12.3.3 Climate Mitigation Related Pathways
A number of new mechanisms have emerged in the forestry sector for technology
transfer, including the concept of joint implementation and emissions trading.
With the advent of the Kyoto Protocol, the Clean Development Mechanism has also
emerged as a multilateral entity which will significantly influence forestry
sector technology transfer and finance (Bolin, 1998). New brokerage, as well
as monitoring and verification institutions are also emerging associated to
climate change institutions and mechanisms.
GEF. The Global Environmental Facility (GEF) is a financial mechanism that
promotes international cooperation and fosters actions to protect the global
environment. The grants and concessional funds disbursed, complement traditional
development assistance by covering the additional costs (also known as 'agreed
incremental costs') incurred when a national, regional, or global development
project also targets global environmental objectives. Forestry does not appear
among the operational programmes in the current phase of GEF, though it appears
under the short-term measures. However, fossil fuel substitution through bioenergy,
fuelwood conservation and bioelectricity systems for decentralised application
are included in the operational programmes. In addition, the majority of biodiversity
conservation projects also contribute to C abatement. GEF operational programme-12
on carbon sequestration is being currently formulated. Under this programme,
GEF can facilitate transfer of technology to near commercial forestry sector
projects that face incremental risk, and hence justify funding the incremental
cost of undertaking a forestry sector initiative over its relevant growth cycle.
Furthermore, this GEF programme can address the barriers and impediments to
widespread implementation of viable carbon sequestration opportunities, addressing
risks and risk financing. GEF initiatives can prepare an environment for replication
and sustainable continuation of activities. By breaking a first time barrier,
it can pave the way for the flow of private sector resources that can be coupled
with international initiatives.
AIJ/CDM/JI. At the first UN-FCCC Conference of the Parties, Berlin, 1995, the
Parties established a pilot technology transfer programme, termed the 'Activities
Implemented Jointly (AIJ)'. To date, over 70 countries have established government
institutions to develop and monitor AIJ projects. Over 50 projects have been
registered with the UN-FCCC Secretariat. The US Initiative on Joint Implementation
(US-IJI) is the largest AIJ pilot programme, with 32 projects in 12 countries.
US-IJI has attracted over US$160 million in private sector finance. Approximately
one-half of the US projects are in the forestry sector. For example, private
sector partners from the US and Bolivia are working under the AIJ pilot phase
to establish the largest private sector national park in the world. However,
there are uncertainties regarding the inclusion of land use change and forestry
activities under CDM. Market-based trading of carbon credit could enhance the
flow of resources to forestry projects worldwide. It is also not clear how this
would affect other aspects like biodiversity and local needs, and there are
many other uncertainties, like those associated with carbon-accounting and the
life-time of the carbon-stock. To clarify these aspects and uncertainties the
IPCC will issue its Special Report on Land-Use, Land-Use Change and Forestry
in 2000 (Sections 3.4 and 3.6 in
Chapter 3 provide more information on technology transfer
in the Kyoto Protocol and other UNFCCC agreements).