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DRAFT Version !!!
If referred to, please cite as:
Schmidt L (2008) Draft version: Broadening the horizon – Assessing REDD froman integrated perspective – A discussion paper. German Development Institute, Bonn, Germany.
Broadening the horizon – Assessing REDD from an integrated perspective
How to merge overall climate change mitigation, biodiversity conservation and equityconsiderations
A Discussion PaperLars Schmidt, German Development Institute
 
Table of contents
1 Introduction and rationale..................................................................................................82 Framing the problem: the true challenge of permanently reducing deforestation on aglobal scale...............................................................................................................................103 Methods and assumptions................................................................................................143.1 Assumptions on supply of potential REDD credits.................................................143.2 Assumptions on demand for potential REDD credits by Annex-1 countries..........153.3 Assumptions to calculate potential proceeds from the sale of Assigned AmountUnits ..................................................................................................................................174 Results - Assessing REDD options..................................................................................184.1 Scope, definition and methodological REDD issues...............................................184.1.1 Scope of REDD................................................................................................184.1.2 Forest Definition..............................................................................................194.1.3 Methodological issues......................................................................................204.2 Policy approaches –REDD transfer systems............................................................214.2.1 Channelling transfers through emission trading or Dual-Markets trading.......234.2.2 The TDERM Triptych......................................................................................254.2.3 The Forest Carbon Partnership Facility...........................................................264.2.4 UN REDD Programme Fund...........................................................................284.3 Policy approaches: REDD finance...........................................................................294.3.1 REDD integration into the Emission Trading Scheme (full fungibility).........304.3.2 Dual-Markets Approach...................................................................................374.3.3 Tropical Deforestation Emission Reduction Mechanism.................................384.3.4 REDD fund financed with proceeds from auctioning emission allowances....405 Conclusion and Recommendations..................................................................................435.1 Scope........................................................................................................................435.2 REDD finance and transfer system..........................................................................436 References........................................................................................................................47
 
List of figures, tables and boxes
Table 1: Biome-average tropical forest biomass carbon stock estimates (t C/ha). Values forabove- and belowground forest biomass carbon..............................................................14Table 2: Deforestation rates, RELs and potential supply of emission reductions throughREDD for selected countries............................................................................................15Box 1: Potential GHG emission levels, targets and reduction efforts of Annex-1 countries...16Box 2: Assumptions on reduction targets for Annex-1 countries for the period 2013-2020...17Box 3: The Fundo Amazônia...................................................................................................25Figure 1: Demand in carbon credits for a joint commitment by Annex-1 countries, the USAand the EU for the period 2013-2020 compared to 1990 and potential offset supplythrough avoided deforestation under different scenarios.................................................31Figure 2: Economic benefit per ton of CO2 from various types of land-use in selected regionsof Indonesia......................................................................................................................32Table 3: (Policy) Assumptions for the EU ETS++ model.......................................................33Table 4: (Policy) Assumptions for the model by Cabezas and Keohane (2008).....................34Table 5: Carbon Price range from 2012 to 2050 as a result from REDD market integration..34Figure 3: Average age of power plants in the OECD..............................................................35Box 4: REDD funding through the Dual-Markets Approach under optimistic policyassumptions......................................................................................................................37Box 5: REDD funding through the Dual-Markets Approach under pessimistic policyassumptions......................................................................................................................38Table 6: TDERM fundraising potential for REDD 39Table 7: Proceeds from auctioning AAUs to Annex-1 countries in the commitment period2013-2020.........................................................................................................................40Figure 4: Potential REDD architecture for the period 2009-2020. 45Figure 5: REDD funding sources sketched over time..............................................................46
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