Xingu Social Carbon ProgramXingu Social Carbon ProgramPotential for RED

COICA d A AlliCOICA and Amazon Alliance Readiness for REDD processReadiness for REDD process 

Eng. Flávia Gabriela gClimate change program ‐ IPAMREDD Readiness ‐ South‐South CollaborationREDD Readiness  South South Collaboration 

Workshop

Xingu Social Carbon ProgramXingu Social Carbon ProgramPotential for RED

Eng. Flávia Gabriela gClimate change program ‐ IPAMREDD Readiness ‐ South‐South CollaborationREDD Readiness  South South Collaboration 

Workshop

Overview and main aspectsOverview and main aspects

Wh th Xi i i ith t ti l f RED?• Why the Xingu is a region with potential for RED?• Divers of Deforestation in Xingu Headwaters• Land tenure aspectsLand tenure aspects• General Objectives of the XSC Program Initiative• Principles of the XSC Program Initiativep g• Distribution of Benefits• Current support Mechanisms for RED in the Xingu• Baseline and Monitoring• Governance

Fi M h i• Finance Mechanisms• Main challenges and Targets

LocalizationLocalization

The Xingu Basing

Why the Xingu Basin is a region with potential for RED?

S l ( i i 1 8 0 k i b i 11 000• Scale ( Xingu river 1,870 km; Xingu basin 511,000 km²  +/‐ 50% of protected areas;

• Hot Spot of deforestation –– Average of 20,000km² of deforestation between 1996‐2007

• 139,000km² Indigenous lands recognized and entitled 

• Social and cutural diversity: (18 indigenous tribes, y ( gtraditional and local communities, smallholdersproducers, medium and big agro‐industrialists)

Smallholders/Family Farmers

L l G tLocal Government

Indigenous Peoples

Agro‐industrialists

Indigenous Peoples

Social‐Environmental MovementScientistsSource: C.Stickler

Drivers of Amazon Deforestation1970 ‐ 1997

• Federal integration programs– Roads

– Colonization projects

Subsidies for large scale cattle ranching– Subsidies for large‐scale cattle ranching

• Drivers largely endogenous (Amazon, Brazil)– Virtually no export of beef

– Frontier expansion for the sake of frontierFrontier expansion for the sake of frontier expansion itself.

Expansion of Agricultural frontier

Source: ISA

ourour

Source: C.Stickler

Deforestation in Xingu ‘’Headwaters’’Deforestation in Xingu  Headwaters

• Deforestation Rate between 2000 ‐2007 oscillated from 650 t 3170 k 2/ ( 1950 k 2/ )650 to 3170 km2/year (average: 1950 km2/year) 

• Total 92 856 km² of remaining forest (72% original• Total ‐ 92,856 km  of remaining forest (72% original forest) ‐ 20,730 km² of Savannas (Cerrado) (55% remaining).g)

• Non protected areas (outside indigenous lands or ²conservation units):  58,641 km² rain forests and 

14,381 km² of Savanna.

Amazonas River

Amazonas River

Transamazônica

Highway

Cuiabá-Stantarém Highway (BR-163)

DesmatamentoDesmatamento 2005

Dynamics of Deforestation in Xingu ‘’Headwaters’’

Source: C. Stickler, WHRC (2008)

5 to 13% of5 to 13% of annual Brazilian Amazon deforestation 

1.2% of global emissions from land use hchange

0.2% of global emissions from land usefrom land use change

Land Tenure Issues of Forest in the Brazilian Amazon

Source: C. Stickler, 

Good (not perfect) enforcement capacity

Relatively well-defined land title enforcement capacity

~30%~30% of private lands registeredof private lands registereddefined land title

Private lands, registered

Indigenous landsIndigenous lands

Protected/restricted use areas (government)

Source: C. Stickler

General Objectives of the CSX InitiativeGeneral Objectives of the CSX Initiative

I th b t di ti t i iti ti• Increase the synergy between distinct initiatives from the different actors of the Xingu Basin;

• Consolidate a concept of social and environmental carbon for the region 

• Develop a fair benefit sharing mechanism; constructed in a consented manner with theconstructed in a consented manner with the local civil society;  

h h i i di• Strength the negotiations surrounding on REDD in the UNFCCC 

Principles of the Program CSX (8)Principles of the Program CSX (8)

• Shared responsibility: Reducing emissions of greenhouse gases from the global deforestation is a global interest, the liability for such a reduction should therefore be shared by all (thesuch a reduction should therefore be shared by all (the countries). 

• Compensation: Effort to reduce emissions from deforestation or pforest conservation should be totally acknowledged as the provision of environmental services in a global scale and, th f h ld b l i ll t dtherefore, should be properly economically compensated . 

• Right to Receive Economic Resources of Compensation: The compensation should favor those (sectors of society) whichcompensation should favor those (sectors of society) which, played the efforts to reduce the deforestation,  promote conservation and restoration of forests, particularly : forest peoples (IP, traditional and small producers settlers) , governments and owners of private forests.

Principles of the Program CSXPrinciples of the Program CSX

E it bl di t ib ti f b fit Th b fit• Equitable distribution of benefits: The benefits of compensation should be distributed fairly between those sectors of society giving prioritybetween those sectors of society, giving priority to the society sectors that historically  fought for preservation/conservation of their forest areas, p / ,avoiding the perverse incentive for those who always benefit from deforestation.

• Additional effort: Needs to be additional to the efforts of developed countries in reducing their own emissions occurring within the Conventionown emissions ‐ occurring within the Convention or under the new Protocol after 2012.

Principles of the Program CSXPrinciples of the Program CSX

T Th h ld b id d b l• Transparency:  The program should be guided by clear understanding of the implications (social, economical and environmental) of different perspectives adopted to reduce 

i i f d f t tiemissions from deforestation.• Access to information and effective participation: Must be 

guided by the previously broad access to information so that g y p ybeneficiaries are able to participate in its construction and beyond. It should be guarantied the effective participation of all stakeholders 

• Respect the rights of local populations , Indigenous Peoples and Traditional Communities: The CSX recognize and respect the rights of indigenous and traditional peoples to theirthe rights of indigenous and traditional peoples to their traditional territories, their resources and their traditional ways of forest use in accordance with UN declaration of Indigenous peoples Rights and (ILO Convention 169)Indigenous peoples Rights and (ILO Convention 169).

Distribution of Benefits: Proposal for a compensation fund

Th f d• Three funds:1. Forest Peoples' Fund ‐ This fund should enable the 

compensation to indigenous peoples extractivescompensation to indigenous peoples, extractives communities, and some small producers settlers, with forest areas.Forestry subsidy: forestry grant or subsidy for non‐timber or timber forestry productsThis fund is justified by the fact that the peoples ofThis fund is justified by the fact that the peoples of the Brazilian Amazon forest has a key role of protecting the forest and reduction of deforestation. p gThe decisions and the priorities of the use of the fund  will de defined by the forest people.

Percentual de área desmatada em áreas protegidas da Amazônia Brasileira

2.50

3.00

3.50

mat

ada

1.00

1.50

2.00

área

des

m

0.00

0.50

1.00

Áreas UC de Terras Reservas Fora das

% d

e

Áreasmilitares

UC deproteçãointegral

Terrasindígenas

ReservasExtrativistasUCs uso Sust

Fora das UCs

Tipo de área protegida

Distribution of Benefits: Proposal for a compensation fund

2. Government Fund – Forest Governance:

projects management , monitoring  and command and control forest mechanisms – Also education and health programs

This fund will be managed for and between government and local society in order to result in actions to improve the power of supervision, monitoring and control.p , g

This feature should be added to the government budget already existent for these actions. 

This fund is necessary to ensure, in time (long run), financial resources beyond the current budget for the maintenance and consolidation of governance in the region, free of unforeseen  g gevent on budgets, changes in government priorities and political mood. 

The priorities will be defined en strategic participatoryThe priorities will be defined en strategic participatory  planning process (government and society)

Distribution of Benefits: Proposal for a compensation fund

3. Fund for Private Forestry‐ Incentive the conservation in private lands (legal)

Resources of this fund will be allocated to owners of private forestsResources of this fund will be allocated to owners of private forests (medium and large landowners) or legalized in the process of legalization and who already have registered at SLAPR. g y g

Compensation will be important to ensure a mechanism for the award of not deforest and to conserve the forest as a basis for change in the economic logic and use of land in the region.

Need to be discussed with the social actors involved. 

Based on studies of opportunity costs in the region (cattle, soy, timber)

Opportunity costs

Cattle Soy TimberCattle  Soy  Timber 

Source: Nepstad et al. 2007, Soares et al. 2006, Vera‐Diaz et al. 2007, Merry et al., in press.

Opportunity costs

60 ‐70% of the deforestationdeforestationin the region could be avoided with a opportunity cost i f i t US$inferior to US$ 20/T C

Benefits Distribution MechanismBenefits Distribution Mechanism Compensation forCompensation for reductions

Market

Forest Peoples' Fund Fund for Private Forestry Government Fund –Forest Peoples  Fund  yForest Governance

Demonstrated  reduction

Distribution MechanismDistribution Mechanism

• One must also define the criteria related to when and the quantity each fund should q yreceive. 

• The initial proposal is that based on studies in• The initial proposal is that, based on studies in the Brazilian Amazon (Nepstad et al. 2008), h h ( ) f h fshow that most (> 50%) of the funds received should be allocated in the People of the Forest Fund

Support Mechanisms for RED in the Xingu

Governance Tools:• Ecological Economic Zoning Xingu Basin: Social and economical potentials and socio environmentaleconomical potentials and socio environmental vulnerabilities;

Legalization of land (including the possibility of compensationLegalization of land (including the possibility of compensation and reduction of legal reserve), the guarantee of indigenous lands and extractive reserves and the planning and limitation expansion of livestock and agribusiness.• Socio Register / Register of Social Environmental C it t l t i t f ti hCommitment: voluntary registry of properties whose owners have a commitment to improve the "social environmental performance" of their properties.performance  of their properties.

Support Mechanism for RED in the Xingu

• 1.5 million hectares of land registered, largely located within the headwaters of the Xingu River.

• The produces that areThe produces that are part of the registry  ought to receive oug o ece ebenefits from the programp g

Geo‐ referenciated  Registry of properties 

Current – Situation 2005 Following restoration – Forestry code 2035  (80%)Source: C.Stickler

Support Mechanism for RED in the Xingu

SLAPR I t f th Si t d Li i t• SLAPR. Improvement of the Sistema de LicenciamentoAmbiental de Propriedades Rurais (Environmental Licensing System of rural Properties )g y p )

• Official registry of rural properties (forestry code)• Current Forestry code:ya) Legal reserve of Foresty = 80% legal reserve (Forestry 

Amazon Region) ; 35% legal reserve (Cerrado )of the property where the native vegetation should beproperty  where the native vegetation should be protected or reforested 

b) Riparian Foresty = 100% permanent protectionb) Riparian Foresty  ...100% permanent protection areas (riparian zone); vegetation which protects  the adjacent of rivers, creeks, headwaters... Etc.

Registered rural properties in the Environmental Licensing SystemEnvironmental Licensing System

Simulating Forest Cover

Reduce Legal Reserve

Current Forest CodeBusiness as UsualInitial

2005 2035 2035 2035

104,386 km2

14,462 km245,246 km2

3988 km296,898 km2

10,409 km289,208 km2

9698 km2

Source: C. Stickler, 

Simulating Carbon StocksReduce Legal

ReserveCurrent Forest

CodeBusiness as UsualInitial

2005 2035 2035 2035

735 MtC 337 MtC 769 MtC 647 MtC

+318 MtC+84 MtC

+264 MtC+16 MtCSource: C. Stickler, 

National and sub National articulation Schemes 

i l l f d i f d f i i• National Plan of Reductions of deforestation in the Amazon (PPCDAM) – Action Plan on prevention and control of deforestation

• National Plan on Climate Change (dec. 2008)g ( )• State Plans of reduction of deforestation : conditions established in order to theconditions established in order to the Amazonian states participate in the decisions of the Amazon Fund and the use theof the Amazon Fund and the use the resources.

Brazilian Amazon DeforestationBrazilian Amazon Deforestationear

Km²/Ye

Years

Policy of reduction of deforestationyNational Plan

(Baseline, target, priorities $$priorities,  $$, 

registry system C (?)

P

Amazon Fund

State action Plan of reduction of deforestation 

Program orProject

(strategies, targets , acctions , $$) 

Xingu  Social b

Program orprojects

Carbon program (proposal) Forestry 

people Fundpeople Fund 

Forestry Governance  Private 

Fundforest  Fund

Base Line and MonitoringBase Line and Monitoring

• Historic Base Line:

• Ex‐Post: average from 2000 to 2007 1950 Km²/year

Base LineBase Line

• Modeling Scenarios ‘’ex Ante’’ SimAmazonia 2

• Deforestation (red) in year 2050 as simulated under2050 as simulated under business‐as‐usual scenario. 

• BAU Scenario: Deforested: illi ²2.7 million Km², Forest: 3,2 

million Km², non‐ forest: 1.5 million km²

• 16 Pg (billion tons) of carbon emissions to thecarbon emissions to the atmosphere

Source: Soares‐Filho et al. 2006 

P i ã d C á iPrevisão do Cenário:

(Mais do Mesmo)( )BAU

BAU até 2030

Monitoring and ValidationMonitoring and Validation

• National Institute of Spatial researches ‐ Instituto Nacional de Pesquisas Espaciales ‐ INPEde Pesquisas Espaciales  INPE

• a) PRODES PROJECT – Satellite Monitoring the Amazon Forest b) DETER – Program of deforestation detection in real time (15‐ 15 days)time (15 15 days)

• c) DEGRAD – Detection system of forest degradation

• Scientific Committee  of the Amazon Fund or a Specific comities to the Program and acomities to the Program and a external certification.

GovernanceGovernance

i i i h h i i i f ll• Executive committees with the participation of all stakeholders

• Indigenous peoples• Small farmers• Medium and large Agro‐ Producers• National and Local NGO’s• National and Local NGO s• UniversitiesCi il i i G l• Civil society in General

• Municipalities and States

Finance MechanismFinance Mechanism

• Voluntary Market

• Private donationsPrivate donations

• Amazon Fund

• CDM  of riparian forest areas

• Public incentivesPublic incentives

• Carbon market – mandatory  (pos‐2012?)

TargetsTargetsh b d fi d d i d• The targets must be defined and negotiated with the stakeholders

• The 1st proposal in the first meetings between the partners of the executive committee pdiscussed a reduction of deforestation of 5% of the average between 1990 and 2007 (in the g (nest 15 years)

• Recover all the riparian vegetation from the• Recover all the riparian vegetation from the headwaters of Xingu

Social Capital

Civil society

E tEntrepreneurs

Source: C. Stickler, 

Main challengesMain challenges • Direct engagement and approval of the opportunity by the 

local actors/ stakeholders

d h h h l f h• Synergy and coherence with the singular actions of the different actors in the region

F i B fi di ib i i ki i h• Fair Benefit distribution regimes, taking into account the direct involved stakeholders and also the local and regional governmentsgovernments

• Define with precision a base line taking into account different situations (protected areas private landsdifferent situations (protected areas, private lands, indigenous lands…) Baselines Ex‐post and ex‐ante

• Articulate the Xingu initiative with the state and federalArticulate the Xingu initiative with the state and federal planning

Thank you for your attentionThank you for your attention...

Flávia Gabriela Oyo França – Env. EngineerClimate Change Program ‐ IPAMg gflaviagabriela@ipam.org.br

www climaedesmatamento org brwww.climaedesmatamento.org.br

Acknowledgments

• Instituto de Pesquisa Ambiental da Amazônia ‐ IPAM

• The Woods Hole Research Center ‐WHRC

• UFMG