COP27: Sharm El-Sheikh Implementation Plan Re-Affirms Developing Country Action to Slow, Stop, and Reverse Deforestation through the REDD+ Mechanism

Rainforest Nations Poised to Bring New Tranche of Sovereign REDD+ Carbon Credits to the Market

SHARM EL SHIEKH, Egypt, Nov. 30, 2022 /PRNewswire/ -- One year after COP26 where the REDD+ Mechanism was controversially removed from the implementation article of the Paris Agreement (Article 6), rainforests nations successfully negotiated the mechanism back into the COP27 Sharm-El Sheikh Implementation Plan on Saturday night.

In thrilling last-minute negotiations, the Coalition for Rainforest Nations (CfRN) re-affirmed the REDD+ mechanism as the global initiative for tackling deforestation under the Paris Agreement, and reiterated the role of private finance in supporting developing country efforts to slow deforestation and reduce emissions at national level.

"We are proud of what we have achieved at the COP, especially after last year's bitter disappointment. The positive outcome of the final text on forests and finance is in line Papua New Guinea's Prime Minister Hon. James Marape's call for climate action at UN General Assembly," said Simo Kilepa, Minister of Environment, Conservation and Climate Change, Papua New Guinea. "The voice of the Global South has been heard. We thank the Egyptian Presidency for the transparency and inclusiveness with which they conducted the talks this year."

The Coalition received notable support from Eve Bazaiba, Deputy Prime Minister of the Democratic Republic of Congo, who flew into Sharm El- Sheikh late Thursday evening. She led the charge with the Coalition in the final hours to rally the Africa Group, Indonesia, and Brazil in support of REDD+ - and helped fight off several failed attempts by the United States to remove references to the REDD+ mechanism from paragraph 5.2 of the Paris Agreement.

"Now we are asking ourselves: 'what are we doing here at these negotiations if they will remove the very important element to fight against the warming of the planet?' We want, ask, demand, to reinsert the role of rainforests and peatlands in the cover decisions," said Eva Bazaiba, Deputy Prime Minister of the Democratic Republic of Congo.

Developing countries fought to ensure that the REDD+ mechanism was included in the cover design to focus efforts on the Paris Agreement, that includes over 90% of global rainforests, rather than other diffuse efforts, such as the voluntary carbon standards and ART-Trees, which the United States favors. These structures lie outside the Paris Agreement and are designed to remove carbon credits from sovereign nations and attempt to lock in low prices for developing countries for the future.

Reducing Emissions from Deforestation and Degradation (REDD+), which was originated by CfRN in 2005, is a global conservation mechanism that rewards rainforest nations for successfully slowing deforestation and reducing emissions under the Paris Agreement. In the COP27 Sharm El-Sheikh Implementation Plan, REDD+ is now restated in section XVI. The section, titled Forests:

47.           Recalls that, in the context of the provision of adequate and predictable support to developing country Parties, Parties should collectively aim to slow, halt and reverse forest cover and carbon loss, in accordance with national circumstances, consistently with the ultimate objective of the Convention, as stated in its Article 230

Private sector finance has always been viewed as integral to the success of the REDD+ mechanism, and there has never been a COP decision that ruled REDD+ out of the carbon markets. In Egypt, CfRN re-iterated this position with the inclusion of a footnote (*30) to the cover decision. The footnote refers to previously recognized COP decisions ( 1/CP.16 and 9/CP.19.) that allow private sector finance to developing countries in return for accomplished emissions reductions under the REDD+ mechanism. Footnote 30 points to the decision CP.19 Work Programme on Results-Based Finance to Progress the Full Implementation of the Activities referred to in decision 1/CP.16, paragraph 70, and:

"…Reaffirms that results-based finance provided to developing country Parties for the full implementation of the activities referred to in decision 1/CP.16, paragraph 70, that is new, additional and predictable may come from a variety of sources, public and private, bilateral, and multilateral, including alternative sources, as referred to in decision 2/CP.17, paragraph 65;"

The Sharm El-Sheikh Implementation Plan clarifies once and for all that developing nations have always been able to access private finance and markets for forest preservation, including through international carbon markets.

"The Plan finally puts to bed years of misinformation that UNFCCC REDD+ wasn't intended for companies or carbon markets. The private sector has always been welcome to support the efforts of rainforest nations. REDD+ sovereign carbon credits are of the highest environmental integrity and include some of the most incredible biodiversity on the planet," said Kevin Conrad, Executive Director of the Coalition for Rainforest Nations.

Earlier this month, the UNFCCC approved West African country, Gabon to the tune of 90 million tons of emissions reductions, called REDD+ Results, for slowing deforestation over a decade (2010-2018). During this period, Gabon not only legislated against deforestation but also protected the habitats of endangered species, most notably, the African Forest Elephants whose numbers grew from 60,000 to 90,000. For Gabon, revenue from the sale of its sovereign REDD+ carbon credits will go to forest preservation, sustainable forest management, paying off sovereign debt, and supporting its transition to a sustainable economy.

Both Honduras and Belize are set to issue 5.6 million and 7.7 million tons of REDD+ sovereign carbon credits respectively for reducing emissions and protecting the world's biggest Jaguar habitat – the Central American Jaguar corridor. The credits are expected to be issued in Q1 2023. Papua New Guinea is expected to follow suit with over 90 million tons later in 2023.

"We are looking for climate justice," says Environment Minister, Lucky Medina of Honduras. "Our president has made the environment a priority. Sovereign carbon credits are the best way to stop deforestation, limit migration, and reduce inequality. We are part of the solution. We are not part of the problem."

In November, the European Energy Exchange (EEX), the leading marketplace for trading carbon dioxide (CO2) emissions in Europe and internationally, announced a partnership with CfRN to cooperate on the establishment of a market platform for REDD+ sovereign carbon credits. Deutsche Bank has also launched a white paper on sovereign carbon. For more information, visit www.rainforestcoalition.org

The Coalition for Rainforest Nations is a US not-for-profit established by forested tropical countries to collaboratively reconcile forest stewardship with economic development. It helps tropical governments and communities to responsibly manage their rainforests, under the United Nations Framework Convention on Climate Change, through capacity-building, policy and financial support. It is also the co-architect of the UNFCCC REDD+ mechanism. CfRN is headquartered in New York.

30 Decisions 1/CP.16 and 9/CP.19.

SOURCE Coalition for Rainforest Nations