Uma Lele Former Senior Advisor, Independent Evaluation Group, The World Bank Special Advisor, M.S....
-
Upload
augustine-allen -
Category
Documents
-
view
215 -
download
0
Transcript of Uma Lele Former Senior Advisor, Independent Evaluation Group, The World Bank Special Advisor, M.S....
Uma Lele Former Senior Advisor, Independent Evaluation Group, The World BankSpecial Advisor, M.S. Swaminathan Research Foundation, IndiaAmerican Evaluation Association Session on Climate Change and Avoided Deforestation: Challenges of Evaluation, November 13, 2009
Evaluation Challenges: Old Development Issues in Evaluating
Reduced Deforestation (e.g. Evaluation of the World Bank’s 1991 Forest Strategy)
New Carbon Related Evaluation Issues Complex political economy ranging from
the global to local levels Evaluation Framework of Inputs, outputs,
outcomes, impacts and sustainability challenged by Factors External to the Forest Sector Risks and Uncertainty, Measurement Issues Assessing Causality
Comparisons of Forest Carbon Sequestration With Other GPGs
Child Immunization— Once and for all immunization calls for Effective Delivery of affordable vaccines,
Information to parents, teachers, Public health delivery system consisting of trained people
Easily measurable and visible benefits and impactsTB Control—-DOTS treatment regime for a fixed period calls for TB Detection, Supply of TB drugs, Information Effective Public and private delivery systemsHIVAIDS Control-Needs Permanent Change in human behavior, International agreements on the production and trade in generic drugs, Effective delivery of affordable drugs for life to HIV positive individualsMalaria-Vaccine for Malaria?
In the interim Environmental Control of Mosquito, Public Information Effective delivery of affordable bed nets and their regular use,
"Context and Challenges of Carbon Trade Deforestation Believed to be Second Leading Cause of Global
Warming Reducing Rates of Deforestation and Degradation (REDD) will
achieve GHG Emission Reductions and slow speed of global warming
Cost of achieving unit of GHG Emission Reductions from REDD is less than Equivalent Reductions in Developed Countries –e.g. the current price of carbon per ton of $3 to $5 in developing country
compared to $ 25 to $ 30 in the U.S. Gains from Trade in Emission Reduction Certificates “Carbon Finance” a new instrument to provide incentives to
developing countries to achieve REDD New Forest Regime--Whether Trade in Emission Reductions or
Aid not to cut existing forests or plant new trees not yet determined
What is Cap and Trade?
Declining cap on total emissions over time, while allowing trading of pollution permits
Challenges in Cap and Trade Fossil fuel energy remains cheaper than clean energy Hence incentive to introduce clean energy technologies
does not always exist calling for subsidies Carbon offsets (financial instrument aimed at a reduction in
greenhouse gas emissions in metric tons of CO2 equivalent)—are indispensable to keep cap and trade affordable .
Offsets are meant to be additional reductions beyond those legally required
Determining Additionality can be a challenge
Issues in Cap and Trade
Equity in Pricing – Local cost and benefits vary among countries depending on alternative
land uses Price paid for emission reductions has been different among countries
depending on opportunity cost of land –under CDM projects Burden Sharing
Poorest countries are offering to reduce emissions more than the more advanced countries, e.g. in the Forest Carbon Partnership Fund
Whether to focus only on polluters --reward those who emit most, e.g. Brazil and Indonesia? OR,
Whether to reward countries for their good behavior, e.g., China, Vietnam and India ?
Free Rider problems And Risk of No Real Decline in Emissions Those with lower preference for emission reductions may trade more
without changing their own behavior. E.g. U.S. vs. Norway, Sweden and Denmark
Towards Including REDD in Carbon Finance Instruments
Currently No regulatory instrument under UNFCCC (the United Nations Framework Convention on Climate Change ) to compensate Emission Reductions from REDD as carbon payments.
Parties to the UNFCCC agreed to creating such an instrument in the future.
Negotiations at COP 13 agreed to explore variety of options leading to lots of experimentation, e.g. World Bank’s various carbon funds as input into Copenhagen and beyond?
Global Forest Cover by Basins
Complex Political Economy of REDD
Forests Provide Livelihood for 1.2 billion poor /only a small share
are in forest rich tropical countries Are Rich in Biodiversity Provide Environmental Services, e.g. Watershed
Protection Are Source of formal and informal Revenue for
industrialization and trade Face Huge Governance Issues—
Ambiguous and contested property rights Corruption and weak or non-existent rule of law
Factors outside forest sector more powerful than those within in causing forest loss—agriculture, bio-fuels, population growth, urbanization, globalization
Mitigation Is Focused on Highly Forested Countries
Highly Forested Carbon Rich Tropical Regions Contain Some of the Richest Biodiversity
Contain Small Share of Global Poverty REDD through Trade potentially benefits both
developed and developing countries
Adaptation Focuses on Forest Poor Countries
Forest Poor Countries Contain Rich Biodiversity and Poverty Greatest adverse impacts of climate change are on the poor in
Forest Poor Countries. Measures for Climate Adaption help poor countries and poor
people –with no obvious gains from trade Adaptation issues are difficult to disentangle from regular
development challenges and development assistance Both Mitigation and Adaptation raise questions of whether to
compensate only for Carbon, Or For Other Environmental Services—Biodiversity and Watershed Protection?
How to Determine Different Values of Environmental Services?
Global Incidence of Forest Biodiversity and Poverty
Emergence of Global Partnerships in Forest Carbon Finance
Carbon Finance Being Made Available by Developed countries to design and implement Performance Based Pilot REDD
schemes through international partnerships International Organizations have new forest carbon
finance programs of Technical Assistance and Carbon Financing
Collective Action Underway At Various Levels Global Rule setting and Financing, e.g. Copenhagen and Kyoto—
Partnerships Across Developed and Developing Countries Regional—Programs of investment, TA and Trading National Programs—Partnerships Among Different Stakeholders Sub-National (Provincial or State level) Programs Local Projects
REDD Readiness Strategy: Analytical and Policy Capacity Issues Information on Forest Cover—
which is poor No agreement on degradation—numerous concepts and definitions
Preparing a baseline of forest cover
Sources and Causes of Deforestation and Degradation Agriculture production , agricultural and forest trade, mining,
transport, urbanization
“Reference Scenario” Recent historical data on Emissions from deforestation and/or forest
degradation, and Estimated Future Emissions from forest carbon stock changes which
will occur if there are no additional positive incentives for REDD;
REDD Readiness : Governance and Legal Framework
Role of national, state/regional and local jurisdictionsAssessment of formal and informal land rights
Consultations with stakeholders – indigenous and other forest dependent poor,
private sector and other stakeholdersEnvironmental and Social Assessment –
benefits and risks to stakeholders inmeeting the World Bank’s 10 different
Safeguards Transparent and Fair Rules for distribution of benefits
among potential beneficiaries Develop Pilot schemes Determining Short and Long Run Carbon Finance
Needs
Monitoring, Measurement and Verification Area of Forest Saved or destroyed with and
without positive incentives Extent of Forest Carbon Emission Reductions= Risks and Uncertainty about
$ Price of Carbon per ton-current and future Exchange Rates Issues of Permanence of Forest “saved”. Leakages—forest lost elsewhere—domestically or
internationally Spill-overs—potential poverty reduction and economic
growth forgone, e.g., as a result of lack of growth linkages from agricultural development.
REDD Readiness 2
Monitoring and Verification; how external reviews/audits would actually work in terms of mandate,
methodologies, reporting process, publicity, periodicity Whether Monitoring and Verification would cover carbon and non-carbon
benefits, The use/sharing of REDD benefits How information will be made available to the public; How civil society and forest communities will actually be involved in the
planning and implementing of the monitoring, reporting and verification system
The nature of the country’s existing forest policy and changes needed in it Implementation schedule Clear responsibilities and milestones and Communications and outreach plan.
Production and Markets For Forest Carbon Emission Reductions Differ Substantially from International Development Assistance Carbon Markets for Climate Change Contracts to deliver Independently Verified Emission Reductions
Performance Agreements (ERPAs) in return for regular periodic payments
No emission reductions= no payment for environmental services Other Less Binding Payment for Environmental Services Program (PES) Programs
Some of the Development Assistance Motivations Outcomes are hoped for but not always sought or delivered Generosity of the rich to help the poor Self Interest Fill gaps in international capital market failures Recent Performance Based Conditional Cash Transfers for easy to measure immediate
benefits Assistance is either
Relief (Temporary), Rehabilitation (Temporary) Reconstruction (Temporary) Development (Long Term) but Not permanent
Challenges in Evaluating Forest Carbon Emission Reductions 1: What Is Required
Global Governance Credible and Simple Universally Understandable
Internationally Agreed Regime—current CDM rules re too complex for most countries to adhere to.
Regional and National Governance National mechanisms to design, implement, monitor, evaluate
and refine multi-sectoral and multi-level programs Broadly shared and enforceable voluntary or non voluntary
standards, norms and values with regard to respect for law, forest management, rights of disenfranchised and the poor, among others.
Unambiguous Property Rights of Publicly Held and Common Property Lands and Related Natural Resources,
Challenges in Evaluating Forest Carbon Emission Reductions 2:
Political Will International and national financing
mechanisms to address losers— will it have to include payments to corrupt
stakeholders who tend to get control of resources
Ways to Address Summation Challenges—What if developed countries do not fulfill their obligations in other sectors?
Assessing Risks and Uncertainty in all decision making
Challenges in Evaluating Forest Carbon Emission Reductions 3:
Capacity—A big challenge Ways to address Rapidly Expanding Global Markets,
for Agricultural, Energy, and Forest Products and for Currencies
Rights and Voice of Forest Dependent Poor Enforcement Capacity of Governments to address
issues of publicly owned and common property open access natural resources
Measurable impacts of changes in deforestation on climate, soil, water and biodiversity
Ways to Assess Free rider Problems