DR. DODIK RIDHO NURROCHMAT INSTITUTE OF FOREST POLICY & ECONOMICS FACULTY OF FORESTRY BOGOR AGRICULTURAL UNIVERSITY KOICA-FORDA-CIFOR REDD+ WORKSHOP: “FINDING EFFECTIVE WAYS TO IMPLEMENT REDD+ IN LOMBOK” 21-22 June, 2011 ,The SantosaVillasand Resort, Senggigi, Lombok
23
Embed
DR. DODIK RIDHO NURROCHMAT - forda-mof.org Payment Mechanism.pdf · dr. dodik ridho nurrochmat institute of forest policy & economics faculty of forestry bogor agricultural university
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
DR. DODIK RIDHO NURROCHMATINSTITUTE OF FOREST POLICY & ECONOMICSFACULTY OF FORESTRYBOGOR AGRICULTURAL UNIVERSITY
KOICA-FORDA-CIFOR REDD+ WORKSHOP:“FINDING EFFECTIVE WAYS TO IMPLEMENT REDD+ IN LOMBOK”21-22 June, 2011 ,The SantosaVillas and Resort, Senggigi, Lombok
ROAD TO LOW EMISSION DEVELOPMENT
2005
• MONTREAL
• COP-11
2007
• BALI
• COP-13
2009
• COPENHAGEN
• COP-15
2010
• CANCUN
• COP-16
LOW EMISSION SCHEMES?
2012END OF KYOTO
PROTOCOL
RED
REDD
CDM
REDD+
REDD++� included forest conversion
(agriculture, estate, mining, etc.)
Source: adapted from Lasco, RD in Rodel (2009); DNPI (2010)
FORESTS & CARBON SCHEMESFORESTS & CARBON SCHEMES
Changing Actions Actions
� PES (PAYMENT FOR ENVIRONMENTAL SERVICES)
� LR (LIABILITY RULES), PPP (POLLUTERS PAY PRINCIPLE)
� PDR (PURCHASING DEVELOPMENT RIGHT)
Payment Environmental Services (PES):� (a) a voluntary transaction where� (b) a well-defined environmental service� (c) is being “bought” by a service buyer� (d) from a service provider� (e) if and only if the service provider secures
service provision
Wunder (2005) in Engel et al. (2008)
KEYWORD: ENVIRONMENTAL SERVICES
CONVERSIONVALUE
CONSERVATIONVALUE
CONSERVATIONVALUE + PES
Sources: Pagiola & Platais (2007): Engel et al. (2008)
� Liability Rule related to the rule of payment by responsible party. This rule has been widely accepted and in industrial communities this concept are often called as “polluter pays principle (PPP)”.
KEYWORD: POLLUTER PAYS
Method of Protection of Entitlement
Property Rule Liability Rule
Holder of Entitlem
ent
Plaintiff [1]
Injunction Against Pollution
[2] Pollution Allowed,
Compensation Awarded to Plaintiff
Defen
dan
t [3] Pollution Allowed, No Compensation
Awarded
[4] Injunction Against
Pollution, Compensation Awarded to Defendant
CARBON OFFSET
REDD
Adapted from Krauss (1999)
� PDR programs might be suggested when government (or
other parties) alarmed at the loss of certain function of lands
(forests, farms, etc.) and the government (or other parties)
funded the acquisition and retirement of development rights
in order to preserve those lands in perpetuity.
� Through PDR programs, the government (public, or other
parties) provides a cash payment to a landowner for the value
of the development rights associated with a land parcel. The
owner still owns the land, but is compensated for
relinquishing the right to develop it.Source: Stein et al. (2001)
KEYWORD: DEVELOPMENT RIGHT
� The cost for preservation,� Development pressures on the land,� Productivity for agricultural and other economic
uses,� The condition of the land in general,� Environmental and cultural benefits of
preservation,� Proximity to other preserved lands,� Amount and value of preserved lands� Leverage of matching funds coming from other
funding entities.Source: Stein et al. (2001)
1. ACTORS & PROPONENTS2. SALE & PURCHASE TERMS3. PROJECT DEVELOPMENT &
IMPLEMENTATION4. COSTS & TAXES5. DEFAULTS & REMEDIES6. GENERAL PROVISIONS
� Seller� Buyer� Location� Type of schemes (i.e. AR-CDM, REDD, etc.)� Other parties (related stakeholders and their
positions)
Source: ERPA, UNDP
� Volume� Delivery date(s)� Transfer of legal title = VERY IMPORTANT� Length and number of Verification Periods � Payment (timing and method) = VERY
IMPORTANT� Currency� Option to purchase additional creditsSource: ERPA, UNDP
� Responsibility for project implementation (validation, registration)