The Role of Sustainable Land Management for Climate ... - CAADP
The Role of Sustainable Land Management for Climate ... - CAADP
The Role of Sustainable Land Management for Climate ... - CAADP
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de<strong>for</strong>estation rates based on some kind <strong>of</strong> model, although how well this will represent the<br />
counterfactual will not be observable, so concerns about arbitrariness <strong>of</strong> the payments and their<br />
impacts will remain.<br />
Another political and moral concern relates to the fairness <strong>of</strong> the distribution <strong>of</strong> REDD<br />
payments. Countries that have made ef<strong>for</strong>ts to reduce their de<strong>for</strong>estation rates in the past may<br />
see little benefit from a REDD payment scheme, while countries that have caused high<br />
de<strong>for</strong>estation rates through poor or uncaring policies may receive high payments. 13 Many may<br />
regard such a scheme as unfair, even if the adverse incentives problem can be avoided. This<br />
concern is why several <strong>of</strong> the proposals made to date <strong>for</strong> REDD payment schemes incorporate<br />
some kind <strong>of</strong> distributional mechanism. Such distributional payments, while helping to assure<br />
the political feasibility <strong>of</strong> a scheme, do nothing to reduce emissions and hence reduce the cost<br />
effectiveness <strong>of</strong> the scheme.<br />
<strong>The</strong> possibility <strong>of</strong> leakages is another serious challenge, especially if payments are made<br />
<strong>for</strong> projects in sub-national regions or in small countries. Payments to reduce de<strong>for</strong>estation and<br />
degradation in one location may result in shifting the location <strong>of</strong> de<strong>for</strong>estation and degradation to<br />
another location, whether it is elsewhere in the same country or in other countries. To help<br />
address this problem, it may work better to make payments <strong>for</strong> REDD in larger geographical<br />
units, whether nations or even supra-national units, especially among small neighboring <strong>for</strong>ested<br />
countries (<strong>for</strong> example, in Central America). However, making REDD payments to larger<br />
geographical and political units may undermine the goal <strong>of</strong> using such payments to help improve<br />
the livelihoods <strong>of</strong> poor people (more on this below). Furthermore, leakages can still occur even<br />
between countries or continents that are distant from each other. To the extent that such<br />
payments are effective in increasing the prices <strong>of</strong> <strong>for</strong>est products or other products that are<br />
promoted by de<strong>for</strong>estation (<strong>for</strong> example, cattle in Latin America), market level effects may cause<br />
leakages even to areas far away from where REDD payments are applied. For example, if<br />
REDD payments cause the price <strong>of</strong> Brazilian cattle to increase as a result <strong>of</strong> reduced <strong>for</strong>est land<br />
available <strong>for</strong> ranching, cattle ranching <strong>for</strong> export markets may shift to other countries or<br />
continents, possibly contributing to increased de<strong>for</strong>estation in those locations.<br />
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13 Of course, this criticism also can be applied to payments <strong>for</strong> emissions reductions through other types <strong>of</strong> projects,<br />
such as energy projects; i.e., countries that have polluted more in the past qualify <strong>for</strong> larger payments.!<br />
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