Conclusions IFCA Consolidation Report

145 benefit potentially large numbers of people and engage multiple levels of communities and agencies in co-management to reduce deforestation. . Another option is to channel REDD payments to poverty-reduction programs that benefit the general public, such as health, education, agricultural development, and land-tenure reform. These services may or may not directly contribute to reducing deforestation, but their improvement will reinforce public perception of the value of preserved forest carbon in a tangible and real way. There are potential roles in such schemes for many sectors and levels of government to receive and manage REDD funds in return for tangible improvements in governance and service delivery that contribute directly or indirectly to avoided deforestation.

5.6 Conclusions

Good forest governance is important for REDD in order to build and sustain confidence among stakeholders and investors; to achieve reductions in deforestation and degradation through effective strategies; and to ensure equitable and transparent distribution of benefits from REDD. Key governance issues for REDD in ndonesia are . Transparency of forest-related information, land allocation, and revenues; . Public accountability for policies and management decisions; . Rule of law and legal certainty in a consistent framework of laws, policies, and regulations at all levels of government; . Secure and equitable rights to forest utilization, including land tenure; . Fair distribution of benefits and protection of REDD payments from corruption and elite capture. The implementation of REDD in ndonesia will lead to greater stakeholder involvement than ever before in the management of ndonesia s forests. This broad involvement can be a great asset to the government in achieving forest sustainability as the benefits of maintaining the fullest range of goods and services that forests provide will be assisted by the new market opportunities. Greater community support for government and stronger community opposition to destructive practices can be expected. owever, in order for these strengths to be optimized there will also need to be a new and greater level of awareness among stakeholders of the legal and administrative framework within which forest governance occurs. Because governance of REDD and the forest-sector are affected by broader, systemic governance problems, efforts to improve forest governance with increased transparency and accountability need to reach the broadest possible constituency ] Peskett and arkin suggest that REDD payments could be used to implement a range of policies and other measures, depending on the drivers of deforestation the stakeholders involved and whether the avoided deforestation is planned or unplanned . 146 of stakeholders, and these stakeholders need to be informed, motivated, and empowered to take appropriate action. There is value in focusing on the broadest possible constituency, by distributing the benefits of REDD widely, so as to offer incentives for good forest governance to a diverse group of stakeholders who can support REDD within and beyond the forest sector. nitiatives under FLEG contribute to increased transparency and accountability, improved law enforcement, and bringing forest-based industries into balance with sustainable wood supplies. But substantial research is required for the value of these and related initiatives to be fully realized. They need to be communicated to forestry personnel involved in the field, who are typically insufficiently educated and trained; and they need to be communicated to the public, whose level of awareness of forest management laws, regulations and policies is low. A number of additional actions are proposed in this chapter to further improve forest governance, reduce corruption, and contribute to the success of REDD strategies. Frequently the implementation of these strategies will require preliminary and parallel research and investigation to ensure their effectiveness. A review and recommendations detailing proposals for forest governance research has been recently prepared by the Ministry of Forestry s Forest Research and Development agency FORDA ] The FORDA Draft Report to the World Bank is entitled: Forest Governance and Corruption in Indonesia 147 Testing for the future: a framework for the identification of Demonstration Activities Projects and investment for REDD in Indonesia

6.1 Introduction