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National Inter-Ministerial Dialogue on Climate Change Evaluating investment and financial flows for mitigation options in the forestry sector in Liberia Samuel N. Koffa Cape Hotel, Monrovia 24 - 26 June, 2009 0 Why forestry is a key sector for Liberia Major climate change impacts • Sequestration of carbon (above & below ground biomass, deadwood, litter, soil organic matter) • Substitution of steel, aluminum, plastics and other materials (contributing to reduced emissions) • Forest-based bioenergy (fuelwood, charcoal , other forms) can substitute fossil fuels, with similar effects of climate change mitigation 1 Why forestry is a key sector for Liberia Environmental significance • Sheltering of agricultural crops against drought • Conservation of watersheds and maintenance of water quality (purification) • Protection of humankind against nuisances (noises, fumes, smells , storm) • Flood regulation and recreational opportunities • Spiritual and cultural fulfillment Social,health and livelihood importance • Reduction of the quality and quantity of surface water • Displacement of indigenous populations who normally reside in the forest • Scarcity/depletion of forest products(food,medicinals,etc) upon which forest-dependent communities depend 2 Description of the forestry sector Contribution •Economic significance (USD20M in revenue,USD100M in timber export earnings,2002;USD42M NTFPs,1999) •GDP and employment (Contributed 20-22% of GDP, delivered 7000-8000 jobs, 2008) •Major physical impact of climate change on forestry (Expanding forest pests, reduced growth of certain forest tree species ,i.e. Tetraberlina tubmaniana) •Expanse of forest( about 50% of the country now , but was over 90% in 1959) •Biodiversity and habitat functions(Biodiversity both in themselves and as habitat for other species-fauna, flora, microorganisms) • Carbon sequestration(Unquantified volume of carbon dioxide and other GHGs are sequestered) •Has the strongest potential to serve as additional carbon sinks 3 Proposed forestry mitigation options Principal mitigation options •Reduction of emissions from deforestation and forest degradation (REDD), by committing forests as carbon pools (protection and sustainable management of existing forests) •Enhancement of carbon sinks through enhancing the sequestration rate in existing and new forests •Provision of wood fuels as a substitute for fossil fuels (biofuel plantations for fossil fuel substitute) •Provision of wood products for more energy-intensive materials (gasification, etc) 4 Activities preparatory to conducting I&FF assessment Institutional arrangements Institutions Duties and functions Ministry of Land, Mines Mineral resource development and energy, land administration, issuance of mining licenses, monitoring of & Energy (MLME) the quantity and quality of water (surface, ground) Forestry Development Authority (FDA) Formulation of forest policies, supervision of adherence to forest legislation and agreements, management of state forests, evaluation of investment proposals and collection of revenue Ministry of Planning & Economic Affairs (MPEA) Provision of technical guidance to all government agencies in project preparation, and the major stakeholder in general environmental and developmental issues. Functions as a formal link between implementing ministries and the international community and functions as a key holder of environmental data 5 Activities preparatory to conducting I&FF assessment continued Institutional arrangements continued Institutions Duties and functions Ministry of Finance (MoF) Management ,direction and coordination of financial affairs of the country National Investment Commission Promotion, encouragement and coordination of all investments in the country Ministry of Agriculture (MoF) Regulation of agricultural and forestry activities; conservation/protection of soils College of Agriculture & Forestry Teaching and research in soil science, forestry , wood science and agriculture Environmental Protection Agency (EPA) Coordination, monitoring and supervision of environmental issues and projects on the national level 6 Activities preparatory to conducting I&FF assessment continued Key stakeholders and coordination scheme Key stakeholders Duties and functions Government institutions Development of legal, policy and performance management frameworks, planning and coordination of national climate change mitigation activities, and support and enforcement of international climate change mitigation initiatives Inter-governmental institutions Development, enforcement, monitoring and evaluation of notional, regional and global climate change mitigation standards and initiatives International financial and investment institutions (climate change ) Generation and provision of funds for global climate change mitigation initiatives, and setting verifiable standards for funds (grants, loans) 7 Activities preparatory to conducting I&FF assessment continued Key stakeholders and coordination scheme continued Key stakeholders Duties and functions Private sector Creation and support for awareness creation mechanisms and investigation of climate impact, contribution to sustainable investment by matching government funds for climate change mitigation projects Academic and research institutions Conduct and dissemination of results of research on various areas in forest management , and design and testing of climate change methodologies, etc Ordinary citizens and civil society Organized to serve as a climate change project planning, design, monitoring and evaluation body 8 Potential sources of finance and investment for the proposed climate change mitigation options Potential sources of finance and investment Mitigation options A brief description of sources of finance & investment CDM (UNFCCC) USD94.7billion (2008) REDD (Norwegian Climate & USD600million annually (since 2008) Forest Initiative) Forest Carbon Partnership Facility (World Bank) USD250million (for REDD readiness since 2007) 9 Key issues for assessing I&FF Information and man power constraints •Lack of definition of the scope of I&FF assessment (land tenure and access rights, existing forest ecosystems and their conditions, extent and nature of forest resources, land available for reforestation and/or afforestation, etc) •Absence of preliminary mitigation measures (researchers need to identify the preliminary set of forest/land management options for the country; this preliminary list of measures is needed to assess which analytical approaches can incorporate the measures •Absence of any analytical approach for the assessment of I&FF •Lack of appropriate manpower •Deforestation and illegal logging •Ill-defined land tenure system and confused land use and property rights 10