Inception Report - REDD Implementation Center

For the REDD-Forestry and Climate Change Cell

Ministry of Forests and Soil Conservation, Babarmahal, Kathmandu, Nepal

FCPF/REDD/S/QCBS-20:

Development of REDD+ Strategy for Nepal

Draft Inception Report

Main Authors: Dhruba Acharya, Dilli Raj Khanal, Hari Prasad Bhattarai , Eveline Trines

Contributing Authors: Wouter van Goor and Kars Riemer

Face the Future, The Netherlands

In association with Arbonaut, Finland; Practical Solution Consultancy Nepal (PSPL) and Nepal

Environmental and Scientific Services (NESS)

Amsterdam, 4 July 2014

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Inception Report FCPF/REDD/S/QCBS-20

Project Title:

Project Number:

Country:

WB Consultant:

Contact person:

Phone:

Email:

Development of REDD+ Strategy for Nepal

FCPF/REDD/S/QCBS-20

Nepal

The Consortium:

Face the Future B.V., The Netherlands

Oy Arbonaut, Finland

The Nepal Environmental and Scientific Services P. Ltd., Nepal

Practical Solution Consultancy P. Ltd., Nepal

Eveline Trines

+31 612 47 47 41

Eveline.Trines@Scope14.com

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Table of Contents

1 Introduction ...................................................................................................................................4

1.1 Description of the assignment ................................................................................................ 4

1.2 Milestones to date .................................................................................................................. 5

1.3 Inception report structure ....................................................................................................... 5

2 Strategic Approach .........................................................................................................................6

2.1 General issues .......................................................................................................................... 6

2.2 Steps along the way................................................................................................................. 8

3 Methodology ............................................................................................................................... 10

3.1 WP 1: Inception ..................................................................................................................... 10

3.2 WP 2: Identification, validation and prioritisation of Drivers of Deforestation and Forest

Degradation, Strategy options and intervention activities. .............................................................. 10

3.3 WP 3-Implementation approach for the REDD+ strategy ..................................................... 19

3.4 WP 4: Role of non-forest sector in REDD+ implementation ................................................. 24

3.5 WP 5: Role of local communities in REDD+ activities ........................................................... 27

3.6 WP6: Elaboration of the REDD+ Strategy Report .................................................................. 32

4 Relationship between the Work Package and the Framework Structure for the REDD+ Strategy33

5 Expected outputs ........................................................................................................................ 42

6 Planning ....................................................................................................................................... 43

REDD-Forestry and Climate Change Cell ............................................................................................... 46

Annex 1: References .............................................................................................................................. 47

Annex 2: “Consolidated framework structure for National REDD-plus Strategy of Nepal” .................. 49

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1 Introduction

1.1

Description of the assignment

Nepal is implementing a series of activities as stipulated in the Readiness Preparation Proposal (RPP) to prepare itself for a REDD+ (Reducing Emissions from Deforestation and Forest Degradation) mechanism to harness potential benefits of REDD+ implementation in future. Nepal believes that participation in the international REDD+ mechanism has potential to generate carbon revenues as well as non-carbon benefits for the country. Nepal further envisions that REDD+ implementation will assist in advancing sustainable forest management, the integral design of various sectoral policies that optimise cross-sectoral synergies, and will lead ultimately to an improvement of forest law enforcement and governance at large. A sound REDD+ architecture will also help in achieving Nepal's obligation to contribute to global low carbon emission development pathways and the global sustainable development agenda.

The Forest Carbon Partnership Facility (FCPF) and bilateral/multilateral donors are supporting Nepal to prepare itself for the participation in a future international "REDD+ mechanisms". The objective of

Nepal's REDD+ Readiness is to participate in the REDD+ process and benefit from the potentially emerging performance-based payment systems for REDD+ within the context of the UN Framework

Convention on Climate Change (UNFCCC). lt is the intend that performance-based payments

(compensation of a reduction of emissions and/or enhancement/enlargement of the sink capacity) will be based on sound social and environmental policies, plans and programs to address drivers of deforestation and forest degradation so that GHG emissions can be significantly reduced through biological sequestration of carbon with reference to a credible and marketable reference emission level (REL)and/or Reference Level (RL). There have been deep concerns however, regarding the methodological robustness in establishing national REL/RL; and, Monitoring and Measuring,

Reporting and Verification (MRV) systems. Besides that, appropriate policies and institutions are also critical to facilitate the implementation of REDD+ measures successfully. Therefore, a comprehensive national REDD strategy is needed to support in developing appropriate policies, the required institutional framework, honour the UNFCCC-prescribed “Safeguards” (see below), and design proper implementation modalities for REDD+ in Nepal.

The purpose of the REDD+ strategy is to guide the development of a set of policies and programs for addressing the drivers of deforestation and forest degradation and improving the carbon sink capacity of the forest. The strategy will be developed in line with the principle of the sustainable development objectives of Nepal in general and with the national forestry sector vision - forests for prosperity in particular.

The general objective of this assignment is to develop REDD+ Strategy for Nepal, as guided by the framework attached in Annex A of the ToR (dated January 2014).

Expected output

The REDD Cell expects to receive a well referenced and comprehensive report on REDD+ Strategy, in the format given in Annex A of the ToR. The report should be acceptable to all key REDD+ stakeholders including bilateral and multilateral donors and other climate finance instruments for making decision on investment in REDD in Nepal.

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1.2

Milestones to date

The following milestones have been achieved by the Consortium to date, including the contract signing with the Client:

•

•

•

•

An Expression of Interest was written and submitted on February 10, 2014. The Consortium was shortlisted and received a Request for Proposals dated April 2, 2014;

The Consortium constructed a Technical and Financial proposal, which was submitted to the

Client on May 5, 2014;

On June 1, 2014, the Consortium received confirmation that the proposal was selected and the Consortium was invited to attend the contract negotiation meeting held at REDD Cell premises on June 8, 2014; and,

After the successful completion of the contract negotiation, the Contract was signed by the

Client on June 11, 2014, and counter-signed by the Consortium the same day.

A first team meeting is planned for the week from 8-16 July 2014 in Kathmandu.

1.3

Inception report structure

The scope of this report is to give an outline of the approach and strategy that the consortium will deploy, the methodologies that will be applied to execute the tasks ahead, describe the expected results, and provide a more detailed planning of the work.

Chapter 2 describes the strategic approach, with the general approach and different project phases

being identified. Chapter 3 describes the methodological approach for each specific task. Chapter 4

outlines the relationships between the Work Packages and the Framework Structure for the REDD+

Strategy Report. Chapter 5 concerns the expected outcome of the tasks and describes the deliverables. A detailed planning can be found in Chapter 6, listing the identified activities and providing an overview of the expected dates of output delivery, meetings and planned field visits (to the extent that can already be anticipated at this point in time).

Literature references are listed in Annex 1.

Annex 2 contains the Annex A associated with the overall contract and outlines the “Consolidated framework structure for National REDD-plus Strategy of Nepal”.

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2 Strategic Approach

2.1

General issues

Before and since the revised R-PP was generated in 2010, and subsequently been approved, many studies have been performed on the various key subjects that form the groundwork of an effective design and implementation of a national REDD+ policy framework. This has resulted in a vast amount of valuable reports. The REDD Readiness studies that have been performed over the past years (or are currently being executed) all provide key information necessary for the development of a sound

REDD+ implementation Strategy that is suited to the specific national, regional and local conditions and requirements of Nepal, and they will therefore form the foundation for the development of this

REDD+ Strategy report. Also research and studies conducted within ongoing projects and pilot studies and in the area of other, associated non-forestry sectors will be incorporated in the process.

This study will further build on and elaborate these preliminary strategic options by performing extensive national, regional and local stakeholder interviews and consultations, which are discussed in more detail in the specific descriptions of the Work Packages in Chapter 3. The consultations will cover primary and secondary stakeholders amongst government, civil society, community groups and the private sector - at national to local levels.

Important first-hand sources of information during this project will be:



Key stakeholders and experts: o Relevant government departments, working groups (e.g. REDD Working Group and

Stakeholder forum) and experts listed in the R-PP o Other relevant experts, for instance:

 relevant ongoing project-/program managers,

 authors of (scientific) reports, o Stakeholder groups consulted and partner organisations involved in the process of developing the R-PP, ER-PIN, and all studies conducted to date for the REDD Cell in the process of REDD+ Readiness



Stakeholders and experts consulted during the Regional Consultations



Outcome of Participatory Rural Appraisals (PRAs) included in this project.

In addition, the work will connect with ongoing activities and programs that bear relevance to this study. Ongoing programs with which synergies will be pursued include the following:



World Bank (supported) initiatives: o The Bank’s Pilot Program for Climate Resilience (PPCR), o The Poverty Alleviation Fund II (P105860), o The proposed Strengthening of Regional Cooperation on Wildlife Protection Project

(P121210) o The ongoing PROFOR forestry sector ESW (P120509)



Other implementing agencies, donors and support programs: o E.g. . US-AID, DFID, RECOFTC, NORAD, etc.

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

Research Programs, for instance: o The results from the “Kyoto: Think Global, Act Local” project; and, o The IFPRI “Community Forestry Program”



NGO activities, from for instance: o WWF (Hariyo Ban Project) o ICIMOD o ANSAB o CIFOR o SNV o And others.

In addition, a preliminary list of secondary data sources has been identified; sources that the team will assess, and draw and build on from, where possible and appropriate. These include:



The R-PP and reports and materials referred to in the R-PP;



The ER-PIN and reports and materials referred to in the ER-PIN;



The various REDD Readiness study reports, among which: o National study on RL/REL of Nepal o SESA report o Study on Political Economy of Land use in Nepal o Study on the Drivers of Deforestation and Forest Degradation o Study on the Value of the Forests in Nepal o Ongoing work on MRV o Etc.



Data made available in the Resource Centre of the REDD Cell (http://mofsc-redd.gov.np/)



Previous studies in support of the REDD Readiness Preparation Program;



National forest policy, rules and regulations;



Policies from other relevant sectors



National forest inventory data such as the Forest Resource Assessment (DFRS);



Forest outlook studies (MoFSC);



Data from some other ministries in Nepal (regarding ecotourism, national parks and wildlife, hydrology, water regulation, livestock and agriculture as well as urban planning);



Existing reports, material and data produced by relevant organisations, included, but not limited to: USAID, UNDP, DFID, FAO, CIFOR, RECOFTC, ICIMOD, ANSAB, SNV, IGES.

In order to perform the tasks under this study effectively, a clear overview of previous work in the R-

PP process is essential. All existing data from previous stages in the R-PP process should be made readily available by the Client at the beginning of the assignment. Other relevant data, documentation or references to key information and documentation that the Client can provide would speed up the start-up process and early stages of the work considerably.

Other WPs-specific sources of information are cited in chapter 3 itself.

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In order for us to successfully execute this assignment we have identified the following critical subjects on which we are in need of support:





Guidance in stakeholder analysis, secondary data and literature gathering

Facilitate approach and communication with key stakeholders, government departments and communities



Provide feedback on questions, clarification requests



Provide advice on problems that may arise.

The fact that the REDD Cell will appoint a focal officer for this specific trajectory, that will have a

(near) full time commitment to the successful execution and completion of this assignment, will be a major asset, and enhances the channels of communication potentially significantly.

2.2

Steps along the way

The project can be split up in 3 main phases:

1.

The inception phase;

2.

The research and assessment phase; and,

3.

The design, compilation and reporting phase.

2.2.1

The inception phase

In the inception phase the team coordinates all the work and presents the planning of the work to the Client in the inception report. That report is the guiding document throughout the entire project period. It outlines the practical details of how the team intents to implement the approach and methodology as approved by the Client and agree in the contract. Each consortium partner describes the activities that are undertaken in each step along the way, leaving some flexibility of course to adapt to unforeseen circumstances.

This inception report is the end result of that phase.

2.2.2

The research and assessment phase

In this phase the “fieldwork” will be conducted: collecting data and information and assessing not only the literature but also the current situation in Nepal vis-à-vis the forestry sector. If REDD+ is to be implemented successfully, the strategy must be facilitating a transition from where Nepal is at this moment, and where it needs to be, also in terms of institutional design, if it is to implement the

REDD+ strategy and activities successfully. This transition itself will be an integral part of the strategy.

The methodology that will be followed for each of the study areas is elaborated in chapter 3, and the relationship with the sections in the REDD+ Strategy Report is presented in chapter 4..

2.2.3

The design, compilation and reporting phase

Elaborating a good REDD+ Strategy document is virtually comparable to putting together a big puzzle: we know what the end picture must look like, but putting the right pieces in the right spot, and describing how this is to be done, is not a simple task. As we all know forestry is touching on virtually any sector in Nepal (and that is the case in many countries). That also means that working in, or operating the forestry sector cannot be done in isolation: it must be in sync with what is important in other sectors. If, for instance, the timber demand in an area is exceeding the supply, it is

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Inception Report FCPF/REDD/S/QCBS-20 counterproductive to gazette more protected forest areas for tourism for instance in that region, without providing alternative sources of timber supply. The chances of being successful in projecting the forest and stopping the harvesting are fairly slim. The challenge with designing a potentially successful REDD+ strategy is to find ways in meeting everybody’s needs in the best possible combination. All this whilst remaining realistic in what is achievable: there will be trade-offs. But anticipation pitfalls, and avoiding them in the design stage will greatly enhance the chances of success when it comes to implementing the REDD+ Strategy in due course.

As the results of the work performed within the work packages are interlinked and influencing the result of each other, it will be a daunting task to efficiently synthesize and bring all information together but the expectation is that by performing the different tasks in parallel and in close collaboration with all the experts, this will peak not before the last month of the study. However, the write up of the coherent strategy will be a work in progress throughout the project. At least one iteration is foreseen in the programme.

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3 Methodology

1

2

3.1

WP 1: Inception

During the inception phase the fore lying inception report is generated. This report will function as work plan throughout the implementation of the project. The work plan is in support of the elaboration of a draft REDD+ Strategy for submission to the REDD Cell. The objective in general of a

REDD+ Strategy is to facilitate the identification and description of appropriate policies, processes and activities that are associated with REDD+. In this inception report the work plan is laid out how the material will be brought together that will enable the formulation of such a REDD+ Strategy.

3.2

WP 2: Identification, validation and prioritisation of Drivers of Deforestation and

Forest Degradation, Strategy options and intervention activities.

3.2.1

Introduction

The R-PP has identified 9 major drivers of deforestation and forest degradation in Nepal as: High dependency on forest and forest products (timber, firewood and other NTFPs), Illegal harvest of forest products, Unsustainable harvesting practices, Forest fire, Encroachment, Overgrazing,

Infrastructure development, Resettlement, and Expansion of invasive species. However, their thrust, magnitude and effect extensively vary across the physiographic regions of Tarai, Chure and inner

Tarai, Mid Hills, and High Mountains due to variation in bio-physical situation, economical and sociopolitical context and forest-human interactions.

Forests of the Tarai are declining both in area and quality. The deforestation rate was 1.3 percent per year between 1978/79-1990/91 1 , which is still 0.4 percent per year during 1990/91 to 2010/11 2 . Four different management regimes exist: Government-managed forests, Protection Area System,

Community Forest Management and Collaborative Forest Management. An “undeclared policy of removing 4 D trees (Dead, Diseased, Died, and Decayed)” 3 has hampered the management in government-managed forests Community forest hand over is considerably reduced or even halted due to distant user conflict and the collaborative forest management is still in piloting phase being practiced in the 9 Tarai districts.

The deforestation and degradation of forests is more rampant in Chure and inner Tarai over the last few years. The physiological characteristics (fragility, marginality, relatively inaccessibility) and socioeconomic features make Chure and inner Tarai unique and vulnerable. Recently the government of Nepal declared the Chure as Environment Conservation Area and is planning to implement integrated environment conservation program.

The forests in the Mid-hills are better managed reversing the deforestation and degradation due to massive expansion of community forests and pro-poor leasehold forests. By now, over 18,000

Community Forest User Groups (CFUGs) manage approximately 1.7 million ha of forests and over

7000 Leasehold Forest User Groups (LFUGs) manage 43,000 ha of degraded forests.

3

DoF, (2005). Forest Cover Change Analysis of the Tarai Districts (1990/91-2000/01). Kathmandu, Nepal: Department of Forests.

FRA/DFRS (2014). Tarai Forests of Nepal (2010 – 2012). Babarmahal, Kathmandu: Forest Resource Assessment

Nepal Project/Department of Forest Research and Survey

.

Rastra Bank, May 2013: Study of Economic Activities: A Semi-Annual Report for fiscal year 2012/2013.

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The forests in the High Mountains, particularly, in the lower temperate region and sub alpine and alpine areas are under extreme pressure for fodder, firewood and building materials. Forest fire,

Overgrazing, Indiscriminate product extraction, Illegal trades, Infrastructure expansion, and

Development of new economic frontiers are identified as the important drivers of deforestation and degradation in the High Mountain areas.

Annex 2b-1 of the R-PP lists the specific drivers, their underlying causes and preliminary strategic options. These drivers, underlying causes, strategic options and key interventions not only vary between physiographic regions and but may even vary within the region. Annex H of Nepal’s ER-PIN to FCPF Carbon Fund (March, 2014) has listed the variability of drivers and underlying causes shown by different studies in the Emission Reductions Program Area that includes 12 districts of the Tarai

Arc Landscape (TAL). Review of all these relevant reports, including the report on the impact and magnitude of deforestation drivers and the synthesis report, as being developed by the Consortium as part of the Analytical Study on Assessing the Value of Forests, the Political Economy of Land Use

and the Carbon Emissions from the Drivers of DD, and execution of extensive consultations will further distinct, validate, update and prioritize national, regional and local drivers, impacts, strategies and intervention activities.

These validated, updated and prioritized strategic options will be thoroughly assessed in terms of impact (trade-offs, opportunities, risks) and feasibility. This will assure that the implications and impact of proposed strategies are reflected upon. Moreover it will facilitate proper management, monitoring and decision making. Additional to the drafting of input for the Strategy report, a risk analysis of the major types of risk will be constructed.

3.2.2

Review and cataloguing existing data and information

The drivers of deforestation and forest degradation identified by all studies and in all physiographic regions are diverse, complex and interconnected. To understand the complexity and interconnectedness the knowledge and information need to be sought in a wide range of areas. The consultant team has already started the cataloguing of existing knowledge and information that relates with the proximate and underlying causes of deforestation and forest degradation in Nepal.

A provisional list of studies and reports has been compiled (table 1). Additional studies and reports will be included during the work itself. The drivers of DD for each physiographic region identified by different studies have been tabulated (table 2). These tabulations will be reviewed and verified with the synthesized and commonly agreed knowledge on the drivers of DD and their effects as identified as part of the Analytical Study on Assessing the Value of Forests, the Political Economy of Land Use and the Carbon Emissions from the Drivers of DD.

Nepal’s Readiness Preparation Proposal (R-PP) of 2010 and Nepal’s ER-PIN to FCPF Carbon Fund submitted in March, 2014 will be extensively reviewed and analyzed to assess the government's plan and commitments.

Table 1: Provisional list of relevant studies/reports on drivers of deforestation and forest degradation

1.

COMFORTC (2012). Study on Drivers of Deforestation and Degradation of Forests in High

Mountain Regions of Nepal, A study commissioned by REDD-Forestry and Climate

Change Cell of the Ministry of Forest and Soil Conservation (MFSC), Kathmandu, Nepal.

2.

MFSC, (2014). People and Forests– An SMF-Based Emission Reduction Program in

Nepal’s Tarai Arc Landscape, Nepal’s ER-PIN to FCPF Carbon Fund– March, 2014

3.

MoFSC. (2004). Tarai Arc Landscape Nepal, Strategic Plan 2004 - 2014 Ministry of

Forests and Soil Conservation , Kathmandu, Nepal.

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4.

MoFSC. (2010). Nepal’s Readiness Preparation Proposal (R-PP): REDD 2010-2013.

Ministry of Forests and Soil Conservation (MoFSC), Kathmandu, Nepal.

5.

The Analytical Study on Assessing the Value of Forests, the Political Economy of Land

Use and the Carbon Emissions from the Drivers of DD

6.

UN-REDD Program, (2013). Drivers of Deforestation and Forest Degradation and responses to address them in Nepal.

7.

WWF Nepal/ Hariyo Ban Program, (2012). Biological and socioeconomic study in corridors of Tarai Arc landscape, Nepal.

8.

WWF Nepal/ Hariyo Ban Program, (2013). Chitwan Annapurna Landscape: Drivers of

Deforestation and Forest Degradation, Nepal.

9.

Paudel, N.S., Khatri, D.B., Khanal, D.R. and Karki, R. 2013. The context of REDD+ in

Nepal: Drivers, agents and institutions. Occasional Paper 81. CIFOR, Bogor, Indonesia.

3.2.3

Collecting additional data and information

3.2.3.1

Literature review and desk survey

During the desk review the forest cover change dynamics and quantification of carbon stocks will be assessed based on existing literature.

Information on changes in forest cover are often conflicting and confusing and the reliability of data sets and confidence levels of landuse surveys and forest inventories in Nepal is equally often suboptimal. However, the recently issued regional study from the FRA/DFRS for the Tarai Forests has compiled the existing data and information in the best possible manner for the Tarai, and provides the best possible landuse and forest cover information /data for that region and has filled where possible or highlights information gaps on forest cover change.

For the quantification of carbon stocks the estimation of the carbon stock of forests of Nepal made by Forest Resource Assessment Project (FRA) will be used possibly in combination with the study on deforestation and forest degradation currently being compiled. The FRA/DFRS (2014) has published its report of Tarai Forests with species wise growing stock, biomass and carbon stock (above ground and below ground) by forest type, and development region. And similar reports for remaining physiographic regions are expected to be published soon. However, taking FRA/DFRS data of 2010-

2012 as a baseline figure, annual carbon sequestration will be adjusted by deducting the total loss in volume due to timber harvest, fuel-wood harvest, forest fire, diversion of forests into other landuse and encroachment of forest land etc as per the guidelines provided by the IPCC Good Practice

Guidance 2003 and/or the IPCC Inventory Guidelines for Agriculture, Forestry and Other Land Use

(AFOLU) (2006).

The DD for each physiographic region identified by different studies (Table 2) will be further analyzed where possible and categorized by the types of drivers (proximate/underlying). Furthermore, the temporal variability of drivers of deforestation and forest degradation will be analyzed and a gap analysis will be executed to identify information gaps, which will be addressed through the consultations.

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Table 2. Drivers of deforestation and forest degradation identified in various studies:

Studies

MoFSC, 2004 *

(Tarai Arc

Landscape)

MoFSC, 2010 (R-

PP)

Drivers identified

1.

2.

Uncontrolled grazing in forests,

3.

Unsustainable timber harvesting,

4.

5.

6.

7.

2.

Illegal harvest of forest products

3.

Unsustainable Harvesting Practices

4.

Forest fire

5.

Encroachment

6.

Overgrazing

7.

8.

9.

WWF

Hariyo

Nepal/

Ban

Program, 2012*

1. Land use alterations,

2. Forest encroachment,

3. Forest Fire,

4. Livestock grazing

UN-REDD

Program, 2013*

5. Illegal logging and wildlife trade

(poaching)

6. Human Wildlife Conflict

7. Invasive species

8. Infrastructure and

9. Climate induced threats

1. Illegal logging,

2. Encroachment,

3. Fuel-wood consumption

4. Roads

5. Mining,

6. Grazing

Multi stakeholder consultations conducted for

ER-PIN development at national and subnational level

(2013) *

COMFORTC

(2012)

(High Mountain

Areas)

1. Encroachment

2. Open grazing

3. Firewood collection

4. Resettlement and   Infrastructure development

5. Illegal cutting of trees

6. Forest fires

1.

Forest conversion,

Unsustainable fuel wood extraction,

Forest fires,

Churia watershed degradation and

Wildlife-poaching and human-wildlife conflict

1. High dependency on forests and forest products (timber, firewood, and other NTFPs)

Infrastructure development

Resettlement

Expansion of invasive species

Forest fire

2.

Over grazing

3.

Indiscriminate product extraction

4.

Illegal trades

Summary of the underlying causes

 Migration and population growth

 Low agricultural productivity

 The struggle for land

 Lack of off-farm livelihood

  opportunities



Inadequate access to and

  management of forest   resources

 Cross border issues

 Poverty and lack of livelihood alternatives;

 Weak governance mechanisms and weak law enforcement

 Inefficient distribution mechanism for timber and firewood

 High cross-border demand for forest products

 Inadequate budget for research and development

 Political interference

 Unclear land tenure, policy   and planning

Not specifically identified

 Poverty and high dependency on forests;

 Increase demand for forest products;

 Weak low enforcement;

 Corruption

 Population growth

 Political instability

 Poor technology in forest management

 Low agriculture productivity

 opulation growth and migration from hills

 Poverty

 Unemployment

 Political instability

 Weak law enforcement

 Lack of coordination among   the various government   agencies

 Floods

 Lack of resources in DFOs to control illegal activities

 Lack of land use policy

 Corruption

 Demographic factors

 Policy and institutional factors

 Governance factors

 Economic factors

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WWF

Hariyo

Nepal/

Ban

Program, (2013)

(Chitwan

Annapurna

Landscape)

5.

Infrastructure expansion

6.

Development of new economic frontiers

Chure:

1.

Over, and unsustainable harvesting

2.

Encroachment of forestlands for agricultural expansion

3.

Infrastructure development

4.

Resettlement and urban expansion

5.

Forest fire

6.

Invasion by alien plant species

7.

Overgrazing

Mid-Hills:

1.

Unplanned and unregulated opening of road tracks by local Village

Development Committees

2.

Forest fire

3.

Invasion by alien plant species

4.

Stone mining and landslides

High Mountain:

1.

Forest fire

2.

Overgrazing

 Cultural factors

 Lack of research and development

 High forest dependency

 Widespread poverty and very limited livelihood alternatives

 Weak law enforcement and overall poor forestry sector governance

 Lack of scientific forest management

 Financial and human resource constraints in district forest offices

 Poor coordination among different government and non-government agencies.

* As illustrated in MFSC, (2014). People and Forests– An SMF-Based Emission Reduction Program in Nepal’s Tarai Arc

Landscape, Nepal’s ER-PIN to FCPF Carbon Fund– March, 2011

3.2.3.2

Consultations

A number of consultations, meetings, focused group discussions and key informant interviews will be held. We will consult with Nepal’s REDD Working Group, Multi-Stakeholder forum and REDD Forestry and Climate Change Cell for detailed advice and guidance, to review progress, help identify information sources, establish institutional links and, for discussing issues or problems that may arise during the process of assignment. Benefits will be taken, where appropriate, from the stakeholders identified and consulted in the course of the REDD+ Readiness assignment ‘Analytical Study on

Assessing the Value of Forests, the Political Economy of Land Use and the Carbon Emissions from the

Drivers of DD’.

Consultations will be held at national, regional and local/district as envisioned by the ToR. The consultations will cover primary and secondary stakeholders and will give particular attention to those stakeholders that are less easy to approach because of geographic remoteness or lesser levels of being organized/represented such as minorities, particular ethnic groups, the extreme poor and disenfranchised, the landless, women and children and remote communities. All consultations will be designed using participatory methodologies to enhance ownership and capture the knowledge and experiences of all stakeholders.

The consultations of this task will be organized and guided by KE-2 and executed in parallel with the envisioned consultations in Task 3, 4 and 5.  

3.2.3.3

Tools and methodologies of the consultations

One of the methods that will be applied to further prioritise DD, underlying causes, strategy options and interventions is a priority matrix that will be used during the consultations. On the basis of the work described in the previous subsections such a priority matrix will be developed.

The set of social, political, institutional, technical, economical, and environmental criteria proposed in the R-PP for the participatory methodology is reviewed and developed (Table 3), which will be

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Inception Report FCPF/REDD/S/QCBS-20 applied to assess the strategic options. In all consultations, Indigenous people and other minority groups will be invited in particular to participate.

Table 3. Criteria for assessing strategic options

Criteria

Social

Economic

Environmental

Policy and governance

Technical

Variables

Social inclusion of poor and marginalized groups

Poverty alleviation effect

Equity of resulting benefits

Opportunity cost, forgone benefit from alternative options

Implementation and maintenance costs

Economic benefits for different stakeholders

Carbon emissions reductions

Biodiversity loss or gain

Water and soil conservation

Adaptability to climate change and climate variability

Political feasibility of implementation / alignment with existing Forest Law and Policy

Alignment with existing governance structures and mechanisms

Alignment with national development strategies

Addressing households concerns

Harmony with law and policies

Interest and commitment of implementing agencies

Continuity of emissions reductions, risk of reversal

Potential leakage and additionality

Doability

Overall contribution to reduced emissions and savings

3.2.3.4

National consultations

Three consultations will be held at national level with national level stakeholders of civil society, community groups, educational institutions, researchers, and government institutions. The list of agencies to be consulted is identified in Table 5. This list will be updated in consultation with REDD

Cell. The first national consultation will focus on sharing of the approaches and methodologies and get suggestions from national stakeholders. The second will be sharing of the progress and the preliminary findings to key stakeholders and the third will be sharing of the outcomes of the strategic process (table 4).

Table 4. National consultation plan

S.N.

1

Date

July/August

2014

Place

Kathmandu

Kind of national consultation

Inception workshop

Objectives

To share and consult on the process, approaches and methodologies and get suggestions

2

3

September,

2014

November,

2014

Kathmandu

Kathmandu

Progress sharing workshop

To share and consult on the progress and preliminary findings.

Final sharing workshop To disseminate the outcome of the

REDD+ strategy.

Table 5. List of Stakeholders for National Consultations

Page 15 of 50


Government institutions:

Ministry of Forests and Soil Conservation (MoFSC)

Department of Forest (DoF)

Department of Forest Research and Survey (DFRS)

Department of Soil Conservation and Watershed

Management (DSCWM)

Department of National Parks and Wildlife

Conservation (DNPWC)

Department of Plant Resources

REDD-Forestry and Climate Change cell

National planning Commission

Water and Energy Commission

Ministry of Science, Technology and Environment

Ministry of Agriculture Development (MAD)

Forest Products Development Board (FPDB)

Parliamentary Committee on   Natural Resources

Nepal Trust for Nature   Conservation (NTNC)

Singhdurbar Vaidhyakhana

Timber Corporation of Nepal (TCN)

Projects:

Forest Resource Assessment Project

Multi Stakeholder Forestry Programme

WWF-Hariyo Ban Program

Private sector

Private Forest Network  

Medicinal Plants Processing Companies

FNCCI

Federation of Forest Product Traders

Federation of Herbal Trade  

Civil society

Nepal Foresters’ Association

Federation of Community Forestry Users Nepal

(FECOFUN)

Association Collaborative Forest Users Nepal (ACOFUN)

Nepal Federation of Indigenous Nationalities (NEFIN)

The Himalayan Grassroots Women's Natural Resource

Management Association (HIMAWANTI)- Nepal

DANAR- Nepal

NGO Federation  

Forest Action Nepal

Nepal Federation of Environmental Journalists (NEFEJ)

Association of Forest Technicians Nepal   Ranger

Association of Nepal

Junior Forest Technician Association

Academic institutions

Institute of Forestry

Kathmandu Forestry College

INGO/Inter-governmental

World Wildlife Fund (WWF)

Care Nepal

International Center for Integrated Mountain

Development (ICIMOD)

United Nations Development Programme Nepal (UNDP)

World Bank Nepal

Asian Development Bank (ADB) Nepal

Food and Agricultural Organisation (FAO)

Department for International Development, UK (DFID) –

Nepal

3.2.3.5

Regional consultations

Regional consultations will be held in each region with regional forestry officials, representatives of civil society organisations, representatives of local forest users, NGOs, INGOs, academics and other stakeholders. Preliminary findings will be shared and suggestions and views with regards to DD, strategic options and in other relevant areas will be sought. The regional consultation workshops are proposed as follows (Table 6):

Table 6. Regional consultations

Region Venue Representative

Ecology

Potential participants in the workshop Due date

Eastern development region

Central

Biratnagar/D hankuta

Hetauda

Hills/Tarai CDO, DFO, representative of networks such as

FECOFUN, NEFIN, DANAR and HIMAWANTI, political leaders, representatives of DDC and

VDCs, and journalists

August II week

Siwalik, hills, Regional level stakeholders such as RD of August III week

Page 16 of 50

Inception Report FCPF/REDD/S/QCBS-20 development regions

Western development regions

Mid-western development regional

Far-western development regions

Pokhara

Ghorahi,

Dang

Dhangadi,

Kailali bhawar, tarai

Mid-hills

Inner tarai

Tarai

MFSC, Agriculture, Regional Administrators,

DFO, Warden, representative of networks such as ACOFUN, FECOFUN, NEFIN, DANAR and

HIMAWANTI, political leaders, VDCs and municipality and journalists

Regional level stakeholders such as RD of


CDO, DFO, representative of NTNC/ACAP,

Community members of Fewa, Rupa and

Begnas, representative of networks such as

FECOFUN, NEFIN, DANAR and HIMAWANTI, political leaders, representatives Pokhara submunicipalities, DDC Kaski, journalists

Regional level stakeholders, Regional

Administrators, CDO, DFO, Community members, representative of MSFP and networks such as FECOFUN, NEFIN, DANAR and

HIMAWANTI, political leaders, representatives municipality, DDC, representative of BNP,

BZUC, journalists

Regional level stakeholders such as RD of


CDO, DFO, representative of Hariyo Ban, TAL,

Community members of Ghodaghodi, representative of networks such as NEFUG,

FECOFUN, NEFIN, DANAR and HIMAWANTI, political leaders, representatives Dhangadi municipality, DDC Kailali, representative of

SNP, BZUC, representative Sonaha group, and journalists

September I week

September II week

September II week

3.2.3.6

Local/district consultations

A total of 15 local/district level consultations will be held covering all five development regions and the four main ecological zones of Nepal (Tarai, Chure and inner Tarai, Middle Hills and High

Mountains). These consultation workshops will be held with officials of the line ministries, political parties, DDC, VDC, civil society organisations, LFUGs including representatives of Dalits, Women,

Indigenous Peoples, Forest User Groups and other relevant stakeholders.

At community level, several Focused Group Discussions and key informant interviews will be held targeting forest-dependent communities, Dalits, women, and indigenous people. The local/district consultations are proposed as follows (Table 3.6):

Table 7. Local/district consultations

Region/ district

Eastern development region (3)

Centre development region (3)

Western development region (3)

Mid-western development

Potential districts Site representative/Ecological belt

High mountain, hills, tarai

Potential respondents/participants

Due date

Sankhuwasabha,

Dhankuta, Sunsari

Dolakha, Chitwan,

Makwanpur

High mountain, siwalik, inner tarai

Nawalparasi,

Kapilbastu, Gorkha

Arghakhanchi,

Dang, Banke,

High mountain, tarai

Mid hill, inner tarai, tarai

District government line agencies such as DFO,

DSCO, DADO, local bodies, FECOFUN, NEFIN,

DANAR and HIMAWANTI, political leaders, development agencies, forestry, climate change and conservation projects and activists, journalists,

I/NGOs as well as

August I week

August II week

August III week

September I week

Page 17 of 50

Inception Report FCPF/REDD/S/QCBS-20 region (3)

Far-western development region (3)

Dadeldhura,

Kanchanpur, Kailali

Mid hill, tarai representatives of Dalits,

Women, Indigenous

Peoples and other relevant stakeholders

September II week

3.2.4

Data processing and analysis

Information collected through desk review, consultations including FGDs and key informant interviews will be categorised, analysed and used where appropriate using the best professional judgment of the consortium.

The national level data will be obtained from and collected through the analysis of published and unpublished reports and will be analysed in line with the identified drivers of deforestation and forest degradation.

The identified strategy options and intervention activities will be further assessed based on the trade-offs, opportunities, threats, risks and feasibility. The assessment will be informed by the risk analysis of the major types of risk as referred to in subsection 3.2.1. The outcome of the analysis will be verified with feedback from stakeholders and the results will be used for the further formulation, update and prioritization of the strategic options and interventions.

3.2.5

Draft reporting, consultation, upgrading and final reporting

A list of drivers of deforestation and forest degradation prioritized according to physiographic region, with associated, updated strategy options and intervention activities will be produced out of the desk study, multi-stakeholder consultations, and the risk assessment.

3.2.6

Work package 2

The work package 2 consists of the following input, main activities, deliverables and team.

Input: Relevant literature, reports, R-PP and ER-PIN

Main activities:

Deliverables:

1.

Desk review of relevant literature

2.

Preparation of data collection and selection of sites

3.

Data collection: consultations

4.

Data processing and analyses

5.

Trade-off analysis

6.

Analysis of strengths/ opportunities/ challenges/ threats

7.

Risk analysis

8.

Feasibility analysis

9.

Reviewing with stakeholders

10.

Additional data collection and processing

11.

Construction of a risk framework

12.

Structure input for Strategy Report

Input for Task 6

Team: Main contributors to this task are KE-2 (who will provide the main input and who organises and guides the consultation workshops) and KE-3

(who will deliver substantial input on the impact and feasibility analysis) with technical support from KE-4. Support and output review will be delivered by KE-1.

Page 18 of 50


3.3

WP 3-Implementation approach for the REDD+ strategy

3.3.1

Introduction

As reducing emissions from deforestation and forest degradation is also an effort to create a financial value for the carbon stored in forests, offering incentives to different stakeholders also becomes essential for reducing emissions from forested lands and encouraging investment in low-carbon development pathways as a part of a sustainable development strategy. This makes the REDD+ strategy beyond deforestation and forest degradation, and includes the role of conservation, sustainable management of forests and enhancement of forest carbon stocks.

The RPP has discussed the implementation framework and its components in detail. Components of

Implementation arrangements as described by RPP consists of: (i) Forest Carbon Ownership and Land

Tenure; (ii) REDD Implementation; (iii) Financing Mechanisms; (iv) Stakeholder Engagement and

Governance; (v) Data Management, Monitoring, Reporting and Verification; and (vi) Institutional and

Governance Reform.

Taking into account the carbon ownership rights and land tenure issues, existing various forms of institutional structures and arrangements, experiences and lesson learned from pilot projects of benefit sharing from Nepal and elsewhere, a hybrid framework for REDD implementation at the national and sub-national levels with a multi-stakeholder approach of implementation and benefit sharing is proposed. This implies strategic issues on policy, legal and tenure arrangements to be addressed at the national level, while benefit sharing, financing and monitoring to be dealt at subnational level.

At the national level a high-level Climate Change Council led by the Prime Minister and represented by various ministries, members of the national planning commission, and experts has been formed.

In addition a multi-stakeholder high-level REDD monitoring body as a REDD Working Group (RWG) is formed. The REDD Cell under the MFSC is serving as the secretariat for REDD activities. A consortium of seven institutions representing community-based forest management groups, indigenous peoples,

Dalits, women, an association of forestry professionals and researchers, and various experts has also been formed to work together on forestry and climate change issues.

At the sub-national level, the DFCC, a multi-stakeholder forum linked with local government bodies and at the local (VDC) level, Village Forest Coordination Committees (VFCCs) have also been proposed for linking directly with community-based organizations and groups managing specific forests under a bundled approach to governing environmental services including carbon.

RPP has also explored three key legal problems i). Recognizing carbon as a forest products or service and clarifying carbon ownership, and ii) Defining a community-friendly benefit-sharing mechanisms and Legal status of Forest Carbon Trust Fund) and opportunities of better improvement on the existing institutions. For example, inclusion of representatives from civil society and RWG and transforming it into a Board of Directors of Forest Carbon Trust Fund, expansion of District Forest

Coordination Committee (DFCC) and Village Forest Coordination Committee (VFCC) all over the country and strengthen their institutional capacity as a legal entity at sub-national and local levels responsible to deal with the issues of REDD +strategy implementation including benefit sharing, fund management, monitoring and maintaining standards of good governance.

Considering the various forms of community-based forest management in practice and corresponding institutions, and governance status at government level along with problems of opportunity cost associated with developing compensation schemes across the various development regions or districts the RPP has strongly suggested DFCC the best institution also for carbon financing

Page 19 of 50

Inception Report FCPF/REDD/S/QCBS-20 and fund management. To ensure transparency and hold the registry accountable to multiple stakeholders, as well as ensure compliance with REDD quality standards and social safeguards RPP has also recommended establishing a strong community-friendly public carbon registry as a measure of an participatory effective and self-data management, monitoring, reporting and verification system at national as well as sub-national level.

Based on the experience for pilot projects of Nepal and other developing countries and the review of contemporary literatures, including the RPP on developing implementation framework and approaches, the following questions have to be discussed in detail with the concerned stakeholders in order to come up with a common understanding.

 What are the policy and legal impediments/gaps related to carbon ownership and land tenures issues and what could be the potential policy and legal recommendations?

 What could/would be a most promising implementation framework or arrangements, its structure and composition (in terms of membership, gender and social inclusion, and geographic location) and implementation approach that is more effective, transparent, accountable?

 What could be the best legal financiering entity and financing mechanism that build ownership and encourage people's participation on REDD + strategy implementation while maintaining standards of governance?

 What could be the appropriate data management, monitoring, reporting and verification at various levels?

 What are the potential areas of institutional and governance reform?

3.3.2


The consultant team has started the cataloguing of existing knowledge and information about the linkages of REDD + in the conservation, sustainable management of forests and enhancement of forest carbon stocks. Additional studies and reports of REDD+ implementation and pilot projects of

Nepal and elsewhere will be collected and retrieved from websites for exploring highly successful and effective implementation institutional framework and approaches. A provisional list of literatures and policy documents are collected/listed for review is given in (table 8).

Review of existing Forest, Biodiversity, Environment and Climate Change related laws and policies will be carried out (as listed in table 8). The institutional context will be assessed and the strength and weakness of various institutional arrangement discussed and proposed by the RPP will be analyzed by focusing on the major elements of Institutional framework (policy and legal provision, gender and social inclusion, geographical representation, decentralization/ delegation of power/authority, and provision of maintaining good governance (indicators of Governance). Based on this analysis and consultation appropriate REDD+ implementation framework consisting of institutional structure, and governance and legal arrangements including social and environmental safeguards will be identified.

For the monitoring and data/information management and reporting system the existing systems and capacities will be assessed and National Forest Monitoring System and National Forest

Information Management System will be developed in consistence with UNFCCC.

Table 8. Some relevant literature for the desk review

Page 20 of 50


1.

Angelsen, A. with Brockhaus, M., Kanninen, M., Sills, E., Sunderlin, W. D. and Wertz-

Kanounnikoff, S. (eds) 2009 Realising REDD+: National strategy and policy options. CIFOR,

Bogor, Indonesia.

2.

Brown, D., Seymour, F., and Peskett, L. (2008). ‘How do we achieve REDD co-benefits and avoid doing harm?’ in A. Angelsen (ed.) Moving ahead with REDD: issues, options and

implications, CIFOR, Bogor, Indonesia.

3.

Bushley, B., and Khanal, D.R. (2012). ‘Selling carbon commons: decentralisation, forest tenure and carbon trading in Nepal’s community forestry’, in L, Naughton-Treves, and C,

Day,(eds) Lessons about land tenure, forest governance and REDD+: case studies from

Africa, Asia and Latin America’, retrieved from: < http://www.nelson.wisc.edu/ltc/docs/Lessons-about-Land-Tenure-Forest-Governanceand-REDD.pdf>.

4.

CRT/N (2013). ‘An Insight to CDM Projects in Nepal Cookstove CDM Project in Nepal:

Challenges for an NGO’, Conference on Improving Energy Access through Climate

Financing, The Netherlands.

5.

Field, (2012). Guidelines for REDD Plus Negotiators, Foundation for International Law and

Development (FIELD)

6.

IPCC, 2006. Guidelines for National Greenhouse Gas Inventories – Volume 4 – Agriculture,

Forestry and other Land Use. Institute for Global Environmental Strategies, Japan

7.

MFSC, (2014). People and Forests– An SMF-Based Emission Reduction Program in Nepal’s

Tarai Arc Landscape, Nepal’s ER-PIN to FCPF Carbon Fund– March, 2014

8.

MoFSC. (2010). Nepal’s Readiness Preparation Proposal (R-PP): REDD 2010-2013. Ministry of Forests and Soil Conservation (MoFSC), Kathmandu, Nepal.

9.

MoSTE (2011). Climate Change Policy, 2011. Ministry of Science, Technology, and

Environment, Government of Nepal.

10.

NAPA (2010). National Adaptation Programme of Actions to Climate Change, Ministry of

Environment, Government of Nepal, September 2010

11.

NEFIN, (BS 2068). Community Based REDD Plus: A manual for Trainers of Indigenous

Communities. Localization, Translation and Edited by Kumud Shrestha and others.

12.

Ojha, H. (2009). ‘Climate Change, Forestry and Carbon Financing in Nepal’, Journal of

Forest and Livelihood vol. 8 no. 1, Forest Action, Nepal.

13.

Practical Action, (2009). Temporal and Spatial Variability of Climate Change Over Nepal

(1976-2005). Practical Action Nepal Office, 2009.

14.

REDD Cell (2012). Nepal Specific REDD+ Social & Environmental Standards (Version 1),

August, 2012

15.

REDD Cell (2011). Forest Carbon Inventory Guideline (2067).

16.

REDD Cell (2011). Study on REDD Plus Piloting in Nepal.

17.

REDD Cell (2011). Feasibility Study of REDD Plus in Collaborative Forest Management

18.

REDD Cell (2011). Role of Forest on Climate Change Adaptation.

19.

REDD Cell (2013). Nepal Monitoring &Evaluation Framework for the REDD+ R-PP process

Page 21 of 50


20.

REDD Cell (2013). Mid Term Report World Bank FCPF Grant on REDD Readiness

21.

Skutsch, M. and De Jong, BHJ (2010), ‘The permanence debate’, Science, vol. 327, p. 1079.

22.

Stern, N. (2006). ‘Stern Review: The economics of climate change. Published by Her

Majesty’s Treasury, UK

23.

The Analytical Study on Assessing the Value of Forests, the Political Economy of Land Use and the Carbon Emissions from the Drivers of DD

24.

UN-REDD (2012), National Forest Monitoring Systems: Monitoring and Measurement,

Reporting and Verification (M & MRV) in the context of REDD+ Activities, UN-REDD

PROGRAMME NINTH POLICY BOARD MEETING, 26-27 October 2012   Brazzaville, Republic of the Congo

Policy documents:

1.

Forest Policy, Acts and Regulations

2.

Climate Change Policy   -

3.

National Land Use Policy   -

4.

National Rangelands Policy (Rashtriya Kharka Ain)   -

5.

National Parks and Wildlife Conservation Acts and Regulations

6.

National Biodiversity Strategy and Action Plan  

7.

National Wetlands Policy

8.

National Water Policy/Strategy  

9.

National Irrigation Policy  

10.

National Hydro-power Policy  

11.

Environment Act and Regulations (EIA guidelines for sectors)  

12.

National Adaptation Plan of Action (NAPA) and Local Adaptation Plan of Action (LAPA)

3.3.3

Collecting additional data and information a) Literature review and desk survey

National, regional, local and project level strengths, weaknesses opportunities and threats of the

REDD+ strategy implementation will be assessed. The desk study will also include an analysis of the leveraging power of REDD+ incentives and the potential of non-carbon benefits of REDD+. b) Consultations

The consultations of this task will be executed in conjunction with the national, regional and

Page 22 of 50

Inception Report FCPF/REDD/S/QCBS-20 local/district level consultations as discussed in 3.2 above. The proposed REDD+ implementation framework, approaches along with details of institutional components will then be verified with feedback from local, districts and regional and national stakeholder's workshop.

C) Institutional Analysis: SWOT Analysis of various Climate change related institutions

A detailed institutional analysis of the various institutions related to REDD+ that has been established or functioning at various levels will be done using the SWOT analysis tool. The analysis will be primarily focused on strength and weakness of governance issues and capacity and human resources of the institutions to transform opportunities into actions for better positive outcomes and manage the emerging socio-political and economic threats.

3.3.4


Collected information from desk review and consultations will be analysed and used appropriately using the best professional judgment.

3.3.5


The consultant team will analyse the information from desk review and district/regional consultations, identify the implementation approaches and present in the national stakeholder workshop, which will be finalized after incorporating the feedback.

3.3.6

Work package 3

The work package 3 consists of the following input, main activities, deliverables and the team.

Input: Relevant literature, reports, R-PP and ER-PIN

Main activities:

Deliverables:

Team:

1.


2.


3.


4.


5.

SWOT analysis

6.


7.


8.


Input for Task 6

Main contributors to this task are KE-2 (who will provide the main input and who organises and guides the consultation workshops) and KE-3

(who will deliver substantial input on the SWOT analysis ) with technical support from KE-4. Support and output review will be delivered by KE-

1.

Page 23 of 50


3.4

WP 4: Role of non-forest sector in REDD+ implementation

3.4.1

Introduction

The effective and efficient implementation of REDD+ programs requires coordination and involvement of sectors beyond forestry. This entails that the national level REDD+ policies and programs directed to address drivers of deforestation and forest degradation should also examine the role of other sectors. Only if REDD+ programs are aware of the cross-sectoral character and impacts of REDD+ activities and are beneficial outside the forestry sector, will national ownership and sustainability of the program be ensured.

The agriculture and energy sectors are regarded to be very important sectors to consider because of their role in deforestation and forest degradation and because they are key drivers of development.

Preliminary results of the study on Total Economic Value (TEV) of Forests in Nepal carried out under the Analytical Study on Assessing the Value of Forests, the Political Economy of Land Use and the

Carbon Emissions from the Drivers of DD, underscores the importance of such sectors related to forests, and indicates that in this perspective the TEV of forests is much higher.

In Nepal, the expansion of agricultural land for food production, extraction of firewood for cooking and domestic heating, forage gathering for livestock and forest grazing, among others, are closely linked to the forestry sector as well, and hence these would have a marked impact on deforestation and forest degradation. Still, more than two third of population is depended on the agriculture sector for its livelihood. On the other hand, the contribution of agriculture sector in total value added has now reduced to 33-35 percent amidst a slow pace of commercialization and low productivity with added pressures on the expansion of agricultural land (CBS, 2008 and MOF, 2013). Under such circumstances, there is added priority to the development of the agricultural sector as it is regarded to be the key for higher growth and sustainable development in Nepal. The agriculture development strategy developed recently has envisaged a 5 percent long term growth in this sector adding the potential contributions for the overall development of the economy (MOAD, 2010). Agriculture has a very critical role in driving rural economic development, where most of the poorest people live. The nature and speed of transformation in the agriculture sector will be crucial for the REDD+ implementation. Hence, both contributing and coordinating role of the agriculture sector becomes vital.

Studies highlighting the importance of green economy indicate that apart from fragile agriculture, structural constraints driven by limited access to energy including alternative energy added by imperfect competitive patterns of supply contribute to augment deforestation and forest degradation in developing countries like Nepal (UNEP, 2010). A quick review of Nepal’s energy consumption pattern shows that out of the total consumption, fuel wood accounted for 75 percent in 2010/11. The share of new renewable energy sources (excluding large hydropower) such as biogas, micro hydro and solar energy was merely 0.74 percent (MOF, 2013). The electricity consumption was about 2.2 percent in the same year despite huge potentials of electricity generation in Nepal.

With about 87 percent energy consumption for the residential consumption purposes at the moment, the demand for energy for industrial and commercial purposes is bound to rise at a faster rate in the coming days. Such a phenomenon will augment further as a result of continued rapid urbanization which is highest in the South Asian region (WB, 2011). On the other hand, a demand and supply analysis of fuel wood and timber shows that a large gap between the two exists with more pressures for the forestry sector (Kanel et al, 2012). Under such a condition, development of alternative energy and reliable and affordable access will be the key in driving overall growth and

Page 24 of 50

Inception Report FCPF/REDD/S/QCBS-20 development and meeting the rising energy demand having important ramifications on the REDD + implementation strategy.

Thus, maximizing synergies with key sectors like agriculture and energy will be essential for REDD+ programs to fit within Nepal’s broader development strategies. Cross-sectoral coordination will also be important for considering equity and the socio-economic impacts of national level REDD+ strategies. These impacts will need to be identified and mitigated through careful policy design for harmonizing, among others, agricultural, energy and forest sector policies and programs for effective implementation of REDD+ strategies.

Other non-forest sectors that are affected by the (lack of) implementation of REDD+ activities and programs, include: tourism, water supply, construction (eg houses), infrastructure, and health (air quality-related illnesses) and safety (floods, landslides, etc.).

3.4.2

Desk review of relevant literature, data and information

The first task set for the study is to review the relevant literature, in particular also the TEV report that is currently being elaborated. This task has already been started and will be completed in stipulated time. The important policy and program documents of the government related to nonforestry sectors like agriculture and energy have already been collected and they are now being reviewed. The relevant legal documents are also being collected for the review of legally binding policies, institutional provisions and arrangements liked to regulation and implementation. Likewise, important studies and research based articles relevant for the study have been retrieved from the internet. The ongoing in-depth review of the literature will enable to identify the gaps for the study and chalk out the areas where further investigation and analysis will be required.

In parallel, various relevant survey reports, published data and information are also being collected.

They will help to identify the interrelationships between the forest and non-forest sectors and how objectives of the different sectors can be balanced; and, which information and data gaps remain for a comprehensive analysis. That exercise will assist in the determination of the additional data and information that still needs to be collected. Where possible that will be done within the context of this assignment, but the collection of primary data has to be limited due to the limited time and resources.

3.4.3

Preparation of data collection and selection of sites

Based on the literature and data gaps identified, issues to be additionally clarified or substantiated and that require additional feedback, a two-pronged methodological approach will be followed in parallel as part of preparing for data collection.

3.4.3.1

Field survey/interview

A structured questionnaire will be developed for the field survey and interviews. In the questionnaire, related issues linked to sectors like agriculture and energy added by some pertinent questions from macro perspectives influenced by political economy or overall public policy considerations will be covered which are linked to REDD+ implementation. The questionnaire will be aimed at obtaining concrete feedback and suggestions that are linked to policies, programs and implementation issues including governance and institutional issues. The questionnaire will also attempt to verify some key secondary data and information with additional attempts at filling important data gaps, if any.

Page 25 of 50


Kathmandu is the proposed site for the collection of data and information. It is also proposed that 40 respondents from policy makers, academia/researchers, private sector stakeholders and NGOs and civil society organizations are selected for the survey. From four such distinct groups, 10 from each group will be included in the survey for fair representation.

3.4.3.2

Fieldwork/consultation

In parallel, a wider consultation will be carried out across diverse stakeholders to obtain additional but more issue-based information and feedback. Key informants from various ministries, National

Planning Commission, private sector, universities, research centers, NGOs and civil society organization and market entities will be identified and consulted. A checklist will be prepared for consultation purposes in order to ensure that the information and feedback is obtained in a coherent and consistent manner.

3.4.4

Data collection and consultation

The questionnaire based data and information collection and checklist-based consultation work will be completed in 6 weeks as per stipulated timeframe. If some gaps in both processes are identified, rechecks and verification with concerned respondents will be carried out.

3.4.5


All collected data; information, feedback and suggestions will be collated and processed and analyzed. Wherever feasible and necessary, a comparative analysis with earlier findings or other data sources will also be additionally made to ensure the robustness and reliability of the findings. Such a task will be completed in 2 weeks.

3.4.6

Review with stakeholders

The broad findings of the study based on relevant documents, earlier studies, field survey and consultation will be presented in the proposed national, regional and district level workshops/consultation meeting to get additional feedback and suggestions from concerned stakeholders.

3.4.7

Additional data collection and processing

Based on the outcomes and feedback of the workshop/consultation meeting with stakeholders at different level, additional information and data collection may be made through both secondary and where necessary and possible secondary sources. The additional data and information will again be processed and analyzed to give final shape to the findings. The outcomes will factor into WP6.

3.4.8

Work package 4


Input: Literature Review, Study Reports, Government Documents, Survey

Findings, Interviews and Consultations

Main activities: Desk review of relevant literature, data and information


Field survey/interview

Field work/consultation

Data collection and consultation

Page 26 of 50


Deliverables:

Team:

Data processing and analysis

Review with stakeholders


Structure input for strategy report

Input for Task 6

Main contributor to this task is KE-4 with input from other experts.

Support and output review will be delivered by KE-1.

3.5

WP 5: Role of local communities in REDD+ activities

3.5.1

Introduction

Local and indigenous communities in Nepal have been stewards of forests for centuries. These communities with the virtue of their spiritual and subsistence relation to forest resources have their own traditional practices for its proper conservation and management. These peoples are the ones who heavily rely on forest resources 1 , for fuel grasses, and fodder in their day to day life. Besides that, they even harvest a considerable amount of wild fruits, tubers, nuts, condiments, green vegetables, and most importantly the medicinal plants for their family as well as livestock. They possess traditional and empirical knowledge regarding the medicinal value of plants found in their forest; and they have skills to process the plants, which they have been preserving for long—properly for treatment of the populace and their cattle. Existing legal frameworks and development policies in forestry sector, to some extent, have also recognized this local management, and have sought to give local and indigenous people a greater share of responsibility.

Nepal’s CFUGs have been involved in protecting and restoring 1.2 million hectares (20.68 percent) 2 of

Nepal's forests since they were formalized in 1993. Numbering around 18,000, they provide an example of multi-stakeholder participation and social inclusion. Leadership comes from different ethnic and caste groups and includes women. Participation of these groups, particularly women’s involvement in CF is ever improving, and the national data base maintained at the Community

Forestry Division shows that women participation is 24 percent and there are about 600 CFUGs managed by women only committees.

CFUGs have legal personality, earn and manage funds generated from forest use, and devise their own operational plans. They develop and enforce their own constitutions in a participatory manner, overseeing governance mechanisms that ensure transparency and accountability such as financial audits, well-being ranking, public hearings and submission of annual reports to the district forest office. In addition, some CFUGs, particularly under FSC certification monitor the condition of the

1

2

Nearly two-third of the total households (about 64 percent) in Nepal use Firewood as usual source of fuel for cooking and 28 % households have built their homes with woods and branches (CBS, 2011).

Rosenbach, D.W; Jessica Whittemore & Joel DeBoer( 2013) Community Forestry and REDD+ in Nepal,

A project submitted in partial fulfilment of the requirements for the degree of Master of Science

(Natural Resources and Environment) at the University of Michigan. USA

Page 27 of 50

Inception Report FCPF/REDD/S/QCBS-20 forest and biodiversity as well as their own group's governance mechanisms and compliance with local rules, and develop their own indicators to monitor social and environmental development.

Thus, the CFUGs can be considered as a potential modality for the implementation of REDD+ projects and activities. However concerns about the rights of indigenous people and communities dependent on forests and the impact of REDD+ programs on such groups must be addressed adequately. The likely restrictions imposed by REDD+ on forest exploitation may be a move in the direction of meeting national and international conservation and mitigation objectives at the cost of real rights at local levels, and may come into direct conflict with adaptation and the basic needs of local communities. Focusing only on REDD+ while neglecting community (or local level) rights over forests may threaten the most vulnerable communities, and ultimately the global commons. The REDD+ approaches and benefits can and must be additional to basic approaches of sustainable forest management (SFM) under CF regime with decision-making and benefits devolved to local communities; not the reverse. To reduce deforestation and forest degradation in developing countries like Nepal, it is essential to promote solutions involving local people in the sustainable management of forests; and at the same time linking incentive mechanisms with livelihood options.

On the other hand, there is a danger that a national-level approach to REDD+ could reverse the gains that have been made in the last 20 years in the decentralization of forest management and the recognition of community rights over forest products. Doubts have been expressed about the effectiveness of REDD+ at the grassroots level given the political and economic pressures involved and poor forest governance. Concern has also been raised – particularly by non-governmental organizations (NGOs) and in the bilateral donor sector – about whether local communities will receive any economic rewards from REDD+, especially where collective tenure and customary practices are not legally recognized 1 . The key requirement is -- clear plans for benefit sharing mechanisms and meaningful participation of local people in the REDD+ activities and projects. The participation plan should seek participation of local and Indigenous Peoples through Free, Prior and

Informed Consent (FPIC) since Nepal is not only a signatory to the United Nations Declaration on the

Rights of Indigenous Peoples (2007) and International Labor Organization (ILO) Convention (169),

1989 in 2007, but FPIC is also an integral part of REDD+ under the UNFCCC process.

This topic has strong links with the financing mechanism that needs to be designed and the Forest

Carbon Trust Fund that is one of the Strategic Directions of Nepal’s government. Obviously, sound and broadly accepted and supported Benefit Sharing Mechanisms (BSM) will be of paramount importance to the success of REDD+ activities that involve communities. In addition, community involvement can contribute significantly to the NFMS and NAFIMS.

3.5.2


There is ongoing debate in Nepal and elsewhere about the possible contribution of REDD+ activities and projects towards the poor and forest dependent communities and how and to what extent the

1 Though the Community Forest (CF) guidelines incorporate the inclusion policy in leadership and ensure the protection of customary practices and traditional knowledge, the forest Act, 1993 and Forest

Regulation, 1995, do not address the issues of indigenous peoples’ collective forest and land management system explicitly.

Page 28 of 50


REDD+ activities and projects will be beneficial to local communities. There are scholars who emphasize that the primary role of mechanisms such as REDD+ is to deliver climate change mitigation or other ecosystem services effectively and it has nothing to do for poverty reduction directly but they should be designed so as not to harm the poor. Some scholars, on other hands, call for a greater inclusion and recognition of forest peoples’ rights and suggest for ensuring people’s participation in decision making affecting them and development of mechanism for equitable distribution of forest benefits.

Thus intensive review of existing literatures is required to digest the strengths and weakness of community involvement in forest management and to identify outstanding issues that must be addressed in order to ensure that REDD+ implementation does not result in ineffectiveness, inefficiencies and inequities with negative consequences for both Nepal’s forests and the people that depend on them for their livelihoods. The following sources of literature have been identified for review and these sources will guide the additional literatures required for further review and the need for consultation, and on what topics consultation is needed (see section 3.5.3).

1.

Rosenbach, D.W; Jessica Whittemore & Joel DeBoer( 2013) Community Forestry and REDD+ in Nepal, A project submitted in partial fulfilment of the requirements for the degree of

Master of Science (Natural Resources and Environment) at the University of Michigan. USA

2.

Agrawal, A., & Angelsen, A. (2009). Using community forest management to achieve REDD+ goals. Realizing REDD+: National Strategy and Policy Options, 201-212.

3.

Dangi, R. (2012). REDD+: issues and challenges from a Nepalese perspective. In D. C. Devkota,

B. K. Uprety & T. N. Bhattarai (Eds.), Climate Change and UNFCC Negotiation Process.

Kathmandu: MoEST Publications.

4.

Gurung, N. (2011). ICIMOD pilots first Forest Carbon Trust Fund in Nepal: helps communities benefit from forest conservation and sustainable use, available at: http://www.icimod.org/?q=3743

5.

ICIMOD, ANSAB, & FECOFUN. (2011). Operating guidelines of Forest Carbon Trust Fund 2011:

ICIMOD, ANSAB, FECOFUN.

6.

Ministry of Forests and Soil Conservation. (2011). Study on REDD Plus Piloting in Nepal.

Kathmandu: REDD Forestry and Climate Change Cell.

7.

MoFSC. (2010). Nepal’s Readiness Preparation Proposal (R-PP): REDD 2010-2013. Ministry of

Forests and Soil Conservation (MoFSC), Kathmandu, Nepal.

8.

MoFSC ( 2011) Role of Forest in Climate Change Adaptation. Kathmandu: REDD Forestry and

Climate Change Cell.

9.

Sherpa, P.D. (2012). Issues and challenges related to the rights and livelihoods of indigenous peoples' in REDD+ National REDD+ processes: A compilation of case studies to inform negotiations at COP 18: ACCRA Caucus on Forests and Climate Change.

10.

IUCN (2010) Briefing Document: Indigenous People and Climate Change/REDD

Page 29 of 50


3.5.3

Collecting additional data and information

3.5.3.1

Review of literatures and Desk Survey

Review of literature will be carried out primarily on the following themes and topics in order to understand the possible role and contribution of local communities to implement REDD+ activities and projects.



Community Involvement in forest management : forest dependent communities and their role, rights and responsibilities in forest management



Assessment of local and indigenous communities' involvement in REDD+ readiness process



Social impacts of REDD+ activities and corresponding safeguard measures



Relevant Forest laws and policies related to social safeguards and REDD+ activities o Forest Policy, Acts and Regulations o Climate Change Policy o Interim Constitution of Nepal o Environmental Policy, Act and Regulations, EIA Guidelines o Local Governance Act and Regulations o Act on National Foundation for Development of Indigenous Nationalities, 2000 o Community Forestry Rules and Regulations, Guidelines and Manuals o ILO Convention on Indigenous and Tribal Peoples, 1989 (No.169) o United Nations Declaration on the Rights of Indigenous Peoples, 2007

3.5.3.2

Stakeholder Consultations

The findings of the desk survey and review of literature will be substantiated and supplemented with stakeholder consultations. All the consultations at national, regional and local levels for this task will be carried in parallel with the consultations organized for WP2. The consultations will be guided by a checklist prepared after reviewing available literature. The consultations will structure in the most appropriate format, which may include: Key Informant Interview (KII), Focused Group Discussions

(FGD), workshop/round table discussion, or group interview where appropriate.

The key stakeholders for national level consultation may include:



Responsible officials from Ministry of Forest and Soil Conservation (MoFSC), Department of

Forest (DoF), Division of Community Forestry, REDD-Forestry and Climate Change Cell



Representatives from Private Forest Network, Federation of Forest Product Traders and

Federation of Herbal Trade



Representative from Nepal Foresters’ Association, Federation of Community Forestry Users

Nepal (FECOFUN), Association of Collaborative Forest Users Nepal (ACOFUN), Nepal

Federation of Indigenous Nationalities (NEFIN), NGO Federations, Nepal Federation of

Environmental Journalists (NEFEJ), Association of Forest Technicians Nepal, Ranger

Association of Nepal and Junior Forest Technician Association

As identified under WP2, the Regional level consultations will be held in each Development Region.

The key stakeholders may include:

Page 30 of 50




The regional forestry officials,



Representatives of civil society organizations active in forestry sector



Representatives of local forest users,



NGOs, INGOs, academics and other stakeholders involved in forestry sector



Representative from regional level caste/ethnic and women organizations

As identified under WP2, the district level consultation will be held in 15 districts covering all fivedevelopment regions and the four main ecological zones of Nepal (Tarai, Chure and inner Tarai,

Middle Hills and High Mountains). The key stakeholders may include:



Officials of the line ministries and government agencies



Representative of political parties, DDC, VDC and Civil society organisations,



Representatives of Dalits, Women & Indigenous People's organizations,



Representatives of LFUGs , CFUGs and other relevant stakeholders

At community level, several Focused Group Discussions and key informant interviews will be held targeting forest-dependent communities, Dalits, women, and indigenous people.

3.5.4


The data collected through various tools and sources as described above will be analyzed using both descriptive and analytical methods. Qualitative data like socio-cultural characteristics, knowledge, practices and attitudes and perceived need and problems expressed, suggestions and comments made by the stakeholders at different levels will be analyzed by describing and explaining them in the appropriate contexts under different categories and sub-headings.

3.5.5


An appropriate section in the REDD+ Strategy Report will be providing details regarding different options for involvement of the local communities in the implementation of the REDD+ activities

3.5.6

Work Package 5


Input: Relevant literature, reports, R-PP

Main activities:

Deliverables:

1.


2.


3.


4.


5.


6.


7.


Input for Task 6

Team: Main contributor to this task is KE-4. KE-2 will organize and guide the consultation workshops. Support and output review will be delivered by KE-1.

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3.6

WP6: Elaboration of the REDD+ Strategy Report

This work package brings together all material generated in the WPs 2-5 and compile it into a consolidated draft REDD+ Strategy. Besides being based on all reports that have been generated to date in the context of the REDD Readiness process in Nepal, the Strategy will be developed in a participatory manner involving various stakeholders at different levels; all within the limits given by the available timeframe and resources.

The results of the WPs 2-5 will be synthesized and structured along the lines of the consolidated framework structure for the National REDD-plus Strategy of Nepal as provided in Annex 1 and a draft

Strategy report will be generated. This draft Strategy report will be discussed in a Round Table meeting in which appropriate stakeholders will participate including government officials and members of the REDD Cell.

Feedback collected during the Round Table meeting, as well as during the consultation period will be processed into the draft Strategy report and a final draft Strategy report will be generated which will be delivered to the Client. Following the submission of the final draft Strategy report the REDD Cell can engage in the next steps in the process: the nation-wide awareness raising and consolidation phase.

The main activities in this WP6 are:

1.

Synthesis and structuring of Tasks results

2.

Preparation of draft Strategy report

3.

Presentation of report: Round table meeting

4.

Feedback from Client

5.

Report delivery

Page 32 of 50


4 Relationship between the Work Package and the

Framework Structure for the REDD+ Strategy

As part of the contract QCBS-20 a critically important Annex A was introduced that contains a

“Consolidated Framework Structure for National REDD-plus Strategy of Nepal”. This Annex present what can be used as the Table of Contents (ToC) for the end deliverable of this project, being the

REDD+ Strategy document. To illustrate that all topics in that ToC are covered by the various work packages the table below has been prepared.

Page 33 of 50

Topic/subtopic Methodology End

Responsible

KE/s 1

I: INTRODUCTION

1.1 REDD+: Concept and Evolution Review of relevant documents including decisions of COP 11 to COP 19. 1

1.2 REDD+ in Nepal’s Context Review and analysis of relevant data, studies, documents and reports

1.3 Nepal’s Journey towards REDD+ Study and review of relevant studies, reports, policies, and plans including R-PIN, R-PP, ER-PIN.

1.4 National REDD+ Strategy

Formulation Process

Study the reports and minutes; Capture the process followed including a process diagram

II: GUIDING FEATURES OF

NEPAL’S REDD+ STRATEGY

2

2

2

2.1 Strategic Directions 2, 3

Vision; Mission, Objectives, Guiding

Principles

Capture the ideas from consultations and desk review for vision, mission, objectives, and guiding principles;

Use professional and logical judgments to craft statements; Review the relevant documents, development priorities, R-PP and ER-PIN to identify guiding principles.

2, 3

Scope, Scale, Implementation

Approach

Analysis of REDD+ implementation and learning from Nepal and elsewhere; Validation through consultations.

2, 3

1 These is/are the KE/s that has end responsibility for the section but other KEs will contribute

Page 34 of 50


Financing Mechanism, Forest

Reference Level (RL), Forest Carbon

Trust Fund

Analysis of relevant documents. 2, 3

2.2 Existing Policy and Institutional

Context for REDD+

2.2.1 Forest, Biodiversity,

Environment and Climate Change

Related

Review and synopsis of Forest Policy, Acts and Regulations; Climate Change Policy; National Land Use

Policy; National Rangelands Policy (Rashtriya Kharka Ain); National Parks and Wildlife Conservation Acts and

Regulations; National Biodiversity Strategy and Action Plan; National Wetlands Policy; National Water

Policy/Strategy; National Irrigation Policy; National Hydro-power Policy; Environment Act and Regulations

(EIA guidelines for sectors); National Adaptation Plan of Action (NAPA) and Local Adaptation Plan of Action

(LAPA)

3

2.2.2 Social and Environmental

Safeguards Related

Review of Interim Constitution of Nepal; Environmental Policy, Act and Regulations, EIA Guidelines; Local

Governance Act and Regulations; Act on National Foundation for Development of Indigenous Nationalities,

2000; Community Forestry Rules and Regulations, Guidelines and Manuals   ; Buffer Zone Management

Rules and Regulations/Guidelines; Conservation Area Management Rules and Regulations; Participatory

Watershed Management Guidelines; Collaborative Forest Management Guidelines and others

4, 2

Review of any safeguard documents prepared for forestry sectors

III: REDD+

PREPARATION

STRATEGY

3a Assessment of Land Use, Land

Use Change Drivers, Forest Law,

Policy, Governance

3a.1 Assessment of land use

2

3a.1.1 Land use trends

3a.1.2 Efforts to-date to (address deforestation and forest degradation) maintain and improve forest land use

Study of R-PP, relevant documents, reports and analysis of policy and programs to improve forest land use;

Assessment of relevant land use, land tenure and NR right issues under different forest management regimes. Assessment of the role that other, forestry related sectors play in land use, policy and governance processes .

2, 3

Page 35 of 50


3a.1.3 Assessment of land tenure and associated governance issues

Participatory consultations with stakeholders.

Consultation and review of previous and ongoing efforts/ pilot studies addressing deforestation and forest degradation (e.g. Hariyo Ban). 3a 1.4 Assessment of natural resource rights and the associated

governance issues

3a.2 Assessment of Land Use

Change Drivers

3a.2.1 Identification and prioritization of drivers of deforestation and forest degradation

Review of different studies on drivers of D and FD including R-PP and ER-PIN; Analysis of underlying causes identified by the studies; Refinement and prioritization through stakeholder consultations. Assessment of the role that other, forestry related sectors play.

2, 1

3a.2.2 Analysis of the underlying causes of drivers of deforestation

and forest degradation

3, 2 3a.3 Assessment of Forest Law and

Policy in the context of REDD+

Review of existing Forest, Biodiversity, Environment and Climate Change related laws and policies will be carried out.

3a.3.1 Strength and Shortcomings of Forest Law and Policy in the context of REDD+

The institutional context will be assessed as well as the strength and weakness of various institutional arrangement discussed as proposed by the RPP

3a.3.2 Policy and/or Programmatic

Measures taken to overcome the existing shortcomings and their outcomes

3a.3.3 Way forward to address the key drivers of deforestation and

Page 36 of 50

Inception Report FCPF/REDD/S/QCBS-20 forest degradation through refinement in policy, law and

implementation approaches

3a.4 Assessment of the governance situation in the context of REDD+

Desk study of R-PP and relevant studies and assessment of governance situation in the context of REDD+, including multi-level stakeholder consultations and interviews.

3a.4.1 Existing governance structures and mechanisms – the extent to which they are conducive to REDD+

Assessment of governance structures, mechanisms in the forestry as well as the related non-forestry sectors.

3a.4.2 Measures taken in the past to overcome the identified shortcoming and their outcome

A detailed institutional analysis of the various institutions related to REDD+ that has been established or functioning at various levels will be done using the SWOT analysis tool. The analysis will be primarily focused on strength and weakness of governance issues and capacity and human resources of the institutions to transform opportunities into actions for better positive outcomes and manage the emerging socio-political and economic threats.

3a.4.3 Way forward to address the deforestation and forest degradation through improvement

in governance situation3b. REDD+

Strategy Options Assessment

3, 2

3b Strategy Options

3b.1 Identification and selection of strategy options

3b.2 Feasibility assessment of selected strategy options and the risk mitigation measures

3b.3 Action Plan for the implementation of strategy options

Review of R-PP, ER-PIN and other relevant studies; and update and refine through stakeholder consultations.

2

Obtain ideas for action plans from consultations and use best professional judgments.

The steps will be:





Formulation of REDD+ strategic options.

Comprehensive feasibility assessment of each strategic option with o Socio-economic, political and institutional context o Cost and benefit in relation to peoples‟ livelihoods and biodiversity o Major risks associated; leakage, SESA identified environmental and social risks



Propose ways to manage and mitigate all such risks

 Review each strategic option to ensure they are fully integrated with the country’s overall development policies and strategies



Develop an action plan, including the funds required to implement the actions plans.

3, 2

2

Page 37 of 50


3c. REDD+

Framework

Implementation



Account for major inconsistencies between the objectives of the REDD+ strategy and policies/programs of other sectors (e.g. agriculture and irrigation, water and energy, tourism, roads and other infrastructure)



Provide ways to address and work to resolve such inconsistencies

Desk study on existing knowledge and information about the linkages of REDD + in the conservation, sustainable management of forests and enhancement of forest carbon stocks. Additional studies and reports of REDD+ implementation and pilot projects of Nepal and elsewhere will be collected for exploring highly successful and effective implementation institutional framework and approaches. 3c.1 Institutional, Economic and

Governance Arrangements

Review of existing Forest, Biodiversity, Environment and Climate Change related laws and policies.

3c.1.1 Institutional Structure (for the implementation of REDD+ strategy/program)

3c.1.2 Governance Arrangement

(for the Implementation of REDD+ strategy/program)

The institutional context will be assessed and the strength and weakness of various institutional arrangement discussed and proposed by the RPP will be analyzed by focusing on the major elements of

Institutional framework (policy and legal provision, gender and social inclusion, geographical representation, decentralization/ delegation of power/authority, and provision of maintaining good governance (indicators of Governance).

3c.2 Legal Arrangements

3c.3 Gaps remaining in the

Implementation Framework

Based on this analysis and consultation appropriate REDD+ implementation framework consisting of institutional structure, and governance and legal arrangements including social and environmental safeguards will be identified and gap analysis will be performed.

3, 2

3, 2

3, 2

3, 2

3d Social and Environmental

Impacts

Desk review and consultations with stakeholders to assess the likely impacts of the REDD+ activities being implemented and /or to be implemented in terms of:

4, 2

 Displacement of forest dependent communities

 loss of income and livelihood

 restriction to access to community resources



Issues related to forest dependent communities (IPs and vulnerable groups)



Issues related to REDD+ benefit sharing



Climate impact





Impact on biodiversity

Impact on other landuse

Page 38 of 50


IV SETTING UP THE REFERENCE

LEVEL (RL)

2, 1

4.1 Nepal’s Existing Circumstances with respect to setting RL

4.2 Methodology and Approach for setting the RL

4.3 Functioning of the Preliminary

RL at National and Sub-National

Level

4.4 Proposal for Further

Adjustment in RL

4.5 Work Plan for Proposed

Adjustment in the RL

Desk study of relevant studies such as ER-PIN, National RL document from the ongoing consultancy

(CAMCO) of REDD-cell. For more detailed quantification of carbon stocks of Tarai Forests the estimation of the carbon stock of forests of Nepal made by Forest Resource Assessment Project (FRA) will be used.

Review of the consultancy study on drivers of deforestation and forest degradation which includes a.o. a data availability assessment and gap analysis.

2, 1

2, 1

Desk study on approaches, methodologies and lessons learned for setting RL in other countries.

2, 1

Consultations with experts to include their concerns, experiences and practices of

2, 1

2, 1

V: MONITORING SYSTEMS FOR

FORESTS AND SAFEGUARDS

Page 39 of 50


5.1 Nepal’s National

Monitoring System (NFMS)

Forest Review of R-PP, relevant documents, studies and reports to provide provide quantitative or qualitative variables on the non-carbon aspects such as livelihood enhancement, biodiversity conservation, ecosystem services provision, key governance factors pertinent to REDD+ implementation, and impacts of the REDD+ strategy on the forestry sector.

2

5.1.1 Design and Operational

Mechanism of Nepal’s NFMS 2

5.1.2 Rationale for the Selection of

Methods Used (/Proposed) in the

System

The monitoring and data/information management and reporting system the existing systems and capacities will be assessed and National Forest Monitoring System and National Forest Information

Management System will be developed in consistence with UNFCCC.

2

5.1.3 Action Plan to Institutionalize a Fully Operational NFMS

Review and study the implementation aspects of GIS based National Forest Information Management

System (NAFIMS) for REDD and use the learning.

5.1.4 Stakeholder Participation in course of NFMS Development

Participatory consultations with all levels of stakeholders to include their concerns, experiences and practices

4

5.2 Information System for

Multiple Benefits, Other Impacts,

Governance and Safeguards

5.2.1 The National Forest

Information Management System

(NAFIMS)

Review of study of relevant studies and publications.

Build on the eight principles of REDD+ social and environmental safeguards as: i) recognition of rights, ii) equitable sharing of benefits, iii) livelihoods security and well-being of indigenous people and vulnerable communities, iv) sustainable development, human rights and good governance, v) biodiversity and ecosystem services maintenance and enhancement, vi) ensured equitable participation, vii) ensured access to information and in decision making; viii) complying with national laws and international obligations.

2

Identify priority non-carbon aspects directly pertinent to REDD+ implementation in Nepal.

Suggest a transparent National Forest Information Management System (NAFIMS) for monitoring and reporting

Ensure/demonstrate that the information for agreed national priorities is readily available and   reveals the impacts on identified priority non-carbon aspects

Identify gaps in R-PP and suggest work plan to address these gaps.

Page 40 of 50


Page 41 of 50

5 Expected outputs

The fore lying report is the output of WP1: the inception report. WP2 thru to WP5 provide input to WP6 and do not have distinguishable deliverables. The output of WP6 is the actual REDD+ Strategy Report.

Page 42 of 50

6 Planning

Page 43 of 50


N° Work packages

WP1 Work Package 1: Inception

1. Task inception

2. Delivery of inception report - Deadline 04/07

Weeks

1 week starting on Monday 30-jun

4-jul

WP2

Work Package 2: Identification, validation and prioritisation of Drivers of

Deforestation and Forest Degradation, Strategy options and intervention activities

1. Desk review of relevant literature

2. Preparation of data collection and selection of sites

3. Data collection: consultations

4. Data processing and analyses

5. Trade-off analysis

6. Analysis of strengths/ opportunities/ challenges/ threats

7. Risk analysis

8. Feasibility analysis

9. Review by REDD Cell and other Stakeholders - Deadline 06/09

10. Additional data collection and processing

11. Construction of a risk framework

12. Structure input for Strategy Report

WP3 Work Package 3: Implementation approach for the REDD+ strategy





5. SWOT analysis




WP4 Work Package 4: Role of non-forest sector in REDD+ implementation








WP5 Work Package 5: Role of local communities in REDD+ activities








WP6 Work Package 6: ELABORATION OF THE REDD+ STRATEGY REPORT

1. Synthesis and structuring of Tasks results

2. Preparation of draft Strategy report

3. Presentation of report: Round table meeting

4. Feedback from REDD Cell - Deadline 24/10

5. REDD+ Strategy Report delivery - Deadline 31/10

2

7-jul

3

14-jul

4

21-jul

5

28-jul

6

4-aug

7

11-aug

8

18-aug

9

25-aug

10

1-sep

11

8-sep

12

15-sep

13

22-sep

14

29-sep

15

6-okt

16

13-okt

17

20-okt

18

27-okt

26-sep

26-sep

26-sep

26-sep

24-okt

31-okt

Page 44 of 50

-


Consultations Weeks

1 week starting on Monday 30-jun

National Consultations

Inception workshop - Kathmandu

Progress sharing workshop - Kathmandu

Final sharing workshop - Kathmandu

Regional Consultations

Eastern development region - Biratnagar/Dhankuta - Hills/Terai

Central development regions - Hetauda - Siwalik, hills, bhawar, terai

Western development regions - Pokhara - Mid-hills

Mid-western development regional - Ghorahi, Dang - Inner terai

Far-western development regions - Dhangadi, Kailali - Terai

Local/Distric Consultations

Eastern development region (3) - Sankhuwasabha, Dhankuta, Sunsari -

High mountain, hills, terai

Centre development region (3) - Dolakha, Chitwan, Makwanpur - High mountain, siwalik, inner terai

Western development region (3) - Nawalparasi, Kapilbastu, Gorkha -

High mountain, terai

Mid-western development region (3) - Arghakhanchi, Dang, Banke, -

Mid hill, inner terai, terai

Far-western development region (3) - Dadeldhura, Kanchanpur, Kailali -

Mid hill, terai

2

7-jul

3

14-jul

4

21-jul

5

28-jul

6

4-aug

7

11-aug

8

18-aug

9

25-aug

10

1-sep

11

8-sep

12

15-sep

13

22-sep

14

29-sep

15

6-okt

16

13-okt

17

20-okt

18

27-okt

- - - E N D of MAIN BODY TEXT Inception Report - -

Page 45 of 50

REDD-Forestry and Climate Change Cell

Ministry of Forests and Soil Conservation Babarmahal, Kathmandu, Nepal

FCPF/REDD/S/QCBS-20:

Inception Report - Annexes

Face the Future, The Netherlands

In association with Arbonaut, Finland; Practical Solution Consultancy Nepal (PSPL) and Nepal

Environmental and Scientific Services (NESS)

Amsterdam, 2014

Page 46 of 50


Annex 1: References

CBS ( 2008). Environment Statistics of Nepal, Kathmandu: Central Bureau of Statistics.

CBS (2011). Nepal Living Standard Survey, Kathmandu: Central Bureau of Statistics.

CBS (2013). National Sample Census of agriculture, Kathmandu: Central Bureau of Statistics.

Centre for Energy Studies (2013). Study on Role of Renewable Energy Technologies in Climate Change

Mitigation and Adaptation Options in Nepal, Kathmandu: Centre for Energy Studies

Centre for Rural Technology (2005) National Energy situation Survey Report, Kathmandu: Centre for

Rural Technology Nepal.

CIFR (2012). Analysing REDD+ Challenges and choices Angelsen Edit, Indonesia: Center for

International Forestry Research.

Dhital, N. (2009). Reducing Emissions from Deforestation and Forest Degradation (REDD) in Nepal:

Exploring the Possibilities, Journal of Forest and Livelihood 8(1) February 2009

FAND USES IN NEPAL

FAO ( 2010). Land Use Policy and Planning, Kathmandu: FAO.

Joshi et al (2010). Moving Beyond REDD: Reducing from All Land Uses in Nepal, Kathmandu: ASB

(Partnerships for the Tropical Forest Margin).DONS

Kanel, K. (2012). A Study on The Demand and Supply of Wood Products in Different Regions of Nepal,

A Report Submitted to: REDD – Forestry Climate Change Cell, Babarmahal, Kathmandu.

Magrath, W.B. (2013), Nepal Forest Sector Survey: Policy Priorities and Recommendations,

Washington: Program on Forests (PROFOR) (www.profor.info/knowledge).

MFSC (2008). Forest Carbon Partnership Facility Readiness Plan Idea Note (R‐PIN) Nepal. Available at: http://carbonfinance.org/Router.cfm?Page=FCPF&FID=3 4267&ItemID=34267 (Accessed on August

17, 2008).

MFSC (2010). Nepal’s Readiness Preparation proposal REDD 2010-2013, Kathmandu: Ministry of

Forests and Soil Conservation.

MFSC (2012). Framework Structure: National REDD-plus Strategy of Nepal, Kathmandu: Ministry of

Forests and Soil Conservation (REDD-Forestry and Climate Change Cell).

MOAD (2010). Agriculture Development Strategy, Kathmandu: Ministry of Agriculture Development.

MOF (2013). Economic Survey 2012/13, Kathmandu: Ministry of Finance.

ND USES IN NEPALREDUCING EMISSIONS FROM ALL

NPC (2013). Approach Paper of Three Year Plan (2013-2016), Kathmandu: National Planning

Commission.

REDD+ National Strategy: Indonesian REDD+ Task Force, June 2012( www.satgasreddplus.org).

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UNEP (2010). Green Economy: Driving a Green Economy through Public Finance and Fiscal Policy

Reform (www.unep.org/greeneconomy), New York: UNEP.

World Bank (2011). Large-Scale Migration and Remittances in Nepal: Issues, Challenges and

Opportunities, Washington: World Bank.

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Annex 2: “ Consolidated framework structure for National

REDD-plus Strategy of Nepal ”

I: INTRODUCTION

1.1 REDD+: Concept and Evolution

1.2 REDD+ in Nepal’s Context

1.3 Nepal’s Journey towards REDD+

1.4 National REDD+ Strategy Formulation Process

II: GUIDING FEATURES OF NEPAL’S REDD+ STRATEGY

2.1 Strategic Directions



Vision; Mission, Objectives, Guiding Principles



Scope, Scale, Implementation Approach



Financing Mechanism, Forest Reference Level (RL), Forest Carbon Trust Fund

2.2 Existing Policy and Institutional Context for REDD+

2.2.1 Forest, Biodiversity, Environment and Climate Change Related

2.2.2 Social and Environmental Safeguards Related

III: REDD+ STRATEGY PREPARATION

3a Assessment of Land Use, Land Use Change Drivers, Forest Law, Policy, Governance

3a.1 Assessment of land use

3a.1.1 Land use trends

3a.1.2 Efforts to-date to (address deforestation and forest degradation) maintain and improve forest land use

3a.1.3 Assessment of land tenure and associated governance issues

3a 1.4 Assessment of natural resource rights and the associated governance issues

3a.2 Assessment of Land Use Change Drivers

3a.2.1 Identification and prioritization of drivers of deforestation and forest degradation

3a.2.2 Analysis of the underlying causes of drivers of deforestation and forest degradation

3a.3 Assessment of Forest Law and Policy in the context of REDD+

3a.3.1 Strength and Shortcomings of Forest Law and Policy in the context of REDD+

3a.3.2 Policy and/or Programmatic Measures taken to overcome the existing shortcomings and their outcomes

3a.3.3 Way forward to address the key drivers of deforestation and forest degradation through refinement in policy, law and implementation approaches

3a.4 Assessment of the governance situation in the context of REDD+

3a.4.1 Existing governance structures and mechanisms – the extent to which they are conducive to REDD+

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3a.4.2 Measures taken in the past to overcome the identified shortcoming and their outcome

3a.4.3 Way forward to address the deforestation and forest degradation through

improvement in governance situation3b. REDD+ Strategy Options Assessment

3b Strategy Options

3b.1 Identification and selection of strategy options

3b.2 Feasibility assessment of selected strategy options and the risk mitigation measures

3b.3 Action Plan for the implementation of strategy options

3c. REDD+ Implementation Framework

3c.1 Institutional, Economic and Governance Arrangements

3c.1.1 Institutional Structure (for the implementation of REDD+ strategy/program)

3c.1.2 Governance Arrangement (for the Implementation of REDD+ strategy/program)

3c.2 Legal Arrangements

3c.3 Gaps remaining in the Implementation Framework

3d Social and Environmental Impacts

IV SETTING UP THE REFERENCE LEVEL (RL)

4.1 Nepal’s Existing Circumstances with respect to setting RL

4.2 Methodology and Approach for setting the RL

4.3 Functioning of the Preliminary RL at National and Sub-National Level

4.4 Proposal for Further Adjustment in RL

4.5 Work Plan for Proposed Adjustment in the RL

V: MONITORING SYSTEMS FOR FORESTS AND SAFEGUARDS

5.1 Nepal’s National Forest Monitoring System (NFMS)

5.1.1 Design and Operational Mechanism of Nepal’s NFMS

5.1.2 Rationale for the Selection of Methods Used (/Proposed) in the System

5.1.3 Action Plan to Institutionalize a Fully Operational NFMS

5.1.4 Stakeholder Participation in course of NFMS Development

5.2 Information System for Multiple Benefits, Other Impacts, Governance and Safeguards

5.2.1 The National Forest Information Management System (NAFIMS)

- - - E N D of Appendices - - -

- - - E N D of Inception Report - - -

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