Supply chain no deforestation commitments: plugging the - PowerPoint PPT Presentation

Supply chain ‘no deforestation’ commitments: plugging the implementation gap Dr Mike Senior 23 rd November 2017 www.proforest.net

Supporting people to transform natural resource production for greater sustainability

Proforest’s work on ‘No deforestation ’ • Consultancy for companies: Identifying forest to • Responsible Sourcing protect in new • Responsible Production: High agricultural/forestry Conservation Value (HCV) and High Carbon Stock Approach (HCSA) developments assessments • Policy level: Developing policies • Member of multistakeholder initiatives, & methodologies for e.g. HCSA, HCVRN, Accountability ‘no deforestation ’ Framework

Overview • ‘No deforestation ’ commitments • Progress to date • Implementation challenges • Potential solutions • Examples: • Oil palm in SE Asia • Beef in Brazil • Role of the research community

Why forests & deforestation? • Climate change • Habitat & biodiversity loss • Loss of livelihoods, cultural sites, displacement • Deforestation drivers? • Agricultural and timber production a big part! • Driven by growing consumption & populations Kissinger et al 2012

Origins of “No Deforestation” • Consumer and NGO concerns about tropical deforestation in commodity supply chains • Primary concern/funding linked to climate change • Producer governments not doing enough • Leverage private sector exposure and resources • Major campaigns against private sector! • Push for ‘ no deforestation ’ in commodity supply chains

Committing to ‘No deforestation’ • Commitments at many levels: governments, private sector  but driven by consumer governments and ‘downstream’ companies • High level declarations: • New York Declaration on Forests (2014) • Consumer Goods Forum Resolution (2010) • Private sector responsible sourcing commitments: • Consumer Goods Companies (e.g. Unilever, Mars, Mondelez) • Producers/traders (e.g. Wilmar, APRIL etc) “NDPE” = No deforestation, peat or exploitation

Private sector commitments • Many commodity traders, retailers and consumer goods companies have committed to ‘No deforestation’ • Especially palm, timber, pulp & paper Forest Trends 2016 • Mainly a response to NGO campaigns…

Awareness & campaigns Vs drivers.. Henders et al, 2015

Implementing Responsible Sourcing Commitments Responsible sourcing to responsible production DEFINE

Successes so far • Huge increase in awareness globally • Huge number of “No deforestation” commitments: • Global, e.g. CGF, NYDF, SDGs • Private sector commitments, e.g. NDPE covers “80% of palm oil” • New approaches & tools to: • Define & identify forest, e.g. HCSA • Monitor forests, e.g. GFW • Results: • Avoiding deforestation in concessions of companies with NDPE commitments…but how to secure forest protection? 2020!

New approaches to identify forest • Identifying forests to protect: • Integrated HCV-HCSA assessments • How does it work? • Assessment before any development • Biol & social surveys & mapping, consultation • Map ‘HCS and HCV’ areas to protect • Who is using this? • Large producers in palm (& timber) plantation sectors • ‘ Fragmented landscapes ’ in SE Asia

Outputs of an HCV-HCSA assessment Legal reserve HCV Legal buffer HCS zones Community use Community use High Carbon Stock areas areas High Conservation Value areas

How to close the implementation gap? • But deforestation continuing.. • Two key barriers: Identify & Protect & Monitor 1. Understand typology of deforestation (i.e. socio-political- 2. tenure context)

Ensuring long-term forest protection Identifying forest doesn’t mean it will stay standing…

How do you actually protect forests? • Forest definition, identification and monitoring are mainly technical • e.g. using RS/GIS technologies • Scalable and can be applied from a distance. • Protection is very different: • Highly context specific and • Applied on the ground, w/ engagement of local actors, • Must address variable, local socio- economic drivers of deforestation • Takes time!

What leverage do retailers and consumer goods companies have over producers in their supply chains?

The most effective approach to protection will vary depending on the context: it must be based on a good understanding of deforestation typologies

Approaches for existing Vs ‘not - yet producers’ • Assumption has been that if you target companies then you will stop future clearance.. • Target ‘not -yet- producers’ and find effective ways to encourage forest protection and discourage forest clearing

Not just big, bad companies… Practical and ethical challenge for small producers and communities without other What do I resources: get out of How to ensure that those that opt to protect protecting the forest don’t lose out in the long term forest? compared to those that clear and can thus generate an income from production? Without a reasonable answer to the main question landowners ask it is very difficult to make progress

Unintended consequences • Excision of forest from lease areas • Leakage: Soy from Amazon  Cerrado • Split markets: How to retain influence in high risk landscapes & over non-export commodities? • Deforestation continues to pay for local actors Forestry and agricultural concessions in the Congo Basin

Identifying the right interventions

Strategies for different contexts

Example: cattle & soy in Brazil • Deforestation down 80% 2004-12 • What has worked? • No silver bullet! Combination of solutions • Legal requirements (Forest Code) • Holistic socio-economic aspects: • Credit withheld at jurisdictional & property level • Investment in downstream processing • Compensation, e.g. Bolsa Floresta • Strong enforcement (previously …) & technology • Multilateral private sector moratorium • Risks : political change, leakage

Sector-wide challenges and supply chain mapping limitations

Cattle production and deforestation trends in Brazil • Gibbs et al. 2015

Drivers of Deforestation - Amazon EII

Mars: Rural Environmental Registry System Active, Pending, Cancelled Source of images: SFB, 2016 and SFB, 2017

Example: palm in Indonesia • Deforestation remains high • Barriers: • Lack of effective legal mechanisms • Decentralisation & conflicting political agendas • No incentives to stop smallholder deforestation • Competition for palm fresh fruit bunches • What is being tried now? • Fire-Free Village Programs, e.g. APRIL • Jurisdictional approaches, e.g. South Sumatra • Landscape-level company collaboration, e.g. Leuser, West Kalimantan

Example: RSPO HCV app for smallholders • Identifies ‘go’ and ‘no - go’ areas for palm smallholders • Simplifies RSPO certification through: • Mapping property boundaries • Automated HCV maps • Automated management reqs • What next? • Launch the app…! • Options for compensating SHs?

Role of the research community • Engage with key initiatives: e.g. RSPO, HCSA, etc • Understand social dimensions of deforestation • Assess & predict macro-level outcomes of policies/ commitments: • How can we save the most forest? • Risk of split markets? • Assess effectiveness of local-level interventions in different ‘real - world’ conditions… less meta- analyses (sorry)!

Some relevant reports • Proforest : Delivering company commitments to zero deforestation commodity supply chains https://www.proforest.net/en/publications/delivering-company- commitments-to-zero-deforestation-commodity-supply-chains • Climate Focus : The Commodities and Forests Agenda 2020: Ten Priorities to Remove Tropical Deforestation from Commodity Supply Chains http://www.climatefocus.com/publications/commodities-and- forests-agenda-2020-ten-priorities-remove-tropical- deforestation

Thanks for listening. Any questions? mike@proforest.net www.proforest.net