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Minister of State Greg Barker MP
Speech to the Rights and Resources Institute event on forest
finance
(As delivered at
11th
12th October 2011
RRI Dialogue on Forests, Governance and Climate Change)
Thank you for inviting me to talk to you today. The topic of
this conference, REDD+ finance, is timely. Increasing the
speed of REDD+ finance disbursal needs to be an
international priority. At the same time we need to provide
confidence that long term finance for REDD+ will be
available.
Wangari Maathi
But before I talk about REDD+ finance I would like to start by
paying tribute to Wangari Maathi, who passed away last
month. Dr Maathi understood that which many struggle to
reconcile: social and economic progress can and must go
hand in hand with environmental protection.
The Green Belt Movement, which she founded, has planted
an
estimated
45
million
trees
around
Kenya.
This
achievement is all the more remarkable as it created rural
jobs and offered women an opportunity to develop new skills.
This is genuine green growth in action.
Her vision, persistence and determination to make progress
in the face of opposition, inspired those she met. And as a
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result
her
legacy
will
go
far
beyond
her
own
accomplishments.
Forest transition
The opposition that Dr Maathi encountered is part of a larger
picture. History tells us that as countries develop they cut
down their forests to make way for agricultural and industrial
expansion. Later in the development cycle deforestation
slows, plateaus and decreases as social priorities evolve.
Immediate concerns about food, shelter and security make
way for longer term worries, including environmental ones.
Cross Roads
Today, many developed countries have gone through this
cycle. They have stable or increasing, albeit low, forest
cover. Many developing countries however are in varying
stages of the transition. And there is a choice to be made:
business as usual or a new, low-deforestation development
pathway.
Forests support 1.2 billion of the world’s poorest people and
harbour over 80% of terrestrial biodiversity. Deforestation
results in about 17% of global GHG emissions. Whilst the
value of the services provided by forests may not always be
captured in the market, that does not mean the markets do
not rely on them. They do, and Governments are starting to
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realise that the only real development is sustainable
development.
General plan/Forest finance
The good news is that we are making progress. In Cancun
we agreed a framework for a REDD+ mechanism and we will
develop design guidelines for key elements of that
mechanism at Durban.
We have developed FLEG-T agreements and supported
work
on
sustainable
commodities
to
ensure
that
unsustainable or illegal commodities do not undermine
sustainable and legal ones.
There is a clear direction of travel. Deforestation is going
down. But not fast enough.
Improving short-term finance disbursal
On REDD+ finance, money has not been disbursed as fast
as we would have liked. Only a fraction of the $4.5 billion or
so committed for REDD+ has been delivered. We need to
speed things up for example by harmonising indicators by
which REDD+ projects are assessed. And by agreeing in
Durban to robust design guidelines for forest monitoring
systems and reference levels against which progress on
REDD+ will be measured.
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Forest countries will need to act quickly to create these
systems.
Once set up these will open the door to large scale finance
transfers for measured reductions in deforestation.
Donors need realise traditional project- based aid is too slow.
Strategic interventions are needed.
There is also an onus on forest countries to demonstrate
cross government support for the reforms needed to make
REDD+ a reality.
Long term finance signal
Speeding up disbursal is an immediate concern. But we also
need to build confidence that REDD+ finance will be
available in the long term. We can do this by making
progress on the wider discussions on long term climate
finance.
The AGF report showed that developed countries can meet
the goal of mobilising $100bn a year by 2020. It’s not easy.
But it can be done. The focus for this year is on increasing
lending from multi lateral development banks, working with
international transport systems and leveraging private sector
finance. We’re working through bodies like the G20 to make
things happen.
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There is regular discussion about including REDD+ in the
international carbon markets to harness private sector
investment. This may indeed be an option in the future.
But more work needs to be done to determine the
preconditions that would need to be met to make it possible.
We must be aware that such an approach may incentivise
unfair allocation of land tenure. However if implemented
correctly REDD+ can act as a trigger to resolve land tenure
conflicts.
Securing land tenure can provide those with limited means
with enduring natural assets which they can improve and
bequeath to subsequent generations. This approach to
poverty alleviation contradicts those who say the poor face a
choice between higher incomes and a better environment.
This is a false choice.
UK REDD+ finance
In addressing the gap in funding for REDD+, the UK is
playing its part. Since I spoke to you last, an independent
review has been published on the options for how we can
best direct UK finance for forests. Many of you have read the
review and commented either at events organised by UK
officials or on the DECC blog. Thank you all for your advice
and help so far. It is much appreciated.
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We agree with the thrust of the review: that increased
finance for the multilateral funds should be complemented
with strategic bilateral partnerships, and a focus on working
with the private sector. We are looking to create a balanced
portfolio covering countries in different regions and at
different stages of development.
We are now scoping out the options in more detail: starting
with the countries identified as priorities in the PWC report.
However we will not limit ourselves to these if transformative
opportunities offer themselves elsewhere. We are still at the
start of the process and decisions have yet been made..
We will be looking to engage with all interested parties
throughout the development of our programme.
Addressing drivers through work with commodity supply
chains
Regardless of whether or not REDD+ enters the carbon
market, securing fair land tenure must be the foundation of
REDD. Not just for ethical reasons, but because it is crucial
in attracting private sector investment. No matter how much
REDD+ finance we raise and deliver, it will be ineffective
unless it addresses the underlying drivers of deforestation.
Growing and developing populations are increasing the
demand for agricultural products and hence land. Without
strategic investments and legal reforms in forest countries
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REDD+ finance will struggle to outcompete the financial
incentives created by this demand.
Any REDD+ programme must operate in collaboration with
the key supply chain and agri-business companies to reform
supply chains.
Companies such as Unilever are pushing the envelope in
this area with their commitment to remove all unsustainable
palm oil from the supply chain by 2015. This could be
interpreted as a great act of corporate responsibility. But
perhaps it fits better into what Paul Polman, Unilever’s CEO,
would call long-term capitalism.
Donors need to work with other companies that use
commodities such as palm oil, beef or soy in their supply
chains so that they too can set similar targets.
Prospects for Rio+20
Looking forward, next year world leaders will meet in Rio to
push forward the agenda on sustainable development. Such
events occur few times in our working lives. So we must
seize this opportunity to drive our work on forests forward.
To increase the disbursal of REDD+ finance. To offer
confidence in the availability of longer term REDD+ finance.
To combine efforts on REDD+ with private sector supply
chain initiatives. If we manage it well we can orchestrate a
perfect storm of incentives.
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Governments need to step up. Companies need to step up.
NGOs need to step up.
The challenges we face are not new but we must be the
ones to solve them.