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PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
PAPUA NEW GUINEA:
                           NOT READY FOR

                            [REDD]

www.greenpeace.org.au
PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
contents
        Executive Summary                               1
        Introduction                                    2
        Recommendations                                 3
        The Promise of REDD in PNG                      4
           The Need for International REDD Finance      4
           Somare’s Plan: From Copenhagen to Cancun     5
           McREDD and Rushed REDD Plans                 5
           Carbon Cowboys                               7
           Donor Bodies and REDD Financing              8
        Poor Forest Governance in PNG                  10
           Illegal and Destructive Logging             10
           Corruption in the Forestry Sector           10
           Dismantling of Indigenous Peoples’ Rights   12
        Conclusion                                     13
        Reference                                      13

©Greenpeace/Scheltema
PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
Executive Summary

This report critiques the handling   rights means PNG is not currently     be taken to advance its case
of domestic policy aimed at          ready for REDD funding. This is       for REDD money. Greenpeace’s
Reducing Emissions from              unfortunate as future generations     key recommendations are
Deforestation and Degradation        of Papua New Guineans and the         a moratorium on new large-
(REDD) by the Government of          country’s unique biodiversity could   scale logging and agricultural
Papua New Guinea (PNG) and           miss out on a positive alternative    concessions and a review of
the way it has engaged with          to continued destructive industrial   existing operations and stringent
international REDD negotiations      logging.                              safeguards for indigenous peoples
since the 2009 UN Climate                                                  and biodiversity.
                                     Greenpeace is a strong advocate
Conference in Copenhagen.
                                     for fast-start funding for REDD       This report offers recommendations
The poor governance and              if it is provided with strict         for existing and prospective REDD
entrenched corruption that           preconditions for governance          donor countries and key conditions
has long characterised the PNG       reform. Greenpeace has provided,      that must be met by the
logging industry, together with      and will continue to provide,         GoPNG before REDD
a refusal to accept conditions       advice and recommendations to         financing occurs.
for REDD funding and a growing       the Government of PNG (GoPNG)
dismissal of indigenous peoples’     on the measures that should

                                                                                                               1
PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
Introduction

                              a
                ce/Scheltem                                                                            ©Greenpeace
    ©Greenpea                                                                                                        /Birch

There is no questioning the unique         The appeal of receiving international      Recently introduced legislation marks
environmental and cultural importance      financial assistance for REDD has          a shift towards reduced government
of PNG. Covering the eastern half of       seen PNG position itself as a leader       transparency and an increasing
the island of New Guinea, the country      within international REDD discussions.     disregard of rights of its indigenous
hosts one of the world’s largest and                                                  peoples – the owners of 97% of the
                                           Yet this high level of influence has
most diverse areas of remaining intact                                                country’s forests.
                                           not been reflected in leadership on
tropical forest. It also supports the
                                           effective emission reductions or           PNG’s GHG emissions reduction
Earth’s most diverse collection of
                                           forest protection domestically. What       plans focus largely on Reduced
cultures with over 850 languages.
                                           national policy has been developed         Impact Logging (RIL), sidelining the
Yet PNG faces significant                  thus far aims to maximise potential        benefits of conservation. It also leaves
environmental and economic                 international REDD funding rather          many to conclude that PNG’s largely
challenges. Much of the largely            than improve institutional and political   foreign-owned logging industry and
rural-based population does not have       capacity in PNG in order to implement      pro-logging advisors retain undue
access to health or education services     effective REDD policy and measures.        influence over the GoPNG and its
and one third of the population lives                                                 forest and REDD policies.
                                           Meanwhile, the search and investment
on less than US$1.25 a day.1
                                           for voluntary REDD carbon credits          For the GoPNG to provide an
Decades of industrial logging have         and schemes has ballooned in               alternative to continued destructive
not delivered the promised benefits        PNG as speculative investors and           logging and deforestation, which has
of employment, improved health and         entrepreneurs look to get into a           shown no real benefit to its people,
education. Communities affected            rapidly emerging but uncontrolled          it must embark on a new way to
by logging have witnessed the loss         market.                                    engage with REDD policy at home
or destruction of their forests and                                                   and abroad.
                                           Corruption within PNG’s forest
waterways, two things that are key
                                           industry, disregard for land owner         For prospective international REDD
to their subsistence way of life. Today
                                           rights, inflated estimations of likely     donors, the greatest way to support
only 55% of PNG’s forests remain as
                                           benefits from REDD and a lack of           the people of PNG and achieve
intact forest landscapes,2 much of
                                           effective institutional systems in place   the objectives of REDD is to insist
which are at risk of being lost forever.
                                           do not engender confidence in the          on legislative preconditions to
Due largely to unsustainable levels        country’s ability to manage a funded       accompany REDD funding.
of logging, PNG has the second             institutional transition to a low carbon
highest proportion of national             economy. Rather than leading to
greenhouse gas (GHG) emissions             institutional reform, these allegations
from land use and land use change          have resulted in the re-naming of
and forestry (LULUCF) in the world.3       relevant institutions to deflect blame.

2
PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
Recommendations

To REDD donor countries and                    landowners. It must also ensure       5. Reject the baseline and business
institutions:                                  areas of high conservation               as usual (BAU) scenarios within
                                               value, primary forests and intact        their Climate-Compatible
1. Implement a comprehensive set
                                               forest landscapes are protected          Development Interim Action
   of preconditions and safeguards
                                               with a focus on community                Plan (IAP) and Strategy (SDCCD).
   for credible REDD and Climate-
                                               protected areas;                         Instead, use realistic assumptions
   Compatible Development in PNG
                                                                                        for GHG abatement based upon
   that includes:                          f. Measures to ensure forest
                                                                                        10 year average deforestation
                                              governance reform in order
  b. Recognition and respect for                                                        rates similar to the approach
                                              to keep corruption out of REDD.
     indigenous peoples’ rights to                                                      taken in Brazil.
     the forest lands and carbon         2. Establish a ‘PNG Forest Fund’ with
                                                                                     6. Carry out comprehensive and
     (including a requirement of a          multi-stakeholder governance that
                                                                                        inclusive consultation with
     review of the Environment Act          includes civil society and NGO
                                                                                        PNG civil society including the
     to remove elements that breach         representatives, similar to the
                                                                                        customary landowners on the
     the UNDRIP);                           Amazon Fund.
                                                                                        proposed IAP and SDCCD.
  c. No support or financing for         To the Government of Papua New              7. Redirect the IAP and SDCCD
     industrial logging (including RIL   Guinea:                                        to focus on GHG abatement
     or SFM) of intact or primary
                                         3. As a demonstration of commitment            from forest protection, particularly
     forests, and the re-alignment of
                                            to REDD, immediately declare a              in primary forest and restoration
     the forestry sector to focus on
                                            moratorium on industrial logging in         of secondary forest, rather than
     management and restoration
                                            intact or primary forest and forest         a continuation and expansion
     of secondary forests and local
                                            conversion for industrial agriculture.      of logging (RIL).
     processing;
                                         4. Ensure the REDD and PNG laws             8. Establish a ‘PNG Forest Fund’
  d. The implementation of
                                            respect the rights of the customary         to manage REDD finance with
     a moratorium on forest
                                            landowners as laid down in the              multi-stakeholder governance
     conversion for industrial
                                            PNG constitution and the UN                 that includes civil society and
     agriculture and the expansion
                                            Declaration on the Rights of                NGO representatives, similar
     of logging into intact or primary
                                            Indigenous Peoples. Further, rights         to the Amazon Fund.
     forests by the Government
     of PNG;                                to forest carbon and the majority
                                            of benefits from its conservation
  e. Participatory land use and             should remain with the customary
     conservation planning based            landowners.
     on the free prior and informed
     consent of the customary

               ce/Solness
   ©Greenpea

 The greatest way to support the
                                     people
 of PNG and achieve the objectiv
                                    es of REDD
 is to insist on legislative preco
                                   nditions
 to accompany REDD funding
                                                                                                                              3
                                                                                                                   ©Greenpeace/Toyoda
PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
The promise of REDD in PNG

The Need                                  intact forest landscapes where            dependent on overseas aid to bridge
                                          there is currently little deforestation   the gap in it’s development needs
for International                         and degradation occurring,                and rapidly increasing population.
REDD Finance                              the conservation of existing              The Australian Government,
The protection of PNG’s forests,          forests, especially primary forests,      for example, gave $457.2 million in
in particular the intact and primary      is critical both for preventing future    aid to PNG in 2010.8 This represents
forests that store considerable           greenhouse emissions through loss         about 6% of PNG’s GDP in 2009.9
volumes of carbon, is essential for       of carbon stocks and continued
                                                                                    With REDD finance there is the
mitigation of climate change. Much        sequestration, as well as for
                                                                                    opportunity to marry the two goals
of this forest is threatened by logging   conserving biodiversity.” 4
                                                                                    of GHG emissions reductions through
and conversion for agriculture. The       The UN Convention on Biological
                                                                                    forest conservation and development
people of PNG, most of whom live a        Diversity (CBD)
                                                                                    that improves the livelihoods of local
subsistence life relying on the forest,   However, continued illegal and            communities. REDD finance could
also have the right to development        destructive logging and the               provide essential infrastructure and
and improving their livelihoods.          conversion of forest areas into           services such as education, health,
Therefore protection of their forests     plantations could see much of PNG’s       communication and housing as well
for the global benefit is going to        commercially accessible tropical          as support small-scale low-impact
require international financing to        forests cleared or degraded by 2021.5     community use that maintains the
compensate forgone development.                                                     carbon and biodiversity.
                                          With over 85% of PNG’s people living
Only 55% of PNG’s forests today           within the forest and surrounding rural   However a major challenge is for
are in large blocks of primary forest     areas, the forests play an important      PNG to transform its policies, laws
(>500 km2) of minimally disturbed         role in their livelihoods. However,       and institutions, if it is to ready itself
forest ecosystems known as Intact         access to education and health            for increased international assistance
Forest Landscapes (IFLs).                 care remains a major development          via REDD. It will need to bring down
“Primary forests are generally            challenge. One third of the population    the high levels of corruption and
more carbon dense, biologically           lives on less than US$1.25 a day.6        improve governance if donors are to
diverse and resilient than other          Despite years of economic growth,         be reassured that REDD financing
forest ecosystems, including              industrial development has benefited      can achieve the goals of emissions
modified natural forests and              only a very few, with many living in      reductions, forest conservation and
plantations, accordingly, in largely      poverty.7 PNG has traditionally been      climate-compatible development.

                                                                                                               ©Greenpeace
                                                                                                                             /Scheltema

                              Hibber t
                ce/Sut ton-
    ©Greenpea

4
PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
e logging
                                                              Continued illegal and destructiv
                                                                                               as into
                                                              and the conversion of forest are
                                                                                             PNG’s
                                                              plantations could see much of
                                                                                              al forests
                                                              commercially accessible tropic
                                                              cleared or degraded by 2021

                                                                                                              ©Greenpeace/Solness

Somare’s Plan: From                       Somare also criticised the current         GoPNG has developed an Interim
                                          processes under the World Bank             Action Plan for Climate-Compatible
Copenhagen to Cancun                      and the United Nations, calling them       Development (IAP).13 The plan
On 27 May 2010, at the Oslo Climate       a tangle of “endless process and           purports to shape more climate-
and Forest Conference, PNG Prime          conditionality’s (sic)”. The implication   resilient development whilst almost
Minister Michael Somare outlined          being that safeguards for biodiversity     doubling annual GDP growth and
the country’s new plans for REDD          and indigenous peoples’ rights             suggests a BAU emissions growth
and described it as a model for all       (which Somare’s speech and the             of almost 40% over the next 20 years.
prospective countries looking to          Coalition for Rainforest Nations (CfRN)    However, there are a number of
benefit from REDD.10 In his speech,       presentation failed to address), are       significant failures in the plan.
he also identified the finance needed     hindering the flow of REDD finance.
                                                                                     Firstly the GoPNG proposes the need
by PNG for a targeted cut of over
                                                                                     to “clarify and rationalize the allocation
110 million tonnes of GHG emissions       Rushed REDD Plans                          of land between forestry, commercial
(between 2011 and 2015 and for a
                                          While PNG has made commitments             agriculture, subsistence agriculture
low carbon pathway leading to 1.1 to
                                          to reduced GHG emissions, it has           and other uses such as hunting”.
1.5 billion tonnes of CO2e reductions
                                          relied heavily on analysis that inflates   Previously the government declared,
before 2030.
                                          baselines and BAU scenarios,               “All natural forest carbon is owned
While PNG has not yet lodged a            and opts for expanded logging              by the customary landowners and
National Communication on GHG             as the main REDD abatement                 managed by the state.” 14 However,
emissions, deforestation and              strategy. Further to this, it has          details are scant on how the state
forest degradation emissions were         largely excluded local civil society       will ‘manage’ the carbon on the
estimated to be about 44 million          including the customary (indigenous)       landowners behalf, especially how
tonnes in 2010.11                         forest holders, in the development         benefits will be shared.
                                          of its climate-compatible plans,
Somare identified that PNG needs                                                     Outwardly it would appear that the
                                          and is simultaneously undermining
‘fast start funding’ of between                                                      GoPNG is proposing to effectively
                                          indigenous rights through
US$715 million to US$1 billion in three                                              appropriate the rights over forest
                                          amendments to the country’s laws.
phases over the period 2011 –2015:                                                   carbon, control any financial gains
                                          In February 2010, PNG made a               or sales, and decide on how any
• US $71 million for readiness
                                          conditional commitment to the              benefits are distributed. Customary
  payments
                                          UNFCCC, under the Copenhagen               landowners have not handed over
• US $118 million for pilot program       Accord, that GHG emissions would           their rights to the State to manage
  costs                                   be reduced by about 30% from               forest carbon and any attempt to do
• US $526 – 811 million for               current levels and about 50% from          so would cause significant opposition
  performance based payments.12           BAU by 2030.                               to REDD in PNG.

                                                                                                                                5
PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
Current rates of logging are un
                                                                                                  sustainable
                                                                  and most of the productive for
                                                                                                 est will be
©Greenpeace/Behring- Chisholm                                     logged by the end of the decade

      With or without landowner support,       caused by logging and instead using       use an average ten year deforestation
      the GoPNG proposes a 50%                 RIL to restore secondary logged over      rate as a reference period – so
      reduction in BAU GHG emissions           forests together with local processing.   that donors can base performance
      by 2030. In effect the GoPNG                                                       payments on actual reductions in
                                               Indeed, under the BAU scenario,
      proposes a 10% reduction in the                                                    deforestation and degradation.
                                               the IAP suggests that a 2% annual
      estimated emissions of GHG in 2010,
                                               growth in log and agricultural            Furthermore, monitoring, reporting
      largely through changing forestry
                                               commodity production and a doubling       and verifying emission reductions
      and agricultural practices. The IAP
                                               in production of minerals and oil         based on RIL is difficult and expensive
      suggests that these reductions
                                               and gas to 2030. As recent studies        compared to the relatively simple
      are conditional on an international
                                               suggest, current rates of logging         spatial analysis required for reductions
      agreement that will fund REDD,
                                               are unsustainable and most of the         in area of primary forest logged or
      so that “Papua New Guineans
                                               productive forest will be logged by       forest not cleared. It is therefore
      are compensated for ecosystem
                                               the end of the decade. It is therefore    questionable that RIL can achieve
      services and emissions benefits they
                                               questionable whether a 2% annual          genuine emission reductions in PNG.
      contribute to the world, and for the
                                               increase in log production to 2030
      resulting changes to their incomes                                                 Therefore in order to develop
                                               is even possible, even before
      and livelihoods”.                                                                  a credible climate-compatible
                                               considering whether landowner
                                                                                         development strategy the GoPNG
      These could be seen as laudable          approval for the expansion is possible.
                                                                                         needs to shift to real emissions
      goals if not for the fact that much of
                                               Projected future BAU reference levels     reductions through the protection
      this abatement potential is estimated
                                               for REDD are poor standards to            of primary forest together with
      to be from Reduced Impact Logging
                                               estimate and reward reductions.           community development, RIL only
      (RIL) in existing operations (logging
                                               An increasing reference level based       in the millions of hectares of already
      primary forest). Apart from some
                                               on BAU projections assumes                logged over forests, and by allowing
      reference to conservation initiatives
                                               continuing deforestation and              industrial agriculture expansion only
      and community REDD projects,
                                               degradation and a built-in incentive      in already cleared areas.
      no assessment of the GHG
                                               to inflate such reference baselines:
      abatement opportunities of
                                               the higher the reference baseline
      conserving the remaining primary
                                               assumed, the easier it is to generate
      forests in PNG is undertaken in the
                                               ‘reductions’ and hence gain rewards.
      IAP. Conserving primary forest is the
      easiest and surest way of addressing     To ensure real emissions reductions
      the massive forest degradation           PNG should follow Brazil’s lead and

      6
PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
Carbon Cowboys                            A week later, an Australian company         They threatened me. They told me,
                                          was embroiled in a US $100 million          You sign. Otherwise, if you don’t
Voluntary carbon trading has              carbon trading scandal in PNG.              sign, I’ll get a police and lock you up,”
fuelled PNG’s ongoing ‘cargo cult’ 15     Carbon Planet admitted to giving fake       said a leader of the Kamula Doso
and the corruption of officials and       carbon certificates that purported to       peoples Abilie Wape.23 This is in spite
parliamentarians.16 Described as          represent a million tonnes of voluntary     of the fact that the Kamula Doso
a classic 21st-century scam, it is        carbon credits issued by the UN. The        area is subject to a court injunction
known in PNG as mani bilong skai          company claimed that the certificates       preventing carbon trade project
– sky money – because it appears          created by PNG officials were merely        development as well as a land
to be selling air. Current proposals      props to help persuade landowners           dispute – both are in process in
being rushed through undermine            to sign over the carbon rights to their     the PNG courts.
indigenous peoples rights, inflate        forests.18 After an investigation, the
BAUs and may allow logging. The                                                       In August 2010, both carbon trade
                                          head of the PNG Office of Climate
government has sent mixed signals                                                     projects and supposed REDD pilot
                                          Change, Theo Yasause, was removed
on whether it supports them or not.                                                   schemes were the subject of criticism
                                          from office in 2010.19
                                                                                      for “a litany of inconsistencies,
In addition to the scandals and           In June 2010, two carbon projects           dubious science, legal issues and
corruption associated with logging,       have sought approval from the               concerns landowners will be ripped
there have also been a number of          Climate Community and Biodiversity          off.” 24 The baseline data on the
events linking the PNG government         Standards. The Minister for Forests,        volume of timber appears to be
to the so called ‘carbon cowboys’.        Belden Namah endorsed the                   inflated and there is a possibility
Late in 2009, Opposition Leader Sir       April Salome Project in East Sepik          that both could allow logging.
Mekere Morauta raised questions           Province as the first pilot project in
about claims of possible abuse of                                                     The GoPNG is sending conflicting
                                          the country.20 Yet conflicting this
process and corruption purportedly                                                    messages in respect to voluntary
                                          support, the PNG’s Office of Climate
based on official documents bearing                                                   carbon trading in PNG. On the
                                          Change and development executive
signatures of high public officials, 17                                               international stage, the Prime Minister
                                          director Wari Iamo stated: “The PNG
including:                                                                            Michael Somare insists that his
                                          Government does not recognise
                                                                                      Government is opposed to voluntary
• The then Office of Climate Change       and disavows any partnership,
                                                                                      carbon trading. Meanwhile back in
  and Environmental Sustainability        support, endorsement or any form
                                                                                      PNG his Ministers and government
  (OCCES) involvement in issuing          of connection to the proposed
                                                                                      officers tell a different story. GoPNG
  carbon credits certificates to          projects.” 21
                                                                                      needs to urgently reign in all the
  foreign companies for forest areas      The second project, Kamula Doso             voluntary projects until it has a robust
  in PNG.                                 in Western Province, is led by              policy framework that is supported
• A document, signed by then              controversial Australian businessman        across the entire government.
  Acting Secretary for Commerce           Kirk Roberts.22 In many of the
  and Industry and co-signed by the       voluntary carbon projects there have
  current National Planning Minister      been concerns about landowner
  Paul Tiensten which confirms the        consent but in this case one tribal
  receipt of US$200 million, paid by      leader claims he was forced at
  C.A. PNG Ltd to the GoPNG for           gunpoint to sign away his lands to
  Carbon Credits totaling                 the project. “They came and got me
  33,333,333 tonnes.                      in the night... police came with a gun.

                                                                                                                              7
   ©Greenpeace/Solness                                   ©Greenpeace/Sutton-Hibbert    ©Greenpeace/Morris
PAPUA NEW GUINEA: NOT READY FOR - Greenpeace
Donor Bodies and REDD                         As an active architect of the World       Forest Initiative is “to promote
                                              Bank’s Forest Carbon Partnership          the conservation of natural forests
Financing                                     Facility (FCPF), PNG has also had         to maintain their carbon storage
It is not surprising that there has been      surprising difficulty with securing       capacity.”
little international interest in PNG as a     funds. It’s first application was
                                                                                        The German Ministry for Economic
responsible recipient of REDD funding         rejected largely due to a lack
                                                                                        Cooperation and Development’s
due to high levels of corruption,             of consultation and significant
                                                                                        (BMZ) binding guidelines on forests
carbon cowboy scandals, and lack              information gaps. The FCPF has since
                                                                                        (Forest Sector Strategy) states
of political leadership on REDD               accepted an amended application,
                                                                                        “primary forests, are the most
in PNG. While Australia has pledged           but there is still some disagreement
                                                                                        important terrestrial reservoirs for
a small amount ($3m) for capacity             whether this will be in the form of
                                                                                        carbon”, and “minimum ecological
building and UN – REDD is assisting           Readiness Funding or will merely
                                                                                        standards in forests with high
(US $2.5m), PNG hasbeen ignored               lead to PNG receiving technical
                                                                                        conservation value, protection of
by many donor countries looking               assistance.26 However, it has been
                                                                                        the ecosystem’s biodiversity takes
to support nations with progressive           reported that PNG has advised the
                                                                                        precedence over other goals”.
policy positions.                             FCPF that until other countries have
                                              received FCPF grants, it will only seek   The environmental safeguards of
PNG expressed interest in becoming
                                              resources from UN REDD and not            the Japan International Cooperation
a pilot country in the first and second
                                              from the FCPF.                            Agency (JICA) state that: “Projects
round of investments in REDD
                                                                                        must not involve significant conversion
pilots under the World Bank Forest            The GoPNG’s focus on reduced
                                                                                        or significant degradation of critical
Investment Program (FIP) but so               impact logging rather than forest
                                                                                        habitats or critical forests” and
far has failed to be recommended              protection is out of step with
                                                                                        “illegal logging of forests must be
or approved by the Expert Group               many key donors safeguards or
                                                                                        avoided.” All three governments
of the FIP.25                                 aid finance policies. One of three
                                                                                        also have safeguards on indigenous
                                              objectives of the Norwegian
                                                                                        peoples’ rights.
                                              US $3 billion Climate and

     PNG has been ignored by many donor
     countries looking to support nations
     with progressive policy positions

                                                           a
                                    ©Greenpeace/Scheltem

                                                                                                               ©Greenpeace
                                                                                                                             /Behring

8
The people of PNG deserve to
                                                                                               have their
                                                               country develop in a way that
                                                                                              improves
                                                               their livelihoods and protects the
                                                                                                  ir natural
                                                               resources for future generation
                                                                                                s

                                                                                                               ©Greenpeace/Behring-Chisholm

Governance issues are also behind              There have been suggestions               said “We don’t trust him with the
much of the reluctance of donor                reported by insiders that the failure     money carbon trading will bring.”
countries and bodies to provide                of the GoPNG to effectively negotiate     So far, the income from carbon
capacity building finance to PNG.              international finance flows for REDD      trading remains mani bilong skai. 27
GoPNG’s plans for institutional                is partly due to the US-born Climate
                                                                                         The people of PNG deserve to have
changes and capacity building for              Ambassador, Kevin Conrad, who
                                                                                         their country develop in a way that
climate-compatible development will            reputedly retains a tight control
                                                                                         improves their livelihoods and protects
do little to address PNG’s credibility         of PNG’s REDD policy.
                                                                                         their natural resources for future
gap with donors. Following Brazil’s
                                               Conrad has come under fire in the         generations. REDD could provide
example, PNG needs to establish
                                               PNG parliament, primarily for his         funding to achieve this, or it could
a ‘PNG Forest Fund’ with multi-
                                               activities as an investment banker.       compound corruption and ongoing
stakeholder governance to manage
                                               Last year, Peter O’Neill, while           forest degradation. PNG needs to
REDD preparedness, finances and
                                               opposition leader, attacked Conrad        develop a coherent and inclusive plan
benefit sharing.
                                               for his roles in a failed US $8m public   that includes placing a moratorium
                                                                servants’ housing        on the logging of primary and intact
                                                                scheme and in the        forests, as well as on agricultural
                                                                US $17m collapse         expansion into forested areas, and
                                                                of commodity exporter    transforms its institutions and forest
                                                                Angco Coffee. Mal        governance. Until then, it would be
                                                                 ‘Kela’ Smith, the       irresponsible for international funding
                                                                 Governor of the         bodies and donor governments to
                                                                  Eastern Highlands,     provide PNG with REDD funding.

                                                                                                                                   9
                              ©Greenpeace/Sutton-Hibbert
Poor Forest Governance in PNG

Despite having some of the best              No logging concession is able to         in particular has a long history
forestry laws in the world, PNG’s            meet the International Tropical Timber   of corruption and undue dealings.
reputation as a forest manager is very       Organisation’s (ITTO) criteria for
                                                                                      In the first admission of its kind
poor. Failure to control illegal and         sustainable logging and none, except
                                                                                      by a PNG government official, the
destructive logging means that the           for two community eco-forestry group
                                                                                      country’s Forest Minister, Belden
GoPNG is not ready to implement              schemes, have Forest Stewardship
                                                                                      Namah, told parliament in 2008 that
the even more technical and rigorous         Council (FSC) certification.
                                                                                      logging companies routinely flout the
governance and enforcement
                                             Privately owned companies control all    law with the help of corrupt officials.31
structures that will be required
                                             commercial timber production from        He revealed that most of his
to ensure postive REDD outcomes.
                                             natural forest areas. Malaysian owned    departmental officers responsible for
                                             companies dominate this commercial       monitoring forestry operations had
Illegal and Destructive                      timber production. The role of           ignored the law and that many were
Logging                                      the State is limited to inadequate       ‘in the pockets’ of logging companies.
The majority of logging operations           monitoring and control.                  Later in 2008, the Post-Courier
in PNG can be classified as                                                           newspaper linked unnamed PNG
environmentally, economically                Corruption in the                        politicians to US $45m in a Singapore
and socially unsustainable 28 and            Forestry Sector                          bank account, allegedly money
the vast majority of the logging in                                                   earned through secret logging deals.32
                                             The lack of financial accountability
PNG is illegal.29                                                                     In 2009, PNG’s anti-corruption
                                             and oversight of government ministers
In one GoPNG review of 14 forestry           and bureaucrats in PNG continues to      watchdog investigated the alleged
operations between 2000 and 2005,            undermine confidence in the country’s    payment of millions of dollars in bribes
none could be defined as legal and           ability to deliver on key Government     from the logging industry to ministers
only one project managed to meet             programs and equitably distribute        in the government of Prime Minister
more than 50% of key criteria for            its wealth. Cronyism and self-interest   Michael Somare. Media reports in
a lawful logging operation.30                seem to be the mantra of many in         PNG claimed there was a money trail
                                             the GoPNG and the forestry sector        of corrupt payments from Singapore

                                                                                    ns in
                                                   The majority of logging operatio
                                                                                  onmentally,
                                                   PNG can be classified as envir
                                                                                   stainable
                                                   economically and socially unsu

                 ce/Murphy
     ©Greenpea

                                                          heltema
                                         ©Greenpeace/Sc

                                                                                                           ©Greenpeace
                                                                                                                         /Solness

10
©Greenpeace/Sutton-Hibbert

through Australia to Port Moresby,     “In Papua New Guinea, the effects        Corruption remains a significant
with $US 27m being withdrawn from      of lobbying alongside other forms        barrier to sustainability for PNG’s
one account around the time            of corruption to influence decisions     forestry sector. Despite a number
of the last PNG national election.33   on forestry and logging have             of independent reports and
The Ombudsman Commission failed        had a significant impact on the          investigations, some undertaken
to determine whether the payments      sustainability of the industry.” 35      by the PNG Ombudsman, the current
to the Singapore bank accounts were                                             GoPNG has failed to adequately
                                       In 2009, the PNG Auditor General
derived from a 2% take of logging                                               recognise the problem and had
                                       said corrupt officials had stolen
export revenues from operations in                                              placed little emphasis on measures
                                       about $360m annually in recent
the Gulf Province in southern PNG.                                              to rectify and punish individuals
                                       years.36
                                                                                for corruption.
In its 2009 Global Corruption
                                       In 2009, allegations were made that
Report, Transparency International                                              Any successful REDD program will
                                       the shooting of PNG’s top corruption
found that forestry in PNG had                                                  require a high level of monitoring,
                                       fighter, Chief Ombudsman Chronox
reached a critical juncture with                                                good governance and transparency.
                                       Manek, was linked to corrupt parties
current levels of logging said to                                               There is a long way to go before the
                                       wishing to silence him. This indicates
be unsustainable, and the legality                                              GoPNG can honestly claim to be
                                       just how far parties may be willing
of many current concessions in                                                  ready to deliver such guarantees
                                       to go to hide their activities.37
doubt.34 The report concluded that:                                             and cleaning up its forestry sector
                                                                                must be a priority.

                                                                                                                       11
olm
                                                                                    /Behring- Chish
                                                                      ©Greenpeace

                                                                                                                                  ©Greenpeace/Sc
                                                                                                                                                   heltema

                                                   Environmental laws in PNG are
                                                                                 currently
                                                   under threat

Dismantling of                               The amendments ban legal                                  • is contrary to National Goal and
                                             challenges against environmentally                          Directive Principles – Goal 4; and
Indigenous Peoples’                          destructive projects if the project
                                                                                                       • breaches Constitution Section
Rights                                       is ruled to be of ‘national interest’ 39.
                                                                                                         25(2) and Section 25(3).
As mentioned, PNG has some of the            These include removing landowners’
                                             rights to challenge in court any                         In response to media criticism over
most comprehensive environmental
                                             development that impacts their land                      the amendments, the Attorney-
laws relating to forests in the world.
                                             from future or continuing harm and                       General, Ano Pala, issued a decree
This is due largely to the requirement
                                             to be awarded compensation.                              imposing a media blackout on debate
for prior and informed consent of
                                                                                                      saying, “your right to freedom of
traditional landowners for forestry          Legal opinion suggests the
                                                                                                      expression is now subsumed.” 40
or other natural resource exploitation.      Environment (Amendment) Act 2010
Yet these laws are currently under threat.   should be declared unconstitutional                      The new laws, which have not
                                             as it:                                                   gone unnoticed by civil society in
Thanks to PNG’s foresty laws,
                                                                                                      PNG and are currently the subject
the judiciary has been used effectively      • breaches the right to protection
                                                                                                      of a Constitutional challenge, are
to limit some of the worst examples            and enforcement of landowners’
                                                                                                      perhaps the most obvious example
of landowner abuse and                         guaranteed rights under S57 of
                                                                                                      of the GoPNG’s attempts to sideline
environmental impact at the hands              the Constitution;
                                                                                                      indigenous rights.
of the PNG logging industry. However,
                                             • breaches the landowners’ right
the overloaded courts often take years                                                                The 2009 policy which purportedly
                                               to compensation under S58 of
to hear a case.38                                                                                     attempts to relieve customary
                                               the Constitution;
                                                                                                      landowners of their rights over
Only one day after Somare’s speech
                                             • breaches the landowners’ rights                        forest carbon (as detailed above)
in Oslo earlier in 2010, the PNG
                                               to unjust deprivation of property                      is a specific example of the GoPNG
Parliament broke parliamentary
                                               under S53 of the Constitution;                         seeking to exclude indigenous rights
standing rules to amend its
                                                                                                      in the context of REDD.
environmental laws.

12
Conclusion

Unless measures are taken to                             and illegal logging and an
protect PNG’s forests, the current                       increasingly desperate and
pressure from destructive industrial                     corrupt leadership continues
logging looks set to continue. The                       to bulldoze the rights of
result will be a disaster for the climate,               indigenous peoples.
the people of PNG who rely upon the
                                                         Ensuring that strict
forests and the critically important                                                                                                             ©Greenpeace/Sutton-H
                                                                                                                                                                        ibbert
                                                         safeguards for people and
ecosystems that exist within them.
                                                         biodiversity are attached
REDD offers a significant opportunity                    to REDD payments, such
for the future of PNG. Yet there                         as those proposed by
is nothing to be gained by the                           the German Government and those                        achieved and that countries like
international community or by the                        recommended in this report, will                       PNG will be saving their forests for
people of PNG when forests are                           ensure the maximum environmental                       the good of the planet, not the profits
not protected from destructive                           and social benefits are                                of a few.

Reference
1. UNDP – United Nations Development Program (2009) Human Development              21. ibid.
    Indices, Table 3: Human and income poverty, p35. http://hdr.undp.org/en/       22. Convicted of race horse doping and illegal cock fighting.
    media/HDI_2008_EN_Tables.pdf                                                   23. Quote from SBS documentary ‘PNG Climate Woes Continue’ December
2. IFL: An unfragmented expanse of forest and natural ecosystems within                2009.
    a forested landscape that is minimally disturbed by people and larger          24. ibid.
    than 50,000 hectares.                                                          25. FIP -Forest Investment Program - Expert Group (2010) Recommendations
3. WRI -World Resources Institute (2010) Climate Analysis Indicators Tool              for Additional Pilots under the FIP, Second Report of the Expert Group to the
    (CAIT) Version 5.0. Washington, DC: World Resources Institute (WRI).               FIP Subcommittee, 4 June 2010.http://www.climateinvestmentfunds.org/cif/
    http://cait.wri.org.                                                               sites/climateinvestmentfunds.org/files/FIP%207%20Expert%20Group%20
4. CBD - Convention on Biological Diversity (2009) Connecting Biodiversity             June%202010_key_document_071910.pdf.
    and Climate Change Mitigation and Adaptation – Report of the Second            26. UN REDD (2010) Initial Draft of the UN REDD Program – PNG Quick Start
    Ad Hoc Technical Expert Group on Biodiversity and Climate Change.                  Initiative http://www.unredd.org/UNREDDProgramme/CountryActions/
    CBD Technical Series.                                                              PapuaNewGuinea/tabid/1026/language/en-US/Default.aspx.
5. Shearman, P.L., Bryan, J.E., Ash, J., Hunnam, P., Mackey, B. & Lokes,           27. Callick, R. (2009a).
    B. (2008) The State of the Forests in Papua New Guinea, University of          28. ITTO – International Tropical Timber Organisation (2007) Achieving the ITTO
    Papua New Guinea. http://www.scienceinpublic.com/png_forests.htm.                  objective 2000 and sustainable forest management in Papua New Guinea,
6. UNDP – United Nations Development Program (2009) Human Development                  Report of the diagnostic mission. http://www.itto.or.jp/live/Live_Server/3632/
    Indices, Table 3: Human and income poverty, p35. http://hdr.undp.org/en/           E-C42-7_PNG_Mission_Full_Report.doc; ODI – Oversees Development
    media/HDI_2008_EN_Tables.pdf.                                                      Institute (2007a). What can be learnt from the past? A history
7. The GoPNG developed the PNG Definition of Poverty, as being: “Lack of               of the forestry sector in Papua New Guinea. Papua New Guinea Forest
    access to economic and financial growth opportunities and the inefficient          Studies 1. http://www.odi.org.uk/fecc/resources/reports/ png_paperone_
    delivery of, and lack of access to basic services. The factors contributing        history.pdf ; ODI-Overseas Development Institute (2007b). The current legal
    to this definition of poverty include: weak governance, weak social support        and institutional framework of the forest sector in Papua New Guinea. Papua
    systems, unsustainable use of natural resources, unequal distribution of           New Guinea Forest Studies; Sherman et al. (2008).
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    D. (2010). Urban Poverty in Papua New Guinea. National Research Institute          towards a Timber Permit or a Timber Authority, Observations and
    Discussion Paper 109. National Library Service of Papua New Guinea.                Recommendations, The Independent Forestry Review Team, prepared for
8. Oaks, D. (2010) Top PNG diplomat attacks Coalition; Howard era ‘derailed            the Government of Papua New Guinea, October 2001; Roberts, G. (2006a)
    bilateral relations’ – ELECTION 2010. The Age, Melbourne. 13 August, p6.           The rape of PNG forests, The Weekend Australian 24-25 June, p29; Roberts,
9. PNG’s estimated GDP in 2009 was US $7.907b according to The CIA World               G. (2006b) Timber scam costing PNG $100m a year, The Australian 20 July,
    Factbook CIA (2010).                                                               p7; McDonald, H. (2006) Loggers remain a law unto themselves, Sydney
10. The REDD Monitor (2010a) http://www.redd-monitor.org/wordpress/wp-                 Morning Herald, 9-10 September, p22; SBS Australian Television (2001)
    content/uploads/2010/06/PM-Somare-at-Oslo-Forest-Climate-Conference-               Wilderness Laid Waste by Corruption, Dateline May 2; SBS Australian
    27-May-2010-Final.pdf.                                                             Television (2004) Jungle Justice, Dateline November 2.
11. WRI (2010).                                                                    30. Forest Trends (2006) Logging, legality and livelihoods in Papua New Guinea:
12. With an equivalent carbon price of between $7 or $8 per tonne.                     synthesis of official assessments of the large scale logging industry vol. 1,
13. The IAP supersedes the previous strategy draft ‘Climate-compatible                 Forest Trends, Washington, DC.
    Development in Papua New Guinea. Second Draft for Stakeholder                  31. Roberts (2008a).
    Comment. March 2010’.                                                          32. Roberts (2008b).
14. PNG MoF - Ministry of Forestry (2009) Forestry and Climate Change              33. ibid.
    Framework for Action 2009-2015; PNG National REDD strategy draft               34. Transparency International, (2009). Global Corruption Report 2009:
    May 2009.                                                                          Corruption and the Private Sector. Cambridge University Press.
15. Power and leadership attributed to the provision of goods – traditionally          London. p164.
    thought to have been gifts from their ancestors.                               35. ibid.
16. Callick, R. (2009a) The rush is on for sky money. Weekend Australian.          36. ibid.
    Canberra. 5 September p13.                                                     37. ibid.
17. Yakham, H. (2009) Carbon credit concerns demand action. Papua –                38. ODI (2007).
    New Guinea Post – Courier. Port Moresby. 2 November, p14.                      39. ibid
18. Post-Courier (2009) Scandal threatening carbon trading rights. Post-Courier.   40. The Advertiser (2010). Papua New Guinea Media gagged, The Advertiser,
    Papua New Guinea. 11 September, p14.                                               Adelaide, 26 June, p26.
19. ibid.
20. PNG Forest Minister (2010) Press Statement. Forest Minister Endorsement
    of April Salome Forest Management Area for a Pilot Project for REDD.
    http://www.forestry.gov.pg/site/files/April%20Salome%20220609.pdf.

                                                                                                                                                                  13
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