Bio carbon Fund Portfolio Models LULUCF for smallholder and community forestry livelihoods
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Bio carbon Fund Portfolio Models LULUCF for smallholder and community forestry livelihoods

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Saima Qadir...

Saima Qadir

Presentation for the conference on
Taking stock of smallholders and community forestry
Montpellier France
March 24-26, 2010

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  • http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSDNET/0,,contentMDK:22499557~menuPK:64885113~pagePK:64885161~piPK:64884432~theSitePK:5929282,00.html Deforestation around Humbo has threatened ground water reserves providing potable water to 65,000 people & severe sediment runoff into Lake AbayaExpected to provide an important habitat for many local species and to enrich local biodiversity. Major environmental benefits will stem from the reduction of soil erosion and flooding. In particular, sediment runoff currently threatening the fragile ecosystem of Lake Abaya - located 30 km downstream from the project site - should be reduced. In the meantime, the restored forest would also contribute to protecting springs and streams originating in the project area. New growth from tree stumps previously felled but still living. By using this method, the cooperatives have unearthed a vast ‘underground forest’. Many important native forest species, some of which are endangered, have been restored to the region, and in areas where no living tree stumps remained seedlings were used to restore the forest. In areas devoid of tree cover, existing vegetation will be enriched by endemic species, including Acacia spp., Aningeriaadolfifericii, Podocarpusfacutus, Oleaafricana, and Cordia Africana
  • 75% Pinuscaribaea, which has been already introduced and tested in the area. In addition 20% Maesopsiseminii and 5% Prunusafricana will be planted. From the latter species the bark and the timber will be used. Pine and Maesopsis will be managed on a 20 year rotation cycle or until the target diameter, 45 cm, is reached. Prunus will be managed for bark production in a 22 year rotation period. 420 km south east of Addis Ababa Plantation will be established in 64 blocks of 25 ha each, grouped in 5 small-scale CDM projects. Around each block a fire line will be maintained. This cluster design allows for potential involvement of private and community based investors, since the project area can be split into a portfolio of small-scale projects or different investor shares.The Rwoho Environmental Conservation and Protection Association (RECPA) will manage 17% of the project area within the framework of a collaborative forest management agreement. The agreements will be signed with the National Forest Authority (NFA). The NFA implementing the project will provide seedlings and technical advice to RECPA, which will in return be in charge of protecting the plantations from fire and the remaining patches of natural forest. RECPA will also link the project with communities in the area. The NFA will be managing the plantation according to international standards. Apart from Maesopsis and Prunus no other native species with a commercial value proved to be successful under the prevailing site conditions in Rwoho. The learning experiences from planting native tree species will decrease this technological barrier in future projects.
  • Fast growing forest plantations (Eucalyptus urophylla, various species of Acacia and local species), on grass savannas with few scattered shrubs This plateau is composed of 90% herbaceous or shrubby savanna, burnt many times per year, and of 10 % of forest gallery deforested by local populations for their subsistence farming (maize, cassava) and to produce charcoal. The project is developed by NOVACEL, whose founders are natives of the Bateke region and have been present on the plateau for several generations. The IBCSP project is part of an integrated rural development pilot program carried out by NOVACEL since 1985. Through a strategy of integrated development, the project promoter NOVACEL wishes to integrate agricultural, livestock and forest productions with the agro-industrial production of commodities such as cassava flour, corn flour or charcoal and build a strong involvement of the local communities. UMICORE, SUEZ and the AFD (French Development Agency) are financing part of the investment needs for the project. UNEP’s CASCADe program is providing technical assistance.

Transcript

  • 1. BioCarbon Fund Portfolio ModelsLULUCF for Smallholder & Community Forestry Livelihoods
    Taking Stock of Smallholder & Community Forestry
    SaimaQadir
    Montpellier, France
    March 24-26 2010
  • 2. World Bank Carbon Funds & Facilities
    Total funds pledged = US$ 2.3 billion (22 governments, 66 firms)
    • Prototype Carbon Fund. $180 million (closed). Multi-shareholder. Multi-purpose.
    • 3. Netherlands Clean Development Mechanism Facility -$ N.A.- (closed). Netherlands Ministry of Environment. CDM energy, infrastructure and industry projects.
    • 4. Community Development Carbon Fund. $128.6 million (closed). Multi-shareholder. Small-scale CDM energy projects.
    • 5. BioCarbon Fund. $89.9 million (Tranche One closed totaling $53.8 million). Multi-shareholder. CDM and JI LULUCF projects. Tranche 2 operationalized March 2007 with total capital of $36.6 million
    • 6. Italian Carbon Fund. $155.6 million (closed). Multi-shareholder (from Italy only). Multipurpose.
    • 7. Netherlands European Carbon Facility- $ N.A.- (closed). Netherlands Ministry of Economic affairs. JI projects.
    • 8. Spanish Carbon Fund. $308 million (closed). Multi-shareholder (from Spain only). Multipurpose.
    • 9. Danish Carbon Fund. $81.2 million (closed). Multi-shareholder (from Denmark only). Multipurpose.
    • 10. Umbrella Carbon Facility. $737.6 million (Tranche One closed). 2 HFC-23 projects in China.
    • 11. Carbon Fund for Europe. $70 million. Multi-shareholder. Multi-purpose.
    • 12. Forest Carbon Partnership Facility. $300 million target. Multi-participants. For national REDD
  • BioCarbon Fund: Rationale
    • Improved land use is part of the solution to climate change (deforestation causes 20% of CO2emissions)
    • 13. Open carbon market to rural communities (excluded if CDM restricted to energy & infrastructure)
    • 14. Inform debate (so far too ideological, not enough based on facts)
    • 15. Create synergies among Conventions (money channeled through UNFCCC can foster sister conventions)
    • 16. PES Approach (carbon sequestration is just one service provided within PES)
    UNCCD
  • 17. GoalsLearning by Doing
    Atmospheric: Reduce GHG concentrations over baseline
    Cost-effective: Buy low-cost climate change mitigation opportunities
    Social: Improve livelihoods (employment, income, know-how)
    Environmental: Conserve biodiversity, rehabilitate land
    Adaptation: Increase social and ecological resilience of local communities
    Climate change will affect communities
  • 18. How the Fund WorksGlobal Portfolio
    Technology
    Technology
    $
    $
    Finance
    Finance
    Industrialized Governments and Companies
    EITs and Developing Countries
    CO Equivalent
    CO Equivalent
    2
    2
    Emission Reductions
    Emission Reductions
    - Work with smallholder, community owned , & public lands in a variety of landscapes
    - Concept of “pacific possession”
  • 19. Based on Today’s Rules – Two WindowsForestry is Not Just REDD
    Second Window
    • No Kyoto credits
    • 20. Exploration & demonstration. Rules may change after 2012
    • 21. Non-CDM: AD/REDD, Revegetation, Forest management, Agriculture & Soil management
    First Window
    • Meet Kyoto obligations
    • 22. “Kyoto-grade” credits (tCERs, lCERs, ERUs)
    • 23. CDM: Afforestation & Reforestation
    • 24. JI: All LULUCF
  • African BioCF projects
    ES= Environmental Services other than carbon
    FW= Fuel wood
    NTPs = Non timber products
  • 25. EthiopiaHumbo Assisted Natural Regeneration Project
    Carbon supporting an innovative Assisted Natural Regeneration technique (ANR) for re-sprouting native species in partnership with World Vision
    “Forest Management Natural Regeneration” (FMNR) system:
    Community owned land overgrazed & cleared for fuel wood use until bushes
    Project activity promoting discontinuation of grazing, fuel wood collection and charcoal production in degraded areas for a period of time
    Short-term forest restoration involving poor rural communities in southwestern Ethiopia
    Farmers organized in seven cooperatives which include men & women
    People accessing forest to cut & carry the fodder growing under trees
    Will help with effects of severe flooding & erosion exacerbated by high altitude & rainfall
    Joint implementation World Vision Australia/Ethiopia, Ethiopian Agriculture Rural Development & Forestry Coordination Office, & Forest Cooperatives
    Compensation for farmers
    Timber (from designated woodlots) & non timber products incomes like honey & fruit
    Fuel wood from energy plantations
    Carbon revenue will be invested in local infrastructure & food security activities as per needs of community as well as carbon incomes
    Carbon triggering land tenure securitization of community owned land
    First large scale forestry project Registered for Africa
  • 26. UgandaNile Basin Reforestation
    Carbon contributing to stabilize land use in agriculture frontier areas through Reforestation
    Communities partnering with the state to reforest national grasslands previously used illegally by communities (deforestation & erosion)
    Plantation of pine & mixed native species in grassland areas within Rwoho Central Forest Reserve – learning from native species expected to reduce technological barrier for future
    Cluster design & aggregation for potential investment from private & community investors
    Community Forest Management Agreements in place
    Partners sharing costs and revenues
    Rwoho Environmental Conservation and Protection Association (RECPA) & the National Forest Authority (NFA)
    Communities earning incomes for planting
    500 people for establishment
    Afterwards 200 people for nursery work, weeding, fire protection, thinning, pruning, etc
    Availability of wood fuel
    State giving technical support to communities
    Environmental benefits
    Reduction of erosion induced discharge into Lake Victoria
    Increase of dry season flows
    Mitigation of ongoing land degradation
  • 27. IndiaAlternative Rural Livelihoods
    Carbon supporting alternative livelihoods for indigenous communities
    Marginal degraded lands that are privately owned being used for subsistence to be reforested (3,500 ha) in Andhra Pradesh & Orissa
    JK paper factory is reforesting in exchange for sustainably harvested wood that it currently has to source from 800 km away
    Inclusion of small farmers allows them to reap benefits of carbon revenue and timber sales that they otherwise could not participate in
    80% of carbon revenue will go directly to community
    Importance of revenue distribution mechanism
    Carbon triggering access to clonal technology and farmer outreach education program for farmers
    Communities earning incomes from planting in addition to carbon revenues
    Carbon triggering long-term quality supply of wood for JKPL
    Illustration of DNA forestry definition & colonial legacy of demarcation of land in India as forest land
  • 28. Other Africa Models for Alternative Livelihoods
  • 29. Democratic Republic of CongoIbiBateke Carbon Sink Plantation
    Carbon contributing to solve fuel wood shortage and environmental degradation in Kinshasa, where only 5% of the population enjoy electricity
    A multipurpose project in degraded lands to produce:
    carbon, agricultural products and fuel wood (charcoal)
    Grassy savannah disturbed by man-initiated fires
    Producing charcoal from plantation will reduce will reduce deforestation of remaining forest galleries
    Substantial indirect socio-economic benefits to communities
    One implementer (Novocel), but investing a fixed amount of revenues in:
    Health and education services to support surrounding communities
    Permanent jobs (50) during the total crediting period and temporary jobs (500 equivalent full-time positions)
    Capacity building on silviculture
    Carbon revenue will be used to finance expansion of project, health, education, & agroforestry activities in local community
  • 30. KenyaGreen Belt Movement
    Carbon supporting a reforestation program focused on women development
    Communities organized in 7 Community Forest Associations (CFAs) to reforest lands & manage new forest (including management plans)
    Reforest public & private degraded lands with community access in Aberdare Range & Mount Kenya watersheds (targeting deep denuded slopes in water catchments)
    Reserve lands deforested for charcoal production or conversion to illegal agriculture/cattle grazing. Also illegal logging.
    Long term goal to use re-grown forest in sustainable manner for variety of products including fuel wood, charcoal, timber, medicinal & other uses
    Reintroduction of wide range of natural tree species
    Carbon triggering land tenure securitization
    Communities receiving technical assistance from government and GBM
    Communities earning incomes from planting and tending seedlings – women particularly involved
  • 31. MadagascarAnkeniheny–Zahamena – Mantadia Biodiversity Conservation Corridor and Restoration
    Carbon supporting biodiversity conservation
    Degraded lands to be reforested with 120 native species
    Reduce forest fragmentation & reconnect corridors to reserves
    114 individuals planting over 80 native species in exchange of
    Land tenure securitization
    Access to Agroforestry programs
    Partnership with Conservation International, ANAE (local NGO) & Ministry of Environment
    Communities earning incomes from planting in addition to carbon revenues
    Establish wood & fruit gardens & sell sustainable fuel wood to provide alternative livelihoods to local communities versus slash & burn for tavvy rice
    Also REDD component
  • 32. Project Entities Have to Establish Many Types of Relationships for Developing & Implementing a Project
    Environmental Impact Assessment
    Requirements
    Exchange of good,
    Services or money
    Forest management
    plan
    Harvesting licenses
    Carbon buyers
    Farmers
    CDM rules and processes
    Project investors (public & private)
    Timber/NTFP buyers
    Project Entity
    Approval of project’s contribution to SD
    Land tenure clarification / securitization
    Ministry of Env & WB
    Forestry
    service
    Forestry
    service
    CDM-EB
    Land admin. entity
    DNA
  • 33. Global Lessons Learned & Requisites for Success
    Capacity, capacity, capacity…
    Land tenure is key issue for agro-forestry/REDD projects & ownership can often prove difficult in developing countries
    Carbon rights unbundling is specific to each individual country
    Carbon can help trigger obtaining land tenure rights
    Private investors require secure land tenure
    Concept of “pacific possession” pioneered in Latin America when overlapping rights
    LULUCF is a way to ensure community benefits go to local communities
    Revenue sharing mechanism for communities must be carefully defined
    Community investment versus individual farmer income
    Intercropping for managing cash flows over time
    Minimum transaction size is needed
    High fixed costs
    Agro-forestry & providing technical advice to communities is expensive
  • 34. Lesson Learned & Requisites for Success Cont…
    Multiple small community plots have higher transaction costs & each plot must be taken into account separately for 1990 rule
    LULUCF rules evolving to favor monoculture plantations
    Community buy-in is key for ensuring protection of trees & for enforcement/protection
    Remote access increases costs
    Demand needs to be created for certified native wood species
    Carbon revenue does not replace need for sound project design
    Full PES approach requires downstream demand
    Economic opportunity cost of community/land users must be covered in order to change behavior
    Communities need to be paid when they plant
    Waiting for Validation is too long for small communities
    Need for upfront financing
    Intercropping & agroforestry can help fill gaps
  • 35. Thank You!
    sqadir@worldbank.org
    www.carbonfinance.org