Papua New Guinea Advocates Voluntary Carbon Credits

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Papua New Guinea (PNG) and its coalition of 53 forest nations supporting the initiative to Reduce Emissions from Deforestation and Forest Degradation (REDD) are pushing for the inclusion of a REDD mechanism in the post 2012 global climate regime.

The new rules to come into force by 2013 will determine if avoided deforestation is to be included. If included, the post Kyoto climate change agreement to be finalised in Copenhagen in December 2009 will decide the terms on which ‘forest’ credits will be accepted.

A briefing paper prepared by PNG’s Office of Climate Change and Carbon Trading (OCCCT) and obtained by the Pacific Communications Team covering COP14 in Poznan, said if countries agree not to cut down their natural forests, ‘carbon can be traded at the global price of €25 a tonne.

“Keeping forest intact has not been recognised yet as a source of carbon credits in these international regulated carbon markets. However, in recent times, there is strong pressure and lobbying for it to be recognised, the PNG Government briefing paper said.

At the same time, Papua New Guinea is also advocating voluntary markets for carbon credits.

“We are already starting voluntary markets for our carbon credits and next year we hope to announce two major buyers from the European Union,” said Dr Chalapan Kaluwin, an adviser to the Papua New Guinea Government.

“Voluntary market for high grade validated deforestation or other bio diversity credits are high. More than $150 million worth of voluntary carbon credits were traded in 2008, of which only $27 million were for forest related credits.

“The reason for this is that only a few forests related credit projects were completed.”

The PNG Government paper said the ultimate buyer of carbon credits are companies and individuals who want them in the voluntary market.

“Tropical rainforest would supply a continuous stream of credits available for sale in the voluntary carbon market. This is why forests are now seen as green infrastructure which is a large community asset that can be managed to provide a steady stream of income.”

During a preliminary session on the margins of the Conference of Parties (COP14) meeting currently underway in the Polish city of Poznan, PNG, as one of the initiators of the REDD initiative committed to pushing the process quickly to meet the one year deadline.

“This is to ensure that REDD becomes the fourth initiative to reduce carbon emission in the Kyoto Protocol. We hope that REDD will be recognised in Copenhagen.

“Right, now REDD has been accepted in the Bali Plan of Action and here in Poznan, we hope to be able to raise its profile with the grouping of the G77 and China, said Professor Kaluwin.

He is quietly confident that majority of the G77 and China will come around to endorse the REDD initiative.

The Bali Plan of Action adopted at COP13 in December last year mandated countries to negotiate a post 2012 legal instruments, including possible financial incentives for forest based climate change mitigation actions in developing countries.

“In Accra in August this year, 23 countries supported an ad hoc working group on long term co-operation on REDD, which included Papua New Guinea, Solomon Islands and Vanuatu.

“It’s a good start for us. We are also marketing REDD to our Pacific neighbours, who we hope will join us in our effort,” Professor Kaluwin said.

The Papua New Guinea Eco-Forestry Forum, representing a coalition of 15 non governmental organisations present at the Poznan meeting said government must put its act together if it wants to succeed in Copenhagen.

“It should begin at home – mobilise the local people first before it goes to international negotiations.

“As it is now, the landowners, one of the three important stakeholders in the proposed Reduced Emission from Deforestation and Degradation (REDD) initiative and generally the people of Papua New Guinea have not been consulted.

“It’s OK to go and market REDD to the international community but if the people at home are not aware of what it does to the environment, then I think there is a lot of inconsistency on the part of the PNG Government,” said Ken Mondiai, head of the vocal  Eco-Forestry Forum in Papua New Guinea.

It appears now that PNG is not ready, given that we are only a year away from the end of the Kyoto Protocol, said Mondiai.

“We do not believe that logging and REDD can co-exist. This is simply because Reduced Emissions from Deforestation and Degradation is about ‘tree standing’. Any form of logging for forest conversions for large scale agricultural development is about ‘cutting down trees,” said Mondiai.

The group is calling for a moratorium on existing logging concessions and to stop the issuing of new timber permits and other licenses.

The Coalition for Rainforest Nations is an inter-governmental organisation established by forested tropical countries to collaboratively reconcile forest stewardship with economic development. It was formed after a speech in May 2005 by Papua New Guinea Prime Minister, Sir Michael Somare. Five Pacific Island Countries are members of the coalition – Fiji, Papua New Guinea, Samoa, Solomon Islands and Vanuatu.

The Rainforest Coalition, headquartered at the Columbia University in New York, aims to bring together both developing and industrialised nations for the purpose of creating community-driven, environmentally sustainable economic growth.

By  Makereta Komai