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Land-use finance mapping in Papua New Guinea

1. Scoping summary

  • Main objectives of the study

    • Map out existing sources of land-use finance in Papua New Guinea (PNG)
    • Identify land-use finance that is aligned with climate change outcomes, as well as finance that is currently contributing to emissions from deforestation and forest degradation
  • Key policy framework

    National REDD+ Strategy

  • Sources of finance

    • International and domestic public finance
    • private finance
  • Type of finance

    Revenues and investment expenditures (disbursements)

  • Typology framework

    • Green flows: aligned to land-use mitigation objectives
    • Grey flows: aligned to land-use mitigation objectives, but only under certain conditions
    • Brown flows: driving land-use emissions
  • Sectors covered

    • Agriculture
    • Forestry
  • Geographical scope

    National

  • Period

    2015

  • Project champion

    Climate Change and Development Authority

  • Main data sources

    • Domestic public finance: National budget and reports
    • International public finance: National budget and the Organisation for Economic Co-operation and Development’s (OECD) Development Assistance Committee (DAC)
    • Private finance: COMTRADE data, export records, private companies
  • Technical assistance

    Individual international and national consultants

  • Funding

    United Nations Development Programme (UNDP)

  • Time and budget

    • Time: 9 months
    • Budget: USD 150 000

2. Detailed objectives of the study

The objective of the analysis was to identify financial flows that are aligned with land-use mitigation and adaptation activities that could be scaled up. It also aimed to identify land-use finance flows that are not aligned with climate-change outcomes and that could be redirected towards more sustainable outcomes, or phased out.

3. Process

3.1 Stakeholder involvement

  • The study was conducted with the support of the Climate Change and Development Authority, the Forest Authority, the Department of Agriculture and Livestock, and UNDP.
  • A broad range of stakeholders from public and private organisations were consulted at the inception of the study, as well as to review draft findings.

3.2 Typology development

Climate-misaligned activities were defined in line with the drivers of deforestation identified in PNG’s REDD+ Strategy and related studies.

Climate-aligned activities were identified based on policies and measures of the REDD+ Strategy, as well as activities identified in several documents, including the draft Green Climate Fund (GCF) concept note , the Issues and Options for REDD+ in PNG, and the National Strategy for Responsible Sustainable Development for PNG.

Conditionally-aligned activities were identified in the national and international literature.

3.3 Data collection and analysis

The main data sources used in this study are summarised in the following table:

Figure 1: Data sources for collection of climate-relevant land-use financial flows in PNG. Source: Parker et al. (2018) landscape of climate-relevant land-use finance in Papua New Guinea.

Figure 1: Data sources for collection of climate-relevant land-use financial flows in PNG. Source: Parker et al. (2018) landscape of climate-relevant land-use finance in Papua New Guinea.

Collected data was then analysed and classified according to the following process:

Figure 2: Data classification process. Source: Parker et al. (2018) Landscape of climate-relevant land-use finance in Papua New Guinea.

Figure 2: Data classification process. Source: Parker et al. (2018) Landscape of climate-relevant land-use finance in Papua New Guinea.

Since data sources often included limited descriptive information on the activities, the analysis relied heavily on supplementary information obtained from government documents such as Volume 3 of the National Budget that describes Public Investment Programs for the years 2015–2019. Additional sources included academic research, donor and government websites, and in-depth consultations with national stakeholders.

4. Outputs of the study

Landscape of Climate-Relevant Land-Use Finance in Papua New GuineaA detailed report in English was produced for national and international dissemination.

The analysis is divided into two main parts: an analysis of revenue data, looking at the contribution of land use to PNG’s national revenue, and an analysis of investment expenditures in land use.

A series of infographics were produced to illustrate the main findings and conclusions of the report, including Sankey diagrams.

Figure 3: Revenue flows in climate-relevant land-use activities in PNG in 2015. Source: Parker et al. (2018) Landscape of climate-relevant land-use finance in Papua New Guinea.

Figure 3: Revenue flows in climate-relevant land-use activities in PNG in 2015. Source: Parker et al. (2018) Landscape of climate-relevant land-use finance in Papua New Guinea.

Figure 4: Mapping of climate-relevant land-use finance in PNG in 2015. Source: Parker et al. (2018) Landscape of climate-relevant land-use finance in Papua New Guinea.

Figure 4: Mapping of climate-relevant land-use finance in PNG in 2015. Source: Parker et al. (2018) Landscape of climate-relevant land-use finance in Papua New Guinea.

5. Main findings and use of results

  • The land-use sector is a major source of public revenue in PNG. The study analysed the major flows of climate-relevant land-use finance in PNG, to understand how revenues and expenditures could be redirected to align with climate change outcomes while continuing to support livelihoods and economic growth.
  • In particular, the study looked at how reforming the application of tax levies could help scale-up finance available for sustainable land-use objectives and improve transparency of land-use activities.
  • The study also highlighted the lack of forest-proofing of donor funding and identified opportunities to further support the redirection of spending to sustainable land use.

6. Limitations and lessons learnt

  • One of the major challenges of this study was the lack of financial transparency of statutory authorities in disclosing financial information to both central government and their respective stakeholders. To address these shortcomings, the study team collected annual financial reports for some of these organisations and corroborate and/or supplement this data with publicly-available trade and economic data.
  • A further limitation was the exclusion of personal emoluments (salaries and travel) and goods and services (travel and other operating costs) from the analysis. This decision was taken since ultimately it would not be possible, given the availability of data, to assess the climate-relevance of these expenditures. However, excluding this data skewed the overall data set towards international finance, since the majority of domestic finance is not programmed through public investment programmes.
  • The project team tried to collect data in two provinces, however very little information was available at the provincial level on land-use-related activities.

Resources

  • Full report in English
EU REDD Facility                     Climate Policy Initiative
EU
Except where otherwise noted, content on this site is licensed under Creative Commons BY-NC-ND 4.0. Credit information: European Forest Institute and Climate Policy Initiative, www.landusefinance.org | Disclaimer
Land-use finance mapping in Central Highlands, VietnamVietnamRice fields, Siem Reap Province, Cambodia. Credit: Jose HernándezJose HernándezLand-use finance mapping in Cambodia
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