How to share the potential benefits of REDD+? The case of Nepal: A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Natural Resources Management and Ecological Engineering at Lincoln University

Abstract

Reducing Emissions from Deforestation and Forest Degradation (REDD) is an incentive based measure for climate change mitigation. REDD+ transcends deforestation and forest degradation and includes sustainable management of forests and enhancement of carbon stocks. Advocates suggest that its innovative approach rewards local communities’ efforts in the conservation of forest resources and preventing deforestation, while enabling them to derive benefits from international sources for contributing to mitigating climate change. The Government of Nepal is currently planning to implement REDD+ activities in community forests already involved in sustainable forest management. However, there are unsolved questions on equitable and efficient sharing of benefits. What are the existing factors that affect the flow and sharing of benefits of REDD+ in Nepal? How can these factors be controlled to promote an equitable allocation and sharing of benefits of REDD+? Similar issues regarding equity have also been observed in community forest management. To investigate these questions, the researcher conducted a case study in one of Nepal’s REDD+ pilot project implemented in community forests to explore issues and concerns related to equity and efficiency that are vital to the adoption of a benefit sharing mechanism. Qualitative information was collected by interview techniques through semi-structured questions. Interestingly, the results show that Nepal has decided to participate in REDD+ to bring additional ii benefits, but who the beneficiaries will be is a question that has not been addressed. Also, much of the research on REDD+ has focused on advancing the technical components of REDD+. By contrast, research on benefit sharing has not been initiated by the government at any level. And questions of how the benefits will be distributed remain. The research recommends potential mechanisms – including a normative basis for the allocation and distribution of benefits – that could help to advance equity. The issues of needs vs. contributions in determining what is equitable leads to the formulation of guidelines for how benefits should be shared at two levels in Nepal. First, the vertical distribution of benefits by the central government should be based on the determination of ownership of carbon benefits and on performance criteria. Second, at the community level, horizontal benefit distribution should be determined by the community itself based on its definition of needs. However, at both levels, issues of elite capture, transparency, and accountability must be addressed. In addition, with regard to the issue of trade-offs between the 3 Es (effectiveness, efficiency and equity) in benefit sharing of REDD+, equity was found to be the most important requirement for local acceptance of any REDD+ programme.