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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5195 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5195
To establish a verifiable international terrestrial ecosystem services
conservation program and provide international technical assistance for
the development of markets, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 25, 2024
Mr. Cardin introduced the following bill; which was read twice and
referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To establish a verifiable international terrestrial ecosystem services
conservation program and provide international technical assistance for
the development of markets, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Combatting Global Deforestation Act
of 2024''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Forests are a vital to the ecological health of the
Earth, biodiversity, the protection of water and soil quality,
the prevention of erosion and dangerous landslides, the
production of oxygen, the regulation of carbon dioxide in the
atmosphere, and the regulation of the global system.
(2) Forests are a critical natural resource that, when
appropriately managed and conserved, provide significant
economic, cultural, health, and community benefits to humanity.
(3) Since the start of the 20th century, an estimated
3,900,000 square miles of forest have been lost due to human
activities, including land conversions for agricultural
production, cattle ranching, logging, land development, and
extractive industrial activities such as mining and fossil fuel
extraction.
(4) Since 2000, 23 percent of global tree coverage loss has
been the result of deforestation including--
(A) 48 percent in Brazil;
(B) 50 percent in Argentina;
(C) 89 percent in the Philippines; and
(D) 96 percent in Indonesia.
(5) Deforestation disproportionately affects--
(A) critical habitats and ecosystems for critically
endangered species such as Sumatran Elephants and
Orangutans in Indonesia;
(B) the health and quality of water resources
through the alteration of critical ecosystem services
to hydrological systems, including slowing stormwater
runoff into surface waters and providing natural
filtration for fallen precipitation that infiltrates
groundwater resources; and
(C) approximately 370,000,000 people in indigenous
communities that rely on naturally forested lands that
are historically and culturally significant and provide
community and economic opportunities, sustenance,
medicinal resources and spiritual connection;
SEC. 3. DEFINITIONS.
In this Act:
(1) Additionality.--The term ``additionality'' means
emissions reductions or other terrestrial ecosystem services in
developing countries that would not have occurred but for
activities to reduce greenhouse gas emissions in partner
developing countries funded and made possible by funding
provided pursuant to section 5.
(2) Appropriate local partner.--The term ``appropriate
local partner'' means any relevant subnational government,
local authority, indigenous community, non-governmental entity,
or private landowner in a partner developing country committed
to and capable of achieving the goals described in section
4(b).
(3) Country of concern.--The term ``country of concern''
means the government or ruling party of any of the following
countries:
(A) The Russian Federation.
(B) The People's Republic of China.
(C) The Democratic People's Republic of Korea.
(D) The Islamic Republic of Iran.
(E) The Bolivarian Republic of Venezuela.
(F) The Republic of Cuba.
(4) Deforestation.--The term ``deforestation'' means a
change in land use, including forest fragmentation and forest
degradation, from a forest to any other land use.
(5) Eligible project.--The term ``eligible project'' means
a verifiable and measurable national or subnational activity
developed or executed by the central government, subnational
government, local authority, indigenous community, non-
governmental entity, private landowner, or any group of such
persons in a partner developing country that supports enhancing
terrestrial ecosystem services.
(6) Emissions reductions.--The term ``emissions
reductions'' means greenhouse gas emissions reductions and
increased sequestration achieved from--
(A) reduced, or avoided deforestation;
(B) reforestation;
(C) preservation of terrestrial ecosystems; or
(D) enhancements to terrestrial ecosystems that
will result in the increased sequestration of
greenhouse gas emissions.
(7) Forest degradation.--The term ``forest degradation''
means any reduction in forest stocks due to the effects of
human land-use activities, including land-use changes driven by
human activity.
(8) Nature-based solution.--The term ``nature-based
solution'' means an activity within a partner developing
country to conserve, restore, or better manage forests and
terrestrial ecosystems to improve terrestrial ecosystem
services.
(9) Outcome-oriented assistance.--The term ``outcome-
oriented assistance'' means a mechanism for the provision of
United States assistance in which--
(A) a partner developing country, or appropriate
local partner in a developing country, assumes
responsibility and must demonstrate the achievement of
measurable results, or progress towards the achievement
of conservation goals, that improve terrestrial
ecosystem services associated with activities of an
eligible project;
(B) such measurable results are defined and agreed
upon in a multi-year agreement, and described in
section 4(d) of this Act, in advance of the provision
of assistance by the United States for the eligible
project; and
(C) such assistance is expended to such developing
country or appropriate local partner only upon
independent verification of such pre-defined results.
(10) Partner developing country.--The term ``partner
developing country'' means--
(A) a country eligible to receive official
development assistance according to the income
guidelines of the Development Assistance Committee of
the Organisation for Economic Co-operation and
Development; or
(B) any other country identified by the Secretary
with globally significant forests or terrestrial
ecosystems the loss of which is, or has the potential
to, significantly contribute to the loss of terrestrial
ecosystem services.
(11) Program.--The term ``Program'' means the program
established pursuant to section 4(a).
(12) Terrestrial ecosystems.--
(A) In general.--The term ``terrestrial
ecosystems'' means naturally occurring grasslands,
forests, tropical rainforests, mangroves, peatlands, or
wetlands comprised of native species generated and
maintained primarily through natural ecological and
evolutionary processes.
(B) Exclusion.--The term ``terrestrial ecosystems''
does not include tree plantations, such as crops of
trees planted by humans primarily for the purposes of
harvesting.
(13) Terrestrial ecosystems services.--The term
``terrestrial ecosystems services'' means the direct and
indirect benefits that terrestrial ecosystems provide to
humans, including--
(A) material or energy outputs from an ecosystem,
including food, forage, fiber, fresh water, and other
resources;
(B) benefits obtained through moderation or control
of ecosystem processes, including regulation of local
climate, air quality, water quality, soil quality,
emission reductions, natural carbon sequestration,
flood control, erosion control, disease control, and
pollination;
(C) maintenance of fundamental ecosystem processes,
such as habitat for plants and wildlife, or the
maintenance of genetic and biological diversity; and
(D) non-material benefits provided to human
societies and culture, including opportunities for
recreation, tourism, aesthetic or artistic
appreciation, and spirituality.
(14) Secretary.--The term ``Secretary'' means the Secretary
of State.
SEC. 4. VERIFIED INTERNATIONAL FOREST ECOSYSTEM SERVICES CONSERVATION
PROGRAM.
(a) In General.--The Secretary shall establish a program, to be
known as the ``Verified International Forest Ecosystem Services
Conservation Program''.
(b) Purpose.--The purpose of the Program shall be--
(1) to enhance efforts to halt terrestrial ecosystem
degradation and loss, and increase terrestrial restoration at
scale;
(2) to provide contingent outcome-oriented assistance for
the achievement of eligible projects in partner developing
countries through incentives and assistance to halt terrestrial
ecosystem loss; and
(3) to enhance restoration of terrestrial ecosystems.
(c) Implementation.--The Secretary shall develop the criteria,
guidelines, and processes necessary to implement the Program.
(d) Goals.--In carrying out the program established pursuant to
subsection (a), the Secretary shall work with the governments of
partner developing countries and appropriate local partners to
identify, develop, and implement eligible projects that will or have
the potential--
(1) to help partner developing countries meet their forest
conservation and restoration goals, including efforts to
achieve emissions reductions and enhance net natural
sequestration capacity associated with deforestation;
(2) to enhance terrestrial ecosystem services;
(3) to improve natural habitat for species;
(4) to preserve culturally and ecologically unique forested
lands, including forests containing rare, threatened, or
endangered plant species;
(5) to contribute to cooperative efforts to conserve and
restore natural forests and other terrestrial ecosystems that
provide local, regional, and global environmental and health
benefits;
(6) to provide a counterbalance to investments from any
country of concern in activities that utilize destructive
industrial practices that degrade or destroy natural forests
and other terrestrial ecosystems in partner developing
countries; and
(7) to reduce illegal deforestation.
(e) Outcome-Oriented Assistance.--
(1) In general.--An eligible project shall qualify for
outcome-oriented assistance under the Program if--
(A) in the determination of the Secretary, the
partner developing country or appropriate local partner
will be able to fulfill its obligations under a multi-
year agreement described in subsection (d) in support
of an eligible project through the Program, including
(as applicable) with respect to--
(i) standards of governance and respect for
rule of law in the partner developing country;
(ii) environmental and social safeguards;
and
(iii) safeguarding against the potential
for corruption or misuse of assistance provided
under this section;
(B) the eligible project is appropriately designed
to use outcome-oriented assistance;
(C) the partner developing country or appropriate
local partner, as applicable, agrees--
(i) to abide by transparency requirements
with respect to the use of funds received under
the program established pursuant to subsection
(a);
(ii) to fulfill measuring, reporting, and
verification requirements, including
independent third-party verification, necessary
to provide outcome-oriented assistance;
(iii) to report publicly any data with
respect to deforestation associated emissions
reductions achieved under such program, in
accordance with reporting requirements of or
commitments of a partner developing country
under relevant international agreements;
(iv) to ensure that women, indigenous
communities, and other local stakeholders, as
applicable, are empowered and enabled to
meaningfully participate in the development,
implementation, and potential benefits of the
eligible project; and
(v) to disclose any debt the applicant may
owe to any entity known to be owned or
controlled by a country of concern, including
loan amounts, duration, rates, and contractual
provisions;
(D) the eligible project enhances terrestrial
ecosystems in a manner that can be verified and
realizes outcomes that may contribute to meeting the
relevant international commitments of the partner
developing country; and
(E) with respect to subparagraph (C)(v), the
partner developing country or appropriate local partner
agrees that the assistance provided under this section
may not be used to amortize any loan principal owed to
any entity known to be owned or controlled by the
country of concern.
(2) Impact of indigenous communities.--The presence of
indigenous communities subsisting, and engaging in sustainable
economic activities, on the lands of an eligible project shall
not--
(A) be infringed by activities conducted in
association with an eligible project; or
(B) impact the qualification of an eligible
project.
(3) Additional economic activity.--Any additional economic
activity pursued on the lands of an eligible project may be
permissible if such activities are carried out in accordance
with the goals described in subsection (d).
(4) Additional forms of qualification for outcome-oriented
assistance.--Notwithstanding paragraph (1), an eligible project
may qualify for outcome-oriented assistance under this
subsection if--
(A) the eligible project includes a combination or
aggregation of existing activities that align with the
goals described in subsection (d) such that the total
of such projects contributes to the full national or,
on an interim basis, subnational territory in the
partner developing country; or
(B) the eligible project is nested into the
accounting and reporting of an existing national or
sub-national program or activity in the partner
developing country, including with regard to safeguard
requirements and any transfer of verifiable
environmental credits that qualify for use or transfer
under internationally recognized systems that may meet
the international environmental commitments of the
partner developing country, without regard to whether
the eligible project is below the subnational level or
scale.
(5) Private or partner country contribution support
requirement.--
(A) In general.--Outcome-oriented assistance shall
only be granted to eligible projects that secure
additional funding from sources other than the United
States Government in an amount that is not less than
the 10 percent of the amount determined to be provided
out of the fund established under subsection (h) for
the eligible project based on the terms of the multi-
year agreement of such eligible project
(B) Private partners.--The Secretary is
encouraged--
(i) to include private sector partners as
supporters of eligible projects; and
(ii) to facilitate the security of
financial commitments from private
contributions, which shall be counted toward
the requirement under subparagraph (A) for an
eligible project.
(6) Partnerships with multilateral programs.--The Secretary
may partner with multilateral or multi-donor programs to
jointly support an eligible project under this subsection.
(7) Double counting of assistance.--The Secretary shall
take such steps as may be necessary--
(A) to prevent the double counting of, or double
payment for, results from eligible projects that also
may receive funds from other sources, including in
accordance with relevant international guidelines and
rules; and
(B) to ensure that the assistance provided under
this section and eligible projects are interoperable
and do not supplant or compete with the achievement of
country-level commitments under international
agreements.
(f) Multi-Year Agreements Governing the Provision of Outcome-
Oriented Assistance.--
(1) In general.--Upon determining that an eligible project
qualifies for outcome-oriented assistance, the Secretary is
authorized to enter into a multi-year agreement with a partner
developing country, or appropriate local partners in the
partner developing country, to determine the terms and
conditions for which the provision of outcome-oriented
assistance, in the form of grants from the fund established in
subsection (h), may be administered to support an eligible
project.
(2) Prioritization.--The Secretary is encouraged to
prioritize consideration of entering multi-year agreements for
eligible projects that would directly or indirectly combat
illegal deforestation or counter malicious influence from a
country of concern in a partner developing country.
(3) Third-party leverage of funds.--The Secretary is
encouraged to prioritize entering multi-year agreements for
eligible projects that include terms that leverage funding from
non-profits, businesses, other developed countries, and
multilateral financing and development agencies.
(4) Additional economic activities within an eligible
project.--Multi-year agreements shall--
(A) permit economic activities within the area of
an eligible project; and
(B) seek assurances that the conduct of such
economic activities does not degrade the effectiveness
of an eligible project in accordance with the goals
described in subsection (d).
(5) Terms.--In negotiating multi-year agreements under this
subsection, the Secretary shall do the following:
(A) Reciprocal commitment.--The Secretary shall
take steps to ensure that the partner developing
country or appropriate local partners in the partner
developing country, as applicable, reciprocate the
commitments to achieving the goals described in
subsection (d).
(B) Duration of agreement.--The Secretary--
(i) shall negotiate and reach a mutually
agreed upon term-length for each multi-year
agreement;
(ii) may renegotiate and re-enter a multi-
year agreement prior to or after the terms and
dates of the multi-year agreement expire; and
(iii) shall seek assurances that the agreed
upon goals and objectives for enhancing
terrestrial ecosystem services achieved through
the relevant eligible project will last in
perpetuity.
(C) Right to title.--The Secretary may negotiate
for the United States to own and control title to the
greenhouse gas emission reductions associated with the
activities of an eligible project for the purposes of
counting such reductions toward the international
emission reduction commitments of the United States.
(6) Termination.--An agreement under this subsection may be
unilaterally terminated by the Secretary if--
(A) the Secretary determines that the partner
developing country or a appropriate local partner is
failing or has failed to uphold the terms and
conditions established for the eligible project; or
(B) the Secretary--
(i) determines that the eligible project is
not in the national interest of the United
States; and
(ii) submits to Congress a notification of
such determination.
(g) Reviews and Reports.--
(1) Periodic reviews.--The Secretary shall periodically
review and evaluate the progress of eligible projects--
(A) to ensure that eligible projects are proceeding
successfully and appropriately maintained;
(B) to account for and adapt to externalities that
could prevent an eligible project from meeting its
objectives; and
(C) to advise proponents of an eligible projects in
planning and executing the eligible project in
accordance with this Act.
(2) Transparency.--The Secretary shall--
(A) make publicly available a list of funds made
available under the Program; and
(B) update on an annual basis the progress or any
lack of progress in the implementation of the eligible
projects corresponding to such funds and the
achievement of the goals described in subsection (d).
(3) Published certification of partnership.--The Secretary
shall annually publish and provide certificates of contribution
to private donors that contribute funds that support eligible
projects detailed in multi-year agreements that include--
(A) the amount of funds the private donor
contributed to the eligible project for each calendar
year that funds were provided;
(B) the location of the eligible project including
country and region;
(C) the partner developing country or appropriate
local partner that is signatory to the multi-year
agreement for which the private donor is contributing
funds for work on an eligible project; and
(D) a summary of the environmental impact of the
eligible project including--
(i) the size in acres of terrestrial
ecosystems that are being protected or
restored;
(ii) the significance of such protected or
restored terrestrial ecosystems; and
(iii) the verified amount of carbon
sequestered by the supported project.
(h) Duplication of Efforts.--In carrying out the program under this
section, the Secretary shall consult as appropriate with the
Administrator of the United States Agency for International Development
to avoid duplicative foreign aid efforts, particularly for conservation
funds.
(i) Trust Fund.--There is established in the Treasury of the United
States a fund to be known as the ``Verified International Terrestrial
Ecosystem Services Conservation Fund'', which shall consist of--
(1) amounts appropriated pursuant to the authorization in
subsection (j)(1) to carry out this section; and
(2) such gifts, bequests, or devises of property for the
benefit of, or in connection with carrying out this section as
the Secretary may accept in the form of donations by
individuals or entities, including private entities, non-profit
entities, other developed countries, and multinational
entities.
(j) Authorization of Appropriations.--
(1) Authorization.--There is authorized to be appropriated
to carry out this section--
(A) $875,000,000 for fiscal year 2024;
(B) $875,000,000 for fiscal year 2025;
(C) $875,000,000 for fiscal year 2026; and
(D) $875,000,000 for fiscal year 2027.
(2) Availability.--Amounts appropriated to carry out this
section are authorized to remain available until expended and
shall be used solely for the purposes of this section.
(3) Salaries and expenses.--Of the amounts made available
for any fiscal year pursuant to the authorization under
paragraph (1), not more than $4,000,000 is authorized to be
made available for the salaries and expenses to carry out this
section.
(k) Natural Forest Reference Baseline for Eligible Projects.--
(1) Proposals for natural forest reference baseline.--
(A) In general.--To receive outcome-oriented
assistance under this section for an eligible project
qualified to receive outcome-oriented assistance
pursuant to subsection (e), a partner developing
country or appropriate local partner shall submit to
the Secretary a proposal for a forest reference level
baseline that is credible, transparent, accurate, and
conservatively evaluates and establishes a forest
reference level baseline of an eligible project in
accordance with the criteria established by the
Secretary under paragraph (2).
(B) Determination by secretary.--
(i) In general.--After receipt of a
proposal under subparagraph (A), the Secretary
shall determine whether the forest reference
level baseline meets the criteria under
paragraph (2).
(ii) Provision of outcome-oriented
assistance approved forest reference level
baseline.--If the Secretary determines under
clause (i) that the proposed forest reference
level baseline meets the criteria under
paragraph (2), the Secretary may provide
outcome-oriented assistance for such eligible
project to the developing country or
appropriate local partner in accordance with
this section.
(iii) Failure to meet criteria.--
(I) In general.--If the Secretary
determines under clause (i) that the
proposed forest reference level
baseline does not meet the criteria
under paragraph (2), the Secretary may
negotiate with the partner developing
country or appropriate local partner to
reach an agreement on a forest
reference level baseline for the
eligible project in accordance with
paragraph (2).
(II) Provision of outcome-oriented
assistance for agreed forest reference
level baseline.--Once an agreement has
been reached under subclause (I), the
Secretary may provide outcome-oriented
assistance for the eligible project to
the developing country or appropriate
local partner in accordance with this
section.
(2) Baseline criteria.--The Secretary shall establish
criteria for each forest reference level baseline proposed,
which shall include requirements that the forest reference
level baseline--
(A) is used to account for the net size of forested
lands or significant naturally vegetated lands achieved
from the eligible project;
(B) is national, or subnational on an interim
basis, in scope;
(C) is consistent with the environmental
stewardship commitments, targets, or actions that are
appropriate for the partner developing country with
respect to combatting deforestation or loss of
terrestrial ecosystem services--
(i) taking into consideration the average
annual historical emissions and removals
associated with the forests, and other
terrestrial ecosystems, as applicable, of the
partner developing country during a period of
at least 5 years; and
(ii) if appropriate, using the relevant
2006 IPCC Guidelines for National Greenhouse
Gas Inventories published by the
Intergovernmental Panel on Climate Change to
determine applicable drivers of deforestation
and land use conversion;
(D) establishes a trajectory that would result in
zero net deforestation by not later than 10 years after
the date on which the baseline is established;
(E) is updated not less frequently than once every
5 years to account for changing circumstances in the
developing country;
(F) accounts for the size of forested areas based
on--
(i) remaining natural forest land;
(ii) conversions of other lands to or from
natural forest land; and
(iii) any other land-use category estimated
to contribute at least 10 percent of
agriculture, forestry, and other land use
emissions in the project area; and
(G) takes into consideration existing or planned
terrestrial ecosystem services or forest conservation
or restoration projects as described in subsection (e)
in a partner developing country and the effect those
projects might have in determining protection or
restoration activities with respect to terrestrial
ecosystem services and establishing a forest reference
level baseline for eligible projects funded under this
Act.
SEC. 5. NATURE-BASED SOLUTIONS.
(a) In General.--The Administrator of the United States Agency for
International Development, in consultation with the Secretary, shall
conduct a program to provide technical assistance to build the
capacities of partner developing countries and appropriate local
partners to improve conservation, natural forest management, and
restoration of natural forests and other terrestrial ecosystems for the
purposes of--
(1) enhancing the terrestrial ecosystem services and
sustainable economic value of such natural resources; and
(2) facilitating the preparation of eligible projects in
accordance with section 4.
(b) Eligible Activities.--In conducting the program described in
subsection (a), the Administrator of the United States Agency for
International Development may provide technical support to partner
developing countries and appropriate local partners for the following
activities:
(1) Reducing deforestation related emissions, forest
fragmentation, and forest degradation of significant forests
within a partner developing country.
(2) Enhancing the natural carbon sequestration ability of
the natural forests and the terrestrial ecosystem services of a
potential eligible project within a partner developing country,
and building resilience.
(3) Monitoring, reporting, and verification of the
environmental, social, and financial quality and integrity of
the project as an important component of the work.
(4) Assisting governments, willing, legitimate landowners,
or willing customary use rights holders in developing projects
to engage in conservation credit markets through--
(A) the implementation of science-based metrics for
determining that conservation activities have generated
verifiable environmental credits that may be sold to
buyers on existing conservation compliance markets; or
(B) projects providing outcome-oriented assistance.
(5) Developing domestic infrastructure and capacity
building for creating and tracking conservation credits, such
as registries or projects eligible for outcome-oriented
assistance, and preparing countries to implement nature-based
solution initiatives.
(6) Ensuring that women, Indigenous Communities, and other
local stakeholders are empowered and enabled to meaningfully
participate and share in the potential benefits of activities
funded under this section.
(7) Ensuring the additionality of projects, programs, and
other activities made possible by funding provided pursuant to
this section.
(c) Authorization.--There is authorized to be appropriated
$10,000,000 to carry out this section.
<all>
Introduced in Senate
Read twice and referred to the Committee on Foreign Relations.
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