[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