UNDP REDD+ Team UNDP Geneva, International Environment House, 11-13 Chemin des Anémones, CH-1219 Châtelaine, Geneva, Switzerland. @ tim.clairs@undp.org www.undp.org

United Nations Development Programme Environment & Energy Group

READINESS PREPARATION PROPOSAL (R-PP) ASSESSMENT NOTE

ON THE PROPOSED PROJECT WITH PNG

FOR REDD+ READINESS PREPARATION SUPPORT

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SUMMARY INFORMATION

A. OUTLINE Country: PNG Project Title: Readiness Preparation Package (FCPF) Project Duration (in months): 48 Expected start month: January 2015 Date of R-PP Formulation Preparatory Grant signature (if applicable): N/A Number of FCPF Participants Committee Resolution Approving the R-PP: PC/14/2013/4

B. COUNTRY PROGRAMMING YES NO Project within CPAP, UNDAF Action Plan, One UN Plan etc. X HACT macro-assessment available: X HACT micro-assessment(s) completed: X UNDAF Outcome(s): UNDAF Outcome Statement 4: “By 2015, Papua New Guinea has an enhanced capacity and resilience to cope with environmental degradation, natural and man-made hazards and the effects of climate change. The country will have regulatory frameworks in place to protect its natural resources and biodiversity for the effective benefit of current and future generations.” Project Objective: To contribute to the development of PNG’s capacity to design a sound national REDD+ strategy, develop and sustain national readiness management arrangements, elaborate REDD+ strategy options, develop the REDD+ implementation framework, assess social and environmental impacts, develop a Reference Level, and design a monitoring system. Expected Result: Efforts successfully undertaken by PNG with FCPF support to establish the basis for emission reductions and benefit from REDD+ Implementing Partner / Executing Entity: OCCD Responsible Parties / Implementing Agencies: PNGFA

C. LINKS TO UN-REDD PROGRAMME YES NO UN-REDD Programme partner country: X UN-REDD National Programme (NP): X NP under implementation when the R-PP project is expected to start: X UN-REDD Targeted Support X

D. PROJECT FINANCING DATA Total R-PP Resources Required: $ 3.8M Total R-PP Resources Available from FCPF: $ 3.8 M Unfunded Budget: Co-financing:

1. Other Donors Cash:

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Parallel: In-kind:

2. Government Cash: Parallel: In-kind:

3. UNDP Cash: In-kind:

CONTACTS & CLEARANCES

Country Office Contact Person: Sukhrob Khoshmukhamedov

Telephone No.: Email: sukhrob.khoshmukhamedov@undp.org

CLEARANCES TO THE READINESS PREPARATION PROPOSAL ASSESSMENT NOTE:

Resident Representative/Country Director: Sukhrob Khoshmukhamedov {Date} Regional Technical Advisor: Tim Boyle {Date} Principal Technical Advisor: Tim Clairs {Date}

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CONTENTS

SUMMARY information ................................................................................................................................. ii

Contents ....................................................................................................................................................... iv

ABBREVIATIONS AND ACRONYMS ................................................................................................................ v

I. Introduction ..............................................................................................................................7

II. Project Context ........................................................................................................................ 28

III. Proposed Project RESULTS FRAMEWORK .................................................................................. 33

IV. Overall Risk Ratings ................................................................................................................. 40

V. UNDP QUALITY ASSURSANCE INPUTS ....................................................................................... 43

VI. Assessment Summary .............................................................................................................. 46

Annex I: UNDP Risk and Issues Log ............................................................................................................. 49

Annex II: DRAFT Terms of Reference for the Strategic Environmental and Social Assessment for the REDD+ Mechanism in PNG .......................................................................................................................... 54

Annex III: UNDP Project Document ............................................................................................................ 66

Annex IV: UNDP Environmental and Social Screening Procedure ............................................................ 111

Annex V: ENVIRONMENTAL AND SOCIAL SCREENING SUMMARY ........................................................... 121

Annex VI: Response to recommendations made in FCPF Participants’ Committee Resolution PC/14/2013/4 ........................................................................................................................................... 123

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ABBREVIATIONS AND ACRONYMS

AC Administrative Committee

BUR Biennial Update Report

CBD Convention on Biological Diversity

CDM Clean Development Mechanism

CF Community Forest

CO Country Office

COP Conference of the Parties

CPA Community Protected Area

CSO Civil Society Organization

DANIDA Danish International Development Agency

EA Environmental Assessment

EC European Commission

EMP Environmental Management Plan

ESIA Environmental and Social Impact Assessment

ESMF Environmental and Social Management Framework

EU European Union

FAO Food and Agriculture Organization of the United Nations

FCPF Forest Carbon Partnership Facility

FFI Fauna and Flora International

FLEG Forest Law Enforcement and Governance

FLEGT EU Forest Law Enforcement, Governance and Trade

FPIC Free, Prior and Informed Consent

GEF Global Environment Facility

GHG Greenhouse gases

GIS Geographical Information Systems

GOPNG Government of PNG

GPS Global Positioning System

HACT Harmonized approach to cash transfer

HQ Headquarters

IP Indigenous Peoples

IPCC Inter-governmental Panel on Climate Change

JICA Japan International Cooperation Agency

LEAF Lowering Emissions in Asia’s Forests

LULUCF Land Use, Land Use Change and Forestry

MRV Measurement, reporting and verification

NAMA Nationally Appropriate Mitigation Action

NFP National Forest Programme

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NGO Non-governmental organization

NIM National Implementation Modality

NTFP Non-timber forest product

NTFP-EP Non-timber forest product Extension Programme

OCCD Office of Climate Change and Development

PA Protected Area

PAC Project Assessment Committee

PaM Policy and Measure

PEB Programme Executive Board

PMU Project Management Unit

PNGFA PNG Forestry Authority

REDD+ Reducing emissions from deforestation and forest degradation, and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries

REL Reference Emission Level

RL Reference Level

R-PP Readiness Preparation Proposal

SESA Strategic Environmental and Social Assessment

SIDA Swedish International Development Agency

TWG Technical Working Group

UNDP United Nations Development Programme

UNEP United Nations Environment Programme

UNFCCC United Nations Framework Convention on Climate Change

UN-REDD United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries

USAID United States Agency for International Development

USD United States’ dollar

WCMC World Conservation Monitoring Centre

WCS Wildlife Conservation Society

WWF Worldwide Fund for Nature

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I. INTRODUCTION As part of its responsibilities as a Delivery Partner for the FCPF, UNDP has been asked to ensure that the FCPF’s activities comply with UNDP’s policies and procedures, and the Common Approach. The purpose of this Readiness Preparation Proposal Assessment Note (R-PP Assessment Note) is for UNDP to assess if and how the proposed REDD+ Readiness Support Activity, as presented in the R-PP, complies with the above policies, procedures and approach, discuss the technical quality of the R-PP, record the assistance UNDP has provided to the REDD+ Country Participant in the formulation of its R-PP, and describe the assistance it might potentially provide to the REDD Country Participant in the implementation of its R-PP.

A. COUNTRY CONTEXT Papua New Guinea (PNG) is the largest of the Pacific Island nations, both in terms of population, estimated at some 6.1 million, and in terms of land mass, covering approximately 460,000 square kilometres. Around 87% of the population lives in rural areas of PNG’s varied and rugged terrain that supports an extraordinary range of ecosystems and biodiversity, most of which are not accessible by road. The country has a rich and unique cultural and ethnic diversity, with some 830 languages spoken by a population distributed over the mainland and the many islands. The population is forecast to grow to more than 11 million by 2050. Currently 40% of the population is under the age of 18. The country’s level of human development remains low and has, in some areas, deteriorated over the recent years. In 2008, PNG’s Human Development Index (HDI) ranked at 149 out of the 179 countries and territories surveyed. A large part of the rural population, and to a lesser extent, the urban population relies for their livelihoods on forest exploitation, fishing, hunting, and subsistence agriculture. Weak infrastructure, weak social service delivery mechanisms, marketing difficulties as well as low government and civil society capacity constrain possibilities to improve standards of living.1 The Government of Papua New Guinea’s (GoPNG) effort to become a global partner in the discussions under the UN’s Framework Convention on Climate Change (UNFCCC) includes taking a leadership role following the 13th Conference of Parties (COP) in Bali in 2007. PNG’s then Prime Minister, who was also co-chair of the Coalition of Rainforest Nations, played a leading role in launching the international discussions regarding REDD+. PNG has chosen to support the Copenhagen Accord and has worked through the Paris-Oslo process to promote an interim REDD+ agreement as a prelude to a globally applicable, legally binding climate change treaty. In addition, PNG has acted as co-chair of the interim REDD+ Partnership Secretariat in 2010, alongside Japan. In February 2010, the GoPNG made a conditional commitment, submitted to the UNFCCC under the Copenhagen Accord, to reduce greenhouse gas emissions by ~30% from current levels, or ~50% from the BAU forecast, by 2030.2 The bulk of this abatement is to come from reducing emissions caused by land use, land-use change and forestry, which currently account for over 95% of emissions, but generate less than 20% of GDP.

1 This section is based on the Situation Analysis in the UN Country Programme Action Plan. 2http://unfccc.int/files/meetings/application/pdf/pngcphaccord_app2.pdf

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PNG has made significant progress domestically to meet its international commitments, in particular by establishing institutional and management arrangements related to climate change in general and REDD+ in particular. National climate change readiness efforts began in 2008 with the establishment of an Office of Climate Change and Environment Sustainability, which was re-established in 2010 as the Office of Climate Change and Development (OCCD). Since its creation, the OCCD has made broad progress in identifying and developing key overall climate change and REDD+ strategies. These have included a Climate Compatible Development Strategy (CCDS), and national REDD+ Guidelines. In addition, GoPNG has endorsed five REDD+ pilot initiatives, including demonstration activities initiated by conservation NGOs. The aim of these pilot activities is to test the strategies developed in collaboration with key implementing partners, including development partners. SECTORAL AND INSTITUTIONAL CONTEXT PNG has one of the most significant areas of largely-intact tropical forest in the world, although these forests appear to be facing acute and imminent threats. Forests are also a vital resource for the local population particularly in the remote rural areas of PNG. These forests provide food, fibre, building materials, and support a variety of wildlife, ecosystem services such as carbon sequestration, watershed protection, water supply, soil stability and fertility. Nevertheless, forest cover data, commercial timber stocks, rate of deforestation and relative contributions of the drivers of deforestation are all subject to some uncertainty and much debate among academics and NGOs interested in forest cover change in PNG. The Papua New Guinea Forest Authority (PNGFA) estimates that approximately 60% of the total area of the country is covered by natural forests, of which 52% are considered production forests (for timber and other products), and 48% are for conservation (not for timber extraction due to inaccessibility or ecological constraints). There is a long history of debate regarding the forestry sector in PNG in numerous reviews, independent audits and studies of the forestry sector, e.g.:

IIED 1998 Country Study;

IIED 2001 Report edited by Colin Hunt;

PNG Forest Industry Association analysis (2006).

An official assessment of the Forest Resource Base by PNGFA indicates that about 29 million hectares of land are forested of which 15 million hectares are classified as production forest having potentially high quality hardwoods species suitable for commercial development.3 The remaining 14 million hectares are classified as Reserve Forests (Figure 1).

3 PNGFA (2009) Parliamentary Brief for Minister for Forests, Nov 2009, Port Moresby

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Figure 1 – PNG’s forest resource base

FAO’s Global Forest Resources Assessment (FRA) 2010 reports lower forest coverage. Based on their report, in 1990 primary forests covered 31.3 million hectares, declining to 26.2 million hectares in 2010. The rate of annual change of forest area increased significantly from -180,000 hectares in the period 1990-2000, to -427,000 hectares in the period 2005-2010. This translates into an annual deforestation rate of 1.55% in the period 2005-2010.

Table 1 – Change in the extent of primary forests in PNG (FAO FRA 2010)

Area of Primary Forests (1,000 ha)

Annual change of total forest area (1,000 ha/year)

1990 2000 2005 2010 1990-2000 2000-2005 2005-2010

31,329 29,534 28,344 26,210 -180 -238 -427

More recent estimates by Shearman et al (2008)4 and Shearman and Bryan (2010)5 suggest that intact forests covered 33 million hectares in 1972, or 82% of PNG’s land area. In 2002, PNG’s primary forest area is reported to have decreased to 25.3 million hectares, suggesting that 23% of the area in 1972 has been cleared or degraded at a rate of 0.79%, or 360,000 ha, per annum. The analysis is based on change detection between a forest map derived from aerial photo of 1972 and a forest map derived from Landsat ETM+ satellite data. The cumulative change (which is in line with the annual rate of deforestation reported by PNG to FAO) has been further elaborated with a socio-economic model to support the definition of a forest loss trend which report for 2002 a combined annual rate of deforestation and degradation of 1.41%.

4 See Shearman P., Ash, J, Mackey B, Bryan J.E, and Lokes B (2008), The State of Forest in Papua New Guinea: Mapping the Extent and Condition

of Forest Cover and Measuring the Drivers of Forest Change in the Period 1972-2002, University of Papua New Guinea, Port Moresby. 5 See Shearman, P and Bryan J (2010) A Bioregional Analysis of the Distribution of Rainforest Cover, Deforestation and Degradation in Papua

New Guinea, Austral Ecology, A Journal of Ecology in the Southern Hemisphere

PNG’s forest resource base

Total Land Area

46 million ha

Forest Area

29 million ha

Non Forest

6 million ha

Other Areas

11 million ha

Production

Forest

15 million ha

Reserve

Forests

14 million ha

Acquired Areas

12 million ha

Available Areas

3 million ha

Areas under

Timber Permits

10 million ha

Estimated Total Sustainable

Forest Production

▪ Committed annual cut =

7.2 million m3/annum

▪ Sustainable national annual

cut = 3.5 million m3/annum

▪ Estimated volume from

agriculture clearing =

1.5 million m3/annum

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Table 2 – The area of primary rainforest in PNG in 1972 and 2002, and change due to deforestation and degradation over this period (Shearman et al., 2008); swamp, mangrove, and dry evergreen forest are excluded.

Area of Primary Forests (1,000 ha)

Change of total forest area 1972-2002 (Percent)

1972 2002 Deforested area Degraded area Total

33,228 26,462 15 9 24

Additional conclusions of the report include:

Of the 1972 commercially accessible forest areas, it is estimated that by 2021, 83% will have

been cleared or degraded if current trends continue;

About 4.7 billion tonnes of carbon were stored in PNG’s primary forests in 2002. This does not

include carbon in forest soils; and

Between 1972 and 2002 deforestation resulted in the release of a net 926.5 million tonnes of

carbon through logging-related forest degradation.

Drivers of deforestation and forest degradation A model employed by Shearman et al. (2008) estimates annual rates of deforestation and degradation attributable to individual drivers, including population increase, timber export volumes, oil palm exports and forest fires (see Figure 2). The model indicates that change rates remained relatively low (around 0.4% per year) prior to 1980; thereafter, rates increased steadily as logging accelerated and human populations and associated demand for food increased. By 1997-99, the combined impacts of high logging rates and El Nino related fires helped to increase combined deforestation and degradation to an estimated 1.76% per annum. By 2002, the model indicates rates of deforestation and degradation of 0.77% and 0.64% respectively. Finally, the authors note that the change rates for the period covered by the model (1972-2002) “...are almost certainly under-estimates of the rates of change since 2002.” While Shearman’s methodology and conclusions have subsequently been challenged as overestimates by Filer et al. (2009), no other national level estimates exist at present. The lack of a comprehensive analysis of the drivers of deforestation and forest degradation is a major gap in the readiness process. While further studies are needed, the main drivers of deforestation and forest degradation appear to be large-scale selective logging and subsistence and commercial agriculture, and to a lesser extent mining activities and forest fires.

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Figure 2 – Estimation of annual rates of forest change (%/yr) for each of the identified drivers of change over the period 1972-2002 (Shearman et. al., 2008).

Figure 3, below, presents estimates of 2010 sources of emissions in PNG. Figure 3 – Estimate of 2010 sources of emissions in PNG (OCCD, 2012)

Land use and ownership in Papua New Guinea Over 80 percent of the population live in rural areas and are largely dependent on the local environment for their livelihoods, particularly subsistence agriculture in shifting cultivation.6 Legitimate land ownership and the right to exploit most natural resources are vested with the people and protected by the constitution. A commonly asserted figure puts 97 percent of the land in PNG under customary ownership, typically managed among landowners through Incorporated Land Groups (ILGs). About three

6 http://www.worldbank.org/en/news/2011/04/12/papua-new-guinea-up-30000-farmers-benefit-agriculture-project-over-next-six-years

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percent of the total land area in PNG, or about 600,000 hectares, is held privately under a 99-year State Lease or is government land. Customary land in PNG has the following characteristics:

Land is vested communally in a clan, tribe or extended family;

Land is inherited through lineage (either patrilineal or matrilineal)

Land has boundaries which are established by memory, transmitted through oral tradition, and often use natural features in their establishment;

Land is managed according to customary law, and

Land cannot be sold, leased (except for lease-leaseback) or otherwise disposed of, except to other PNG citizens in accordance with custom.7

Customary land enjoys strong statutory protection under PNG law. The purpose for restricting dealings in customary land is to provide members of a community self-sufficiency and security, unite them as a unit, and protect them from becoming a landless class.8 Customary land gains its protection from section 132 of the Land Act 1996, which provides as follows: “Subject to Sections 10 [State acquisition] and 11 [lease leaseback], a customary landowner has no power to sell, lease or otherwise dispose of customary land or customary rights otherwise than to citizens in accordance with custom, and a contract or agreement made by him to do so is void.” Thus, customary land cannot be sold, leased, mortgaged, subdivided or otherwise disposed of except in accordance with custom, and any document authorizing any of these activities (such as a contract for sale of land) could be declared void by a court, if challenged. Disputes over land, resources and benefit sharing remain key justice issues at the local level. Informal dispute resolution structures outside of the state remain strong at local level but face increasing challenges with changes in society and demands on the quality of their outcomes. This is evident in areas where rapid changes in natural resource development are occurring, the inevitability of conflicts that follow these developments, and the inability of traditional authority structures to govern and resolve disputes. Current legislative reforms aim to improve land administration, land dispute settlement processes and customary land development.9 It has been argued that the land tenure system is an impediment to rural development because land is owned by clans and can neither be alienated nor used as collateral for business loans. The mobilisation of blocks of land for rural development is constrained by the fragmentation of ownership, the difficulties of identifying the “true” owners where there are disputes, and excessive “compensation” demands. However, proposals to “register” the land to facilitate development have faced vehement public opposition. At the village level, the lack of investment opportunities is a more serious constraint. Poor

7 Land Act 1996, s 132. 8 Papua New Guinea Constitutional and Law Reform Commission, Review of incorporated land groups & design of a system of voluntary customary land registration, May 2008 (p 2) 9 These three areas summarize concerns raised at the 2005 National Land Summit, out of which the reference to the Constitutional Law Review Commission called for a review of Land Groups Incorporation Act. In 2009, the Justice Minister moved before Parliament, two amendment bills on the Land Groups Incorporation 1974 Act and Land Registration Act, which were enacted on March 19, 2009. The reforms on land dispute settlement processes are currently being done through the Magisterial Services, which include having in place specialist land court magistrates.

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infrastructure, remoteness from markets, the collapse of government extension services, and the high cost or lack of credit, impede the creation of business enterprise. Land registration processes allow the formalization of land title and the opening of customary land for development and or/commercialization. Under PNG law, there are several ways that customary land can be brought out from under the statutory protection of section 132 and thus used for development. These include:

Tenure conversion (registering the land title as freehold);10

Lease-leaseback;

Clan land (usage) agreements involving incorporated land groups (ILGs), such as where a clan agrees that another clan individual or a different clan group or entity can exclusively use land for a certain period, usually for agricultural purposes, such as for individual coffee gardens. This has to be agreed to by the registered ILG;11

Acquisition by the State of customary land, but only by agreement;12

Amendments introduced by the Land Registration (Amendment) Act 2009 have added a fifth option in the registration of customary title as “registered clan land.”

Issues associated with the above five land registration processes, including implications for REDD+, are discussed below.

a) Registering freehold title over customary land Since 1987, customary landowners have been able to convert the title to their customary land to a registered title by following the processes set out in the Land (Tenure Conversion) Act 1963.13 Once a certificate of title is issued, the land then ceases to be customary land and is regulated instead as freehold land under the Land Registration Act 1981. However, in practice, very little land has been registered under this process. Landowners have generally been reluctant to convert their customary land for a range of reasons, including:

The process for registration has been very slow and cumbersome, with significant delays within the Land Titles Commission;

The effect of registration is to release the customary land from its statutory protection, and it can then be sold, leased, mortgaged, subdivided or otherwise disposed of;

Conversion to freehold is thus potentially very destructive of the traditional system because it results in the permanent “alienation” of the land from customary control.

b) Lease - leaseback arrangements: agriculture leases

10 Land (Tenure Conversion) Act 1963. 11 Clan land usage agreements do not have any statutory basis, can only be made to other clan members or between clans (i.e. therefore excluding foreigners), and do not result in the alienation of the customary land 12 Land Act 1996, s 10. 13 The Land (Tenure Conversion) Act 1963 was amended in 1987 to allow ILGs and other customary groups to apply to convert customary land to freehold. The process involves the following steps: a citizen (an individual, company or land group) makes an application for registration to the Land Titles Commission; the Commission then calls for objections and holds a public hearing into the application; the Commission then makes a “conversion order” directing the Registrar of Titles to enter the applicant’s name as the owner of the land in the Land Title Register.

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In 1979 the Land Act was amended to allow the State to lease customary land from landowners for periods of up to 99 years on condition that the land would be “leased back” to people approved by the customary landowners.14 The purpose of the lease-leaseback mechanism was to get around the blanket restrictions on selling or leasing customary land which was restricting agricultural and commercial development. Under this scheme, customary land is first leased to GoPNG for a period of up to 99 years. In a second step, it is then leased back to registered landowner companies or “other incorporated bodies,” including private companies approved by the customary landowners. These leases are issued by the Department of Lands and Physical Planning (DLPP) as a prerequisite for approval by the Department of Agriculture and Livestock (DAL). The State is not required to pay any rent or compensation to the landowners, nor is the lesser required to pay rent.15 In practice, the lease lease-back scheme has largely been used to facilitate agriculture through Special Agricultural and Business Leases (SABLs). The majority of leases (55 percent) have been granted for oil palm development. Following oil palm projects, the next most common leases are cocoa, rubber and coffee, and large ruminant livestock. Approximately 15 percent are related to combined reforestation and agriculture projects. There are concerns that some of the approved projects do not currently contribute to agriculture development as expected, or deliver benefits to local landowners. The scheme could also result in the conversion of large intact tracts of primary forest (discussed further in Component 2b).16 Other problems with the agriculture lease system relate to a lack of transparency, including the absence of any requirement for a special agricultural lease to be advertised. The Minister can also choose to grant a State lease directly, thus waiving the need for a public Land Board hearing into the lease application.17 There have been disputes over whether landowners have given their genuine consent to the leases. This is important because once an agricultural lease is granted, all customary rights are suspended for the period of the lease (up to 99 years) and the land is effectively “alienated”.18

c) Land usage agreements involving incorporated land groups (ILGs) Since 1974, landowners in PNG have been able to incorporate themselves into land groups under the Land Groups Incorporation Act 1974. ILGs were intended to provide clans and customary landowners a mechanism for managing their land, but no complementary means for land registration was established. The 1974 legislation established a very weak process for incorporation, while being administered poorly by the Department of Lands and Physical Planning. As a result, while there is widespread use of the ILG mechanism, ILGs have suffered from a serious lack of democracy, transparency and accountability.19 In

14 Land Act 1996, s 11, 102(2), (4). 15 Land Act 1996, s 11(3), 102(5). 16 See Greenpeace, Up for Grabs: Millions of hectares of customary land in PNG stolen for logging, August 2012, reporting that 72 Special Agricultural and Business Leases (SABLs) totaling 5.1 million hectares of customary-owned land representing over 11 percent of the country and over 16 percent of accessible commercial forests have been granted to unrepresentative landowner companies and foreign-owned corporations for up to 99 years. Logging companies are cited as the biggest beneficiaries of the SABL system, and PNG log exports grew by almost 20 per cent in 2011 due almost entirely to logging within SABLs. SABLs have resulted is an increase in deforestation of primary forests for oil palm. 17 Land Act 1996, s 69, 72, 102(6). 18 Land Act 1996, s 11(2). 19 See Filer (2007), Chapter 8, Local Custom and the Art of Land Group Boundary Maintenance in Papua New Guinea, published in Customary Land Tenure and Registration in Australia and Papua New Guinea: Anthropological Perspectives, Weiner JF and Glaskin K (eds), ANU, E-Press.

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PNG, the ILG mechanism has a long history of being used to obtain consent from landowners for resource development, primarily in the areas of forestry, oil extraction and mining, with complaints that benefits have not been distributed fairly. An ILG has broad powers to control the use and management of clan land under the Land Groups Incorporation Act 1974.20 The powers of an ILG include the power to:21

Enter into agreements for the use or management of land;

Acquire, hold and dispose of customary land and customary rights in customary land, but only in accordance with custom, and

To distribute any product of the land or any profits arising out of the use or management of it (e.g. such as REDD+ revenues).

These powers are arguably broad enough to enable an ILG to enter into an agreement for REDD+ activities on their customary land (subject to the correct procedures being followed under the Act and ILG Constitution), and to distribute REDD+ revenues through the ILG structure if desired. However there remains some legal uncertainty as to whether such an agreement might breach the provisions which prohibit dealings in customary land.22

d) Amendments introduced by Land Registration (Amendment) Act 2009 Many of the defects in the ILG process have been remedied by legislative changes to the process of incorporating and managing ILGs. First, the Land Registration (Amendment) Act 200923 introduced a new process by which Incorporated Land Groups (ILGs) can voluntarily register the title of their customary land. Such land is called “registered clan land”.24 The stated purpose of the Customary Land Amendment Act is to:25

Promote and facilitate the registration of land held under customary law;

To allow development to take place primarily through the use of ILGs; and

To encourage traditional villages and communities to remain as viable units of PNG society while improving their culture, social, economic and ethical quality.

The intention is for an ILG to register the parcels of customary land suitable for development.26 An ILG must be incorporated before land can be registered under the Customary Land Amendment Act. The amendments create a Director of Customary Land Registration, who is responsible for overseeing the new registration process.27 This process requires the Director to independently verify the membership of the ILG and check the proposed boundaries. The Director also exercises a great deal of control over the registration process, has wide investigative powers, and is responsible for hearing and resolving

20 Land Groups Incorporation Act 1974, s 13. 21 Land Groups Incorporation Act 1974, s 13 (Powers of Incorporated Land Groups). 22 Land Act 1996, s 132. 23 This Act was passed on 19 March 2009 and became effective in March 2011. 24 Note: the new registration process does not amend the existing process for registering customary land under the Land (Tenure Conversion) Act 1963 (which presumable still remains an option), but rather inserts a new Part IIIA into the Land Registration Act 1981. 25 Land Registration (Amendment) Act 2009: Objectives. 26 Tararia, A. and Ogle, l., 2010. Incorporated land groups and the registration of customary land: Recent developments in PNG in Tim Anderson and Gary Lee (Eds) In Defense of Melanesian Customary Land, Aid Watch, Sydney. p 21. http://www.aidwatch.org.au/sites/aidwatch.org.au/files/Land%20report%20April2010%20for%20web.pdf .. 27 Land Registration (Amendment) Act 2009 s 34B.

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objections. The manner in which the Director carries out his or her duties is therefore critical to the integrity of the land registration process. The Customary Land Amendment Act also establishes a new Register of Clan Land that the existing Registrar of Titles is responsible for maintaining.28 The amendments contain a provision that expressly allows an ILG registered as the owner of clan land to grant derivative rights and interests in the land to another person, on payment of rent.29 “Derivative rights and interest” are not defined in the Act, and the process appears to resemble a lease. It is arguable that entering into a REDD+ contract might constitute a “derivate interest” in land, and it may therefore be possible to use this provision as a vehicle for a REDD+ Agreement, although further research into this possibility should be done. On 19 March 2009, the National Parliament passed the Land Groups Incorporation (Amendment) Act 2009, which substantially improves the processes by which ILGs are incorporated and managed. Like the Land Registration (Amendment) Act, this legislation did not go into effect until March 2011. The objectives of the amendments are to:

Allow development to take place primarily through the use of PNG forms of social and political organization

To ensure the integrity and viability of ILGs engaging in development activities, and

To provide for the transparent and effective management of ILGs. The amendments to the Land Groups Incorporation Act 1974 require landowners to provide much more detail in their application to register an ILG.30 Applicants are now required to identify the boundaries of the land over which the ILG wishes to claim ownership (including noting any areas in dispute). The purpose of the amendments is to remedy the problems caused by the old ILG registration process, which did not require adequate detail of land boundaries and group membership to be given in the application, thus resulting in conflicts arising following incorporation. The amendments to the ILG process also establish a much more thorough process for resolving internal disputes between landowners which are apparent prior to incorporation. For example, the amendments now require the District Administrator and Village Courts to circulate an application for incorporation to people whom they think are most likely to have knowledge or interest in the application, and the Registrar of ILGs has additional powers to reject an application or to withhold issuing a Certificate of Recognition until all internal disputes have been settled.31 However, the creation of a new ILG does not automatically result in the registration of the land title, and the land which is managed by the ILG retains its tenure as customary land. Once an ILG is incorporated under the new procedure, the ILG can then decide whether it wishes to take the further step of registering the title to its land in accordance with the provisions in the Land Registration (Amendment) Act.

28 Land Registration Act 1981, s 4, 9; Land Registration (Customary Land) (Amendment) Act 2007, s 5. 29 Land Registration (Amendment) Act 2009, s 19, inserting news 34 O. 30 For a list of the old requirements, see Land Group Incorporation Act 1974, s 5(2) (now repealed), and Land Groups Incorporation Regulation, Cl 3(1) and Form 1. 31 Land Groups Incorporation (Amendment) Act 2007, s 5A, 5B.

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The Land Groups Incorporation (Amendment) Act 2009 also introduced many improvements to the way in which ILGs are governed by Management Committees, including:32

The requirement to hold an Annual General Meeting

The requirement for a Management Committee to have between 6 -10 people, including at least two women

The requirement for a quorum of at least 60% attendance at meetings in order for business to be transacted, with at least 10% present being of the other gender.

The need for the Management Committee to keep bank accounts, which must be open to inspection by the Registrar, the dispute-settlement authority, or any member, at all times

The need for the Management Committee to maintain an up to date register of its members.

The introduction of a detailed Code of Conduct for members of the Management Committee, which includes a prohibition of “self-dealings”:

Finally, the Land Groups Incorporation (Amendment) Act provides that all current and existing ILGs will cease to exist five years after the amending Act comes into force. Within the five-year transitional period, existing ILGs can reapply for incorporation under the new provisions.

e) The ILG dispute resolution process and implications for REDD+ If an ILG conducts a REDD+ demonstration activity it will need to have a mechanism by which disputes can be resolved. One of the stated purposes of the Land Groups Incorporation Act 1974 is to encourage better and more effective settlement of disputes within ILGs by encouraging ILGs to resolve disputes themselves.33 As a result, the Land Groups Incorporation Act 1974 contains detailed provisions for settling disputes which may arise after incorporation has taken place. However, dispute settlement provisions do not apply to all disputes concerning ILG’s. They can only be used to resolve:34

Internal disputes between members of an ILG concerning the property or affairs of the group, including disputes over the distribution or disposal of any property or income of the group (e.g. which could arguably include disputes over REDD+ revenues); and

Disputes as to membership of an ILG, which includes disputes as to whether somebody is entitled to membership in the ILG.

The dispute settlement procedure under the Land Groups Incorporation Act 1974 is characterized by flexibility and an absence of legal formality. It relies heavily on processes that aim to achieve consensus rather than coercion and in this vein gives a very limited role to the courts. There is great emphasis on the parties to a dispute be able to reach agreement between themselves on who the decision-maker should be, in preference to having one imposed on them externally, by the Act. The process places a great deal of power in the hands of the “dispute settlement authority”, which is nominated by the ILG when they incorporate, so it will be very important that great care is taken when making this appointment. This approach appears to reflect a desire to encourage disputes to be resolved in a

32 See the new provisions in “Division IIIA – Management of Incorporated Land Groups” which have been inserted into the Land Groups Incorporation Act 1974. 33 Land Groups Incorporation Act 1974, s 1 (Purposes of this Act). 34 Land Groups Incorporation Act 1974, s 20.

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customary manner according to traditional dispute settlement processes. In cases where the dispute settlement process breaks down, the Act appoints the Registrar of Incorporated Land Groups as a kind of “circuit breaker”. For example, if there is some reason why it is inappropriate for the dispute-settlement authority appointed under an ILG’s constitution to judge a particular case (e.g. if they have a conflict of interest), then the Registrar can, after consultation, appoint a different dispute-settlement authority to resolve the matter. This might be a Village Court, or if there is none, a customary authority.35 In the context of a REDD+ project, these restrictions would mean that a dispute between an ILG and an adjoining landowner who is not a member of the ILG could not be dealt with under the dispute settlement provisions of the Act. If the land title has been registered, then disputes over the ownership of, interests in, or boundaries of land would be dealt with during the process of land registration. The major forms of land use and land ownership in PNG will need to be assessed, especially in tandem with further research on the actors and drivers of deforestation, as part of a broader analysis of national laws and policies relevant for REDD+. The risks and benefits to customary landowner communities in the proposed REDD+ implementation framework will also be assessed, with land tenure arrangements to be ultimately aligned with safeguards required by the UNFCCC, UN-REDD, FCPF and international best practices relating to the rights of local communities and indigenous peoples. In particular, ILGs will be closely assessed for their suitability as a principal mechanism in formulating land tenure arrangements for REDD+. Landowner representation in REDD+ through the ILG mechanism has the potential advantages of 1) building on existing and familiar legal structures in PNG. There is also significant potential to harness improved processes for the incorporation and management of ILGs at the sub-national level for REDD+, for use in piloting approaches to land-use planning, forest governance, benefit sharing mechanisms and sustainable forest management. Logging and reforestation in the forestry sector Logging is carried out in natural forests by a small number of large private logging companies, generally foreign owned. Companies pay royalties to landowners. Landowners are usually represented by a landowner company formed to look after the owners’ collective interests, or to an agent. Many problems occur with such representation. In many cases, royalty payments were received by company representatives or agents but never fully paid to the appropriate landowners, or were reduced by illegal deductions made by the companies. The landowner share of logging proceeds in terms of timber royalties ranges from a flat royalty of PGK10 per m3 up to PGK35 per m3, depending on the type of timber. In addition to this royalty, landowners negotiate separate in kind benefits and price premiums as part of the concession negotiations. These may vary considerably. Royalties and premiums are often not paid in full, are not fairly distributed and contribute little to rural welfare, according to the Independent Forestry Review Team.36 Given the land tenure system in PNG, determining the opportunity costs of logging and providing appropriate payments is difficult. Most previous efforts to provide conservation alternatives that meet

35 Land Groups Incorporation Act 1974, s 2(2). 36Independent Review of Disputed Timber Permits and Permit Extensions (2003) established by the PNG Government in 2003 to review issues surrounding a proposed World Bank loan to improve forest management. The loan was not taken and the review was not completed.

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the logging opportunity costs have failed.37 Yet at the same time, questions have been raised about the contribution of logging in PNG.38 According to the PNGFA, significant funding is needed to support the limited staff and capacity that is required to be out monitoring and reporting on logging operations. The JICA funding covers technical capacity in terms of GIS and RS hardware and software including the acquisition of satellite imageries while the EU funding covers the multi-purpose forest cover inventories. The monitoring and reporting component of field activities need serious funding support in terms of enhancing existing staff and recruiting new staff since annual government funding is insufficient. According to PNG’s Forest Industries Association, the timber industry provides jobs to only around 9,000 people, mostly located in remote areas where few other forms of employment exist. NGOs and the Review Team preparing the 2009 NP submission, however, assert that these are generally lowly paid jobs that require little training and contribute little to long-term welfare of the local population. Many of the higher-skilled positions are filled by foreign labour. In addition to providing jobs, logging operators construct infrastructure, as well as health and education facilities, as part of the concession agreements. There is considerable debate about the sustainability and quality of the infrastructure/services provided. The Review Team describes operator performance as under par, while Rimbunan Hijau has commissioned a number of reports to demonstrate the lengths to which it goes to provide infrastructure and services to the landowners and its employees.39 Under the post-1991 Forest Management Agreements, companies pay for the construction of facilities but are no longer responsible for putting them in place. The forestry sector has contributed 3.8 percent to PNG’s GDP in 2008, and provided 0.3 percent of employment in the formal sector. In 2009, approximately 2.8 million m3 of logs were harvested. Of the country’s total logs harvested, 80 percent is exported as round logs while 20 percent or less is processed locally.40 Domestic timber processing is not well developed in PNG although considerable tax incentives and current ‘zero’ tax on export of processed timber is offered. The major domestic export products are sawn timber, plywood, veneer and Balsa wood products. The remainder of this sub-section describes the three types of commercial logging arrangements and concludes with a discussion on reforestation.

37See Race for the Rainforest: Evaluating Lessons from an Integrated Conservation and Development “Experiment” in New Ireland, Papua New Guinea, by Rob McCallum and Nikhil Sekhran, UNDP, 1997. 38Drawn from www.odifpep.org.uk/activities/environmental_governance/S0153/png_paperthree_issues.pdf 39See www.forestryanddevelopment.com/ 40 PNGFA (2009) Parliamentary Brief for Minister of Forests, Nov 2009, Port Moresby.

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Table 3 – Declared log harvest and round log exports, 2001-2009 (PNGFA Field Services Division, PNGFA - SGS monthly reports and database).

Year Volume Harvested

(m3) Volume Exported (m3) – Round

Logs

2009 2,802,277 2,066,854

2008 2,755,554 2,514,915

2007 3,481,617 2,835,402

2006 3,389,891 2,638,296

2005 2,832,162 2,282,414

2004 2,776,900 2,012,136

2003 2,100,284 2,015,208

2002 2,140,953 1,853,549

2001 1,646,047 1,556,220

a) Commercial Timber Operations

Commercial logging operations are permitted in timber concessions approved under Timber Permits governed by Section 73 of the Forestry Act. A Forest Management Area (FMA) is applied to a natural forest area identified for commercial development by PNGFA, where rights have been acquired from customary landowners for a period of 50 years to manage and commercially develop their forests. This is the current forest management regime employed by the PNGFA. Under this arrangement, the concession holder can operate within the timber concession for 40 years.41 In 2009, there were about 55 approved timber permit operations in the country with a total committed forest area of 9 million hectares of lowland forest.

b) Allocation of small timber resource areas under timber authorities A Timber Authority approved under Section 87 of the Forestry Act is granted to enable the supply of timber to sustain small-scale sawmilling, and to clear land for small-scale agriculture development at the village level. A Timber Authority is issued up to an aggregate amount of timber to be harvested annually of 5,000 m3 or clearance of less than 50 hectares of trees. It is issued by the Chairman of the Provincial Government Committee responsible for forestry matters. Issuance is based on the advice of the Provincial Forest Management Committee (PFMC). The National Forest Board gives consent for the endorsement of Timber Authorities. As of December 2009, a total of 62 Timber Authority applications were processed by PNGFA and referred to the respective PFMC to approve and issue to the various forest industry participants throughout the provinces, primarily for domestic processing operations. Timber authorities can provide an important opportunity for landowners to participate in and manage small-scale timber operations, as well as contribute to rural development. However, it must be acknowledged that there are challenges to ensure sustainable harvesting and compliance within these areas. The smaller volumes and fragmentation of TAs can reduce incentives to demonstrate sustainability or compliance and makes comprehensive capacity building and monitoring costly and difficult to enforce.

41Residual or undersized trees left behind by the initial logging operation will have grown to an acceptable size of more than 50 cm diameter breast height within 40 years (changed from 35 years as of 1 January 2010), thus the resource can be managed and developed in a sustainable manner till the next cutting cycle.

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c) Special Agriculture and Business Lease System (SABL)

Based on data from DAL, PNGFA, DEC and OPRA, up to an estimated 2.3 million ha of primary and secondary forest lands have been allocated for agricultural use and therefore might be eligible for clear-cut logging. Out of this 2.3 million ha, roughly 670,000 ha have already received Forest Clearance Authorities (FCA) and Environment Permit (EP). In May 2011, then acting Prime Minister Sam Abal appointed a Commission of Inquiry into potential abuses of the Special Purpose Agriculture and Business Lease (SABL) system, particularly the use of SABLs to secure Forest Clearance Approval for timber harvesting of large virgin forest areas. The Commission originally had until September 2011 to investigate and make recommendations on reforms that will allow the government to mitigate between climate change issues, development needs and landowner issues. Abal also issued an immediate moratorium on the granting of any new SABLs, FCAs and EPs. In ordering the inquiry Abal cited the “rampant abuse” of the laws, regulations, and procedures concerning the granting of these leases. While Commission members were appointed in July 2011, its report was only finalised in May 2012. The Commission of Inquiry will present its report to the Prime Minister for presentation to Parliament as required under the Commission of Inquiry Act.

d) Reforestation Plantation forestry remains small in PNG, but the development of reforestation is important to PNG as it can ease the pressure on logging of native forests and help to maintain a sustainable forest industry as per GoPNG policy. Figures for 2004 indicate 52,000 ha of reforested area of which around 60 percent was managed by the private sector and the remainder by GoPNG (Bourke and Harwood 2009).42 In 2004, the volume of plantation timber was 247,214 m3, valued at 46 million Kina. This seems to have slightly grown to 62,000 ha by 2008 (PNGFA 2010). The largest plantations are in East New Britain, West New Britain, and Morobe Province, Highlands and in Madang Province. These plantations accounted for 70 percent of total plantations in PNG, while the rest was distributed in 13 locations in 10 provinces (Bourke and Harwood 2009). The PNGFA (2010) has stated that the future of forests in PNG lies in plantation development as the forest resources that are accessible and commercially viable are diminishing at a fast rate. The PNGFA has also formulated a policy on reforestation that is supported by a Plantation Development Program that aims to establish 240,000 ha by 2030. There are significant tenure and socio-economic barriers to more rapid expansion of plantation forestry. Particularly hardwood plantations take a long lead time before harvest and customary landowners are reluctant to wait for long periods to generate incomes. Coupled with limited engagement of the forest industry and limited downstream processing facilities to date, this has prevented a rapid growth of this forestry subsector. The PNGFA also claims that a major constraint to expansion of plantation was a lack of capacity and resources within the authority.

42See Bourke, M and Harwood, T (eds.) (2009). Food and Agriculture in Papua New Guinea, ANU E Press, The Australian

National University, Canberra

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A successful expansion of afforestation and reforestation activities will require a joint approach by GoPNG, the private sector and landowners in order to address barriers to access, increase investor confidence, and provide mechanism to provide land-owners ownership of such projects. One such potential approach could be through a broader promotion of community forestry extension programs. As an important step forward, funding support from the R-PP would be utilised to support the review of existing forest extension programs and increase the areas of plantation forestry throughout PNG.

e) Community Forest Management The PNG Forest Authority has an Eco-forestry Programme established in 2006 which promotes sustainable forest management at the community level. This programme is managed through the Eco-forestry Branch43 . At the same time the PNG Forestry and Climate Change Policy Framework for Action emphasizes the need for a multi stakeholder approach to community forest management and REDD+ programming that engages customary landowners at the local level. The Interim Action Plan on Climate Compatible Development also identifies conserving forests through community REDD+ action as an abatement option. In terms of implementation though some NGOs have implemented some activities related to community forest management. Activities include forest resource assessment, forest management decision making processes, and decisions on development options. FORCERT44 for example has been promoting and implementing activities supporting communities to sustainably manage their land and forest through certified small scale tree harvesting linked to the Forest Stewardship Council (FSC). The income however is too small to compete with income from commercial logging or oil palm plantations therefore FORCERT has embraced payment for ecosystem services as a potential additional income stream for the communities, including REDD+ as an option45. The Wildlife Conservation Society (WCS) in its community based project out in Manus island have completed a community mapping and consultation exercise and have plans for training communities on changes in the land laws/regulations as well as training in technical aspects such as identifying drivers of deforestation and community forest inventory46. PNGFA is also pursuing a proposal with the ITTO on Community Forest Management: Enabling customary land owners to participate effectively in CFM and REDD schemes within these four pilot areas. This project will aim to design community based land ownership mapping and forest resource assessment systems that support CFM and REDD schemes.47 With the current REDD+ pilot activities including those led by the PNGFA their success will depend on the ability and success to fully engage the respective communities in the planning , decision –making and implementation processes linked to the management of their forest resources.

43 http://www.forestry.gov.pg/site/page.php?id=33 44 www.forcert.org.pg 45 FORCERT, Project brief for PES Trial Project, submitted UNDP and OCCD for funding in 2013 46 From presentation to the REDD+ TWG and discussions with Bensolo Ken, Programme Officer WCS 47 http://www.forestry.gov.pg/site/files/CFM-REDD%20Project%20Brochure_27-2-2013.pdf

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NATIONAL REDD+ DEVELOPMENTS Key institutions involved in REDD+ development and implementation in PNG are described below.48

a) The National Executive Council (NEC) The NEC is the highest ranking decision-making body in the country and is responsible for endorsing all policies and legislation. It comprises of Cabinet Ministers and Heads of Department and government statutory bodies who hold regular meetings to make decisions on important matters pertaining to the management of government affairs. Submissions are normally done through each Minister responsible for individual departments and government agencies, seeking approval and endorsement from the Prime Minister as the chairman of the National Executive Council. The Minister of Climate Change and Forestry reports directly to this Council on important climate change matters, including progress and development within the Office of Climate Change and Development. For legislative and policy support, the Minister can also submit proposals in the form of an NEC Decision seeking approval from the Council members. The Executive Director as the head of the OCCD also accompanies the Minister to provide technical advice and update, in addition support any submissions to be made by the Minister.

b) PNG Forest Authority (PNGFA)

The Papua New Guinea Forest Authority (PNGFA) was established in 1993 under the Forestry Act,

1991. The mandate of the PNGFA is to “Promote the management and wise utilization of the forest

resources of PNG as a renewable asset for the well-being of present and future generations.”

The National Forest Service (NFS) is the implementing arm of PNGFA. The governing body is the

National Forest Board (NFB). The NFB oversees the national functions whilst the provincial business is

controlled through the Provincial Forest Management Committees (PFMCs). The NFS is made up of the

Office of the Managing Director and six directorates:

1. Forest Policy and Planning Directorate

2. Project Allocation Directorate

3. Field Services Directorate

4. Forest Development Directorate

5. Corporate Services Directorate

6. PNG Forest Research Institute (PNGFRI)

In the context of REDD+, PNGFA is responsible for the generation of data on forest carbon stocks and

forest area changes, overseeing the implementation of REDD+ activities, promoting sustainable forest

management and providing technical and policy support for the development of REDD+ activities and

policy options.

48 This section has been revised since the previous R-PP submission in order to reflect changes in the organizational structure based on National Executive Council Decision NG 137/2012 of 27 November 2012, which came into effect on 18 February 2013.

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c) Ministry of Environment and Climate Change (MECC)

A new Ministry of Environment and Climate Change (MECC) has been created under the current government allowing the OCCD Executive Director to report directly to the MFCC rather than to the Prime Minister, as was the case previously. The previous Ministry played a leading role in shaping the Government’s strategy and provided direction and assistance to OCCD’s many tasks. The current Ministry has continued to show its commitment and support for REDD+ in PNG. Given that REDD+ has become a development priority in PNG, the minister’s continued role will remain critical to the development of REDD+ in PNG. Key aspects of this role include lobbying for financial support both domestically and internationally and submitting relevant policy and legislation proposals for Cabinet approval.

d) Office of Climate Change and Development (OCCD) The Office of Climate Change and Development (OCCD) is the coordinating entity for all climate change policy in PNG and the Designated National Authority under the UNFCCC. Established under NEC Decision 54/2010, OCCD replaces the Office of Climate Change and Environmental Sustainability. OCCD’s mandate is founded upon the principles of the Fourth Goal of PNG’s National Constitution, which stipulates that “Papua New Guinea’s natural resources and environment are to be conserved and used for the collective benefit of all and are replenished for the benefit of future generations.” The mandate is further derived from NEC decision 54/2010, which specifies:

1. That the National Climate Change Committee (NCCC) and the OCCD as its secretariat take full and exclusive responsibility for all policies and actions under Pillar Five of the Vision 2050, concerning Climate Change and Environmental Sustainability;

2. That the OCCD engages and involves all stakeholders to build a common vision and pathway on action to tackle climate change;

3. That the OCCD works in close collaboration with, and in support of other departments and agencies to achieve these goals.

The OCCD is designed as a lean, efficient organization that coordinates the climate-change efforts of the GoPNG. Capacity development for OCCD’s staff to enable it to carry out its tasks effectively will remain a key priority over the coming months and years. With the guidance and support of the Minister of Climate Change, the OCCD’s immediate responsibilities include:

Conduct a national and provincial consultation on climate-compatible development and REDD+. The consultation will engage a broad range of stakeholders including government, civil society, private sector and local communities. At the local level, the consultation is designed to yield a better understanding the climate-change issues facing communities, obtain feedback on what it would take communities to participate in a national REDD+ program and prioritize adaptation measures most appropriate for communities.

Launch immediate Fast Start Actions including ‘readiness activities’ for REDD+ and pilot projects for different approaches to mitigation, adaptation and low carbon growth.

Prepare the final version of PNG’s National Climate-Compatible Development Strategy (CCDS), which includes REDD+.

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Determine financing requirements of Fast Start Actions and scale up and establish an overall investment plan, which can form the basis for international negotiations of REDD+ support.

Coordinate the implementation of the Climate Compatible Development Policy (CCDP). The OCCD’s long-term responsibilities include:

Support the Government in the overall steering and coordination of the climate-compatible development strategy

Conduct rigorous policy analysis and manage inter-agency policy development on climate change-related issues

Liaise and manage relationships with development partners

Approve climate-change related initiatives (e.g., REDD+ pilot initiatives)

Implement pilot activities and programs, working, where appropriate with NGOs and others

Monitor and evaluate project and program performance (including a coordinating responsibility for a national system of MRV for REDD+).

The OCCD acts as a coordinating body for other government agencies and will not implement REDD+ sector programmes and activities. These will be implemented by government organisations in accordance with their institutional obligations; they, in turn, will report to the OCCD regarding the activities that they have undertaken. The OCCD’s strategic position also allows for inclusiveness in the process, by allowing the private sector and NGOs to collaborate with the existing government bodies in implementing activities. OCCD has a REDD+ and MITIGATION Division, headed by a Director with four technical officers. One of the specific responsibilities of this Division will be to coordinate and manage the roles of the REDD+ TWG (see below).

e) REDD+ Technical Working Group There are five Technical Working Groups currently operating under the governance structure of the OCCD, one of which is the REDD+ Technical Working Group. Since 2010, the GoPNG has ensured multi-stakeholder participation and input through a number of Technical Working Groups. The multi-stakeholder REDD+ Technical Working Group (TWG) also has three sub-working groups – Forestry, Agriculture and MRV Sub-Working Groups (SWG). These working groups have the task of coordinating and advancing REDD+ activities (REDD+ readiness and pilot activities) with the participation of non-government stakeholders and civil society representatives as well as church representatives. There have been regular meetings and discussions of major policy documents since 2010. The REDD+ TWG normally meets once a month to share progress made and finds solutions for common issues. The Forestry SWG (FSWG) is responsible for coordinating the incorporation of social and environmental safeguards into a REDD+ regulatory framework. The FSWG also reviews and informs forest sector policy reforms and regulations. The Agriculture SWG (ASWG) collates views and addresses issues relating to land use change due to agricultural activities including special agricultural business leases. The MRV SWG is charged with setting up PNG’s national MRV system, including stock-taking regarding technical capacities within existing institutions and identifying areas needing improvement. The overall governance structure ensures that existing capabilities in PNG are utilized effectively and that additional capacity can be built up in a targeted and lasting manner. As outlined above, this TWG is

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managed and coordinated by the OCCD, through the role of the REDD+ and MITIGATION, and its officers. The main responsibilities of the REDD+ Technical Working Group (REDD+ TWG) are to:

Provide overall REDD technical knowledge and guidance for the implementation of REDD+ activities based on global, regional and national best practices;

Promote exchange of knowledge and information sharing among all members;

Provide substantive inputs for the design, coordination and implementation of Annual Work Plans (AWPs) and Budgets;

Review the FCPF Programme documents for technical feasibility and propose recommendations for Program Executive Board (PEB) endorsement of the REDD+ activities.

Supplementary initiatives: UN-REDD National Programme The PNG national UN-REDD Programme document was signed on 16th June 2011, and is expected to conclude on 31st December, 2015. The objective of the UN-REDD programme is to ensure that by 2015, PNG has an operational Measurement, Reporting and Verification system that enables the country’s participation in international REDD+ systems. This is to be achieved through the following five outcomes:

Outcome 1 – Readiness Management Arrangements in Place

Outcome 2 – National MRV system developed

Outcome 3 – Establishment of Reference Emission Levels (REL) and Reference Levels (RL) supported

Outcome 4 – Monitoring of abatement concepts supported

Outcome 5 – Stakeholders engaged in PNG’s REDD readiness process Status of Implementation Following a period of slower than expected implementation during 2012, activities under the NP have been implemented at a far higher rate in 2013. This is a result of a stabilized political (and institutional) climate as well as the influence of a Programme Management Unit that became operational in January 2013. The FAO-led work on land-use monitoring and assessment began in earnest in April 2013 with the hiring of two remote sensing experts and an IT manager as national operators of the monitoring system, marking the establishment of a remote sensing and GIS laboratory with the OCCD and partial completion of annual activities under Outcome 2 of the programme. Training events in the second half of 2013 will build the technical capacity of the operators and a national land use/land use change assessment will begin before the end of the year. Activities under Output 2.3, on the National Forest Inventory, were also progressed, through a second technical workshop in February and the development of a first draft Master Document that details the approach and measurement protocols for PNG’s new forest inventory. Nevertheless, progress on the implementation of FAO-led activities was impeded by the protracted hiring process of the Technical Specialist officer (selected in February 2013). The government clearance and visa granting process proved to be the major obstacle and was still in progress in early September.

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Key areas of progress under UN-REDD Achievements delivered under Output 2.3 (on the design of the national forest inventory) were documented in a Master Document for the inventory (first draft has been produced) which sets out the approach, methods, tools, etc.; and will guide the implementation of the inventory and serve as the basis for training of field crews. The equipment purchased through Output 2.2 for the monitoring system laboratory will become the property of the government following the programme to ensure all necessary equipment is available for regular land use assessment/monitoring activities.

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II. PROJECT CONTEXT

A. CONCEPT 1. Description The national REDD+ readiness process encompasses all issues related to REDD+ readiness in PNG. The overall amount of funding needed to address capacity building for REDD+ in PNG was estimated at US$ 16.375 million in the PNG R-PP. This estimate is still considered to be relatively accurate. The activities identified in the grant agreement are a subset of an overall readiness effort laid out in the R-PP, which was presented to the FCPF in March 2013. The grant agreement also responds to the recommendations of the Participants’ Committee made in Resolution PC/14/2011/4 – see Annex VI. Status and lessons learned from REDD+ Readiness initiatives in PNG PNG’s REDD+ readiness planning is supported by:

UN-REDD Programme ($6.4 million) European Union (EU) (Technical support: $10 million) Government of Japan (Technical support: $12 million)

In addition, several initiatives led by NGOs have focused on establishing REDD+ demonstration sites in different forest types. Furthermore, a regional USAID programme, “Lowering Emissions in Asia’s Forests” (LEAF) is working in PNG. Table 4, below, shows the current status and lessons learned from each of these initiatives. Table 4 – Status of REDD+ readiness initiatives and lessons learned Initiative Status Completion Funding Lessons

UN-REDD Active End 2015 $4M GOPNG is open to comprehensive stakeholder engagement

LEAF Active End 2016 Development of planning tools, REDD+ fund design, etc.

EU Almost active

End 2018 $10M Mostly procurement of equipment – no specific lessons

Demonstration projects

Active Various Approx. $6M

Demonstration of stakeholder engagement, FPIC, BDS, etc.

Lessons derived from these initiatives have informed both the Results Framework of the FCPF and the institutional arrangements. 2. Project Stakeholder Assessment The development of REDD+ in PNG will have impacts on a wide number of stakeholders. A detailed understanding of these stakeholder groups, their interests and how they will be impacted by any potential activities for REDD+ is important if future mechanisms are to be efficient, effective and equitable. Such an assessment will be conducted through an Institutional Context Analysis. The below information seeks to provide an overview of key stakeholder groups and their importance within the REDD+ process:

Government institutions and agencies – GoPNG is responsible for policy, regulatory and planning tasks related to establishment and maintenance of the enabling conditions for REDD+ implementation. This includes enforcement of legislation and regulations, conflict resolution, service

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delivery, and ensuring that necessary capacity and technical assistance are available for development. A key consideration is that the majority of forests are state property, although mechanisms exist for local co-management of forestlands. A mechanism for REDD+ could provide substantial support to existing and future plans for forest governance in PNG. Coordination through and across Government will be critical to the success of REDD+. The capacity of several institutions will also have to be increased if strategies for REDD+ are to be effectively implemented. The establishment of a PNG REDD+ National Steering Committee (NRSC) will be essential for this purpose. The NRSC will look to support across government working and will facilitate interactions between different ministries as well as existing coordination bodies such as the NEC.

NGOs – A large number of past and present NGO and government led projects exist in PNG in the areas of environmental stewardship, biodiversity conservation, community development and rural development. For example, organizations such as WCS and The Nature Conservancy have a longstanding presence in PNG operating projects aimed primarily at protecting biodiversity in large landscapes of PNG such as in Manus and Madang. These projects have included in-depth assessments of both biodiversity indicators and broader ecosystem services. Additionally, a focus of these projects has been on assisting community livelihoods meaning approaches to monitor the socio-economic condition and benefits for rural communities are integrated have also been integrated into the project design. FORCERT, Greenpeace, Tenkile Conservation Alliance, WWF, Conservation International, Live and Learn Environmental Education, Mama Graun Conservation Trust Fund are other NGOs active in PNG. Eco-Forestry Forum

Civil society and Indigenous Groups – Overall, the historical, cultural, and political context of PNG has resulted in a weak level of civil society organisation at the national level with limited engagement in policy debate and formulation. The Foundation for People and Community Development (FPCD) is an organization working on REDD+ community-based initiatives in many parts of the country. The Eco-Forestry Forum is also very active, with initiatives such as the REDD+ road show to raise community awareness.

Private Sector – Private sector engagement is associated with two major economic activities. Logging is carried out in natural forests by a small number of large private logging companies, generally foreign owned. Companies pay royalties to landowners. Landowners are usually represented by a landowner company formed to look after the owners’ collective interests, or to an agent. Many problems occur with such representation. In many cases, royalty payments were received by company representatives or agents but never fully paid to the appropriate landowners, or were reduced by illegal deductions made by the companies. The landowner share of logging proceeds in terms of timber royalties ranges from a flat royalty of PGK10 per m3 up to PGK35 per m3, depending on the type of timber. In addition to this royalty, landowners negotiate separate in kind benefits and price premiums as part of the concession negotiations. These may vary considerably. Royalties and premiums are often not paid in full, are not fairly distributed and contribute little to rural welfare, according to the Independent Forestry Review Team.49 Special Agricultural and Business Leases (SABLs) are an initiative to promote investment in the agricultural sector. The majority of leases (55 percent) have been granted for oil palm development. Following oil palm projects, the next most common leases are cocoa, rubber and coffee, and large ruminant livestock.

49 Independent Review of Disputed Timber Permits and Permit Extensions (2003) established by the PNG Government in 2003 to review issues surrounding a proposed World Bank loan to improve forest management. The loan was not taken and the review was not completed.

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Approximately 15 percent are related to combined reforestation and agriculture projects. The PNG Forest Industries Association (Inc.), serves the interests of logging companies, while the PNG Oil Palm Research Association, PNG Sustainable Development Program Ltd, OK Tedi, PEAK (Porgera Environmental Association Komiti, OK Tedi Mining, PNG LNG are other bodies representing private sector interests.

Knowledge Institutions – The University of Papua New Guinea (UPNG) Remote Sensing Unit is currently operating PNG’s most advanced GIS system and supporting GoPNG on remote sensing. The Papua New Guinea University of Technology (UNITECH) is mandated to build capacity in lands, surveying and forestry, involving research and training on GIS, remote sensing and biomass

Development Partners – Development partners have provided vital support to the development of PNG’s forest, environment, land and climate change sectors. Several partners have already committed to provide further support to policy dialogue and REDD+, for example, USAID through its LEAF project. The major bilateral donor to PNG has been AusAID (now incorporated into MFAT), which has con-financed the UN-REDD Programme and provided substantial additional support to the development of the forest sector.

3. Key Risks and Issues Key operational, organizational, political, social and environmental risks are listed and assessed in the UNDP Risk Log Annex I, which includes proposed mitigation measures. One Operational risk is identified, namely that programme inputs (funds, human resources, etc.) are not mobilized in a timely fashion. This is considered important because most of the outputs in the programme logframe are inter-connected so slow mobilization of inputs to one component will slow down the whole programme. Two organizational risks are identified. These are:

Donor coordination is ineffective - lack of donor coordination could restrict the effectiveness of achieving REDD+ Readiness through a partnership of development partners.

Government agencies do not cooperate and coordinate activities effectively – failure of Government agencies, especially PNGFA and OCCD, to work together effectively would slow but would not prevent progress towards REDD+ Readiness. A perception of institutional competition would reduce overall commitment to REDD+

Three political risks are identified. These are:

Sub-national authorities do not share central government’s commitment to REDD - it is inevitable that there will be variation in the level of commitment among sub-national partners; where commitment is low, developing capacity to implement REDD will be slow. Ultimately, it is to be expected that national implementation of REDD will take account of poor progress in some provinces/districts.

Influential stakeholders who could profit from REDD+ take over the national REDD+ Readiness process - it is recognized that some stakeholders could profit significantly from REDD+ and could be tempted to take over the national REDD+ Readiness process. This would compromise the program.

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Commitment of the GOPNG towards implementing REDD does not remain firm - high-level political support for REDD+ is required if Government agencies are to coordinate the development of a national programme.

The remaining risks are classified as Political/Social/Environmental (for details see Annex IV). They are:

Potential to have impacts that could affect women’s and men’s ability to use, develop and protect natural resources and other natural capital assets – inappropriate REDD+ implementation could impact women’s and men’s ability to use, develop and protect natural resources and other natural capital assets.

Potential environmental and social impacts that could affect indigenous people or other vulnerable groups – IPs have historically been marginalized, and consequently have been exposed to social or environmental impacts.

Potential impact on gender equality and women’s empowerment – inappropriate implementation of REDD+ demonstration activities could impact gender equality and women’s empowerment.

Potential impact of currently approved land use plans (e.g. roads, settlements) which could affect the environmental and social sustainability of the project – inconsistencies between REDD+ readiness processes and existing plans could undermine impact and sustainability of results.

Upstream planning processes potentially pose environmental or social impacts or are vulnerable to environmental and social change – historically, not all policy decisions affecting the forest sector in PNG have adequately considered social or environmental impacts.

Potential human rights implications for vulnerable groups – inappropriate REDD+ implementation could adversely affect human rights.

Potential to exclude affected stakeholders from participating in decisions that may affect them.

Potential to affect land tenure arrangements and/or traditional cultural ownership patterns - inappropriate REDD+ implementation could impact land tenure or cultural ownership patterns.

Potential for reforestation undertaken as a pilot REDD+ action to not be aligned with prevailing ecological conditions.

Potential for REDD+ demonstration activities to have adverse impacts within or adjacent to environmentally sensitive areas.

Potential to restrict local livelihood opportunities – implementation of REDD+ activities could limit local-level income-earning opportunities.

B. IMPLEMENTING PARTNER ASSESSMENT

The Office for Climate Change and Development (OCCD) is the Implementing Partner. It is responsible for climate change and REDD+ policy in PNG. A capacity assessment for OCCD is not required as the implementation modality for this project is country office support to NIM. The responsible partner will be PNGFA, which is responsible for production forest areas in PNG, accounting for about 40% of the total forest area.

C. IMPLEMENTATION ARRANGEMENTS Oversight of FCPF Activities. FCPF activities, performance and results will be overseen by a Programme Executive Board (PEB), which will be the same PEB that oversees UN-REDD. This PEB includes

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representatives from the OCCD, PNGFA, civil society organizations, Indigenous Peoples organizations, UN Agencies and major bilateral donors. The PEB will report to the National REDD+ Steering Committee. Management of FCPF Activities. FCPF activities will be managed by the OCCD as implementing partner, with PNGFA as a responsible party. Other partners will be engaged on specific issues of relevance to their mandates, as co-implementation organizations. Administration of FCPF Activities. A PMU within OCCD will be established for this purpose. Staff of the PMU consist of professional and administrative staff hired through the project, and staff seconded from the PNGFA and OCCD. The PMU will report to the National Programme Director, OCCD.

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III. PROPOSED PROJECT RESULTS FRAMEWORK The Results Framework for REDD+ Readiness in PNG is summarized in Table 5, below.

A. PROPOSED OBJECTIVE FCPF funding will be used to contribute to the overall Objective of REDD+ readiness funding in PNG, which is:

To contribute to the development of PNG’s capacity to design a sound national REDD+ strategy, develop and sustain national readiness management arrangements, elaborate REDD+ strategy options, develop the REDD+ implementation framework, assess social and environmental impacts so that, by 2018, PNG is ready to implement policies and measures to reduce emissions from its forests and to enhance removals under the UNFCCC REDD+ mechanism.

B. KEY RESULTS

This objective is being supported also by the UN-REDD and other bilateral partners. Since the UN-REDD Programme is mainly focused on NFMS and FREL/FRL, the FCPF project will focus on establishing capacities for efficient management of REDD+ and the National REDD+ Strategy. Consequently, the following two Outcomes will be pursued:

Outcome 1: Capacities exist for effective and efficient management of REDD+, including full and effective participation of all relevant stakeholders

Outcome 2: The National REDD+ strategy Under Outcome 1, the following outputs will be secured: 1.1. National REDD+ management arrangements An important gap in current progress is the link between the provinces and the national agencies in the facilitation of REDD+ at the sub-national level. PNGFA has begun implementation of REDD+ demonstration activities in five provinces. This R-PP will look into providing complementary support to key activity areas that will be pursued to slowly progress REDD+ implementation. Most important of all will be capacity development at the provincial government level through the assistance of the national government agencies. Attention will be prioritized to the provincial governments, with a view to preparing them well so they can support the management of REDD+ at the community level more effectively and efficiently. Indicative activities are:

Establishment of a National REDD+ Steering Committee

Continued support for the strengthening of REDD+ management between government and other stakeholders. This includes arranging meetings, workshops and facilitating travel for stakeholders from the provinces to attend meetings.

Continued support to the REDD+ TWG and its activities

Capacity building for provincial authorities

Capacity building for non-governmental stakeholders

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1.2. Communications and information sharing systems One of the most important gaps for REDD+ implementation in PNG is community awareness. The government relies on the provincial governments to bridge these gaps within their District and LLG programs. However, the challenge of ensuring an effective outcome in this area has always been the absence of specific REDD+ programs within the LLG which can be implemented within the communities. For this reason, the government has always acknowledged and supported the role of NGOs and CBOs in stepping in to carry out awareness and stakeholder engagement activities within communities. The OCCD and other government agencies like PNGFA have also contributed to this process, but their level of influence has not always measured up with that of NGOs and CBOs in communities. Therefore, communications and information sharing is an important output to secure. Indicative activities include:

Development and implementation of a comprehensive communications strategy

Information sharing with key stakeholders

Support for NGOs and CBOs to assist them in their role in implementing community engagement and participation activities. Focus and attention will be given to those who are currently working in REDD+ communities.

1.3. Stakeholder consultation and participation process One of the fundamental gaps identified within the consultation and participation process is the sustainability of the process at the community level. This process can only be effective if there are mechanisms established within the provinces to ensure its sustainability. This output is closely linked with the previous output, since participation is greatly facilitated if awareness is increased. One of the most effective ways to encourage participation from people within the communities would be through raising awareness through the use of the media. Some training could be provided to key people within the communities to sustain most of these dialogues at the community level, but sustainability of the information and engagement can only be done through the effective use of the media where information feedback is also available. Given the above, and in order to make this process practical and successful over time, there is a need for training, and increasing the role of, the media in the process. Under this sub-component, the government intends to commence with the training of Trainers of Trainers, who can then engage more effectively with communities in each of the provinces. In addition, we intend to increase the role of the media to complement these efforts at the community level. Indicative activities under this outcome include:

Provision of training to the media on REDD+

Provision of training to communities on engagement, including through the media

Development and institutionalization of formal participation mechanisms

Measures to ensure that gender is adequately addressed in REDD+ implementation Under Outcome 2, the following outputs will be secured: 2.1. Assessment of land-use, forest law, policy & governance A few of the outstanding issues identified in this area include the need for increased public awareness of the existing land regulations, as well as better technical understanding of deforestation and forest degradation drivers.

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Efforts under this output will be focused on policy issues surrounding land ownership, allocation and management. This task is critical to any efforts undertaken by the communities to understand how they can best manage and use their land when it comes to addressing the drivers of deforestation. Indicative activities under this output include:

Completion of assessment of national circumstances

Studies on drivers of deforestation including REDD+ benefits tailored towards addressing these drivers

Increasing local community awareness on Existing Land Laws and Regulations

Developing measures to strengthen forest law enforcement

Demonstration activities in support of land use, forest law, policy and governance

Presentation of policy options, including institutional responsibilities, to the National REDD+ Steering Committee

2.2. REDD+ strategy options Given that land is owned and managed by the forest owners in PNG, as well as heavily deforested for subsistence farming, strategy options can only become tangible, implementable outcomes with the full engagement of forest-dependent communities. Following the preparation of the CCDS, under which various abatement options were developed, conclusions were presented in the provincial consultations for further views and comments. During this process, the government in 2010 discovered that prior to the implementation of the REDD+ strategy options, sustainable livelihoods options and co-benefit issues must be addressed. For the sustainable livelihoods option, it is essential that PNG understands how communities use their forests, including their ongoing role in deforestation and degradation. Communities have shown considerable interest in the conservation of large forested areas as long as sustainable livelihood options are also being considered. For co-benefits, the issue would be very complicated given the complexity of defining co-benefits of REDD+ amongst different communities. Therefore, the government has decided that this would need some time and more in-depth research and therefore is keen on allocating a maximum of two Papua New Guinean research scholarships for this. Indicative activities under this output include:

Conduct a review of co-benefits from REDD+

Capacity building to increase the number of national experts

Conduct a study on alternative livelihood options for forest-dependent communities

Presentation of policy options, including institutional responsibilities, to the National REDD+ Steering Committee

Demonstration activities in support of REDD+ policy options

Develop PNG's National REDD+ Strategy 2.3. REDD+ implementation framework Two important issues to be addressed are the legal framework for REDD+ and the Benefit Sharing Distribution System. Indicative activities under this output include:

Legislative and regulatory enhancement

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Development of a benefit sharing mechanism

Analysis of options for development of a National REDD+ Fund

Demonstration activities in support of implementation framework

Presentation of policy options, including institutional responsibilities, to the National REDD+ Steering Committee

2.4. Social and environmental impacts addressed, including grievance mechanism FCPF funding will be used to address gaps in the development of a national system of safeguards, including the establishment of a grievance mechanism for REDD+. Indicative activities under this output include:

Training to line agencies and all key stakeholders on safeguards

Refinement and finalization of framework of social and environmental principles and indicators, monitoring requirements, management, in consultation with key stakeholders and civil society

Development of a REDD+ grievance mechanism

Analysis and identification of measures to improve REDD+ governance

Legal reform, if necessary, to address and respect REDD+ safeguards within the REDD+ implementation strategies

Demonstration activities in support of measures to address social and environmental risks

Presentation of policy options, including institutional responsibilities, to the National REDD+ Steering Committee

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Table 5 – PNG R-PP Results Framework This project will contribute to achieving the following Country Programme Outcome as defined in CPAP or CPD: By 2018, Government and civil society have enhanced capacity to implement biodiversity conservation, low carbon and climate resilient development initiatives for environmental sustainability and improved livelihood to reduce the vulnerability of women, girls, men and boys to disaster risks

Country Programme Outcome Indicators: Increased number of government initiatives to promote environmental sustainability and climate resilience and reduce vulnerabilities

Indicator Baseline Targets End of Project

Source of verification Risks and Assumptions

Project Objective50 (equivalent to output in ATLAS)

Submission of all required document under the Warsaw Framework

No documents submitted

By the end of 2018, PNG has submitted all documents required to trigger results-based payments under the Warsaw Framework

Submissions to the UNFCCC

Effective inter-agency cooperation

Warsaw Framework demonstrated to be effective in triggering results-based payments

Outcome 1 Capacities exist for effective and efficient management of REDD+, including full and effective participation of all relevant stakeholders

REDD+ policy options efficiently reviewed and adopted

Stakeholders express satisfaction with level of engagement

No REDD+ communication and consultation system in place

In regional assessment, 77% of stakeholders were “not at all” or “somewhat satisfied” with level of engagement

By year 4, communications and consultations systems reviewed and adopted

By year 4, at least 50% of all stakeholders are “satisfied” or “very satisfied” with level of engagement

NRSC minutes

Regional assessment or national assessment

Meeting Minutes of Provincial Climate Change Committee Meetings

There is broad acceptance of the need for a NRSC and high level commitment to its operations

Sampling strategy allows accurate comparisons

Subnational government actors support mainstreaming of REDD+ in national development planning and budgeting processes

Output 1.1: National REDD+ Management Arrangements

Effective operation of national and provincial coordination mechanisms REDD+ TWG meetings

Provincial focal points consider that their restructuring initiatives have integrated REDD+

Coordination meetings held irregularly

REDD+ not integrated in provincial development plans

By mid-2015 meetings are held regularly

By year 4, at least 4 provinces report that REDD+ has been integrated

Technical Working Group and coordination meeting minutes

Survey of Provincial REDD+ related activities

REDD+ remains a high priority for all agencies involved

Output 1.2: Communications and Information Sharing

Communications materials, including website and Facebook

OCCD website is not very active; no official Facebook page

By end-2015, a communication strategy is formulated for implementation

Development and dissemination of communication

Insufficient human capacity to provide outreach support during time of implementation

50 Objective (Atlas output) monitored quarterly ERBM

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systems

page, developed and disseminated

Communication strategy developed and implemented

Limited REDD+ specific communication materials for awareness, education and advocacy available

Average awareness over 8 stakeholder groups = 65%

National REDD+ website launched and users tracked

Facebook page active; by year 4, at least 30 communications products produced

By year 4, average awareness = 75%

materials and knowledge products

Survey

Geographical and communications infrastructure challenges limits REDD+ awareness, education and advocacy

Changes in management of certain organisations may delay engagement with them

Output 1.3: Consultation and Participation

REDD+ Training implemented

Effective stakeholder engagement mechanism in place

Training manual developed but needs revision and implementation

No mechanism in place

By year 4, at least 400 people have been trained in provinces

By end-2015, mechanism established; by year 4 stakeholders report it is working effectively

By year 4, a pool of trained trainers established

Training reports

Programme reports; survey of stakeholders

Suitable trainers can be identified and trained

Stakeholders willing to allocate time to engage on REDD+

Outcome 2. National REDD+ Strategy

National REDD+ Strategy formulated

No document prepared

By end of 2016, draft National REDD+ Strategy completed; by end of 2018, endorsed by all stakeholders

Draft National REDD+ Strategy

All stakeholders engage constructively

Political situation does not prevent approval of Strategy

Output 2.1: Assessment of Land Use, Land Use Change, Forest Law, Policy:

# of assessments completed

# of LULUCF policy options for REDD+ produced and adopted

Initial assessments on land use/forest cover

No policy options drafted

By end-2016, new or revised assessments completed

By end-2016, policy options presented to NRSC for adoption

Published Reports, presented and launched

Policy options document submitted

Constraint of capacity to carry out LULUCF and forestry law and policy assessments

Overlapping mandates of different government agencies delays endorsement of LULUCF policy options for REDD+

Output 2.2: REDD+ Strategy Options:

Policy options developed and adopted

# of alternative livelihood options identified

No overview

No alternative livelihood options prepared

By end-2016, policy options presented to NRSC for decision

By mid-2016, alternative livelihood assessment completed

Policy options document submitted

Reports

Capacity constraints for developing strategy options and alternative livelihood options

Stakeholder engagement is effective

Output 2.3: REDD+ Implementation Framework

NRF options reviewed and adopted

No discussion on NRF

No BDS options

By end-2015, options paper produced; by end-2016, approved option identified; by end-2018 NRF

Options reports; programme reports

Capacity constraints to develop a REDD+ implementation framework

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Benefit Distribution System approved

Other policy options reviewed and adopted

developed

No options prepared

established

By end-2016, BDS designed; by end-2018, BDS established

By end-2016, policy options presented to NRSC for decision

Options reports; programme reports

Policy options document submitted

Broad stakeholder engagement

Output 2.4: Social and Environmental Impacts addressed, including grievance mechanism

Social and Environmental Safeguards identified and endorsed

SESA implemented and ESMF developed

Grievance mechanism established

Trials of FPIC process completed

Safeguard gaps identified

No SESA or ESMF

No grievance mechanism

FPIC guidelines complete

By end-2015, FPIC trials completed

By mid-2016, ESMF completed

By end-2016, SIS operational

By end-2018, grievance mechanism operational

FPIC field trials reports

ESMF and SESA reports

Report on the SIS

Grievance mechanism report

Capacity constraints to analyse and identify safeguard gaps

Commitment to respect REDD+ safeguards remains strong

Project Management Efficiency of project management

No PMU following closure of UN-REDD National Programme

Annual and quarterly workplans prepared on time; PEB meetings held regularly; fund disbursement meets targets

Programme reports, PEB minutes, etc.

Prompt recruitment of personnel

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IV. OVERALL RISK RATINGS The REDD+ Readiness process presents a high level of risk, as it depends directly on a series of institutional changes and a conducive governance environment. A successful REDD+ mechanism involves important changes to the existing institutional framework and touches sensitive issues, such as land tenure rights and revenue distribution across government levels. In addition, the program has high visibility internationally, due to the high stakes of REDD+ for various stakeholders (including vulnerable forest-dependent communities). The highest ranked risks from the UNDP Risk and Issues Log (Annex I), based on a combination of probability and impact, are:

Risk Score Mitigation measure

Government agencies do not cooperate and coordinate activities effectively

9

A PNG REDD+ Steering Committee will be explicitly established to mitigate this risk. The NRSC’s decision-making process will ensure adequate coordination and consensus between Government agencies. It will be critical that technical advisors under the FCPF coordinate with both PNGFA and OCCD throughout implementation and avoid perceptions of bias.

Downstream activities that potentially pose environmental and social impacts or are vulnerable to environmental and social change

9

The project document will be screened for social and environmental impacts using UNDP’s Social and Environmental Screening Procedure (SESP) and appropriate mitigation measures will be put in place within the project document, including a fully integrated SESA/ESMF, which will include further and more in depth consideration of the social and environmental impacts in the context of REDD+ implementation.

Indigenous stakeholders are not adequately informed of project activities

8

A SESA will be developed that will include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES. A comprehensive approach will be taken by implementing partners in engaging stakeholders in field-level activities, based on their extensive experience and knowledge of communities’ potential project sites and lessons learned through pilot activity implementation through UN-REDD and other REDD+ initiatives. All activities will be in compliance with the Cancun REDD+ safeguards when implementing REDD+ actions.

Commitment of the GOPNG towards implementing REDD+ does not remain firm

8

Achieving high-level political support for REDD+ is contingent on successful progress of the international negotiations, and establishment of mechanisms to reward developing countries and/or people in developing countries for reductions in deforestation. High-level political support for REDD+ in PNG is dependent on the success of the already-established pilot projects. Support will be provided to selected pilots by UNDP.

Potential to restrict local livelihood opportunities

7

Extensive stakeholder engagement, including FPIC, will be undertaken (and have already been initiated through the UN-REDD National Programme) prior to the implementation of any activities. REDD+ demonstration activities designed through the project will go through many stages of development, consultation and refinement before moving to implementation. A SESA will be developed that will include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES.

Influential stakeholders who could profit from REDD+ take over the national REDD+ Readiness process

6 Empowering the PNG REDD+ Steering Committee and quickly demonstrating progress should reduce the risk of other influential stakeholders hijacking the process.

Upstream planning processes potentially pose environmental or social impacts or are vulnerable to environmental and social change

6

Project document will be screened for social and environmental impacts using UNDP’s Social and Environmental Screening Procedure (SESP) and appropriate mitigation measures will be put in place within the project document, including a fully integrated SESA/ESMF, which will include further and more in depth consideration of the social and environmental impacts in the context of REDD+

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implementation.

Potential for variable impacts on women and men, different ethnic groups, social classes

6

The project document will be screened for social and environmental impacts using UNDP’s Social and Environmental Screening Procedure (SESP) and appropriate mitigation measures will be put in place within the project document, including a fully integrated SESA/ESMF, which will include further and more in depth consideration of the social and environmental impacts in the context of REDD+ implementation. In addition, the REDD+ TWG will promote active engagement of various vulnerable groups, which will facilitate and promote a high level of consideration of potential social and environmental impacts.

Potential human rights implications for vulnerable groups

6

The project document will be screened for social and environmental impacts using UNDP’s Social and Environmental Screening Procedure (SESP) and appropriate mitigation measures will be put in place within the project document, including a fully integrated SESA/ESMF, which will include further and more in depth consideration of the social and environmental impacts in the context of REDD+ implementation. In addition, the REDD+ TWG will promote active engagement of various vulnerable groups, which will facilitate and promote a high level of consideration of potential social and environmental impacts.

Potential to significantly affect land tenure arrangements and/or traditional cultural ownership patterns

6

Project document will be screened for social and environmental impacts using UNDP’s SESP and appropriate mitigation measures will be put in place within the project document, including a fully integrated SESA/ESMF, which will include further and more in depth consideration of the social and environmental impacts in the context of REDD+ implementation. In addition, the REDD+ TWG will promote active engagement of various vulnerable groups, which will facilitate and promote a high level of consideration of potential social and environmental impacts. In addition, the REDD+ TWG will promote active engagement of various vulnerable groups, which will facilitate and promote a high level of consideration of potential social and environmental impacts.

Displacement of indigenous peoples through access restrictions to lands

6

REDD+ demonstration activities designed through the project will go through many stages of development, consultation and refinement before moving to implementation. A SESA will be developed that will include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES. Participation in demonstration activities will be subject to FPIC and on a voluntary basis by local/indigenous people. In addition, the REDD+ TWG will promote active engagement of various vulnerable groups, which will facilitate and promote a high level of consideration of potential social and environmental impacts.

Beyond the specific mitigation measures identified in the table above, these risks will be mitigated through an extensive consultation and participation process and through the SESA. An extensive consultation and participation plan is a key component of the readiness program funded by the grant, and adequate budgeting has been set aside for this purpose. Through the consultation and outreach process, which includes the SESA, relevant government and non-government stakeholders will be involved throughout the readiness process. In addition, the SESA will identify institutional gaps and challenges and will formulate policy options. Activities will continue to be consulted with government and other stakeholder groups to guarantee relevance. A number of measures to mitigate risks related to procurement and financial management will be put in place. These include the following actions:

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i) The appointment of a financial management consultant or dedicated staff to assist the Project Implementing Unit in handling the financial management aspect of the project;

ii) The inclusion of the project’s activities in the regular audits commissioned by the UNDP Country Office;

iii) Training by a UNDP Financial Management Specialist on financial management; iv) Procurement supervision will be undertaken by UNDP; v) The PMU will prepare a Project Management Manual that includes a Procurement Section,

within two months after countersignature of the grant agreement. Policy recommendations may affect indigenous peoples and other forest dependent communities. The SESA will assess these potential impacts, formulate alternatives and mitigation strategies and enhance the decision-making process around the design of the national REDD+ framework. The SESA will be complemented by an Environmental and Social Management Framework (ESMF), which will provide a framework to manage and mitigate the potential environmental and social impacts related to specific projects and activities (including investments and carbon finance transactions, in the context of the future implementation of REDD+), with the aim of ensuring compliance with UNDP social and environmental standards, the FCPF Common Approach, and a REDD+ strategy that addresses and respects the Cancun Safeguards. The ESMF recommended safeguard instruments would apply to investments financed by UNDP and by other Donors willing to use the same safeguard policies.

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V. UNDP QUALITY ASSURSANCE INPUTS Multiple UNDP technical support missions took place from 2009 to 2014 with the objective of providing guidance for the preparation of, and subsequent implementation of the UN-REDD National Programme and the R-PP, including consultation with stakeholders. The following are mandatory requirements:

UNDP policies and procedures (including UNDP’s Social and Environmental Standards) and operational guidance must be applied during the implementation of the project;

If changes are made at the output or activity level, they may be agreed by the Steering Committee/PEB. Before such changes are contemplated they must be discussed with and approved by the Regional Technical Advisor;

If changes are proposed at the Outcome level they must be discussed with the UNDP/REDD+ Principal Technical Advisor before being approved by the Regional Technical Advisor;

The project is subject to a final evaluation conducted according to Terms of Reference established by UNDP;

Funds will be audited in accordance with UNDP Financial Regulations and Rules and audit policies;

A mid-term review may be undertaken if requested by UNDP’s Environment and Energy Group. COMPLIANCE WITH THE COMMON APPROACH TO ENVIRONMENTAL AND SOCIAL SAFEGUARDS Implementation will ensure compliance with the FCPF Common Approach, including application of the following policies, procedures and guidance:

Social and Environmental Standards (SES): The objectives of the Standards are to: (i) strengthen the social and environmental outcomes of UNDP projects; (ii) avoid adverse impacts to people and the environment affected by projects; (iii) minimize, mitigate, and manage adverse impacts where avoidance is not possible; (iv) strengthen UNDP and partner capacities for managing social and environmental risks; and (v) ensure full and effective stakeholder engagement, including through a mechanism to respond to complaints from project-affected people. For more information, see the Social and Environmental Standards.

Social and Environmental Screening Procedure (SESP): The Social and Environmental Screening Procedure (SESP) [formerly known as Environmental and Social Screening Procedure (ESSP)] was incorporated into UNDP’s Programme and Operations Policies and Procedures (POPP) in 2012 to further enhance social and environmental sustainability of UNDP projects. It is mandatory for all proposed projects with a budget of $500,000 or more. The screening process helps determine if there are any potential impacts and how these should be addressed, providing UNDP staff with a set of tools and guidance to strategically design and implement quality projects. The SESP has been revised in the last few months to align with the newly approved Standards. For more information, see the Social and Environmental Screening Procedure (SESP).

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UNDP’s Stakeholder Response Mechanism (SRM): The SRM provides an additional, formal avenue for stakeholders to engage with UNDP when they believe that a UNDP project may have adverse social or environmental impacts on them; they have raised their concerns with Implementing Partners and/or with UNDP through standard channels for stakeholder consultation and engagement; and they have not been satisfied with the response. The SRM provides a way for UNDP to address these situations systematically, predictably, expeditiously, and transparently. Through the SRM, UNDP Country Offices, Regional Bureaux and Service Centers and Headquarters collaborate in a thorough, good faith effort to resolve outstanding concerns to the satisfaction of all parties, and to document the results to ensure accountability and promote organizational learning. For more information on the SRM, see the UNDP’s Stakeholder Response Mechanism: Overview and Guidance.

UNDP’s Social and Environmental Compliance Review: In October 2012 the UNDP Administrator revised the Charter of the Office of Audit and Investigations (OAI) to include the mandate to investigate UNDP’s compliance with applicable social and environmental policies and procedures. In February 2013 OAI established the Social and Environmental Compliance Unit (SECU) to respond to complaints that UNDP may not be meeting its social and environmental commitments during the interim phase. The main purpose of the compliance review is to investigate alleged violations of UNDP’s social and environmental policies and procedures. For more information, see the Draft Standard Operating Procedures for UNDP's Social and Environmental Compliance Unit. UN-REDD/FCPF Guidance on Establishing and Strengthening Grievance Redress Mechanisms: As outlined in line with the R-PP template, a national feedback and grievance redress mechanism needs to be effectively available, and if necessary strengthened, as part of the country's REDD+ institutional arrangements. Such a mechanism needs to be available to REDD+ stakeholders from the earliest stages of R-PP implementation in order to facilitate handling of any request for feedback or complaint by any REDD+ Readiness stakeholders, with particular attention to providing access to geographically, culturally or economically isolated or excluded groups. The UN-REDD Programme, together with FCPF have developed a guidance note outlining an approach to strengthening in-country capacity for grievance resolution activities to be carried out during the Readiness phase. For more information see: FCPF/UN-REDD Guidance Note for REDD+ Countries: Establishing and Strengthening Grievance Redress Mechanisms Guidelines on Stakeholder Engagement for REDD+ Readiness with a Focus on the Participation of Indigenous Peoples and Other Forest-Dependent Communities: These joint FCPF / UN-REDD Programme guidelines cover the key elements of effective stakeholder engagement in the context of REDD+ readiness. They outline: 1) Relevant policies on indigenous peoples and other forest-dependent communities; 2) Principles and guidance for effective stakeholder engagement; and 3) Practical “how-to” steps on planning and implementing effective consultations. UN-REDD Programme Guidelines on Free, Prior and Informed Consent (FPIC): A key component of effective stakeholder engagement and consultation is the right to free, prior, and informed consent (FPIC). FPIC is also critical to addressing and respecting Cancun Safeguards (c) and (d). The UN-REDD Programme has outlined a normative, policy and operational framework for UN-REDD Programme partner countries to seek FPIC. This will in turn support partner countries to comply with UN-REDD Programme guidelines and principles, including the requirement to undertake broad consultations and seek consent at the community level as and when appropriate, as determined by the partner country in consultation with relevant rights-holders in line with the guidance provided in the UN-REDD Programme Guidelines on FPIC.

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Strategic Environmental and Social Assessment and Environmental and Social Management Framework (SESA/ESMF), outlined in further detail in Annex II below.

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VI. ASSESSMENT SUMMARY

A. TECHNICAL Taking account of the contributions made by other REDD+ readiness initiatives, the proposed project is considered technically feasible. Risks to feasibility arise primarily from poor inter-agency coordination, and the magnitude of required capacity building. Lessons learned in particular from the UN-REDD Programme will mitigate these risks. For example, significant revisions in UN-REDD implementation arrangements have overcome many of the constraints encountered early in implementation, and the further revised implementation arrangement proposed for the R-PP will further reduce the risk. The risk of over-ambitiousness in the results framework has been mitigated through a thorough consultation process which has, for example, cut some proposed activities and sought additional funding sources for those activities. Furthermore, the PEB has proved to be very effective in monitoring the UN-REDD Programme to ensure that available resources match proposed activities, and will serve the same role for the R-PP.

B. FINANCIAL MANAGEMENT The Project Manager will be responsible for the Outputs to be delivered by the respective agencies on time, on scope and on budget, as well as for the application of all UNDP administrative and financial procedures and efficient use of funding. A Project Management Unit (PMU), will be housed in the OCCD office in order to provide technical advisory support and assistance to the Project Manager in ensuring effectiveness and efficiency of the project implementation. Members of the PMU to be partially or completely funded by the project include the Project Manager, International Technical Advisor, Communications Officer, Stakeholder Engagement Officer and Finance, Procurement and Administration Assistant. The Finance, Procurement and Administration Assistant will be responsible for:

Reviewing government finance and procurement processes to assess how these can be used in conjunction with the NIM guidelines to ensure compliance with the NIM guidelines;

Developing a guidance manual for procurement, inventory and financial management;

Ensuring the establishment of an effective inventory system for all equipment purchased by the programme;

Providing oversight of financial management and procurement process processes to ensure they are conducted in accordance with UNDP guidelines;

Ensuring that petty cash transactions are effectively maintained. This includes writing of receipts, preparation of payment request form, receipt and disbursement of cash and clearance of advances;

Preparing project financial reports and submitting to the Resident Representative;

Entering financial transactions into the computerised accounting system;

Reconciling all balance sheet accounts and keeping a file of all completed reconciliation.

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The project will be also subjected to the annual Audit, including interim audits or spot check in between following UNDP Financial Regulations and Rules and applicable Audit policies. Findings are referred to the project team for response and appropriate remedial action.

C. PROCUREMENT UNDP’s procurement rules and processes will apply. A Finance, Procurement and Administration Assistant will be hired with project funds to ensure efficient and effective implementation of the PNG REDD+ Programme through the development of effective systems and the building of staff capacity. Specifically the Assistant’s role will focus on:

Providing support to Programme Planning and Coordination

Developing, implementing and improving Accounting and Reporting Procedures

Ensuring strong financial and operational control

Conducting Bank reconciliation

Developing Procurement processes and Inventory Register

Supporting programme administration

Providing Oversight and Training to implementing agencies

D. SOCIAL AND ENVIRONMENTAL (INCLUDING CONSULTATION, PARTICIPATION, DISCLOSURE AND SAFEGUARDS)

The FCPF Readiness Preparation grant complies with UNDP safeguard policies regarding the management of environmental and social impacts. This grant will, in part, support the country’s activities to identify the potential risks associated with REDD+ and mitigation options. In order to do this, the UNDP will apply a Strategic Environmental and Social Assessment (SESA) to integrate key environmental and social considerations into REDD+ Readiness by combining analytical and participatory approaches. The SESA allows: (i) social and environmental considerations to be integrated into the REDD+ Readiness process, in particular the REDD+ strategy; (ii) stakeholder participation in identifying and prioritizing key issues, assessment of policy, institutional and capacity gaps to manage these priorities and recommendations, and disclosure of findings in the REDD Country’s progress reports on Readiness preparation; and (iii) an Environmental and Social Management Framework (ESMF) to be put in place to manage environmental and social risks and to mitigate potential adverse impacts. SESA draft ToR are shown in Annex II. D.1. Social (including Safeguards) Key assessments of social risks and the Country’s capacity to manage these risks will be undertaken by the country through a SESA, which is mainstreamed in the R-PP. With support of international and national consultants envisaged in the SESA Tor (Annex II), sufficient capacity exists in the PNGFA and OCCD to conduct a SESA and produce an ESMF. D.2. Environmental (including Safeguards) Key assessments of environmental risks and the Country’s capacity to manage these risks would be undertaken by the country through a SESA, which is mainstreamed in the R-PP. As for social risks, with support of international and national consultants envisaged in the SESA TOR (Annex II), sufficient capacity exists in the PNGFA and OCCD to conduct a SESA and produce an ESMF.

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D.3. Consultation, Participation and Disclosure

i. Experience to Date The formulation and implementation of the PNG UN-REDD National Programme and the formulation of the R-PP provided the major opportunities for consultation and participation to date. The UN-REDD National Programme document went through two cycles of validation, and the R-PP was also subject to validation.

ii. Proposal Going Forward The R-PP includes a detailed Consultation and Participation Plan, which incorporates participatory mechanisms to ensure involvement of Indigenous Peoples and forest communities in consultation processes. This plan builds on the existing structures at national, local and community level to enhance consultation and participation. The Consultation and Participation Plan provide for disclosure of documents as well as feedback mechanisms whereby stakeholders are able to express their opinions and grievances, seek redress, and generally influence the preparation and implementation of REDD+ in the Country. The main safeguard instrument to be applied is the SESA. Part of the SESA process involves the preparation of an ESMF. The ESMF may evolve and be updated over time when new REDD+ strategy options, projects or activities (including investments) and/or policies or regulations are identified during the implementation of REDD+. The SESA addresses the key environmental and social issues associated with the analysis and preparation of REDD+ strategy options as well as REDD+ projects, activities (including investments), policies and regulations. In this manner SESA can ensure compliance with World Bank’s environmental and social safeguards. The SESA process requires that the selection of REDD+ strategy options should take into account the country’s institutional and capacity constraints for managing environmental and social risks, as well as the potential environmental and social impacts associated with these strategy options. Any identified gaps to manage these risks and potential impacts in relation to relevant the Cancun Safeguards, UNDP Social and Environmental Standards and the FCPF Common Approach should be identified along with the strategy options to feed into the preparation of the ESMF. The ESMF should provide a framework to manage and mitigate the potential environmental and social impacts related to specific projects and activities (including investments and carbon finance transactions, in the context of the future implementation of REDD+). The ESMF will be structured to contain subject-specific frameworks addressing the relevant requirements of the applicable environmental and social safeguard policies including, but not necessarily limited to, a Resettlement Policy Framework; Process Framework; and Indigenous Peoples Planning Framework. In implementing the R-PP, the UN-REDD Stakeholder Engagement Guidance and FPIC Guidance will be applied. UNDP’s Accountability Mechanism will also be applied.

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ANNEX I: UNDP RISK AND ISSUES LOG The UNDP Risks and Issues log is shown in the matrix below.

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# Description Date Identified

Type Impact & Probability Counter measures / management response

Owner Submitted /updated by

Last Update Status

1

Commitment of the GOPNG towards implementing REDD does not remain firm

R-PP formulation (2011-2012)

Political

High-level political support for REDD+ is required if Government agencies are to coordinate the development of a national programme. Probability = 2; Impact = 4; Risk = 8

Achieving high-level political support for REDD+ is contingent on successful progress of the international negotiations, and establishment of mechanisms to reward developing countries and/or people in developing countries for reductions in deforestation. High-level political support for REDD+ in PNG is dependent on the success of the already-established pilot projects. Support will be provided to selected pilots by UNDP.

UNDP CO will monitor

Assessment Note author

September 2012

Stable

2

Government agencies do not cooperate and coordinate activities effectively

R-PP formulation (2011-2012)

Organisational

Failure of Government agencies, especially PNGFA and OCCD, to work together effectively would slow but would not prevent progress towards REDD+ Readiness. A perception of institutional competition would reduce overall commitment to REDD+ Probability = 3; Impact = 3; Risk = 9

The PNG REDD+ Steering Committee will be explicitly established to mitigate this risk. The NRSC’s decision-making process ensures adequate coordination and consensus between Government agencies. It will be critical that technical advisors under the FCPF coordinate with both PNGFA and OCCD throughout implementation and avoid perceptions of bias.

PNG REDD+ Steering Committee and UNDP will monitor

Assessment Note author

September 2012

Stable

3 Donor coordination is ineffective

R-PP formulation (2011-2012)

Organisational

Lack of donor coordination could restrict the effectiveness of achieving REDD+ Readiness through a partnership of development partners. Probability = 1; Impact = 2; Risk = 2

Donor governance structures include representatives from other key donors. GOPNG and development partners are currently examining options for an integrated governance structure for all donor-supported interventions

UNDP CO and UNDP Regional Advisor

Assessment Note author

September 2012

Improving

4

Sub-national authorities do not share central government’s commitment to REDD

R-PP formulation (2011-2012)

Political

It is inevitable that there will be variation in the level of commitment among sub-national partners; where commitment is low, developing capacity to implement REDD will be slow. Ultimately, it is to be

Capacity development in provinces under Outcome 1 will take account of variation in provincial capacities, awareness and support. Linkage to existing pilot project activities needs to be taken into account.

Technical Advisors will be responsible for reporting to UNDP CO on any early indications

Assessment Note author

September 2012

Stable

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expected that national implementation of REDD will take account of poor progress in some provinces/districts Probability = 2; Impact = 2; Risk = 4.

of lack of commit-ment at provincial level

5

Programme inputs (funds, human resources, etc.) are not mobilized in a timely fashion

R-PP formulation (2011-2012)

Operational

Most of the outputs in the programme logframe are inter-connected so slow mobilization of inputs to one component will slow down the whole programme. Probability = 2; Impact = 2; Risk = 4

Building on structures and processes established under UN-REDD, and rapid recruitment of technical advisors should reduce the probability and impact of this risk

Technical advisors will be responsible for reporting to UNDP CO on potential delays in mobilizing inputs

Assessment Note author

September 2012

Improving

6

Influential stakeholders who could profit from REDD+ take over the national REDD+ Readiness process

R-PP formulation (2011-2012)

Political

It is recognized that some stakeholders could profit significantly from REDD+ and could be tempted to take over the national REDD+ Readiness process. This would compromise the program. Probability = 1; Impact = 3; Risk = 6.

Empowering the PNG REDD+ Steering Committee and quickly demonstrating progress should reduce the risk of other influential stakeholders hijacking the process.

FA and Program Coordinator will be responsible for monitoring

Assessment Note author

September 2012

Stable

7

Upstream planning processes potentially pose environmental or social impacts or are vulnerable to environmental and social change

Social/ environmental screening (Aug. 2012)

Political/social and environmental

Historically, not all policy decisions affecting the forest sector in PNG have adequately considered social or environmental impacts Probability = 2 Impact = 3 Risk = 6

Empowering the PNG REDD+ Steering Committee and quickly demonstrating progress will build and maintain confidence in and ownership of REDD+ processes at the highest level

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

8

Downstream activities that potentially pose environmental and

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Past and current land management practices have not always been consistent with national policies, and

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This promotes

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

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social impacts or are vulnerable to environmental and social change

have had adverse social or environmental impacts Probability = 3 Impact = 3 Risk = 9

active engagement of non-governmental stakeholders, which will promote a high level of consideration of potential social and environmental impacts

9

Potential environmental and social impacts that could affect indigenous people or other vulnerable groups

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

IPs have historically been marginalized, and consequently have been exposed to social or environmental impacts Probability = 2 Impact = 2 Risk = 4

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This promotes active engagement of non-governmental stakeholders including Indigenous Peoples, which will help to safeguard against potential negative impacts.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Improving

10

Potential impact on gender equality and women’s empowerment

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could impact gender equality and women’s empowerment Probability = 2 Impact = 2 Risk = 4

A gender balance in REDD+ Readiness governance structures will be actively sought. A dedicated gender advisor will be recruited.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

11

Potential for variable impacts on women and men, different ethnic groups, social classes

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could have variable impacts on different groups Probability = 2 Impact = 3 Risk = 6

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This promotes active engagement of various vulnerable groups, which will promote a high level of consideration of potential social and environmental impacts

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

12

Potential human rights implications for vulnerable groups?

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could adversely affect human rights Probability = 2 Impact = 3 Risk = 6

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This will help to reduce the potential for human rights impacts.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

13

Potential to have impacts that could affect women’s and men’s ability to use, develop

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could impact women’s and men’s ability to use, develop and protect natural resources

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This promotes active engagement of non-

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

53

* Probability (P) x Impact (I) = risk; P and I are ranked from 1 to 5 (1 = low; 5 = high); lowest risk is 1, highest risk is 25

and protect natural resources and other natural capital assets

and other natural capital assets Probability = 1 Impact = 2 Risk = 2

governmental stakeholders, which will help to reduce the risk of negative impacts in access to natural resources.

14

Potential to significantly affect land tenure arrangements and/or traditional cultural ownership patterns

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could impact land tenure or cultural ownership patterns Probability = 2 Impact = 3 Risk = 6

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This ensures active engagement of vulnerable groups, which will reduce risks of impacts on land tenure or traditional/cultural ownership.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

15

Potential impact of currently approved land use plans (e.g. roads, settlements) which could affect the environmental and social sustainability of the project

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inconsistencies between REDD+ readiness processes and existing plans could undermine impact and sustainability of results Probability = 2 Impact = 2 Risk = 4

Governance structures for REDD+ Readiness in PNG will strengthen coordination between central and local (provincial) levels, thus reducing this risk.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

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ANNEX II: DRAFT TERMS OF REFERENCE FOR THE STRATEGIC ENVIRONMENTAL AND SOCIAL ASSESSMENT FOR THE REDD+ MECHANISM IN PNG 1. Introduction Reducing Emissions from Deforestation and Forest Degradation (REDD+) is a proposed global mechanism to mitigate climate change, while mobilizing financial resources for socio-economic development in forest countries. The Forest Carbon Partnership Facility (FCPF), facilitated by the World Bank, brings together 50 donor and forest country participants with the aim of supporting the forest countries in the preparation and subsequent implementation of their REDD+ Strategies. PNG is a key participant country in the FCPF. The Government of PNG is currently implementing its Readiness Preparation Proposal (R-PP) with regards to the REDD+ Readiness phase, and has requested a FCPF Readiness Preparation Grant to support the design of its REDD+ Strategy. This Strategy aims to control deforestation and degradation in order to reduce greenhouse gas emissions into the atmosphere. Strategic Environmental and Social Assessment (SESA) is a key component of PNG’s R-PP to the FCPF. This component is essential for both avoiding negative impacts (“do no harm”) and enhancing positive or “additional” REDD benefits, especially in terms of social or livelihood benefits, governance and wider environmental or biodiversity benefits. The SESA is part of the phased approach of the FCPF Readiness Mechanism (preparation of the R-PP and subsequent Readiness Preparation for REDD+). 2. Objectives The overall objective of these Terms of Reference (ToR) is to ensure that SESA can be applied to integrate environmental and social considerations into PNG’s REDD+ readiness process in a manner consistent with PNG’s environmental laws and regulations and the UNDP’s environmental and social safeguard policies. In accordance with FCPF guidelines, special consideration should be given to livelihoods, rights, cultural heritage, gender, vulnerable groups, governance, capacity building and biodiversity. 3. Drivers of deforestation and forest degradation A model employed by Shearman et al. (2008) estimates annual rates of deforestation and degradation attributable to individual drivers, including population increase, timber export volumes, oil palm exports and forest fires (see Figure 7). The model indicates that change rates remained relatively low (around 0.4% per year) prior to 1980; thereafter, rates increased steadily as logging accelerated and human populations and associated demand for food increased. By 1997-99, the combined impacts of high logging rates and El Nino related fires helped to increase combined deforestation and degradation to an estimated 1.76% per annum. By 2002, the model indicates rates of deforestation and degradation of 0.77% and 0.64% respectively. Finally, the authors note that the change rates for the period covered by the model (1972-2002) “...are almost certainly under-estimates of the rates of change since 2002.” While Shearman’s methodology and conclusions have subsequently been challenged as overestimates by Filer et al. (2009), no other national level estimates exist at present. The lack of a comprehensive analysis of the drivers of deforestation and forest degradation is a major gap in the readiness process. While further studies are needed, the main drivers of deforestation and forest degradation appear to be large-scale selective logging and subsistence and commercial agriculture, and to a lesser extent mining activities and forest fires.

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Figure 5 – Estimation of annual rates of forest change (%/yr) for each of the identified drivers of change over the period 1972-2002 (Shearman et. al., 2008).

REDD+ strategy options The R-PP suggests a preliminary REDD+ strategy based on support to the implementation of three key long-term management plans of the GOPNG, rather than establishing parallel or competing plans and management structures for PNG‘s forests. The three key plans are:

PNG‘s National Forest Programme (NFP, 2010), which is a 20-year the long term national forest management plan for the sector (2010-2030). The NFP was developed through a 2-year multi-stakeholder consultation process (2008-2010) supported by Danida and FAO, and is widely accepted as the primarily long-term plan for comprehensive reform of PNG‘s forestry sector and the permanent forest estate managed by the PNG Forest Authority. It includes implementation plans for the policy reforms and legal frameworks outlined above. Through the consultation process around the R-PP drafts, in-country stakeholders emphasized the importance of investing in the implementation of the reforms set out in the NFP, rather than embarking on another policy reform process.

The planned National Protected Areas Strategic Management Plan for the 3.1 million hectares of Protected Areas (Pas), which is to be based on the 2008 Protected Areas Law.

The Strategic Planning Framework for Fisheries (2010-2019) and the 3-year Fishery Development Action Plan for the fishery domain, which is based on the 2006 Fisheries Law and subsidiary legislation.

Note: Internationally, the National Forest Programme (NFP) represents a series of holistic socio-political processes that coordinate the policies, planning and field operations in the forest sector. Its development in PNG is still at an early stage, and it currently applies only to the mandate of the Forestry Administration of MAFF. The PNG R-PP identifies that PNG’s REDD+ Strategy should be implemented through:

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1. Main Strategy: Support for effective management of PNG’s forests, in accordance with existing laws and policies (supporting the NFP, PAs and flooded forest management). As part of the main strategy, line agencies may decide to investigate additional implementation strategies, such as:

a. Conservation Concessions, as a viable alternative to other types of land concessions b. Local forest protection contracts c. Management of timber and wood energy d. Understanding how REDD+ can support implementation of the CBD in PNG e. Adopting the nested approach to REDD+ implementation

2. Supplementary strategies: Addressing drivers from outside the forestry sector. These candidate REDD+ Strategies will need to be investigated further through the REDD+ Readiness phase.

4. Links between the SESA and the REDD+ Strategy Options The SESA contributes to the REDD+ Readiness process in PNG in two main ways. First, it helps to refine the REDD+ strategy options by assessing how REDD+ strategy options address environmental and social priorities associated with current patterns of land use and forest management. Gaps identified through this assessment would lead to adjustments in the REDD+ strategy options to close the gaps. Second, the SESA would produce an Environmental and Social Management Framework that will outline the procedures to be followed for managing potential environmental and social impacts of specific policies, actions and projects during the implementation of the REDD+ strategy that is finally selected. 5. Strategic Environmental and Social Assessment The SESA will integrate environmental and social considerations in the REDD+ strategy options and will provide a framework for managing potential environmental and social impacts associated with the implementation of these strategy options through the combination of analytical work, consultation and public participation. Appendix 1 provides the schematic diagram of SESA. Monitoring and evaluation procedures are included in the preparation of the ESMF.

5.1 Scoping 5.1.1 Consultation and Participation Activities

During the preparation of the R-PP, extensive stakeholder analysis was carried out to identify key stakeholders. Notwithstanding, the Consultant at the start of the assignment shall conduct a stakeholder gap analysis to identify any relevant stakeholders that might not have been considered during the R-PP development phase. Important among them are community level representatives, Chiefs and land owners, local, regional and national organizations, and women’s organizations. The consultant shall then prepare a comprehensive set of consultation and participation activities for the SESA based on these ToR, a review of the consultation and participation plan prepared during the development of the R-PP, a review of the consultation and participation experiences and literature which may be relevant for the PNG context. In carrying out this activity, the consultant shall ensure that these activities are in line with the R-PP. The Consultant shall coordinate as needed with other teams assisting the Government of PNG in the implementation of the R-PP. National Validation Workshop The Consultant will prepare a SESA work plan, which will include the consultation and participation activities of SESA. The SESA work plan shall be subjected to broad stakeholder validation in a national workshop. The validation workshop is crucial in defining the legitimacy of all subsequent stakeholder consultation and participation processes. Existing platforms and all key stakeholder groups related to forest management in PNG should therefore be considered. Ample notice shall be given to stakeholder groups and platforms who, as much as possible, shall nominate their own representatives.

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The workshop should be held at a place which is more readily accessible to the stakeholder groups coming from different parts of the country. The format and facilitation of the workshop should also ensure that all stakeholders feel comfortable to voice their concerns and that all voices are heard and all inputs considered. Among the issues to be discussed should be included legitimacy and representativeness of stakeholder groups as well as mechanisms for feedback in the SESA process. Criteria for including new stakeholders in future consultation and participation activities would be also agreed as well as the rules to be followed to reach agreements along the SESA process. Views, comments and agreements from the validation workshop should be used by the consultants to finalize the SESA work plan. The plan and any other outcomes of the workshop shall then be publicly disclosed via the websites of the Forestry Commission, the EPA and Lingo websites. For reaching out local communities a plan summary will be communicated by radio in a culturally sensitive format.

5.1.2 Identification of key environmental and social issues The Consultant will identify key environmental and social issues associated with deforestation and forest degradation in PNG to inform the selection of environmental and social priorities. This proposed identification of key issues should be based on analytical work using spatial analysis, case studies and participatory rural appraisal methods. Spatial analysis will be applied in mapping and for overlaying different sets of information to identify critical areas of concentration of environmental and social issues. Case studies will be used to show opportunity costs of different land uses including environmental and ecosystems valuation. Case studies will also help to dig deeper into key issues, inter-sectoral linkages, and potential policy trade-offs in key areas. Participatory rural appraisal would be the main vehicle for identifying key environmental and social issues at the community level. For scoping key environmental issues the following steps will be followed:

1. Construction of a base map (first layer), using information on forest cover, river basins, water bodies, and salient biodiversity characteristics, including biodiversity hotspots and protected areas.

2. Mapping of main economic activities in forest areas and surroundings including but not limited to logging, farming, agriculture, mining and tourism. The mapping will include information on geological provinces and main production projects under implementation or likely to be implemented in the following five years (second layer).

3. Mapping of existing infrastructure and identification of proposed road, dam, and power projects under investigation or implementation (third layer).

4. Superimposition of these three layers of information, together with layers dealing with social issues, to define critical areas under potential environmental stress in forest areas.

5. Examination of specific environmental issues by using participatory rural appraisal methods and case studies agreed with the PNG Forest Authority and/or OCCD in selected areas of interest.

Likewise, the following steps will be followed to scope key social issues:

1. Construction of a base map (first layer) of communities in and around forest areas, including key demographic indicators such as number of inhabitants, gender and age structure, and ethnicity of the populations.

2. Poverty and vulnerability map including income levels of the population (second layer). 3. Mapping of access and land tenure rights that shall include concessions or other existing titling

rights for natural resources or extractive industries such as mining (third layer). 4. Superimposition of these three layers of information, together with layers dealing with

environmental issues, to define critical social issues in forest areas.

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5. Examination of specific social issues by using rural appraisal methods and case studies to document critical interactions and synergy of these different social factors affecting sustainable forest management in PNG.

Building on the evidence and results of these analyses, the consultant will produce a scoping report of key environmental and social issues in forests areas in PNG. The report will:

i. Identify environmental and social hotspots and discuss their main characteristics; ii. Discuss in a sample of key forest areas land use trade-offs by analysing the opportunity cost of

conserving forests versus developing these areas into alternative land uses such as mining or agriculture; and,

iii. Analyse critical institutional, legal, regulatory, policy and capacity gaps underlying the key environmental and social issues identified.

The scoping report will inform the public consultations to be undertaken with key stakeholders for the selection of environmental and social priorities.

5.1.3 Selection of environmental and social priorities In line with the consultation and participation plan of the SESA, the key environmental and social issues resulting from the mapping and analytical work shall be reviewed and prioritized by a representative sample of communities in the critical areas identified from the mapping exercise. Stakeholder engagement at this level shall be in the most widely spoken national dialect of the area. The prioritization will then be validated at the regional level by community representatives. In parallel, institutional stakeholders identified in the SESA work plan such as research and academia, government line agencies and Civil Society organizations and the private sector will review and prioritize environmental and social issues through consultations that are culturally sensitive like focus groups. A national workshop will be convened to discuss the results of the prioritization undertaken by the institutional stakeholders to reach a common set of priorities agreed by all institutional stakeholders at the national level. The selected environmental and social priorities of institutional stakeholders and those of the forest communities will be reported either separately, if they are different from each other, or integrated into one set of priorities for the communities and institutional stakeholders, if they are similar or identical. The Consultant will prepare a report on the selection of priorities by the SESA stakeholders. The report shall then be publicly disclosed via the websites of the PNGFA and OCCD. It should also be published on the REDD+/PNG website.

5.2 Assessment The Consultant will assess environmental and social sustainability of the REDD+ strategy options as follows:

5.2.1 Assessing candidate REDD+ strategy options vis-à-vis previously defined priorities The Consultant will assess the extent to which candidate REDD+ Strategy options address the previously defined environmental and social priorities and take into account in their formulation the opportunity cost of forests. When the REDD+ strategy options address partially or do not address some of the priorities and/or are unresponsive to forest opportunity costs, the gaps will be identified and specific recommendations will be made to refine the REDD+ strategy options to close these gaps. In this way,

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priority environmental and social considerations and to some extent forest valuation will be integrated into the preparation of the REDD+ strategy. The expected output is revised REDD+ strategy options. The revised REDD+ strategy options shall be assessed against the environmental and social impacts that they may induce or create during their implementation. These environmental and social impacts will be identified vis-a-vis the Cancun Safeguards (e.g. through use of the UN-REDD Programme Benefits and Risks Tool) and UNDP’s Social and Environmental Standards. The Consultant shall provide recommendations to refine further the REDD+ strategy options in order to eliminate or minimize risks. If some residual risk still remains, it will be dealt with in the Environmental and Social Management Framework (ESMF) prepared to manage risks during implementation of the REDD+ strategy.

5.2.2 Validation of the assessment In coordination with the team in charge of preparing the REDD+ strategy, the refined REDD+ strategy options shall then be subjected to a national validation workshop. Participants from all key stakeholders should be invited to this workshop including those whose work/livelihoods are likely to impact on or be impacted upon by the strategy options. Care should be taken to include women, migrant farmers and small scale practitioners and any otherwise marginalized groups in line with the consultation and participation plan of the SESA. The validation workshop should be organized in such a way that there will be parallel validation by the different key stakeholders, before a plenary session. This will empower “weaker” stakeholders by ensuring they have a chance to freely express and promote their views. Where necessary, local languages should be used to allow for proper articulation of concerns by all key stakeholders.

5.3 Environmental and Social Management Framework (ESMF)

The Consultant will prepare an initial draft ESMF suitable for disclosure and public consultations that would involve the following minimum tasks:

a) A description of the indicative REDD-plus strategy option(s), its main social and environmental

considerations, and the various risks involved in its implementation. b) An outline of the legislative, regulatory, and policy regime (in relation to forest resources

management, land use, community customary rights, etc.) that the strategy will be implemented within, drawing from the information available from the Draft REDD+ Strategy to be provided by the REDD+ Technical Working Group.

c) A description of the potential future impacts, both positive and negative, deriving from the project(s), activity(-ies), or policy(-ies)/regulation(s) associated with the implementation of the REDD+ strategy options, and the geographic/spatial distribution of these impacts.

d) A description of the arrangements for implementing the specific project(s), activity(-ies), or policy(-ies)/regulation(s) with a focus on the procedures for (i) screening and assessment of site-specific environmental and social impacts; (ii) the preparation of time-bound action plans for reducing, mitigating, and/or offsetting any adverse impacts; (iii) the monitoring of the implementation of the action plans, including arrangements for public participation in such monitoring.

e) An analysis of the particular institutional needs within the REDD+ implementation framework for application of the ESMF. This should include a review of the authority and capability of institutions at different administrative levels (e.g. local, district, provincial/regional, and national), and their capacity to manage and monitor ESMF implementation. The analysis should draw mainly from the REDD+ implementation framework of the Draft REDD+ Strategy.

f) An outline of recommended capacity building actions for the entities responsible for implementing the ESMF.

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g) Requirements for technical assistance to public- and private-sector institutions, communities, and service providers to support implementation of the ESMF.

h) An outline of the budget for implementing the ESMF. The final draft ESMF suitable for inclusion in the R-Package will contain specific sections addressing the requirements of applicable UNDP safeguard policies.

5.3.1 Consultation on and disclosure of the ESMF The generation of a draft ESMF needs to be preceded by the preparation of the ESMF ToR for which inputs are solicited through their public disclosure. In putting together the draft ESMF, extensive stakeholder consultation shall be done, particularly in the critical areas as identified through the prioritization and mapping exercise. The draft document should also be subject to broad stakeholder consultations and inputs. Eventually, a representative sample of communities in the critical areas should be enabled to participate in a public hearing on the ESMF which should be held in a readily accessible community or district capital. Community-based organizations and NGOs operating in these areas should participate in the public hearing, which should also be held in the local dialect widely spoken in the specific area.

Consultation and participation for the SESA will include consultations of the ESMF which should involve community and institutional stakeholders in a manner consistent with PNG Law and UNDP safeguard and disclosure policies. Copies of the document should be made available to the public through the websites of REDD+/PNG and UNDP; hard copies should also be available at PNGFA and OCCD offices. Copies should also be sent to relevant public sector institutions, civil society and the private sector to solicit inputs and comments.

6. Schedule and Deliverables Table A-1 below summarizes the main activities, deliverables and schedule for the implementation of the SESA process. Key intersection points with other activities of the REDD+ readiness package are also included.

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Table A-1 – SESA Road Map Code Activities Institution /

Organization Responsible

Time Result Indicator (Deliverable)

Key intersections and comments

1 Preparation/Screening

1.1 Refinement of ToR

SESA sub-working group (coordination with the National REDD+ Steering Committee)

Month 1 Final ToR

1.2 Hiring of Consultants A consortium of local and international consultants is recommended

1.2.1 Request for Proposals OCCD (coordination with the National REDD+ Steering Committee)

Month 1 Public bid issued Ensure consistency of timing and deliverables with the RFP for the REDD+ readiness package

1.2.2 Short listing and bid evaluation OCCD Month 5 Evaluation report

1.2.3 Awarding of contract OCCD Month 6 Signed consultancy contract

2 Scoping

2.1

Gap assessment of R-PP stakeholder analysis

Consultant Month 7 Progress/inception report submitted to OCCD/PNGFA

SESA C&P activities should be compatible with the CCDP and CCDS

2.2 Refinement of SESA consultation & participation (C&P) activities and formulation of SESA Work Plan

2.3 Validation of SESA Work Plan

2.3.1 Organization of National Workshop SESA sub-WG through the consultants

Months 8 and 9

Invitation and agenda issued - Includes participation of representatives of

forest communities, districts and relevant institutional stakeholders

2.3.2 National workshop and reporting Workshop report

2.3.3 Finalization of SESA Work Plan Consultant Final SESA Work Plan that includes C&P SESA activities

2.3.4 Disclosure of SESA Work Plan OCCD/PNGFA

- Plan published in REDD+/PNG and UNDP websites - Radio announcement of Plan summary

Communication of the Plan at the local level will be coordinated with the C&P Working Group

2.4 Scoping of Key E&S issues

2.4.1 Gathering and technical validation of Consultant / OCCD/ Months 10 Progress report

62

available spatial data on - environment and, - social issues

PNGFA -16

2.4.2

Spatial mapping, including community based participatory mapping, of - forest, biodiversity hotspots, river basins, main infrastructure projects - forest dependent communities, activities undertaken in forest areas, use and access rights to forest and land

A GIS data base and progress report that includes maps, case studies and key environmental and social issues

- Key intersection point with preparation of reference scenario

2.4.3 Case and valuation studies in selected forest areas

Case studies reports

2.4.4 Report on key environmental and social issues

Report submitted

2.5 Prioritization of E&S issues

2.5.1 Review and prioritization by selected communities in critical areas

Consultant / OCCD/ PNGFA

Months 17 – 19

Community consultation report

- Key intersection point to coordinate consultations with the REDD+ strategy options

2.5.2 Regional validation by community representatives

Month 20 Regional validation report Likely to be workshops

2.5.3 Review and prioritization by institutional stakeholders Months

21-22

Institutional consultation report

Likely to be focus groups

2.5.4 Institutional stakeholders workshop Institutional prioritization report

2.5.5 Report on E&S priorities Consultant Month 23 Prioritization report

3 Assessment

3.1 Analysis of REDD+ candidate strategy options vis-à-vis E&S priorities

Consultant / OCCD/ PNGFA

Months 24 and 25

Progress report

3.2 Refinement of REDD+ candidate strategy options

SESA consultants coordinate with REDD+ strategy consultants

3.3 Assessment of other E&S risks associated with refined candidate strategy options

3.4 Report on candidate REDD+ strategy options Consultant of REDD+

Strategy Month 26 – 27

REDD+ Strategy options - Report and consultation to be carried out by REDD+ strategy consultants

3.5 Stakeholder validation of REDD+ strategy options

4 Reporting

4.1 Preparation and disclosure of ToR for Environmental and Social Management Framework (ESMF)

OCCD/PNGFA Month 16 -19

ToR

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4.2 ESMF

4.2.1 Draft ESMF Consultant Months 20-26

4.2.2 Consultation of Initial Draft ESMF Consultant Months 27-29

Draft ESMF report and consultation report

- Coordinate with consultations to validate final REDD+ Strategy - Includes consultation with selected local forests communities and at the regional and national levels

4.3 Final Draft ESMF Consultant Month 31 Final draft ESMF - Input to REDD+ Readiness Package

4.3.1 SESA report Consultant Months 32 -33

SESA Report - Integrates all previous reports including Final Draft ESMF

4.3.2 Disclosure of ESMF OCCD/PNGFA/UNDP Month 33 Publication in relevant websites

Executive summaries sent to District Assemblies

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7. Composition of SESA Team The SESA process will be undertaken by a consortium made up of members of an international consulting company and of a PNG consulting company or local NGO. The international company members should lead the SESA’s analytical work, have proven experience in applying UNDP safeguard policies and be responsible for the quality control of the whole SESA process. The local company members are expected to lead the consultation and public participation process and contribute to SESA’s analytical work.

The minimal technical expertise required for the SESA will include the following:

1. Team leader should have proven experience in leading sector or national reviews or

assessments of public policies or development strategies. At least 15 years’ experience, of which 10 years are relevant experience in developing countries, is required. This expert should have at least 2 years of experience in Southeast Asian countries. Experience in PNG is desirable. S/he must have academic training in natural resources management, environmental or social sciences. Experience in SESA is desirable.

2. Natural resource/forestry specialist should have at least 10 years of experience in forest management, including timber and non-timber projects. At least two years of experience in forestry projects in PNG is required. Knowledge on the legal, regulatory and institutional framework of natural resources in PNG including mining and agriculture is desirable.

3. Social development specialist should have at least ten years of experience on forest communities and indigenous peoples. Familiarity with participatory rural appraisal and social issues associated with forests in Asia and UNDP social safeguard policies is required. At least three years of experience in Southeast Asia is required; experience in PNG is desirable.

4. Stakeholder engagement specialist should have at least five years of experience in PNG. Proven knowledge of stakeholders at the national, regional and local level on forest and land use in PNG is required. S/he may know at least one local language or dialect widely spoken by rural communities in PNG.

5. Environmental Specialist should be able to cover all environmental issues of the project. S/he may have at least 10 years of experience in environmental assessment in developing countries. Familiarity with environmental issues associated with forests in Asia and UNDP environmental safeguard policies is required. Experience in environmental valuation is desirable. Priority will be given first to experience in PNG and then in developing countries.

6. Mapping specialist should be able to cover all mapping requirements of the SESA. Experience of at least 5 years and proven experience on mapping and GIS techniques is required.

All members of the team should be fluent in English. Specific technical inputs on legal, infrastructure development projects, gender and environmental and natural resources valuation should be provided by the Consultant as needed. 8. Institutional reporting The team of Consultants shall work closely with the National REDD+ TWG, and report to the NRSC, a high level inter-Ministerial and sectoral body, to be established, composed of senior official in key line agencies.

SESA of REDD+ Readiness PNG

Preparation/screening

- Describe PPP & context

- ToRs

- Hiring of consultants

Scoping

- Stakeholders

- Environmental risks & opportunities

- Institutional analysis

Assessment

- Advisory notes

- Refinement of draft policies

Monitoring & Evaluation

- Development of indicators

- monitoring and evaluation plan

Reporting

(possibly including a sector manual)

Preparation/screening - RPP & Assessment Note formulation - Refinement of ToR - Hiring of consultants

Scoping - Stakeholders: Gap review & SESA work plan - Key environmental issues: mapping and analysis of main forest and deforestation areas, river basin, biodiversity hotspots and infrastructure projects in forest areas - Key social issues: mapping and analysis of main forest dependent communities, activities affecting forests, land rights owners - Institutional, legal, regulatory, policy and capacity gap analysis - Identification of priority E&S issues in consultation with stakeholders

Reporting - Refined strategy options included in REDD+ strategy - ESMF for implementation of REDD+ strategy which includes

Preparation of ToR,

Preparation of frameworks

Requirements for capacity building and

Monitoring and evaluation plan

Public consultation and disclosure

Assessment - Do candidate REDD+ strategy options address priority E&S issues? Do they create significant additional E&S risks? - Refinement of REDD+ strategy options - Stakeholders validation

“SESA approach” for REDD+ Readiness

Includes environmental and social issues

Focus on the process (stakeholder involvement)

Consistency with UNDP environmental and social safeguard policies

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ANNEX III: UNDP PROJECT DOCUMENT

United Nations Development Programme Country: Papua New Guinea

PROJECT DOCUMENT

Project Title: Forest Carbon Partnership Facility

UNDAF Outcome(s): By 2018, Government and civil society have enhanced capacity to implement biodiversity conservation, low carbon and climate resilient development initiatives for environmental sustainability and improved livelihood to reduce the vulnerability of women, girls, men and boys to disaster risks

UNDP Strategic Plan Environment and Sustainable Development Primary Outcome: Growth and development are inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded

UNDP Strategic Plan Secondary Outcome: Citizen expectations for voice, development, the rule of law and accountability are met by stronger systems of democratic governance

Expected CP Outcome(s): By 2017, GoPNG and civil society have enhanced their capacity to implement biodiversity conservation, low carbon and climate resilient development initiatives for environmental sustainability and improved community livelihoods to reduce the vulnerability of women, girls, men and boys to disaster risks Expected CPAP Output(s): Promote Low Carbon Growth and Climate Resilient Economic Development - Public institutions, private sector and local communities enhance the implementation of low carbon growth and climate resilient development initiatives for environmentally sustainable economic growth.

Executing Entity/Implementing Partner: OCCD

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Programme Period: 2015-2018 Atlas Award ID: ______________ Project ID: ______________ PIMS # ______________ Start date: Jan. 2015 End Date Dec. 2018 Management Arrangements NIM (UNDP) PAC Meeting Date ______________

Agreed by (Executing Entity/Implementing Partner): Executive Director, Varigini Badira

Office of Climate Change and Development Date/Month/Year

Agreed by (UNDP): Resident Representative, Roy Trivedy

Date/Month/Year

Brief Description Building on work undertaken by the UN-REDD Programme, the FCPF project will contribute to the development of PNG’s capacity to design a sound national REDD+ strategy, develop and sustain national readiness management arrangements, elaborate REDD+ strategy options, develop the REDD+ implementation framework, assess social and environmental impacts, develop a Reference Level, and design a monitoring system. The expected result will be efforts successfully undertaken by PNG with FCPF support to establish the basis for emission reductions and benefit from REDD+. The implementing partner will be OCCD, with PNGFA as a responsible partner.

Total resources required $3.8M Total allocated resources: $3.8M

Regular ________________

Other: o FCPF $3.8M o Government ________________ o In-kind ________________ o Other ________________

In-kind contributions ________________

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CONTENTS

Acronyms .................................................................................................................................................... 69 1. Situation analysis ............................................................................................................................... 70 2. Strategy .............................................................................................................................................. 76 3. Project Results Framework ................................................................................................................ 80 4. Total budget and workplan ................................................................................................................ 83 5. Management Arrangements.............................................................................................................. 86 6. Monitoring Framework and Evaluation ............................................................................................. 88 7. Legal Context ..................................................................................................................................... 92 8. Annexes .............................................................................................................................................. 93 9. SIGNATURE PAGE ............................................................................................................................. 110

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ACRONYMS APR Annual Progress Report

BAU Business as Usual

BDS Benefit Distribution System

BTOR Back to Office Report

CBO Community-based Organization

CCDP Climate Change Development Policy

CCDS Climate Change Development Strategy

CO Country Office

COP Conference of the Parties

FAO Food and Agricultural Organization of the United Nations

FCPF Forest Carbon Partnership Facility

FPIC Free, Prior and Informed Consent

FREL Forest Reference Emission Level

FRL Forest Reference Level

GDP Gross Domestic Product

GHG Greenhouse Gas

GoPNG Government of Papua New Guinea

HDI Human Development Index

IIED International Institute for Environment and Development

LLG Local level Government

MFCC Ministry of Environment and Climate Change

MRV Measurement, Reporting and Verification

NEC National Environment Commission

NGO Non-governmental Organization

NRF National REDD+ Fund

NRSC National REDD+ Steering Committee

OCCD Office of Climate Change and Development

PEB Programme Executive Board

PNGFA PNG Forest Authority

PPR Project Progress Report

QPR Quarterly Progress Report

RCU Regional Coordinating Unit

REDD+ Reducing Emissions from Deforestation and Forest Degradation and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks

R-PIN Readiness Preparation Information Note

RTA Regional Technical Advisor

SBAA Standard Basic Assistance Agreement

SWG Sub-Working Group

TWG Technical Working Group

UNFCCC United National Framework Convention on Climate Change

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1. SITUATION ANALYSIS Papua New Guinea (PNG) is the largest of the Pacific Island nations, both in terms of population, estimated at some 6.1 million, and in terms of land mass, covering approximately 460,000 square kilometres. Around 87% of the population lives in rural areas of PNG’s varied and rugged terrain that supports an extraordinary range of ecosystems and biodiversity, most of which are not accessible by road. The country has a rich and unique cultural and ethnic diversity, with some 830 languages spoken by a population distributed over the mainland and the many islands. The population is forecast to grow to more than 11 million by 2050. Currently 40% of the population is under the age of 18. The country’s level of human development remains low and has, in some areas, deteriorated over the recent years. In 2008, PNG’s Human Development Index (HDI) ranked at 149 out of the 179 countries and territories surveyed. A large part of the rural population, and to a lesser extent, the urban population relies for their livelihoods on forest exploitation, fishing, hunting, and subsistence agriculture. Weak infrastructure, weak social service delivery mechanisms, marketing difficulties as well as low government and civil society capacity constrain possibilities to improve standards of living.51 The Government of Papua New Guinea’s (GoPNG) effort to become a global partner in the discussions under the UN’s Framework Convention on Climate Change (UNFCCC) includes taking a leadership role following the 13th Conference of Parties (COP) in Bali in 2007. PNG’s then Prime Minister, who was also co-chair of the Coalition of Rainforest Nations, played a leading role in launching the international discussions regarding REDD+. PNG has chosen to support the Copenhagen Accord and has worked through the Paris-Oslo process to promote an interim REDD+ agreement as a prelude to a globally applicable, legally binding climate change treaty. In addition, PNG has acted as co-chair of the interim REDD+ Partnership Secretariat in 2010, alongside Japan. In February 2010, the GoPNG made a conditional commitment, submitted to the UNFCCC under the Copenhagen Accord, to reduce greenhouse gas (GHG) emissions by ~30% from current levels, or ~50% from the BAU forecast, by 2030.52 The bulk of this abatement is to come from reducing emissions caused by land use, land-use change and forestry, which currently account for over 95% of emissions, but generate less than 20% of Gross Domestic Product (GDP). PNG has made significant progress domestically to meet its international commitments, in particular by establishing institutional and management arrangements related to climate change in general and REDD+ in particular. National climate change readiness efforts began in 2008 with the establishment of an Office of Climate Change and Environment Sustainability, which was re-established in 2010 as the Office of Climate Change and Development (OCCD). Since its creation, the OCCD has made broad progress in identifying and developing key overall climate change and REDD+ strategies. These have included a Climate Compatible Development Strategy (CCDS), REDD+ Roadmap and national REDD+ Guidelines. In addition, GoPNG has endorsed five REDD+ pilot initiatives, including demonstration activities initiated by conservation NGOs. The aim of these pilot activities is to test the strategies developed in collaboration with key implementing partners, including development partners. SECTORAL AND INSTITUTIONAL CONTEXT

51 This section is based on the Situation Analysis in the UN Country Programme Action Plan. 52http://unfccc.int/files/meetings/application/pdf/pngcphaccord_app2.pdf

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PNG has one of the most significant areas of largely-intact tropical forest in the world, although these forests appear to be facing acute and imminent threats. Forests are also a vital resource for the local population particularly in the remote rural areas of PNG. These forests provide food, fibre, building materials, and support a variety of wildlife, ecosystem services such as carbon sequestration, watershed protection, water supply, and soil stability and fertility. Nevertheless, forest cover data, commercial timber stocks, rate of deforestation and relative contributions of the drivers of deforestation are all subject to some uncertainty and much debate among academics and NGOs interested in forest cover change in PNG. The Papua New Guinea Forest Authority (PNGFA) estimates that approximately 60% of the total area of the country is covered by natural forests, of which 52% are considered production forests (for timber and other products), and 48% are for conservation (not for timber extraction due to inaccessibility or ecological constraints). There is a long history of debate regarding the forestry sector in PNG in numerous reviews, independent audits and studies of the forestry sector, e.g.:

IIED 1998 Country Study

IIED 2001 Report edited by Colin Hunt

PNG Forest Industry Association analysis 2006

An official assessment of the Forest Resource Base by PNGFA indicates that about 29 million hectares of land are forested of which 15 million hectares are classified as production forest having potentially high quality hardwoods species suitable for commercial development.53 The remaining 14 million hectares are classified as Reserve Forests (Figure 1).

53 PNGFA (2009) Parliamentary Brief for Minister for Forests, Nov 2009, Port Moresby

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FIGURE 1 – PNG’s forest resource base

FAO’s Global Forest Resources Assessment 2010 reports lower forest coverage. Based on their report, in 1990 primary forests covered 31.3 million hectares, declining to 26.2 million hectares in 2010. The rate of annual change of forest area increased significantly from -180,000 hectares in the period 1990-2000, to -427,000 hectares in the period 2005-2010. This translates into an annual deforestation rate of 1.55% in the period 2005-2010. TABLE 1 – Change in the extent of primary forests in PNG (FAO)

Area of Primary Forests (1,000 ha)

Annual change of total forest area (1,000 ha/year)

1990 2000 2005 2010 1990-2000 2000-2005 2005-2010

31,329 29,534 28,344 26,210 -180 -238 -427

More recent estimates by Shearman et al (2008)54 and Shearman and Bryan (2010)55 suggest that intact forests covered 33 million hectares in 1972, or 82% of PNG’s land area. In 2002, PNG’s primary forest area is reported to have decreased to 25.3 million hectares, suggesting that 23% of the area in 1972 has been cleared or degraded at a rate of 0.79%, or 360,000 ha, per annum. The analysis is based on change detection between a forest map derived from aerial photo of 1972 and a forest map derived from Landsat ETM+ satellite data. The cumulative change (which is in line with the annual rate of deforestation reported by PNG to FAO) has been further elaborated with a socio-economic model to support the definition of a forest loss trend which report for 2002 a combined annual rate of deforestation and degradation of 1.41%.

54 See Shearman P., Ash, J, Mackey B, Bryan J.E, and Lokes B (2008), The State of Forest in Papua New Guinea: Mapping the Extent and Condition of Forest Cover and Measuring the Drivers of Forest Change in the Period 1972-2002, University of Papua New Guinea, Port Moresby. 55 See Shearman, P and Bryan J (2010) A Bioregional Analysis of the Distribution of Rainforest Cover, Deforestation and Degradation in Papua New Guinea, Austral Ecology, A Journal of Ecology in the Southern Hemisphere

PNG’s forest resource base

Total Land Area

46 million ha

Forest Area

29 million ha

Non Forest

6 million ha

Other Areas

11 million ha

Production

Forest

15 million ha

Reserve

Forests

14 million ha

Acquired Areas

12 million ha

Available Areas

3 million ha

Areas under

Timber Permits

10 million ha

Estimated Total Sustainable

Forest Production

▪ Committed annual cut =

7.2 million m3/annum

▪ Sustainable national annual

cut = 3.5 million m3/annum

▪ Estimated volume from

agriculture clearing =

1.5 million m3/annum

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TABLE 2 – The area of primary rainforest in PNG in 1972 and 2002, and change due to deforestation and degradation over this period56

Area of Primary Forests (1,000 ha)

Change of total forest area 1972-2002 (Percent)

1972 2002 Deforested area Degraded area Total

33,228 26,462 15 9 24

Additional conclusions of the report include:

Of the 1972 commercially accessible forest areas, it is estimated that by 2021, 83% will have been

cleared or degraded if current trends continue;

About 4.7 billion tonnes of carbon were stored in PNG’s primary forests in 2002. This does not include

carbon in forest soils; and

Between 1972 and 2002 deforestation resulted in the release of a net 926.5 million tonnes of carbon

through logging-related forest degradation.

These data suggest there is an imminent threat to PNG’s forests over the next 2-3 decades. The main drivers of this deforestation and forest degradation are large-scale selective logging and subsistence and commercial agriculture, and to a lesser extent mining activities and forest fires. National REDD+ Developments

The National Executive Council (NEC)

The NEC is the highest ranking decision-making body in the country and is responsible for endorsing all

policies and legislation. It comprises of Cabinet Ministers and Heads of Department and government

statutory bodies who hold regular meetings to make decisions on important matters pertaining to the

management of government affairs. Submissions are normally done through each Minister responsible for

individual departments and government agencies, seeking approval and endorsement from the Prime

Minister as the chairman of the NEC.

The Minister of Environment and Climate Change reports directly to this Council on important climate change

matters, including progress and development within the OCCD. For legislative and policy support, the

Minister can also submit proposals in the form of an NEC Decision seeking approval from the Council

members. The Executive Director as the head of the OCCD also accompanies the Minister to provide technical

advice and updates, in addition to supporting any submissions to be made by the Minister.

PNG Forest Authority (PNGFA)

The Papua New Guinea Forest Authority (PNGFA) was established in 1993 under the Forestry Act, 1991. The

mandate of the PNGFA is to “Promote the management and wise utilization of the forest resources of PNG as

a renewable asset for the well-being of present and future generations.”

The National Forest Service (NFS) is the implementing arm of PNGFA. The governing body is the National

Forest Board (NFB). The NFB oversees the national functions whilst the provincial business is controlled

56 See Shearman et al (2008). Swamp, mangrove, and dry evergreen forest are excluded.

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through the Provincial Forest Management Committees (PFMCs). The NFS is made up of the Office of the

Managing Director and six directorates:

III. Forest Policy and Planning Directorate

IV. Project Allocation Directorate

V. Field Services Directorate

VI. Forest Development Directorate

VII. Corporate Services Directorate

VIII. PNG Forest Research Institute (PNGFRI)

In the context of REDD+, PNGFA is responsible for the generation of data on forest carbon stocks and forest

area changes, overseeing the implementation of REDD+ activities, promoting sustainable forest management

and providing technical and policy support for the development of REDD+ activities and policy options.

Ministry of Environment and Climate Change (MECC)

A new Ministry of Environment and Climate Change (MECC) has been created under the current government

allowing the OCCD Executive Director to report directly to the MFCC rather than to the Prime Minister, as was

the case previously.

The previous Ministry played a leading role in shaping the Government’s strategy and provided direction and assistance to OCCD’s many tasks. The current Ministry has continued to show its commitment and support for REDD+ in PNG. Given that REDD+ has become a development priority in PNG, the minister’s continued role will remain critical to the development of REDD+ in PNG. Key aspects of this role include lobbying for financial support both domestically and internationally and submitting relevant policy and legislation proposals for Cabinet approval.

Office of Climate Change and Development (OCCD) The Office of Climate Change and Development (OCCD) is the coordinating entity for all climate change policy in PNG and the Designated National Authority under the UNFCCC. Established under NEC Decision 54/2010, OCCD replaces the Office of Climate Change and Environmental Sustainability. OCCD’s mandate is founded upon the principles of the Fourth Goal of PNG’s National Constitution, which stipulates that “Papua New Guinea’s natural resources and environment are to be conserved and used for the collective benefit of all and are replenished for the benefit of future generations.” The mandate is further derived from NEC decision 54/2010, which specifies:

1. That the National Climate Change Committee (NCCC) and the OCCD as its secretariat take full and

exclusive responsibility for all policies and actions under Pillar Five of the Vision 2050, concerning

Climate Change and Environmental Sustainability;

2. That the OCCD engages and involves all stakeholders to build a common vision and pathway on action

to tackle climate change;

3. That the OCCD works in close collaboration with, and in support of other departments and agencies

to achieve these goals.

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The OCCD is designed as a lean, efficient organization that coordinates the climate change efforts of the GoPNG. Capacity development for OCCD’s staff to enable it to carry out its tasks effectively will remain a key priority over the coming months and years. OCCD’s responsibilities include:

Conduct a national and provincial consultation on climate-compatible development and REDD+.

Launch immediate Fast Start Actions including ‘readiness activities’ for REDD+ and pilot projects for different approaches to mitigation, adaptation and low carbon growth.

Prepare the final version of PNG’s National Climate-Compatible Development Strategy (CCDS), which includes REDD+.

Approve climate-change related initiatives (e.g., REDD+ pilot initiatives)

Monitor and evaluate project and program performance (including a coordinating responsibility for a national system of MRV for REDD+).

The OCCD acts as a coordinating body for other government agencies and will not implement REDD+ sector programmes and activities. These will be implemented by government organisations, in particular PNGFA; they, in turn, will report back to OCCD regarding the activities that they have undertaken. The OCCD’s strategic position also allows for inclusiveness in the process, by allowing the private sector and NGOs to collaborate with the existing government bodies in implementing activities.

REDD+ Technical Working Group Since 2010, the GoPNG has ensured multi-stakeholder participation and input through five Technical Working Groups operating under the governance structure of the OCCD, one of which is the REDD+ Technical Working Group (TWG). The REDD+ TWG has three sub-working groups – Forestry, Agriculture and MRV Sub-Working Groups (SWG). These working groups have the task of coordinating and advancing REDD+ activities (REDD+ readiness and pilot activities) with the participation of non-government stakeholders and civil society representatives as well as church representatives. There have been regular meetings and discussions of major policy documents since 2010. The REDD+ TWG normally meets once a month to share progress made and find solutions for common issues. The Forestry SWG (FSWG) is responsible for coordinating the incorporation of social and environmental safeguards into a REDD+ regulatory framework. The FSWG also reviews and informs forest sector policy reforms and regulations. The Agriculture SWG (ASWG) collates views and addresses issues relating to land use change due to agricultural activities including special agricultural business leases. The MRV SWG is charged with setting up PNG’s national MRV system, including stock-taking regarding technical capacities within existing institutions and identifying areas needing improvement. The main responsibilities of the REDD+ Technical Working Group (REDD+ TWG) are to:

Provide overall technical knowledge and guidance for the implementation of REDD+ activities based on global, regional and national best practices;

Promote exchange of knowledge and information sharing among all members;

Provide substantive inputs for the design, coordination and implementation of OCCD Annual Work Plans (AWPs) and Budgets;

Review the FCPF Programme documents for technical feasibility and propose recommendations for Program Executive Board (PEB) endorsement of the REDD+ activities.

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2. STRATEGY FCPF funding will be used to contribute to the overall Objective of REDD+ readiness funding in PNG, which is:

To contribute to the development of PNG’s capacity to design a sound national REDD+ strategy, develop and sustain national readiness management arrangements, elaborate REDD+ strategy options, develop the REDD+ implementation framework, assess social and environmental impacts so that, by 2018, PNG is ready to implement policies and measures to reduce emissions from its forests and to enhance removals under the UNFCCC REDD+ mechanism.

This objective is being supported also by the UN-REDD and other bilateral partners. Since the UN-REDD Programme is mainly focused on NFMS and FREL/FRL, the FCPF project will focus on establishing capacities for efficient management of REDD+ and the National REDD+ Strategy. Consequently, the following two Outcomes will be pursued:

Outcome 1: Capacities exist for effective and efficient management of REDD+, including full and effective participation of all relevant stakeholders

Outcome 2: The National REDD+ strategy Under Outcome 1, the following outputs will be secured: 1.1. National REDD+ management arrangements An important gap in current progress is the link between the provinces and the national agencies in the facilitation of REDD+ at the sub-national level. PNGFA has begun implementation of REDD+ demonstration activities in five provinces. This R-PP will look into providing complementary support to key activity areas that will be pursued to slowly progress REDD+ implementation. Most important of all will be capacity development at the provincial government level through the assistance of the national government agencies. Attention will be prioritized to the provincial governments, with a view to preparing them well so they can support the management of REDD+ at the community level more effectively and efficiently. Indicative activities are:

Establishment of a National REDD+ Steering Committee

Continued support for the strengthening of REDD+ management between government and other stakeholders. This includes arranging meetings, workshops and facilitating travel for stakeholders from the provinces to attend meetings.

Continued support to the REDD+ TWG and its activities

Capacity building for provincial authorities

Capacity building for non-governmental stakeholders 1.2. Communications and information sharing systems One of the most important gaps for REDD+ implementation in PNG is community awareness. The government relies on the provincial governments to bridge these gaps within their District and LLG programs. However, the challenge of ensuring an effective outcome in this area has always been the absence of specific REDD+ programs within the LLG which can be implemented within the communities. For this reason, the government has always acknowledged and supported the role of NGOs and CBOs in stepping in to carry out awareness and stakeholder engagement activities within communities. The OCCD and other government agencies like PNGFA have also contributed to this process, but their level of influence has not always measured up with that of NGOs and CBOs in communities. Therefore, communications and information sharing is an important output to secure. Indicative activities include:

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Development and implementation of a comprehensive communications strategy

Information sharing with key stakeholders

Support for NGOs and CBOs to assist them in their role in implementing community engagement and participation activities. Focus and attention will be given to those who are currently working in REDD+ communities.

1.3. Stakeholder consultation and participation process One of the fundamental gaps identified within the consultation and participation process is the sustainability of the process at the community level. This process can only be effective if there are mechanisms established within the provinces to ensure its sustainability. This output is closely linked with the previous output, since participation is greatly facilitated if awareness is increased. One of the most effective ways to encourage participation from people within the communities would be through raising awareness through the use of the media. Some training could be provided to key people within the communities to sustain most of these dialogues at the community level, but sustainability of the information and engagement can only be done through the effective use of the media where information feedback is also available. Given the above, and in order to make this process practical and successful over time, there is a need for training, and increasing the role of, the media in the process. Under this sub-component, the government intends to commence with the training of Trainers of Trainers, who can then engage more effectively with communities in each of the provinces. In addition, we intend to increase the role of the media to complement these efforts at the community level. Indicative activities under this outcome include:

Provision of training to the media on REDD+

Provision of training to communities on engagement, including through the media

Development and institutionalization of formal participation mechanisms

Measures to ensure that gender is adequately addressed in REDD+ implementation Under Outcome 2, the following outputs will be secured: 2.1. Assessment of land-use, forest law, policy and governance A few of the outstanding issues identified in this area include the need for increased public awareness of the existing land regulations, as well as better technical understanding of deforestation and forest degradation drivers. Efforts under this output will be focused on policy issues surrounding land ownership, allocation and management. This task is critical to any efforts undertaken by the communities to understand how they can best manage and use their land when it comes to addressing the drivers of deforestation. Indicative activities under this output include:

Completion of assessment of national circumstances

Studies on drivers of deforestation including REDD+ benefits tailored towards addressing these drivers

Increasing local community awareness on Existing Land Laws and Regulations

Developing measures to strengthen forest law enforcement

Demonstration activities in support of land use, forest law, policy and governance

Presentation of policy options, including institutional responsibilities, to the National REDD+ Steering Committee

2.2. REDD+ strategy options

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Given that land is owned and managed by the forest owners in PNG, as well as heavily deforested for subsistence farming, strategy options can only become tangible, implementable outcomes with the full engagement of forest-dependent communities. Following the preparation of the CCDS, under which various abatement options were developed, conclusions were presented in the provincial consultations for further views and comments. During this process, the government in 201057 discovered that prior to the implementation of the REDD+ strategy options, sustainable livelihoods options58 and co-benefit issues must be addressed. For the sustainable livelihoods option, it is essential that PNG understands how communities use their forests, including their ongoing role in deforestation and degradation. Communities have shown considerable interest in the conservation of large forested areas as long as sustainable livelihood options are also being considered. For co-benefits, the issue would be very complicated given the complexity of defining co-benefits of REDD+ amongst different communities. Therefore, the government has decided that this would need some time and more in-depth research and therefore is keen on allocating a maximum of two Papua New Guinean research scholarships for this. Indicative activities under this output include:

Conduct a review of co-benefits from REDD+

Capacity building to increase the number of national experts

Conduct a study on alternative livelihood options for forest-dependent communities

Presentation of policy options, including institutional responsibilities, to the National REDD+ Steering Committee

Demonstration activities in support of REDD+ policy options

Develop PNG’s National REDD+ Strategy 2.3. REDD+ implementation framework Two important issues to be addressed are the legal framework for REDD+ and the Benefit Sharing Distribution System. Indicative activities under this output include:

Legislative and regulatory enhancement

Development of a benefit sharing mechanism

Analysis of options for development of a National REDD+ Fund

Demonstration activities in support of implementation framework

Presentation of policy options, including institutional responsibilities, to the National REDD+ Steering Committee

2.4. Social and environmental impacts addressed, including grievance mechanism FCPF funding will be used to address gaps in the development of a national system of safeguards, including the establishment of a grievance mechanism for REDD+. Indicative activities under this output include:

Training to line agencies and all key stakeholders on safeguards

Refinement and finalization of framework of social and environmental principles and indicators, monitoring requirements, management, in consultation with key stakeholders and civil society

Implementation of SESA and development of ESMF

Development of a REDD+ grievance mechanism

57 This process is highlighted in Component 1 and Component 2 of this R-PP 58 Sustainable livelihoods options are those activities which can be identified as the major source of income earning generation for communities, but needs to be enhanced during the development of REDD+ in order to encourage greater community participation in forest conservation as well as reducing the risks and trend of deforestation and degradation.

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Analysis and identification of measures to improve REDD+ governance

Legal reform, if necessary, to institutionalize the national REDD+ safeguards within the REDD+ implementation strategies

Demonstration activities in support of measures to address social and environmental risks

Presentation of policy options, including institutional responsibilities, to the National REDD+ Steering Committee

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3. PROJECT RESULTS FRAMEWORK This project will contribute to achieving the following Country Programme Outcome as defined in CPAP or CPD: By 2018, Government and civil society have enhanced capacity to implement biodiversity conservation, low carbon and climate resilient development initiatives for environmental sustainability and improved livelihood to reduce the vulnerability of women, girls, men and boys to disaster risks

Country Programme Outcome Indicators: Increased number of government initiatives to promote environmental sustainability and climate resilience and reduce vulnerabilities

Indicator Baseline Targets End of Project

Source of verification Risks and Assumptions

Project Objective59

(equivalent to output in ATLAS)

Submission of all required document under the Warsaw Framework

No documents submitted

By the end of 2018, PNG has submitted all documents required to trigger results-based payments under the Warsaw Framework

Submissions to the UNFCCC

Effective inter-agency cooperation

Warsaw Framework demonstrated to be effective in triggering results-based payments

Outcome 1 Capacities exist for effective and efficient management of REDD+, including full and effective participation of all relevant stakeholders

REDD+ policy options efficiently reviewed and adopted

Stakeholders express satisfaction with level of engagement

No REDD+ communication and consultation system in place

In regional assessment, 77% of stakeholders were “not at all” or “somewhat satisfied” with level of engagement

By year 4, communications and consultations systems reviewed and adopted

By year 4, at least 50% of all stakeholders are “satisfied” or “very satisfied” with level of engagement

NRSC minutes

Regional assessment or national assessment

Meeting Minutes of Provincial Climate Change Committee Meetings

There is broad acceptance of the need for a NRSC and high level commitment to its operations

Sampling strategy allows accurate comparisons

Subnational government actors support mainstreaming of REDD+ in national development planning and budgeting processes

Output 1.1: National REDD+ Management Arrangements

Effective operation of national and provincial coordination mechanisms REDD+ TWG meetings

Provincial focal points consider that their restructuring initiatives have integrated REDD+

Coordination meetings held irregularly

REDD+ not integrated in provincial development plans

By mid-2015 meetings are held regularly

By year 4, at least 4 provinces report that REDD+ has been integrated

Technical Working Group and coordination meeting minutes

Survey of Provincial REDD+ related activities

REDD+ remains a high priority for all agencies involved

Output 1.2: Communications and Information Sharing systems

Communications materials, including website and Facebook page, developed and disseminated

Communication strategy developed and implemented

OCCD website is not very active; no official Facebook page

Limited REDD+ specific communication materials for awareness, education and advocacy

By end-2015, a communication strategy is formulated for implementation

National REDD+ website launched and users tracked

Facebook page active; by year 4, at least 30 communications products

Development and dissemination of communication materials and knowledge products

Survey

Insufficient human capacity to provide outreach support during time of implementation

Geographical and communications infrastructure challenges limits REDD+ awareness, education and advocacy

Changes in management of certain

59 Objective (Atlas output) monitored quarterly ERBM

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available

Average awareness over 8 stakeholder groups = 65%

produced

By year 4, average awareness = 75%

organisations may delay engagement with them

Output 1.3: Consultation and Participation

REDD+ Training implemented

Effective stakeholder engagement mechanism in place

Training manual developed but needs revision and implementation

No mechanism in place

By year 4, at least 400 people have been trained in provinces

By end-2015, mechanism established; by year 4 stakeholders report it is working effectively

By year 4, a pool of trained trainers established

Training reports

Programme reports; survey of stakeholders

Suitable trainers can be identified and trained

Stakeholders willing to allocate time to engage on REDD+

Outcome 2. National REDD+ Strategy

National REDD+ Strategy formulated

No document prepared

By end of 2016, draft National REDD+ Strategy completed; by end of 2018, endorsed by all stakeholders

Draft National REDD+ Strategy

All stakeholders engage constructively

Political situation does not prevent approval of Strategy

Output 2.1: Assessment of Land Use, Land Use Change, Forest Law, Policy

# of assessments completed

# of LULUCF policy options for REDD+ produced and adopted

Initial assessments on land use/forest cover

No policy options drafted

By end-2016, new or revised assessments completed

By end-2016, policy options presented to NRSC for adoption

Published Reports, presented and launched

Policy options document submitted

Constraint of capacity to carry out LULUCF and forestry law and policy assessments

Overlapping mandates of different government agencies delays endorsement of LULUCF policy options for REDD+

Output 2.2: REDD+ Strategy Options

Policy options developed and adopted

# of alternative livelihood options identified

No overview

No alternative livelihood options prepared

By end-2016, policy options presented to NRSC for decision

By mid-2016, alternative livelihood assessment completed

Policy options document submitted

Reports

Capacity constraints for developing strategy options and alternative livelihood options

Stakeholder engagement is effective

Output 2.3: REDD+ Implementation Framework

NRF options reviewed and adopted

Benefit Distribution System approved

Other policy options reviewed and adopted

No discussion on NRF

No BDS options developed

No options prepared

By end-2015, options paper produced; by end-2016, approved option identified; by end-2018 NRF established

By end-2016, BDS designed; by end-2018, BDS established

By end-2016, policy options presented to NRSC for decision

Options reports; programme reports

Options reports; programme reports

Policy options document submitted

Capacity constraints to develop a REDD+ implementation framework

Broad stakeholder engagement

Output 2.4: Social and Environmental Impacts addressed, including grievance mechanism

Social and Environmental Safeguards identified and endorsed

SESA implemented and ESMF developed

Safeguard gaps identified

No SESA or ESMF

No grievance mechanism

By end-2015, FPIC trials completed

By mid-2016, ESMF completed

By end-2016, SIS operational

By end-2018, grievance mechanism

FPIC field trials reports

ESMF and SESA reports

Report on the SIS

Grievance mechanism

Capacity constraints to analyse and identify safeguard gaps

Commitment to respect REDD+ safeguards remains strong

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Grievance mechanism established

Trials of FPIC process completed

FPIC guidelines complete

operational report

Project Management Efficiency of project management

No PMU following closure of UN-REDD National Programme

Annual and quarterly workplans prepared on time; PEB meetings held regularly; fund disbursement meets targets

Programme reports, PEB minutes, etc.

Prompt recruitment of personnel

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4. TOTAL BUDGET AND WORKPLAN Award ID: Project ID(s):

Award Title: PNG: FCPF Project

Business Unit: PNG10

Project Title: PNG: FCPF Project

Implementing Partner (Executing Agency) Office of Climate Change and Development

Atlas Activity

Responsible Party/

Implementing Agent

Fund ID Donor Name

Atlas Budgetary

Account Code

ATLAS Budget Description

Amount Year 1 (USD)

Amount Year 2 (USD)

Amount Year 3 (USD)

Amount Year 4 (USD)

Total (USD)

See Budget Note:

OUTCOME 1: Capacities exist for effective and efficient management of REDD+, including full and effective participation of all relevant stakeholders

UNDP FCPF

71200 International Consultants

74,000 110,000 100,000 50,000 334,000

International Technical Advisor and

International Consultant

71300 Local Consultants 40,000 40,000 50,000 10,000 140,000 National Consultants

71400 Contractual services - Individual

35,000 70, 000 70,000 35,000 140,000

Budget for Communications

Officer and Stakeholder

Engagement Officer

71600 Travel 20,000 40, 000 50,000 15,000 85,000

Travel costs are high hence a series of

stakeholder engagement activities are expected to take

place.

72100 Contractual Services-Companies

30,000 30,000 15,000 10,000 85,000 Engagement of communication

companies

72200 Equipment 20,000 40,000 40,000 10,000 110,000

Purchase and hire of equipment for PMU

and implementation of activities

72300 Materials & Supplies

20,000 20,000 25,000 2,000 67,000

Materials and supplies for stakeholder

consultative meetings/workshops

74200 Printing & Publications

15,000 22,000 30,000 7,000 74,000 Printing and

Publication of materials

74500 Miscellaneous 2,000 3,000 4,000 1,000 10,000 Any incidentals

UNDP Environmental Finance Services Page 84

75700 Training, Workshops & Conferences

30,000 70,000 66,000 30,000 161,000

Workshops/Conference venue hire and

accommodation for participants

Sub-total FCPF 286,000 335,000 450,000 170,000 1,241,000

62000 (62160) (62180)

Or other donor

71300 Local Consultants

Sub-total FCPF

Donor 2

Contractual services

72500 Office Supplies

74500 Miscellaneous

sub-total Donor 2

Total Outcome 1 286,000 335,000 450,000 170,000 1,241,000

OUTCOME 2: The National REDD+ Strategy

UNDP FCPF

71200 International Consultants

83,000 145,000 145,000 75,000 448,000

International Technical Advisor and

International Consultant

71300 Local Consultants 30,000 70,000 70,000 25,000 195,000 National Consultants

71400 Contractual services - Individual

35,000 35,000 35,000 10,000 115,000

Budget for Project Assistant

(Administrative and Technical Support)

71600 Travel 40,000 65,000 57,000 10,000 172,000

Travel costs are high hence a series of

stakeholder engagement activities are expected to take

place.

72100 Contractual Services-Companies

30,000 100,000 50,000 5,000 185,000

Engagement of communication and

other specialised institutions/companies

72200 Equipment 15,000 40,000 45,000 12,000 112,000

Purchase and Hire of equipment for PMU

and implementation of activities

72300 Materials & Supplies

20,000 25,000 30,000 3,000 78,000

Materials and supplies for stakeholder

consultative meetings/workshops

74200 Printing & Publications

15,000 38,000 30,000 3,000 86,000 Printing and

Publication of materials

UNDP Environmental Finance Services Page 85

74500 Miscellaneous 5,000 2,000 3,000 2,000 12,000 Any incidentals

75700 Training, Workshops & Conferences

40,000 60,000 80,000 20,000 200,000

Workshops/Conference venue hire and

accommodation for participants

Sub-total FCPF 313,000 580,000 545,000 165,000 1,603,000

Donor

2

72500 Office Supplies

74500 Miscellaneous

sub-total donor 2

Total Outcome 2 313,000 580,000 545,000 165,000 1,603,000

PROJECT MANAGEMENT

UNIT

UNDP

FCPF

71200 International Consultants

73,000 100,000 100,000 50,000 323,000

71300 Local Consultants 0 0 0 0 0

71400 Contractual Services-Individual

70,000 70,000 70,000 35,000 245,000

Budget for National Project Manager and Admin, Finance and Procurement Officer

71600 Travel 10,000 20,000 10,000 5,000 45,000 PMU related travel

72200 Equipment 20,000 10,000 10,000 5,000 45,000 Purchase of hire of

PMU equipment

72300 Materials & Supplies

10,000 10,000 10,000 0 30,000 Purchase of PMU materials/supplies

72500 Office Supplies 20,000 10,000 5,000 3,000 38,000 Purchase of PMU

office supplies

74200 Printing & Publications

5,000 10,000 5,000 5,000 25,000

Printing and Publications of PMU and project related

materials

75700 Training, Workshops & Conferences

10,000 30,000 15,000 5,000 60,000

Workshops/Conference venue hire and

accommodation for participants

Sub-total 218,000 260,000 225,000 108,000 811,000

Total Management

218,000 260,000 225,000 108,000 811,000

Monitoring and Evaluation 20,000 10,000 10,000 105,000 145,000

PROJECT TOTAL 837,000 1,185,000 1,230,000 548,000 3,800,000

Summary of Funds:

Amount Year 1

Amount Year 2

Amount Year 3

Amount Year 4 Total

FCPF $837,000 $1,185,000 $1,230,000 $548,000 $3,800,000

TOTAL $837,000 $1,185,000 $1,230,000 $548,000 $3,800,000

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5. MANAGEMENT ARRANGEMENTS

Following the programming guidelines for national implementation of UNDP supported projects, OCCD together with PNG FA will sign the Project Document with UNDP and will be accountable to UNDP for the disbursement of funds and the achievement of the project objective and outcomes, according to the approved work plan. In particular, the OCCD, as the Implementing Partner (IP) and PNGFA as responsible party under the leadership of the project manager will be responsible for the following functions: (i) coordinating activities to ensure the delivery of agreed outcomes; (ii) certifying expenditures in line with approved budgets and workplans; (iii) facilitating, monitoring and reporting on the procurement of inputs and delivery of outputs; (iv) coordinating interventions financed by FCPF/UNDP with other parallel interventions; (v) preparation of Terms of Reference for consultants and approval of tender documents for subcontracted inputs; and (vi) reporting to UNDP on project delivery and impact.

The project will use the established Programme Executive Board (PEB) of the UN-REDD National Programme and a Program Management Unit (PMU) within OCCD. The PEB comprises of UNDP, OCCD and PNGFA as key partners with representatives from private sector, academic/research institutions, representatives of Indigenous Peoples organizations and civil society organisations. The PEB shall be co-chaired by OCCD and UNDP and will meet at least biannually. The PEB will be responsible to provide overall guidance for the project throughout implementation. Specifically, the PEB will be responsible for: (i) review and approval of the Project’s Annual Work Plan and Budget; (ii) provision of advice as requested for the project when guidance is required by the National Project Director, ensuring coordination among agencies and key sectors; (iii) provide guidance to implementation to ensure consistency with national policies and strategies; (iv) provide oversight to the work of the implementing units and organizations, monitoring progress (v) review financial management and annual financial reports; (vi) monitor effectiveness of project implementation and structures; and (viii) provide guidance to major evaluations, review evaluation reports to monitor implementation. The collaborating partners for demonstration sites’ activities will include Provincial, District and Local Level Governments, NGOs, industry partners, private sector and consultants where specific skills are needed that fall outside the capabilities of other partners.

The Director, REDD+/Mitigation Division of OCCD will serve as the National Project Director (NPD). The NPD will be responsible for day-to-day oversight of the PMU, and in addition will assume the duties of the NPD in his/her absence. The NPD shall be assisted by a national Project Manager and key technical and administrative staff. The NPD and D/NPD will be responsible for provision of overall oversight technical coordination of the project with PNGFA and other stakeholders. He/She will also participate in meetings of the UN/UNDP Coordination Mechanisms.

A Project Management Unit (PMU) is to be created within the REDD+/Mitigation Division of OCCD and its role is to provide operational oversight to project activities under the day-to-day guidance of the NPD. The PMU shall be based at the OCCD. The PMU shall be supported by regular personnel of the OCCD and PNGFA, to be complemented by staff to be contracted under this project. The PMU will be led by the national project manager who will be responsible for overall management, monitoring, and coordination of project implementation according to UNDP rules on managing UNDP supported projects. Specifically, his/her responsibilities include: (i) contracting of and contract administration for qualified local and international experts who meet the formal requirements of the UNDP/FCPF; (ii) management and responsibility of all financial administration to realize the targets envisioned; (iii)

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organizing the meetings of the PEB; (vii) review and approval of work and financial plans of implementing partners; (viii) monitor and support the activities of the implementing partners. He/She will be assisted by an international technical advisor who will provide technical assistance to the PMU/OCCD/PNGFA and mentor the project manager. A stakeholder engagement officer will be responsible for engaging effectively with other stakeholders in PNG and internationally on PNG’s REDD+ activities. A communications officer will lead and provide guidance on implementation, and update, as required, a communication, consultation and participation strategy for the PNG REDD+ programme. A procurement and administration assistant will focus on financial management and procurement to ensure effective and efficient implementation of project activities. The special Letter of Agreement will be signed together with this project document outlining details of the UNDP’s services to be provided to the project.

Project will make use of the REDD+ Technical Working Group (TWG) currently managed by OCCD comprising representatives from, Provincial Governments, and NGOs and industry representatives. Where necessary, the PMU will request the REDD+ TWG to coordinate technical support for the implementation of project activities. The will included but not be limited to (i) seeking consensus on the vision and objectives for the demonstration project, (ii) facilitating the translation of these objectives into an integrated plan of action with other stakeholders for the demonstration sites; (iii) ensuring consistency and convergence of stakeholder activities, plans and programs to support the achievement of the objectives and expected outcomes of plan.

The UNDP PNG Country Office will be responsible for Project oversight, ensuring milestones are achieved. It will undertake quarterly financial and technical monitoring as part of its oversight functions. In addition, the UNDP will be responsible for: (i) coordinating with the UN Country Team in PNG with a view to mainstreaming in their interventions at the country level and funding as appropriate; (ii) coordinating an effective networking between stakeholders, specialized international organizations and the donor community; (iii) facilitating networking among the country-wide stakeholders; (iv) reviewing and making recommendations for reports produced under the project; and, (v) contributing to technical reviews to ensure linkage to national policy goals, relevance, effectiveness and impartiality of the decision making process for the project.

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6. MONITORING FRAMEWORK AND EVALUATION The project will be monitored through the following M& E activities. The M& E budget is provided in the table below. Project start: A Project Inception Workshop will be held within the first 3 months of project start with those with assigned roles in the project organization structure, UNDP country office and where appropriate/feasible regional technical policy and program advisors as well as other stakeholders. The Inception Workshop is crucial to building ownership for the project results and to plan the first year annual work plan.

The Inception Workshop should address a number of key issues including: a) Assist all partners to fully understand and take ownership of the project. Detail the roles,

support services and complementary responsibilities of UNDP CO and RCU staff vis à vis the project team. Discuss the roles, functions, and responsibilities within the project's decision-making structures, including reporting and communication lines, and conflict resolution mechanisms. The Terms of Reference for project staff will be discussed again as needed.

b) Based on the project results framework, finalize the first annual work plan. Review and agree on the indicators, targets and their means of verification, and recheck assumptions and risks.

c) Provide a detailed overview of reporting, monitoring and evaluation (M&E) requirements. The Monitoring and Evaluation work plan and budget should be agreed and scheduled.

d) Discuss financial reporting procedures and obligations, and arrangements for annual audit. e) Plan and schedule Project Board meetings. Roles and responsibilities of all project organisation

structures should be clarified and meetings planned. The first Project Board meeting should be held within the first 2 months following the inception workshop.

National Project Manager

Project Board

Senior Beneficiary: OCCD and PNGFA

Executive: OCCD

Senior Supplier: UNDP and World Bank

Project Assurance UNDP Programme Analyst and Programme Associate

Project Support PMU/Staff of OCCD

Project Organisation Structure

Output 1 Capacities exist for

effective and efficient management of REDD+

Project Management PM, TA, comms, SE, admin

and procurement

Output 2 National REDD+ Strategy

developed and endorsed by stakeholders

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An Inception Workshop report is a key reference document and must be prepared by the project manager and shared with participants to formalize various agreements and plans decided during the meeting. Quarterly: Progress made shall be monitored in the UNDP Enhanced Results Based Managment Platform. Based on the initial risk analysis submitted, the risk log shall be regularly updated in ATLAS. Risks

become critical when the impact and probability are high. Based on the information recorded in Atlas, a Project Progress Reports (PPR) can be generated in

the Executive Snapshot. Other ATLAS logs can be used to monitor issues, lessons learned etc. The use of these functions is a

key indicator in the UNDP Executive Balanced Scorecard. Annually: Annual Project Review (APR): This key report is prepared to monitor progress made since project

start and in particular for the previous reporting period (30 June to 1 July). The APR includes, but is not limited to, reporting on the following:

Progress made toward project objective and project outcomes - each with indicators, baseline data and end-of-project targets (cumulative)

Project outputs delivered per project outcome (annual).

Lesson learned/good practice.

AWP and other expenditure reports

Risk and adaptive management

ATLAS QPR. Periodic Monitoring through site visits: UNDP CO and the UNDP RCU will conduct visits to project sites based on the agreed schedule in the project's Inception Report/Annual Work Plan to assess first hand project progress. Other members of the Project Board may also join these visits. A Field Visit Report/BTOR will be prepared by the CO and UNDP RCU and will be circulated no less than one month after the visit to the project team and Project Board members. End of Project: An independent Final Evaluation will take place three months prior to the final Project Board meeting and will be undertaken in accordance with UNDP guidance. The final evaluation will focus on the delivery of the project’s results as initially planned (and as corrected after the mid-term evaluation, if any such correction took place). The final evaluation will look at impact and sustainability of results, including the contribution to capacity development and the achievement of global environmental benefits/goals. The Terms of Reference for this evaluation will be prepared by the UNDP CO based on guidance from the Regional Coordinating Unit. The Terminal Evaluation should also provide recommendations for follow-up activities and requires a management response which should be uploaded to PIMS and to the UNDP Evaluation Office Evaluation Resource Center.

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During the last three months, the project team will prepare the Project Terminal Report. This comprehensive report will summarize the results achieved (objectives, outcomes, outputs), lessons learned, problems met and areas where results may not have been achieved. It will also lay out recommendations for any further steps that may need to be taken to ensure sustainability and replicability of the project’s results. Learning and knowledge sharing: Results from the project will be disseminated within and beyond the project intervention zone through existing information sharing networks and forums. The project will identify and participate, as relevant and appropriate, in scientific, policy-based and/or any other networks, which may be of benefit to project implementation though lessons learned. The project will identify, analyze, and share lessons learned that might be beneficial in the design and implementation of similar future projects. Finally, there will be a two-way flow of information between this project and other projects of a similar focus. Communications and visibility requirements: Full compliance is required with UNDP’s Branding Guidelines. These can be accessed at http://intra.undp.org/coa/branding.shtml, and specific guidelines on UNDP logo use can be accessed at: http://intra.undp.org/branding/useOfLogo.html. Amongst other things, these guidelines describe when and how the UNDP logo needs to be used, as well as how the logos of donors to UNDP projects needs to be used. For the avoidance of any doubt, when logo use is required, the UNDP logo needs to be used alongside the FCPF logo. The UNDP logo can be accessed at http://intra.undp.org/coa/branding.shtml. Where other agencies and project partners have provided support through co-financing, their branding policies and requirements should be similarly applied.

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Monitoring & Evaluation Workplan and Budget

Type of M&E activity Responsible Parties Budget US$ Excluding project team staff

time

Time frame

Inception Workshop and Report

Project Manager UNDP CO

Indicative cost: 20,000 Within first two months of project start up

Collect and analyse data on indicators of project results

UNDP RTA/Project Manager will oversee the hiring of specific studies and institutions, and delegate responsibilities to relevant team members.

Oversight by Project Manager Project team

To be finalized in Inception Phase and Workshop. Indicative cost: 20,000

Start, mid and end of project (during evaluation cycle) and annually when required.

ARR/PIR Project manager and team UNDP CO UNDP RTA UNDP EEG

None Annually

Periodic status/ progress reports

Project manager and team None Quarterly

Final Evaluation Project manager and team, UNDP CO UNDP RCU External Consultants (i.e. evaluation team)

Indicative cost: 85,000 At least three months before the end of project implementation

Project Terminal Report Project manager and team UNDP CO local consultant

None At least three months before the end of the project

Audit UNDP CO Project manager and team

Indicative cost: 30,000 Yearly

Visits to field sites UNDP CO UNDP RCU (as appropriate) Government representatives

None Yearly

TOTAL indicative COST Excluding project team staff time and UNDP staff and travel expenses US$ 145,000

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7. LEGAL CONTEXT This Project Document shall be the instrument referred to as such in Article I of the Standard Basic Assistance Agreement between the Government of Papua New Guinea and the United Nations Development Programme, signed by the parties on 7 April, 1981. The host country-implementing agency shall, for the purpose of the Standard Basic Assistance Agreement, refer to the government co-operating agency described in that Agreement. Consistent with the Article III of the Standard Basic Assistance Agreement, the responsibility for the safety and security of the implementing partner and its personnel and property, and of UNDP’s property in the implementing partner’s custody, rests with the implementing partner. The implementing partner shall: a) Put in place an appropriate security plan and maintain the security plan, taking into account the

security situation in the country where the project is being carried; b) Assume all risks and liabilities related to the implementing partner’s security, and the full

implementation of the security plan. UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of this agreement. The implementing partner agrees to undertake all reasonable efforts to ensure that none of the UNDP funds received pursuant to the Project Document are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This provision must be included in all sub-contracts or sub-agreements entered into under this Project Document.

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8. ANNEXES Annex 8.1: Risk Analysis

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# Description Date Identified

Type Impact & Probability Counter measures / management response

Owner Submitted /updated by

Last Update Status

1

Commitment of the GOPNG towards implementing REDD does not remain firm

Roadmap formulation (2010)

Political

High-level political support for REDD+ is required if Government agencies are to coordinate the development of a national programme. Probability = 2; Impact = 4; Risk = 8

Achieving high-level political support for REDD+ is contingent on successful progress of the international negotiations, and establishment of mechanisms to reward developing countries and/or people in developing countries for reductions in deforestation. High-level political support for REDD+ in PNG is dependent on the success of the already-established pilot projects. Support will be provided to selected pilots by UNDP.

UNDP CO will monitor

Assessment Note author

September 2012

Stable

2

Government agencies do not cooperate and coordinate activities effectively

Roadmap formulation (2010)

Organisational

Failure of Government agencies, especially FA and OCCD, to work together effectively would slow but would not prevent progress towards REDD+ Readiness. A perception of institutional competition would reduce overall commitment to REDD+ Probability = 3; Impact = 3; Risk = 9

The PNG REDD+ Taskforce has been explicitly established to mitigate this risk. The Taskforce’s decision-making process ensures adequate coordination and consensus between Government agencies. It will be critical that technical advisors under the FCPF coordinate with both FA and OCCD throughout implementation and avoid perceptions of bias.

PNG REDD+ Taskforce and UNDP will monitor

Assessment Note author

September 2012

Stable

3 Donor coordination is ineffective

Roadmap formulation (2010)

Organisational

Lack of donor coordination could restrict the effectiveness of achieving REDD+ Readiness through a partnership of development partners. Probability = 1; Impact = 2; Risk = 2

Donor governance structures include representatives from other key donors. GOPNG and development partners are currently examining options for an integrated governance structure for all donor-supported interventions

UNDP CO and UNDP Regional Advisor

Assessment Note author

September 2012

Improving

4

Sub-national authorities do not share central government’s commitment to REDD

Roadmap formulation (2010)

Political

It is inevitable that there will be variation in the level of commitment among sub-national partners; where commitment is low, developing capacity to implement REDD will be slow. Ultimately, it is to be

Capacity development in 2 provinces under Key Result 4 will take account of variation in provincial capacities, awareness and support. Linkage to existing pilot project activities needs to be taken into account.

Technical Advisors will be responsible for reporting to UNDP CO on any early indications

Assessment Note author

September 2012

Stable

95

expected that national implementation of REDD will take account of poor progress in some provinces/districts Probability = 2; Impact = 2; Risk = 4.

of lack of commit-ment at provincial level

5

Programme inputs (funds, human resources, etc.) are not mobilized in a timely fashion

Roadmap formulation (2010)

Operational

Most of the outputs in the programme logframe are inter-connected so slow mobilization of inputs to one component will slow down the whole programme. Probability = 2; Impact = 2; Risk = 4

Building on structures and processes established under UN-REDD and PNG REDD, and rapid recruitment of technical advisors should reduce the probability and impact of this risk

Technical advisors will be responsible for reporting to UNDP CO on potential delays in mobilizing inputs

Assessment Note author

September 2012

Improving

6

Influential stakeholders who could profit from REDD+ take over the national REDD+ Readiness process

Roadmap formulation (2010)

Political

It is recognized that some stakeholders could profit significantly from REDD+ and could be tempted to take over the national REDD+ Readiness process. This would compromise the program. Probability = 1; Impact = 3; Risk = 6.

Empowering the PNG REDD+ Taskforce and quickly demonstrating progress should reduce the risk of other influential stakeholders hijacking the process.

FA and Program Coordinator will be responsible for monitoring

Assessment Note author

September 2012

Stable

7

Upstream planning processes potentially pose environmental or social impacts or are vulnerable to environmental and social change

Social/ environmental screening (Aug. 2012)

Political/social and environmental

Historically, not all policy decisions affecting the forest sector in PNG have adequately considered social or environmental impacts Probability = 2 Impact = 3 Risk = 6

Empowering the PNG REDD+ Taskforce and quickly demonstrating progress will build and maintain confidence in and ownership of REDD+ processes at the highest level

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

8

Downstream activities that potentially pose environmental and

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Past and current land management practices have not always been consistent with national policies, and

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This promotes

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

96

social impacts or are vulnerable to environmental and social change

have had adverse social or environmental impacts Probability = 3 Impact = 3 Risk = 9

active engagement of non-governmental stakeholders, which will promote a high level of consideration of potential social and environmental impacts

9

Potential environmental and social impacts that could affect indigenous people or other vulnerable groups

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

IPs have historically been marginalized, and consequently have been exposed to social or environmental impacts Probability = 2 Impact = 2 Risk = 4

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This promotes active engagement of non-governmental stakeholders including Indigenous Peoples, which will help to safeguard against potential negative impacts.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Improving

10

Potential impact on gender equality and women’s empowerment

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could impact gender equality and women’s empowerment Probability = 2 Impact = 2 Risk = 4

A gender balance in REDD+ Readiness governance structures will be actively sought. A dedicated gender advisor will be recruited.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

11

Potential for variable impacts on women and men, different ethnic groups, social classes

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could have variable impacts on different groups Probability = 2 Impact = 3 Risk = 6

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This promotes active engagement of various vulnerable groups, which will promote a high level of consideration of potential social and environmental impacts

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

12

Potential human rights implications for vulnerable groups?

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could adversely affect human rights Probability = 2 Impact = 3 Risk = 6

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This will help to reduce the potential for human rights impacts.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

13

Potential to have impacts that could affect women’s and men’s ability to use, develop

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could impact women’s and men’s ability to use, develop and protect natural resources

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This promotes active engagement of non-

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

97

and protect natural resources and other natural capital assets

and other natural capital assets Probability = 1 Impact = 2 Risk = 2

governmental stakeholders, which will help to reduce the risk of negative impacts in access to natural resources.

14

Potential to significantly affect land tenure arrangements and/or traditional cultural ownership patterns

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inappropriate REDD+ implementation could impact land tenure or cultural ownership patterns Probability = 2 Impact = 3 Risk = 6

Governance structures for REDD+ Readiness in PNG include an Advisory Group to the National REDD+ Task Force (see Figure 5). This ensures active engagement of vulnerable groups, which will reduce risks of impacts on land tenure or traditional/cultural ownership.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

15

Potential impact of currently approved land use plans (e.g. roads, settlements) which could affect the environmental and social sustainability of the project

Social/ environmental screening (Aug. 2012)

Political/ social and environmental

Inconsistencies between REDD+ readiness processes and existing plans could undermine impact and sustainability of results Probability = 2 Impact = 2 Risk = 4

Governance structures for REDD+ Readiness in PNG will strengthen coordination between central and local (provincial) levels, thus reducing this risk.

UNDP CO and UNDP Regional Advisor

Assessment Note author

N/A Stable

UNDP Environmental Finance Services Page 25

Annex 8.2: Terms of Reference

FCPF NATIONAL PROJECT MANAGER

Location : Port Moresby, PNG

Application Deadline : 03-Mar-14

Type of Contract : Service Contract

Post Level : NOC equivalent

Languages Required : English

Duration of Initial Contract : 1 year with possibility of extension

Background

REDD+ (reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries) is a recent global policy initiative to tackle climate change threats. The main goal of REDD+ is to prevent forest degradation and deforestation, and promote forest conservation through offering results-based payments as financial incentives to developing countries.

Duties and Responsibilities

The National Project Manager (NPM) will be accountable to both the National Project Director and to UNDP PNG for the overall management of the FCPF REDD+ readiness project for:

- the quality, timeliness and effectiveness of the services provided - the quality, timeliness and effectiveness of the activities carried out, and - the quality, timeliness and effectiveness of the use of funds.

1. Quality, timeliness and effectiveness of the services provided

- Working directly with the NPD/D-NPD, and supervising the FCPF PMU in the implementation of the FCPF project - Being the focal point for communications to the participating partners, national and regional organizations, and others

concerning the implementation of the project. - Providing a coordination and management structure for the implementation of the project, functioning in accordance with

the rules and procedures of UNDP.

- Based on agreed regular reporting and review schedule, (minimally annually, but recommended quarterly), submitting a report to the REDD+ TWG and the project executive board, incorporating reports received from contractors.

- Agreeing in advance with the project executive board on the exact progress reporting format and periodicity. 2. Quality, timeliness and effectiveness of the activities carried out

- Maintaining constructive relations with key project stakeholders, including Government institutions, donors and NGO partners, informing them and consulting with them as appropriate regarding strategic project decisions, and, in discussion with the international and national technical advisors, promoting the balanced participation of different Government entities in project activities and benefits;

- Providing support to UNDP in the preparation of annual reports, incorporating inputs provided by project contractors in relation to each of the project’s components;

- Supporting contractors in the preparation of Annual Work Plans and Budgets (AWPBs) and review of the AWPBs prior to their presentation to the Project Board for approval, in order to ensure their feasibility, relevance, correspondence with project resource availability and the harmonization of the activities proposed under each component; and

- Working together with international and national technical advisors review and updating of project risk log and corresponding mitigations strategies.

3. Quality, timeliness and effectiveness of the use of funds

- Reviewing quarterly work plans, expenditure reports and disbursement requests prepared by contractors, and recommendation to UNDP regarding their approval or, where necessary, modification prior to approval; and

- Overseeing the work of the finance and procurement officer. Supervision, Teamwork and Administrative Support

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The National Programme Manager will be supervised by the National Programme Director. Administrative support will be supplied by the FCPF Team, and where needed by UNDP (e.g. regarding contractual issues). The individual will also work closely with stakeholders from other relevant ministries/agencies, provincial and district representatives, and bilateral and multilateral development partners. Impact of Results The results will create the following impacts:

- Improved management of the FCPF project - Strengthened coordination between the FCPF project and other initiatives supporting REDD+ readiness activities

- Effective dissemination of lessons from the FCPF project within PNG and to the international community

Competencies

Corporate Competencies: - Demonstrates commitment to UNDP’s mission, vision and values; - Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability; and - Ability to maintain effective rapport with different kinds of people.

Functional Competencies: Knowledge Management and Learning

- Shares knowledge and experience; and - Actively works towards continuing personal learning, acts on learning plan and applies newly acquired skills.

Development and Operational Effectiveness

- Strong analytical skills and the ability to master new material quickly; - Ability to manage priorities in order to meet tight deadlines; and - Good communications, interpersonal and report writing skills. - Creativity and innovation abilities

Leadership and Self-Management

- Focuses on result for the client and responds positively to feedback; - Consistently approaches work with energy and a positive, constructive attitude; - Remains calm, in control and good humored even under pressure; - Ability to manage the work of teams, subordinates and consultants; - Proven ability to work flexibly and independently as part of an interdisciplinary and/or multi-cultural team; and delivery

quality results against tight deadlines; and - Demonstrated capacity for leadership and management.

Required Skills and Experience

- Diploma (Master’s degree preferable) in Forestry, Natural Resource Management, or other relevant discipline - At least 7 years’ experience with the management of complex projects and programmes (UN experience a distinct

advantage). - Experience working with Government counterparts as well as representatives from development agencies. - Experience in working on REDD+ is an advantage. - High computer literate with experience of website design and maintenance and working with graphic design packages is an

advantage. - Fluency in spoken and written Tok Pidgin and English.

100

INTERNATIONAL TECHNICAL ADVISOR

Location : Port Moresby, PNG

Application Deadline : 03-Mar-14

Type of Contract : Service Contract

Post Level : P-4

Languages Required : English

Duration of Initial Contract : 1 year with possibility of extension

Background

REDD+ (reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries) is a recent global policy initiative to tackle climate change threats. The main goal of REDD+ is to prevent forest degradation and deforestation, and promote forest conservation through offering results-based payments as financial incentives to developing countries. In 2008, World Bank’s Forest Carbon Partnership Facility (FCPF) was established to support developing countries to be ready for the REDD+ implementation. For the implementation of the FCPF project in PNG, UNDP has been selected as a delivery partner.

Duties and Responsibilities

Summary of key functions:

1. Support the day-to-day management of the FCPF project through provision of technical advice, including coordination across agencies and with other programmes.

2. Provide advice to Government counterparts and facilitate knowledge building activities among stakeholders 1. Support the day-to-day management of FCPF project through provision of technical advice, including coordination across

agencies and with other programmes: - Provide close and regular technical backstopping to National Programme Manager and PMU, and other implementing

entities; - Review of relevant policies and development of policy frameworks as well as the institutional arrangements for REDD+

development; - Organisation of and substantive contributions to a high level policy dialogue on development of a PNG REDD+ Programme; - Support the National Programme Manager and PMU in coordinating and supervising activities of national and international

experts /consultants to secure timely production of planned outputs and the review of these outputs; - National Programme Director and National Programme Manager to coordinate and liaise with stakeholders – including line

ministries, development partners, civil society, indigenous peoples and the private sector; - Ensure coordination with other REDD+ initiatives; - Ensure communication between different government agencies, national and international initiatives and stakeholders.

2. Provide advice to Government counterparts and facilitate knowledge building focusing on achievement of the following

results: - Provide support and technical advice to the development of policy options and strategy for the design and

implementation of the PNG REDD+ Programme to the GOPNG and other development actors including support on the development of:

i. Benefit distribution mechanisms ii. A national registry

iii. Conflict resolution mechanisms iv. Other elements of National REDD+ development as required

- Share knowledge on REDD+ by documenting lessons learnt and best practices from the FCPF project and contributing to the development of knowledge based tools (including policies, strategies, guidelines, etc.);

- Provide timely quality information and technical advice to the GOPNG, UN Country Team, implementing partners, line ministries and other partners to ensure effective development and delivery of the FCPF project;

- Coordinate institutional capacity assessments of relevant national, provincial and local entities along the REDD+ supply chain; and

- Assist in the identification of technical expertise and lead on the preparation of TORs, identification and evaluation of experts, and reviewing reports produced;

101

- Support to UNFCCC negotiations relating to REDD+. Impact of Results It is anticipated that the work of the Technical Advisor will have the following impacts:

- Increased understanding of National REDD+ Process amongst key stakeholder within government and outside - FCPF contributions to the National REDD+ process are effectively coordinated with work of other programmes and projects

working on REDD+ and related issues - Information gained from the development and implementation of the FCPF project and PNG REDD+ Programme is shared at

both the country and international levels - Enhanced capacity within PNG to further develop and implement a national approach to REDD+

Competencies

Corporate Competencies:

- Promoting Ethics and Integrity / Creating Organizational Precedents

- Building support and political acumen

- Building staff competence, Creating an environment of creativity and innovation

- Building and promoting effective teams

- Creating and promoting enabling environment for open communication

- Creating an emotionally intelligent organization

- Leveraging conflict in the interests of UNDP & setting standards

- Sharing knowledge across the organization and building a culture of knowledge sharing and learning

- Fair and transparent decision making; calculated risk-taking Functional Competency:

Advocacy / Advancing Policy Oriented Agenda: analysis and creation of messages and strategies

- Creates effective advocacy strategies

- Contributes to the elaboration of advocacy strategies by identifying and prioritizing audiences and communication means

- Performs analysis of political situations and scenarios, and contributes to the formulation of institutional responses

- Uses the opportunity to bring forward and disseminate materials for advocacy work

Building Strategic Partnerships: Identifying and building partnerships

- Effectively networks with partners seizing opportunities to build strategic alliances relevant to the UN’s mandate and strategic agenda related to REDD+

- Sensitizes UN Partners, donors and other international organizations to FCPF’s strategic agenda, identifying areas for joint efforts

- Develops positive ties with civil society to build/strengthen FCPF’s mandate

- Identifies needs and interventions for capacity building of counterparts, clients and potential partners

- Displays initiative, sets challenging outputs for him/herself and willingly accepts new work assignments

- Takes responsibility for achieving agreed outputs within set deadlines and strives until successful outputs are achieved

Innovation and Marketing new Approaches: Developing new approaches

- Seeks a broad range of perspectives in developing project proposals

- Generates for regional and innovative ideas and effective solutions to problems

- Looks at experience critically, drawing lessons, and building them into the design of new approaches

- Identifies new approaches and promotes their use in other situations

- Documents successes and uses them to project a positive image

- Creates an environment that fosters innovation and innovative thinking

- Makes the case for innovative ideas from the team with own supervisor

Promoting Organizational learning and Knowledge Sharing: Developing tools and mechanisms

- Makes the case for innovative ideas documenting successes and building them into the design of new approaches

- Identifies new approaches and strategies that promote the use of tools and mechanisms

- Develops and/or participates in the development of tools and mechanisms, including identifying new approaches to promote individual and organizational learning and knowledge sharing using formal and informal methodologies

102

Job Knowledge and Technical Expertise: In-depth knowledge of the Subject-matter

- Understands more advanced aspects of primary area of specialization as well as the fundamental concepts of related disciplines

- Serves as internal consultant in the area of expertise and shares knowledge with staff

- Continues to seeks new and improved methods and systems for accomplishing the work of the unit

- Keeps abreast of new developments in area of professional discipline and job knowledge and seeks to develop him/herself professionally

- Demonstrates comprehensive knowledge of information technology and applies it in work assignments

- Demonstrates comprehensive understanding and knowledge of the current guidelines and project management tools and utilizes these regularly in work assignments

Global Leadership and Advocacy for FCPF’s Goals: Analysis and creation of messages and strategies

- Creates effective global advocacy messages/strategies

- Contributes to the elaboration of a global advocacy strategy by identifying and prioritizing audiences and messages

- Performed analysis of political situations and scenarios, and contributes to the formulation of institutional responses

- Uses the opportunity to bring forward and disseminate materials for global advocacy work and adapts it for use at country level

Client Orientation: Contributing to positive outcomes for the client

- Anticipates client needs

- Works towards creating an enabling environment for a smooth relationship between the clients and service provider

- Demonstrates understanding of client’s perspective

- Keeps the client informed of problems or delays in the provision of services

- Uses discretion and flexibility in interpreting rules in order to meet client needs and achieve organizational goals more effectively

- Solicits feedback on service provision and quality

Required Skills and Experience

- Master degree in Environmental Science, Natural Resource Management, Environmental Economics, or similar. - At least 5 years of working experience on REDD+, conservation, resource management, forest economic policy and

community development livelihoods with experience in PNG preferable. - Strong facilitation and coordination skill - Experience of working in multinational teams to implement programmes involving different funding and implementing

agencies - Experience of implementing programmes across the UN agencies and across Government are definite advantages - Experience the REDD+ developments at international, national and local levels. - Knowledge on the UNFCCC negotiations, decisions and guidelines for national systems in the context of REDD+, as well as

national and international best practices within REDD+ and other natural resource management initiatives. - Proficiency in both spoken and written English; some competency in spoken Tok Pidgin is preferable.

103

FCPF COMMUNICATIONS OFFICER

Location : Port Moresby, PNG

Application Deadline :

Type of Contract : Service Contract

Post Level : SC-6/7

Languages Required : Tok Pidgin/English

Duration of Initial Contract : 1 year with possibility of extension

Background

REDD+ (reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries) is a recent global policy initiative to tackle climate change threats. The main goal of REDD+ is to prevent forest degradation and deforestation, and promote forest conservation through offering results-based payments as financial incentives to developing countries. In 2008, World Bank’s Forest Carbon Partnership Facility (FCPF) was established to support developing countries to be ready for the REDD+ implementation. For the implementation of the FCPF project in PNG, UNDP has been selected as a delivery partner.

Duties and Responsibilities

To lead in ensuring that information on the FCPF project and PNG REDD+ Programme is communicated effectively to other stakeholders in PNG and internationally.

- Lead and provide guidance on implementation, and updating as required a communication, consultation and participation strategy for the PNG REDD+ programme

- Set up and develop communication tools and information for the FCPF and national readiness process - Coordinate engagement with the media and act as a focal point for enquires - Support measures to ensure full and effective participation of all stakeholders in the FCPF project and PNG REDD+

programme - Support the FCPF Team in other relevant activities.

1. Set up and develop communication tools for the FCPF and national readiness process:

- Manage the PNG REDD+ Web site (oversight of development, responsible for maintenance) - Manage the REDD+ PNG Facebook page and Twitter account - Prepare project updates - Prepare and assist in providing radio broadcasts or other communication outputs

2. Coordinate engagement with the media and act as a focal point for enquires: - Coordinate with other organisations and initiatives in the dissemination of information on the PNG REDD+ programme; - Provide regular updates on the PNG REDD+ Programme progress to stakeholders at the sub-national, national and

international level; - Design and produce key outputs and their dissemination to stakeholders; - Develop and review quality of outputs intended for wider circulation produced by consultants or other contracted entities; - Develop and translate information for distribution to key stakeholder groups; - Work closely with the consultation and participation technical working group to identify communication needs and lead the

development and updating of the communication, consultation and participation plan; - Ensure the transparency and availability of the information to the various stakeholder groups - Develop communication materials that can reach the different stakeholders group on the different issue (policies and

measures, MRV, benefit distribution system etc.) 3. Support the FCPF Team in other relevant activities:

- Assist in preparation of workplans; - Support the preparation of minutes for wider circulation, and translate and interpretation for foreign project staff and

consultants when required

Impact of Results

104

It is anticipated that the work of the communication officer will have the following impacts: - A broad range of stakeholders relevant to REDD+ are aware of the PNG REDD+ programme and the role of the FCPF project

within this - Information on the FCPF project and PNG REDD+ programme is easily available to majority of stakeholders - Processes for stakeholder engagement are developed

- Communication and consultation processes developed through the FCPF project and PNG REDD+ programme are effectively coordinated with other initiatives

Competencies

Corporate Competencies: - Demonstrates commitment to UNDP’s mission, vision and values; - Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability; and - Ability to maintain effective rapport with different kinds of people.

Functional Competencies: Knowledge Management and Learning

- Shares knowledge and experience; and - Actively works towards continuing personal learning, acts on learning plan and applies newly acquired skills.

Development and Operational Effectiveness - Strong analytical skills and the ability to master new material quickly; - Ability to manage priorities in order to meet tight deadlines; and - Good communications, interpersonal and report writing skills. - Creativity and innovation abilities

Leadership and Self-Management

- Focuses on result for the client and responds positively to feedback; - Consistently approaches work with energy and a positive, constructive attitude; - Remains calm, in control and good humored even under pressure; - Ability to manage the work of teams, subordinates and consultants; - Proven ability to work flexibly and independently as part of an interdisciplinary and/or multi-cultural team; and delivery

quality results against tight deadlines; and - Demonstrated capacity for leadership and management.

Required Skills and Experience

- Diploma (Bachelor’s degree preferable) in English, Information technology, media or other relevant discipline. - At least 5 years of professional experience in developing and implementing communication strategies. - Experience utilising communication tools to reach varied audiences from rural communities to successful business

representatives and international representatives. - Experience working with Government counterparts as well as representatives from development agencies. - Experience in working on REDD+ is an advantage. - High computer literate with experience of website design and maintenance and working with graphic design packages is an

advantage. - Fluency in spoken and written Tok Pidgin and English.

105

FCPF STAKEHOLDER ENGAGEMENT OFFICER

Location : Port Moresby, PNG

Application Deadline :

Type of Contract : Service Contract

Post Level : SC-6

Languages Required : Tok Pidgin/English

Duration of Initial Contract : 1 year with possibility of extension

Background

REDD+ (reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries) is a recent global policy initiative to tackle climate change threats. The main goal of REDD+ is to prevent forest degradation and deforestation, and promote forest conservation through offering results-based payments as financial incentives to developing countries. In 2008, World Bank’s Forest Carbon Partnership Facility (FCPF) was established to support developing countries to be ready for the REDD+ implementation. For the implementation of the FCPF project in PNG, UNDP has been selected as a delivery partner.

Duties and Responsibilities

To lead in ensuring that information on the FCPF project and PNG REDD+ Programme engages effectively to other stakeholders in PNG and internationally.

- Support measures to ensure full and effective participation of all stakeholders in the FCPF project and PNG REDD+ programme

- Support the FCPF Team in other relevant activities. 1. Support measures to ensure full and effective participation of all stakeholders in the FCPF project and PNG REDD+ programme:

- Identify different ways in which stakeholder groups can be engaged and the most appropriate approaches to sharing information, consulting and supporting participation on and in the programme;

- Work with different stakeholder groups in the development of a comprehensive communication, consultation and participation strategy;

- Support the stakeholder engagement process in the REDD+ readiness and implementation stages; - Support the development of a National Guidelines on Free, Prior and Informed Consent and support recourse systems for

complaints and concerns arising from FCPF project activities in PNG - Support to processes to ensure gender considerations are adequately addressed in the National REDD+ Strategy

2. Support the FCPF Team in other relevant activities:

- Assist in preparation of workplans; - Support the preparation of minutes for wider circulation, and translate and interpretation for foreign project staff and

consultants when required

Impact of Results It is anticipated that the work of the stakeholder engagement officer will have the following impacts:

- A broad range of stakeholders relevant to REDD+ are aware of the PNG REDD+ programme and the role of the FCPF project within this

- Processes for stakeholder engagement are developed in line with the principles listed within the REDD+ Roadmap as well as international guidance

Competencies

Corporate Competencies: - Demonstrates commitment to UNDP’s mission, vision and values; - Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability; and

106

- Ability to maintain effective rapport with different kinds of people. Functional Competencies: Knowledge Management and Learning

- Shares knowledge and experience; and - Actively works towards continuing personal learning, acts on learning plan and applies newly acquired skills.

Development and Operational Effectiveness - Strong analytical skills and the ability to master new material quickly; - Ability to manage priorities in order to meet tight deadlines; and - Good communications, interpersonal and report writing skills. - Creativity and innovation abilities

Leadership and Self-Management

- Focuses on result for the client and responds positively to feedback; - Consistently approaches work with energy and a positive, constructive attitude; - Remains calm, in control and good humored even under pressure; - Ability to manage the work of teams, subordinates and consultants; - Proven ability to work flexibly and independently as part of an interdisciplinary and/or multi-cultural team; and delivery

quality results against tight deadlines; and - Demonstrated capacity for leadership and management.

Required Skills and Experience

- Diploma (Bachelor/Master degree preferable) in business management, social science, natural resource management or other relevant discipline.

- At least 5 years of professional experience in stakeholder engagement, social/community development or related discipline. - Experience working with a range of different stakeholders to support their engagement and awareness of development

programmes or private sector initiatives. - Experience working with Government counterparts as well as representatives from development agencies. - Experience in working on REDD+ is an advantage. - High computer literate with experience of website design and maintenance and working with graphic design packages is an

advantage. - Fluency in spoken and written Tok Pidgin and English.

107

FCPF ADMIN, FINANCE AND PROCUREMENT OFFICER

Location : Port Moresby, PNG

Application Deadline : 03-Mar-14

Type of Contract : Service Contract

Post Level : SC-6/7

Languages Required : English

Duration of Initial Contract : 1 year with possibility of extension

Background

REDD+ (reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries) is a recent global policy initiative to tackle climate change threats. The main goal of REDD+ is to prevent forest degradation and deforestation, and promote forest conservation through offering results-based payments as financial incentives to developing countries.

Duties and Responsibilities

The overall objective of the assignment is to ensure efficient and effective implementation of the REDD+ PNG Programme through the development of effective systems and the building of staff capacity. Specifically the Officer’s role will focus in on financial management and procurement using funds provided by government and development partners for administration by the PMU:

1. Provide support to Programme Planning and Coordination 2. To develop, implement and improve Accounting and Reporting Procedures 3. To ensure strong financial and operational control 4. To conduct Bank reconciliation 5. To develop Procurement processes and Inventory Register 6. To support programme administration 7. To provide Oversight and Training to implementing agencies;

1. Provide support to Programme Planning and Coordination

- Work with the Head and Deputy Head of the PMU and finance staff in the preparation of work plans, allocation of budgets and request for budgets from contributing agencies;

- Prepare documentation to ensure the flow of funds for project implementation occurs on a timely basis – this will require development of specific financial documentation and provision of support to exiting government staff in developing similar documentation;

- Participate in work planning and progress reporting meetings with the Chair of the REDD+ TWG and Head/Deputy Head of the PMU;

- Coordinate financial management between participating agencies as well as coordination with other relevant development partner or government funds.

2. To develop, implement and improve Accounting and Reporting Procedures

- Review and update Standard Operating Procedures for procurement, inventory and financial management - Ensure the establishment of an effective inventory system for all equipment purchased by the PMU - Provide oversight of financial management and procurement process processes to ensure they are conducted in accordance

with partner guidelines - Ensure that petty cash transactions are effectively maintained. This includes writing of receipts, preparation of payment

request form, receipt and disbursement of cash and clearance of advances; - Prepare project financial reports and submit to relevant officials for clearance; - Enter financial transactions into the computerised accounting system; - Reconcile all balance sheet accounts and keep a file of all completed reconciliation.

3. To ensure strong financial and operational control

- Check and ensure all expenditures of project are in accordance with relevant procedures. This includes ensuring that receipts are obtained for all payments and that correct procurement procedures are followed;

- Check budget lines to ensure that all transactions are correctly booked to the correct budget lines; - Ensure documentation relating to payments are duly approved;

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- Ensure Petty Cash is reviewed and updated and records are kept up-to-date; - To continuously improve system & procedures to enhance internal controls and satisfy audit requirements.

4. To conduct Bank reconciliation - Bank accounts should be reconciled and reported on a monthly basis

5. To develop Procurement processes and Inventory Register

- Establish a procurement system and ensure all procurement is conducted according to relevant guidelines; - Establish and maintain a proper inventory of project assets register, including numbering, recording, and reporting; - Maintain the inventory file to support purchases of all equipment/assets. - Ensure programme staff are able to maintain inventory of equipment and are updating and managing information on a

timely basis 6. To support programme administration and coordination

- To provide oversight to the calculation and preparation of staff time records; - Provide assistance to organization of events, including workshops, seminars, and meetings - Identify potential opportunities for linkages and synergies between existing programmes.

Impact of Results The results will create the following impacts:

- Improved financial management and procurement for the REDD+ PNG programme - A clear manual for procurement and financial management - Improved understanding of development partner regulations and requirements

- Good audit reports

Competencies

Corporate Competencies:

Demonstrates commitment to GOPNG’s mission, vision and values; Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability; and Ability to maintain effective rapport with different kinds of people.

Functional Competencies: Knowledge Management and Learning

Shares knowledge and experience; and Actively works towards continuing personal learning, acts on learning plan and applies newly acquired skills.

Development and Operational Effectiveness

Strong analytical skills and the ability to master new material quickly; Ability to manage priorities in order to meet tight deadlines; and Good communications, interpersonal and report writing skills. Creativity and innovation abilities

Leadership and Self-Management

Focuses on result for the client and responds positively to feedback; Consistently approaches work with energy and a positive, constructive attitude; Remains calm, in control and good humored even under pressure; Ability to manage the work of teams, subordinates and consultants; Proven ability to work flexibly and independently as part of an interdisciplinary and/or multi-cultural team; and delivery

quality results against tight deadlines; and Demonstrated capacity for leadership and management.

Required Skills and Experience

Diploma (Bachelor’s degree preferable) in Finance, Economics, Accounting, Administration or a related field.

At least 7 years of experience in positions relating to providing administrative support and/or with financial and

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procurement systems, portfolio and administration preferably for foreign funded environmental projects.

Excellent knowledge of the administrative, finance and procurement procedures of the Government, and development agencies.

Experience working with Government agencies to build their capacity and support them in the development of nationally implemented programmes.

Experience working in a multinational multi-skilled team and to coordinating activities with other partners to achieve the best long-term results for the programme and the Ministries and Agencies with whom they are working.

Experience in the usage of computers and office software packages for data analysis and technical reports; ability and willingness to work in remote areas.

Fluency in spoken and written Tok Pidgin and English.

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Programme Period: 2012-2015 Atlas Award ID: ______________ Project ID: ______________ PIMS # ______________ Start date: Jan. 2015 End Date Sept. 2018 Management Arrangements NIM (UNDP) PAC Meeting Date ______________

9. SIGNATURE PAGE

Country: Papua New Guinea UNDAF Outcome (s)/Indicator (s): By 2018, Government and civil society have enhanced capacity to implement biodiversity conservation, low carbon and climate resilient development initiatives for environmental sustainability and improved livelihood to reduce the vulnerability of women, girls, men and boys to disaster risks CPAP Outcome (s)/Indicator (s): “By 2015, GoPNG and civil society have enhanced their capacity to implement biodiversity conservation, low carbon and climate-resilient development initiatives for environmental sustainability and improved community livelihoods to reduce the vulnerability of women, girls, men and boys to disaster risks” CPAP Output (s)/Indicator (s): Promote Low Carbon Growth and Climate Resilient Economic Development. “Public institutions, private sector and local communities enhance the implementation of low carbon growth and climate resilient development initiatives for environmentally sustainable economic growth”. Executing Entity/Implementing Partner: OCCD

Agreed by (Government): Ms Juliana Kubak

NAME SIGNATURE Date/Month/Year Agreed by (Executing Entity/Implementing Partner): Mr Varigini Badira

NAME SIGNATURE Date/Month/Year Agreed by (UNDP): Mr Roy Trivedy

NAME SIGNATURE Date/Month/Year

Total resources required $3.8M Total allocated resources: ________________ Regular ________________ Other:

o FCPF $3.8M o Government ________________ o In-kind ________________ o Other ________________

In-kind contributions ________________ ________________

UNDP Environmental Finance Services Page 25

ANNEX IV: UNDP ENVIRONMENTAL AND SOCIAL SCREENING PROCEDURE Social and Environmental Screening Template The completed template must be included as an annex to the Project Document Note: this annotated template will be converted into an online tool. The online version will guide users through the process and will include linked definitions and context-specific guidance. The template provides space for user comments.

PART A SESP SUMMARY REPORT Project Information Project Information

1. Project Title Papua New Guinea Forest Carbon Partnership Facility project

2. Project Number

3. Location (Global/Region/Country) Papua New Guinea

Enhancing Opportunities for Strengthening Social and Environmental Sustainability This section is intended to help identify and document how key elements of the SES Overarching Policy and Principles (i.e. a human rights-based approach to development programming, gender equality and women’s empowerment, and environmental sustainability) have been addressed by the Project in order to enhance social and environmental sustainability. The questions in this part do not seek to identify potential adverse social and environmental risks (addressed below by Questions 2-6). Instead the questions help to ensure that opportunities for promoting social and environmental sustainability have been considered during Project development.

QUESTION 1: How Does the Project Enhance Opportunities to Strengthen Social and Environmental Sustainability?

1. Human Rights-Based Approach INSTRUCTIONS: Describe how the 3 SES overarching principles have been considered in Project design by answering the sub-questions below Comments

1.1 Describe how the Project mainstreams the human-rights based approach60

60 The UN Statement of Common Understanding on Human Rights-Based Approaches to Development Cooperation and Programming (the Common Understanding) seeks to ensure that UN agencies, funds and programmes apply a consistent Human Rights-Based Approach to common programming processes at global and regional levels, and especially at the country level in relation to the CCA and UNDAF. The Common Understanding notes that

All programmes of development co-operation, policies and technical assistance should further the realisation of human rights as laid down in the Universal Declaration of Human Rights and other international human rights instruments

Human rights standards contained in, and principles derived from, the Universal Declaration of Human Rights and other international human rights instruments guide all development cooperation and programming in all sectors and in all phases of the programming process

See more at http://hrbaportal.org/the-human-rights-based-approach-to-development-cooperation-towards-a-common-understanding-among-un-agencies.

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The project will comply with all relevant national laws and obligations under international law. The legal framework, including PNG international obligations, will be assessed in SESA and measures adopted to ensure the project is in compliance.

The goal of the project is to strengthen the capacities of all stakeholders to manage forests sustainably so as to reduce net emissions from forestry. Project activities will therefore ensure the availability, acceptability, accessibility and quality of all project services and benefits, to all relevant stakeholders.

Through activities under Output 1.3 (stakeholder consultation and participation process) the project will provide a supportive environment and process for meaningful participation and inclusion of all stakeholders, in particular marginalized individuals and groups that may be affected by the Project; through, inter alia, stakeholder mapping and provision of information in Tok Pigin.

Grievance redress processes will be available for stakeholders to raise concerns at all stages of the Project, directly with project staff with the project manager as the key focal point.

2. Gender Equality and Women’s Empowerment

2.1 Describe how the Project is likely to improve gender equality and women’s empowerment

A gender balance in project governance and activities will be actively sought.

The project will focus on improving the capacities of women to engage on an equal basis in the project, and more widely in REDD+ implementation in PNG, and will promote the active participation of women in the implementation of project activities.

Through the SESA, a base map of communities that includes gender indicators will be constructed, calling upon gender experts for specialised input, as necessary.

3. Environmental Sustainability

3.1 Describe how the Project mainstreams environmental sustainability The project will support the implementation of national environmental sustainability priorities identified in the UNDAF, country analysis, and country commitments under Multilateral Environmental Agreements (MEAs), including UNFCCC and CBD.

The project will strengthen environmental management capacities of government and non-government country counterparts.

The project will address a key environment-development linkage between development and environmental degradation (using deforestation and forest degradation as proxy indicators).

Identifying and Managing Social and Environmental Risks Users must first complete Section B Social and Environmental Risk Screening Checklist in order to answer Questions 2-6 in the Summary Report. Results should also be tracked in the Project Risk Log.

QUESTION 2: Based on Screening of Risks, Which Specific Principles/Standards are Applicable to the Project?

Comments

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INSTRUCTIONS: Complete the Section B risk screening checklist and then indicate which (if any) SES principles and standards apply to the Project (based on any “Yes” responses). It must be noted that the Overarching Principles are applicable to all Projects. The intent here is to indicate whether particular risks associated with the principles have been identified

Principle 1: Human Rights ☐

Principle 2: Gender Equality and Women’s Empowerment ☐

Principle 3: Environmental Sustainability (see relevant standards below)

1. Biodiversity Conservation and Natural Resource Management ☐

2. Climate Change Mitigation and Adaptation ☐

3. Community Health, Safety and Working Conditions ☐

4. Cultural Heritage ☐

5. Displacement and Resettlement ☐

6. Indigenous Peoples ☐

7. Pollution Prevention and Resource Efficiency ☐

QUESTION 3: Are there Potential Social and Environmental Risks? (from Part B Checklist)

QUESTION 4: What is the level of significance of the potential social and environmental risks? Note: Respond to Question 5 below before proceeding to Question 6

QUESTION 6: What social and environmental assessment and management measures have been conducted and/or are required to address potential risks (for Risks with Moderate and High Significance)?

INSTRUCTIONS: Describe briefly potential social and environmental risks identified in the risk screening checklist (based on any “Yes” responses)

INSTRUCTIONS: Estimate the level of significance (i.e. potential impact) and probability for each identified social and environmental risk Rate Impact (“I”) and Probability (“P”) on a scale of 1 (low) to 5 (high)

INSTRUCTIONS: Refer to paras. 42-54 of SESP guidance [linked] i. Describe briefly the social and environmental assessments

that may be required (per SES) and/or that may already have been conducted. Note: High Risk projects require full Environmental and Social Impact Assessments (ESIA) or Strategic Social and Environmental Assessments (SESA)

ii. Summarize the measures for avoiding and, if avoidance is not possible, mitigating and managing potential adverse social and environmental impacts

Rating Comments

Risk 1: Reforestation undertaken as a pilot REDD+ action is not aligned with local environmental and ecological conditions.

I = 3 P = 2

Extensive consultation with all relevant stakeholders will take place prior to the implementation of any REDD+ actions. Ecological conditions of pilot sites will be assessed prior to the implementation of any REDD+ actions, including drawing on data and information from PNG’s first national forest inventory. In addition, all REDD+ actions implemented will be compliant with the Cancun REDD+ safeguards, and will therefore be in line with the conservation of natural forests and biodiversity.

Risk 2: Indigenous stakeholders are not I = 4 A SESA will be developed that will include an ESMF, and specific

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adequately informed of project activities. P = 4 management plans (IPP, RAP) will be developed to address risks, as required by SES. A comprehensive approach will be taken by implementing partners in engaging stakeholders in field-level activities, based on their extensive experience and knowledge of communities’ potential project sites and lessons learned through pilot activity implementation through UN-REDD and other REDD+ initiatives. All activities will be in compliance with the Cancun REDD+ safeguards when implementing REDD+ actions.

Risk 3: Implementation of demonstration activities have inequitable impacts on affected populations.

I = 4 P = 4

A SESA will be developed that will include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES. Extensive stakeholder engagement, including FPIC, will be undertaken (and have already been initiated through the UN-REDD National Programme) prior to the implementation of any demonstration/pilot activities.

Risk 4: Project activities exclude affected stakeholders from participating in decisions that may affect them.

I = 4 P = 3

A SESA will be developed that will include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES. Extensive stakeholder engagement, including FPIC, will be undertaken (and have already been initiated through the UN-REDD National Programme) prior to the implementation of any activities.

Risk 5: Project activities have inequitable adverse impacts on gender equality and/or the situation of women and girls.

I = 4 P = 3

Extensive stakeholder engagement, including FPIC, will be undertaken (and have already been initiated through the UN-REDD National Programme) prior to the implementation of any activities. Project proponents will actively promote gender balancing and bring this forth as a policy issue in relation to REDD+ through the development of the National Strategy.

Risk 6: Project adversely affects or restricts women’s and men’s ability to use, develop and protect natural resources.

I = 4 P = 4

REDD+ demonstration activities designed through the project will go through many stages of development, consultation and refinement before moving to implementation. A SESA will be developed that will include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES.

Risk 7: Demonstration activities have adverse impacts within or adjacent to environmentally sensitive areas.

I = 3 P = 4

Project activities implemented in environmentally sensitive areas are most likely to support the conservation goals of these areas.

Demonstration activities will go through comprehensive consultation processes before being implemented to mitigate the risk of any adverse impacts in sensitive areas. A SESA will be developed that will include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES.

Risk 8: Project restricts local livelihood opportunities.

I = 4 P = 4

Extensive stakeholder engagement, including FPIC, will be undertaken (and have already been initiated through the UN-REDD National Programme) prior to the implementation of any activities. REDD+ demonstration activities designed through the project will go through many stages of development, consultation and refinement before moving to implementation. A SESA will be developed that will

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include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES.

Risk 9: Project affects customary rights to land and/or resources.

I = 4 P = 4

Field-level demonstration activities will be designed to work within the customary land tenure system; and their design will go through extensive consultation and FPIC at the local level before implementation. A SESA will be developed that will include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES.

Risk 10: Project impacts human rights of vulnerable groups.

I = 5 P = 3

Appropriate mitigation measures will be put in place within the project document, including a fully integrated SESA/ESMF, which will include further and more in depth consideration of the social and environmental impacts in the context of REDD+ implementation. In addition, the REDD+ TWG will promote active engagement of various vulnerable groups, which will facilitate and promote a high level of consideration of potential social and environmental impacts.

Risk 11: Displacement of indigenous peoples through access restrictions to lands.

I = 5 P = 1

REDD+ demonstration activities designed through the project will go through many stages of development, consultation and refinement before moving to implementation. A SESA will be developed that will include an ESMF, and specific management plans (IPP, RAP) will be developed to address risks, as required by SES. Participation in demonstration activities will be subject to FPIC and on a voluntary basis by local/indigenous people. In addition, the REDD+ TWG will promote active engagement of various vulnerable groups, which will facilitate and promote a high level of consideration of potential social and environmental impacts.

Risk 12: Downstream activities that potentially pose environmental and social impacts or are vulnerable to environmental and social change.

I = 3 P = 2

Appropriate mitigation measures will be put in place within the project document, including a fully integrated SESA/ESMF, which will include further and more in depth consideration of the social and environmental impacts in the context of REDD+ implementation.

Risk 13: Upstream planning processes potentially pose environmental or social impacts or are vulnerable to environmental and social change.

I = 3 P = 3

Appropriate mitigation measures will be put in place within the project document, including a fully integrated SESA/ESMF, which will include further and more in depth consideration of the social and environmental impacts in the context of REDD+ implementation.

QUESTION 5: What is the Overall Project Risk Categorization?

Comments

Low Risk ☐

Moderate Risk ☐

High Risk ☑

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Note: Low Risk: Minimal or no risks of adverse social or environmental impacts Moderate Risk: Risks limited in scale, readily identifiable, manageable through application of best practice measures High Risk: Risks potentially significant (e.g. high magnitude, intensity, irreversibility) or raise significant concerns among affected stakeholders

Final Sign Off Final Screening is not complete until the following signatures are included

QA Assessor Date Cleared by QA Approver Date Signed by PAC Chair Date Approved by Programme Manager Date

UNDP Environmental Finance Services Page 25

PART B SOCIAL AND ENVIRONMENTAL RISK SCREENING CHECKLIST Checklist Potential Social and Environmental Risks

INSTRUCTIONS: The risk screening checklist will assist in answering answer Questions 2-4 of the Screening Template. Answers to the checklist questions help to (1) identify potential risks, (2) determine the overall risk categorization of the project, and (3) determine required level of assessment and management measures

Important considerations:

Project activities are screened for their inherent social and environmental risks before the application of mitigation and management measures. It is necessary to form a clear picture of potential inherent risks in the event that mitigation measures are not implemented or fail

Screening for potential adverse social and environmental risks and impacts encompasses all activities outlined in the Project documentation and includes review of potential direct and indirect impacts in the Project’s area of influence61

Principles 1: Human Rights Answer (Yes/No)

1. Could the Project lead to adverse impacts on enjoyment of the human rights (civil, political, economic, social or cultural) of the affected population and particularly of marginalized groups?

Yes

2. Is there a likelihood that the Project would have inequitable or discriminatory adverse impacts on affected populations, particularly people living in poverty or marginalized or excluded individuals or groups? 62

Yes

3. Could the Project potentially restrict availability, quality of and access to resources or basic services, in particular to marginalized individuals or groups?

Yes

4. Is there a likelihood that the Project would exclude any potentially affected stakeholders, in particular marginalized groups, from fully participating in decisions that may affect them?

Yes

5. Have local communities or individuals, given the opportunity, raised human rights concerns regarding the Project during the stakeholder engagement process?

No

6. Is there a risk of significant stakeholder grievances? (e.g. significant concerns or disputes raised during the stakeholder engagement process)

Yes

7. Is there a risk that duty-bearers do not have the capacity to meet their obligations in the Project? No

8. Is there a risk that rights-holders do not have the capacity to claim their rights? No

9. Is there a risk that the Project would exacerbate conflicts among and/or the risk of violence to project-affected communities and individuals?

Yes

Principle 2: Gender Equality and Women’s Empowerment

1. Is there a likelihood that the proposed Project would have inequitable adverse impacts on gender equality and/or the situation of women and girls?

Yes

2. Would the Project potentially discriminate against women or other groups based on gender, especially regarding participation in design and implementation or access to opportunities and benefits?

No

3. Would the Project have impacts that could adversely affect women’s and men’s ability to use, develop and protect natural resources, taking into account different roles and positions of women and men in accessing environmental goods and services?

Yes

61 A Project’s area of influence encompasses (i) the primary Project site(s) and related facilities (e.g., access roads, pipelines, canals, disposal areas), (ii) associated facilities that are not funded as part of the project but whose viability and existence depend on the Project (e.g., transmission line to connect UNDP-supported hydropower facility), (iii) areas and communities potentially affected by cumulative impacts from the Project or from other relevant past, present and reasonably foreseeable developments in the geographic area (e.g. reduction of water flow in a watershed due to multiple withdrawals), and (iv) areas and communities potentially affected by induced impacts from unplanned but predictable developments or activities caused by the Project, which may occur later or at a different location (e.g. facilitation of settlements, illegal logging, agricultural activities by new roads in intact forest areas). 62 Prohibited grounds of discrimination include race, ethnicity, gender, age, language, disability, sexual orientation, religion, political or other opinion, national or social or geographical origin, property, birth or other status including as an indigenous person or as a member of a minority. References to “women and men” or similar is understood to include women and men, boys and girls, and other groups discriminated against based on their gender identities, such as transgender people and transsexuals.

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For example, activities that could lead to natural resources degradation or depletion in communities who depend on these resources for their livelihoods and well being

Principle 3: Environmental Sustainability: Screening questions regarding environmental risks are encompassed by the specific Standard-related questions below

Standard 1: Biodiversity Conservation and Sustainable Natural Resource Management

1.1 Would the Project potentially cause adverse impacts to habitats (e.g. modified, natural, and critical habitats) and/or ecosystems and ecosystem services? For example, through habitat loss, conversion or degradation, fragmentation, hydrological changes

Yes

1.2 Are any Project activities proposed within or adjacent to critical habitats and/or environmentally sensitive areas, including legally protected areas (e.g. nature reserve, national park), areas proposed for protection, or recognized as such by authoritative sources and/or indigenous peoples or local communities?

Yes

1.3 Does the Project involve changes to the use of lands and resources that may have adverse impacts on habitats, ecosystems, and/or livelihoods? (Note: if restrictions and/or limitations of access to lands would apply, refer to Standard 5)

Yes

1.4 Would Project activities pose risks to endangered species? No

1.5 Would the Project pose a risk of introducing invasive alien species? No

1.6 Does the Project involve harvesting of natural forests, plantation development, or reforestation? Yes

1.7 Does the Project involve the production and/or harvesting of fish populations or other aquatic species?

No

1.8 Does the Project involve significant extraction, diversion or containment of surface or ground water? For example, construction of dams, reservoirs, river basin developments, groundwater extraction

No

1.9 Does the Project involve utilization of genetic resources? (e.g. collection and/or harvesting, commercial development)

No

1.10 Would the Project generate potential adverse transboundary or global environmental concerns? No

1.11 Would the Project result in secondary or consequential development activities which could lead to adverse social and environmental effects, or would it generate cumulative impacts with other known existing or planned activities in the area? For example, a new road through forested lands will generate direct environmental and social impacts (e.g. felling of trees, earthworks, potential relocation of inhabitants). The new road may also facilitate encroachment on lands by illegal settlers or generate unplanned commercial development along the route, potentially in sensitive areas. These are indirect, secondary, or induced impacts that need to be considered. Also, if similar developments in the same forested area are planned, then cumulative impacts of multiple activities (even if not part of the same Project) need to be considered.

No

Standard 2: Climate Change

2.1 Will the proposed Project result in significant63 greenhouse gas emissions or may exacerbate climate change?

No

2.2 Would the potential outcomes of the Project be sensitive or vulnerable to potential impacts of climate change?

No

2.3 Is the proposed Project likely to directly or indirectly increase social and environmental vulnerability to climate change now or in the future (also known as maladaptive practices)? For example, changes to land use planning may encourage further development of floodplains, potentially increasing the population’s vulnerability to climate change, specifically flooding

No

Standard 3: Community Health and Safety

3.1 Would elements of Project construction, operation, or decommissioning pose potential safety risks to local communities?

No

3.2 Would the Project pose potential risks to community health and safety due to the transport, storage, and use and/or disposal of hazardous or dangerous materials (e.g. explosives, fuel and other

No

63 In regards to CO2, ‘significant emissions’ corresponds generally to more than 25,000 tons per year (from both direct and indirect sources). [The Guidance Note on Climate Change Mitigation and Adaptation provides additional information on GHG emissions.]

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chemicals during construction and operation)?

3.3 Does the Project involve large-scale infrastructure development (e.g. dams, roads, buildings)? No

3.4 Would failure of structural elements of the Project pose risks to communities? (e.g. collapse of buildings or infrastructure)

No

3.5 Would the proposed Project be susceptible to or lead to increased vulnerability to earthquakes, subsidence, landslides, erosion, flooding or extreme climatic conditions?

No

3.6 Would the Project result in potential increased health risks (e.g. from water-borne or other vector-borne diseases or communicable infections such as HIV/AIDS)?

No

3.7 Does the Project pose potential risks and vulnerabilities related to occupational health and safety due to physical, chemical, biological, and radiological hazards during Project construction, operation, or decommissioning?

No

3.8 Does the Project involve support for employment or livelihoods that may fail to comply with national and international labor standards (i.e. principles and standards of ILO fundamental conventions)?

No

3.9 Does the Project engage security personnel that may pose a potential risk to health and safety of communities and/or individuals (e.g. due to a lack of adequate training or accountability)?

No

Standard 4: Cultural Heritage

4.1 Will the proposed Project result in interventions that would potentially adversely impact sites, structures, or objects with historical, cultural, artistic, traditional or religious values or intangible forms of culture (e.g. knowledge, innovations, practices)? (Note: Projects intended to protect and conserve Cultural Heritage may also have inadvertent adverse impacts)

No

4.2 Does the Project propose utilizing tangible and/or intangible forms of cultural heritage for commercial or other purposes?

No

Standard 5: Evictions and Displacement

5.1 Would the Project potentially involve full or partial physical displacement? Yes

5.2 Is there a risk that the Project would lead to forced evictions?64 No

5.3 Would the Project possibly result in economic displacement (e.g. loss of assets or access to resources due to land acquisition or access restrictions – even in the absence of physical relocation)?

No

5.4 Would the proposed Project possibly affect land tenure arrangements and/or community based property rights/customary rights to land, territories and/or resources?

Yes

Standard 6: Indigenous Peoples

6.1 Are indigenous peoples present in the Project area (including Project area of influence)? Yes

6.2 Is it likely that the Project or portions of the Project will be located on lands and territories claimed by indigenous peoples?

Yes

6.3 Would the proposed Project potentially affect the rights, lands and territories of indigenous peoples (regardless of whether Indigenous Peoples possess the legal titles to such areas)?

Yes

6.4 Has there been an absence of culturally appropriate consultations carried out with the objective of achieving FPIC on matters that may affect the rights and interests, lands, resources, territories and traditional livelihoods of the indigenous peoples concerned?

No

6.5 Does the proposed Project involve the utilization and/or commercial development of natural resources on lands and territories claimed by indigenous peoples?

Yes

6.6 Is there a potential for forced eviction or the whole or partial physical or economic displacement of indigenous peoples, including through access restrictions to lands, territories, and resources?

Yes

6.7 Would the Project adversely affect the development priorities of indigenous peoples as defined by them?

No

6.8 Would the Project potentially affect the traditional livelihoods, physical and cultural survival of indigenous peoples?

Yes

64 Forced evictions include acts and/or omissions involving the coerced or involuntary displacement of individuals, groups, or communities from homes and/or lands and common property resources that were occupied or depended upon, thus eliminating the ability of an individual, group, or community to reside or work in a particular dwelling, residence, or location without the provision of, and access to, appropriate forms of legal or other protections.

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6.9 Would the Project potentially affect the Cultural Heritage of indigenous peoples, including through the commercialization or use of their traditional knowledge and practices?

No

Standard 7: Pollution Prevention and Resource Efficiency

7.1 Would the Project potentially result in the release of pollutants to the environment due to routine or non-routine circumstances with the potential for adverse local, regional, and/or transboundary impacts?

No

7.2 Would the proposed Project potentially result in the generation of waste (both hazardous and non-hazardous)?

No

7.3 Will the proposed Project potentially involve the manufacture, trade, release, and/or use of hazardous chemicals and/or materials? Does the Project propose use of chemicals or materials subject to international bans or phase-outs? For example, DDT, PCBs and other chemicals listed in international conventions such as the Stockholm Conventions on Persistent Organic Pollutants or the Montreal Protocol

No

7.4 Will the proposed Project involve the application of pesticides that may have a negative effect on the environment or human health?

No

7.5 Does the Project include activities that require significant consumption of raw materials, energy, and/or water?

No

ANNEX V: ENVIRONMENTAL AND SOCIAL SCREENING SUMMARY

Name of Proposed Project: PNG R-PP A. Environmental and Social Screening Outcome Select from the following:

Category 1. No further action is needed

√ Category 2. Further review and management is needed. There are possible environmental and

social benefits, impacts, and/or risks associated with the project (or specific project component), but these are predominantly indirect or very long-term and so extremely difficult or impossible to directly identify and assess.

Category 3. Further review and management is needed, and it is possible to identify these with a reasonable degree of certainty. If Category 3, select one or more of the following sub-categories:

Category 3a: Impacts and risks are limited in scale and can be identified with a reasonable degree of certainty and can often be handled through application of standard best practice, but require some minimal or targeted further review and assessment to identify and evaluate whether there is a need for a full environmental and social assessment (in which case the project would move to Category 3b).

√ Category 3b: Impacts and risks may well be significant, and so full environmental and social assessment is required. In

these cases, a scoping exercise will need to be conducted to identify the level and approach of assessment that is most appropriate.

B. Environmental and Social Issues (for projects requiring further environmental and social review and management) In this section, you should list the key potential environmental and social issues raised by this project. This might include both environmental and social opportunities that could be seized on to strengthen the project, as well as risks that need to be managed. You should use the answers you provided in Table 4.1 as the basis for this summary, as well as any further review and management that is conducted. The Goal of the project is to strengthen capacities of all stakeholders to manage forests sustainably so as to reduce net emissions from forests. Consequently, the following environmental impacts are anticipated: Reduced rates of deforestation: This impact will occur after completion of the project, as the capacities established through the project will enable stakeholders to address drivers of deforestation Reduced rates for forest degradation: As above, this will occur after completion of the project Strengthened forest protection, leading to improved biodiversity conservation: As above Afforestation/reforestation: As above The following social impacts are anticipated: Greater empowerment of civil society, Indigenous Peoples, and forest-dependent communities: The project will build capacities of these stakeholder groups to engage effectively so as to ensure that their rights and interests are taken into account in socio-economic development and land-use planning. Greater gender equity: The project will focus on improving the capacities of women to engage on an equal basis

Improved socio-economic development and land-use planning: The project will build the capacities of government agencies and the private sector to manage socio-economic development and land-use planning so as to optimize economic, social and environmental benefits and ensure that the rights and interests of all stakeholder groups are respected. C. Next Steps (for projects requiring further environmental and social review and management): In this section, you should summarize actions that will be taken to deal with the above-listed issues. If your project has Category 2 or 3 components, then appropriate next steps will likely involve further environmental and social review and management, and the outcomes of this work should also be summarized here. Relevant guidance should be obtained from Section 7 for Category 2, and Section 8 for Category 3. As the screening has indicated that a number of UNDP safeguards policies might be triggered by REDD+ related activities in PNG, a Strategic Environmental and Social Assessment (SESA) will be conducted as part of the Readiness process to assess the potential impacts from future proposed future investments and policy options. The SESA will be complemented by an Environmental and Social Management Framework (ESMF), which will provide a guide for potential future investments in REDD+ Demonstration Activities, including pilot projects, toward compliance with UNDP safeguards policies. Capacity in implementing the Strategic Environmental and Social Assessment (SESA) is limited in the country. Interested stakeholder groups are ready to engage in this process and have high expectations of this process to change the Government’s approach. D. Sign Off Project Manager Date PAC Date Programme Manager Date

ANNEX VI: RESPONSE TO RECOMMENDATIONS MADE IN FCPF PARTICIPANTS’ COMMITTEE RESOLUTION PC/14/2013/4 The PNG R-PP was approved by the World Bank Forest Carbon Partnership Facility Participants Committee at its 14th meeting in Washington DC, on 23-25 March, 2011. Resolution 4 of the meeting decided to allocate funding to PNG subject to the following conditions: “The Participants Committee 1. Decides to allocate funding to PNG to enable it to move ahead with the preparation for readiness.

2. For this purpose, requests:

i. PNG to submit a revised R-PP (Revised R-PP) to the FMT, reflecting the key issues in the summary report prepared by the FMT included in the annex to this resolution;

ii. the FMT, in cooperation with the Delivery Partner as necessary, to check on the Revised R-PP for completeness, make it available on the FCPF website and notify the PC of its availability;

iii. UNDP, as the Delivery Partner, to engage with PNG and complete its due diligence, in particular with regard to the UNDP’s policies and procedures and in accordance with the Common Approach, working closely with PNG, in order to provide a grant of up to US$ 3.8 million, in accordance with Resolutions PC/3/2009/4 and PC/Electronic/2012/1;

iv. PNG to consider the issues identified in the TAP’s R-PP assessment as well as those raised by the FCPF PC at this meeting during readiness preparation; and

v. PNG to report to the PC on progress made in accordance with Section 6.3 (b) of the Charter and to carry out its responsibilities in accordance with the agreement between UNDP and PNG (grant agreement).”

The first point of the revisions process is for PNG to submit a revised R-PP to the FCPF Facility Management Team (FMT) reflecting the key issues in the summary report. This summary report says: Summary Report Prepared by the FMT The PC noted that the R-PP formulation process to date has been a positive one, and that the R-PP offers good opportunities for other REDD countries to learn from Papua New Guinea’s experience. Key Issues The following are the key issues that Papua New Guinea needs to address before entering into a Readiness Preparation grant agreement with the UNDP:

10. Provide further background information on experiences with community forest management in the country and on plans to promote this type of management as part of the REDD+ Strategy.

11. Update the R-PP to reflect the latest developments towards the establishment of a national MRV system and the national REL for REDD+.

12. Provide further detail on how SESA and the national safeguards information system will be designed and implemented, including related capacity needs at the national level.

Revisions to the PNG R-PP The PNG R-PP has been modified as follows: Further background information on experiences with community forest management in the country and on plans to promote this type of management as part of the REDD+ Strategy: The following text has been added on pages 43-44: The PNG Forest Authority has an Eco-forestry Programme established in 2006 which promotes sustainable forest management at the community level. This programme is managed through the Eco-forestry Branch65 . At the same time the PNG Forestry and Climate Change Policy Framework for Action emphasizes the need for a multi stakeholder approach to community forest management and REDD+ programming that engages customary landowners at the local level. The Interim Action Plan on Climate Compatible Development also identifies conserving forests through community REDD+ action as an abatement option. In terms of implementation though some NGOs have implemented some activities related to community forest management. Activities include forest resource assessment, forest management decision making processes, and decisions on development options. FORCERT66 for example has been promoting and implementing activities supporting communities to sustainably manage their land and forest through certified small scale tree harvesting linked to the Forest Stewardship Council (FSC). The income however is too small to compete with income from commercial logging or oil palm plantations therefore FORCERT has embraced payment for ecosystem services as a potential additional income stream for the communities, including REDD+ as an option67. The Wildlife Conservation Society (WCS) in its community based project out in Manus island have completed a community mapping and consultation exercise and have plans for training communities on changes in the land laws/regulations as well as training in technical aspects such as identifying drivers of deforestation and community forest inventory68. PNGFA is also pursuing a proposal with the ITTO on Community Forest Management: Enabling customary land owners to participate effectively in CFM and REDD schemes within these four pilot areas. This project will aim to design community based land ownership mapping and forest resource assessment systems that support CFM and REDD schemes.69 With the current REDD+ pilot activities including those led by the PNGFA their success will depend on the ability and success to fully engage the respective communities in the planning , decision –making and implementation processes linked to the management of their forest resources.

65 http://www.forestry.gov.pg/site/page.php?id=33 66 www.forcert.org.pg 67 FORCERT, Project brief for PES Trial Project, submitted UNDP and OCCD for funding in 2013 68 From presentation to the REDD+ TWG and discussions with Bensolo Ken, Programme Officer WCS 69 http://www.forestry.gov.pg/site/files/CFM-REDD%20Project%20Brochure_27-2-2013.pdf

Update on the latest developments towards the establishment of a national MRV system and the national REL for REDD+: The following text has been added to page 90: Papua New Guinea (PNG) readiness efforts to establish a National MRV System is currently supported by United Nations Food and Agriculture Organization (FAO) regional program in Bangkok, Thailand and Rome, Italy. Through its National UN-REDD Programme, it has slowly but surely realizing it. On the outset PNG has adopted the Brazilian Monitoring System called TerraAmazon as the software system they will build upon. Training of its national monitoring experts has already been done in 2012 in both Brazil and Italy to understand the software and actually track changes on spatial maps at different time series. The National UN-REDD Programme has so far set up its Programme Management Unit which is now house at the Office of Climate Change and Development (OCCD) and runs the National Programme and the its National MRV System. The National MRV System will use the three-phase approach that REDD+ has adopted through the COP Decision 1/CP 16. Currently, a write-shop has been organized to draft the National Forest Monitoring System Action Plan that will be workshop and then the final draft endorsed by the National Executive Council over a period of three months. Additional, capacity has been delivered by the Papua New Guinea Forest Authority (PNGFA) on the first of two phase approach on the National Forest Inventory that will be supported by the European Union and FAO. Other support is coming from the 2011 PNGFA/JICA Project and AusAid National Program under 2008 Australian/PNG Forest Carbon Partnership. The following text has been added to page 84: The Government of Papua New Guinea’s approach on reference emission levels and reference levels for REDD+ will be implemented after the National Forest Inventory (NFI) has been carried out in 2014 onwards with the collaborative support of the PNG's UN-REDD Programme for MRV and the European Union (EU) and United Nations Food and Agriculture Organization (UN-FAO) for NFI. In the interim, through the support of the PNG UN-REDD programme, capacity building is currently being carried out, along with NFI pre-assessment with the use of Collect-Earth using the Open source Google Earth and Goggle Engine to do a desktop assessment of its forest cover change and land use change. Using mostly a 4 x 4 Km grid sampling, PNG can already realize numerous unanswered questions like carbon stocks, conservation, land use, etc. This exercise can already help PNG to also realize its REL for REDD and RL for the plus. The full realization of PNG's REL/RL will be calculated after the ground truth, National Forest Inventory, has been conducted starting 2014. If the workplan currently in-place is implemented properly, PNG should realize its REL/RL in 2018. 1. FURTHER DETAIL ON HOW SESA AND THE NATIONAL SAFEGUARDS INFORMATION SYSTEM WILL

BE DESIGNED AND IMPLEMENTED, INCLUDING RELATED CAPACITY NEEDS AT THE NATIONAL LEVEL

The following text has been added on pages 77-81: A multi-stakeholder REDD+ sub-technical working group (sub-TWG) on Social and Environmental Safeguards has been established and held its first meeting in May, 2013. Members include representatives of DLPP, OCCD, PNG-EFF, PNGFA, Rural Industries Council, Transparency International PNG, TNC, UN-REDD, and WCS. Several members of the sub-TWG attended the Social Inclusion FCPF Regional Workshop on Capacity Building held in Bangkok, Thailand from the 30th of April to the 3rd of

May, 2013. A report on the workshop was circulated among all Sub-TWG members to integrate knowledge obtained at the workshop into the work of the sub-TWG.

A team consisting of an International Expert on Social & Environmental Safeguards, a National Expert on Social Safeguards and a National Expert on Environmental Safeguards has been recruited to undertake a systematic gap analysis of existing relevant policies, plans, programmes, processes and practices against the Cancun safeguards and other safeguard frameworks, leading to the development of National Guidelines on Social and Environmental Safeguards, and ultimately a national safeguard response process. The team will undertake the following specific tasks:

1. Strengthening the institutional framework on safeguards

Identify the needs of the national Safeguards Information System (SIS) under development by FAO, and prepare appropriate data sets for this system.

Provide technical leadership contributing to wider perspectives on REDD+ safeguards in PNG, allowing multi-sectoral approach and integration of national objectives across the contributing sectors, e.g. by support of and feeding into other TWG’s under the responsibility of OCCD.

2. Gap analysis and consolidation of existing tools

Review existing international literature on REDD+ social and environmental safeguards and relevant aspects of the major multilateral safeguard frameworks (SEPC, SES, SESA).

Explore national safeguard policy response processes and experiences from other countries, particularly those within the region, and draw on these experiences to enhance the current safeguard system in PNG.

Conduct a gap/weakness analysis, to identify and map the extent to which existing policies, laws and regulations currently demonstrate safeguard compliance. A review should be made of, but not limiting to, the following:

a. the legal system – what laws and regulations are prevailing in PNG that directly impact the social and environmental security of local communities and which have a direct impact on cross-sectoral programmes supporting REDD+, and how is its enforcement practiced?

b. policies – what is codified in national strategies and what is part of international conventions and agreements with regards to social and environmental safeguards in all REDD+ related sectors (i.e. forestry and land use)?

c. programmes – what social and environmental safeguard provisions are made in national target programmes contributing to REDD+?

d. plans – what provisions are made to safeguard social and environmental risks in sectoral or sub-national master plans and planning processes?

e. processes – what other relevant and currently on-going processes could contribute to a national safeguard response (e.g. FSC certification process)?

f. practice – how are the above laws and regulations, policies, programmes, plans and processes actually implemented on the ground; to what extent can practices be improved?

Produce a concise draft action plan of recommended policy-to-practice actions that would guide national government and non-government stakeholders in PNG in a phased national safeguards response by filling gaps and strengthening weaknesses, while meeting compliance with:

a. the Cancun Agreements on safeguards of the UNFCCC; b. potentially emerging funding options (notably the FCPF Carbon Fund); and c. relevant aspects of other major safeguard initiatives and frameworks (such as the

REDD+ SES, SESA, etc.).

Analyze potential environmental and social benefits and risks, and adapting existing frameworks and tools (e.g. UN-REDD SEPC70) to fit PNG’s context.

3. Draft National Guidelines and validate results

Corroborate initial findings with other groups working on activities related to safeguards (e.g. FPIC and BSDS activities) to ensure an integrated approach on SES and consolidate the results.

Consolidate findings to prepare the draft National Guidelines on Social and Environmental Safeguards to be validated through consultation with stakeholders during four Regional Stakeholder Consultation Workshops.

Prepare the outline for, and provide technical support to the preparation of the four Workshops producing adequate feedback to the draft National Guidelines on SES.

4. National Guidelines on Social and Environmental Safeguards in PNG

Prepare the outline for, and provide technical support to the preparation of the National Stakeholder Consultation Workshop.

Contribute to and provide technical leadership in the organization of the National Stakeholder Consultation Workshop.

Corroborate and consolidate outcomes with the National experts on Social and Environmental Safeguards to prepare the final National Guidelines on SES.

Prepare the final National Guidelines on Social and Environmental Safeguards. Thus, activities under section 2, above will identify capacity gaps that need to be addressed in the development of a national system of safeguards and safeguards information system. Activities under sections 3 and 4, above, will begin to address these gaps. FCPF funding will be used to address remaining gaps. In doing so, the tools and approaches enshrined in SESA will be followed. The activities required for SESA include:

Training to line agencies and all key stakeholders on the SESA process

In-depth analysis of current regulations relating to EIA, SIA, and SESA and constraints to the implementation

Analysis of REDD+ safeguard options, based on international guidance and nationally appropriate activities

Development of framework of social and environmental indicators, monitoring requirements, management, and recourse mechanism in consultation with key stakeholders and civil society

Initiate integration of basic social and environmental safeguards into existing REDD+ demonstration activities, including pilot indicators and monitoring, in order to determine if the safeguards identified are appropriate and can be monitored effectively.

SESA of the candidate REDD+ Strategies performed under Component 2b.

Development of a ESMF or equivalent that is both nationally appropriate and complies to international standards, including:

– capacity building requirements

70 The Social and Environmental Principles and Criteria (SEPC) of the UN-REDD Programme

– triggers of when different assessments are required – a effective recourse mechanism – how the implementation framework will be operationalised – e.g. institutions

responsible at national level and subnational if appropriate

Consultation on the proposed ESMF

Capacity-building on the ESMF

Application of the ESMF to all R-PP activities

Legal reform, if necessary, to institutionalize the national REDD+ safeguards within the REDD+ implementation strategies

SESA of National REDD+ Strategy under Component 2b

Monitoring of social and environmental impacts under Component 4b. The REDD+ Safeguards Information System will provide open access to information through a web portal. The information will be freely provided over the internet, and act as the entry point for any stakeholder or otherwise interested party seeking information on REDD+ in PNG. The REDD+ Safeguards Information system will be developed and hosted by an independent agency with a specific focus on REDD+. The OCCD is the most suitable agency to take on this role. An independent, multi-stakeholder committee will provide guidance on the REDD+ Safeguards Information System’s implementation. Under this guise, the role of the OCCD is proposed to be:

Develop a web interface to make information on REDD+ safeguards freely available; Collect geospatial, social, ecological and governance data and information for web interface; Upload and update data and information on the web interface when it becomes available.

The Data Management Unit within the MRV Steering Committee (see Figure below) should provide land use and land use change monitoring data.