The costs of establishing REDD+ : The case of Kilosa REDD+ pilot project, Tanzania

Abstract

REDD+ pilot project ‘Making REDD+ work for people and forests in Tanzania’ implemented in Kilosa district aims to achieve the stated goal by providing financial incentives to community forest managers through established payments system also referred to as Tanzania Community Carbon Enterprise, based on performance and verified emission reductions from deforestation and forest degradation. The study investigates implementation process of the project. The objectives are tocharacterize governance structure that has been established for REDD+, and the costs of establishing it― here referred to as transaction costs (TCs). As such, the study seeks to generate knowledge about the costs of establishing REDD+,hence contributing to on-going debate on the REDD+ design by focusing on local level costs. Establishing REDD+ implies changes in the governance structures of forests, i.e., changes both in actor structures and institutions. Usinggovernance structure framework, the study attempts to shed lighton the processes behind such changes in Kilosa. Based on qualitative and quantitative data collected using semi-structured interviews and focus group discussion methods,with focus on the process of introducing REDD+ in Kilosa; identifying actors involved; and changes in actor structures and institutions― and data from certified accounts of the project and interviews with accountant as well as the review of relevant documents: The findings reveal that, through the FPIC process villagers consented to implement REDD+. As part of the process also each village through electionsformed two committees namely VNRCs and VLUCs to represent them in the REDD+ activities. Of the committee members one third are women. Following national legal frameworks— through participatory processes of land use planning and forests resource assessments, villages established their respective community-based forest management―i.e., land use plans; forest management plans and associated by-laws containing rules and sanctions. Lastly, they established REDD+ by-laws defining rules that will govern the distribution of REDD+ benefits. The findings on costs suggest that total TCs of establishing the aforementioned governance structure are about USD $ 1,331,281. While TCs per hectare of protected forest are estimated at about USD $ 21/ha of total TCs. In terms of TCs per ton of carbon dioxide as expected the results suggest about USD $ 0.4tCO2/ha of total TCs. The study concludes that considering the financial projections of the project from the voluntary carbon markets, and the current household opportunity cost of shifting cultivation for most communities in Kilosa it will be difficult if not impossible for MJUMITACarbon Enterprise as self-financed entity to accomplish the stated goal. As such, the study recommends that the stated goal be treated as an assumption. The study also recommends that further studies should focus on the costs associated with the establishment of the MRV and the decision-making process at the district level.