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REDD+ Scheme for April Salumei Sustainable Forest
Management, Papua New Guinea
Presented by: Biatus Bito
(National Consultant, PNG)
TA 7302‐Capturing Economic Benefits From
Ecosystems Services (CEBES)
A. Overview of REDD+ In PNG
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1. Existing Gov’t Regulators and laws of forest and landA. Regulators
• The Papua New Guinea Forest Authority works in partnership with both local and international organizations in achieving sustainable forest management.
• The DEC ensure environmental compliance, monitoring and guidelines are adhered or followed by
developers
• The Dept. of Lands & Physical Planning deals with land matters.
• The National Fisheries Authority deals with fisheries and marine matters
• Note: The OCCD was established to deal with climate change issues on mitigation and adaptation but yet to be formally enacted as a dept to fully implement its functions
B. Laws and Regulations governing terrestrial environment
• Environment Act 2000
• Forestry Act 1992 (amended 1996, 2000, 2005, 2007 & Forestry Regulation 1993)
• FCA (SABL) 2005
• Most land in PNG are customarily owned by landowners in clans and clan groups. The government and others owned the remainder
2. CDM, PES & REDD+ Policy Framework for PNG
• PNG is a signatory to many international and regional conventions and protocols on environment, conservation, biodiversity etc
• PNG is a signatory to UNFCCC in 1992 and has ratified the Kyoto protocol in 1997
• In terms of CDM, a global DNA process exists and the government is working to translate this process into the National Legislative Framework.
• PNG does not have a PES policy
• PNG does not have a REDD+ policy and legislative framework to implement REDD+ in PNG but it is
working towards developing one by 2012
• REDD+ policy developed will go through multi‐stakeholder consultation and review by the Technical Working Group
• PNG thru
OCCD
is
taking
time
(Step
by
step
approaches)
to
understand
the
science,
technical
issues
etc to develop a strategy for REDD+
• It has completed its phase 1 . The Institutional & Technical Design Phase of UN‐REDD National Development Programme. Trainings, operators (OCCD, PNGFA, WWF, TNC, WCS) and Reviewers (UPNG, DLPP of National Mapping Bureau, Unitech, PNGFA & DEC) were identified
• The Monitoring and Measurement Phase is ready for commencement in 2012 (Phase 2) in
conjunction with REDD+ Demonstration project.
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3. PNG REDD+ Readiness progress• The National Climate Change Committee (NCCC) has
approved
the
PNG’s
REDD+
readiness
roadmap.
This
provides the
guide
for
the
formulation
of
the
national
REDD+ system, based on the international negotiations
• 1. In Phase 1, PNG has done the following
‐ Developed the REDD+ project Guidelines (Benefit Sharing & Distribution System and FPIC manual)
‐ REDD+ Readiness Pilot Initiatives Guidelines, Setting up
of a MRV system
‐ Developing a Conflict Resolution Mechanism
‐ Developing REDD+ Initiative Guidelines
‐
Ensuring
that
long‐
term
institutional
framework
is
in
place
‐ undertaking Alternative Livelihood study for forest dependent communities; and
‐ undertaking a Carbon Rights Study
4.
Forestry
and
REDD• Government (OCCD) is incorporating REDD into Timber Concession
Forest Governance by:
1‐ Investigating Forestry and REDD+: OCCD is coordinating with line
government agencies like DAL, DEC, DLPP & PNGFA to approve
REDD+ Criteria, Developing a Benefit sharing Model & ComplianceReview of SABLs
2. Investigating REDD+ initiatives: OCCD is coordinating with relevant agencies to implement several pilot projects next year (2012) covering four regions of the country. They are:
‐ Reduce impact Logging and secondary forest management (e.g.
Suau, Milne
Bay
province)
‐ Afforestation/Reforestation (Goroka, Eastern Highlands province)
‐ Forest Conservation (Kimbe, West New Britain province); and
‐ Community REDD+ scheme (April Salumei, East Sepik & West New
Britain provinces)
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5. Type of Carbon Market in PNG
•
Compliance market.
In
the
past,
the
Lihir
Gold
Mine
geothermal
project was PNG’s first CDM project (2002‐2009?) but not now
(the agreement was done between LGM and buyer but not State
and landowner). Currently NBPOL is doing methane captured
CDM on oil palm waste).
• The PNG government through OCCD is working to develop a
compliance Carbon Market Mechanism.
• The government does not encourage Voluntary Carbon market because it is non‐compliant and there is no international legal framework (risky) as compared to Compliance Carbon market
•Project
such
as
April
Salumei
is
currently
under
Voluntary
Carbon
market and hopefully will transit to compliance market
6a. Payment for performance
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6b. Government’s REDD fund disbursement
6c. How risks and responsibilities are distributed or
shared
• It is anticipated that PNG would move through a phased based
approach to the development of a fully functional REDD+
mechanism that will eventually linked performance based
payments to verify reductions
• Phase 1: Readiness Phase‐ Development of National Climate
Change Compatible Development Plan
• Phase 2: Implementation supported by Transitional Funding‐
‘More advance Readiness’ focusing on policy implementation and
measures to reduce carbon
• Phase 3:
Payment
for
Performance
‐PNG
is
compensated
for
verified reduced emissions and enhanced carbon stocks agreed to
reference level under a UNFCCC compliant system
Note: The government has made a commitment that by 2030 PNG’s GHG emissions would be halved and by 2050 PNG will be carbon neutral
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7. MRV & Technical capacities for REDD• PNG needs proper technologies and skills to do reliable MRV and
for monitoring (e.g. constant cloud cover , variation of C in
different ecosystems
and
ruggedness
of
the
country)
• PNG needs reliable PSPs to do a reasonable national baseline andreference point for GHGs. It needs an independent system that can operate to integrate information from other systems
• Proper studies on deforestation drivers need to be conducted
and international accepted methodologies be developed because
of various data available
• Jica and FAO including India and others have been providing
technical assistance/advice and trainings to OCCD and other linegovernment agencies to equip them with skills relating to MRV
purposes. Skills
such
as
GIS
and
remote
sensing
are
promoted
&
encouraged.
B. April Salumei Sustainable Forest
Management Project, Pilot REDD
project
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8. Study Site
There are four different vegetation types found in the area, which include the following: wetlands, small crowned forest, Open forest and medium crowned forest.
9. Background of project area
• Situated in Ambunti district, Abunti‐Drekikir Electorate, East Sepik province
• Area is least developed and isolated. Where average income is K20‐K100 per annum (US$10‐50/yr)
• Project area is currently subjected to FMA or logging
• Encompasses a total Gross Forest Area of 521,500 ha, with a total Production
Area of 177,200 ha and a Net Production Forest Area of 150,620 ha
• There are four different vegetation types found in the area, which include the
following: wetlands, small crowned forest, Open forest and medium crowned
forest.
• Project area has a population of approx. 7696 people (2000 census). It has a
population density of 4pers/km2. About 163 ILGs gave their consent
• 150 villages and hamlets and 30 language group (PNG has over 800 languages)
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10. Background of project area. ..Cont..• The project area was in court and landowners were awarded K58million as
compensation for foregoing logging when government declared a Wildlife
Management Areas (WMA) in 1997. (LO continue to seek payment but from
sources some
individuals
have
received
certain
amount
without
the
knowledge of the villagers).
• Was approved by government as PNG first pilot REDD project in 2008
• Project was certified by the validator/Verifier, Scientific Certification Systems
(SCS) of USA on June 13th 2011 and will expire in 5 years time on June 12th
2016. Certification was based using the 14 criteria set by Climate Community
Biodiversity (CCB) standards. Note: Prior to this, South Pole was the validator .
• The project would avoid emissions of 98,441,367 tonnes of CO2e‐ over project lifespan of 25 years
• Carbon accounting area = 150 620ha. Deforestation and degradation
assumed to be conservative by year 21 at a rate of 6871ha/yr and yr 22 will claim remainder of 6329ha = 180 620ha. No claim for years 23‐25.
11. People and Culture (photos by WWF Sepik & Biatus)
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12. Landscape (photos by WWF Sepik project)
13. Livelihood (photos by WWF project)
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14. Biodiversity (photos by Biatus Bito and others)
15. Carbon baseline•
Using
Tier
1
of
IPCC
methodology
and
default
value
the
project
has
an
est.
AGB
of 350tonnes.d.m/ha (using Tropical rainforest of Asia data (Insular). The ratio of BGB is 1.37. The Carbon Fraction default Value is 0.47. Less the grassland strata, the area holds 114,612, 751 tonnes of C or 420,284,957 CO2e‐
• BGB = 350 tonnes d.m/ha X1.37 ratio = 479.5 tonnes d.m/ha. The applied carbon
factor of 0.47 = 225.365 tonnes C/ha
• Logged over forest = 59 tC/ha. Hence C content per logging = 225.365‐ 59tC/ha =
166.365 tC/ha is lost in selected logged /degraded areas. Therefore 25,147,310
tonnes of Carbon is that could be emitted is conserved.
• Initial harvesting‐ Volume is 5,831,705m3 (gross volume per ha = 55.312m3/ha
less 30% defects = 38.718m3). Hence, the emissions rate is 9.63kg/m3 could
produce 56,159,319 kg CO2 or 56 156 tCO2e‐
• Carbon stock
lost
(20%)
due
to
land
conversion
is
30
232
ha
would
release
1,844,164 tC (using global warming potential (3.66) of C = 6,762,550 tCO2e‐
• 1It is projected that 1.4 tC will be sequestrated/ha/ year from land conversion
such as logging
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16. Possible Benefits from this REDD Project
REDD projects have five key benefits:
1. Reduction of GHG emissions.
2. Protection of global forest resources and
environments.
3. Protection of valuable biodiversity.
4. Preservation of forest communities’ cultures and
societies.
5. Investment of capital to alleviate poverty and create
social equity through sustainable development.
17. Economic benefits to landowners•
Crediting period
starting
date:
December
20
th
1996 (term
start
of
FMA
agreement). Duration: Until 19 December of 2046 but most likely for 35 years
according to FMA cutting cycle.
• Approx. 550,000 ha was demarcated for the April Salumei REDD+ project. Almost 300,000,000 Co2 e‐ was calculated . Landowners were told almost 200,000,000
tCo2 e‐ was sold and kept in the April Salumei Foundation. The amount of carbon
per ha is approx. 363.64 tCo2 e. ˜US$5 per ton of C, April Salumei expects to
generate approx. US$1billion per annum
• The proposed percentage for landowners hope for this project is:
1. Monetary: 70% to landowners, 10% to government & 20% to project developer
2. Development
(The
Developers
perspective)
a. Sustainable landuse activities‐ agriculture, NTFP, roads, health, schools etc
b. Future investment funds
c. Monetary (little and not everything to sustain local needs like school fees, food, basic services etc)
Note: The government’s benefit sharing mechanism is still under development to
determine the percentage
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18. Who are the beneficiaries (landowner model)
19. Corporate Structure of Hunstein Range
Holdings
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20. Who are the C buyers for PNG & April Salumei
Sustainable Forest Management Project?•
Private
companies
and
brokers
alike
have
shown
interests
in
developing Carbon projects in PNG. Companies such as Nuppon
PNG Limited, EarthSky, NBPOL, etc.
• Most potential C buyers are from developed nations in Australia
and Europe.
• Currently, Earthsky, an affiliate to the Swiss Bank registered in the
Cayman Island is the project developer for April Salumei
• Earthsky is working with Rainforest Management Alliance (an
international company) who is the project consultant to develop
the project and sell the C credits (at this stage the buyer is
unknown
in
this
study)
• At this stage, there is no knowledge who the Carbon Buyer is
according to this study (probably the Buyer is from Europe)
21. What’s working or not
• Almost 100%
of
contractual
agreement
by
landowner
company
(Hunstein
Range
Holdings) was attained. However, they claimed almost 80% of the contractual agreement by Earthsky is yet to be attained
• EarthSky is the developer but Rainforest Management Alliance wants to be the
project developer. Another developer, PNG Newband is also assisting
landowners in some way but is not so committed. There could be conflict of interest and leagl repercussions.
• Landowners are caught‐up in between different developers and this could cause
a serious repercussion on either of the parties involve
• Since ASSFM project was certified on June 13, 2011, the project developer and
now the developer and its agents went into hiding
•No
transaction
was
done
after
90
days
as
stipulated
in
the
contract
between
HRH
and Earthsky. (The developer may still be looking for the buyer?)
• The April Salumei project is yet to be legally recognised by the government (certified by DNA or OCCD) to become a compliance market oriented
• Expectations are already raised after the certification and recognition of the
project as government pilot project. Failure to receive benefits will affect the
landowners significantly
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22. Developer’s proposed involvement with
stakeholders
23. MRV• Carbon
pools
to
be
monitored
include
AGB
and
BGB
excluding
soil carbon
and
dead
materials or litters (expected to be constant)
• Monitoring of carbon will be from a CDM A/R activity
• Preliminary measurement was done using stratification sampling of the main strata of project area (plus 30 temporal plots) to get standard deviations for each value
measured
• Values to be recorded include dbh, ht (>3m), no. of trees, species classification, assessment of abnormalities (logging, tree mortality etc)
• Plots center market permanently, GPS and of 10‐15m radius and cost calculated for final, permanent monitoring framework
• Ground truthing
of
remote
sensing
data
will
be
conducted
to
determine
baseline
vegetation strata
• Leakage monitoring will be conducted annually to build local capacity but for verification purposes, it will be done every 5 years
• Remote sensing data using available international standards will be used to do MRV
for carbon by the developer
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24. Monitoring plan
•
A
monitoring
plan
include:‐Monitoring at local level by “forest stewards”
‐ Community reporting by forest stewards
• All reporting will be done according to the nature of the threats or impact occurring in the project site‐
immediate, quarterly and annual
• The stewards will be monitoring illegal logging, traditional landuses, any clearing, PSP
measurements, climate monitoring, reporting on
forest fires,
identify
any
soil
erosion
and
reporting
to
their superintendent and supervisors
25.Challenges• Cloud
cover
may
hinder
MRV
work,
especially
satellite
• High costs of doing MRV & ground truthing, and expertise & technology is
lacking etc
• Rugged terrain and variety of Carbon sink ecosystem (different from
lowland, hill forest, montane, karst etc). Need a very good system and
methodology
• Landownership issues and meeting landowners demands and
expectations
• Benefit sharing mechanisms must be developed fully to avoid stalling of project
• Meeting contractual obligations by all parties
(landowners are semi‐literate or illiterate and lack international business
knowledge and information)
• Most contracts are in English and legal terms and bulky. Often LOs just signed without fully understand the documents
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25. Conclusion
• The future
of
REDD+
is
uncertain
• April Salumei Sustainable Forest Management Project could be a scam because Voluntary Market is risky
• Landowners are illiterate or semi literate and can be
easily be manipulated by developers and
“middleman”
• REDD+ may
bring
conservation
and
development
however it depends on international negotiations and
in‐country polices and legislations
26. Take Home Message• Be careful of fraudulent deals with overseas carbon traders or fraudters
• Proper and effective awareness is necessary and must be done to educate locals and
landowner company reps.
• Never raise expectations and make promises to people in negotiations or writing contracts because it may backfire when landowners are not happy
• Voluntary and compliance market for carbon trade has its own loopholes and this need to
be rectified so all parties can benefit
• We need collective actions by all‐ governments and institutions‐ to assist the world’s poor and eradicate poverty thus meeting the UN’s Millennium Development Goal
•
We need
to
conserve
our
forest
as
a major
carbon
sink
for
GHGs
and
at
the
same
time
improve the livelihood of forest so they can maintain or enjoy the environmental services
the forest provides for them
• Without a government legislative framework or policy, REDD won’t work because it will still compete with other alternative land‐uses.
• We need good and effective MRV methods to monitor the project over its lifespan
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