VCS Jurisdictional and Nested REDD+ (JNR) Framework - GCF

VCS Jurisdictional and Nested REDD+(JNR) FrameworkGCF Taskforce Annual MeetingPuerto Maldonado, PeruOctober 2 nd , 201310/8/2013Summer Montacute, REDD+ Coordinator, VCSA

Outline1. Need for Jurisdictional and Nested REDD+ (JNR)2. Development of VCS JNR Framework3. JNR Overview4. Piloting the JNR

1. Need for Jurisdictional and Nested REDD+

Problematic Situation• Uncertainty of future international REDD+ climatepolicies exacerbated by a lack of confidence in howREDD+ accounting can work effectively under marketand/or results-based mechanisms• Lack of guidance and frameworks on how governmentscan robustly and transparently account for and verifyemission reductions/removals generated across ajurisdiction• Gap between REDD+ project activities and REDD+policies and programs directed by governments; Noguidelines on how the two levels can be effectivelyintegrated, often resulting in friction and compromisedatmospheric integrity

VCS Jurisdictional & Nested REDD+• JNR provides a robust framework for accounting ofjurisdictional REDD+ emissions and reductions First global framework for accounting and creditingjurisdictional REDD+ programs Allows for significant flexibility to facilitate use by a varietyof jurisdictions; allowing customization/innovation whilemaintaining robust accounting Enables rewarding/crediting of REDD+ activities at multiplelevels (project, state/province and national) Where desired, creates a pathway for projects orsubnational jurisdictions to “nest” within larger scalejurisdictional programs

Why Jurisdictional and Nested REDD+?• Increases scale and ensures alignment between national/subnational/project levels: Provides environmental integrity, full leakage accounting,and ensures emission reductions ‘add up’ across entirejurisdiction Can drive REDD+ through policies, programs and projectactivities Increases emissions reduction potential (volumes), andopportunity to harmonize market and public funding streams Ensures fungibility of credits across sectors, geographiesand scales – majority of international REDD+ projects arealready using VCS• May increase funding availability for REDD+implementation

2. Development of VCS JNR

JNR ProcessDevelopment funded by CLUAQ1 2011: Advisory (AC) and Technical Expert (TE) Committees convenedOct 2011: Technical Recommendations releasedNov-Jan 2012: Review by AC, TE and Peer group, and revision ofrecommendationsFeb 2012: Updated Technical Recommendations released, based on peerreview and other inputMar-May 2012: Additional input from AC, TE and pilot jurisdictions andorganizations (including Acre, Amazonas, DRC, Laos, Peru; NGOs CI, TNC,FFI; GIZ and WB), VCS requirements draftedMay 2012: Draft VCS requirements issued for public consultationJune-Aug 2012: Revisions based on public consultation, AFOLU SteeringCommittee review, Final revisionsOct 2012: Release of final JNR requirements (the standard)Oct 2013: Release of supporting JNR tools/templates, including nonpermanenceand leakage tools2013 onwards: Piloting in key jurisdictions

Participant ProcessSecretariatVCSA, CI,Climate FocusPeer Reviewand PublicConsultationAdvisory Committee23 representatives fromgovernment, NGOs andprivate sector.Technical Committee14 experts from researchinstitutions, NGOs andprivate sector.

3. JNR Overview

JNR Scenarios

Nested Accounting and CreditingInternationalincentives for REDD+1Nationalgovernment42Sub-nationalgovernments563ProjectsSource: CDI (2012)

JNR Framework• Requirements cover technical issues such as:Defining boundaries (geographic and program boundaries)Developing and nesting baselines (inc. scope, pools, additionality,updating)‘Grandparenting’ (providing time for projects and lower-level jurisdictionsto transition into national/sub-national programs)LeakageMonitoringPayments/Crediting (inc. timing, preventing double counting)Reversals and natural disturbance (inc. crediting implications in nesting)• Requirements also cover other issues such as:Legal issues (right of use)SafeguardsApprovals (eg, by higher jurisdictional levels)

4. Piloting the JNR

JNR Piloting• Provide support to interested pilot jurisdictions in Latin America, Africa andAsia• Funding from Norad/NICFI (Norway) for piloting JNR in:• Acre, Brazil• Costa Rica• Madre de Dios, Peru• San Martin, Peru• Mai Ndombe, DRC• Funding from GIZ (Germany) for piloting JNR in:• Amazonas, Brazil

Jurisdictions considering JNR…• Chile• Guatemala• Ecuador• Mexico• Colombia• Laos• Cambodia• Indonesia• Vietnam• Nigeria• Ethiopia• Ghana• Uganda• Kenya• Etc…

Piloting Process• Gap assessment• Based on above, work plan developed toguide implementation of REDD+ program inline with JNR• Goal of registration of baseline, and in manycases, entire REDD+ program includingverification and issuance of credits(depending on needs)

Anticipated JNR Piloting Outcomes• Improve “readiness” of countries to participate in REDD+results-based frameworks (market or fund based)• Better understand the potential technical and capacity gapsfor jurisdictional accounting, and promote solutions• Identify and harmonize common pathways between pilotsand facilitate cross-learning• Demonstrate how private and public finance and activity canbe integrated within the jurisdictional context• Generate lessons learned to improve the JNR Requirementsand inform a future regulatory frameworks (incl. regional,domestic and UNFCCC)• Build confidence in REDD+ for policy makers, donors andinvestors, and drive finance to leading jurisdictions

Demand for Jurisdictional Credits (or payments)• Attract new public and private finance to supportREDD+ at multiple scales Potential acceptance by emerging regulatory (eg, CA,Australia) and voluntary markets (eg, Chile, CostaRica, Colombia, Brazil (Rio/Sao Paulo States)) Potential recognition by bilateral and multilateral payfor performance initiatives – Forest CarbonPartnership Facility (FCPF), Japanese Joint (BilateralOffset) Crediting Mechanism, etc. Serve as a bridge from public to private financing, toallow REDD+ to access multiple sources of marketand non-market demand

Forthcoming JNR documentation• The following additional VCS documents, templates andtools will be released in October: Validation/verification processRegistration and Issuance processJurisdictional Program Description (JPD) and Jurisdictional BaselineDescription (JBD) Jurisdictional representationsTools (developed with support of working groups): Jurisdictional non-permanence risk tool Jurisdictional leakage tool• Future work: Guidance Document, based on lessonslearned from pilot activities, and revisions/updates to JNRRequirements

Thank YouSummer MontacuteREDD+ CoordinatorVCS Associationsmontacute@v-c-s.org

Scenarios in Country XStart with Jurisdictional Specific BaselineNational Baseline(wall-to-wall)LowMediumHighDeforestation(ha/year)January 23 2013

Example: Scenario 1Scenario 1Project Crediting Only• No Jurisdictional Crediting• No Jurisdictional Monitoring (MRV)VCSMRV Results1VCUsIssued2Project Creditingcredits3LowMediumHighDeforestation(ha/year)January 23 2013

Example: Scenario 2Scenario 2Jurisdiction and Project CreditingCredits3VCUsIssued2JurisdictionalCreditingTargetedProvincialMitigationProjectMitigationVCUsIssued2VCSProjectCrediting1MRV ResultsCredits3

Example: Scenario 3Scenario 3Jurisdictional Crediting Only withInternal Allocation SystemProvincialSystem DistributionNonCreditedREDDProjectsVCUsIssuedVCSMRV Results1Jurisdictional2 Crediting4Credits3LowMediumHighDistrictDistributionDeforestation(ha/year)January 23 2013