REDD+ in Practice: Strengthening Global Governance. Improving Local Performance

This project will facilitate REDD+ results-based payments by

• demonstrating functional pay-for-performance systems
• improving consistency among incentive systems
• catalyzing innovations in public-private partnerships

It will improve and expand good governance and transparency while reducing illegality in the forest sector in Indonesia. This will happen through an integrated approach supporting advancement in Forest Management Units (KPH) and the Indonesian Timber Legality Assurance System’s (SVLK) development to bring innovative tools, approaches, and insights to improve the national policies.

Why: Linking on-the-ground REDD+ implementation and global policy to halt the rapid conversion of forests and spur large-scale forest restoration

Rapid conversion of forests continues, with few large-scale examples of stopping or significantly slowing forest loss. Tropical forest loss is increasing by 2101 km2 per year. There is substantial planned expansion in key countries.

While REDD+ remains a promising approach to creating the incentives to significantly curb deforestation, the incentive frameworks for REDD+ to date are insufficient. It has become clear that REDD+ incentive development will take place in a number of different contexts.

There is no guarantee of consistency between UNFCCC high-level policy guidance, detailed rules developed by the financing bodies, and national and subnational governments’ own incentive systems for forest protection and low-carbon growth.

If such rulesets in various policy forums prove contradictory or incompatible, it will complicate the implementation choices faced by developing countries. It may present barriers to full participation in REDD+.

In many forest countries, such as Indonesia, the absence of transparent and effective governance arrangements coupled with the lack of strong financial or political incentives for legal and sustainable forest management have been barriers to stopping or slowing forest loss at large scale.

Lastly, commodity supply chain actors, particularly consumer companies, are increasingly expressing strong desire to improve practices. Many companies have made impressive commitments, but are hampered by a lack of demonstrated practical solutions.

Linking on-the-ground REDD+ activity implementation and global policy and financing are necessary to bring together key actors and identify solutions to scale-up REDD+ and sustainable supply chain initiatives.

Through this project, The Nature Conservancy (TNC) will aim to enable significant financing to flow to countries achieving REDD+ performance.

Through TNC’s engagement in multiple REDD+ policy and finance forums, ranging from the UNFCCC to ICAO and jurisdictional carbon markets, TNC will promote the development of environmentally and socially rigorous policy frameworks, with a view toward modeling successful pay-for-performance systems and optimizing consistency across various forums and approaches to minimize barriers to participation for developing countries.

TNC will work intensively in Indonesia, arguably the tropical forest country where improved performance is most needed. TNC will help demonstrate forest sector solutions that bring together government and private sector at national, provincial, and management unit levels.

Through this project, there are opportunities for Indonesia’s experiences. There are tools and models to strengthen transparency, governance and legality, to be adapted to the forest governance and management challenges faced by other ASEAN countries. Engaging with government and private sector in forestry, palm oil, soy, and cattle sectors will utilize these experiences to strengthen key global policy dialogues on sustainable supply chains.

Expected results

The results from this project include the following expected key outcomes: 

• Robust and transparent approaches in key policy and incentives frameworks, including the UNFCCC, increase the ambition and integrity for REDD+;
• Financial institutions, including the Forest Carbon Partnership Facility (FCPF), adopt and implement strong, rigorous systems for delivering results-based finance incentives for REDD+; 
• Indonesia’s national forest policies on Forest Management Units (KPH) and Timber Legality Assurance System (SVLK) are supported by key sub-national actors and private sector;
• East Kalimantan's provincial forest policy on Forest Management Units (KPH) and Timber Legality Assurance System (SVLK) is strengthened as a result of rigorous analysis and piloting shared with other ASEAN countries;
• By 2020, forestry companies with global sustainability pledges test innovative practices for land tenure review, plantation siting, and chain of custody tracking; and
• Best practices, innovative solutions, and high-impact public-private partnerships designed to promote sustainable supply chains and smart land use are being effectively employed to meet the goals of the New York Declaration on Forests.

Partners

The Nature Conservancy works with a number of peer and partner organizations to accomplish our climate change and REDD+ objectives, although there are no anticipated sub-recipients.