Profit sharing and climate finance in the DRC: scientists speak out

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Profit sharing and climate finance in the DRC: scientists speak out

The University of Kinshasa and the Center for International Forestry Research (CIFOR) organized a scientific and policy dialogue on REDD+ financing and benefit-sharing mechanisms in the Democratic Republic of Congo: opportunities and challenges. This dialogue was intended for government institutions, academics, donors, civil society organizations, the private sector, research institutions, and partners involved in the climate change, forestry, environment, and finance sectors. It took place in Kinshasa on Tuesday, October 17, 2023.

During this scientific morning, experts shared useful information, particularly on the typology of climate financing arriving in the DRC, its disbursement rate and the bottlenecks that prevent the country from taking full advantage of different climate finance mechanisms.

Between what is promised and what is disbursed, the Democratic Republic of Congo does not necessarily have the same disbursement rate as we see in other countries around the world. We have a relatively low disbursement rate. ", said Denis Sonwa, an expert at CIFOR.

According to the organizers, ongoing research conducted as part of the CIFOR and University of Kinshasa project will help shed light on some figures on climate finance flows related to the DRC.

Strengthening the existing framework

The debate also focused on analyzing the existing framework for sharing the benefits of climate finance and any challenges that may arise. The analysis revealed that civil society is less interested in climate finance than in the REDD process in general. It has contributed significantly to the development of the DRC's national REDD strategy and to studies on the drivers of deforestation.

Researchers noted the near-nonexistence of projects led by civil society, particularly regarding payments for environmental services. And yet, this flexible mechanism offers several advantages for communities and associations working to reduce or avoid emissions. However, it can be seen that Congolese civil society is not among the developers or promoters of REDD+ projects.

There are several reasons for this, including financial and technical constraints. Developing a project requires sufficient financial and technical resources. Other reasons not mentioned may also be involved. ", said researcher Dr. Stibniati Atmadja.

Several actions must be taken to encourage civil society to engage in this promising sector. The researchers recommended that the Congolese government support civil society as REDD project developers or promoters by providing them with financial and technical resources. The state must also provide a framework within which this support can be made possible.

Congolese civil society, as a beneficiary of the project, can then benefit from the funds generated by REDD projects. The benefit-sharing plan must be clearly defined and provide for a distribution that allows them to fully benefit from REDD projects.

The analysis also showed that the Congolese private sector has not entered the REDD process well and is not benefiting from the finances surrounding this process. There is little private sector participation in the REDD process in the DRC, with a few representatives including the FEC and the FIB. As a REDD project developer, the Congolese private sector is almost non-existent. ", said Blaise-Pascal Ntirumenyerwa Mihigo, Principal Researcher on the CIFOR-Unikin-Norad project.

There is an unclear framework for benefit sharing and payments for environmental services in the DRC that needs to be improved. Discussions with the participation of all stakeholders are worthwhile, drawing on existing science and field experience. The Congolese government must take the lead in this initiative and see it through to the end, with the participation of all stakeholders.

Carbon tax, a good initiative that divides

Another analysis presented during this dialogue focused on the feasibility of implementing a carbon tax in the DRC. The author of this study claims to have assessed the effectiveness of the tax recently introduced by the government and its social acceptance. Although it is not yet operational, pending the adoption of an interministerial decree, this tax is timely, the researcher believes.

Properly framed, the carbon tax could help mobilize more resources for the DRC's NDC. However, its implementation requires a few tools that can promote its effectiveness. These include defining the standard and strengthening the capacities of those who will be called upon to cover it.

However, this tax is not unanimous. Compared to the REDD process, the carbon tax still divides the parties. On the one hand, civil society claims not to have been consulted, and on the other, the private sector fears double taxation with other existing measures, including the pollution tax and other environmental taxes. It wants the government to provide concrete justification for the areas in which this tax should apply. " said researcher Claude Boyoo.

The Democratic Republic of Congo is working to update its legal framework to regulate the climate finance sector. The establishment of the Carbon Market Regulatory Authority (ARMCA) demonstrates the country's commitment to positioning itself well in the carbon credit market.

The scientists took the opportunity to call on the Congolese government to turn its attention to science, especially on complex issues such as climate finance.

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