDissolved CO2Calcium Carbonate(38-40K T)[http://www.oznet.ksu.edu/ctec/carbon/carboncycle.htm]
16 Layer of Rights and Interests - Madre de Dios (Peru) INDIGENOUSCOMMUNITIESSTATEPRIVATEIntangible AreaConservation ConcessionsEco-Tourism ConcessionsReforestation Concessions60 %3-5 %35-37 %Buffer ZoneForest ConcessionsNATURALRESOURCESBrazilnut ConcessionsCommunal ReservesNationalParksNationalReservesTitledUntitledCertifiedTitledRecognizedIsolatedLANDMining Concessions (gold)SUB-SOILLotes PetrolerosLayer of Rights and Interests - Madre de Dios (Peru)
17 Tenure Situation in Communities - MAP Region Pando - BoliviaNBrazilPeruBoliviaM(adre de Dios) – A(cre) – P(ando)
18 Pictures from the Amazon (2006) moooooo…….Spot the Forest Carbon?
19 Pando - Bolivia Land Tenure Spectrum Community Title Conditions State (Parks/Fiscal)State (forest concess)Peasant CommunitiesIndigenous CommunitiesPrivate individualCommunity Title ConditionsInalienableIndivisibleImprescriptibleunattachableirreversiblecollective+- 37% of Forest Carbon is on Communal Land
20 Land vs Resource Rights – Community in Pando (Bolivia) Family Tree TenureNucleated settlement – unity of title - individual and collective tree tenure -[Source: Cronkleton and Albornoz 2007]
21 New Constitution – Bolivia (ratified in Jan 09) Art. 348: “natural resources” = “minerals in any form, hydrocarbons, water, air, soil and sub-soil, forests, biodiversity, the electromagnetic spectrum and all of those elements and physical forces susceptible to use (aprovechamiento).”These natural resources are regarded as “strategic in character and of public interest for the development of the country.”Art. 349 further qualifies these natural resources as the “indivisible, imprescriptible, direct property and dominion of the Bolivian people, with the administration of the collective interest being the responsibility of the state.”The state “will recognize, respect and authorize individual and collective property rights to the land, as well as use and improvement rights to other natural resources.”Art Natural forests and forest soils have a strategic character for the development of the Bolivian people. The state will recognize use rights to the forest in favor of communities and private operators. It will also promote conservation and sustainable use, the generation of gross value to its products, and the rehabilitation and reforestation of degraded areas.Public interest - state ownership on behalf of the nation -C changes the scale as Public Interest could apply to international community[http://www.geocities.com/cpbolivia/texto2.htm]
22 Extractive Reserve -Brazil Family houseRubber TrailRubber TreeBrazil nut TreeState owns land20/30 year usufruct concessionUnity of concession – family trails – individual tree tenure – spatial extent varies by resource
23 Extractive Reserve - Brazil Family houseBrazil nut TrailRubber TrailRubber TreeBrazil nut TreeUnity of concession – family trails – family tree tenure – spatial extent varies on resource
24 Formalization of rights and transactions A cadastre and registry is a land information system that provides legal security, public notice and a current, comprehensive record of property rights within a jurisdiction. It answers the following specific questions with respect to property rights:WHAT is the nature of these rights?WHO holds them?WHEN were they acquired and duration?HOW were they acquired?WHERE are they located and what are their dimensions?Could a ‘carbon cadastre’ be applied to C property rights ?Could this be operated at a decentralized level?
25 Campesino Communities (Bolivia) Extractive Reserves (Brazil) Summary of Property Rights AttributesCampesino Communities (Bolivia)Extractive Reserves (Brazil)What Rights?Titled to the community with restrictions of inalienable, indivisible, not attachable (no mortgages), irreversible, immune from prescription (adverse possession), and must be held collectively.Community holds usufruct rights which are transferable via inheritance. The state or federal government continues to own the land under the extractive reserve and controls the use through a utilization plan.Whose Rights?Community with de facto division of forest resources to household in some instances. State regulates use of forest resources for commercial purposes.Government holds the land rights, while community has usufruct rights over land resources.Time and Duration?Initiated on registration of title and no restriction on duration.Usufruct concession usually stipulates 20 or 30 yearsHow Acquired?Communal Title from government.Federal or state government grant a usufruct concession. No title issued.Spatial Dimensions?Field adjudicated rectilinear boundaries with physical monumentation. Cadastral plan shows dimensions of outside boundary.Family-level use rights are tied to location of rubber trails and trails that link them.
26 Land Administration Projects – Latin America CARIBBEANJamaica (BID)Trinidad & Tobago (BID)Bahamas (BID)Republica Dominican (BID)Antigua & OECS Countries (OAS)Turks and Caicos (DFID)Mexico (BM & BID)SOUTH AMERICAGuyana (BID, DFID)Colombia (BID)Ecuador (BID, BM)Peru (BID, BM, USAID)Brazil (BID)Bolivia (BM, USAID, Ned, Nordic)Paraguay (BID)Surinam (Ned, BID)CENTRAL AMERICABelize (BID)Guatemala (BM)Honduras (BM, UE, BID)El Salvador (USAID, BM)Nicaragua (BM, MCC)Costa Rica (BID)Panama (BM, BID)Over $1 Billion invested in LAC on Property Formalization Projects (since 1996)
27 Lessons from Land Cadastre Initiatives Tenure dynamicsinheritancessalesrentalssubdivisionsRapid De-formalization following titling (no buy in)Narrow focus on individual, marketable propertyPoor baseline dataToo much focus on land as opposed to key resources“Ladder” of formal rights not just ‘title’Tenure pluralism (indigenous vs colonial)Conventional cadastres treat community-based tenure as a homogeneous polygon that assumes all internal rights are shared equally … (Ankersen & Barnes 2004)
28 ConclusionsCarbon flows across all property regimesWeak government capacity and enforcement may change governmentproperty into open accessCommunities become key stakeholders in CC mitigationCC hastens need to look beyond just land to key natural resourcesHow can we design programs that address CC and poverty alleviationThanks to Rights and Resources Initiative (RRI) for Support of this work..