4. role of forests in climate change

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Module 4: Forests and carbon trading

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Pay developing countries to keep their forests standing of REDD Concept in order to reduce greenhouse gas emissions REMEMBER

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Measurability Additionality Leakage Permanence REMEMBER

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This is the major outstanding issue in REDD+ REMEMBER

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Most proposals for financing REDD fall along this spectrum Government funds Carbon market

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Government funds Carbon market Governments have pledged a lot of money for REDD, but there is a lack of clarity on what it should be spent on.

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Almost all REDD+ schemes you see today are part of the voluntary carbon market This means they are not connected to any sort of emissions cap. Government funds Carbon market Compliance market (Trading under legally binding emissions cap) Voluntary market (carbon ofsetts, no cap involved)

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Carbon trading does not reduce emissions . Only the emissions cap does that. REMEMBER

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The more a company pollutes, the more land it can justify bringing under a REDD scheme Forest carbon credits shift the burden of dealing with climate change to those least responsible for the problem. REDD forest carbon credits increase the ecological debt of the global North

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REJECTED Forest Carbon Credits UNFCCC Identified 'fundamental problems' EU Emissions Trading Scheme Declared them too 'complex' Indigenous peoples 'No rights, No REDD' REJECTED REJECTED

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These countries have all given more than $50 million to finance REDD+ Nonetheless, REDD+ remains the favoured approach to tackling deforestation amongst many of the worst climate culprits REMEMBER

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If international REDD schemes are going ahead, they can learn some lessons from the existing voluntary carbon market.

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Problems with the existing Carbon Market 90% of the money goes to middle men

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The market favours large projects, so small landholders lose out Problems with the existing Carbon Market

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Markets go to the least risky areas Problems with the existing Carbon Market Of all carbon credits, only 1.41% have gone to projects in African countries, and 80% of these went to Egypt

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Problems with the existing Carbon Market Corruption ‘There is an inescapable nexus between emissions trading, illegal logging and organized crime’ - Interpol

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'What we measure determines what we do and if we measure the wrong thing, we do the wrong thing.' Josephe Stiglitz, Former World Bank chief economist

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Forest Carbon Credits don't address the underlying drivers of forest loss

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Poor forest governance Poor recognition of forest people's rights Insufficient recognition of communities’ rights to land and resources. Factors making the problem worse: REMEMBER

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Poor forest governance Poor recognition of forest peoples' rights No recognition of tenure rights for local communities Recognise tenure rights for local communities Recongise forest peoples' rights Improve forest governance Reduce consumption

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Module 3: What is carbon trading? Module 4: Forests and carbon trading Module 2: What is REDD? Module 1: What is Climate Change? Module 5: REDD and communities Module 6: Lessons from FLEGT for REDD

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RECAP: REDD schemes are beset with problems Measurability Additionality Leakage Permanence