Content uploaded by Florence Bernard
Author content
All content in this area was uploaded by Florence Bernard on May 21, 2014
Content may be subject to copyright.
Content uploaded by Florence Bernard
Author content
All content in this area was uploaded by Florence Bernard on May 20, 2014
Content may be subject to copyright.
This article was downloaded by: [INASP - Pakistan (PERI)]
On: 12 May 2014, At: 06:18
Publisher: Taylor & Francis
Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office:
Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK
Climate Policy
Publication details, including instructions for authors and subscription
information:
http://www.tandfonline.com/loi/tcpo20
REDD+ projects and national-level Readiness
processes: a case study from Kenya
Florence Bernarda, Peter A. Minanga, Bryan Adkinsb & Jeremy T. Freundc
a ASB Partnership for the Tropical Forest Margins, World Agroforestry
Centre, United Nations Avenue, Gigiri, Nairobi, Kenya
b Wildlife Works Carbon, PO Box 310, Voi, Kenya 80300
c Wildlife Works Carbon, 242 Redwood Highway, Mill Valley, CA 94941, USA
Published online: 08 May 2014.
To cite this article: Florence Bernard, Peter A. Minang, Bryan Adkins & Jeremy T. Freund (2014):
REDD+ projects and national-level Readiness processes: a case study from Kenya, Climate Policy, DOI:
10.1080/14693062.2014.905440
To link to this article: http://dx.doi.org/10.1080/14693062.2014.905440
PLEASE SCROLL DOWN FOR ARTICLE
Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”)
contained in the publications on our platform. However, Taylor & Francis, our agents, and our
licensors make no representations or warranties whatsoever as to the accuracy, completeness, or
suitability for any purpose of the Content. Any opinions and views expressed in this publication
are the opinions and views of the authors, and are not the views of or endorsed by Taylor &
Francis. The accuracy of the Content should not be relied upon and should be independently
verified with primary sources of information. Taylor and Francis shall not be liable for any
losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities
whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or
arising out of the use of the Content.
This article may be used for research, teaching, and private study purposes. Any substantial
or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or
distribution in any form to anyone is expressly forbidden. Terms & Conditions of access and use
can be found at http://www.tandfonline.com/page/terms-and-conditions
Bresearch article
REDD+projects and national-level Readiness
processes: a case study from Kenya
FLORENCE BERNARD
1
*, PETER A. MINANG
1
, BRYAN ADKINS
2
, JEREMY T. FREUND
3
1
ASB Partnership for the Tropical Forest Margins, World Agroforestry Centre, United Nations Avenue, Gigiri, Nairobi, Kenya
2
Wildlife Works Carbon, PO Box 310, Voi, Kenya 80300
3
Wildlife Works Carbon, 242 Redwood Highway, Mill Valley, CA 94941, USA
The Bali Action Plan and Cancun agreements on Reducing Emissions from Deforestation and forest Degradation, plus forest
conservation, sustainable management of forests and enhancement of forest carbon stocks (REDD+) have encouraged
demonstration activities as part of Readiness and a step towards national approaches. This has enabled important growth in pilot
and demonstration projects. Yet an understanding about how these projects are connected and contribute to national-level
technical, policy, and institutional preparedness (Readiness) for REDD+is lacking. This article examines the linkages between
national processes and the private-sector-driven Kasigau Corridor REDD+project in Kenya. The study reveals interesting cross-
scale interactions that have increased over time and have high potential for harnessing national-level processes through lessons
from the project level. Key innovations from the Kasigau Corridor Project include the implementation of REDD+in dry forests,
operationalization of conservation easements in the context of REDD+, and demonstration of potential ways of obtaining upfront
finance for REDD+. The study also provides a number of key recommendations for Kenya and REDD+in general, including
official endorsement of stand-alone REDD+projects under national Readiness schemes and exploring jurisdictional and nested
REDD+approaches. Additionally, more accommodating national-level frameworks for attracting private-sector engagement
and investments, and for integrating, scaling-out, or scaling-up lessons from such projects, would be needed to enhance national
REDD+Readiness.
Keywords: jurisdiction; Kasigau Corridor project; Kenya; national programmes; private sector; REDD+Readiness
1. Introduction
Reducing Emissions from Deforestation and forest Degradation, plus forest conservation, sustainable
management of forests and enhancement of forest carbon stocks (REDD+) is emerging as a critical
international policy and finance mechanism to halt land-use-related GHG emissions in developing
countries and to mitigate global climate change (Angelsen et al., 2009). Essentially, REDD+is expected
to enable forested developing countries to engage in the reduction of emissions from forests against an
agreed baseline and receive payments, compensations, or rewards (market- and/or fund-based) upon
verification (Minang & van Noordwijk, 2013). Demonstration activities for REDD+have been encour-
aged as part of a phased approach to REDD+implementation in both the Bali Action Plan (UNFCCC,
2007, Decision 2/CP.13) and within the Cancun agreements – i.e. ‘results-based demonstration’
(UNFCCC, 2010, Decision 1/CP.16). This has enabled important expansion of REDD+demonstration
B*Corresponding author. E-mail: f.bernard@cgiar.org
http://dx.doi.org/10.1080/14693062.2014.905440
#2014 Taylor & Francis
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
activities, including hundreds of planned ‘first generation REDD +projects’ (Sills, Madeira, Underlin,
& Wertz-Kanounnikoff, 2009).
REDD+demonstration activities can be led by individuals, communities, NGOs, the private sector,
or national or local governments duly authorized by the host country to implement REDD+project
activities (Angelsen, Streck, Peskett, Brown, & Luttrell, 2008). In the Readiness phase of REDD+, dem-
onstration projects can contribute to the design of national REDD+strategies in a number of ways.
First, they attempt to trial all elements of REDD+as a practical proof of concept and provide important
on-the-ground information about the application of REDD+design components, such as measuring,
reporting, and verification (MRV), implementation strategies, participation and rights of indigenous
people and local communities, financial structures to share carbon revenues, co-benefits, tenure
issues, and drivers of deforestation and forest degradation (Sills et al., 2009). Second, they serve as a
springboard for the international REDD+debate by providing innovative methodologies and scienti-
fic lessons for how to structure and implement national REDD+policies.
Going beyond that, some countries wish to incorporate such project-based approaches into their
national frameworks. They have adopted the principle of a ‘nested approach’ where projects and/or
subnational programmes are integrated into higher-level accounting, allowing ‘countries to start
REDD+efforts through sub-national activities and gradually move to a national approach or for
the coexistence of the two approaches’ (Angelsen et al., 2008). This nested approach would enable
the creation of incentives for action at multiple scales.
Thus far, the literature on demonstration and pilot projects focuses on cataloguing the number of
REDD+demonstration and pilot projects, examining their distribution across the world’s forests
(Cerbu, Swallow, & Thompson, 2011) and their main characteristics (Wertz-Kanounnikoff & Kong-
phan-Apirak, 2009). Some studies examining project-level REDD+efforts have highlighted lessons
for future policy design and implementation by analysing projects’ main strengths, weaknesses, oppor-
tunities, and threats (Dulal, Shah, & Sapkota, 2012). An understanding about how these demonstration
and pilot projects are connected to and contribute to national-level technical, policy, and institutional
preparedness (Readiness) for REDD+is, however, lacking.
This article draws on the example of a case study from Kenya – the Kasigau Corridor REDD+project
(hereafter referred to as the KC project) – and attempts to shed light on how this subnational-level
private-sector-driven REDD+project interacts with and contributes to REDD+Readiness. Two
main research questions are addressed: (1) have there been cross-scale interactions between the KC
project and the national level, and if so, how?; (2) how can lessons from the project be used to
enhance national-level REDD+Readiness processes?
The KC project was chosen from amongmany projects in Kenyaand Africabecause it is the world’s first
registered REDD+project issued with Verified Carbon Units (VCU) under the Verified Carbon Standard
(VCS) and is one of the few REDD+projects currently selling REDD+credits on the voluntary market.
2. Context and study area
2.1. REDD+in Kenya
With support from the Forest Carbon Partnership Facility (FCPF) and the United Nations Programme
on REDD (UN-REDD), the Government of Kenya (GoK) has established a national REDD+Readiness
2Bernard et al.
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
process. The Kenya Forest Service (KFS) under the Ministry of Environment, Water and Natural
Resources (ex-Ministry of Forestry and Wildlife) is designated as the government body responsible
for REDD+in the country. Towards Readiness, in 2010 Kenya approved a Readiness Preparation Pro-
posal (R-PP), which provides a road map for assessing the deforestation and forest degradation status
within the country and an overview of how the country intends to address this. As part of the R-PP
implementation phase, Kenya is currently preparing and designing a suite of REDD+programme
elements such as directives on how to calculate Reference Emission Levels (RELs). These will precede
the formulation of a national REDD+strategy (KFS, 2010). Further critical steps for Kenya include clar-
ifying and regulating land tenure and key governance issues, particularly anti-corruption, carbon
rights, and benefit-sharing arrangements (FCPF, 2012a), and leading legal preparedness for REDD+.
Establishment of a national REL/forest Reference Level (RL), national forest monitoring, and carbon
accounting systems are also required.
2.2. The KC REDD+Project
Table 1 provides an overview of the KC project implemented by the private company Wildlife Works
Carbon (WWC).
3. Methods
3.1. Data collection and analysis
Information about REDD+Readiness in Kenya was gained by reviewing FCPF documents (Readi-
ness-Preparation Idea Note (R-PIN), R-PP), the latest country progress fact sheet, and the REDD+
Desk country and project database (http://www.theredddesk.org/countries). A review of the KC
project was based on available website information and internal project documents, including
Project Design Documents (PDDs) for the two phases of the project. Semi-structured interviews
with key informants involved in the national REDD+process in Kenya and in the KC project pro-
vided insights about the interactions involved in the various processes and the KC project’s poten-
tial contribution to overall REDD+Readiness at the national level. Interviews were transcribed,
with relevant statements and quotes extracted. Further insights were gained during a field visit
to the project site.
3.2. Analytical framework
This article looks at both the project level and REDD+Readiness at the national level, as shown
in Figure 1. First, interactions between the KC project and the national-level processes in Kenya in
terms of key participation in REDD+dialogues as well as interactions with other relevant stake-
holders are examined. Second, the REDD+Readiness framework suggested by Minang et al.
(2014) (with the functions Planning and Coordination; Policies, Laws and Institutions; Measur-
ingg, Reporting, Verification (MRV) and Audit; Benefit Sharing; Financing) is used to guide
analysis on what and how Readiness functions at the national level can be informed by the
KC project.
REDD+projects and national-level Readiness processes 3
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
Table 1 Overview of the Kasigau Corridor REDD+project
Project name, proponents
and investments
Location, social issues, and
ownership
Land type, extension and
design elements Baseline and project interventions
Name:
Kasigau Corridor REDD+
Project
Location:
Coast province, southeastern
Kenya; high-conservation-value
area securing wildlife migration
corridor between Tsavo East and
Tsavo West national parks
Land type:
Dryland ecosystem
Baseline or ‘without-project’
scenario:
Rapid deforestation of roughly
7000 ha per annum due to
unplanned slash-and-burn
agriculture expansion, illegal
commercial poaching, charcoal
and fuelwood, overgrazing
Proponents:
Wildlife Works Carbon
(WWC); American
company with Kenyan
subsidiary operating on the
ground
Social context:
Project’s land privately owned by
14 directed agricultural
companies (DACs) and
uninhabited; Taita and Duruma
communities live around the
project’s area in six locations
Extension:
Kasigau Phase I – 30,166 ha
Kasigau Phase II – 169,741 ha
Project community-based
initiatives:
†Agricultural intensification
activities and organic tree
nursery
†Reforestation at Mt Kasigau
†Eco-clothing factory
†Ecotourism
†Soap factory
†Community development fund
and bursary scheme
†Eco-charcoal production
†Jojoba production
†Establishment of ranger groups
and wildlife scouts
Launch date:
Phase I – 2008
Phase II – 2010
Design elements:
Validation and verification under
the VCS and Climate,
Community and Biodiversity
(CCB) standards; gold level
status by the CCB for
exceptional biodiversity and
climate benefits
Projected emissions impact:
Avoidance of over 1 million tons of
CO
2
e emissions per year for the
next 30 years
Investment and benefit sharing:
†Initial investment of between $10 and $12 per ha funded 100% from external private investors.
†Generation of $20– 50 per ha per year in REDD+gross revenues.
†The KC project proposes a model where the project’s profits from the sale of carbon credits are split evenly between the project
implementer (WWC), the landowners in the project area, and the local communities adjacent to the project area.
Source: WWC (2008,2011).
4Bernard et al.
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
4. Results
4.1. Project interactions with national-level processes
The official start of the KC project coincided with Kenya’s submission of its R-PIN in 2008. Hosted by
the GoK, the KC project initially required the GoK’s approval, leading to an open line of communi-
cation on its developments between WWC, KFS, and the Ministry of Environment, Water and
Natural Resources through the REDD+national coordinator. WWC was not part of the R-PP discus-
sions between 2008 and 2010, but between 2010 and 2012 there were numerous cross-institutional
interactions and exchange visits from the national level with delegations of KFS, Ministry of Environ-
ment, Water and Natural Resource, Kenya Wildlife Service (KWS), Kenya Agricultural Research Insti-
tute (KARI), and the Kenya Forests Working Group visiting the project. In addition, there were visits
from several international and national NGOs, the private sector, donors, and research institutions.
Substantive participation by WWC in national-level dialogues only occurred after a field visit from
national officials to the KC project in 2012. WWC is currently involved in a Food and Agriculture
Organization (FAO) funded review of national legislation and gap analysis and in drafting new legis-
lation for the REDD+national programme. WWC is also involved in the United Nations Development
Programme (UNDP) forum on governance and benefit sharing. Furthermore, WWC is a key technical
partner on several technical working groups in the national stakeholder consultative fora led by the
National REDD Coordination Office and has participated internationally as part of the Kenya del-
egation to the UN Forum on Forests. As the proponent of a flagship project, WWC was also asked to
be part of a UNFCCC delegation from Kenya going to Vietnam to give a positive account of steps to
engage the private sector in REDD+project development. Eventually, Kenya’s National Climate
Figure 1 Analytical framework
REDD+projects and national-level Readiness processes 5
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
Change Action Plan (NCCAP), which proposes a comprehensive national climate change policy and
law to address all aspects of climate change, including REDD+activities, cites the Kasigau project as
one of the ongoing private initiatives to address climate change mitigation with co-benefits in adap-
tation (Government of Kenya, 2013).
4.2. Scaling-up the project’s key achievements for REDD+Readiness in Kenya
The KC project model has led the way in a number of important, innovative, and proof-of-concept
domains. Multiple, potentially scalable lessons have been drawn from the KC that may have appli-
cation for REDD+at both the national and global levels. Table 2 summarizes the key areas where
potential for the KC to contribute to REDD+Readiness processes exists.
4.2.1. Demonstration of REDD+potential in dryland forests
Under the FAO definition, the Kasigau Corridor qualifies as a forest, with an average canopy of 39% and
a mature tree height of 5 – 10 m (FAO, 2010). The average levels of carbon stock per ha in Kasigau I and
Kasigau II (Table 1) are 89.3 tCO
2
e per ha and 77.2 tCO
2
e per ha, respectively (compare this with the
average carbon stock in the humid forest zone of Cameroon, which is 1100 tCO
2
e per ha; Kotto-
Same, Woomer, Moukam, & Zapfack, 1997). The mean net CO
2
e emissions avoided in the
200,000 ha project area (Kasigau I +Kasigau II) are 1,514,718 tCO
2
e per year. Even though REDD+
focuses mainly on countries with high forest cover and/or high deforestation rates (e.g. Indonesia
and Brazil), the KC project, located in a semi-arid tropical region, has demonstrated that REDD+
can be implemented successfully in dryland forests. The REDD +national coordinator indicated
that the KC project has strong potential for acting as one of the demonstration projects for dryland
systems under the national Readiness scheme. Such proof of success of the implementation of
REDD+in dryland forests is likely to be a strong incentive for other project developers to initiate pro-
jects in other dryland forest ecosystems.
4.2.2. Operationalization of conservation easements on private lands
The KC project area encompasses 14 ranches with no residents, given the little permanent water and
the wilderness of the area. Those ranches are each governed on a private, long-term, leasehold basis
between the GoK and a Directed Agricultural Company (DAC), whose shareholders are predominantly
(although not all) community members from locations adjacent to the project area. One ranch
(Kasigau ranch) is not governed by a DAC and has an open membership (freehold land) of roughly
2500 community members who collectively hold the title on a similar long-term private lease. In
Kenya, private forests are not generally subject to state regulation, giving landowners the power to
determine the use of their lands. A conservation easement is power vested on private land to constrain
the exercise of rights otherwise held by the landowner so as to set aside land for non-consumptive util-
ization. In Kenya, such instruments are included in the Environmental Management and Co-ordina-
tion Act of 1999, Section 112. The conservation easement legislative tool was adapted and applied
in the project area to enter agreements with the DACs. The proposed easement was presented to the
Board of DACs Directors Annual General Meeting and included a direct, contractual agreement that
WWC would manage the land for REDD+purposes and that the DACs would receive one-third of
6Bernard et al.
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
the carbon revenue from future sales in return for granting the conservation easement. As is the prac-
tice, shareholders in the DAC may then receive a dividend. The minutes of the meeting were dissemi-
nated to all shareholders who voted on whether or not to include their land unit in the project, as
required under Kenyan law. The same agreement was made with the Kasigau group ranch.
These agreements span at least 30 years, as required by the Climate, Community and Biodiversity
Standard and the Verified Carbon Standard to secure and demonstrate permanence of a REDD+
project. This also avoids the need to purchase the land and the resulting potential land-grabbing con-
flicts. Hence, the KC project has demonstrated the potential of ‘conservation easements’ to ensure
long-term protection of forest assets on private land for REDD +in Kenya through early application
and testing.
Table 2 Project’s key achievements and implications for REDD+Readiness in Kenya
REDD+
Readiness
functions Critical elements of the project Implications for REDD+Readiness in Kenya
Planning and
coordination
Demonstration of REDD+potential in dryland forests Inclusion of the KC project as a pilot project for
dryland forests under national Readiness scheme
Expansion of REDD+projects in dryland forests
Policies, laws, and
institutions
Adaptation and application of conservation
easements in private lands
Implementation of long-term protection of forest
assets in private lands for REDD+
Innovative schemes for addressing deforestation and
forest degradation based on job creation and
alternative livelihood options
Strategy options for addressing drivers of
deforestation and forest degradation, strengthening
community engagement, and designing appropriate
national policies that prioritize ‘pro-poor’ REDD+
activities and integrate REDD+into national
development strategies
MRV and audit Innovative methodologies for monitoring carbon
stock change, developing RELs and remote sensing
strategies in dry woodlands
Development of jurisdictional/subnational RELs for
use in a proposed national programme structure,
based on lessons learned in the KC project
Benefit-sharing
mechanism
Set-up of a transparent benefit distribution
disbursement process
Capitalization on the consultative approach to benefit-
sharing methods for distribution of carbon-derived
revenues
Financing Leverage of private sector investment through a
combination of business and conservation skills
Lessons for overcoming insufficient funding by
unlocking and scaling up private-sector investment
and incentives to attract further private-sector
involvement in Kenya for demonstration and pilot
projects
REDD+projects and national-level Readiness processes 7
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
4.2.3. Innovative schemes for addressing deforestation and forest degradation
Unplanned slash-and-burn agriculture expansion, illegal commercial poaching, charcoal and fuel-
wood activities, and overgrazing represent some major threats to the project area. In order to
address these drivers of deforestation and forest degradation , WWC developed a series of innovative
community-oriented initiatives, all based upon job creation: jobs helping farmers (sustainable eco-
charcoal production, and dryland crop production such as jojoba), jobs making eco-friendly services
and products (ecotourism, soap bio-factory, and eco-clothing factory), jobs protecting wildlife (cre-
ation of community rangers and wildlife scouts), jobs supporting education (children’s education
and conservation education), and jobs growing trees (about 600 ha being reforested at Mt Kasigau).
Direct employment and benefits therein in 2012 amounted to approximately US$1,000,000. Providing
economic alternatives and employment opportunities as part of a conservation strategy enabled
additional benefits to flow into communities to address poverty, which has been identified as an under-
lying cause of deforestation and forest degradation. Additional community benefits were derived
indirectly through access to improved services, including bursary programmes, school infrastructure,
water catchments, and water distribution infrastructure, paid for by the community portion of the
carbon revenue. In 2012 this amounted to approximately $586,000, which was spread across five
locations with roughly 10,000 – 12,000 people in each. At the national level, REDD +can also
include growth effects such as economic diversification and infrastructure improvements. According
to the REDD+national coordinator, there is great interest in learning from the successes of the KC
project-level community-based activities to help design appropriate national policies that prioritize
‘pro-poor’ REDD+activities and integrate REDD+into national development strategies.
4.2.4. Knowledge generation regarding MRV and REL establishment
WWC has invested in developing innovative methodologies to monitor carbon stock change, and
develop RELs and remote sensing strategies in dry woodlands. WWC first started out at the KC-
project level by developing a pioneering methodology for Avoided Unplanned Mosaic Deforestation
of Tropical Forests (VM0009). However, in response to explicit interest from the Kenyan government,
WWC is currently working to develop a model based on experience and lessons learned from the KC
project that is appropriate for larger national/subnational scales for application in a proposed national
programme structure. This model essentially calls for stratification of the jurisdiction by land-use, with
each of these strata evaluated based on their own unique characteristics. Each land-use stratum is
further broken down by land cover, to support the use of emission factors. The actual REL model
applied to each land-use category would differ according to the characteristics of the strata. All of
these individually tailored RELs (one model for each land-use stratum) would then be aggregated to
form the traditional singular REL at the jurisdictional/subnational level. This model relies only on
specific pieces of the project-level model described in VM0009 and is outlined in detail in a White
Paper (Freund, Korchinsky, & Bird, 2013). The entire process has been accepted by the Group on
Earth Observations, the University of Maryland’s Matt Hansen laboratory, the FCPF, and the Govern-
ment of Norway. It has also been presented to national-level decision makers in multiple fora, includ-
ing the System for Land-based Emissions for Kenya (SLEEK) process and the National REDD +Strategy
development.
8Bernard et al.
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
4.2.5. Set-up of a transparent benefit distribution disbursement process
After WWC’s operating costs and the contractual obligations to the DACs are covered, the balance
(which, in practice, is approximately one-third of the overall revenue) is deposited into a Trust
Fund – the Wildlife Works Carbon Trust (WWCT) – which is used as a vehicle for dispersing the
share of the revenue generated by the Verified Carbon Units sales, allocated to the communities adja-
cent to the REDD+project, to support environmental and social community projects as opposed to
direct individual cash transfers. The Locational Carbon Committee (LCC), a group of independent,
elected community members from varied backgrounds, receives proposals from community groups
and approves relevant proposals following a standard operation procedure developed through a con-
sultative process. The LCC does not handle funds, but rather sets an independent development agenda
and refers projects to the WWCT for funding. Funds flow directly to community-based organizations
(CBOs), which oversee implementation of the projects approved by the WWCT. There are six locations
in which the LCCs and CBOs work to ensure fair distribution of funds and specialized application of
funds based on local needs. The consultative approach to benefit-sharing has proven to be a successful
method on which the national level could capitalize. Figure 2 illustrates this process.
4.2.6. Leverage of private-sector investment
A key successful feature of the KC project was the ability of WWC to make a business case for the project
and to secure external private-sector investment at the beginning of the project process. WWC benefits
from a full-time marketing team of six people, based in the US and Europe, who market the project’s
Figure 2 The KC disbursement process for community dividends from carbon revenue
REDD+projects and national-level Readiness processes 9
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
credits. For the KC project, the key strategy was to obtain funding through an agreement with a South
African bank, Nedbank, who provided the start-up capital in return for an ‘option’, buying the resulting
credits at a concessionary rate. Such upfront investments provided the full financial support needed for
project implementation, operational costs, and project interventions. In the medium to long term, the
KC project has catalysed the market for REDD+by connecting institutional champions with project
activities through a platform called Code REDD (www.coderedd.com), which is a platform for credit
buyers from private institutions that promotes REDD+projects that create exceptional benefits.
WWC’s experience, both with the KC project and its partner, Code REDD, demonstrates the potential
of private-sector investment in REDD+activities to promote scalable changes. While this private-
sector finance model might be of further interest at the project level, it might be important to under-
stand this at the national level and promote it at the Readiness phase as a means of funding further
private-sector investments in REDD+pilots and demonstrations, given the current shortage in
funding flows for Readiness and REDD+in general. The REDD+national coordinator expressed will-
ingness at the national level to attempt to engage more private-sector actors to take the lead in some of
the future selected projects, based on the example of WWC. Additionally, such private-sector invest-
ment could potentially be leveraged at the national level through nesting project-level credits into sub-
national and national programmes. This follows recent announcements by Sovereign funds of a desire
to purchase offsets through bilateral agreements with national-level programmes. Although the credits
would be created with private investment, they could access markets created by bilateral purchase
agreements such as those with countries like Norway.
5. Discussion
Analysis of the KC project interactions with national-level Readiness processes provides a number of
recommendations for Kenya, and REDD+in general. These include the enhancement of dialogue
between REDD+projects at the national level; the need for endorsing stand-alone REDD+projects
under national Readiness schemes; exploring jurisdictional and nested REDD +approaches; and the
enhancement of private-sector participation and investments in REDD+. These are briefly discussed
in the following paragraphs.
5.1. From independence to interdependence
The KC project and REDD+national-level activities have run rather independently of one another,
with minimum interactions, as evidenced by the absence of WWC during stakeholder consultations
for the R-PP until mid-2012, when a field visit from national officials to the KC project triggered an
increase in interactions. Discussions are ongoing about the need for two-way, cross-scale interactions,
with lessons learned from the project level being communicated to the national level and captured in
the future REDD+strategy. More interactions are also needed with larger national policies such as
NCCAP. REDD+is an evolving process, and the recognition of the need for project and national
levels to work together developed at a later stage after significant developments were achieved by
the KC project. However, it is important for dialogue with and between partners to commence at
the earliest opportunity in order not to miss out on potential benefits from interactions with subna-
tional-level actors. Frameworks and modalities for stakeholder participation should be developed,
10 Bernard et al.
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
including meaningful engagement of the private sector as early as possible, with appropriate platforms
for exchanges linking the different levels.
5.2. Endorsement of stand-alone REDD+projects under national Readiness scheme
The evolution of the relationship between the KC project and national-level processes raises a more
general question about how stand-alone projects developed out of their own volition relate to national
systems, compared to pilot and demonstration projects selected under national Readiness schemes. For
countries such as Kenya, which have not yet selected their pilot and demonstration projects as part of
the Readiness process, a challenge lies in developing modalities for retrofitting or accommodating the
current stand-alone projects into the national system. The Democratic Republic of Congo’s (DRC)
experience can be useful in this respect. The DRC has set up a national registry for all REDD +projects
serving as a database of ongoing REDD +activities in the country (FCPF, 2012b). Replicating such a reg-
istry in Kenya would ensure that the most experienced and effective practitioners, including the
private sector, are part of the national process, sending a clear signal to the private sector of early
action recognition through official endorsement. This would also clarify domestic approval require-
ments such as defining the entities entitled to participate in subnational REDD+activities and their
rights and responsibilities.
5.3. Towards a jurisdictional and nested approach
Although Kenya has endorsed the idea of stand-alone projects and a registry of projects may be a first
step, a bigger question is how the KC project could potentially be integrated into a national accounting
and crediting framework. The idea of a jurisdictional and nested REDD+approach has been con-
sidered as a possible way forward for REDD+in Kenya. However, such a nesting framework still
faces a number of important design challenges (Minang & van Noordwijk, 2013), including the devel-
opment of a consistent and credible framework of RELs across all scales; standardized MRV protocols to
ensure consistency across space and time; the need for transparent book-keeping to prevent double or
multiple counting of emission reductions; addressing issues around project underperformance and
permanence; and within-country leakage, especially during the interim phase in which countries
are still developing their national RELs and MRV. Further clarification is also required to define
carbon rights, benefit distribution schemes (e.g. whether subnational REDD+actions would be
allowed to be credited directly or whether international incentives would be captured at the level of
the national government), and revenue-sharing agreements (e.g. the existence of a tax applied by
the government on REDD+project activities). All of these are still at very early stages of development
in Kenya. However, based on the current work of WWC in developing RELs at the subnational/national
level and guidelines such as the jurisdictional and nested REDD+requirements developed by VCS,
which present three explicit scenarios for crediting under a jurisdictional and nested scenario, there
might be opportunities to overcome some of the existing design challenges.
5.4. Stimulating private-sector involvement
Private-sector involvement will be absolutely critical to scaling up investment in REDD+, as there is
growing evidence that public finance alone is unlikely to meet emission reduction investment
REDD+projects and national-level Readiness processes 11
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
requirements (Simula Ardo, 2010). Accordingly, there should be some specific policies and incentives
for private-sector involvement with the aim to create an attractive ‘investment climate’ for REDD+
initiatives. This requires having an open and constructive dialogue to identify, define, and implement
policies and actions that will encourage private-sector involvement. These rules could include, among
others, (1) transparent rules on the allocation of carbon rights; (2) effective risk-sharing and risk-miti-
gation mechanisms that create a more supportive investment environment for the private sector; (3)
appropriate dispute settlement arrangements; and (4) clear and fair benefit-sharing mechanisms
(Bernard, McFatridge, & Minang, 2012).
6. Conclusion
The aim of this study was to examine how subnational-level projects are linked to and contribute to
national-level Readiness planning through a case study of the Kasigau Corridor (KC) project in
Kenya. The KC project has developed many key innovations that are relevant to national activities
and schemes, including demonstrating the REDD+potential in dryland forests, adaptation and appli-
cation of conservation easements in the context of REDD+, the development of a methodology for
developing jurisdictional/subnational RELs, bundling REDD +implementation with community-
level employment opportunities, and demonstrating potential ways of negotiating and obtaining
upfront finance for REDD+. As a result of these many successes, the national REDD+Readiness
process in Kenya is beginning to learn and draw from those innovations. However, more accommodat-
ing national-level frameworks for engaging private-sector initiatives and investments and for integrat-
ing, scaling out, or scaling up lessons from such projects will be needed in order to fully benefit from the
potential of early projects, which can then contribute to national-level REDD +Readiness.
References
Angelsen, A., Brockhaus, M., Kanninen, M., Sills, E., Sunderlin, W. D., & Wertz-Kanounnikoff, S. (Eds.). (2009). Rea-
lising REDD+: National strategy and policy options. Bogor: CIFOR.
Angelsen, A., Streck, C., Peskett, L., Brown, J., & Luttrell, C. (2008). What is the right scale for REDD. In A. Angelsen
(Ed.), Moving ahead with REDD (pp. 31–40). Bogor: CIFOR.
Bernard, F., McFatridge, S., & Minang, P. A. (2012). The private sector in the REDD+supply chain: Trends, challenges and
opportunities. Nairobi: International Institute for Sustainable Development.
Cerbu, G. A., Swallow, B. M., & Thompson, Y. (2011). Locating REDD: A global survey and analysis of REDD readi-
ness and demonstration activities. Environmental Science and Policy,14, 168 – 180. doi:10.1016/j.envsci.2010.09.
007#sthash.v9eZIj1N.dpuf
Dulal, H. B., Shah, K. U., & Sapkota, C. (2012). Reducing emissions from deforestation and forest degradation
(REDD) projects: Lessons for future policy design and implementation. International Journal of Sustainable Devel-
opment & World Ecology,19, 116–129. doi:10.1080/13504509.2012.654410
FAO. (2010). Global forest resources assessment 2010.Main report (FAO Forestry Paper 163). Rome: FAO.
FCPF. (2012a). REDD readiness fact sheet – Kenya. June 2012. Retrieved from http://www.forestcarbonpartnership.
org/kenya-0
FCPF. (2012b). REDD readiness fact sheet – Democratic Republic of Congo. June 2012. Retrieved from http://www.
forestcarbonpartnership.org/democratic-republic-congo
12 Bernard et al.
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
Freund, J. T., Korchinsky, M., & Bird, S. (2013). Approach to establishing jurisdictional-scale reference emission level (REL)
for the future Mai Ndombe Province as an important example of a high-forest/low-deforestation (HFLD) jurisdiction
(White Paper). Wildlife Works Carbon. Washington, DC: The Forest Carbon Partnership Facility.
Government of Kenya. (2013). National Climate Change Action Plan 2013 – 2017. Vision 2030. Nairobi: Government
Press.
KFS (Kenya Forest Service). (2010). Revised REDD readiness preparation proposal.Kenya. Submitted to the Forest
Carbon Partnership Facility. October 2012. Retrieved from http://www.forestcarbonpartnership.org/fcp/sites/
forestcarbonpartnership.org/files/Documents/PDF/Oct2010/Revised%20RPP%20for%20Kenya.pdf
Kotto-Same, J., Woomer, P. L., Moukam, A., & Zapfack, L. (1997). Carbon dynamics in slash-and-bum agriculture
and land use alternatives of the humid forest zone in Cameroon. Agriculture, Ecosystems and Environment,65,
245–256.
Minang, P. A., & van Noordwijk, M. (2013). Design challenges for achieving reduced emissions from deforestation
and forest degradation through conservation: Leveraging multiple paradigms at the tropical forest margins.
Land Use Policy, 31, 61– 70. doi:http://dx.doi.org/10.1016/j.landusepol.2012.04.025
Minang, P. A., van Noordwijk, M., Duguma, L. A., Alemagi, D., Do, T. H., Agung, P., ... Leimona, B. (2014). REDD+
Readiness progress across countries: Time for reconsideration. Climate Policy.doi: 10.1080/14693062.2014.
905822
Sills, E. O., Madeira, E. M., Underlin, W. D., & Wertz-Kanounnikoff, S. (2009). The evolving landscape of REDD+
projects. In A. Angelsen (Ed.), Realising REDD+: National strategy and policy options (pp. 265– 279). Bogor: Center
for International Forestry Research.
Simula Ardo, M. (2010). Analysis of REDD+financing gaps and overlaps (REDD+Partnership Report). Retrieved from
http://reddpluspartnership.org/25159-09eb378a8444ec149e8ab32e2f5671b11.pdf
UNFCCC (United Nations Framework Convention on Climate Change). (2007). Decision 2/CP. 13 FCCC. CP/2007/
6/Add. 1. Bonn: UNFCCC. Retrieved from http://unfccc.int/resource/docs/2007/cop13/eng/06a01.pdf
UNFCCC (United Nations Framework Convention on Climate Change). (2010). Addendum - Part Two: Action taken
by the Conference of the Parties at its sixteenth session.’ Report of the Conference of the Parties on its sixteenth session, held
in Cancu
´n from 29 November to 10 December 2010. Bonn: UNFCCC Retrieved from http://unfccc.int/resource/
docs/2010/cop16/eng/07a01.pdf#page¼2
Wertz-Kanounnikoff, S., & Kongphan-Apirak, M. (2009). Emerging REDD+: A preliminary survey of demonstration and
readiness activities (Working Paper No. 46). Bogor: CIFOR.
WWC (Wildlife Works Carbon LLC). (2008). The Kasigau Corridor REDD Project PhaseI – Rukinga Sanctuary. Project
Design Document for Validation Using the Climate, Community and Biodiversity Project Design Standards (2nd
edition, December 2008. Retrieved from http://www.wildlifeworks.com/redd/Rukinga_CCB_PDD_Ver_2_0.pdf
WWC (Wildlife Works Carbon LLC). (2011). The Kasigau Corridor REDD Project Phase II – The Community Ranches.
Project Document (PD) for Validation Using the Voluntary Carbon Standard (VCS) 2007.1/Sectoral Scope 14 VM0009
Methodology for Avoided Mosaic Deforestation of Tropical Forests. Version 14. April 19th, 2011. Retrieved from
http://www.wildlifeworks.com/redd/The_Kasigau_Corridor_REDD_Project_Phase_II_VCS_PD_v14.pdf
REDD+projects and national-level Readiness processes 13
CLIMATE POLICY
Downloaded by [INASP - Pakistan (PERI)] at 06:18 12 May 2014
