Ani A. Nawir – Thinking about REDD+ benefit sharing mechanism (BSM)

Community forestry (CF) provides valuable lessons for REDD+ benefit-sharing mechanisms (BSMs) for three reasons. First, CF institutions generally have an established BSM that incentivizes forest conservation, which is recognized by national law. Second, CF generates and distributes co-benefits from timber and other forestry products, including ecological services and carbon sequestration. Lastly, CF is a forest management option for the implementation of REDD+.

CIFOR’s infobrief compares CF schemes in Nepal and Indonesia for REDD+ implementation and assesses them in terms of their effectiveness, efficiency and equity. The infobrief documents and analyzes institutional arrangements and incentive structures that can be adopted in designing REDD+ BSMs in different contexts: (1) Different approaches to BSMs – that is, based on rights allocation, inputs or performance – must be considered, as each has a specific and complementary role in achieving the effectiveness, efficiency and equity in REDD+ BSMs; (2) To achieve effectiveness and efficiency, structuring shared benefits, such as under an exclusive bundle of rights, can be more effective in changing behavior than, for example, input-based incentives that are not tied to conditions for halting deforestation and degradation, and/or to performance in tree-planting and wood production; And (3) For equity, opportunity costs are an important consideration in deciding how benefits are shared, particularly if land-use competition is high. For example, individual household opportunity costs might differ from the average in an area under REDD+, and so the final valuation should consider trade-offs.

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