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redd+ in Brazil: towards a national architecture May 2013 by Natalie Unterstell, Ministry of Environment

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redd+ in Brazil: towards a national architecture

May 2013 by Natalie Unterstell, Ministry of Environment

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Outline of THIS presentation

Where are we now: insights about the REDD+ national architecture

Where are we heading to

Where are we coming from: how we see REDD+ and how the national context looks like

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Outline of THIS presentation

1 Good News!

2

3 Where are we now: insights about the REDD+ national architecture

4Where are we heading to

Where are we coming from: how we see REDD+ and how the national context looks like

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“Deforestation in the Brazilian Amazon is down by a whopping 78% from its recent high in 2004. If Brazil can maintain that

progress, it would be the biggest environmental success story in decades, and would set an example to other countries that

want to protect their tropical forests.” (Editorial, 7 June 2012)

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Is this a miracle? A GOOD CIRCUMSTANCE?

is god brazilian?

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why? prices or policies? 1

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prices or policies?1

Deforestation Slowdown in the Legal Amazon: Prices or Policies?

http://www. climatepolicyinitiative.org

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policies1

Deforestation Slowdown in the Legal Amazon: Prices or Policies?

http://www. climatepolicyinitiative.org

“Our analysis shows that approximately half of the deforestation that was avoided in the Amazon in the 2005 through 2009 period can be attributed to conservation policies introduced in the second half of the 2000s. This is equivalent to an avoided loss of 62,000 km2 of forest area, or approximately 620 million tons of stored C (2.3 billion tons of stored CO2), which our estimates value at US$ 11.5 billion US dollars.” (Pinho et al., 2012)

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Where are we coming from ?

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1988 2002 2004 2006 2008 2009 2010 2012

Plan to Control Deforestation in the Amazon

National Climate Change Plan + reduction goals

Amazon Fund

Forest Code

Climate Change Fund

National Climate Change Policy

Forest Management Law

Plan to Control Deforestation and Forest Fires in the Cerrado

INPE starts monitoring forest cover in the Amazon

National Protected Areas System

New Constitution

NAMAs

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National context

National Climate Change Policy

NAMAssubmitted to the UNFCCC

Sectoral Plans9 areas

Funding Instrumentsunder development

Brazilian Emissions Reduction Marketunder design

Emissions projected for 2020:3.236 mi tCO2eqReduction goal:Between 1.168

mi tCO2eq and 1.259 mi tCO2eq

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brazil’s policy context2

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National context

National Climate Change Policy

NAMAssubmitted to the UNFCCC

Sectoral Plans9 areas

Funding Instrumentsunder development

Brazilian Emissions Reduction Marketunder design

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Where are we coming from ?

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“By 2020, Brazil will reduce deforestation by 80% relative to

2005.” (pres. Lula in Copenhagen COP-15)

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National ARCHITECTURE

National Climate Change Policy

NAMAssubmitted to the UNFCCC

Sectoral Plans9 areas

Funding Instrumentsunder development

Brazilian Emissions Reduction Marketunder design

overseendesignedapprovedmonitoredevaluated

Inter-ministerial Committee on Climate Change (CIM)

Executive Group on Climate Change (GEx)

Brazilian Forum on Climate Change (FBMC)

by

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National ARCHITECTURE

REDD+ related actions @ NCCP

Plan to Control Deforestation in the Amazon

Plan to Control Deforestationin Cerrado

Low Emissions Agriculture Plan

Forest restoration actions

each onehas its

own governancestructure

andevolving

MRVstandards

High Level Group + Executive Body + subnational plans

High Level Group + Executive Body

National Committee + Executive Group +

Subnational Committees

Implementing arrangements

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National Climate Change Funding Instruments

National Climate Change Fundbudgetary

Amazon Fundseparate

STRATEGIC GOAL: promote sustainable development of the Amazon region and its peoples

CREATED IN: 2008, by Presidential Decree

STATUS: operative; undertermined lifespanAGENT: BNDES

MAIN SOURCE: payments for verified results (extra-budgetary source)

MODALITIES: non-reimbursables

SCOPE: Amazon region and 20% on monitoring projects in other biomes and other developing countriesMRV: TIED TO REGIONAL (AMAZON BIOME) RESULTS

STRATEGIC GOALS: enable the achievement of national CC mitigation targets + reduce vulnerability to CC negative impacts + prepare for a low carbon economy.

CREATED IN: 2009, by Law 12187/2009 and regulated by DecreeSTATUS: operative; undertermined lifespanAGENT: MMA and BNDESMAIN SOURCE: proceeds of oil revenues (budgetary source)

MODALITIES: non-reimbursables and reimbursables

SCOPE: national; complementary to Amazon Fund.MRV: UNDER DEVELOPMENT, TIED TO SPECIFIC PROJECTS.

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National architecture

REDD+ related

Fund

Governance body

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national contextInstitutional arrangements as

crucial to enable REDD+ results

Quantified goals

Reference levels

PPCDs

Sectoral Plans

Monitoring and MRV

Verified results

Institutional arrangement

Financial vehicles/fiduciary agents

Allocation of units

Resources

REDD+ actions

Donors/Partners

Diplomas

Safeguards

Objectives and Guidance

National Climate Change Policy

Sectoral Plans

PPCDs

Reference levels

NAMAs

Institutional arrangements

REDD+ actions

Funding instruments (financial vehicles/fiduciary agents)

Monitoring and MRV

Verified results

Objectives & Guidance

Financial needs & prioritiesSafeguards

Resources

Donors/partners

Diplomas

3

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national REDD+ architecture

• Enable permanence of emissions reductions achieved (results)

• Enable new emission reductions (national 2020 goals)

• Mobilize resources & actors ambitiously (as determined by the NCCP)

• Strenghten governance, through the role of subnational governments and non-governmental actors

OBJECTIVES

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national REDD+ architecture

• Build on relevant forest policy and climate change governance arrangements;

• Provide clear additional roles to existing institutions;

• Be national, not federal;

• Be transparent, flexible and allow for improvements over time, according to advancements in the international negotiations;

• Maintain the focus on emission reductions and increase of forest carbon stocks;

• Prevent fragmentation of policies related to REDD+, who need greater integration of sectoral approaches and scale of implementation;

• Ensure equity and transparency throughout its design and implementation

PRINCIPLES

3

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national REDD+ architecture

• 1. High-level Committee/Executive Body/Multistakeholder Forum on Climate Change

• 2. Executive Team/Secretariat

• 3.Cadre of Financial Vehicles, Fiduciary Agents and Thematic Windows

• 4. Implementing entities

• 5. Monitoring and MRV

PIECES

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national REDD+ architecture

• Enable the implementation of REDD+ instruments, in accordance with provisions of UNFCCC decisions;

• Enable participation in results-based finance schemes, based on national monitoring and MRV;

• Ensure a national accounting system and avoid double counting/double selling of results;

• Optimize the carbon benefits associated with the implementation of REDD+ related policies;

• Allocate resources and provide direct incentives to protect and restore forests;

• Harmonize policy and actions at various levels (federal, state, municipality).

FUNCTIONS

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national REDD+ architecture

• FORM FOLLOWs FUNCTION.

• NOT REPLICATE INSTITUTIONS AT VARIOUS LEVELS IF WE CAN HAVE A NATIONAL FRAMING: CENTRALIZATION CAN BE COST_EFFECTIVE IN SOME CASES, like MRV.

• Stakeholder engagement and participation

IDEAS...

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WHERE ARE WE HEADING TO?

• National REDD+ Strategy

• International architecture

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National redd+ strategy

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Connect Brazilian mitigation actions related to forests with the implementation of the Climate Convention/UNFCCC

Strategy to integrate climate change and forests policy and initiatives @ national context

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Where are WE NOW?

Inventário Florestal Nacional

Inventário Nacional de Emissões

Congress

Inventário Florestal Nacional

REDD+ bill in the Senate

REDD+ bill in the Lower House

PES bill

Forest Code regulations

Sensoriamento remoto

Inventário Florestal Nacional

Inventário Nacional de Emissões

Subnational level

Amazonas

Acre

São Paulo

Mato Grosso

Voluntary initiatives

Indigenous peoples

Private lands

Protected areas

Local Communities

1. Studies (2010 – 2012)2. Multistakeholder dialogue (2010)

3. Inter-ministerial working group (2011): Agrarian Development + Agriculture + Science and Technology + Environment + External Relations + Finance + Indigenous Protection Agency +

Planning and Budget + Strategic Affairs + Chief of Staff of the Presidency4. Report to the GEx (Dec 2011)

5. First version (April 2012)6. Technical negotiations (2012)

7.Task Force with Amazon States (Aug-Nov 2012)8.Final presentation to the GEx (Feb 2013)9. High Level consultations (ongoing)

10. Public consultations11.Approval

Federal Government

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national REDD+

architecture- The Amazon Fund as a biome-

scale REDD instrument; not federal, but open to all actors with

good proposals to develop the Amazon sustainably

- Actions on the ground as well as policies at various levels receiving

Amazon Fund support

- National Climate Change Fund: complements the AF supporting

actions in other biomes; reimbursables

-

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Source: REDD+ Tracking Funds, 2013.

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REDD+

REDD

RED

Amazon FundPlans to Control Deforestation

Forest degradation monitoring

and incentives tied to land

use

Positive incentives to forest

protection and

restoration, forest

assets, etc.

4• Implementation of the Forest Code with

climate change mitigation concerns

• Integrated action for deforestation and forest degradation control

• Positive incentives

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international context

• Adequate, predictable and sustainable support to developing countries

• Need to move from interim architecture to a UNFCCC one

• Green Climate Fund as key element

4

http://unfccc.int/files/documentation/submissions_from_parties/application/pdf/brazil_redd.pdf

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Extra

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Avoiding emissions will always be faster and more cost-effective than other actions in the short run. Brazil 2006-2020: control of deforestation in critical biomes and

areas. Once reductions occur, it is necessary to sustain it or enhance

forest carbon stocks. This requires high investment in the short run and implies in maintenance costs in the long run. Brazil 2013-2020: can invest RED-resources in actions with effect

in the long run and support the implementation of the Forest Code. SFM is always the best strategy in the long run, as it adds value

to the standing forest. Without a broad vision over strenghtening forest economy, results

and investments in REDD+ can lose effectiveness and durability.

In short...4

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Increased participation of scientists, civil society, NGOs and media in the debate on deforestation

= empowerment

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how we see redd+

• Mitigation and adaptation

• Results-based finance

• Safeguards

• National

• Multiple functions of forests and other ecosystems

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