15IACC

Preventing the risks of corruption in REDD+ Financing

8 November 09:00 – 11:00

Many countries are now formulating national REDD+ policies and regulations and conducting demonstration activities in countries with some of the poorest scroes on established governance indicators. REDD+ readiness is frequently based on adapting existing forestry regulatory frameworks, so there are risks that past weaknesses in financial governance may continue. Although REDD+ financing derived from carbon markets remains largely hypothetical to date, the emergence of a compliance market could eventually lead to substantial flows of funding. In the interim many donors have committed to support REDD+. Despite large gaps between funding pledges, funds committed to dedicated climate change funds and actual disbursements, there is a critical need to adopt multiple anti-corruption measures to monitor report and validate the use of such funds in anticipation of future forest carbon markets. This will also ensure greater transparency and accountability in the use of public sector REDD+ readiness funds.

REDD+ involves large sums of public funding and, potentially even larger private sector investments. The panel will draw, initially, on earlier anti-corruption efforts in five countries – Kenya, Malaysia, Ecuador, Peru and Indonesia – to identify the risks of corruption in REDD+ financing based on past, and on-going initiatives to combat corruption in the forestry sector. The panel will identify a number of ways to promote greater transparency and accountability in the forest and other sectors as well as specific lessons learned from publicly-managed forest funds. Detailed explorations of these issues have been scarce to date and potential new policy and regulatory approaches are still being tested and developed. The panel will subsequently present more specific ideas on the measures needed i. to strengthen institutional and simplify regulatory frameworks, to improve accountability, transparency and law enforcement and to target rent-seeking and patronage networks, and ii. to ensure robust, efficient and accountable procedures for REDD+ financial flows,. The topics to be addressed will include identifying loopholes that could open new opportunities for corruption to occur during REDD+ readiness and implementation stages, from policy setting, implementation, securing concessions, performance measurement, payment for emission reductions, and distribution of payments to the ultimate beneficiaries. The session will help identify the roles of key actors inside and outside the forestry sector to combat corruption, and how international cooperation can help to tackle transnational crimes and corruption in the forestry sector. It is recognized that the corrupt gains and vested interest groups trying to maintain the status quo in several countries will not make the transition an easy one but there are grounds for cautious optimism.

Session coordinator’s name:
Mr. Ahmad Dermawan
Center for International Forestry Research (CIFOR)

Session /Moderator
Dr. D. Andrew Wardell
Director, Forests and Governance Program
CIFOR

Experts
Mrs. Susan Kinyeki
Senior Officer, Ethics and Anti-Corruption Commission, Kenya
Ensuring the equitable, transparent and accountable use of REDD+ funds in Kenya

Mr. Mustafar Ali
Commissioner, Anti-Corruption Agency, Malaysia
Building on successful anti-corruption efforts in Malaysia

Ms. Sigrid Vasconez
Grupo Faro
Making the forest sector more transparent. Lessons from Ecuador and Peru

Mr. Ahmad Dermawan
CIFOR
Learning from the Reforestation Fund experience in Indonesia

Mr. Aled Williams
U4/Anti-Corruption Resource Centre
Corruption and REDD+ Identifying risks and complexities

Mr. Davyth Stewart
Interpol
Ensuring transparent and accountable international financial flows

Rapporteurs
Mr. Ahmad Dermawan1, Dr. D. Andrew Wardell1 and Mr. Aled Williams2
CIFOR1 and U4/Anti-Corruption Resource Centre2

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