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Institutional Mechanisms for REDD+ - Case Studies Working Paper

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� Risk of de<strong>for</strong>estation;<br />

� Proportion of indigenous population in the area;<br />

� Women‘s participation in the project; and<br />

� The capacity of the applicants to organize themselves and execute the project.<br />

Once the participants are selected, and if it is not available already, the boundaries of the area entering into<br />

the contract are delineated and geo-referenced <strong>for</strong> monitoring purposes. Per<strong>for</strong>mance is monitored using a<br />

combination of remote sensing and Geographic In<strong>for</strong>mation Systems (GIS) analysis to detect changes in<br />

<strong>for</strong>est cover coupled with occasional audits in the field. If de<strong>for</strong>estation is detected, the payment can be<br />

suspended <strong>for</strong> the year or the remainder of the contract if it is determined that the owner/community did not<br />

meet the terms of the contract. At the end of the five-year term, there is a possibility to renew the contract.<br />

The program also promotes ef<strong>for</strong>ts to secure matching funds to support local concurrent PES systems<br />

(CONAFOR, 2010). 7<br />

Overview of key institutions and actors:<br />

� CONAFOR manages the system, monitors per<strong>for</strong>mance, and raises matching funds.<br />

� The PES National Technical Committee is comprised of stakeholders from universities and research<br />

institutions, private sector, government, and civil society actors. They are responsible <strong>for</strong> selecting the<br />

proposals to participate in the program. The Technical Committee has the authority to demand<br />

compliance with the agreement and to cancel the agreement if the communities do not fulfill the terms<br />

(Government of México, 2010).<br />

� The PES Consultative Technical Committee is comprised of stakeholders from academia, the private sector,<br />

government, and civil society. It provides guidance and advice on matters related to the operating rules<br />

and eligible areas. 8<br />

� Communities, ejidos, and individual landowners commit to maintaining the <strong>for</strong>est cover of areas under contract<br />

through fire control activities, prevention of illegal logging, and implementation of <strong>for</strong>est management<br />

practices.<br />

� Intermediaries include <strong>for</strong>est technicians, NGOs and private consulting firms. Intermediaries play a key role<br />

helping communities to prepare the applications and contracts and develop and implement the projects.<br />

Intermediaries are hired by the communities and the fees and terms of these contracts are not regulated<br />

by CONAFOR. However, intermediaries are required to be registered with CONAFOR. The agency<br />

offers general guidelines as well as suggested fees. For the winning projects, CONAFOR includes<br />

additional funds to cover these services.<br />

� Other actors include those that contribute to PES matching funds (see below), local governments<br />

(including state government, municipalities, and city governments), NGOs, individuals, the private sector,<br />

and foundations and international cooperation funds.<br />

Funding sources:<br />

7 Interviews with Paola Bauche, José María Michel, Sofia Magdalena Garcia Sanchez and Victor Hugo Martinez Cíntora (CONAFOR).<br />

8 Torres-Gonzalez, J. El programa de pago por servicios ambientales en México. Presentation; Gobierno de México.<br />

6 PRRGP INSTITUTIONAL MECHANISMS FOR REDD: CASE STUDIES – WORKING PAPER

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