Recently there has been so much negative publicity in the media about the Office of Climate Change (“OCC”) by concerned groups. These groups fall into four (4) main Categories:

a).      Genuine and concerned citizens,

b).      Foreign Aid Funded NGO Groups (and their Foreign Lawyers),

c).      Twelve (12) out of twenty (20) Governors of Provinces led by Hon. Malcolm Kela Smith MP of Eastern Highlands Province, and

d).      Foreign citizens holding academic or public policy development positions in the country.

Firstly let me re-establish for the benefit of the public four (4) core premises and values that the OCC has been working to engender:

• Climate Change Office is set up under the Department of Prime Minister, and by Cabinet Decision. It is a legitimate Office of the State that serves as the Designated National Authority under relevant International Treaties. Its processes and function’s are open and transparent.

• This Office is set up to define and protect the National Interest in the Climate Change Agenda in this country as against foreign interests. We do not exist to pander to foreign interests, aside from legitimate engagement on arms length basis. Those foreign governments and their agenda purveyors presently agitating on the sidelines must understand and appreciate the national interest of this country. They must come through the front door and not try to climb through the window or engage in sowing confusion and misinformation in what is clearly legitimate government policy and business.

• This Office led by Dr. Theo Yasause (and his team of national executives supported by internationally recognized and credible Papua New Guinea born and bred citizen scientists in Climate Change) believe in public awareness and transparency. That is why the office has initiated and held open road shows in major centres in the country recently where the public, political leaders, concerned community groups and individuals have aired their views.

• The OCC welcomes legitimate public input into formulation of policy and legislation. This is critical to developing Climate Change framework that is responsive to community needs. As a result of the road shows legitimate public sentiments have been taken into account and the OCC is now preparing a report on this for the Government and for purposes of policy and legislation.

 Secondly, let me address the misinformation in the media done deliberately to create sensationalism and drama with the view to destroy the Office of Climate Change and what it has achieved so far and what it stands to achieve for this country.

1.       REDD Carbon Credits Issuance:-

Addressing Climate Change under Reducing Emissions for Deforestation and Degradation (REDD) is a new Industry not just for Papua New Guinea but also for the rest of the world. New and innovative companies and individuals are springing up all over the place trying to take the lead on some aspects of REDD & Climate Change to cash in on it. With the Rules of REDD currently fine tuned by Dr. Kevin Conrad’s team for Copenhagen for later this year, there are companies and individuals all over the world heading to rain forest countries seeking to exploit what they see as new opportunities in a new frontier. Papua New Guinea is no exception. We have had coming through OCC doors genuine companies and individuals and we have not so genuine companies and individuals coming through the same doors. Focusing on specific projects:

Compliance, REDD and Voluntary Carbon Market

For CDM, there are very elaborate process and methodology to be followed before carbon credits are issued and sold. In PNG we only have one project in Lihir, and one is under and one under development by New Britain Palm Oil. Other projects are being considered for development.

In the Voluntary Market trading of carbon sinks can be undertaken for specific projects which may not meet the requirements of CDM. But based on moral obligations to addressing poverty, protecting bio-diversity and environment, whilst addressing climate change mitigation under Voluntary Carbon Standard (VCS). Credits can be purchased by a willing buyer who wish to offset their emissions offsets. REDD voluntary credits can be considered here.

Pilot Projects under the Voluntary Carbon Standards for REDD

We have been considering the possibility of undertaking pilot projects under reducing emissions from deforestation and degradation within the following provinces: East Sepik, Morobe, Oro, Western Province, Southern Highlands, and West New Britain. However, these are yet to be finalised except for April Salome in Ambunti Drekikier District and most probably in Morobe with the support of the Morobe Provincial Government.

Some landowner groups in the above provinces have been talking to various carbon traders and promoters to enter the voluntary market under VCS. We are aware that the Land Groups in April Salome, with the support of the Member for Ambunti Drekikier and Minister for Correctional Services are spearheading a trial carbon sequestration project under the Community Carbon Biodiversity Standard (CCBS) and VCS.

We are also aware that the landowners in Nawae and Kabbum are also organising themselves with the support of the Morobe Provincial Government to undertake a similar project which is being supported by the Governor Hon. Luther Wenge. This project was launched last week by the Governor, the Minister for Defence, and the Executive Director (OCCES).

The National Forest Research Institute and University of PNG will be assisting in the preparation of technical reports for the project.

Understanding the Voluntary REDD Process

Because of high level of difficulty in brining all the disparate elements required to from a REDD pilot project, the potential for unsavoury behaviour by some participants due to the high potential cash flow, and potential for outside interference by competitors and the press, it is recommended that we create a path of legitimacy for all REDD Projects.

Agriculture, Forestry and Other land use (AFOLU) projects of Reducing Emissions from Deforestation and Degradation are a category, have an opportunity to deliver real carbon abatement opportunity and a range of co-benefits to local communities and environment. Projects that deliver real financial benefits and sustainable livelihood to local communities, and that enhance the conservation of bio-diversity in an area, are likely to also deliver long term climate benefits.

This is because the generation of sustainable livelihood and incomes streams is essential to the alleviation of poverty including protection of bio-diversity.

Typically REDD and other AFOLU carbon abatement projects consist of three discrete but connected stages, each consist of a number of steps.

The first stage, Project Initiation, involves defining projects and assessing whether it is eligible to participate in specific greenhouse gas abatement schemes. Eligible criteria are established by schemes to ensure the project deliver positive, real, and permanent outcomes. If the project is eligible then typically a feasible analysis is undertaken to determine what the likely environment, social and economic outcomes of the project are likely to be. Project options are discussed between all stakeholders with management or ownership interest in the land.

The second stage, Project Design and Development (PDD), involves the actual development of the project. In this stage all stakeholders with ownership and management interest in the actual land are further consulted and included in the formulation of project objectives. Objectives may be explored through a process of land use planning optimisation. These projects are developed through project management and project implementation plans. The PDD assess the project leakage, risks and ongoing monitoring activities. The PDD is submitted for accreditation by relevant scheme or standard.

The third stage, Project Registration and Sales, involves the registration and sale of credits that have been accredited through third party accreditation of the project.

The key to securitizing the development process is for the PNG Government to “Gazette” in the development of the project of the formation steps that sit behind elemental development.

The approval must start with the consultative process. When, individual land groups (ILGs) are formally singed into the project, the corporation is formed, this fact is gazette to enhance the authority of the landowner project supported by the Local Member and Provincial Government.

When the local authorities notifies the PNG Forest Authority that they do not wish to log, but wish to participate in a REDD carbon project, this activity is gazetted to add both weight and sanction this action.

This is than submitted to the Minister for Climate Change for approval and Gazettal.

When the PDD and methodology are submitted to the verifiers, this activity is also gazetted to enhance credibility of the project under Voluntary Carbon Standard.

Suspension of Registration

For any carbon credits to be issued we must first identify a project site where the forest is under credible threat. Before we know the actual carbon credits, an inventory of the forest types must be undertaken, and an amount of credits identified before it can be issued to the project developers.

Climate Assist PNG Pty Ltd:-

This company sought to negotiate Carbon Credits is the market places that were not issued by this Office. This Office has had no dealings with this company in respect of credits issued. We were aware of this some months ago. We have our lawyers pursuing this matter with foreign law enforcement agencies as a matter of fraud. As such we cannot comment further on it.

Kamula Doso:-

There are landowner disputes on this Voluntary REDD Pilot project and this as of December 2008, and again confirmed in February 2009 the OCC withdrew and ceased any involvement in this project. There is a matter before the National Court between disputing village groups, and again we can not comment further as the matter as it is sub-judice.

April /Salome Project:-

This is a pilot REDD Voluntary project that has been set up with the mutual consent of and in consultation with all the Landowners. All Leaders of the area have been consulted. Affected Government Ministers and the Prime Minister has been briefed. There has been complete transparency and accountability on this project at all stages.

CDM projects under current International Treaty framework are legitimate projects. Even INA’s Paul Barker in his recent somewhat confusing Focus article last week agrees CDM is a legitimate mechanism for trade in Carbon Credits but note that we only have one CDM project in Lihir and one is under development with New Britain Palm Oil.

The Country has nothing to lose, and our landowners with their trees still standing have nothing to lose. If we cannot take advantage of legitimate international windows of opportunity under voluntary market for our people then this Office and ultimately the Government fails our people.

It is up to the landowners in various forest areas to agree among themselves and organize themselves with their local and provincial authorities. It is part of the OCC’s job to facilitate our people to realize the potential of their resources, while at the same time moving with care and understanding to develop appropriate policy and legislation. OCC has only been doing what it is mandated to do in this respect.

We have not received any direct funds from any trading of Carbon Trade under any CDM or voluntary Projects or from any international body.

We have processes and policy in place for receipt and accounting to all parties entitled to such funds in the event we receive any.

We have expanded limited funding from the State to set up the office and quickly engage relevant expertise and staff to take this country to the forefront of International dialogue on Climate Change. We are currently leading the Pacific in this respect.

All the accounts and processes of the OCC are open for the Auditor General to audit in the normal course of business. However, all slanderous innuendos about abuse of funds and lack of accountability are not true, and are clearly drawn from the well of self interest.

Personal Attacks:-

There have been negative aspersions created by certain politicians and public figures against Dr. Theo Yasause and Dr. Kevin Conrad, Papua New Guinea Climate Change Ambassador.

The position of Governor Mal Kela Smith needs to be seen in proper perspective of a proponent of a CDM project that he proposed in 2008, with certain foreign interests from Canada that did not eventuate because he clearly did not understand and comply with the normal process. It is important therefore for the readers to understand what is being said by leaders in the public interest, and what is said in private business interest capacity. Equally, leaders generally have a public duty not to abuse their positions or place themselves in compromising positions.

Conclusion:

Leaders must responsibly and raise them through their government caucus or through their Party Leader in the interest of collective and cohesive government. The OCC has no personal issue against any Governor/Leaders or any foreign funded NGO group or any other foreign interests operating in this country. We know these foreign interests and what they are about. We are created by the State to serve the national interest and the interest of our small people and that is what we will continue to do.