ii

iii
 TABLE OF CONTENTS
S.No Name of Topic Page No
PREFACE iv
1 Climate Change 1
1.1 Climate and Weather 1
1.2 Climate Change 1
1.3 Why is climate changing? 1
1.4 International Response to Climate Change 3
2 Emergence of REDD+ 4
3 Phases of REDD+ 6
3.1 Phase 1: Readiness Phase 7
3.2 Phase 2: Piloting / Demonstration Phase 7
3.3 Phase 3: National scale implementation 7
4 International Requirements for REDD+ implementation 8
4.1 EDD+ Strategy / Action Plan 9
4.1.1 Guiding Questions for development of National REDD+ Strategy 11
4.1.2 Stakeholders Engagement 11
4.1.3 National REDD+ Strategy of Pakistan 12
4.1.4 National Forest Definition 14
4.1.5 Drivers of Deforestation and Forest Degradation 14
4.2 National Forest Monitoring System including Measurement, Reporting 15
and Verification
4.2.1 Measurement, Reporting and Verification System (MRV) 16
4.2.2 Methodological Guidance for National Forest Monitoring Systems 18
4.2.3 Pillars of NFMS 18
4.3 Forest Reference Emission Level and/ or Forest 22
4.3.1 Elements of FREL/FRL 23
4.4 Safeguards Information System 27
4.4.1 The Cancun safeguards 27
5 Co-Benefits of REDD+ 29
5.1 Biodiversity and Wildlife conservation 30
5.2 NTFPs and Medicinal Plants conservation 30
5.3 Watershed Protection 30
5.4 Landslide control and soil conservation 31
5.5 Coastal areas protection 31
5.6 Promotion of ecotourism 31
5.7 Social awareness and capacity building 31
5.8 Livelihood improvement of local communities 32

iv
5.9 Climate Change Adaptation 32
5.10 Other Benefits 33
6 Challenges for REDD+ implementation 33
6.1 Additionality 34
6.2 Leakage or displacement of emissions 34
6.3 Conflicts 34
6.4 Exclusion of marginalized sections of society 35
6.5 Low prices of carbon credits 35
6.6 Lack of sustainability or permanence of REDD+ interventions 36
6.7 Institutional Challenges 36
6.8 Stakeholders Engagement 36
7 REDD+ Finances 37
7.1 Compliance Carbon Markets 37
7.2 Voluntary Carbon Markets 38
7.3 Payments for REDD+ Programs: 38
References 39

v
 PREFACE

After the adoption of Cancun Agreement in 2010, the Government of Pakistan took several
measures to implement this agreement at the national, provincial and district levels. Reducing
Emissions form Deforestation and Forest Degradation (REDD+) process was initiated by Ministry
of Climate Change, Government of Pakistan in 2010 with consultative workshops and
awareness raising.

In 2013, Pakistan was selected as a REDD+ Country Participant in the Forest Carbon Partnership
Facility (FCPF) of the World Bank. The participant Committee of the FCPF through its Resolution
PC/16/2013/8 decided to allocate grant funding to Pakistan to enable it to move ahead with
preparation for readiness. Pakistan received a grant of US $ 3.8 million during June 2015 under
REDD+ Readiness Preparation Proposal (RPP). Under R-PP Pakistan is working on four main
components i.e. (i) REDD+ Policy Analysis, (ii) REDD+ Technical Preparation, (iii) Readiness
Management Arrangements and (iv) Designing and Testing REDD+ Payments for Environmental
Services.

Pakistan Forest Institute, being the prime public sector organization in forestry research and
education, was awarded a study by the National REDD+ Office, Ministry of Climate Change for
“Designing REDD+ Payment for Environmental Services” in the two selected ecosystems of the
country in 2018. One of the main components of this consultancy assignment was to prepare
awareness raising material on the following topics in English & Urdu.

 What is REDD+. A Guide for Local Communities

 Risks and Benefits of REDD+
 Climate Change and the Role of Forests – A Community Guide
 A community guide for REDD+ PES monitoring
 A Manual to measure forest carbon stock.

This Guide has been prepared by Pakistan Forest Institute under the study “Designing REDD+
Payment for Environmental Services”.

This document is designed to educate and build the capacity of the community members,
practitioners, resource managers, researchers, students and other stakeholders about REDD+.

Syed Mahmood Nasir

National Project Director (REDD+)
Ministry of Climate Change

vi
 LIST OF ACRONYMS
AD Activity Data

AJK Azad Jammu and Kashmir

AP Action Plan
CO2 Carbon Dioxide
CoP Conference of the Parties

EF Emission Factor
FAO Food and Agriculture Organization
FATA Federally Administered Tribal Areas
FCPF Forest Carbon Partnership Facility
FPIC Free, Prior and Informed Consent
FREL Forest Reference Emission Level
FRL Forest Reference Level
GCF Green Climate Fund
GHG Green House Gas

GIS Geographic Information System

Ha Hectare
IPCC Intergovernmental Panel on Climate Change
MRV Measurement, Reporting and Verification
NFI National Forest Inventory

NFMS National Forest Monitoring System

PFI Pakistan Forest Institute
REDD+ Reducing Emission from Deforestation and Forest Degradation, plus the role of
enhancement of carbon stock, conservation of carbon stock and sustainable forest
management
RPP Readiness Preparation Proposal

SIS Safeguard Information System

SLMS Satellite Land Monitoring System
t Tonnes
UNFCCC United Nations Framework Convention on Climate Change

vii
 WHAT IS REDD+? A GUIDE FOR LOCAL COMMUNITIES

1. Climate Change
1.1 Climate and Weather

Weather and climate are part of routine discussions in our daily life. Weather is defined as the
average of the short-term changes in the atmospheric variables like temperature, precipitation,
humidity, wind speed and atmospheric pressure. On the other hand, climate is the average of
weather over a longer time (some time taken over 30 years) for a particular region.

1.2 Climate Change

Climate change is a persistent change in weather conditions over extended period of time
spanning over decades to centuries.

Climate change has three characteristics i.e. the change occurs for longer period, it is generally
not reversible and it is mainly caused by human activities. It has been scientifically established
that our climate is changing and it is changing too fast.
1.3 Why is climate changing?
Sun is the source of energy in the universe. It is the sun that keeps our earth warm and brings
about different types of climate in different regions. The layer of gases that surrounds the earth
is called atmosphere. It is composed of different gases such as nitrogen, oxygen, carbon dioxide
etc. some of which strongly influence our climate as they regulate the flow of heat energy
between the sun and the earth. These gases are called the ‘greenhouse gases’ (GHGs) because
they act like a greenhouse, allowing some of the sun’s radiations to reach the earth and
stopping heat to escape back and thus keeping the earth warm and livable. If these gases were

1
not present, it would be very cold on earth – too cold for humans to live. This natural process is
called the greenhouse effect.
With advent of industrial revolution in eighteenth century, two main changes were brought
about in the in socio-ecological systems of the world. Fossil fuels such as coal, petroleum and
gas were discovered which were started to be used as sources of energy for running vehicles,
machines and industries. Consequently, emission of carbon dioxide, methane, nitrous oxide and
other greenhouse gases started. Second change was clearance of large tracts of natural forests
for agriculture and settlements which also caused emissions of carbon stored in the biomass
and soil. Human beings are continuously adding greenhouse gases into the atmosphere by
activities such as burning of coal, oil and gas to generate power, run factories and vehilces, and
clearance of forests for farming. Consequently, large amount of greenhouse gases are being
accumulated in the atmosphere which cause global warming and climate change.

Figure 1: Diagrammatic Presentation of GHGs Emissions

Source: Soriano et al., 2010

2
According to global estimates, energy supply is the largest source of emissions (25.9%),
followed by industry (19.4%), deforestation (17.4%), agriculture (13.5%) and transport (13.1%)
as shown in Figure 2. Thus one major source of carbon emissions is the activities which deplete
forests such as conversion of forests into non-forest land uses, logging, mining and forest fires.
In fact about 17% of the total greenhouse gases are contributed by deforestation and forest
degradation.

Figure 2: Sectoral Contributions in GHGs Emissions

Source: IPCC, 2007
1.4 United Nations Framework Convention on Climate Change (UNFCCC)

The unprecedented environmental threat arising from climate change was realized by the
global community in 1992 when United Nations Framework Convention on Climate Change
(UNFCCC) was devised to cope with the challenge of climate change. The ultimate objective of
the UNFCCC is to stabilize GHG concentrations in the atmosphere at a level which is not harmful
for the climate system. This agreement is based on the ‘polluter pays principle’ meaning that
the nations who have contributed substantially to emissions should bear the responsibility of
mitigating climate change. Thus, it was clearly mentioned that climate change mitigation is a
common but differentiated responsibility. All the countries of the world will contribute in

3
efforts to mitigate climate change but the industrialized countries will contribute more as they
are primarily responsible for polluting the climate system. Parties to the Convention meet

every year which is called Conferences of the Parties (COP) to discuss the progress under
UNFCCC and ensure implementation of UNFCCC decisions.
As UNFCCC was not a legally binding instrument, there was a need to devise legally binding
agreement to curb emissions. Consequently Kyoto Protocol was agreed upon in 1998 which
imposed binding targets on the developing countries to reduce their emissions by 5% of the
1990 level allocating different emission reduction targets to different developed countries . This
agreement was implemented during 2008-2012 and it was largely successful in achieving its
targets. After different rounds of negotiation at global level, another agreement was agreed in
2015 called “Paris Agreement” which provided a comprehensive mechanism for climate change
mitigation. All international negotiations and agreements under UNFCCC acknowledged the
importance of forests for climate change mitigation as they are major source of emissions.

2. Emergence of REDD+
Forests play an important role in climate change as they act as sinks of, as well as sources for,
carbon emissions. Forests sequester CO 2 from the atmosphere through photosynthesis and
store this carbon in the form of biomass in stems, branches, leaves, flowers, seeds and roots.
When these parts particularly roots are died these are converted into soil organic matter by the
microbial action in the forest ecosystem. The world’s forest ecosystems hold more than half of
all terrestrial carbon. According to FAO (2006) this carbon is more than one trillion tonnes ─
twice the amount found in the atmosphere. On the other hand, when forests are cleared or
degraded, large amounts of CO 2 is released into the atmosphere. In the absence of human
disturbances, CO2 is constantly absorbed and released, and a balance is maintained by the
forest ecosystem. However, when deforestation or large scale degradation occurs, large
amounts of CO 2 are released back into the atmosphere and the forests become source of
carbon emissions.
It has been estimated that 17% of the global GHGs emissions are contributed by deforestation
and forest degradation. These emissions are more than the emissions caused by the entire

4
transport sector of the world and hence must be curtailed for reducing global warming. About
75% of forest based emissions occur in developing countries where forests are under
tremendous pressure due to a variety of social and economic factors. In order to achieve the
goal of keeping the global warming within two degrees Celsius, there has to be drastic
reductions in emissions in all major sectors of economy. This target cannot be achieved
without reducing emissions in forestry sector, in addition to other mitigation actions.

Forests are an important component of our landscapes and essential for sustaining life support
processes. Conservation and sustainable management of the forests will enable the
ecosystems, animals and plants, and humans to adapt and respond to climate change. Large
intact forests especially in mountainous areas will help plants and animals adapt to rising
temperatures and changing precipitation patterns. Conservation and development of forests
will slow down the pace of climate change as large amounts of CO 2 emissions can be avoided by
ensuring the existence of these forests.

Due to the crucial role of forests in mitigating the impacts of climate change, and their
importance for sustaining so many ecosystem services , the rate of forest depletion must be
curtailed. This has led to the inclusion of forests in the international negotiations and
agreements aimed at climate change mitigation.
Reducing emissions from deforestation, degradation, sustainable forest management and
conserving and enhancing carbon stocks in the forests known as REDD+ has emerged as a
promising option for climate change mitigation in developing countries. The REDD+ idea simply
means rewarding efforts aimed at stopping deforestation and forest degradation and thereby
reducing the amount of CO 2 emissions into the atmosphere and increasing forest cover to
sequester more CO 2 from the atmosphere. REDD+ creates a financial value for the carbon
stored in forests by offering incentives to developing countries to reduce emissions by
controlling deforestation and forest degradation and increasing forest area. Developing
countries would receive payments for results-based actions.

5
The idea of reducing emissions from deforestation was presented in 11 th COP in 2005 at
Montreal which led to the introduction of REDD+ as part of the Bali Action Plan at COP 13 in
2007. Some basic principles and guidelines were agreed upon during COP 15 in 2009 in
Copenhagen. Parties at COP 16 in 2010 in Cancun formally adopted REDD+ as a climate change
mitigation option. UNFCCC has provided comprehensive guidelines for REDD+ activities through
its Cancun Agreement and Warsaw Framework.

1. Reducing emissions from deforestation

Deforestation is the conversion of forest land into non-forest land. Deforestation occurs
where forest is completely cleared and the resultant landuse is a non-forest landuse.
Deforestation not only destroys the aboveground biomass but also significantly reduces
belowground biomass and soil carbon. Consequently, large amount of carbon is
released into the atmosphere. This is the foremost activity which should be halted or
reduced to access result based payments under REDD+ Programme. For this purpose it
is essential to identify the drivers of deforestation and devise measures to address these
drivers to halt deforestation.
2. Reducing emissions from forest degradation
In terms of REDD+ forest degradation is defined as reduction in the carbon stocks of a
forest area due to a natural or anthropogenic factor. Forest degradation is a type of
activity in which forest land remains forest but large quantity of timber is extra cted from
the forest or other undesirable activities are happening in the forest such as fire, grazing
or fuelwood collection. Forest degradation is a serious issue in Pakistan which results in

6
 large amount of emissions. There is a need to identify the drivers of forest degradation
and adopt suitable measures to reduce emissions from forest degradation.
3. Conservation of forest carbon stocks
Conservation of forest carbon stocks refer to maintaining the level of carbon in a given
forest ecosystem. This includes all activities and measures which are aimed at forest
protection and conservation such as declaring an area as a protected area.
4. Enhancement of carbon stocks
Enhancement of carbon stocks in forest area can be achieved through reforestation and
afforestation. Activities which result in rehabilitation or improvement of forest area or
brining new areas under plantations are counted as enhancement of carbon stocks.
5. Sustainable forest management
REDD+ does not impose a complete ban on forest harvesting. As forests are crucial for
livelihood of forest dependent communities who get timber, fuelwood, fodder and
other non-timber forest products from these forests, there is an option to continue
these consumptive uses within safe limit. An example of sustainable forest management
is to harvest timber well below the increment of the forest.

Figure 3. Diagrammatic presentation of REDD+ (Adopted from Soriano et al., 2010)

7
 3. Phases of REDD+
According to UNFCCC, REDD+ will be implemented in three phases: Readiness Phase,
Demonstration/Pilot Phase and Full Scale Implementation. The phases are non-discrete and
allow for overlap of some activities – particularly in terms of continuous capacity building in all
three phases.
As REDD+ is a new and multi-dimensional mechanism, the phased approach for REDD+
implementation will enable the participating countries to adopt a flexible and learning-by-doing
approach to REDD+ implementation. However, the boundaries between these phases are not
clearly defined and hence overlap of activities is possible during these phases.
3.1 Phase 1: Readiness Phase
During the Readiness Phase countries are expected to achieve REDD+ Readiness. ‘REDD+
readiness’ refers to the efforts a country undertakes to develop the capacity required to
demonstrate and implement REDD+, and meet UNFCCC REDD+ requirements. REDD+ readiness
support is provided to developing countries through Different bilateral and multilateral
initiatives provide support to developing countries for REDD+ readiness. These include the UN-
REDD Programme and the Forest Carbon Partnership Facility of the World Bank which provide
both financial and technical support for REDD+ Readiness preparation.
During Readiness Phase countries prepare national REDD+ strategies and action plans through
active participation of all stakeholders, construct forest reference emission level, develop a
national forest monitoring system including system for measurement, reporting and verification
(MRV) and design safeguards information system. Participating countries are also required to
build the capacity of their institutions and communities to implement REDD+ schemes.
3.2 Phase 2: Piloting / Demonstration Phase
During second phase national strategies, action plans and MRV systems developed in Phase I
are demonstrated and tested in pilot areas. This may include demonstration activities on pilot
basis to reduce emissions and access result based payments. During this phase additional
capacity building, technology development and transfer may also be required.

8
3.3 Phase 3: National scale implementation
During third phase of REDD+ results-based actions will be implemented at national level and
results will be fully measured, reported and verified. Countries can access results -based
payments when they have completed the pre-requisites related to measurement, reporting and
verification under the UNFCCC.

Figure 4: REDD+ Phases (Source: UN-REDD, 2016)

4. International Requirements for REDD+ implementation
The Cancun Agreement calls upon the participating countries to develop the following four
elements for REDD+ implementation:
a. National REDD+ Strategy and/or Action Plan;

b. Forest Reference Emission Level (FREL) and / or Forest Reference Level (FRL);
c. National Forest Monitoring System (NFMS) for the monitoring of the five REDD+
activities, including measurement, reporting and verification of results; and
d. Safeguard Information System (SIS).

9
Figure 5: Elements of REDD+ (Source: UN-REDD, 2016)
4.1 REDD+ Strategy / Action Plan
National REDD+ Strategy or Action Plan is the basic requirements for countries aiming to
implement REDD+ Programme. These documents describe how forest related emissions will be
reduced and / or how forest carbon stocks will be increased. National REDD+ Strategies and
Action Plans are produced during the readiness phase and these are based on countries
experiences in addressing the drivers of deforestation and forest degradation, stakeholder
engagement and strategic options for REDD+ implementation.
The UNFCCC decisions propose key role for central governments in designing and implementing
REDD+ programmes. National-level policy reforms and measures are essential to reduce
emissions from deforestation and forest degradation and enhance forest carbon stocks.
National governments should also catalyze, coordinate and support subnational efforts and
public and private actors for implementation of REDD+ activities. Meaningful participation of all
stakeholders is the key for success of REDD+ programme. The stakeholders must include all
those groups who benefit from forests or whose activities impact forests, as well as actors
outside forestry sector who influence landuse change or forest management in the country.

10
UNFCCC does not provide specific contents for inclusion in REDD+ Strategies and Action Plan.
However, the Cancun Agreement provides general guidance that REDD+ Strategies and Action
Plans should identify and address the drivers of deforestation and forest degradation, issues
related to land tenure and forest management, gender considerations, social and
environmental safeguards and ensuring participation of relevant stakeholders particularly
indigenous peoples and local communities.
UNFCCC decisions give full flexibility to countries to design the process and the contents of their
National Strategies and or Action Plans in the context of their national circumstances in line
with the decisions of the UNFCCC.
The REDD+ Strategy should have the following characteristics:
 Ensure active participation of all stakeholders in designing and implementation of
REDD+ programme.
 Build trust of national and international the international community in REDD+
programme
 Demonstrate country’s commitment and capacity to deliver results
 Identify and address the main drivers of deforestation and forest degradation in a
country
 Presenting a credible yet ambitious strategic vision for REDD+, with transformative
policies and measures;
 Backed by high-level political support and commitment;
 Promoting multi-sectorial coordination and cooperation.
 Based on a transparent and participatory design process; and
 Demonstrating that how the strategic actions of the REDD+ Strategy or Action Plan are
different from the routine or business as usual scenario.

11
 4.1.1 Stakeholders Engagement

Full and effective participation of relevant stakeholder is essential for identification,

prioritization and implementation of REDD+ activities. REDD+ is a multi-stakeholder
programme, therefore, the REDD+ strategy design process should involve a wide range of
stakeholders including different organizations of the federal and provincial governments, forest
owners, forest users and other private sector actors (specifically those that are directly or
indirectly involved in deforestation and forest degradation), civil society organizations, local
peoples and others. Proper consultation with different actors and ensuring their involvement
will lead to a consensus on the strategic options for REDD+ Strategy implementation.
A key component of effective stakeholders’ participation is Free, Prior and Informed Consent
(FPIC). This means that communities should have full freedom if they want to participate in
REDD+ Programmes are not. Similarly, they should be given full information about the REDD+
Projects and after knowing full details of the projects can give consent for their participation or
otherwise.
Since most of the drivers of deforestation and forest degradation and barriers to forest
conservation and sustainable forest management fall outside the forestry sector, it is important
to build strong linkages and collaboration with different sectors and institutions to ensure their
support and participation in REDD+ programme. Multi-sectorial engagement and coordination
among government departments including Forestry, Environment, Wildlife, Agriculture, Mining,
Tourism, Planning, and Finance etc. are crucial, both in the readiness and implementation
phases. The involvement of private sectors particularly forest owners, users, contractors,
timber traders, wood industries, pulp and paper industry, sports industry and local NGOs and
Community Organizations will result in better environment for REDD+ implementation.
It is important to develop an appropriate mechanism for cross-sectorial dialogue and
coordination during readiness phase to ensure alignment of government actions, policies and
measures in the implementation phase to achieve REDD+ results. Higher-level political support
is particularly critical for achieving the objectives of REDD+.

12
4.1.2 National REDD+ Strategy of Pakistan

The process of National REDD+ Strategy of Pakistan was started in 2015 when the Government
of Pakistan through the Ministry of Climate Change started implementation of the REDD+
Readiness Preparation Proposal funded by the Forest Carbon Partnership Facility of the World
Bank. The task of the strategy development was assigned to the Indofur- an international Firm
based in Finland- and CHIP Training and Consulting, Islamabad. The draft strategy was
developed through consultation with key stakeholders including federal government ministries,
provincial forest departments, mining and agriculture sectors, communities, academia, civil
society organizations and market players. Apart from these stakeholders, consultation meetings
were also held with the Provincial REDD+ Management Committees (PRMCs) in the provinces,
as these are responsible for REDD+ affairs in their respective provinces, and also the Working
Groups of the National Steering Committee. This process used several techniques to acquire
information using focus group discussions, key informant interviews, questionnaires and
consultative workshops.
The Strategy presents the international context from which, REDD+ had evolved, the current
legal, policy and institutional framework. It also discusses forest cover and the drivers of
deforestation and forest degradation. After presenting the strategy framework, the Strategy
presents the Options intended to address the main direct drivers of deforestation and forest
degradation by modifying productive practices to improve sustainability; afterwards the
document describes the actions required to address the indirect drivers of deforestation, forest
degradation and barriers that prevent the sustainable management of forest and enhancement
of carbon stocks, known as the implementation framework. Finally, the Roadmap for
implementation presents a set of specific actions to be performed to make REDD+ happen in
the country.
In order to address the drivers of deforestation and forest degradation and the barriers to
increase forest carbon stocks, following three broad alternatives have been identified to
achieve REDD+ objectives in the country.
 Enhancement of forests capacity to capture and maintain carbon
 Reduction of pressure to forest ecosystems

13
  Promotion of improved and integrated livelihood approaches

For enhancement of forests capacity to capture and maintain carbon, strategic option identified
is restoration, reforestation and afforestation. For reduction of pressure on forest ecosystems
strategic options include sustainable forest management, payment for ecosystem services and
efficient alternative energy sources. For promotion of improved and integrated livelihood
approaches, strategic options include silvopastoral practices and sustainable grazing,
agroforestry and sustainable tourism and eco-tourism.
4.1.3 National Forest Definition
The Government of Pakistan (2017) has adopted the following definition of forest:
“A minimum area of land of 0.5 ha with tree crown cover of more than 10% comprising trees
with the potential to reach a minimum height of 2 meters”.
4.1.4 Drivers of Deforestation and Forest Degradation
The draft National REDD+ Strategy has identified the following drivers of deforestation:
 Unsustainable fuel wood extraction
 Unsustainable timber extraction
 Free and uncontrolled livestock grazing
 Infrastructure development (roads, dams, transmission lines,)
 Urban and rural expansion / habitation
 Agriculture expansion for subsistence
 Commercial agriculture expansion (Fish ponds, cash crops, and subsistence crops)
 Encroachment of by communities and other government agencies. Mainly for
agriculture, lower degree for infrastructure, housing
 Mining
 Forest fires (natural and anthropogenic)
 Extreme weather events (landslides, floods, snowfall)
 Oceanic intrusion
 Forest clearing for security in conflict prone borders/areas (FATA, AJK)

14
Drivers of Forest Degradation in Pakistan include the following:
 Unsustainable fuel wood extraction
 Unsustainable timber extraction
 Agriculture expansion for subsistence
 Livestock grazing, Over-grazing and browsing
 Changes in water availability, mainly scarcity by water diversions upstream, drought,
climate change (important in mangrove and riverine)
 Salinity and water logging
 Drought- changes in rainfall and climate patterns
 Infrastructure (roads, power lines)
 Mining

Figure 6: Drivers of Deforestation (Source: Draft National REDD+ Strategy, 2018)

15
4.2 National Forest Monitoring System including Measurement, Reporting and Verification

A national forest monitoring system is a tool used for measurement and monitoring of forest
carbon stocks and changes therein over time. It also provides information on safeguards and
co-benefits of REDD+. It is one of the four key requirements to be fulfilled by the countries
implementing REDD+ activities. The main objective of NFMS and MRV is to collect and report
reliable data on forest area and forest carbon stocks and changes in these variables over time.
UNFCCC has provided comprehensive guidelines for the development of robust and transparent
national forest monitoring systems. There could also be subnational forest monitoring system
depending on national circumstances. These national or subnational monitoring systems can
be implemented through a stepwise approach.

UNFCC has provided the following general guidance for establishment of national forest
monitoring systems:

 NFMS should build upon existing systems.

 NFMS should be flexible and capable of incorporating improvements over time.

 The development process of NFMS should be aligned with different phases of REDD+.

 NFMS should cover the monitoring of different forest types in the country including
natural forests and plantations.

 NFMS may also be linked with safeguards information systems of the REDD+ in the
country.

 The data and information provided by NFMS should be transparent, consistent over
time, and suitable for independent measurement, reporting and verification.

 NFMS should use a combination of remote sensing and ground-based forest

measurement approaches for estimating carbon stocks, and forest area changes.

16
4.2.1 Measurement, Reporting and Verification System (MRV)

Measurement, Reporting and Verification (MRV) System is part of the National Forest
Monitoring System and can be used to assess countries’ performance with regard to REDD+
implementation.
For accessing result based payments under REDD+, developing countries are required to fully
measure, report and verify GHGs emissions by sources and removals by sinks including changes
in forest carbon stocks resulting from the implementation of REDD+ activities.

The following guidelines have been provided for MRV:

 Use the most recent IPCC guidelines for estimating GHG emissions and removals in
forestry sector including changes in forest carbon stocks and forest areas.
 Monitor and report emissions displacement or leakage at national level.
 Use transparent and consistent data over time.
 Express the results of the implementation of REDD+ activities in tonnes of carbon
dioxide equivalent per year.
 Use data that is consistent with established Forest Reference Emission Level/Forest
Reference Level.
Reporting under MRV System
 The MRV data and information should be reported to UNFCCC through countries ’
biennial update reports (BUR).
 Beside the MRV data, countries should also provide a technical annex on a voluntary
basis in the context of results based payments.
Verification under MRV System
According to the Warsaw Framework, the data submitted for accessing result based payments
under REDD+ must be verified by a team of technical experts. This team shall comprise two

17
experts in land use, land-use change and forestry (LULUCF), one each from a developing
country and a developed country party. The team shall verify the following:
 The accuracy of the data;
 The consistency in methodologies and definitions;
 The consistency of the data and the methodology used with IPCC guidelines; and
 The degree of transparency, consistency, completeness and accuracy of the results.

4.2.2 Methodological Guidance for National Forest Monitoring Systems

The information provided by NFMS should not be confined only to the measurement of carbon
stocks, but may also include other parameters such as biodiversity, forest productivity, forest
health, and socio-economic functions of forests and tenure status. Some of this information
may be required for addressing and respecting social and environmental safeguards.

Countries have been given flexibility to develop monitoring tools as per their capacities and
capabilities to assess the results of REDD+ activities. The performance of REDD+ activities,
policies and measures can be judged both through direct monitoring of emissions or removals
arising from changes in forest area and carbon stocks or indirectly through measuring a series
of proxy indicators such as forest canopy changes, flow of timber from forest etc. Countries
have the choice to use the existing tools or new tools for monitoring or use combination of the
two.

4.2.3 Pillars of NFMS

There are three pillars or building blocks of NFMS:
Pillar 1: Satellite Land Monitoring System (SLMS)
Satellite Land Monitoring System is based on GIS and remote sensing of the forest cover in a
country. It is concerned with the collection of Activity Data (AD) i.e. data on land use change
and forest area change as a result of human activities such as deforestation or regeneration.

18
Satellite remote sensing is a useful, efficient and cost effective tool for collecting data on forest
area changes. SLMS is combined with a web-GIS portal for online dissemination of information,
thus ensuring the transparency of the data and enabling the stakeholders to have full and easy
access to the data.
Activity data is normally generated through collection and analysis of historical satellite data to
determine trends of landuse changes in the country. Global satellite data archives contain
historical imageries dating back 30 years for many developing countries which can be used for
historical analysis of landuse changes. SLMS not only provide spatially explicit information
about landuse change but also enable covering large and possibly remote areas where ground
based surveys are not possible. SLMS should follow the principles of accuracy, transparency,
consistency, completeness and comparativeness as recommended by the IPCC (IPCC, 2003).

Pillar 2: National Forest Inventory (NFI)

Two types of data are required for estimating emissions and removals i.e. activity data and
emissions factor. Activity data is collected through SLMS whereas emission factors are
developed through ground based National Forest Inventory (NFI). NFI is used to collect data on
forest carbon stocks and changes in carbon stocks over time and thus estimates on GHG
emissions and removals associated with forests. NFI allows countries to develop country-
specific emission factors for different categories of landuse, forest types and strata. Thus,
countries are able to comply with Tier 2 and Tier 3 level reporting of their GHG inventory.

For countries that have national-level data or existing forest inventory systems, establishment
of the challenge is to assess the accuracy and completeness of the data for reporting under
REDD+ requirements. With low level of inputs, such systems could be modified to meet the
international standards. However, for countries that do not have national data or inventory
system, the challenge is to develop and implement an NFI system in line with IPPC guidelines.

19
NFI is usually based on classification of the country’s area into six landuse classes as per IPCC
guidelines i.e. forest land, crop land, grass land, wet land, settlement and other land. Inventory
is carried out by laying out permanent sample plots in all landuse classes according to some
sampling design such as systematic grid sampling. Permanent sample plots are helpful in
monitoring changes in carbon stocks over time. In this way data on different carbon pools are
collected to develop emission factors for different landuses. The carbon pools measured in a
forest ecosystem include aboveground biomass, dead wood, litter, belowground biomass and
soil organic carbon. Usually more intensive sampling is carried out in forest areas for
measurement of these carbon pools. For this purpose forest land is further stratified into
different forest types and subtypes to differentiate homogenous populations. Stratification
actually reduces the number of sample plots required for estimating carbon stocks with desired
precision and thus makes the field inventory more cost efficient.
One NFI is sufficient to assess changes in carbon stocks resulting from deforestation. However
for quantifying emissions from forest degradation and forest conservation, atleast tow NFIs are
essential. The time period for repeating of NFI is usually 5-10 years depending upon the local
situation.
Pillar 3: National GHG Inventory
A National GHG Inventory is a tool for compiling and reporting data on GHG emissions and
removals in the country. Countries are required to estimate forest-related emissions by sources
and removal by sinks for accessing result based payments under REDD+ projects. The
information disseminated through GHG inventory is used for assessing the progress on the
implementation of the REDD+ and other mitigation activities in a country. GHG inventories also
provide a link between science and policy and enabling the policy makers to implement policies
and measures to reduce emissions. GHG Inventory basically combines and reports the data and
information collected through SLMS and NFI. The main function of this pillar of NFMS is to
provide a tool to assess the country performance related to REDD+.
Two things are important for ensuring the quality of the GHG inventory i.e. the accuracy of the
results obtained from field measurements, and the accuracy of the methods employed for
data collection. Countries are required to meet the five UNFCCC reporting principles when

20
developing and reporting GHG inventory estimates: transparency, consistency, comparability,
completeness and accuracy.

Figure 7: National Forest Monitoring System

Source: UN-REDD, 2013

21
 Source: UN-REDD, 2013

4.3 Forest Reference Emission Level and/ or Forest Reference Level

Forest Reference Emission levels and/or Forest Reference Levels (FRELs/FRLs) are the emissions
benchmarks which will be used to measure emissions reductions under the REDD+ Program.
FREL/FRLs have been defined as “…benchmarks for assessing each country’s performance in
implementing [REDD+] activities”. The UNFCCC does not clearly differentiate between a FREL
and a FRL but a common understanding is that a FREL only includes activities which reduce
emissions meaning that it refers to gross emissions from deforestation and degradation
whereas FRL also includes activities from the “+” that can “enhance forest carbon stocks” and
thus it refers to net emissions. Thus, the scope of a FRL covers the same activities as a FREL plus
conservation and enhancement of forest carbon stocks.

22
Under the UNFCCC the establishment of a FREL/FRL is
required to qualify for payment against performance
IPCC GOOD RACTICE
based emissions reduction under REDD+. It can also be GUIDANCE
used to evaluate national or subnational policies and The IPCC adopted the following
good practices for reporting of
measures implemented to mitigate climate change in the
GHG inventories:
forest sector and/or to contribute to international • Transparency: The principle
that all assumptions and
mitigation through REDD+. The UNFCCC FREL/FRL methodologies are explained
guidelines, based on relevant COP decisions, are designed and allow for external
replication and assessment.
to give countries flexibility in developing FREL/FRL in line • Accuracy: The principle that
with their national circumstances and capacities. estimates are not biased, close
to true values of emissions or
The UNFCCC guidelines for what countries should include
removals and that uncertainties
in the FREL/FRL are: are reduced to the possible
extent.
• Information used by the countries in developing the • Consistency: The principle that
FREL/FRL should include historical data on deforestation all elements of an inventory
should be internally consistent
and forest degradation and a detail account of national over time. Different
circumstances, in a transparent and comprehensive methodologies may be used
over time if recalculations occur
manner; in a transparent manner and
• Data and methodologies used in construction of incorporate good practices.
• Comparability: The principle
FREL/FRL should be transparent, complete, consistent, that emission and removal
and accurate. estimates reported by parties
should be comparable to others’
• Pools, gases and activities included in FREL/FRL and the estimates.
reasons for excluding a pool and/or activity from FREL/FRL • Completeness: The principle
that an inventory should cover
construction; and, all sources and sinks for the
• The definition of forest used for the construction of the specified geographic area.
Source: IPCC, 2006. Guidelines
FREL/FRL and, if different than the definition used in the
national greenhouse gas (GHG) inventory, an explanation
of why and how the definition used in the FREL/FRL
construction was chosen.

23
 Figure 8: Elements of FREL/FRL
Source: UN-REDD, 2013
4.3.1 Elements of FREL/FRL
There are two basic elements of FREL/FRL i.e. Activity Data (AD) and Emission Factor (EF).
Activity data refers to the quantitative information on the magnitude of a human activity
resulting in emissions or removals of carbon dioxide taking place during a given period of time.
In the LULUCF sector, data on deforestation, forest degradation or afforestation are examples
of activity data.

For generating activity data, countries are expected to consider historical data on landuse
change over a given time period. Satellite land monitoring systems or remote sensing is
commonly used to estimate historical activity data, though other means such as land surveys,
land registry records, forest inventories, etc. are also equally good for activity data related to
forest degradation. The IPCC proposes three ‘Approaches’ to produce activity data when
referring to land use changes. Countries may choose an approach according to data availability,
national circumstances and capacity (UN-REDD, 2013).

24
Emission Factors

An emission factor is a coefficient that quantifies emissions or removals per unit ‘activity’. It is
the amount of emission (or removal) of carbon dioxide when one land use changes into another
land use. Emission factors are estimated by calculating the difference of average carbon stocks
between the two landuses after landuse change. If carbon stock of a forest land is 100 t CO 2 per
ha and it is converted into crop land with 20 t CO 2 per ha, the Emission Factor will be 80 t CO 2
per ha for this landuse change activity. On the other hand, if the same crop land is converted to
forest land, the removal factor will be 80 tCO 2 per ha.Forest inventory data is used as the input
for estimation emission factor.
Estimates of emissions and removals can have different levels of uncertainty and can be
obtained in different ways. Therefore, the IPCC has proposed three different ‘Tiers’, which vary

25
according to the availability of data, level of uncertainty and the degree of analytical complexity
(IPCC, 2003, 2006).
Tier 1 is the most simple method requiring very low amount of country specific data, Tier 2 is
intermediate in terms of accuracy and data requirement and Tier 3 is the most advanced level
of reporting. Tiers 2 and 3 are generally considered more accurate methods.

Progressing from Tier 1 to Tier 3 represents a reduction in the level of uncertainty in GHG
estimates and an increase in the complexity of measurement processes and analyses.

26
Carbon Pools

There are five carbon pools in a forest ecosystem:

i. Above-ground Biomass (AGB): Above-ground biomass (AGB) consists of all living
vegetation above the soil surface including trees, shrubs, twigs stumps, bark, seeds
and foliage (Watson, 2009).
ii. Below-ground Biomass (BGB): This pool consists of living roots of plants. This pool is
usually derived from above-ground biomass through applying root-shoot ratios.
Belowground biomass is usually taken as 25% of the aboveground biomass but
varies depending upon forest type and ecological zone (Watson, 2009).
iii. Dead wood: This pool consists of all dead wood including standing and fallen dead
trees and stumps. This pool usually contains carbon in the range of 10-20% of the
above-ground pool in mature stands (Delaney et al., 1998). However, in young
forests and plantations this pool is usually insignificant and therefore ignored in field
measurements.
iv. Litter: Litter is defined as the recently fallen non-woody, dead, organic material on
the soil surface. Typically, it consists of dead leaves, flowers, fruits, seeds and bark
fragments lying on the forest floor.
v. Soil organic carbon (SOC): Soil organic carbon is the carbon present in the organic
matter in the forest soil. It is measured due to its significance in the forest
ecosystem. This pool is also affected by landuse change and management activities.

Carbon is exchanged between the above mentioned pools and the atmosphere through a
process called carbon cycle which results in changes in carbon stocks due to natural processes
of growth and decay and disturbance events such as fire, logging, insect and pests outbreaks,
land-use change and other events. A localized carbon cycle is shown in the Figure 9.

27
Figure 9: Local Carbon Cycle

Source: http://dapa.ciat.cgiar.org/carbon-sequestration-one-true-green-revolution/

4.4 Safeguards Information System

Forests are complex socio-ecological systems which support millions of local communities for
their livelihood and provide habitat to unique biodiversity. It is, therefore, broadly agreed that
it should ‘do no harm’, and where possible ‘do good’ and achieve multiple benefits. Given the
potential risks and benefits of REDD+ implementation, it has been internationally recognized
that the rights of local communities be protected and biodiversity conservation be ensured. For
this reason, parties to the UNFCCC agreed to the adoption of seven safeguards for REDD+ at the
16th Conference of the Parties (COP16) at Cancun which are also known as the ‘Cancun
safeguards’.
4.4.1 The Cancun safeguards

When implementing the REDD+ activities, the following safeguards should be promoted and
supported:

28
The UNFCCC recognizes that safeguards are one of the four pre-requisites for REDD+
implementation, and for accessing results-based payments, countries are required to
demonstrate how they have addressed and respected these safeguards throughout the
implementation of their REDD+ activities.
The specific UNFCCC safeguard requirements are the following:

29
Requirement 1: REDD+ activities should be implemented in a manner which is consistent with
the UNFCCC REDD+ safeguards.
REDD+ Safeguards should be addressed and respected throughout the implementation of
REDD+ programme. Countries are required to take steps to define how the UNFCCC REDD+
safeguards will be implemented, and to ensure compliance with the safeguards throughout the
implementation of REDD+ activities.

Requirement 3: Countries implementing REDD+ programme are required to provide a summary

of information on how the UNFCCC REDD+ Safeguards are being addressed and respected.
This summary of information will be provided periodically and will be part of the national
communications to UNFCCC. Format of the summary is available on the UNFCCC REDD+ web
platform.

30
 5. Co-Benefits of REDD+

REDD+ implementation will result in a bunch of the non-carbon benefits termed as co-benefits
of REDD+. These co-benefits are very important for many developing nations. Large proportions
of their populations are poor, have limited livelihood options and depend on forest resources
from the fragile mountains. Forest conservation and development will, therefore, provide
numerous opportunities beside climate change mitigation.

5.1 Biodiversity and Wildlife conservation

Forests provide habitats to many species of wild flora and fauna and thus their conservation are
crucial for biodiversity conservation. This will not only result in the conservation of wildlife but
will also provide income generating opportunities in the shape of trophy hunting or improved
ecotourism.
5.2 NTFPs and Medicinal Plants conservation

Forests are abodes to numerous valuable medicinal and aromatic plants as well as other non-
timber forest produce (NTFPs) such as honey, resin, wild fruits . Every year local people earn
millions of rupees from the collection and sale of these plants. Widespread degradation of
forests has resulted in decline in the production of medicinal and aromatic plants depriving the
traditional medicinal plants collectors from their livelihoods. Thus, it is evident that REDD+
activities will result in promotion of medicinal plants and other non-timber products which will
provide more livelihood opportunities to forest dependent communities. Similarly in coastal
areas, mangroves forests are very important for shrimp and fish breeding. Thus, conservation
and development of mangroves forests will result in improvement in the fish, shrimps and
other aquatic fauna.

31
 5.3 Watershed Protection

One of the most important ecosystem service provided by forests is watershed protection and
water regulation. This role is more important for Pakistan where most of the forests are located
in the northern upland mountains which constitute crucial watershed of the Indus River
System. Sustain supply of water is crucial for irrigation of agricultural farmlands in the Indus
plains of Punjab and Sindh and hydro power generation. As the main objective of REDD+ is to
maintain healthy vegetation cover in the forests and bring more areas under tree cover, it will
improve watershed protection. Thus, REDD+ implementation will result in food security and
energy security in the country.

5.4 Landslide control and soil conservation

Landslidding and landslips are severe problems in the mountainous areas especially in monsoon
when heavy intensity showers occur in these areas. These landslides often result in heavy life
and material losses. Forests provide barrier to landslidding and landslips. Improving forest cover
under REDD+ will result in stabilization of the landslide areas. Similarly soil erosion in arid areas
due to wind velocity will also be reduced by increasing tree cover under REDD+. Thus, REDD+
will have positive environmental impacts.

5.5 Coastal areas protection

Coastal areas are exposed to frequent sea storms, tsunamis and waves actions. Mangroves
forests provide protection to coastal areas against these threats. Conservation and
development of mangroves forests under REDD+ will improve the protective functions of these
forests and will have positive impacts on the protection of coastal areas.

32
 5.6 Promotion of ecotourism

Forest areas provide scenic landscape and numerous attractions for tourists. Every year millions
of tourism visit these forest areas and enjoy the pleasant weather and unique landscape. This
tourism industry provides livelihoods to millions of people and forest dependent communities.
Conservation of forests under REDD+ will improve tourism industry and thus will support rural
economy.

5.7 Social awareness and capacity building

REDD+ will bring about improvement in forest governance, institutional setup and policies for
forest and allied natural resource management at local to national levels. REDD+
implementation requires a transparent and participatory decision making process as well as
equitable benefit sharing mechanism which can contribute to improved forest governance.
This will result in public awareness, social mobilization and community organization in the
forest areas. All the three phases of REDD+ have provision for capacity building of the forest
departments, other government agencies and community groups. Thus, REDD+ implementation
will help in overall capacity building of the stakeholders.

5.8 Livelihood improvement of local communities

REDD+ acknowledges the role of local and indigenous communities in forest conservation and
development. The main objective of REDD+ is to provide cash income from the sale of carbon
credits through forest conservation. Besides, REDD+ activities can provide employment
opportunities in forest based industry, improve timber and non-timber products from the
forests, improve quality of water and provide fuelwood and promote ecotourism. All these
activities will provide more income opportunities resulting in overall improvement in the
livelihoods of local communities.

33
 5.9 Climate Change Adaptation

REDD+ will also contribute in climate change adaptation. Forest conservation and development
will increase the resilience of forest ecosystems which is important for climate change
adaptation. With improved forest management, the local environment and associated
ecosystems will become stronger and less vulnerable to adverse impacts of climate change.
Capacity building programmes and general awareness about climate change will help achieve
climate change adaptation in forest areas.

5.10 Other Benefits

 REDD+ being an innovative tool will provide an opportunity for land reforms and
amendment of the relevant laws and policies to ensure forest conservation and local
communities’ rights. Land demarcation could also be carried out to clearly set
boundaries of the REDD+ areas.
 REDD+ may help in resolution of outstanding land and territorial disputes as clear land
tenure could be a precondition for any REDD+ project.
 REDD+ could attract national and international funding which will support community
based forest management.
 By proper implementation of REDD+ Safeguards, the rights of the local communities to
their land and forest resources will be fully recognized and protected and thus they may
consider to join REDD+ programmes and enter into partnerships with foundations,
conservation agencies and private companies for REDD+ implementation.

6. Challenges for REDD+ implementation

REDD+ apparently looks very promising tool for forest conservation and rewarding the local
communities but there are several bottlenecks and challenges in REDD+ implementation. The
key challenges are described in the following lines.

34
 6.1 Additionality

Additionality is a technical term which means to prove that “additional” carbon has been saved
as a result of REDD+ intervention. Additionality explains whether an emissions reduction or
removal would have occurred in the absence of REDD+ project. Additionality is important when
emission reductions or removals are used as offsets. It is required the implementers of the
REDD+ programme prove that the “carbon gains” or emission reductions would have not
happened in the absence of REDD+ activities. In other words, it has to be proven that without
the REDD+ payment the forest would have been cut. This is important to ensure that REDD+
results in real climate change mitigation.

6.2 Leakage or displacement of emissions

Leakage or displacement of emissions simply means protecting here and cutting there. For
example if a container is filled with water and it has a hole, then leakage would happen. In the
context of REDD+ it is referred to the shifting or displacement of deforestation when one forest
area is protected under REDD+, then the trees are cut in another forest area. If leakage is not
addressed then there will be no net reduction in the forest related emissions.

6.3 Conflicts

REDD+ will bring financial benefits for which different groups and communities will be
competing with each other. This may lead to increased inequality and frequent social conflicts.
REDD+ may also increase the conflicts between and even within local communities due to
increase in the value of forests. The expected benefits from REDD programme may cause more
conflicts over boundaries of forest areas between communities or between forest owners.
There are also chances of conflicts over distribution of payments and control on benefits from
REDD+ programme if a strong and transparent mechanism is not devised for benefit sharing.

35
 6.4 Exclusion of marginalized sections of society

REDD+ is a game of money which is always won by powerful people. It is feared that poor
segments of society like forest users, tenants, nomads, women, minorities and other
disadvantaged people my further be marginalized as a result of REDD+ implementation. Their
rights to use forests for their livelihood may be hindered and they may not be able to get
compensation or alternate to their livelihood.

Many forest management practices traditionally used by indigenous communities and local
people such as the use of fire for shifting cultivation, controlled burning of forests to improve
grass production for livestock and the collection of fuel wood and other non-timber forest
products may be restricted under REDD+ programs. Thus, indigenous communities may be
deprived of their traditional practices and rights.

6.5 Low prices of carbon credits

Availability of adequate and sustained flow of cash for REDD+ implementation is a serious issue.
Besides, REDD+ projects involve substantial costs for REDD+ project preparation, validation,
implementation, monitoring and verification. There are also opportunity costs arising from the
foregoing of activities such as logging, grazing and firewood collection. Currently the carbon
prices are very low e.g. US$ 5 per tonne of CO 2 which cannot meet the REDD+ costs and provide
alternate to the timber sale.

6.6 Lack of sustainability or permanence of REDD+ interventions

REDD+ and other carbon partnership agreements are usually long-term contracts, extending
over several decades. Local communities are often interested in short term benefits and they
generally do not follow long term agreements and restrictions. Similarly, there is political and

36
security instability in the country. So there will be high risks of reversal or loss of gains achieved
through REDD+ interventions.
6.7 Institutional Challenges

REDD+ is indeed a complex and highly technical and innovative idea. Forest Department and
other government agencies in Pakistan generally do not accept new ideas and there is always a
kind of disapproval and resistance by the officials who may lose their legal or illegal perks and
privileges due to implementation of REDD+. This will create an institutional challenge for
REDD+. Besides, there is a need to bring drastic reforms in forest laws, rules and practices to
shift forest management towards carbon forestry. This needs substantial capacity building,
commitment and coordination among different government agencies.

6.8 Stakeholders Engagement

Local stakeholders engagement is one of the most difficult aspects of developing REDD+
projects, due to the need to gain commitment and support of the communities over the long
lifetime of the initiative (often more than 20 years). The local communities are usually
interested in short time benefits and ensuring their support for long term projects is a great
challenge. It is also a challenging job to engage large numbers of stakeholders and how to
clearly explain forest carbon initiatives to them, how to articulate the potential benefits and
risks and how to manage their expectations. In addition, the long time horizon (sometimes
several years) between project start and the delivery of the carbon benefits is also a challenge.
It is a challenge to persuade local people for engagement with REDD+ projects because of their
distrust of government or NGOs.

7. REDD+ Finances
The most important issue in REDD+ is the availability of sustained finances. As REDD+ is a
market based mechanism, two types of carbon markets exist in the world: compliance market
and voluntary markets

37
 7.1 Compliance Carbon Markets
National and regional-level governments around the world are incorporating forest carbon into
their carbon pricing programs, with 13 countries (representing nearly every region of the world)
having some form of government-facilitated program for trading forestry and land-use carbon
offsets.
Three of the biggest programs have undergone major changes in 2016:
 The Australian government’s Emissions Reduction Fund, which is the successor to the
now-rescinded cap-and-trade program, contracted 68.8 million tonnes of carbon dioxide
equivalent (MtCO 2e) of forestry and land-use carbon offsets to occur over the next 10
years, the highest of any program registered so far. However out of the total $1.67
billion, about $1.63 billion has already been contracted to project developers, future
finance for the fund remains uncertain.
 California’s cap-and-trade program has been extended through 2030, with major
changes in how companies can use offsets to meet their required reductions. While
demand data will not be available until after the program’s second compliance period
ends in 2017, supply hit a record high in 2016: approved offset registries issued 31.0
MtCO 2e of eligible forest offsets, of which 16.0 MtCO 2e were officially reissued by the
Air Resources Board to become available for sale to compliance buyers.
 Retirements of domestic forest carbon offsets have picked up dramatically in New
Zealand, reaching a record high in 2016. This is because the country’s carbon market no
longer accepts international offsets, and buyers have turned to purchasing domestic
forest carbon offsets.

7.2 Voluntary Carbon Markets

Voluntary suppliers have reported transacting nearly $1B worth of forest carbon offsets
since 2008. The volume of voluntary offsets transacted in 2016 contracted 21% from the
previous year, yet the average price paid for these forest carbon offsets rose slightly—
from US$ 4.9/tCO 2e in 2015 to US$ 5.2/tCO 2e in 2016.Voluntary end buyers retired 7.9

38
MtCO 2e, the second-highest volume of offsets ever retired according to voluntary
carbon offset registries (Hamrick and Gallant, 2017). Most offsets were sold from
projects based in Peru, Brazil, Indonesia, and the United States. Most buyers are based
in the United States, Netherlands, United Kingdom, France, and Germany.
7.3 Payments for REDD+ Programs:
International donors have pledged a cumulative $2.9 Billion in payments for REDD+, of
which $218 Million has been disbursed. This does not include “REDD+ readiness”
pledges and disbursements. The biggest pledge in recent years occurred in October
2017, when the Green Climate Fund pledged $500 million to pay for REDD+ offsets. The
fund is now seeking applications from countries that have active REDD+ programs and
have successfully avoided deforestation between 2014 and 2019 (Hamrick and Gallant,
2017).
While the World Bank’s Forest Carbon Partnership Facility has not formally contracted
offsets from its member supply countries, the fund is moving closer to that date. The
fund has officially selected Chile, the Democratic Republic of Congo and Ghana into its
portfolio and provisionally selected Costa Rica, Mexico and the Republic of Congo.

Nearly all forest carbon projects reported providing benefits besides emissions
reductions; the most-cited co‑benefits revolved around employing and training local
people, providing community services, and protecting biodiversity. Over half of projects
reporting on their funding sources received their entire revenue from the sale of forest
carbon offsets.

39
 REFERENCES
Bukhari, S.S.B., Laeeq, M.T. and Haider, A., 2012. Landcover Atlas of Pakistan. Pakistan Forest
Instittue, Peshawar.

Cairns, M. A., Brown, S., Helmer, E. H., Baumgardner, G. A., 1997. Root biomass allocation in the
world’s upland forests, Oecologia, 111:1-11

Cairns, M.A., Olmsted, I., Granados, J. and Argaez, J., 2003. Composition and aboveground tree
biomass of a dry semi-evergreen forest on Mexico’s Yucatan Peninsula. Forest Ecology &
Management 186, 125–132

CLP, 2014. Briefing Note: Unpacking the ‘Warsaw Framework for REDD+’ The requirements for
implementing REDD+ under the United Nations Framework Convention on Climate Change,
Climate Law and Policy.

Delaney, M., Brown, S., Lugo, A.E., Torres-Lezama, A., Bello Quintero, N., 1998. The quantity
and turnover of dead wood in permanent forest plots in six life zones of Venezuela, Biotropica,
30:2–11

Dixon, R. K., Brown, S. A., Houghton, R. A., Solomon, A. M., Trexler, M. C. and Wisniewski, J.,
1994, Carbon pools and flux of global forest ecosystems, Science 263, 185–190

Erni, C. 2011. Understanding Community-based REDD+ A Manual for Indigenous Community

Trainers. International Work Group for Indigenous Affairs (IWGIA) Asia Indigenous Peoples Pact
(AIPP).

FAO, 2006. Forests and Climate Change. Available from:

ftp://ftp.fao.org/newsroom/en/focus/2006/1000247/index.html

FAO, 2013. National Forest Monitoring Systems: Monitoring and Measurement, Reporting and
Verification (M & MRV) in the context of REDD+ Activities. Food and Agriculture Organization of
the United Nations, Rome.

FAO, 2015. Technical considerations for Forest Reference Emission Level and/or Forest
Reference Level construction for REDD+ under the UNFCCC. Food and Agriculture Organization
of the United Nations, Rome.

Government of Pakistan (2015). Action Plan for the Implementation of the National Forest
Monitoring System of Pakistan. Ministry of Climate Change, Government of Pakistan

40
Hamrick, K. and Gallant, M. 2017. Fertile Ground: State of Forest Carbon Finance 2017. Forest
Trends’ Ecosystem Marketplace, Washington DC.

IPCC , 2003. Good Practice Guidance for Land use, Land-use Change and Forestry. http://www.
ipcc-nggip.iges.or.jp/public/gpglulucf/gpglulucf_contents.html

IPCC, 2006. 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Volume 4: AFOLU.
Available from: http://www.ipcc-nggip.iges.or.jp/public/2006gl/index.html

IPCC, 2007. Summary for Policymakers: Synthesis Report. An assessment of the

Intergovernmental Panel on Climate Change. Available from:
http://www.ipcc.ch/pdf/assessment-report/ar4/syr/ar4_syr_spm.pdf

Soriano, E.B., Carling, J., Chavez, R., Erni, C. and Tugendhat, H. 2010. What is REDD? A Guide for
indigenous communities. Asia Indigenous Peoples Pact (AIPP) Forest Peoples Programme (FPP)
Internaonal Work Group for Indigenous Affairs (IWGIA) Tebtebba.

UN-REDD. 2013. National Forest-Monitoring Systems: Measurement, Reporting and Verification

(M & MRV) in the Context of REDD+ Activities. Rome: Food and Agricultural Organization.
http://www.unredd.net/index.php?option=com_docman&task=doc_download&gid=10305&Ite
mid=53

UN-REDD. 2016. Towards a common understanding of REDD+ under the UNFCCC. Food and Agricultural
Organization, Rome.
https://www.uncclearn.org/sites/default/files/inventory/redd_under_the_unfccc_hq.6_713128_1.pdf

Watson, C., 2009. Forest Carbon Accounting: Overview and Principles. UNDP, UNEP, UNEP Risoe
Centre, Roskilde, Denmark.

41
42