Legal and institutional structure
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Transcript of Legal and institutional structure
Legal & Institutional Structure REDDeX Discussion
14 July 2010
All numbers are draft and US$
14 July 2010
All numbers are draft and US$
2
Lets talk about..
Who• Intro Gurinder Tamber• What’s needed Jonathan Rotter• Where are we
– Multilateral Context Duncan Marsh– Indonesia Pak Wahjudi– Brazil Fernanda Carvalho– Sub-national Louis Blumberg
• Gap Analysis YOU guys!
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Intro
• 3-stage evolution of the REDD sector – 1. “Readiness” activities – 2. Early implementation (EI) or the “the missing
middle” – 3. Ex -post pay for performance system
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Readiness
Readiness Investments – public money[Eliasch suggests $4bn over 5 years for 40 countries]
Establishing national REDD+ Strategies
Developing a MRV system
Establishing a forest carbon inventory and national reference scenario
Institution and capacity building to support a national REDD+ system
Key players: FCPF, FIP, UN REDD
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Early Implementation
Early Implementation Investments – public and some private players willing to risk capital to learn about the industry
Incentives to landholders to compensate for the opportunity cost of not clearing land
Financing mechanisms to expand and strengthen protected area systems
Identification and preparation of degraded land for productive use
Capital to promote LCDS as an alternative to traditional forest-based industries
Key players: FCPF, FIP, UN REDD
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Payment for Performance (ex-post)
Payment for Performance - largely private money
-Project/sub-national crediting-Early action crediting- Nesting
- Route to market
- Long-term stable demand for credits
Key Players- Project developers, brokers, investment banks, funds, FCPF Carbon Fund, Amazon Fund, etc.
REDDeX 14 July 2010
Jonathan RotterThe Nature Conservancy
Legal & Institutional Frameworks: What’s Needed
Stages
Readiness Stage
• Legal Prerequisites– External (Multilateral or Bilateral)
• Grant Programs• Grant Agreement
– National • Proposal to create REDD+ Strategy
Readiness Stage
• Institutional Prerequisites– Multilateral Funder– Bilateral Funder– Designated National Focal Point and
Recipient/Responsible Institution
Early Implementation Stage
• Legal Prerequisites– External
• Grant Programs• Grant Agreement
– Internal• REDD+ Strategy• Conservative Accounting System• Basic monitoring, reporting & verification (MRV)
system
Early Implementation Stage
• Institutional Prerequisites– Multilateral or Bilateral Funder– International Observing/Clearinghouse Body?– Host Country Institution
Pay for Performance Stage
International Legal Prerequisites• International Emissions Trading Structure
• Oversight Authority• Offset Eligibility Requirements and Standards• Certification Process• MRV Requirements• International Registry
Pay for Performance Stage
National Legal Prerequisites• Internationally Accepted National Forest Carbon
Inventory and Reference Scenario• National Emissions Trading Structure
– Provisions for relationship to international market– Provision for Private and Subnational Actors– MRV Procedure– National Registry– Other enabling Provisions (e.g. for ownership &
delivery)
Pay for Performance Stage
• Institutional Prerequisites– International Institutional Arrangement
• COP or Other• High Level Body• Technical Advisory Bodies• Designated Reviewers and Accredited Certification
Bodies– Investor Country Regulatory Institution– Host Country Regulatory Institution
Thank you