“THE CHALLENGES OF INCORPORATING CLEAN DEVELOPMENT

MECHANISM (CDM) AND REDUCED EMISSIONS THROUGH

DEFORESTATION AND FOREST DEGRADATION (REDD) INTO

CLIMATE CHANGE POLICY IN PAPUA NEW GUINEA”

Professor Chalapan KaluwinEnvironmental Sciences & GeographySchool of Natural & Physical SciencesUNIVERSITY OF PAPUA NEW GUINEA

18th June 2008AUSTRALIAN NATIONAL UNIVERSITY

AUSTRALIA

OUTLINE OF PRESENTATION

• Introduction

• General Policy- Climate Change

• Clean Development Mechanism & REDD

• A WAY FORWARD

STUDY SITES

A: INTRODUCTING PNG

  

Greenhouse Gas Source/sink categories

CO2 CH4 N2O

All Energy 3,018.0 X X

 Industrial Processes 

  193.0

 X

 X

Agriculture  

4.27 12.20

Land Use Change &Forestry

413.0 X X

Totals 3,624.0 4.27 12.20

PNG Greenhouse gas inventory summary for 1994. All data are presented in gigagrams (Gg).

PNG GHG INVENTORY- 1999

2. CLIMATE CHANGE POLICY

• UNFCCC/KP- 2005• PACIFIC CLIMATE CHANGE FRAMEWORK-

2005• SETTING UP DNA -2007• DRAFT CARBON TRADE POLICY-2005• DRAFT FORESTRY & CLIMATE CHANGE

POLICY-2008

• NO PNG CLIMATE CHANGE POLICY

A Policy on Climate Change ?

Possible Framework:• Implementation of Adaptation Measures• Contributing to Mitigation of GHG Emission• Improving Decision-making & Good Governance• Improve understanding of Climate Change &

Variability• Education & Awareness• Partnership & Cooperation

C: CHALLENGES OF CDM & REDD

• CONSTRAINTS & ISSUES:

• CLEAN DEVELOPMENT MECHANISM (CDM)

• REDUCED EMISSION OF DEFORESTATION & DEGRADATION (REDD).

CDM & REDD OPPORTUNITY!

Accounts for 20-25% of global GHG emissions

PNG FOREST COVER -2002

Total Land Area46 mill ha

Total Forest Area39 mill ha

Production Forests15 mill ha

Acquired Areas12 mill ha

Under Timber Permit10 mill ha

Non- Forest Area6.0 mill ha

Reserve Forests24 mill ha

Available Areas3 mill ha

Other Areas1.0 mill ha

Estimated total sustainableForest production volume

Current committed cut:= 8.0 mill. M3/annum

National Sustainable Cut:= 3.0 mill m3/annum

Plus:

Est. Vol from Agricultural clearing

= 1.5 mill. M3/annum

PNG FOREST RESOURCE BASE

1. CLEAN DEVELOPMENT MECHANISM (CDM)• Kyoto Protocol – AIMS:

1. Assisting developed countries to achieve their compliance in regard to their quantified emission limits and reduce their commitments under article 3.

2. Assist developing countries in achieving sustainable development and at the same time contributing to the ultimate objective of the Convention

• Kyoto Mechanisms

– IET – applicable to developed countries– JI/AIJ – applicable to countries in transition– CDM – developing countries

• Activities– Reforestation– Afforestation– Agroforestry– Renewable Energy Sources & Efficiency

CDM PROJECTS

• Two Basic CDM Projects Types:

1. Energy sector:

Lihir Gold Mine: diesel replacement by geothermal energyFormula: Energy use = current fossil energy volume – replacement by renewable energy volume = off-set = CERs

2. Natural environment sector: focused on GHG absorption and storage (CARBON SINKS)

– Pending Projects:

» Ramu Sugar’s Afforestation Project (est. CERs: 15.72tC/ha)

» Galilolo Community (Bialla) Reforestation Project

– Formula: tC (sequestrated/storage) – emitted = CERs

Accounting for Soil Organic Carbon under IPCC Guidelines

OBJECTIVES FOR PLANTED FORESTS

Establishment of forest plantations can be used for any of the following reasons:

• SEQUESTRATION & STORAGE OF CARBON• INDUSTRIAL USE• CONSERVATION • ENVIRONMENT PROTECTION, INCLUDING FOR ADAPTATION• ENERGY – BIOMASS AND BIOFUEL• NON TIMBER PRODUCTS

INVESTING INTO CDM &

REDD?

2. Reduced Emission from Deforestation & Degradation .

• What is REDD and its opportunities to land owners of the Papua New Guinea (>90% ) ??

2. DEFORESTATION & DEGRADATION(REDD)

Accounts for 20-25% of global GHG emissions

Land Cover Types in PNG Region ( 1972-2002)

Islands Region

Mainland Lowlands

Highlands Region

DRIVERS OF FOREST CHANGE IN PNG OVER 30 YEARS ( 1972-2002)

DRIVERS OF REDD IN PNG

TWO MAIN GROUPS FOR REDD IN PNG :

a. Anthropogenic sources- Shifting cultivation- Logging- Large-scale commercial Agriculture- Burning- Mining and Petroleum exploration and development- Infrastructure developments- Settlements and urbanization

b. Natural sources– Earth quakes– Volcanic eruptions– Land movements– Landslips– Burning– Flooding

3. ISSUES YET TO BE RESOLVED ABOUT REDD

DEFINITIONS

May be similar to that used currently under both the UNFCCC and KP which was further refined in the Marakesh Accord and these are asfollows:• Deforestation – as the long-term or permanent conversion of forested land to

non-forested

• Degradadtion – where there are emissions from forests caused be a decrease in canopy cover that does not qualify as deforestation. It presents a much broader land cover change than deforestation

• Forest land – under the UNFCCC this category includes all land with woody vegetation consistent with thresholds used to define forest land in the UNFCCC process. Such threshold parameters include minimum area, minimum height and minimum level of crown cover.

3. IssuesTECHNICAL & METHODOLOGICAL ISSUES:

– Additionality: It is believed that by establishing national REDD baseline rates, the additionality of efforts to reduce deforestation can be judged quickly and accurately while underpinned by clear reduction targets. Using these baselines, we can determine, at a national level, whether REDD has in fact been reduced from historical levels.

– Leakage: It is believed that by addressing REDD on the national level, leakage will be captured in a manner

not possible with project-based accounting.

– Permanence: It is suggested that establishment of a carbon banking mechanism that credits early action and debits compliance failures. Further, leveraging the insurance markets to address traditional risks such as fire, flood, etc.

– Monitoring: With present satellite technology, remote-sensing technologies may be applied with the

necessary accuracy and cost effectiveness.

ISSUES –Cont.

Baseline ( 1972 OR 1990) Its a future projection of emissions from REDD and serves as a reference for

measuring reductions in emissions.

Monitoring these will include monitoring and measuring the various pools of carbon in

Forests (above and below ground biomass, dead wood, litter and soil).

A system for monitoring and reporting emissions from REDD should have the followingelements:

– Credibility– Transparency– Accuracy with high certainty– Based on good science– Compliance to the requirements of the REDD Policy

ISSUES-cont

CREDITING OR COMPENSATION ISSUES FOR REDD IN PNG:

1. PNG should Conduct research in analyzing the following:

– available data on carbon stocks and land-use change;

– identifying and prioritising for action the key drivers of deforestation and degradation;

– mechanisms for engaging with carbon markets and for managing REDD payments, as well as opportunities within the current national legislations and policies for actions.

2. PNG Need to examine the key elements of a REDD mechanism, especially the following:

– a baseline against which to benchmark reductions in deforestation and degradation;

– strategies to reduce emissions and to ensure their permanence;

– means of monitoring and verifying emissions reductions, and preventing leakages;

– REDD markets/financing;

– mechanisms to manage and distribute payments to those bearing the costs of avoided deforestation and degradation, including the resource owners.

THE WAY FORWARD

• PNG CLIMATE CHANGE & ENVIRONMENTAL SUSTAINABILITY OFFICE- June 2008

• A “NO-REGRETS POLICY”: A NATIONAL CLIMATE CHANGE & VARIABILITY POLICY.

The natural forest dynamics studies and climate change

THANK YOU