Should REDD+ be Included in the CDM? Analysis of issues and options Prepared for the CDM Policy Dialogue

Summary

This paper recommend the Panel give close consideration to expanding CDM to include additional REDD+ activities, and/or piloting sectoral “RED” at national or subnational scale.

The treatment of forests continues to evolve under the UNFCCC and Kyoto Protocol, with the most recent developments under the Convention advancing REDD+ considerably. The origin of REDD+ on the international agenda dates to the submission by Papua New Guinea and Costa Rica at COP-11 in 2005 that deforestation be added to the annual meeting’s agenda. Since that time the scope has expanded from reducing emissions from deforestation (RED) to include also forest degradation, conservation and enhancement of forest carbon stocks, and sustainable management of forests, known as REDD+. Further UNFCCC decisions have reaffirmed the “crucial role” of REDD+ and provided guidance and frameworks to further develop REDD+, recognizing the use of market-based finance.  

This evolution suggests a need to revisit early decisions to exclude some REDD+ activities from the CDM. Currently under the Kyoto Protocol’s CDM, only the afforestation and reforestation activities of REDD+ are included due to initial environmental and market concerns with other activities in the full scope of REDD+. However, Parties to the Kyoto Protocol are currently considering expanding the scope of eligible land use activities beyond afforestation/reforestation. A broader reform of the CDM beyond a project based approach to possibly include sectoral approaches is also being contemplated, which, while distinct from forest sector scope considerations, could align well with REDD+.