The large scale conversion of forests can generate short term income for governments, the private sector and communities. But unchecked, this will also lead to a loss of national wealth, livelihoods, and natural habitats in the longer term.

The UNFCCC negotiations offer an opportunity to better recognize the value of forests and compensate developing countries for successful efforts to reduce rates of emissions from deforestation and to retain forest cover (REDD).

But a REDD mechanism designed solely to reward progress in terms of emission reductions may fail to support the improvements in governance necessary to slow and halt deforestation and mitigate possible perverse outcomes that, for example, dispossess poor communities of access to forest resources on which they depend.

REDD thus need to strengthen governance of forests by increasing the transparency, inclusiveness, accountability, coordination and capacity of institutions that manage forest resources and revenues. Civil society will have a crucial role to play in monitoring the environmental and social impacts of REDD strategies, and in holding governments to account for the distribution of REDD revenues.

To be effective, however, complete and reliable information concerning the specific governance challenges contributing to deforestation and poor forest management is needed.

Millions of poor forest-dependent people live on the fringes of and within forests of the Asia-Pacific region. They depend upon forest resources and forestland for their survival and well-being. REDD presents both risks and opportunities for these communities. If governments, land managers and project developers place the financial incentives promised by REDD above other concerns, then REDD could see a return to fortress-type conservation that denies local communities access to forestlands and resources, forcing them to endure greater economic hardship and escalating social conflict. Conversely, REDD could provide new opportunities for communities to participate in forest policy formulation and in forest management, and could offer them financial and other benefits for contributing to a collective effort to reduce deforestation and forest degradation. In this session we draw on views and experiences from the region to elaborate on the major issues concerning forest-dependent people in relation to REDD and illegal logging. These issues include:

• Raising community awareness of REDD;
• Building capacity of communities to respond to REDD threats and opportunities;
• Clarifying forest tenure and ownership of carbon rights within the REDD framework;
• Addressing the need for meaningful participation of communities in processes to formulate and implement REDD demonstration activities and national REDD frameworks;
• Enhancing livelihood opportunities for communities as part of avoided deforestation strategies;
• Developing equitable and sustainable financial distribution mechanisms;
• Facilitating interactions between communities and concessionaires under REDD;
• Employing and rewarding community-based forest management for climate change mitigation.