Sustainable Management & Conservation of Peru's Forest

Sustainable Management and Conservation of Peru’s Forests in the Context of Climate Change Gabriel Quijandría Vice Minister of Strategic Development of Natural Resources Ministry of Environment Inter-American Development Bank Washington DC, February 8, 2016

Outline • The Peruvian forest • The challenges • Deforestation: Current state and trends, contribution to GHG emissions • Dealing with the Problem: An intersectoral commitment • A new approach • Next Steps

The Peruvian forest • 2nd largest forest area in Latin America • 4th largest tropical forest area in the world

Megadiverse country with large forest carbon stocks: 7 billion metric tons of above ground biomass

Forests cover: 73´280,424 has., • 9th largest representing 57.3% of the national forest area territory, more than 94% located in the in the world Amazon Basin

The challenges A forested country but not a “forest country”: •

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Forests do not substantively contribute to the national economy; Inadequate management of forest áreas; Limited political attention to forests; Not enough budget for institutions linked to forest sector; Conflict situations, which also involve indigenous peoples.

The big problems: •

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Deforestation (timber felling and fires, slash & burn). 118,000 has. on average in 20002014. In 2014, this rose to 177,571 has.

35% of the country’s GHG emissions.

Degradation (mainly associated with illegal logging, which degrades rather than clear).

Deforestation

Deforestation concentration Overall loss of forest cover

Districts with the most deforestation

• Rate of deforestation rising (NREF) still HFLD country; • >47% of lands without designated rights or legal status; • 85% of deforestation in polygons <5 ha/year; • >80% on forested lands (lower probability of maintaining profitable production in the long term, abandonment of lands with declining cultivation, and clearing of new areas to replace them).

CAUSES OF DEFORESTATION

Direct: • Small- and medium-scale agriculture and ranching • Large-scale agriculture • Alluvial gold mining (illegal) • Extractive industries and infrastructure Indirect: • Institutional factors (tenure, land use planning, rule of law, governance) • Social factors (Poverty, migration, and culture).

• Economic factors (Low value of forests, Demand for substitute forest products, Challenge of accessing financing for sustainable management)

Scenario of low governance

Combine to result in…

Highways/ new roads

Migration Low value of forests, opportunity costs, etc.

Deforestation fronts and hotspots increasing

Dealing with the problem: An intersectoral commitment Key elements • The causes are multidemensional and act synergistically; • Economic causes have a high impact on deforestation processes; • Our experience shows that measures limited to enforcement do not work because that does not address the root causes, only the visible manifestation

Consequences

• Requires articulated policies and intersectoral and multilevel interventions; • The solutions require paying attention to financial aspects associated with fulfilling environmenal commitments; • The solutions should address indirect causes in an integrated manner.

Proyecto de Reforestación

Proyecto de Ordenamiento Forestal Proyecto de Incentivos para el MFS de las Propiedades

A new approach

Proyecto para la Recuperación de las Áreas Intervenidas

Agricultura y Pecuaria Intensiva

Propiedades Agroforestales

Manejo Forestal Sostenible

Proyecto de Gestión Forestal

Proyecto de Desarrollo de Mercados e Incentivos

Manejo Forestal de Uso Múltiple

Protección Integral

• Integrated approach to managing forested landscapes (forests and their margins), in a sustainable, inclusive and competitive manner; • Promote a focus on “production-protection combos”: Productive investments in and outside of forests; • Increase the value of ecosystem services for each unit of the landscape; • Reduce carbon/GHG emissions and increase carbon sinks and reserves; • Sustainable forest management is key to increase the value of forests and deter deforestation and degradation; • Establishing new PAs and conservation tools and improving performance.

A new approach Goal of net-zero emissions from LULUCF sector: a) b) c)

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Value environmental assets of forests.

Recover impacted areas and decrease the pressure on forests.

Strengthen governance and capacity to comply with regulatory norms aimed at balancing forest services, as public goods, with private interests.

GOVERNANCE Strengthen territorial planning with actions by the state Carry out Forest Cover Monitoring (annually, early alert, land use change) Develop business models and financing systems that meet sector needs, as well as the needs of clusters.

Build national and regional authority forest capacity and develop Forest and Wildlife Management Units Zoning, and forest and territorial planning

IMPACTED AREAS

FORESTS

• Increase the generation of value and employment by strengthening main value chains and promoting a restructuring through activities that increase the productivity of land.

• Improve competitiveness related to forest and natural capital activities

• Recovery of affected areas, especially those on the margins and with low productivity, through commercial reforestation and agroforestry systems, in an inclusive manner.

• Value chains for legal products that respect agreed-upon standards

• Sustainable forest management (of wood) in areas where it is legally permitted (concessions, local forests, indigenous communities), complying with the established use practices.

• Use of non-timber forest products, wildlife tourism, and payment for ecosystem services (within the framework of the Law of Mechanisms for Compensation for Ecosystems Services)

INDCS AND FORESTS

69%

EnergĂ­a

4% 2% 12%

Transporte P. Industriales Agricultura USCUSS

5%

6%

3%

Desechos Otros

Proposed INDC represents a GHG reduction of 30% compared to the BAU scenario by 2030.

PAs and other means of conservation • Creation of new national and regional level PAs and definitive categorization: 2.34 million hectares: 10% increase in coverage; • Private PAs cover 300,000 hectares: 42% increase between 2011-2016; • Forest Conservation Program: 600,000 hectares under conservation agreements with indigenous communities.

Results-Based-Payment Agreement with Norway and Germany • Up to US$ 300 million to be payed for verified reductions of GHG emissions until 2021; • First phase focused in generating enabling conditions: Approval of the Forest and Climate Change Strategy, National Level of Reference presented to UNFCCC, deforestation monitoring system; • Titling of at least 5 million hectares of indigenous lands and at least 2 million of them included in payment-for-performance mechanism; • First installment for US$ 5 million approved in December during COP21 in Paris.

Next Steps • Strengthen the implementation of the new legal and institutional framework (SINAFOR, SERFOR, CONAFOR, OSINFOR, ARFFS, PNCBMCC, etc.).

• Complete national management instruments (National Forest and Climate Change Strategy, National Forest Plan) and incorporate forest topics in the regional governments’ development plans.

• Strengthen the National Forest Information System, prioritizing the Forest Control Unit and the Forest Cover Monitoring Unit.

• Implement a focus on private, productive investments in forests and in low-carbon agriculture within forested landscapes.

• Establish and implement Forest Management Units and their Management Committees (to achieve local-level and participatory management fo forests).

Next Steps Complete forest and territorial planning and granting land rights (eliminate the â&#x20AC;&#x153;no-manâ&#x20AC;&#x2122;s landâ&#x20AC;? areas) including titling pending native community territorial claims.

The map shows the forest and territorial planning and the assignation of rights in the Peruvian Amazon.

Areas without assigned rights and without a legal zoning category are shown in yellow.

Next Steps • Ensure public financing, both from national and international sources; • Align technical and financial cooperation to the established priorities and ongoing processes; • Assemble public and international cooperation investment to create enabling conditions to attract private investments in the magnitude that is needed.

THANK YOU VERY MUCH!