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Official launch of the SOCALCO '0 Net Deforestation Supply Chain' initiative

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Presentation at the Global Landscapes Forum on 6 June 2016, in London, UK during the Tabletop Exhibition. For more information go to: www.landscapes.org.

Published in: Environment
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Official launch of the SOCALCO '0 Net Deforestation Supply Chain' initiative

  1. 1. DEWJI GROUP ‘0 NET DEFORESTATION’ SUSTAINABLE VALUE CHAIN INITIATIVE • PILOTING/DEMOSTRATING THE INTEGRATION OF SMALL-HOLDER AND SUSTAINABLE INDUSTRIAL SCALE AGROFORESTRY VALUE CHAINS • GETTING THE RURAL SOUTH EFFECTIVELY ON A INTEGRATED CLIMATE CHANGE MITIGATION & ADAPTATION PATHWAY • THAT LEADS TO BOTH RESILIENCY (EFFECTIVE ADAPTATION) AND MAJOR GHG (LULUCF) EMISSION REDUCTIONS
  2. 2. THE DEWJI GROUP’S DRIVE FOR A REAL CHANGE OF SOUTHERN AGRICULTURE AND ENERGY PRODUCTION SYSTEMS IS BASED ON THE FOLLOWING KEY PREMISE: THE BEST WAY FOR RURAL SOUTHERN COMMUNITIES TO ADAPT TO CLIMATE CHANGE IS TO MITIGATE THEIR OWN LAND USE EMISISONS HOW? ….. BY ACCESSING & ADOPTING HIGH PERFORMING AGROFORESTRY TECHNOLOGY/SYSTEMS THAT CAN RESTORE ANTHROPOGENIC SAVANAH & ALLOW FOR ITS SUSTAINABLE USE , THEREBY REPLACING BASELINE ENERGY WOOD, FOREST & AGRICULTURAL PRODUCTS. THIS PROJECT SCENARIO ACTIVITY WILL GENERATE MAJOR NON CARBON AND CARBON VALUES THAT TOGETHER CAN ALLOW COMMUNITIES TO SELF PROPEL OUT OF EXTREME POVERTY AND BUILD A FOUNDATION FOR COMMUNITY RESILIENCY THAT WILL ALSO PROVIDE THE TENURE CERTAINTY AND GOOD GOVERNANCE NEEDED FOR PRIVATE SECTOR ROI
  3. 3. REDD+ & INTEGRATED SUSTAINABLE LANDSCAPE MANAGEMENT - ‘STATE OF PLAY’ & CHALLENGES: • REDD+ CONCEPT IS STILL SEEN AS PROMISING, BUT 6 YEARS OF REDD+ NATIONAL-LEVEL PREPARATIONS HAVE YET TO PRODUCE SUCCESSFUL PILOT PROJECTS TO SCALE IN AFRICA • FOCUS IS STILL VERY MUCH ON CARBON BENEFITS • DIFFICULTIES TO CONNECT/ENGAGE WITH SMALL HOLDERS AND THE PRIVATE SECTOR • KEY REDD+ TOOLS ARE NOT YET FULLY OPERATIONAL • LACK OF HUMAN RESOURCES TO IMPLEMENT TO SCALE • PRESENT CARBON PRICES AND UPFRONT FINANCING ARE OFTEN NOT SUFFICIENT TO MOTIVATE SMALL HOLDER AND INDUSTRIAL SCALE RESOURCE USE AND MANAGEMENT OPERATORS TO LEAVE HIGH DEFORESTATION BASELINE TRAJECTORIES
  4. 4. • REDD+ CREDITS NOT FUNGIBLE INTO COMPLIANT MARKETS DUE TO PERMANENCE REVERSABILITY RISKS • REDD+, GREEN ECONOMY AND INTEGRATED LANDSCAPE PROGRAMS HOPE TO LEVERAGE SPECIALIZED, LARGE-SCALE, AGRO-FORESTY VALUE CHAIN INVESTMENTS, BUT OFTEN FAIL TO CREATE THE RIGHT ENABLING ENVIRONMENT OR SUFFICIENT FOCUS (ToRs) AND/OR INCENTIVES TO OFFSET MAJOR COUNTRY RISKS • AS A RESULT REDD+ IS LOSING MOMENTUM JUST WHEN WE NEED IT TO BE A RESULTS-BASED FRAMEWORK FOR A MASSIVE SHIFT IN LAND- USES REDD+ STATE OF PLAY & CHALLENGES CONTINUED…….
  5. 5. DEWJI GROUP CONGO PILOT: SHOWING A CLEAR EFFECTIVE PATHWAY TO GET REDD+ / INTEGRATED LANDSCAPE MGMT / GREEN ECONOMY PROGRAMS ‘OFF THE GROUND’ TO SCALE BY ADDRESSING 3 ESSENTIAL NEEDS: 1. BY CONNECTING REDD+ FRAMEWORK WITH SUPPLY CHAIN SUSTAINIBILITY AMBITION (expressed at RIO+20) 2. BY OFFERING A REGULATORY REMEDY FOR THE POTENTIAL REVERSAL OF REDD+ CLIMATE BENEFITS (RENDERING THEM COMPLIANT-GRADE) 3. BY PROVIDING AN EXPERIENTIAL, ‘LEARN BY DOING’, PILOT TO DEVELOP BEST PRACTICES AND THEN DEVELOPING CAPACITY CENTERED ON THOSE BEST PRACTICES
  6. 6. DEWJI SUSTAINABILITY INNOVATIONS: SHOWING THE WAY FORWARD FOR THE DESIGN & LAUNCH OF A POTENTIAL NEW PROGRAM THAT ADDRESSES THOSE 3 URGENT NEEDS BY : 1. INCUBATING A NEW CLASS OF REDD+ PROJECTS FOCUSSED ON INTEGRATING SMALLHOLDER AND INDUSTRIAL VALUE CHAINS (LEVERAGING BILLIONS OF $$ OF SUPPLY CHAIN SUSTAINABILITY INVESTMENT) 2. COUPLING COMPLIANT, CLEAN ENERGY, CREDITS AND BUFFERS WITH REDD+ CREDITS TO AUTO-INSURE AGAINST REVERSAL (cost <$15tCO2e) 3. PILOTING/DEMONSTRATING A CONCEPTUAL SOUND PATH TO RESILIENCY FOR THE RURAL SOUTH THAT CAPACITY CAN BE EFFECTIVELY BUILT AROUND
  7. 7. DEWJI GROUP PILOT ‘0 NET DEFORESTATION ‘ MAIN FEATURES: • GREEN EXPANSION AND RELOCALISATION OF SOCALCO’S MANUFACTURING FACILITY TO THE TOWN OF BOLOBO (250KM UPSTREAM ON THE CONGO RIVER MAINSTEM) • NEW SUSTAINABLE SUPPLY OF RAW MATERIAL PEELER LOGS FOR MATCH SPLINT PRODUCTION TO COME FROM 2 SOURCES: 1. VIA THE CREATION OF SUSTAINED YIELD FOREST MANAGEMENT UNITS FOR INFORMAL SECTOR LOGGERS (TARGETING FORESTS THAT CONTAIN THE DESIRED SPECIES) 2. THE ESTABLISHMENT OF 10,000 HECTARES OF AGROFORESTRY, WITH ONE OF THE LEAD NATIVE TREE SPECIES BEING FUNTUMIA AFRICA (GOOD FOR MATCH SPLINTS) • ESTABLISHMENT OF A LARGE, RENEWABLE ENERGY, THERMAL GENERATING POWER PLANT USING FORESTRY AND AGRICULTURAL WASTE AS FEEDSTOCKS • SPECIAL FOCUS ON INTEGRATING SOCALCO’S SUPPLY CHAIN WITH SMALL HOLDER VALUE CHAINS • DEVELOPMENT OF BEST PRACTICES FOR COMMUNITY ENGAGEMENT AND GOVERNANCE • DEVELOPMENT OF INNOVATIVE QUANTIFICATION AND MONETIZATION PROTOCOLS THAT INTEGRATE CLEAN ENERGY, FUEL SWITCH AND REDD+ METHODOLOGIES
  8. 8. • BY RENDERING ACCESSIBLE APPROPRIATE AGROFORESTRY & RENEWABLE ENERGY PRODUCTION SYSTEMS THAT GREATLY INCREASE FOOD, ENERGY PRODUCTION AND FAMILY REVENUES, SMALLHOLDERS WILL BE RELEASED FROM THEIR DEPENDENCY ON LOW PERFORMING ‘SLASH AND BURN’ AGRICULTURE AND NON-SUSTAINABLE ENERGY WOOD EXTRACTION • PERMANENT (COMPLIANCE-GRADE) NET CLIMATE BENEFITS FROM LAND-USE EMISSION REDUCTIONS CAN BE GENERATED VIA QUANTIFICATION AND MONETIZATION PROTOCOLS THAT INTEGRATE REDD+, FUEL SWITCH AND IMPROVED STOVE OFFSET METHODOLOGIES ( TAKING INTO ACCOUNT THATOVER 50% OF DEFORESTED BIOMASS IS USED AS ENERGY WOOD IN THE DRC) • THIS PILOT WILL REPLACE OVER 100% OF BASELINE ENERGY SUPPLY WITH NEW SUSTAINABLE SOURCES (TO INCREASE CLEAN ENERGY ER POTENTIAL • POSITIVE HEALTH IMPACTS FROM INTEGRATING IMPROVED STOVES WITH FUEL SWITCHING ARE HUGE INTEGRATING REDD+ AND CLEAN ENERGY FOR THE BENEFIT OF SMALLHOLDERS AND MORE FUNGIBLE CLIMATE BENEFITS:
  9. 9. CLIMATE AND SOCIO-ECONOMIC/HEALTH IMPACTS CONTINUED…. • LOOKING AT AFRICA AS A CONTINENT, REDUCTIONS IN COOKING WOOD FIRE SMOKE/EMISSIONS AS PART OF VALUE-CHAIN FOCUSSED REDD+ PROGRAM WOULD POTENTIALLY EQUATE TO: • UP TO 500M tCO2e/yr IN JURISDICTIONAL, COMPLIANT-GRADE, EMISSON REDUCTIONS (GREATER THAN CANADA’S TOTAL GHG EMISSIONS) • PROVIDE MASSIVE HEALTH BENEFITS TO 150M FAMILIES • CREATE LARGE INCREASES IN SMALLHOLDER FAMILY REVENUES • THE EMISSION REDUCTIONS, IF DONE VIA NESTED PROJECTS WITHIN ROBUST, WELL MONITORED AND SAFE GUARDED, JURISDICTIONAL REDD+ / EMISSION REDUCTION PROJECTS, WOULD HAVE THE POTENTIAL TO BE USED AS INTENDED NATIONALLY DESIGNATED CONTRIBUTIONS (INDCs) BY DEVELOPED ANNEX 1 (AS PER UNFCCC PROTOCOL AND PARIS CLIMATE AGREEMENT)
  10. 10. IN SUMMARY, THE DEWJI GROUP DRC PILOT WOULD: • DEMONSTRATE HOW NET EMISSION REDUCTIONS FROM SUCH SUPPLY CHAIN GREENING TYPE REDD+ INITIATIVES COULD BE • FUNGIBLE INTO COMPLIANT MARKETS • AVAILABLE FOR USE BY DEVELOPED COUNTRIES AS INDCs • DEMONSTRATE THAT SUCH VALUE CHAIN INTEGRATION DRIVEN REDD+ INITIATIVES CAN PRODUCE A MUCH HIGHER LEVEL OF NON CARBON BENEFITS FOR SMALL HOLDERS • DEVELOP A LIVING LABORATORY AND EXPERENTIAL ‘LEARN BY DOING’ CAPACITY BUILDING/TRAINING CENTER OF EXCELLENCE • DEVELOP EFFECTIVE BEST PRACTICES FOR REDD+ DRIVEN TRANSFORMATIONAL CHANGE CENTERED ON SMALL HOLDER & INDUSTRIAL VALUE CHAIN INTEGRATION • SHOW COMMODITY COMPANIES THAT SUSTAINABLE LAND USE CAN MITIGATE THEIR FINANCIAL RISK/EXPOSURE VIA ENHANCED SOCIAL LICENCE
  11. 11. THE DEWJI GROUP IN THE DRC • TAKING A HIGH VALUE-ADD FOREST PRODUCT COMPANY ON A ‘O NET DEFORESTATION SUPPLY CHAIN ‘ TRAJECTORY • SHOWING HOW INTEGRATED, PRIVATE SECTOR- LED, VALUE CHAIN INTEGRATION CAN SPEARHEAD LANDSCAPE-LEVEL REDD+ MITIGATION AND ADAPTATION INITATIVES THAT EMPOWER AFRICA TO MEET ITS NEW SDG GOALS
  12. 12. Thanks for your attention! Questions…? Ideas…?
  13. 13. DEBUGGING REDD : GETTING INITIAL CARBON FINANCE TO TRIGGER REPLACEMENT OF UNSUSTAINABLE NON CARBON VALUE CHAINS WITH MORE PROFITABLE EFFECTIVE SUSTAINABLE ONES THAT DO NOT NECESSITATE DEFORESTATION AND ARE DRIVEN BY SMALL HOLDER SUPPLY CHAINS THAT ARE INTEGRATED WITH INDUSTRIAL SCALE AGRI BUSINESS ONES PROJECT SCENARIO >1.5X t/yr baseline energy wood volumes >1.5X t/yr baseline service wood volumes >1.5X m3/yr of baseline sawlog volumes >3X t/yr ag products Leakage Management Zone FOREST INTENDED FOR PROTECTION TECHNICAL CONSIDERATIONS Sustained yield forest mgmt units in adjacent managed working forest area REDD+ intervention area = leakage mgmt zone + protected forest zone Leakage Management Zone AdjacentUrbanAreas AdjacentUrbanAreas
  14. 14. DEBUGGING REDD : CLEAN ENERGY (IMPROVED STOVES) AND FUEL SWITCH) ARE ESSENTIAL MITIGATION ACTIVITIES AND THEY QUANTIFICATION CAN BE USED AS A DEFACTO INDICATOR/MEASUREMENT OF REDD EFFECTIVENESS (i.e. reduced deforestation emissions + reduced poverty) PROJECT SCENARIO Sustainablleenergywoodusein improvedstoveprojects(fuelswitch) Leakage Management Zone FOREST INTENDED FOR PROTECTION TECHNICAL CONSIDERATIONS Improved stove projects in nearby urban areas energy plantations REDD+ intervention area = leakage mgmt zone + protected forest zone Adjacent Urban Areas
  15. 15. DEBUGGING REDD : ENSURE INTENSITY AND QUALITY OF INVESTMENT ($/HA & BEST PRACTICES/APPROPRIATE VALUE ADD TECHNOLOGIES & THIRD PARTY CERTIFICATION & MARKET LINKAGES via EFFECTIVE VALUE CHAIN INTEGRATION) PROJECT SCENARIO D – INVEST IN REPLACEMENT OF ALL BASELINE ENERGY WOOD FLOWS BY SUSTAINABLE ECO-CHARCOAL FROM LEAKAGE MANAGEMENT AREA PLANTATIONS (>1.5X t/yr energy wood) C – INVEST IN SERVICE WOOD REPLACEMENT IN LEAKAGE MANAGEMENT AREA PLANTATIONS (>1X m3/yr baseline service wood) A - INVESTMENT IN ALTERNATIVES TO ILLEGAL LOGGING >$10/ha to establish sustained yield mgmt units + TRACE certification and intervention MRV B – INVEST IN THE INCUBATION OF SUSTAINABLE AGRICULTURE PILOTS >$1000/HA for plantations establishment + $20,000/community for effective engagement Leakage Management Zone FOREST ZONE DESIGNATED FOR INTEGRAL PROTECTION AND/OR NFTP USE TECHNICAL CONSIDERATIONS savannah (plantations) and existing Ag Complex (best practices + extension services + micro credit) Sustained yield forest mgmt units SAWLOGS VOLUMES > BASELINE FLOWS

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