National Vision for Developing a Cocoa Forest REDD+ Program in Ghana

YAW KWAKYE

National REDD+ Secretariat

Manaus, Brazil, June 2013

Introduction

• In 1911, Ghana became #1 global cocoa producer.

• 100 years later, Ghana achieved a production milestone - 1 million metric tons/annum.

• Top producer of premium quality beans

• Ghana’s cocoa sector is a $ 1.5 billion industry.

• But much of sector’s growth has come at the expense of forests.

Cocoa Forest REDD+ Program • High Tech programs started in 2001 to increase yields and boost

national production to 1 million metric tons/annum.

• Results showing promise- achieved target in 2011

• But area under cocoa has doubled (1.8 million ha)

• Yields increasing but still low (- 400 kg/ha)

• Off-Reserve forests gone, Forest Reserves and National Parks are under threat.

• REDD+ program will transform BAU scenario to sustainable, climate-smart cocoa sector.

Desired State Ghana’s 20 year emissions reduction cocoa production system • Program area of 2.5 million ha grouping 16 local districts

• Current national production will be grown on 40% of current land area

• Yields increased by nearly 200+% (400 kg/ha → 1100 kg/ha)

• Farmers retaining and planting shade trees (40% canopy cover)

• Carbon emissions per ton of cocoa produced dropped by 90% (20 tons C / ton cocoa produced to 2 tons C / ton of cocoa produced)

• Reduce threat to Forest Reserves

• New forests and tree cover

Desired State Ghana’s 20 year REDD+ cocoa production system

New Cocoa Product

Ghana to be top global producer of premium quality climate-smart cocoa beans

• Sustainable production system

• Ensuring livelihoods of hundreds of thousands of Ghanaians

Government Interest

• Security of supply

• Long term access to markets

Private Sector

Interest

Forest Resources

HFZ covers 9 million ha

• 2.5 million ha in Forest Reserves

• 6.5 million ha in off-reserve

Forest Reserves degraded

Off-Reserve converted to tree crops & agriculture

Terrestrial carbon stocks

• 7.46 GtCO2e

• Majority in the HFZ

Deforestation & Degradation • No clear numbers on degradation

– 84% of Forest Reserves degraded or worse.

• National deforestation rate estimated at 2.0% nationally

– Losing 135,000 ha annually

– Recognition that rate ranges widely

• Recent assessment in program area shows 2.8% - 6.1%

2.8% deforestation rate

1986

2000

2011

6.1% deforestation rate

Over past 25 years average 4.3%/yr

Forest ● Shaded Cocoa /Secondary Forest ● No Shade Cocoa / Bush Fallow ● Agriculture ● Settlement ●

Cocoa Forest REDD+ Program

Ecological

Soil

Climate

E.R. potential

Agronomic

Dominant production

areas

Impact of inputs

Socio-Political

Grouping of Political

Districts with Cultural

importance of cocoa

Presence of programs, projects

Co-Benefits

Livelihoods

Biodiversity

Factors Influencing Selection of Proposed Area:

Soil

• Most important agronomic variable for cocoa.

• Current national production could be grown on ¼ current hectares cultivated

• Best soils are fertile, good organic content, good moisture retention, respond to inputs

• Other soil types are unsuitable

Current & Future Climate Suitability

Laderach et al 2012

Past & Present Cocoa Trends

Co-Benefits

Livelihoods

• 800,000+ cocoa farm families

• 30% of Ghanaians rely upon the sector

• Yield increases will have major poverty reduction impact

• Should cocoa decline due to climate change & loss forest ecosystem services, devastating livelihood impact

• Women represent approx. 50% of cocoa households, but disproportionately low access to cocoa resources

Biodiversity

• Program area encompasses national parks, GSBA, biologically diverse Forest Reserves

• Direct correlation between intensification and loss biological diversity on-farm

• Insects, soil fauna play critical role in pollination and maintenance of soil fertility

Time Frame & Accounting

Phases

• 20 year (2015-2035)

• Design Phase (2013-2015) • Complete R-Package

• In line with development of FIP projects

• Investment Phase (2016-2018)

• Performance Payments Phase (2019-2035)

Accounting

• Utilize national registry database being designed under R-PP to account for all AFOLU accounting

• Link to World Bank CARS system or VCS for international transactional accounting

Implementation Partners

Government Private Sector & Industry Bodies

Civil Society / NGOs

Cocoa Board (Cocobod) Banks National House of Chiefs

Forestry Commission Insurance Companies Traditional Authorities

MLNR Licensed Buying Companies

NGOs

MoFEP Chocolate Companies CREMA communities

MoFA Industry Foundations REDD+ Pilot Proponents

CRIG Certification Bodies Farmer Associations

District Assemblies Multilateral Development Institutions

Key Interventions

Institutional Collaboration

Cocoa Board, MLNR, FC

FIP has started

Needs to be expanded,

strengthened

Policy Reforms

Priority area

R-PP & FIP taking lead

Further reforms needed

Increase Yields

Primary focus of cocoa industry

Limited success

Happening in isolation

De-Risk Cocoa

Farming

Many risks for farmer

Expand access to credit

Need insurance

Landscape Planning

Total absence in cocoa sector

Policies largely in place

Need to implement

Data Management

Should be Cocoa Board

platform

Necessary for climate-smart

Manage sector data

In isolation, no single measure can be effective to increasing sustainability and achieving desired state.

Reference Emissions Level

• Historic approach

• 20 year program

• Above ground carbon pool

• Conservative deforestation rate of 2.3%

• Two strata

Intact Forest

• 120 tC/ha

• 845,000 ha

Shaded Cocoa

• 70 tC/ha

• 800,000 ha

Total Expected ERs 131,616,930.60 tCO₂ 50% program performance factor

Potential ERs

Social Environmental Impacts

• Three impact assessment procedures & requirements will be applied during program process: – R-PP describes clear process to assess impacts

– Strategic Environmental Assessment (SEA) procedures of EPA

– SESA requirements of MDB Will build off of processes conducted by R-PP and FIP initiatives

• Program development process to identify social and environmental impacts and assess co-benefits

• Where necessary, will prepare mitigation instruments

• Safeguard measures will be outlined

Scenario and MRV

• Ghana intends to follow VCS scenario 2 with crediting to jurisdiction and project levels.

• MRV system will be designed for tracking deforestation, degradation, forestation and enhancement of carbon stocks in program.

• Will be a sub-system of national REDD+ MRV system.

Financing

Preliminary estimates of the cost of Ghana’s ER Program over 20 years: US$ 2,067,000,000

Source US Dollars

FCPF R-PP funds 2,000,000

FIP funds 5,000,000

FCPF Carbon Fund 50,000,000

Private Cocoa Sector 2,000,000,000

Government of Ghana 10,000,000

Thank you