PHOTO Credit: Climate Change and Development Authority’s Facebook page.
On 18 August 2023, a National Stakeholders Validation Workshop was held in the Hilton Hotel in Port Moresby, Papua New Guinea. Immediately following the meeting, the Climate Change and Development Authority announced that,
A pioneering regulatory framework developed to guide the carbon market in the country has received resounding validation from national stakeholders today in Port Moresby. This landmark step signifies an epic stride towards climate change mitigation and environment sustainability through a robust and accountable market mechanism.
The CCDA claims that the regulation, the Climate Change Carbon Market Regulation 2023, was “developed through rigorous consultation involving environmental bodies, regulatory agencies, industry leaders, NGOs and Community Based Organizations”.
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At the meeting, William Lakain, CCDA’s Acting Managing Director, said that, “PNG plans on implementing the compliance carbon markets under Article 6 of the Paris Agreement.”
“Recently, we have experienced an influx of interest in the country from developers targeting the Voluntary Carbon Markets (VCM) in the absence of a regulatory framework, posing significant risks of governance, transparency and standards.
“Given that challenge, the Government of PNG through the CCDA was tasked to ensure administrative processes are established to provide for regulatory guidance and oversight for project developers pursuing the Voluntary Carbon Markets.”
Lakain stated that CCDA carried out “one on one consultation with three agencies within the sectors of agriculture, forestry and other land use, and energy sector. Four regional consultations were also carried out last year in September 2022 throughout the country with the objectives of introducing the policy, rationale for draft regulation, and to get feedback from its stakeholders”.
But this week, the PNG Environmental Alliance put out a media release with the headline, “PNG Carbon Market Regulation not validated, no public stakeholder consultation on revised climate change management act”.
The PNG Environmental Alliance has written a series of letters and statements raising concerns about the way in which the government was conducting the drafting and validation process for the new climate change regulation.
The most recent letter is dated 31 March 2023:
The CCDA did not officially respond to this letter.
Here is the PNG Environmental Alliance’s latest media release in full:
MEDIA RELEASE - PNG ENVIRONMENTAL ALLIANCE
Date: 26 September 2023
PNG CARBON MARKET REGULATION NOT VALIDATED, NO PUBLIC STAKEHOLDER CONSULTATION ON REVISED CLIMATE CHANGE MANAGEMENT ACT
The Members of the PNG Environmental Alliance (PNGEA) wrote an urgent letter (dated 22-09-2023) to the Minister for Environment, Conservation & Climate Change and the Chairperson of the Central Agency Coordination Committee (CACC)1, with cc’s to the Prime Minister, Minister for Forests and the Acting Managing Director of the Climate Change & Development Authority (CCDA), to voice their grave concerns on the manner in which the drafting and validation of the Climate Change (Management) (Carbon Market) Regulation 2023 (the Regulation) and the related revision process of the Climate Change Management Act (CCMA) was conducted. Their main concern voiced in this letter is on the lack of consideration of the stakeholder input by the CCDA for the Regulation development process, and the lack of public stakeholder consultation for the CCMA revision process.
Climate Change (Management) (Carbon Market) Regulation 2023 was not validated by the stakeholders
In their letter, the PNGEA expresses their surprise and concern on the recent Carbon market regulation validation workshop of 18 August 2023, at which the CCDA appeared to be hastily and prematurely forcing through the new Regulation. Apart from the PNGEA team there were also many stakeholders from various Government sectors, development partners, UPNG, Extractive Industries, private sectors and NGOs who attended.
The PNGEA further explains that their presence at the validation workshop was not to endorse the final draft version of the Regulation, as both the PNGEA and many other attendees felt that the Regulation needs considerable further improvement. During the workshop it became clear that the majority of the stakeholders, including representatives from other key government departments, did not agree with the overall process of the carbon market regulatory framework development and the content of the final draft version of the Regulation. One key issue is the definition of Carbon Rights, on which most stakeholder agreed that these are not defined properly and that the current definition will not be conducive to stakeholders, the clan leaders, landowners and communities, engaged in a carbon project. To the PNGEA this is a strong indication that the Validation Workshop was premature.
The PNGEA was asked by CCDA to propose a definition of Carbon Rights during the last technical stakeholder workshop on the Regulation, but maintained their original position on this essential issue: Carbon ownership and rights need to be identified by an Act of Parliament, i.e., at the level of the CCMA, not at the level of a Regulation, and a thorough stakeholder discussion and consultation on the meaning and implications of the definition of carbon ownership and rights needs to be held to produce an agreed and well-understood definition. It should not be proposed by one stakeholder at the time of a Validation Workshop, but has to be widely discussed as to its practical implications, in particular for all clan leaders, landowners and communities.
The observed disagreement with most stakeholders on the final draft Regulation during the Validation Workshop, is in stark contrast to the triumphalist announcement on the Facebook page of the CCDA straight after the workshop, that the Regulation is a ‘pioneering regulatory framework’, that has received ‘resounding validation from national stakeholders’ and will ‘provide a robust and accountable market mechanism’.
Apart from the definition of Carbon Rights, there are still many deficiencies in the final draft Regulation, it is very light on detail and regulatory enforcement, e.g., for national carbon market projects, for the International Cooperation Approach, and on avoidance of double counting as per Paris Agreement requirements.
Also, the Regulation only has very general requirements included in relation to Project development, FPIC, Benefit Sharing and Grievance Mechanisms. Some very brief references are made to PNG’s recently launched FPIC and Benefit Sharing & Distribution guidelines however, these guidelines only apply to REDD+ projects.
The REDD+ Development Guidelines, which provides very important guidance on carbon project development, are not defined or referred to at all in the Regulation. References are made in the Regulation to “other approved standards and guidelines”, however, none of these currently exist. This means that for all types of carbon credit generating projects other than REDD+ projects, there are no safeguards to be followed, meaning no protection of the rights and interests of the customary landholding communities.
During the validation workshop it was found that many stakeholder concerns are still outstanding, and that the CCDA has been reluctant to take on board stakeholder comments and suggestions. The PNGEA and other stakeholders observed during the Validation Workshop that overall, the Regulation are rather flimsy, and liable to lead to deleterious consequences in the future, if further discussing and drafting of the Regulation is not undertaken.
PNG Government breaches its own REDD+ FPIC Guidelines: no public stakeholder consultation on the CCMA revision process
The PNGEA has repeatedly called for the revision process of the CCMA, which is closely related to the development of the Regulation, to also go through a proper process of public stakeholder consultation, as per the PNG National REDD+ FPIC Guidelines.
The PNG Environmental Alliance (PNGEA) wrote an Open Letter on 31 March 2023 (attached), which was published in the Post Courier, asking the CCDA to publish a clearly outlined plan for the development and implementation of a full regulatory framework for carbon markets in PNG. This plan should provide sufficient time and opportunities for stakeholder consultation on all elements of the regulatory framework currently under development. Although the publication of this Open Letter prompted the CCDA to respond to another request from the PNGEA stated in this letter, i.e., to re-open the stakeholder consultation on the Carbon Market Regulation, it did not officially respond to the letter, nor did it publish the requested plan for the remaining regulatory framework development.
Regarding the CCMA revision, the PNGEA letter requested “A revision of the CCMA through a transparent process, including thorough stakeholder consultation, with key points for the revision being the definition of “carbon rights” (and any reference to primary and secondary carbon rights), references to safeguards and regulations for all types of carbon credit projects, alignment of existing forestry, environmental and energy legislation, and a clear outline of how carbon projects will be nested within a national approach, and how this will be governed.”
However, the CCMA revision has now been completed without proper public stakeholder consultation, and it is unclear what changes have been made, and whether all the essential issues identified by the PNGEA have been given due consideration. The CCDA claims that there has been on-one-one consultation with stakeholders on certain Sections, but it is unclear which key stakeholders were consulted and on which Sections, as no information on this has been provided.
The manner in which this revision of the CCMA has been done, sees the PNG Government breaching its own REDD+ FPIC Guidelines, which in Section 1.4 and 1.6 clearly stipulate the need for wider stakeholder consultation.
Working with the PNG Government to move forward
In its letters to PNG Government officials, the PNGEA has always emphasised its willingness to continue to work with the PNG Government to develop a robust overall regulatory framework for carbon projects and the carbon market in PNG, that protects the rights and interests of all our citizens, but in particular our rural communities.
Therefore, the PNGEA in its recent letter is asking the Climate Change Minister and CACC Chairperson to reconsider the status of both the Carbon market regulation and the revised CCMA, in order to protect the reputation of the country in navigating the carbon market. The Regulation should not be considered validated, but very much still a document in draft form in need of amendments. This is especially pertinent given one of the key outstanding points is the definition of Carbon Rights. In the event that the Regulation would go through in its current form, the PNGEA, as the leading group reflecting conservation organisations in PNG, will distance itself from it.
The PNGEA also asks that the CCMA revision process is reopened for public stakeholder consultation, in line with our country’s National REDD+ FPIC Guidelines, to ensure its revision aligns with the Regulation and includes a well-understood and widely agreed definition of Carbon Rights.
Further, the PNGEA strongly urges the CCDA to continue to work on the development of the Regulation and the revision of the CCMA, and complete all other related elements of the carbon market regulatory framework, as mentioned in their open letter. Only once this process has been fully completed, it will be safe to lift the Moratorium which is currently in place on new voluntary carbon market projects.
Authorised by the following PNG Environmental Alliance members:
Bismarck Ramu Group (BRG) Centre for Environmental Law & Community Rights (CELCOR) Consultative Implementation & Monitoring Council (CIMC) FORCERT – Forests for Certain: Forests for Life! Institute for National Affairs (INA) Partners with Melanesians (PwM) PNG Council of Churches (PNGCC) Research & Conservation Foundation (RCF) Tenkile Conservation Alliance (TCA) Tree Kangaroo Conservation Program (TKCP) Wide Bay Conservation Association (WBCA)
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Here at the top of this post, the image showing the presentation at the meeting, then, naturally, an immediate announcement that the measure has been resoundingly approved. This is how very low-level municipal planning schemes work in shoving their agendas through with a for-show-only presentation which to them indicates unconditional acceptance. All other concerns are now ancient history, swept under the carpet. NATIONAL GOVERNMENTS should not proceed in this manner, it is shameful and deceitful in the extreme. But, actual consultation is time-consuming, and governments, who along with business are the entities which endure, unlike the masses who are mere mortals and will soon pass from this scene, always know best and through processes like this, can just sweep dissent out of their way.
Here at the top of this post, the image showing the presentation at the meeting, then, naturally, an immediate announcement that the measure has been resoundingly approved. This is how very low-level municipal planning schemes work in shoving their agendas through with a for-show-only presentation which to them indicates unconditional acceptance. All other concerns are now ancient history, swept under the carpet. NATIONAL GOVERNMENTS should not proceed in this manner, it is shameful and deceitful in the extreme. But, actual consultation is time-consuming, and governments, who along with business are the entities which endure, unlike the masses who are mere mortals and will soon pass from this scene, always know best and through processes like this, can just sweep dissent out of their way.