Improving forest governance or messing it up? Analyzing impact of forest carbon projects on existing governance mechanisms with evidence from India

This research analyses the interactions and impacts of forest carbon projects on existing governance mechanisms viz. policies, institutions and implementation structures. It critically evaluates the assumption that forest carbon projects always result in improved governance of resources. Empirical evidence from a World Bank funded project in the state of Himachal Pradesh in India suggests that these projects might conflict with existing policies and complicate property relations on the ground. These projects might be used by powerful stakeholders as a tool to scuttle the progressive policy reforms. In the case of Himachal Pradesh, state bureaucracy and local elites have used forest carbon project to thwart the progressive policy provisions of HP common land vesting and utilisation (Amendment) Act 2001 and Forest Rights Act 2006, which were enacted to recognise individual and community rights on the community and forest lands respectively. Similarly, existing institutional issues related to lack of inclusiveness, participation and transparency have been exacerbated by the availability of increased resources from the project. Project activities such as fencing and changing land use of community pastures through plantations can adversely impact local livelihoods. Hence, it is imperative to undertake a comprehensive assessment of potential risks and conflicts before implementation of such projects.