[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