Accounting for REDD costs at multiple scalesThe Brazilian case

Marinho, E. and Wunder, S.

Facts about REDD in Brazil

A pioneer country

• Started reducing deforestation 10 years ago

• Reduction of 80% (2004-2012, INPE)

• Equivalent to 3.2 billion tCO2

Action Plan for Prevention and Control of the Legal Amazon Deforestation

• Command and control

• Soy and beef voluntary supply chain agreements

• Protected and indigenous areas increased by 60millions ha

• Black list of municipalities

• Land ownership regularization

Costs of REDD in Brazil

Implementation costs

• PPCDAm: 626 millions USD over 4 years (2012-2015)

Funds for REDD through the Amazon Fund

• 787 millions USD between 2009 and 2014

• 96% from the Norway’s Government

• 5 USD/tCO2 equivalent

• Accounts for less than 0.5% of the reduction in emissions

Opportunity costs

• 1 billion USD/year (Borner et al.)

• Unbearable for smallholders!

• Benefit sharing mechanisms

Sustainable Settlements in the Amazon (SSA) - IPAM

Funded by the Amazon Fund

• 11,1 million USD over 5 years

Strategy: promotion of ways to increase settlers income and quality of life with no need for additional florest clearing

5 to 10 years to observe decline in deforestion

3 settlements in Pará state in thedeforestation arc

HH:

692+350

Area:

96107 ha

Forest left: 64%

Created:

1997

HH:

110

Area:

6202 ha

Forest left: 73 %

Created:

1997

HH:

1577

Area:

136405 ha

Forest left: 87 %

Created:

2006

Activities SSA

Readiness (2700 families):

• Creation of participatory management system

• Socioeconomic and environmental diagnosis and monitoring

• Environmental Rural Registry

Fostering of smallholder agriculture (650 families)

• Technical assistance and investments

• Agriculture and forest management

Payments for environmental services (350 families)

SSA Costs by year total 11,1 million USD

Personnel58%

Contractors13%

Consumable Supplies

1%

Occupancy3%

Capital Assets9%

Maintenance6%

Travel7%

Miscellaneous3%

2012 / 1.941.322 USD

Personnel40%

Contractors6%

Consumable Supplies

33%

Occupancy2%

Maintenance4%

Travel3%

Miscellaneous4%

PES8%

2013 / 2.932.073 USD

Personnel51%

Contractors6%

Consumable Supplies

16%

Occupancy2%

Maintenance5%

Travel4%

Miscellaneous6%

PES10%

2014 / 2.299.329 USD

Personnel57%

Contractors4%

Consumable Supplies

12%

Occupancy3%

Maintenance5%

Travel4%

Miscellaneous3%

PES12%

2015 / 2.064.869 USD

Personnel57%

Contractors4%

Consumable Supplies

7%

Occupancy3%

Maintenance6%

Travel4%

Miscellaneous…

PES17%

2016 / 1.815.759 USD

Core team39%

Field tem61%

SSA Costs by settlement

Personnel42%

Contractors4%

Consumable Supplies

26%

Occupancy6%

Capital Assets2%

Maintenance9%

Travel4%

Miscellaneous7%

MOJU / 1.169.008 USD

Personnel42%

Contractors4%

Consumable Supplies

24%

Occupancy6%

Capital Assets5%

Maintenance9%

Travel4%

Miscellaneous6%

CRISTALINO / 1.171.231 USD

Personnel45%

Contractors1%

Consumable Supplies21%

Occupancy2%

Capital Assets2%

Maintenance6%

Travel2%

Miscellaneous3%

PES18%

BOM JARDIM / 5.614.830 USD

Personnel71%

Contractors16%

Capital Assets1%

Miscellaneous3%

CORE / 3.058.150 USDPolicy and Planning

17%Methodology Development

and MRV12%

Community Development

9%

Information Education &

Communication12%

Marketing2%

Finance and Administration

48%

CORE BY FUNCTION

Up-scaling SSA costs to West Para

Cost=731 USD/y/HH no PES

• Core: 227 USD/y/HH (31%)

• Field: 506 USD/y/HH (69%)

• PES: 739 USD/y/HH

• Average cost: 526 USD

But high heterogeneity!

• Moju: 148 USD/y/HH

• Bom Jardim: 879 USD/y/HH

• Cristalino: 2130 USD/y/HH

• Equiprobable per HH costs: 1502 USD

But how representative are these settlements?

Cost Average: 782 USD Total : 26 millions USD

Brazil: 475 millions USD/y

Conclusions

Brazil is a successful case but not within settlements

Performance based funds start to be used to address the problem

Slower and expensive: 3x PPCDAm budget!

What strategy?

• Start with the biggest settlements

• Expand to smaller as satellites

• Aggregate small and neighboring settlements

Perspectives

• Use the information on perceived economies of scale

• Expand the study to other projects