Innovations in Equity: How Countries Are Approaching REDD+ Benefit Sharing Plans
Following more than a decade of REDD+ readiness and implementation of specific actions to reduce deforestation and forest degradation, many forested countries are now starting to approach the Results-based Payments phase. Before receiving these payments, each country must prepare a Benefit Sharing Plan (BSP). These plans lay out the basic strategies by which funds will be distributed. The objective is to distribute these funds equitably, while also maximizing emissions reductions. In attempting to balance these two goals, the question - “what is equity?” - looms large. With so many competing ideas around proper BSPs, it is useful to look at how some nations have interpreted these ideas into innovative BSPs. Chile, Ghana, and Nepal each provide interesting case studies that showcase valuable options in the design of BSPs.
The Republic of Nepal offers another way to incorporate equity in benefit sharing through its BSP for the 13 Terai Arc Landscape Districts. In this case, most benefits are monetary payments which are distributed to forest communities and, to a lesser extent, government authorities managing forested lands. Achieving equity is based on certain allocation criteria and how funds are used once received. In terms of allocation, five percent of all the REDD+ emissions reduction payments that the nation receives are dedicated to poverty alleviation. These go towards impoverished households who rely on forest resources. These payments do not directly compensate for emissions reduction actions but have a clear objective to support enhanced livelihood. Another, 75 percent of the national funding is considered “performance-based” and distributed to forest communities and government forest agencies. This performance is measured according to how much land a community manages and whether a sustainable management plan is in place. This means that communities that make an effort to manage land in a sustainable manner are compensated for their efforts – even if they are unsuccessful in achieving emissions reductions. When “performance-based” funds are received by forest communities, they are allocated as follows: 25 percent for forest development, conservation and management; 37.5 percent for poverty reduction, women’s empowerment and the development of forest-based enterprises; and, 37.5 percent for group welfare activities. Because these categories are so multi-faceted, and the payments are monetary, Nepalese communities can exercise a greater amount of flexibility in how they invest their REDD+ funds, while still ensuring they support community development. Overall, the 13 Terai Arc BSP goes beyond simply compensating for achieved emissions reductions by showing a focus on supporting those in need and those who work towards emissions reductions.
These examples from Chile, Ghana and Nepal represent different approaches to the distribution of Results-based Payments. Overall, they highlight a useful range of innovative options that could also serve to inform other nations as they move forward with the development of their own BSPs. The UN-REDD Programme remains committed to supporting countries in the development and implementation of their BSP schemes, including the provision of technical assistance in the clarification of carbon rights, beneficiaries' rights and legal arrangements.
Authors:
Tom Murray
Volunteer, REDD+ Team, FAO Forestry Division
[email protected] (alt: [email protected] )
Francesca Felicani-Robles
Forestry Officer, REDD+ legal matters, REDD+ Team, FAO Forestry Division
Serena Fortuna
Forestry Officer, REDD+ Team, FAO Forestry Division