REDD:Transforming Guyana’s economy while combating climate change

Montreux, June 16 2009

A LOW CARBON DEVELOPMENT STRATEGY

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Guyana has successfully managed to protect its forests

Source: <___>

738739739739738736735734

2000 01 02 03 04 05 06 2007

0.1%

9

16

1821

851Brazil

278Argentina

Guyana

Uruguay

Suriname

French Guiana

161616

1995 2000 2005

+0%

PopulationThousands

Land areaMillions of hectares

Tropical forest coverMillions of hectares

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For several years, Guyana has expressed a view that there is broad-based national support to continue to protect Guyana’s forests

We stand ready to work with partners who

shares our vision of sustainable

development, where our long-established

and world-leading commitment to

sustaining our forest can be matched by

economic reward which supports our

national development efforts to create a

socially just and prosperous country

“

”– His Excellency Bharrat Jagdeo

President of Guyana

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However, the country sits at the intersection of two global forces often seen as incompatible: economic development and climate change mitigation

• Guyana wants to increase incomes and create a better standard of living for its people

• New economic opportunities are emerging in Guyana, including infrastructure development and globally increasing prices for commodities

• However, unconstrained economic development could endanger Guyana’s standing forests and natural environment

• Greenhouse gas concentrations are rising to levels scientists associate with dangerous climate change, driven by rising energy consumption and deforestation

• Governments are implementing policy measures, including the Kyoto Protocol and national regulations, to hold climate change to a 2ºC temperature increase

• Proposed policy responses create both risks and opportunities for the economic prospects of developing countries – e.g. biofuels mandates, taxes on airline travel

Economic development Climate change mitigation

Done poorly, development could

cause deforestation

Done poorly, climate policy could stunt development

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REDD represents an opportunity to reconcile these differences. Guyana’s Low Carbon Development Strategy focuses on how Guyana can forge a new economy in an environmentally sustainable way

Economic development

Climate changemitigation

• Substantial growth in incomes and employment, driven by a cleaner, more diversified and internationally competitive industrial base

• Positive incentives and payments from REDD for forest conservation and protection

• Global financing for adaptation measures

• Maintenance of carbon storage and biodiversity in standing natural forests

• Limited emissions growth across all sectors of the economy driven by significant efficiency gains and international assistance, including carbon finance

• Minimizing and managing adaptation requirements

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Guyana’s LCDS positions REDD within a national strategy, where REDD is one of four key dimensions of the low-carbon development vision

Value of Guyana’s Forest

• Future development in Guyana requires the nation to use its assets to maximum effect.

• Guyana’s forest is its most valuable asset.

• REDD and Guyana’s partnership with Norway may generate payment for forest services that make the forests worth more alive than dead.

Low Carbon Development Opportunities

• Payment for forest services can enable Guyana’s economy to be realigned onto a low carbon development trajectory

Adaptation Plans

Guyana’s people and productive land can be protected from changing weather patterns

Involvement of Guyanese

• The Strategy will only work if it has broad-based support from Guyanese

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The LCDS and REDD are now the subject of a national consultation.

REDD

Low Carbon Development Opportunities

Adaptation Plans

To enable transition to a low-carbon economy

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RPlan supports the overall achievement of Guyana’s Low Carbon Development Strategy

• Objectives of RPlan:

- Develop /implement methodology to assess national baseline; predict future scenarios; assess and update biomass field estimates

- Framework for demonstration/consultation activities as part of readiness preparation

- Advise on Governance/financial structures which incorporate REDD and carbon trading- National system for monitoring/ verification- Advise on alternative economic opportunities- Build/develop capacity and investment needs of country in all these areas- Carry out relevant Environmental Assessments and propose mitigation

strategies/plans- Allow for sustainable utilization of forest resources to help sustain communities

• In parallel with RPlan implementation, the Government of Guyana asked the Government of Norway to engage independent external institutions to carry out an assessment of Guyana’s forest practices and law enforcement capabilities. The work was divided in two - and the Government of Norway engaged FAO and CIFOR, who are now carrying out the work.

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RPlan supports the overall achievement of Guyana’s Low Carbon Development Strategy

Critical Success Factors:

RPlan Recognizes that to achieve these objectives there must be amongst other elements:

-political will; inclusive coordination-meaningful facilitated participation/support from the public-land use policies/laws review; enforcement-capacity building / technical programs-Long term international partnership/funding

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Formal National Consultation started on June 8th, 2009 (preparatory consultations took place in previous 6 weeks)

• In December 2008, President Jagdeo gave Address to the Nation on Avoided Deforestation, and committed to national consultations in “early 2009”

• On June 8th 2009, President Jagdeo gave Address to the Nation on REDD urging national participation in consultation from June – August 2009.

• Address to audience in Georgetown and broadcast on national TV and Radio. Included:

– “At the core of the consultation is a key question: as our country embarks on a second generation of economic reform, how can we do this in a manner which aligns our national development needs with the global need to combat climate change?”

– “I want to emphasise that this is just the beginning of our consultative process, and there will be time and more materials to enable all Guyanese to engage with the strategy as we move forward.”

• Government of Guyana asked Government of Norway to engage independent advisor for consultative process. Government of Norway engaged the International Institute for the Environment and Development (IIED).

• They are now working alongside the stakeholders to assist in broad-based multi-stakeholder consultative process.

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Consultation Process will include national and sub-national consultations

• Once RPlan is approved, LCDS will be upgraded to include more detail from RPlan

• Other improvements have already been gathered through consultations – e.g. from indigenous representatives and from mining sector

• LCDS and RPlan will be tabled in National Assembly

• Regional Consultations targeting 142 Coastal, Forest and Indigenous communities will take place from June to August 2009

• Each Community will identify 15 persons to participate in “cluster” consultations

• IIED to provide advice throughout

• Details of consultative process to be communicated via national and local media, as well as via website

• Strategy being “translated” into accessible materials

• Debates at University and within school system will be supported

• Independent consultations encouraged

• Continuous feedback desired

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Indigenous communities will have the right to decide whether and how to participate in REDD

Amerindians have jurisdiction over the forest in all their own titled landsAmount of land under Amerindian ownership has grown over past decade – from about 6% of Guyana’s territory to about 14% now.Titling and demarcation process for remainder (including extensions) in progressOne Indigenous group proposed that REDD be used to accelerate outstanding demarcation process. Government agrees.Other indigenous groups suggested the establishment of Indigenous Development Fund, where some payments from REDD go direct to communities, and the balance goes to indigenous fund. Government agrees, and the idea will be discussed further during consultations.Government has emphasised the importance of prior and informed consentNo deadline will be imposed as to when and whether communities choose to “opt in” to overall framework.Government has stated that REDD must be designed to accommodate reality that different indigenous communities will want to move at different speeds in adopting (or not adopting) REDD

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National support for REDD will be assessed between now and August, and this will in part determine Guyana’s position at Copenhagen.

“We must hold the world’s focus on the fact that exclusion of a properly designed and resourced REDD from a global deal is not an option. It would inflict climate damage that would impact billions of people over generations – the world must not be permitted to hide behind an excuse that deforestation is too difficult to solve. It is no more difficult than devising new technology for clean energy or smart grids, or than building the infrastructure for carbon capture and storage. These areas have just as many technical issues that need solving as REDD. Solving deforestation is possible.”

Areas of Concern

Assessment of RPLAN not based on initial template as previously agreed on

Reviews constantly requested additional information; a lot of this information can only realistically be obtained during the process of plan implementation

Guyana has demonstrated considerable flexibility in providing the revised RPLANS incorporating the comments of the reviews.

Unfortunately that process became circular

During period February 13-June30, 2009 Guyana submitted 4 versions of the RPLAN

Latest TAP review indicates that Guyana has met or partially met 12 standards

Guyana is of the view that it has satisfactorily addressed the concerns of the TAP/WB/FPP

Is willing to provide this specific information if required

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Recommendadtion

Circular process must stop at some point in time

WB/Donors/PC must exercise some flexibility as countries have done

Learning process; we can learn more by doing; need to get pilots going to show that it is workable

Adjustments can be made based on justification

Important to remember that expectations are high and that momentum needs to be built on, not allowed to decline

Mechanism in place to ensure continuous dialogue between country and TAP-increases the efficiency of the process

Recognized that safeguards are necessary; however, WB needs to make its procedures more efficient to encourage stakeholder confidence.

Noble efforts of developing countries to implement REDD strategies must be recognized

Lets start the RPLAN implementation now, even if in a phased manner

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