ERPD CHILE Emission Reduction Program for the Carbon Fund of the - - PowerPoint PPT Presentation

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ERPD CHILE

Emission Reduction Program for the Carbon Fund of the FCPF

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Background of Chile Forestry Sector

Type of Forest Surface area (ha) % Shares in Forestry GDP Native Forest 14.269.672 83% 3% Planted Forest 2.872.000 16% 97%

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A set of direct and facilitative action measures based on a national technical and participatory formulation process focused on addressing Climate Change, Desertification, Land Degradation and Drought (DLDD) through vegetation resources in order to avoid and reduce historical rates of deforestation, de- vegetation and degradation of native forests, xerophytic formations and other vegetation

• formations. As well as promoting the recovery,

afforestation, revegetation and sustainable management of the native resources of Chile. The ERPD is the pilot subnational scale support of the ENCCRV to the Payments for Results.

What is the ENCCRV?

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Decrease social, environmental and economic vulnerability generated by climate change, desertification, land degradation, and drought of vegetation resources and the respective dependent

• communities. Aiming to increase resilience of the ecosystems and

contributing to the mitigation of climate change. Thus, enhancing the reduction and capture greenhouse gas emissions in Chile.

Objectives of the ENCCRV

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Validated by the Directive Council of CONAF on 11 October 2016 Validated by the Council

• f Ministers for

Sustainability on 14 November 2016 Officially published on 3 November 2016

Validation of the ENCCRV

Constructed and validated through a broad national participatory process 2014 - 2016

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The Chile INDC document indicates as one of the tools to achieve the goal of the Forestry INDC is the ENCCRV. This is ratified by the President of Chile in the CoP22, Marrakech, Morocco, 15 November 2016

Validation of the ENCCRV

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PREPARATION FUND

R-PP Approval Preparation Document Aprobación Reporte de Medio Término

Aprobación del R-Package

Aprobación R-PIN Nota de Idea de Preparación

USD 3,8 millones Washington D.C USD 5 millones San José de Costa Rica

2012 junio 2013 marzo 2015 noviembre septiembre diciembre mayo 2014 - junio

FONDO DE CARBONO

ER-PIN Documento de idea de Programa de Reducción de Emisiones (RE) USD 650.000 Bonn, Alemania

(ERPD)

Documento de Programa de Reducción de Emisiones

(ERPA)

Acuerdo de Pago por Reducción de Emisones

Implementación

2016 - 2020

Proceso de Preparación 2016

Accra, Ghana

Advance and Planification of FCPF Activites in Chile

PREPARATION FUND

R-PP Approval Preparation Document Approval Midterm Report

Approval of the R-Package

R-PIN Approval Preparation Idea Note

USD 3.8 million Washington D.C USD 5 million San José, Costa Rica

2012 June 2013 March 2015 November September December 2014 - June

CARBON FUND

ER-PIN Emission Reduction Program (ER) idea document USD 650,000 Bonn, Alemania

(ERPD) Emission Reduction Program Document (ERPA) Emission Reduction Payment Agreement

Implementation

2017 - 2020

Preparation Process 2016 - 2017

Accra, Ghana

Advance and Planning of FCPF Activities in Chile

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Associated organizations and other

• rganizations participating in the ER

Program

Responsible Entity for Management and Implementation

• f the ER Program

✓ Ministry of Agriculture of Chile ✓ National Forest Corporation (Forest Service)

International Donations

• World Bank, Swiss Cooperation, IDB, FAO, UNDP, UNEP.

Public Services

• Ministry of Foreign Affairs through the Directorate of Environment

and Maritime Affairs (DIMA) and its Agencies for International Cooperation and Development (AGICD).

• Ministry of Environment through its Department of Climate Change.
• Ministry of Agriculture and its Services. (AGAP), Forest Institute

(INFOR), Agrarian Innovation Foundation (FIA), Agricultural Development Institute (INDAP), Agricultural and Livestock Service (SAG), Natural Resource Information Center (CIREN).

• Ministry of Social Development.
• Ministry of Finance.

International Technical Assistance Winrock International, Climate Focus, Ernst Basler + Partner (Switzerland), CATIE (Costa Rica). National Technical Assistance National Firewood Certification System, TECO Group, Southern Austral Consulting, Universidad Austral de Chile (UACH), University of Chile, Universidad Mayor de Chile, Santiago Climate Exchange (SCX), Forest Engineers NGO for the Native Forest.

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Compromisos Nacionales NDC Marco Normativo e Institucional Forestal y Ambiental Política Forestal 2015-2035 PANCC 2017-2022 PANCCD 2016-2035 Objetivos del Desarrollo Sostenible ODS 2015-2030 Convenciones internacionales adoptadas por Chile CNULD-CMNUCC-CBD

Ambición y Justificación Estratégica para la ENCCRV y el Programa ER

✓ Enfocada directamente al cumplimiento del NDC Forestal de Chile. ✓ Integra aspectos asociados a la Convención de Lucha contra Desertificación y al Convenio de Diversidad Biológica con REDD+. ✓ Estrategia de carácter nacional que se inicia con el enfoque subnacional del Programa ER. ✓ Período 2017-2025. ✓ Enfoque subnacional que incluye 5 Regiones que representan 41% de los bosques nativos del país, y el 100% de bosques templados. ✓ Contempla las 5 Actividades REDD+.

National Commitments INDC Forestry and Environmental Normative and Institutional Framework Forestry Policy 2015-2035 PANCC 2017-2022 PANCCD 2016-2035 Sustainable Development Goals ODS 2015-2030 International Conventions adopted by Chile UNCCD-UNFCCC-CBD

Ambition and Strategic Justification for the ENCCRV and the ER Program

✓ Mainly focused on compliance with the Forestry INDC of Chile. ✓ It integrates aspects associated with the Convention to Combat Desertification and the Convention on Biological Diversity with REDD +. ✓ National strategy that starts with the subnational approach of the ER Program. ✓ Period 2017-2025. ✓ Subnational approach that includes 5 Regions representing 41% of the country's native forests. ✓ Contemplates the 5 REDD + Activities.

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ER Program Location

 Area with Native Forests under major pressure of deforestation and degradation.  11 of 12 Forest Types.

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Drought Land Degradation

Ecosystem and Vegetation Resources Vulnerability

Chile is especially vulnerable to climate change as is presents 7 of 9 vulnerability characteristics. Four of these characteristics are objectives of the ENCCRV.

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Methodological schema for the definition of causal factors, activities and action measures

Actions and Intervention Proposal of the ER Program

Technical and participatory identification of the causes.

1.

Homologation and prioritization of the causes by macrozones of Chile.

2.

Qualitative and quantitative characterization of the causes in terms of their negative effects in social, environmental and economic areas.

3.

Definition of activities and action measures to deal with the causes.

4.

Identification

• f

priority areas/communes to implement activities and action measures.

5.

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1.266

Participants

37%

Women

9%

Indigenous people

125

Participants

31%

Women

8%

Indigenous people

Regional Workshops National Workshops

Process of Formulation of the ENCCRV

Actions and Intervention Proposal of the ER Program

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Consults and Validation of interest groups

1813

Participants

Indigenous Participation and Dialogue Process

48%

Women

987

Communities

74

Participants

35%

Women

15%

Idigenous peoples

R-Package

506

Participants

Citizen Consultation

41%

Women

42%

Regional Participation

Actions and Intervention Proposal of the ER Program

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Action Mensures Activities Drivers REDD+

Drivers, Activities and Measures Scheme

Actions and Intervention Proposal of the ER Program

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Actions and Intervention Proposal

• f the ER Program

Definition of priority communes for the implementation of Action Measures

Study of the socio-economic impacts of the ENCCRV action measures in the priority areas

Communes Prioritization (f) =

• Reference Emission Level
• Ecosystem vulnerability to CC and DDT
• Socioeconomic vulnerability to CC and

DDT

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Ongoing projects in the Area of Accounting

Support of the Restoration Plan for the China Muerta National Reserve in the Framework of the National Strategy for Climate Change and Vegetable Resources

• f Chile

Región de La Araucanía

Logging and Climate Change Project

Regiones de La Araucanía, Los Ríos, Los Lagos y Aysén

Restoration of native forest with emphasis on the provision

• f water resources

Región del Bíobío

Restoration of native forest with emphasis on the provision

• f water resources

Región de Los Ríos

Sustainable Land Management Intervention

Región de La Araucanía, Carahue-Puerto Saavedra

Preventive forestry to reduce the

• ccurrence and dispersion of forest

fires

Región del Maule

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Institutional Arrangements

Focal Points

Ministries

• f Foreign Affairs

Ministries of Environment + CONAF

AGCID

Regional Coordinators for Climate Change and Environmental Services

Decision s

Operational and Financial Planning

Council of Forestry Policy Council of Sustainabilit y Ministrers

National Technical Group of experts

• n Climate Change (GTNE)

Executive Direction of CONAF (Secretary) The Directing Council of CONAF Unit of Climate Change and Environmental Services(1)

ENCCRV Executive and Coordination Unit

Sicialization and input gathering with relevant actors at national and regional levels. Agriculture Ministry

International Cooperations (World Bank (FCPF and GEF), SDC, UN-REDD, IDB,

• thers

Public services, representatives of

• wners and indigenous peoples,

NGOs, consultants and Academics Public services, representatives of owners, indigenous peoples, rural sector, trade associations, NGOs, civil society, scientists, Academics

The advisory council of climate change (Technical representation of the ministries)

Consultive Council of Native Forest Law. Civil Society Council

• f CONAF

The inter-ministerial technical committee

• n climate change

(MINAGRI)

Political Strategic Strategic and general technical guidelines Operational and management of ENCCRV Input generation for the formulation and improvement of the ENCCRV

The UCCSA is created by Resolution No. 168 of April 23, 2014 after approval by the board of CONAF. Designates CONAF as UNCCD Focal Point through Resolution No. 37 of 17 June 1997 the Council of Ministers of the Environment, and as Focal Point for REDD+ through Letter No. 99 of MINAGRI-MINREL of February 19, 2014.

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BUDGET Total (USD) Total Budget Total Incondit. Budget Total Condit. Budget ENCCRV 433,044,712 69,287,154 363,757,558 % 100% 16% 84% Er Program 174,072,472 52,851,216 121,221,256 % 100% 30% 70%

Operational and Financial Planning

ER Program and ENCCRV Budget Proposal Implementation planning

+ Private Sector

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Reference Level of Accounting Area

Innovative methodology to estimate Forest Degradation gathering data from permanent forest inventories and the use of remote sensing tools. Reviewed by UNFCCC and TAP (FCPF)

Uncertainty (%) 33,70%

FREL/FRL Sub-national:

FREL/FRL REDD+ Activity Ton CO2e/year-1

Deforestation 3.452.884 Degradation 9.149.392 Conservation

• 2.430.439

Enhancement

• 10.012.012

Uncertainty:

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Emission Reduction Calculations

Reduction due to REDD+ Activities on a jurisdictional scale Reduction of Emissions by Deforestation Reduction of emissions by Degradation Enhancement of forest carbon stock in areas of Conservation Enhancement of forest carbon stock ERPA Goal 20% 15% 5% 20% ERPA term year t

Reference level Estimation of expected emissions under the ER Program Estimation of expected Emission Reductions under the ER Program Uncertainty buffer set-aside (4%) Estimation of expected Emission Reductions under the ER Program net

• f uncertainty

Reversal Buffer set-aside (11%) Estimation of expected Emission Reductions under the ER Program to be transferred

(tCO2-e/yr) (tCO2-e/yr) (tCO2-e/yr) (tCO2-e/yr) (tCO2-e/yr) (tCO2-e/yr) (tCO2-e/yr) 2017

• 1.471.499
• 2.791.286
• 1.319.787

52.791

• 1.266.996

139.370

• 1.127.626

2018

• 1.471.499
• 2.791.286
• 1.319.787

52.791

• 1.266.996

139.370

• 1.127.626

2019

• 1.471.499
• 2.809.300
• 1.337.801

53.512

• 1.284.288

141.272

• 1.143.017

2020

• 1.471.499
• 3.615.510
• 2.144.011

85.760

• 2.058.250

226.408

• 1.831.843

2021

• 1.471.499
• 3.633.523
• 2.162.024

86.481

• 2.075.543

228.310

• 1.847.233

2022

• 1.471.499
• 3.633.523
• 2.162.024

86.481

• 2.075.543

228.310

• 1.847.233

2023

• 1.471.499
• 4.457.747
• 2.986.248

119.450

• 2.866.798

315.348

• 2.551.450

2024

• 1.471.499
• 4.457.747
• 2.986.248

119.450

• 2.866.798

315.348

• 2.551.450

2025

• 1.471.499
• 4.457.747
• 2.986.248

119.450

• 2.866.798

315.348

• 2.551.450

TOTAL

• 13.243.491
• 32.647.668
• 19.404.177

776.167

• 18.628.009

2.049.081

• 16.578.928

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Enfoque para el Monitoreo, Reporte y Verificación

Los reportes correspondientes serán creados con un año de desfase (2018, 2020, 2022 y 2024). El sistema MRV será metodológicamente congruente con los NREF/NRF, considerando los mismos sumideros y fuentes, para garantizar comparabilidad de las estimaciones entre el periodo histórico de referencia y el periodo de desempeño. Los eventos de MRV medirán el desempeño de las actividades REDD+ en los años 2017, 2019, 2021, y 2023. Los hitos de monitoreo estarán alineados con el BUR.

Focus for Monitoring, Reporting and Verification

The corresponding reports will be created with

• ne year of lag (2018, 2020, 2022 and 2024).

The MRV system will be methodologically consistent with the FREL/FRL, considering the same sinks and sources, to ensure comparability of the estimates between the historical reference period and the performance period. MRV events will measure the performance

• f REDD + activities in the years 2017, 2019,

2021, and 2023. Monitoring milestones will be aligned with the BUR.

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Gestión de Datos y Sistema de Registro

Al día de hoy se cuenta con un diseño preliminar para lo cual se han definido funciones básicas, escalas, y otros atributos.

Serial Number Year Type Region Activity Nature 2018-ER-LR-MFS- 00001

2018 Emission reduction Los Ríos Sustainable Forest Management Available for transaction

2018-AI-LA-EFC- 00001

2018 Absortion increased La Araucanía Enhancement of Forest Carbon Stock Available for transaction

2018-ER-MA-DEG- 00001

2018 Emission reduction Maule Degradation Available for transaction

2018-ER-BI-DEF- 00001

2018 Emission reduction Biobio Deforestation Available for transaction

2018-AI-LL-FC- 00001

2018 Absortion increased Los Lagos Conservation Available for transaction

Las actividades vinculadas al Programa ER, hacen necesario que previo a la construcción de la Plataforma de Registro Nacional, se analicen una serie de consideraciones técnicas y legales que permitan orientar los requerimientos y pasos a seguir que deben ser incorporado en un sistema de pseudo-registro operativo

Data Management and Registration System

To date, a preliminary design has been set up for which basic functions, scales, and other attributes have been defined.

Serial Number Year Type Region Activity Nature 2018-ER-LR-MFS- 00001

2018 Emission reduction Los Ríos Sustainable Forest Management Available for transaction

2018-AI-LA-EFC- 00001

2018 Absortion increased La Araucanía Enhancement of Forest Carbon Stock Available for transaction

2018-ER-MA-DEG- 00001

2018 Emission reduction Maule Degradation Available for transaction

2018-ER-BI-DEF- 00001

2018 Emission reduction Biobio Deforestation Available for transaction

2018-AI-LL-FC- 00001

2018 Absortion increased Los Lagos Conservation Available for transaction

The activities related to the ER Program make it necessary to analyze a series of technical and legal considerations that will allow to guide the requirements and steps to follow that must be incorporated into a pseudo- registration system operative prior to the construction of a National ER Registry and compatible with MRV for all sectors being developed by Ministry of Environmental.

SLIDE 24

Safeguards

Participatory Process

SIS - MRS

Safeguards Information System / Complaints, Claims and Suggestions Mechanism

SESA

Strategic Environmental and Social Assessment

ESMF

Environmental and Social Management Framework

Process for the preservation of social and environmental safeguards of the National Strategy for Climate Change and Vegetation Resources

SLIDE 25

Transfer of Rights

The CONAF Prosecutor Office has conducted a judicial analysis referring to the attributions held by the Corporación in relation to the requirements of the FCPF Methodological Framework. There is a legal and inter-institutional feasibility for Chile to generate an emission reductions program on both public and private lands. In relation to activities which generate the reduction and capture of carbon, for example the reduction of deforestation and forest degradation, they are associated with activities which the Chilean judicial regulation classified as noncompliance and sanctioned them in the Law Decree 4.363 (1931) Law Decree 701 (1974), 20.283 (2008). The activities which capture carbon, for example, afforestation, management, restoration requires the permission

• f proprietor or land representative for activity implementation, situation which translates into the rights for the

intended carbon would suggest the celebration of a convention with the CONAF, in its role as REDD+ focal point as previously established.”

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Arrangements for Benefits Distribution

El Programa de RE de Chile, ha desarrollado un Sistema de Distribución de Beneficios (SDB), que se sustenta sobre los siguientes principios básicos:

Existirán beneficios Monetarios y No Monetarios que serán distribuidos de forma equitativa, transparente y apegada al marco normativo vigente. El SDB utilizará como vías para la distribución, los mecanismos e instrumentos existentes y los propuestos en las medidas de acción del Programa de RE. La distribución de beneficios monetarios asociados a Pago por resultados, está condicionada a la existencia de una transferencia previa de los derechos de carbono.

Arrangements for Benefits Distribution

The Chilean ER Program has developed a Benefits Distribution System (SDB), which is based on the following basic principles:

There will be monetary and non-monetary benefits that will be distributed in an equitable and transparent and adhering to the current regulatory framework. The SDB will use as channels for distribution, existing mechanisms and instruments. As well as channels proposed in the ER Program action measures. The distribution of monetary benefits associated with Result-based payments is conditional on the existence

• f a previous transfer of carbon rights.

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Benefits Distribution Arrangements (example)

Measure of Action Type of Benefit Distribution mechanism. Does it require rights transfer? Types of holding in which it applies Monetary Non- monetary MT.1. Forest Development, inclusion of elements

• f mitigation and

adaptation to the CC New Law . X Bonuses given to private owners who forest with native species destined for permanent coverage of the soils. These resources will cover between 75% and 90% of the planting cost, and will be delivered to the owner, once at least 75% of the plants is proved (tentative mechanism under evaluation). In addition, an annual payment for maintenance of the coverage is included, equivalent to 100 US per hectare forested (tentative mechanism, under evaluation). before receiving the bonus, owners who require, will have access to credits to cover the afforestation costs YES All individual private

• wners or co-
• wners.

MT.2. Law 20.283 Modification and strengthening . X Incentives given to private owners who manage native forests for productive or preservation purposes, by means of Management Plans that are under Forest Management Criteria. These resources will cover the silvicultural activities costs, with a 20 UTM per hectare (1,350 US / ha) cap. (Tentative mechanism, under evaluation) YES All individual private

• wners or co-
• wners.

MT.3. Adjustments for the inclusion of

• wners with

scarceLegal security

• f land tenure.

X Title regularization benefit to owners of ENCCRV prioritized communes, and who are willing to participate in the RE Program, through any of their direct mitigation measures. NO Small and medium size private owners

• r co-owners.

SLIDE 28

Emission Reduction Program for the FCPF Carbon Fund

ERPD CHILE

Chile is positioned at a critical moment, formulating its policies, politics, norms and institutionality (environmental and forestry, in

• rder to confront development in a Climate Change environment.

The ENCCRV proposed a paradigm shift in relation

• f the

management

• f

native resources, presenting ecosystem and sustainability as fundamental pillars. Proposes to improve from a wood production system based on exotic planted forests, to one directed by the management of native resources and consider Environental Payment services.

SLIDE 29

Thank you

ERPD Chile