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Guide on Climate Change and Indigenous Peoples

Guide on Climate Change and Indigenous Peoples

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What are the key issues beingnegotiated in REDD+?• Funding mechanisms – How toensure that funding is d<strong>on</strong>e asustainable basis for REDD. Is thisthrough private (market-basedapproach or a KP-type marketmechanism designed to create“tradeable emissi<strong>on</strong>s units”) orpublic funding (fund-based approachpaid to developing countries that meet performance objectives) or acombinati<strong>on</strong> of both (hybrid approach)? Should REDD be included inthe offset or carb<strong>on</strong> market? Public funds for REDDshould be in additi<strong>on</strong> toIRF - Internati<strong>on</strong>alREDD Fundexisting ODA (OfficialDevelopment Assistance)Funds. Compensati<strong>on</strong> forREDD should be biggerthan the opportunity cost of deforestati<strong>on</strong> <strong>and</strong>degradati<strong>on</strong>. If opportunity costs for deforestati<strong>on</strong> are bigger, then therewill be more incentives to deforest, leading to the failure of REDD.In Accra, a proposal was madefor the establishment of anInternati<strong>on</strong>al REDD Fund (IRF)to be managed by the UNFCCC.Funds can come from voluntaryc<strong>on</strong>tributi<strong>on</strong>s <strong>and</strong> n<strong>on</strong>-offsetmarket arrangements.It stressed that a n<strong>on</strong>-offset IRFshould not draw <strong>on</strong> existingODA <strong>and</strong> will not divest l<strong>and</strong>ownership to the internati<strong>on</strong>almarket <strong>and</strong> buyers.• Beneficiaries of funds/compensati<strong>on</strong> <strong>and</strong>participati<strong>on</strong>: How to ensurethat funds for REDD will reachthe real target groups <strong>and</strong> thatthey will c<strong>on</strong>tinue to c<strong>on</strong>servethe forests <strong>and</strong> not be pushed toAAU - AssignedAllowable Units.IRF’s Incentive package shouldinclude funding for capacitybuilding (readiness not <strong>on</strong>ly ofgovernments but also of theindigenous peoples <strong>and</strong> otherforest dwellers) <strong>and</strong> technologydevelopment <strong>and</strong> transfer for:• establishing baselines• forest management <strong>and</strong>m<strong>on</strong>itoring• assisting governance(including recogniti<strong>on</strong> <strong>and</strong>c<strong>on</strong>tinuing practice ofindigenous peoples’ forestgovernance <strong>and</strong> managementsystems)• support for related ec<strong>on</strong>omicdevelopment activities (e.g.,agro-forestry) <strong>and</strong> for pilotprojects.92 <str<strong>on</strong>g>Guide</str<strong>on</strong>g> <strong>on</strong> <strong>Climate</strong> <strong>Change</strong> <strong>and</strong> <strong>Indigenous</strong> <strong>Peoples</strong>

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