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Climate Change Impacts on Forests of Madhya Pradesh

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RavindraSaksena

Presentation on "Impact of Climate Change on Forests of Madhya Pradesh" made in a workshop organised by the Environment Protetion & Conservation Organisation for State Action Plan on Climate Change

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Welcome to the presentation on “Climate Change Impacts on Forests of Madhya Pradesh” Ravindra Nath Saxena Former Principal Chief Conservator of Forests, Former Managing Director Madhya Pradesh Forest Development Corporation, Bhopal by
OVERVIEW OF THE PRESENTATION • Status of environment & forests in India. • Climate Changes and impact on humans. • International conventions and Constitutional provisions. • UNFCCC, Kyoto Protocol (KP) . • Afforestation & Reforestation Projects (A & R). • Carbon Trading (CT). • Carbon Trading potential of Madhya Pradesh • Future Planning in Madhya Pradesh. • Tree transplanting techniques. • Career planning for youngsters
Anthropo-centrism and contempo-centrism • Country has never been subjected to “ecological audit”. The country may be registering economic growth rate of 4 to 7%, but unofficial estimates provide that in ecological terms our growth rate is about (-)4%. • National Forestry Action Plan accepts that “forestry” contributes about 5-6% to economic GDP, while resource allocation is meager less than 0.1%. Even whatever meager is allotted is being diverted for non- forest purposes. Forest resource has been divested @ 6% p.a. ATTRIBUTES OF ENVIRONMENT & FORESTRY MANAGEMENT IN THE WORLD
Title Body text Evidence from satellites of thinning of the Ozone layer led to the Montreal Protocol for reducing CFC’s. Montreal Protocol
Title Body text Ozone Depletion Growth of the Antarctic ozone hole over 20 years, as observed by the satellite Darkest blue areas represent regions of maximum ozone depletion.
Title Body text Earth’s Shrinking Biosphere 1900-2000 AD Currently, the Earth is the only home we have. With each new person added to our growing population, the amount of our living space decreases. Land Area hectare per / capita INDIA Per capita agricultural area - 0.60 Ha. Per capita forest area - 0.04 Ha.
Title Body text Transboundary: Dust over the Pacific Images taken between April 29 and May 5, 2005 shows dust from the Gobi Desert crossing the Pacific, well on its way to North America.
Title Body text Gangotri Glacier, Northern India • Receding since 1780 • Last 25 years, Gangotri Glacier has retreated more than 850 m (2 788 ft)
The Earth Mankind Inherited
The Earth Mankind Inherited
The Earth Mankind Inherited
The Earth Mankind Inherited
Most threatened wildlife species - I
Most threatened wildlife species - II
Most threatened floral species - I
Bhopal Gas Leak Disaster, 1984 Worst of Environmental Accidents – Must Learn from the Disaster
Other Mega disasters are – Chernobyl (Russia) & Fukushima (Japan) The Public Liability Insurance Act, 1991 and Public Liability Insurance Rules, 1991 are still not implemented in “essence & spirit”
The Present Day Scenario
WATER SEEMS GLOBALLY ABUNDANT - AND EVEN IN EXCESS ? .
SAVE & RECYCLE • Reduce your needs. • Reuse or Recycle as much water as you can. • Recycle as many items as you can. • Recycling saves resources and energy used for producing new items and at the same time saves water used in their production. • Harvest and conserve water. • Do not pollute water.
GREEN HOUSE GAS EFFECT The GHG effect is the rise in temperature that the Earth experiences because certain gases in the atmosphere (water vapor, carbon dioxide, nitrous oxide, and methane, for example) trap energy from the sun. Without these gases, heat would escape back into space and Earth’s average temperature would be about 60ºF colder. Because of warming effect on the world, these gases are referred to as greenhouse gases. The greenhouse effect is important. Without the greenhouse effect, the Earth would not be warm enough for humans to live. But if the greenhouse effect becomes stronger, it could make the Earth warmer than usual. Even a little extra warming may cause problems for humans, plants, and animals.
The Green House Effect
GHG Effect is like a car parked in the shining Sun
Phenomenon of Green House Gas Effect • Green House Effect - The effect produced by GHGs allow incoming solar radiation to pass through the Earth's atmosphere, but prevent most of the outgoing infrared radiation from the surface and atmosphere from escaping into outer space. • Green House Gases - Any gas that absorbs infra- red radiation in the atmosphere. GHGs include water vapor, carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), halogenated fluorocarbons (HCFCs) , ozone (O3), perfluorinated carbons (PFCs), and hydrofluorocarbons (HFCs), Sulphur hexafluoride (SF6) and Sulphur hexachloride (SF6).
Ozone Depletion in Stratosphere • CFCs can survive up to 8 yeas and slowly drift to stratosphere. • CFCs are destroyed by UV radiations and chlorine is released as free radicals. These free radicals are capable of destroying up to 1,00,000 Ozone molecules in chain reactions: UV radiation CFCl3 CFCl2 Cl (free chlorine radical) Cl + O3 (Ozone) O2 + CLO (Chlorine monoxide) CLO Cl (free chlorine radical) + O O2 + O O3 + Cl ClO + O2
GASES RESPONSIBLE FOR GREEN HOUSE EFFECT Gases covered under Kyoto Protocol: A. Carbon di-oxide – CO2 B. Methane - Ch4 C. Nitrous oxide - N2O D. Hydrofluorocarbons – HFCs E. Perfluorocarbons - PFCs F. Sulphur hexafluoride - SF6
Annual Precipitation Trends
Anthropogenic Radio-active System
Comparison of Temperature Change
Comparison of Temperature Change
Global Temperature Range
Indicators of Human Influence
fxj;Lrs ioZr% fgeoUrks vj.;e~ rs i`fFkoh L;ksueLrq vFkZoosn O Mother Earth! May your Mountains be show-clad and your forests enchanting for our prosperity! Atharrva Veda
Objective of the Exercise • To promote ecological stability in forest deficient districts, no funds for climate change Mitigation Planning, • To mobilise adequate financial resources for developing forestry plantations on degraded forest areas through Public – Private – Partnership, development of CDM & REDD+, Ecotourism sectors. • To promote employment generation by unlocking potential of degraded forest land. Despite availability of 2,88,000 sq.kms. degraded forest land, India Inc. is being forced to move out to Indonesia, Malaysia, Ethiopia, Congo, Ghana, Bolivia, Argentina and Peru etc. Reverse this flight of capital & generate resource.
Forest Types of India
Soil Types of India
Forest Cover of India* Diversion of about 300 sq.kms. forest areas (0.04%) in next 20 years can solve the energy problems of the country. Most of these coal blocks are situated in different micro & milli-watersheds – consequently it would not cause great ecological problems. Coal Blocks are site specific projects and should get priority (S.F.R., 2015 of Forest Survey of India) Sites with high potential for Hydel Power Projects Also high vulnerability to Schedule-VI areas, tribal communities, FRA, Ecologically Fragile Zones
FORESTS AT A GLANCE • Geographical area – 32,87,263 sq. kms. • Forest area – 7,57,740 sq. kms. • Forest cover – 6,78,333 sq. kms. – the eco-resource for livlihood. • Legal status of forest area – A. Reserve Forests (RF) – 3,99,919 sq. kms. B. Protected Forests (PF) – 2,38,434 sq. kms. C. Un-classed forests – 1,36,387 • Un-culturable non-forest areas – 2,11,286 sq. kms. • Growing Stock – 4740.858 million cubic meter • Growing Stock / ha. – 74.42 cubic meter • Current Annual Increment – 8.76 million cubic meter • Current C.A.I. - 0.69 cubic meter / ha. • Potential CAI possible - 3.60 cubic meter / ha. (Peterson’s formula) • Simpson’s Biodiversity Index, Berger-Parker Species Richness Index, Shannon Weiner Biodiversity Index not provide promising picture. • Forest cover stagnant with cyclical change, qualitative deterioration of ecological resources due to scarcity of finances.
Spatial patterns of the changes in annual mean surface air temperature [2071-2100 (baseline 1961-1990 : A-2 scenario)
Spatial patters of the changes in summer monsoon rainfall 2071-2100 (baseline 1961-1990 : A-2 scenario
CHANGES IN ANNUAL NUMBER OF RAINY DAYS (A-2 scenario)
Impact of Climate Change on Forest Biomes Distribution of Forest Biomes in 1975 Projected distribution of Forest Biomes in 2085
Forestry & Climate Change • Wet savannas are converting into dry savannas . • Tropical seasonal forests being degraded into xeric woodlands. • There would be no wet savanna and tropical seasonal forests after 2070 to 2100 A.D. • Acute shortage of water, forest cover and forest produce envisaged afetr 2020. • Sharpe decline in minor forest produce and biodiversity – shall prove detrimental for tribal communities due to absence of employment.
Red indicates that a change in vegetation is projected at that grid in the time-period of 2021-2050 and 2071-2100 (under A1B scenario). Green indicates that no change in vegetation is projected by that period. Climate Change and Forests Vegetational changes projected by 2021-2050 and 2071-2100 Based on computer simulation models of National Remote Sensing Agency & ICFRE
Biodiversity Vulnerable Grids of India (marked red) in the A1B scenario – for India - 2035 and 2085 Climate Change and Biodiversity Vegetational changes projected by 2021-2050 and 2071-2100
PROJECTED IMPACT OF CLIMATE CHANGE ON FORESTED GRIDS IN INDIA A2 SCENARIO Source: Chaturvedi et al., 2011 39% of the forest grids likely change under A2 scenario by 2085 causing loss of Carbon stock and biodiversity 1 = stable grids 2=forest grids undergoing change
Forest type distribution and extent simulated by IBIS for the baseline case and A1B (2035 and 2085) scenarios. (VT – refers to Vegetation Types. The numbers refer to the following vegetation types 1: Tropical evergreen forest / woodland, 2: Tropical deciduous forest / woodland, 3. Temperate evergreen broadleaf forest / woodland, 4: Temperate evergreen conifer forest / woodland, 5: Temperate deciduous forest / woodland, 6: Boreal evergreen forest / woodland, 7: boreal deciduous forest / woodland, 8: mixed forest / woodland, 9: Savanna, 10: Grassland/ steppe, 11: Dense shrubland, 12: Open shrubland, 13: Tundra, 14: Desert, 15. Polar desert / rock / ice)
NPP distribution (kgC/m2/year) simulated by IBIS for baseline and A1B scenarios Impact of CC on Net Primary Productivity (NPP) Current NPP – 835 g C/m3 A2 GHG scenario – doubling of NPP predicted B2 GHG scenario - 73% NPP increase predicted NPP Increase in all the forest grids projected due to CO2 fertilisation effect
CONSTITUTIONAL PROVISIONS RELATED TO FOREST & WILDLIFE At the time of promulgation of the Constitution of India, subject of “forests” was kept in the State List. “Forests” transferred to the “Concurrent List”, List- III as Entry–17A and ‘Wildlife’ inserted as Entry- 17B by the 42nd Constitution Amendment Act, 1976. Article-251 & 254 of the Constitution provides that state statutes cannot be repugnant to Central Acts. If there is any repugnancy, it automatically becomes “null & void”. Prior approval of Govt. of India is essential for operation
At the time of promulgation of the Constitution of India, subject of “forests” was kept in the “State List”. There was no entry of “wildlife”. “Forests” transferred to the “Concurrent List”, List-III as Entry–17A and “Wildlife” as the Entry-17B by the 42nd Constitutional Amendment Act, 1976. Article-251 & 254 of the Constitution provides that state statutes cannot be repugnant to Central Acts. If there is any repugnancy, state statutes automatically becomes “null & void”. Constitutional provisions related to “forest” & “wildlife” All forest & wildlife statutes - FCA, WLPA, IFA, PESA, STOFDRFRAct are Central Acts. The statutory reforms are in jurisdiction of the Parliament. Statutory reforms virtually impossible in near future.
INTERNATIONAL CONVENTIONS
India is signatory of large number of international conventions India is signatory of 31 international conventions: • Basel Convention; • Center for International Forestry Research (CIFOR); • Commission on Sustainable Development (CSD); • Committee on Forestry (COFO); • Convention on Biological Diversity (CBD); • Convention on Migratory Species (CMS) • Convention on International Trade of Endangered Species of Fauna and Flora (CITES); • Convention to Combat Desertification (CCD); • Crane Convention;
• Food and Agriculture Organisation (FAO); • Global Forest Resources Assessment; • Global Legislators Organization for a Balanced Environment (GLOBE); • Inter Agency Task Force on Forests (ITFF); • Inter-governmental Panel on Climate Changes (IPCC); • Inter-governmental Forum on Forests (IFF); • International Tropical Timber Agreement, 1994 (ITTA, 1994) • Montreal Protocol; • Organisation for Economic Co-operation and Development; • Ramsar Convention, 1971; • Special Session of the General Assembly to Review and Appraise the Implementation of Agenda-21 (UNGASS)]; • UNCHE;
• United Nations Commission on Sustainable Development (UNCSD); • United Nations Conference on Environment & Development; • United Nations Development Programme (UNDP); • United Nations Economic and Social Council (ECOSOC); • United Nations Environment Programme (UNEP); • United Nations Framework Convention on Climate Change; • United Nations Forum on Forests; • Vienna Convention on the Protection of the Ozone Layer, • Word Conservation Union; • World Heritage Convention;
Article-253 of the Constitution provides that, all the international conventions, protocols and treatises are implementable in the country.
PRECARIONS CONDITION OF INFRASTRUCTURE DEVELOPMENT UNDER THE CONSTITUTION OF INDIA (SCHEDULE – VIII) Environment & Residuary Power Entries–6,24,27,53, 54 & 97 Union List, List-I SPCB’S/PCC’S Under State Government Mines & Mineral Development Entry – 54, List-I, Union List Entry – 50, List – II State List Forest & Wildlife, Land Entries – 17 A, 17B Concurrent List List – III Entry – 18 State List, List-II Articles – 245 to 254 deal with Union-State relations. Sometimes Statutes have overlapping jurisdictions; rarely repugnant also. Constitutional amendments shall take very long time. Thus efficiency and attitude of civil services are the key words for success.
NATIONAL FOREST POLICY, 1988 • Previous Forest Policies were enunciated in 1894 & 1952. • Salient features of National Forest Policy, 1988. – Principal aim - ensuring environmental stability and maintenance of ecological balance. – Emphasis on afforestation, social forestry and farm forestry (extension in non-forest areas). – Involve local communities in forest protection. – Enhance investment and other resources for forestry. Chink.jpg
Principal forest and wildlife statutes • Indian Forest Act, 1927 (RF and PF cannot be used for carbon trading purposes). • Wildlife (Protection) Act, 1972 (prohibitory in nature, plantations / forest crop cannot be harvested in protected areas of the country). • Forest (Conservation) Act, 1980 (regulate allocation of forest areas to private entities). These forest statutes are silent about “carbon trading”. Thus to facilitate carbon trading in the country, a statute may be having title “Indian Carbon Sequestration & Trading Act” should be enacted in near future. Indian Contract Act is unable to take care of this complicated issue.
Statutory provision for Environment, Forest and Wildlife Clearances • Environment Impact Assessment Notification, 2006 [under Environment (Protection) Act, 1986]. • Section-2(ii), Forest (Conservation) Act, 1980. • Section-38O(g), Wildlife (Protection) Act, 1972 – NPV is 10 times in national parks and 5 times in wildlife sanctuaries; can seriously upset cost:benefit ratio. Other statutory provisions, having high impact on project planning  Panchayati-raj Extension to Scheduled Areas Act, 1996.  Scheduled Tribe & Other Forest Dwellers (Recognition of Forest Rights) Act, 2006  Governance and administration of Scheduled-V and VI areas, notified under the Constitution of India.  Issues of Land Acquisition Act.
 The Act promote exploitation of biodiversity in regulated manner and not prohibitory or conservation oriented in nature.  Recently Forest Department personnel has been assigned power to take cognizance in the Act (recently Range Officer is authorised to take cognizance), though 99% faunal and floral diversity is found in forest areas only. Biological Diversity Act, 2002
BIODIVERSITY SECTOR With over 45,000 plant species, 81,000 animal species, India is one of the world's 12 mega- biodiversity centers. The ethos of conservation is ingrained in India's cultural heritage, developmental activities are increasingly threatening this rich biodiversity. Approximately 20 wildlife species are categorized as "possibly extinct" 1,500 plant species are considered vulnerable and endangered, and some breeds have suffered genetic erosion. Enunciate Biodiversity (Conservation) Policy. Panchayati Raj Extension to Scheduled Areas Act, 1996 or PESA (73rd Constitution Amendment) is not having overriding effect on IFA or WLPA.
INVIOLATE FOREST ECOSYSTEMS
Mangrove Forests – Highly Threatened
Degradation & opening of Sal forests  Sal forests are now open, crown density reduced to 0.4 or less, degraded, suffering from soil erosion.  Absence of regeneration, no seedlings or saplings.  Sal crop is only consisting of pre-selection girth classes. Death of Sal forests is certain after achieving senescence.  Virtually no control over grazing. No Class-I Protected Area in the administration.
Soil erosion in Sal forests  Due to senescence in Sal crop, it is desirable to promote associate species.  Conserve Sal seed by rotational closure or collection or blanket ban to promote regeneration.  Demarcate & monitor “Sal Borer Plots” for disease surveillance. Sporadic attack still continuing.
 Coppice composition in the canopy cannot be assessed. However 2 new interpretation techniques have been developed: A. Natural Vegetation Differential Index (NVDI). B. Leaf Area Index (LAI) But certainly conclusion cannot be inferred whether these 2 canopy assessment techniques have been used in satellite maps of FSI.  Site Quality Assessment could not be possible earlier. Recently LIDAR (Laser Detection And Range) has been developed for height assessment. Sensitive height assessment tool i.e. can measure 10 cms changes. But IRS-C data is not having compatibility with LIDAR. Serious drawback as canopy height from the ground is concerned.
Analysis of Crop Assessment
Analysis of Crop Assessment – Phoenix Infestation  Large scale crop dried and died after Phoenix sylvestris infestation in Nagri & Sihawa (Dhamtari district, CG) and Narharpur, Keskal, Korar, Pharasgaon Ranges (Kanker & Kondagaon district, CG) in 1980s.  Sal Regeneration absent except Kanha National Park, MP.  “Sal seed collection”, huge threat to Sal regeneration.  Critically small “germination period” of 7 days. Monsoon is shifting to July and August. Genetic incompatibility.
Phoenix sylvestris and P. acualis infestation in Sal
Invasive species in Sal forests, CG - 1  Invasive species of Opuntia and Cactaii observed in Korba and Surguja districts of C.G. These species were not found about 30 years ago.  These invasive species signify drying of Sal forests.  Serious “genetic erosion” observed in Sal crop.
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Effect of opening of canopy in Sal forest Encroachments are opening canopy in Sal forest, leading to drying of forest floor and consequently invasion by invasive species – making Sal seed germination and regeneration impossible.
Invasive species in Sal forests, M.P. Calotropis procera, C. gigantia, Argemone maxicana, one more species of Argemone genus observed recently.
Invasive species in Sal forests, M.P.  Invasive species of Ocimum grandisimum (new invasive species) observed in Mandla, Dindori, Shahdol and Umaria districts. These species were not present about 30 years ago.  Signifying drying of Sal forests. Solidification of forest floor and baking due to recurrent forest forest fires biggest hurdle in Sal seed germination & regeneration
Dried Sal Forests
Dried Sal Forests
Underground Mining versus Opencast Mining All “assessment committees” are pressuring project proponents not to undertake opencast mining in diversion area. Compartment RF 830, Beat Karkatti Compartment RF 825, Beat Sironcha
Trees and other vegetation are drying & dying within 10 years of underground mining – study may be carried-out to establish truth. Compartment RF 825, Beat Sironcha Compartment RF 830, Beat Karkatti Leave this technical matter on the wisdom of MOC, MOM and State MRD for appropriate decision
Assessing Stem Condition in Timber Depot
Assessing Stem Condition in Timber Depot
Teak logs exhibiting signs of senescence and fire damage
Teak logs exhibiting signs of senescence and fire damage
Impact of Sal Borer & consequent heavy mortality in crop - 1 Caused by larvae of Haplocerambyx spinicornis, Order Coleoptera. Insecticide or fumigation not possible since infestation is caused in Monsoon.
Impact of Sal Borer & consequent heavy mortality in crop Promote “Biological Control” or increase proportion of associate species to reduce vulnerability of “Pure Sal” crop. Root cause of Sal Borere attack – Removal of associate species of Sal and consequent creation of monolith Sal stands, poluculture Sal less susceptible to Sal Borer attack.
Sal Regeneration Technique to be adopted on Technically reclaimed sites and degarded sites • Protection against biotic interference. • Deep soil working upto 45 cms depth. • Collection of winged Sal seed and direct sowing of five kilogram seeds per ha. • Monitoring of germination of Sal seeds and maintaining soil moisture regime if monsoon is delayed. The soil moisture regime shall be maintained with the use of geo-textiles, if required. • Humus enrichment by farm yard manure / sewage sludge. • Standardise Sal Nursery and plantation technique for wide spread application.
Assisted Sal Regeneration Forest School, Distt. Jagdalpur, Chhattisgarh
Assisted Sal Regeneration Site Ambikapur Nursury, Distt. Surguja, Chhattisgarh. Sal Crop raised in 1984-85
Sal Plantation Rajgamar Plantation, CG Forest Department, Korba Range, Korba Division, Chhattisgarh Chotia Mine, Prakash Industries Hasdeo- Arand Coalfield, Distt. Korba, Chhattisgarh Urgently develop “techniques for Sal plantations”
Typical Teak forests in the country Site quality degrading very fast, soil fertility going down, depleting moisture regime
Typical Teak forests in the country  Economic value fast declining.  Re-assess site quality of these Teak forests.  Root-Shoot planting technique is required to be replaced by Pre-sprout or poly-pot.  No reduction in “selection girth” below 120cms gbh
Effect of repetitive coppicing in Teak crop Stump vigor seriously declined due to repetitive coppicing
Effect of repetitive coppicing in Teak crop
Serious Phoenix sylvestris infestation in Teak plantations in Mixed forests
Serious attack of Teak Powdery Mildew on Teak Crop
Serious attack of Teak Leaf Skeltonizer and Teak Leaf Defoliator in Teak crop
Serious attack of Teak Leaf Skeltonizer and Teak Leaf Defoliator in Teak crop
Gall formation and un-sustainable resin exploitation in associate species Sterculia urens Boswellia serrata Butea monosperma
Issues of wildlife and Wildlife (Protection) Act, 1972 Denotification virtually impossible (HSC order dated 13th November, 2000 National Parks – 85 Wildlife Sanctuaries - 445 Community Reserve - 2 Tiger Reserves - 38 Elephant Reserves – 64 Total Area – 155348.88 sq.kms App. 4.64% of terrestrial area
Present & Potential “Protected Areas” of India
PROTECTED AREAS & WILDLIFE (PROTECTION) ACT, 1972 Salient features • Geographical area (including forest area) under PA network – 1,55,348 sq. kms. • New PAs are not being notified. Impact of Wildlife (Protection) Act, 1972 • Rights cannot be acquired or traded u/s 20, WLPA. • Most of RF is part of protected areas. • Exploitation not possible under Section-29, WLPA. • Ban on exploitation & diversion of protected areas under orders of the Hon’ble Supreme Court. The habitats of protected areas cannot be used for ‘mining purposes” due to prohibitory legal regime. Even non- forest area of protected areas cannot be used (Tahir Ali ver. State of Madhya Pradseh
Typical forest & village mosaic of a protected area All non-forest areas situated within external boundary of protected areas are part of inviolate wildlife habitat. Gopal Das Mittal ver. State of Madhya Pradesh
Effect of fragmentation of forest & wildlife habitat corridor
APPLICABILITY OF WLPA Protected areas FOREST DEPARTMENT • National Parks, • Wildlife Sanctuaries, • Conservation Reserve • Community Reserve. Species specified in Schedule-I, II, III, IV & VI having jurisdiction over 6800 species (based on the Storer & Usinger Classification Specified Species Specified international conventions
Contraction of Asian Elephant Range Over-time
0 FOREST COVER OF CENTRAL INDIA
Forest Cover Map of Madhya Pradesh
Bio-richness Index of Madhya Pradesh
Critical Ground Water Depleting Regions of Madhya Pradesh
Achieved MAI of 6.00 cmt./ha. / annum in past 40 years
Landscape Atalas of Madhya Pradesh
Problems faced by forest financing sector • No effect of injunction issued by MRTPC. • Collapse of green plantation companies in 1980s and 1990s. • Fraud and mis-appropriation in “non- banking financial corporations’ (NBFCs) in past 2 decades – RBI black-listed 592 companies. • Investors don’t have faith in such financial mechanism – as a consequence mobilising finance virtually impossible.
Resource Allocation in Five Year Plans
Contribution of forest resources to G.D.P. • The Xth Five Year Plan formulated by the Planning Commission of India accepts that the “forestry sector” contributes 2.37% to economic GDP of the country. • The budget allocation to “forestry sector” varies from 0.039% to 1.130% only. Massive outflow observed even in this allocation to “non-forest” purposes. • The forest areas cannot remain aloof from financial mechanism, GDP growth rate should be 10-12%. • Budget resources are drying-up for forestry sector. Forest have been dis-invested @ 2.16%. The trend has to be reversed for survival of forest resources.
Causes of failure of Carbon Market • The scrips of CER, VER, REDD+ & REDD++ are not commoditized under the Companies Act, 1957. No investor is interested in unsecured securities. • CER not secured in land records. • Risk of “carbon leakages” (PF burdened with Nistar privileges) – no insurance cover available. • No digital trading platform available like NSE, BSE, MCX et. • No Securities Exchange Board of India Ac, 2005 type Carbon Trading Act. No SEBI type Market Regulator. • No depository like NSEL, CDSL etc. • No Carbon Mutual Funds for small farmers.
Statutory provision for Environment, Forest and Wildlife Clearances • Environment Impact Assessment Notification, 2006 [under Environment (Protection) Act, 1986]. • Section-2(ii), Forest (Conservation) Act, 1980. • Section-38O(g), Wildlife (Protection) Act, 1972 – NPV is 10 times in national parks and 5 times in wildlife sanctuaries; can seriously upset cost:benefit ratio. Other statutory provisions, having high impact on project planning  Panchayati-raj Extension to Scheduled Areas Act, 1996.  Scheduled Tribe & Other Forest Dwellers (Recognition of Forest Rights) Act, 2006  Governance and administration of Scheduled-V and VI areas, notified under the Constitution of India.  Issues of Land Acquisition Act.
Issues related to Scheduled Tribe & Other Traditional Forest Dweller (Recognition of Forest Right) Act, 2006
• STOTFD(RFR) Act, 2006 enacted and became operational on 1st January, 2007. • Jurisdiction over all types of forest areas – RF, PF, revenue forests, village forests, dictionary meaning of forests etc. • Two types of rights can be claimed: A. Individuals can claim upto 4.00ha per person. B. Community can claim any area (without limit). • Open ended Act. Claims can be put-up any time. • Forest areas not to be de-notified i.e. both STOTFD(RFR) Act, 2006 and Forest (Conservation) Act, 1980 shall apply. • No involuntary eviction / settlement – huge cost shall be involved. • Linear projects e.g. roads, transmission line, skyline crane, conveyor belts, pipelines etc. shall be almost impossible. Issues related to Scheduled Tribe & Other Traditional Forest Dweller (Recognition of Forest Right) Act, 2006
Forest Areas Diverted under Forest Rights Act, 2007*  Individual Forest Rights – 4119650 Acres (@Rs.2.00L=82393 Cr.)  Forest crop losses - 1716520ha.X40cmt/ha.XRs.20000/cmt (not including environmental losses Rs. 13732160 Cr.  Community Forest Rights – 9985095 Acres (@Rs.1.00L=99850 Cr.)  Total Forest Area - 14104744 Acres  Total Forest Area Assigned - 5876976 Hectares  Total Forest Area Assigned - 58769.76 Square Kilometer  Percentage of forest area assigned - 8.66%  All data obtained from the “Administrative Report - 2017”, Ministry of Tribal Affairs  Total losses due to FRA assignment - 182243.00 Crores (forest land only)
Ibex Roasted Alive in the Himalayas in Intense Forest Fire - 2018
Issues related to Panchayatiraj Extension to (Scheduled Areas) Act, 1996.
Background Information • India is one of the 12 mega diversity rich country. Geographical area of India is 32,87,263 sq.kms. with forest area of 7,69,538 Sq.kms. forest cover of about 23.40% • The X Fifth Year Plan accepts that forest contribute 2.37% to Gross Domestic Product (GDP). Resource allocation to forestry sector is pathetic because during various Five Year Plans, 0.03 to 0.09% resources have been allocated to Forestry Sector. Out of this resource allocation, merely 3-4% have been actually been utilized in silvicultural operations. • Require Rs. 8,64,000 Cr (Rs. 3.00 lakhs per ha., maintenance 5 years) for developing 2,88,000 sq.kms.
According to the India State of Forest Report, 2015 of Forest Survey of India, 2,87,820 sq.km. of open degraded forest areas are available within the country.  Madhya Pradesh is alone having 36,074 Sq.km, State with huge potential. Virtually there are no issues related to “law & order”.  Maharashtra 21,095 Sq.km.,  Odissa 20,477 sq.kms,  Andhra Pradesh 19,297 sq.km.,  Chhattisgarh 16,600sq.km. etc. Offer large viable economic potential for development of plantation industry in the country.
Limitations of Satellite Imaging in India  Species composition cannot be determined.  Forests stand composition cannot be determined – Every forest stand is having a different “Different Reflectance Signature” (Hyper Spectral Signature, 256 spectral signatures being used in USA, but not being used in India).  Mostly satellite imageries of October / November is used in India – thus seasonal and phenological occurrence is very importance because “Chlorophyll Reflectance Index” is related to – total rainfall, rainfall distribution, temperature pattern, long and intermittent rainfall season is likely to interfere in canopy density determination.
• The 1994 inventory of GHGs for India provides a comprehensive estimate of emissions by sources and removals by sinks of carbon dioxide, methane and nitrous oxide (not controlled by the Montreal Protocol). For a transparent and comparable inventory, the revised IPCC guidelines prescribed for development of national GHG inventories have been applied. Emission coefficients in key sectors have been developed which include CO2 emission coefficients for Indian coal types, CO2 and CH4 emission coefficients for road vehicles, CH4 emission coefficients for coal mining, enteric fermentation, and rice cultivation. • In 1994, 1,228,540 Gg of CO2-eq. of anthropogenic greenhouse gases (GHGs) were emitted from India resulting in a per capita emission of about 1.3 tons. • The CO2 emissions were the largest at 793,490 Gg, i.e. 65 per cent of the total national CO2-eq emissions. • The shares of CH4 and N2O were 31% (18,082 Gg) and 4% (178 Gg), respectively. GHG Inventory of India
• Of the total CO2-eq emissions in 1994, the largest share of 61% was contributed by energy sector, followed by the agriculture sector at 28%, industrial process at 8%, waste at 2% and Land use, Land use Change and Forestry at 1%. • Total CO2 emitted in 1994 from all the above sectors was 817,023 Gg and removal by sinks was 23,533 Gg resulting in net emission of 793,490 Gg of CO2. Carbon Sequestration rate – 3.6 tonne/ha./p.a. Kind Attention High carbon sequestration potential exist, but remains untapped & under utilised, may lead to penalties after 2017. Sector-wise GHG Contribution
This constituted 65 per cent of the total GHG released in 1994. CO2 emissions were contributed by activities in the energy sector, industrial processes, and land use, land use change and forestry (LULUCF). The relative shares of the three sectors to the total CO2 released from the country were 85%, 13% and 2%t, respectively. The industrial process sector, which includes processes such as iron and steel manufacturing and cement production, is also a major source of CO2.
• The current population density is 423 persons per sq.kms, per capita availability of forests (0.06ha. per person) and agricultural land (0.20ha. per person) is lowest in the developing countries and exhibiting trend of sharp decline. • Tribal communities are heavily depending upon harvesting of forest and biodiversity for life sustenance. May lead to heavy carbon leakages. This peculiar problem has led to steady decline in forest cover (refer ‘Status of Forest Reports’ of FSI and ‘State of the World’s Forests’ of FAO), the country has lost about 27,000 sq.kms. in past 17 years or so. • The picture is not promising when forest cover is analysed in the context of productivity, growing stock, site quality, bio-diversity, almost absence of trees above selection girth, rapid depletion of mesophytic species and increase of xerophytes, density, regeneration, MAI, CAI, susceptibility to biotic factors. • It is imperative for the country to evolve mechanism for reduction in emissions of GHGs and enhance carbon storage / sequestration for mitigation of global climate change; conservation of biological diversity; maintenance of hydrological cycle and soil conservation.
• The panorama of forests ranges from evergreen tropical rain forests to dry alpine scrub, semi-evergreen rain forests, deciduous monsoon forests, thorn forests, subtropical pine forests, temperate montane forests etc. Manifold impact of provisions of Kyoto Protocol on India. • The country is heavily depending upon fossil fuel e.g. petroleum, natural gas, coal, lignite, naphtha, liquefied petroleum gas (LPG). Due to shortage of supply in international market, crude petroleum has crossed 68$ per barrel and likely to hover 90-100$ mark. • This bizarre situation may have negative impact on economy of the country and growth rate may become negative by 9-10% to 5-6% per annum depending on the policy regime & circumstances. Carbon Sequestration potential and Afforestation
1. The emission trading scheme (Article 17 of Protocol):  Will allow the developed countries to transfer emission credits to each other.  Country that reduces emission more than that required by their national target under Kyoto Protocol will be able to sell their excess emission credits to the countries that find it difficult to reduce their own emissions. 2. Joint Implementation (Article 6 of the Protocol):  To be implemented between two or more Annex-I countries.  Credits obtained by investing countries are offset by debits to the country hosting the project. 3. Clean Development Mechanism (Article 12, Protocol):  To promote sustainable development by encouraging investments by Government Governments and private firms in projects in projects in developing that reduce or avoid emission.  Developed countries will receive credit against their targets for emission avoided by these projects. The innovative market based mechanism of Kyoto protocol:
Principal Mechanism of Kyoto Protocol  Clean Development Mechanism.  Joint Implementation.  Emissions Trading.
R.E.D.D. & V.E.R. Trading – Amendments in National Working Plan Code • The National Working Plan Code (NWPC) has been notified for management of forest areas. • The basic tenet of NWPC is to manage forest resources on the basis of sustainable ‘economic rotation’. • If V.E.R. trading is considered for forest areas, the entire process of forest working plans have to be amended and revised according to “carbon rotation”.
• The National Working Plan Code (NWPC) has been notified for management of forest areas. The basic tenet of NWPC is to manage forest resources on the basis of sustainable ‘economic rotation’. If VER / REDD / REDD+ Credit trading is considered (may be in forthcoming Mexico Conference) for forest areas, the entire process of forest working plans preparation have to be amended and revised on the lines of ‘carbon rotation’ in the ecosystem.
Provisions of National Working Plan Code - I Paragraph – 15, 16 and 17 • Climate is an active factor in the physical environment of all living things. • Climate change and Variability are impacting forest Ecosystem processes and functioning. • Response time of forest ecosystems to disturbance ranges from a very short duration to decades and even centuries, depending on the condition of the system and the type, intensity and duration of the external stimuli. • Development of REDD+ Projects.
Carbon Pool Stock Estimation Chapter – VI Survey and Assessment of Forest Resources:  Baseline Methodologies for timber and various bamboo species are not yet developed.  Carbon tables are not available – only volume table, Yield Tables are available.  Soil Carbon – virtually no data available, baseline assessment techniques are not available.  State Forest Departments are not having control over PF, FRA and Schedule-VI areas (notified under the Constitution of India).
Reserve Forest (RF), Protected Forest (PF), Un- classed Forest (UF), Land use, Land use change and Forest (LULUCF) • Entire forest area is notified as RF and PF . Area of the forest under different legal classes (Reserve Forest, Protected Forest, Un-classed Forest, Village Forest etc.) along with number and date of notification for creation of reserve / protected forest is given, and mention is made of various forest settlements. • Multi-dated satellite images may be used for change analysis and preparing change matrix. • Data of non-forest areas are not available. Control of non-forest areas is not vested with State Forest Departments. • Baseline Methodologies for “carbon estimation” at Landscape level is not available. • Afforestation of 38.83 lakh hectare of degraded forest land is a great challenge
Carbon Stock Carbon Sequestration • Details of biomass for carbon stock assessment may be given based on the forest types and land use. • Enhanced carbon sequestration through recognised and innovative silivcultural practices, eco-restoration of degraded / mined out forest lands imporved biomass productivity etc. results in improving forest health and vitality.
Carbon Stock Estimation • The total carbon stocked in the forest is divided into different pools and the changes in carbon stocks in these carbon pools are estimated as per Good Practices Guidance (GPC) developed by Inter-governmental Panel on Climate (IPCC). • Changes in carbon stock based on inventory data may be measured using Stock-Difference method based on tier 2 tier 3 approach of IPCC guidelines. •Gaps in the information collected from state and national research organisations (ICFRE Institute) and further research needs should be explicitly highlighted.
• Forest and Climate Change • Carbon Pool Stock Estimation • Reserve Forest (RF), Protected Forest (PF), Un-classed Forest (UF), • Land use, Land use change and Forest (LULUCF) • Carbon Stock Carbon Sequestration • Ecosystem Management Services • Carbon Stock Estimation
What is a CER ? • A Certified Emission Reduction (CER) is the technical term for the carbon credits output of Clean Development Mechanism (CDM) Projects, Kyoto Protocol. • CDM Project should result in real, measurable and long- term benefits in terms of climate change mitigation. The reductions must also be additional to any that would have occurred without the Project. A unit of GHG reduction that has been generated and certified under the provisions of Kyoto Protocol is termed, as Certified Emission Reduction (CER) is equal to one tonne of carbon-dioxide equivalent. • CER is issued through a due diligence process carried out by the CDM Executive Board, Bonn, and tradable in international markets.
What is a VER ? • VER stands for Voluntary Emission Reduction or Verified Emission Reduction. • The market for VERs is not currently regulated in the way that the CER market is. VERs can vary largely in their quality depending their verification process - due diligence prior to making a purchasing decision required. • High quality VERs should be developed according to the principles of the CDM or a recognised standard such as emerging the Voluntary Carbon Standard (VCS). • A VER credit will do the same as a CER credit. For instance all CER credits have individual serial numbers guaranteeing that they cannot be sold twice.
• VER credits sold by “Carbon Accountable” are ‘pre- registration CERs’, this means that the project is being developed under the CDM, but the emission reductions are generated before the projects is registered by the Executive Board and thus cannot be claimed as CERs but are robust, real and verifiable emission reductions. • Buyers purchasing VERs from Eco-Securities customers have the comfort of the Eco-Securities VER standard which is based on a robust set of criteria, and, where possible, the requirements of the CDM and Voluntary Carbon Standard (VCS) are strictly adhered to.. • The main concepts behind these VER criteria are that emissions reductions must be real, measurable, additional, verifiable and permanent. • The possibility of VER markets shall be explored for MP CDM Project.
MADHYA PRADESH C.D.M. AFFORESTATION & REFORESTATION PROJECT
Carbon Sequestration Right (CSR)  The term Carbon Sequestration Right (CSR) is commonly used to describe the class of property rights, created under Union / State law, that recognize the “right of ownership to carbon sequestered in vegetation” on a particular area of land. It is not a right to a defined tonnage of CO2.  Legal nature of a CSR - The legal nature of a CSR varies and depends on specific contractual arrangements, circumstances of the land tenure, and the legislation that applies.  Currently, there is no ‘special act’ for this purpose.
• All land based projects are complicated. Land holdings are small & scattered. • Multi-stakeholders. • Long gestation period. • Exercise of nistar rights by local communities. • CSRs are not secured in land & transferable with it. • Carbon projects are difficult to formulate. • Susceptible to carbon leakages & high risks. • People just cannot trust project promoters / financial institutions due to past experiences. Why Carbon Sequestration Projects requires special consideration ?
A. Definitions : 1. For land use, land-use change and forestry activities under Article1 3, paragraphs 3 and 4, the following definitions shall apply: (a) “Forest” is a minimum area of land of 0.05-1.0 hectares with tree crown cover (or equivalent stocking level) of more than 10-30 per cent with trees with the potential to reach a minimum height of 2-5 meters at maturity in situ. A forest may consist either of closed forest formations where trees of various stories and undergrowth cover a high proportion of the ground or open forest. Young natural stands and all plantations which have yet to reach a crown density of 10-30 per cent or tree height of 2-5 meters are included under forest. Definitions under Marrakash Accord (COP-7) Deinition of “forest” and “non-forest areas” is quite different from the definition provided under the order dated 12th December, 1996 of the Hon'ble Supreme Court.
Eligibility of land for A&R Project • The land should not be a part of ‘designated forest area’ notified under Indian Forest Act, 1927. • Shouldn’t be under compulsive legal regime and demonstrate ‘voluntary additionality’. • The land should be open, fallow land as on 31 December, 1989 (with evidences of satellite imageries or documents). • Community / Panchayat / Gram Sabha land is also eligible for CDM Projects.
Forest villages and eligibility criteria • India is having approximately 4000 forest villages constituted under Rules / executive instructions. • Not eligible for CER trading since it forms a part of RF / PF notified under Indian Forest act, 1927. • CCX or VER route may be considered for this purpose. • Community land of Panchayats / Gram Sabha is also eligible for CER / VER trading.
Areas / sectors identified for Phase-I • District-wise Sub-bundle Projects of Lokvaniki farmers of Dewas, Harda, Hoshangabad, Betul, Chhindwara, Balaghat, Jabalpur, Seoni, Mandla and Narsinghpur. • District-wise Sub-bundle Projects of plantation industry and carbon farmers of Indore, Dhar, Dewas, Jabalpur, Katni, Damoh & Sagar etc. (23 districts tentatively selected). • District-wise Sub-bundle Projects of horticulture farmers – Mango, Jackfruit, Bel, Chironji etc. Looking to the mammoth size of Madhya Pradesh, response of plantation industry and carbon farmers, it is proposed to formulate following Sub-bundle Projects:
• District-wise Sub-bundle Projects of ‘bamboo farmers’ of Balaghat & Seoni districts (the baseline methodology is not yet fully developed). • Company-wise / mineral wise project of mining companies possessing large land holdings. • Fallow lands available with Deptt of Water Resources, Public Works Department, Rural Development, Railways and Military etc. • Biofuel plantations.
Risks of A & R Projects • Registration risk : Dependent upon CDM Executive Board. • Baseline risk : Change in parameters of LULUCF by COP / MOP. • Performance risk : Non delivery of targets / shortfalls • Currently few CERs in the market not yet fully "commoditized" thus many CER transactions are directly linked to the specific CDM Projects. No uniform transaction structure.
• Uncertainty about post 2008-2012 "first commitment period". • A & R crediting may be seen as risk year due to time lag before actual sequestration, long gestation period etc. • Complicated modalities and procedures, approved methodologies, registration, verification and monitoring. • High project development / implementation cost. • A & R projects are susceptible to weather conditions and natural forces. Lesson Learned Only Government can break this vicious circle with legislative powers, fiscal resources, capacity to work at landscape level and enduring risk in registration and operation
GENERAL PRINCIPLES FOR BUNDLING Bundle Bundle is defined as: “Bringing together of several small-scale CDM project activities, to form a single CDM project activity or portfolio without the loss of distinctive characteristics of each project activity”. Project activities within a bundle can be arranged in one or more sub-bundles, with each project activities retaining it distinctive characteristics – technology / measure; location; application of baseline methodology. Sub-bundle Sub-bundle is defined - “An aggregation of project activities within a bundle having the characteristics that all project activities within a sub-bundle belong to the same type.”
The following principles shall apply to all bundles: (a) Project activities wishing to be bundled shall indicate this when making the request for registration; (b) Once a project activity becomes part of a bundle for a project cycle stage, it shall not be de-bundled for this stage. The Project Board may consider de-bundling in exceptional situations; (c) The composition of bundles shall not change over time. General principles for bundling
(d) All project activities in the bundle shall have the same crediting period ; (e) A form with information related to the bundle must be included in the submission. The form should cover issues such as title of the bundle, general description, project participants, locations, types and categories, estimated amount of emission reduction, crediting period and monitoring plans;
Principles applying to bundling of small-scale project activities of the same type, same category and technology / measure: The following principles shall apply to bundling of small-scale project activities:  Project activities may use the same baseline under same conditions (elaborate details);  One DOE can validate this bundle;  A common monitoring plan can be utilized for the bundle with the submission of one monitoring report, under conditions to be specified.  All CDM project activities within the bundle should have same crediting period, i.e. the same length and same starting date of the crediting period;
 One verification report is adequate, one issuance will be made at the same time for the same period, and a single serial number will be issued for all the project;  The sum of the size (capacity for type-I, energy saving for type-II and direct emissions of project activity for type-III) of the technology or measure utilized in the bundle should not exceed the limits for small-scale CDM project activities as set in paragraph 6(c) of the decision 17/COP.7; and  Each small-scale CDM project in the bundle should comply with the simplified modalities and procedures for small-scale CDM project activities and use an approved simplified baseline and monitoring methodology.
Carbon purchasers Carbon pool M.P. CDM Corporation (the management and investment SPV) Carbon suppliers Carbon asset or entitlement and flow of carbon rights Carbon liability or undertaking, assigning rights to flow of carbon rights Possible external investors or underwriters residual carbon rights Pool Management  Project level carbon accounting, sequestration predictions and verification  Contracts for sale & purchase of CSR.  Insurance and risk management  Allocation of carbon rights (register and track CER, income disbursal) payments payments $$$ Regional Carbon Pools for management
• Carbon leakages are serious problem in ‘Bundle CSR Projects’. • The land in question cannot be ‘locked for 21 or 30 years’ or the farmers may not be interested in the project. CSRs are transferable with the land. • The CSRs would be entered in ‘revenue records’ and the land would transferable with these contractual obligations. Securing Carbon Sequestration Rights against leakages
There are four general groups of participants in pooling:  Carbon purchasers;  Carbon suppliers;  Those providing management services or inputs (such as verification of sequestered carbon); and  Potential external investors or underwriters, (who may be seeking commercial advantages / returns,). Carbon Funds pay to the carbon suppliers (land managers / owners) for undertaking carbon sequestration in return for those assigning their CSR to the pool, and thus to the beneficial owners of the pool. Funds can have contracts with various service providers for bundle management services, including a range of specific services associated with ‘producing’ or verifying the sequestered carbon pool. How carbon pooling shall work
Risks Facing Suppliers and Purchasers of Carbon Rights Risk Mitigation for supplier Mitigation for purchasers Vegetation fails to sequester at predicted rate Participating in a carbon pool may mitigate this risk and subsequent possible liabilities, depending on the contractual obligations of the supplier to the carbon pool. Maintain a buffer for this purpose or trade 98-99% of CSR. Investing in a carbon pool as opposed to a single carbon producer will mitigate these risks and subsequent possible liabilities. Buyers should insist on a well documented and considered vegetation management plan. Natural Disaster Geographical distribution of re-vegetation sites to mitigate against destruction from natural disasters such as fire, pest attack and flood. Also, insurance coverage for such incidents. Participation in a carbon pool may mitigate some of these risks and subsequent liabilities. Investing in a portfolio of carbon sequestration projects can provide a wide geographical distribution to mitigate against destruction from natural disaster. Consider investing in a carbon pool that has these qualities in- built. Also consider insurance coverage.
Risk Mitigation for supplier Mitigation for purchasers Measurement Integrity Apply nationally recognized method of estimating carbon sequestration. Independent verification of sequestered carbon. Independent verification of sequestered carbon Liability for carbon emission if vegetation is removed in the future (post contractual period) Will depend on the obligations of the supplier to the pool. Will depend on the obligations of the pool to the purchaser.
What is involved in establishing a carbon pool managing multiple benefit streams • Flexibility. • Governance and accountability arrangements. • Risk sharing and management. • Administrative costs. • Taxation issues - payments and benefits are likely be formulated on the core parameters governing land management agreements. To help organisations identify which type of pool or investment vehicle is likely to be best suited to their needs, the major forms of investment vehicles that could be used for carbon pooling (i.e. partnerships, joint ventures and unit trusts) may be assessed against five criteria:
A. Investing in low cost emission offsets to prepare for possible emissions constraints; B. Speculation that carbon sequestration rights may lead to the grant of carbon credits in the future; C. Improving the companies ‘triple bottom line’; demonstrating good corporate citizenship; and participating in government programs that recognises carbon sink offsets, Parameters for investors decision in investment for carbon credits Companies may decide to invest in sequestered carbon for a variety of reasons, including:
A. Project level carbon accounting, sequestration predictions and verification; B. Contracts for sale and purchase of rights to sequestered carbon; C. Insurance and risk management; D. Allocation of rights; and E. Financial and other reporting. In some cases, land managers (or chartered forester) with responsibility for large parcels of land may choose to establish a pool for only their holdings, and possibly act as their own pool manager, to improve management of risks (such as vegetation failure). A carbon accounting pool could be responsible for:
Advantage of Carbon Bundling The advantages of pooling include: A. Achieving economies of scale, reducing management and administrative costs, which can allow broader participation; B. Allowing better management and servicing through specialization, including allowing outsourcing of carbon management functions where this is not the ‘core business’ or expertise of an organisation; and C. Providing better risk management for investors and land-holders. for both management expenses and cost savings. D. Geographical distribution act as insurance against “carbon leakages”.
E. Additional expenses or savings will be incurred in requirements to register and track the CER and obligations of all pool participants, relative to the situation where an entity manages its own rights and obligations. F. Cost savings may arise from the economies of scale in managing carbon sequestration activities (i.e vegetation management, carbon predictions, estimates and verification) in a carbon pool structure. G. Plantation crops like Mango, Rubber, Palms, Coconut, Tea, Coffee, Pepper, Cashew etc. can also considered, participate and reap additional economic benefits.
Types of Degraded Forest Areas in M.P. • The Land Capability Classification is governed by All India Site Quality or M.P. Site Quality. • The top site qualities of I, II, II/III are not likely to be leased due to various factors. • The site qualities of IIIa, IIIb, IVa and IVb are most suitable for plantation industry. atisfactory site quality with adequate IRR and institutional finance possible. • Site qualities of Va and Vb – extremly low productivity, fertility; tangible profit not possible. Yield & Volume Tables are available for most of the species
Extremely degraded sites conforming to All India Site Quality Va and Vb Low Internal rate of Return (IRR) Debt servicing may be difficult
Effect of shelterbelt on habitation and cultivation
Maps and satellite imageries Forest maps are vital for silviculture crop assessment and determination of Net Present Value (vital document)
Forest Satellite Imagery – only land-use discernible, legal status cannot be ascertained “Gap Light Analyser” is available for Crown Density Determination. Th forest crop should be analysed on crown density, site quality, regeneration, Yield Table parameters, Basal Area calculation based on Wedge Prism.
Soil Moisture Conservation & Catchment Area Treatment Plan
Percolation Tank - South Sagar Division
Tank - South Sagar
Welcomes You M.P. Rajya Van Vikas Nigam Ltd.
 MPRVVN at a Glance  Objects of the incorporation of MPRVVN  Pending proposals of forest area transfer  Sale of Teak root-shoot to M.P. Forest Department  Budget provision for “A & C Type” Area Treatment  Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)  Plantation area transferred to Buffer Zone of Satpuda Tiger Reserve.  Issues of Wildlife Management Overview of the Presentation for Coordination between Forest Department and MPRVVN
MPRVVN at a Glance Date of Incorporation 24th July 1975 Status Incorporated under the Companies Act, 1956 (now Companies Act, 2013) as a PSU owned by the Government. Share Capital Authorised Share Capital Rs. 40.00 Crore Paid-up Share Capital Rs. 39.32 Crore Govt. of India Rs. 1.39 Crore (Share holding 3.53%) Govt. of M.P. Rs. 37.93 Crore (Share holding 96.47%) Total Rs. 39.32 Crore Board of Directors Max limit of Directors is 11 Accounts Status Accounts for the Financial Year 2012-13 has been adopted by share holders and have been placed before the Vidhan Sabha in March 2014 Lease Rent Rs 66.40 Crore to GoMP (for the Financial Year 2012-13) Dividend Rs. 9.24 Crore (GoI Rs. 0.33 Crore & GoMP Rs. 8.91 Crore) Transferred Area to Nigam 4.25 Lakh Ha. (retained 3,80,000ha.) Net Worth of Plantation Rs. 3500 Crore (approximately)
 To accelerate and augment forestry production by creating plantations of • Fast growing species • Species of higher economic value • Species capable of diversified use for industrial and commercial purposes.  To bring suitable forest areas under intensive Management Practices in order to improve, enrich and enhance production, both in quantity and quality.  To undertake maintenance, preservation, protection and development of existing fauna.  To carry on business of felling, converting, dragging, hauling, marketing, processing, standardising, grading, sorting, distributing, selling and carrying out all aspects of exploitation of forest products grown, raised or otherwise found naturally. Objects of the incorporation of MPRVVN
POLICY REGIME & FOREST COVER • National Forest Policy, 1988 and several State Forest Policies stipulate 33% forest cover on geographical area. • Forest cover around 23% app. (including tree cover outside forest areas). Extreme problems in spatial distribution of forest cover. • High density population – 434 persons / sq. kms. • If we analyze forest cover in terms of productivity [0.69 cmt./ha./annum, world average 3.10 cmt./ha./annum], growing stock, site quality, biodiversity, almost absence of trees above selection girth, density, regeneration, MAI, CAI, susceptibility to biotic pressures, declining mesophytic species, increasing dominance of xerophytic species, rapidly drying forest area due to repeated coppicing – scenario is not promising. • Scenario is uniform through-out Asia, barring Japan & Malasia.
Principal forest and wildlife statutes • Indian Forest Act, 1927 (RF and PF cannot be used for carbon trading purposes. • Wildlife (Protection) Act, 1972 (prohibitory in nature, plantations / forest crop cannot be harvested in protected areas of the country). • Forest (Conservation) Act, 1980 (regulates allocation of forest areas to private entities and diversions) – Forest (Conservation) Rules, 2003 are silent and Guidelines just not notified. The Section-2(iii) of Forest (Conservation) Act, 1980 provides framework for Public – Private – Partnership / forest land leasing
Statutory Regime • Indian Forest Act, 1927 is silent on allocation of forest areas. • Wildlife (Protection) Act, 1972 (Section-20, 29, 50 & 51) is prohibitory and ban exploitation of habitat of protected areas for commercial purposes. • All State Acts are silent on the subject. • Section-2(iii), FCA provides the insight into “assignment of forest lands”. • Precedence of allocation of forest land – V.R. Thirumalaiswami Goundur v/s Chief Conservator of Forests, AIR, 1996, Kerala 213 at 218 (DB). If forest land can be assigned for “non-forest” purposes, it can be allotted for “afforestation & reforestation” purposes also.
Level of Ignorance & Lessons The FCA has got 4 well defined jurisdictions: – Section-2(i) : De-notification of forest areas. – Section-2(ii) : Diversion of forest areas. – Section-2(iii) : Assignment of forest areas. – Section-2(iv) : Treatment of forest crop under duly sanctioned working plan The Forest (Conservation) Rules, 2003 (as amended 2004 & 2014) provides for “diversion of forest areas” and silent on other 3 jurisdictions. Security of Investment Legislative framework is a must to boost “security of investment” and “trouble free implementation”. No forest land lessee; CER, VER, CSR buyer shall come to purchase “unsecured lease rights / property”.
Why a special / specific Act is necessary? • The Union of India can enact “Indian Carbon Sequestration & Trading Act”, under “Residuary Powers” of the Constitution (there is no other alternative). • FCA is having just 5 sections, briefest Act of the country (after Power of Attorney Act, having 4 sections). • Civil Writ Petition No. 202/95, T.N. Godavarman Thirumulkpad ver. Union of India & Others Intense litigation for past 18 years due to badly drafted statute. What will happen in the absence of statute, anybody can visualise?
Constitutional Amendment At present there is no specific entry (except residuary powers) to empower Union or State Governments to legislate on ‘carbon trading’ or specifically ‘carbon sequestration rights’. Insert a new entry in Concurrent List, List-III, Seventh Schedule, Constitution of India to facilitate legislation, governance and administration of these matters.
PROTECTED AREAS & WILDLIFE (PROTECTION) ACT, 1972 Salient features • Geographical area (including forest area) under PA network – 1,55,348 sq. kms. • New PAs are not being notified. Impact of Wildlife (Protection) Act, 1972 • Rights cannot be acquired or traded u/s 20, WLPA. • Most of RF is part of protected areas. • Exploitation not possible under Section-29, WLPA. • Ban on exploitation & diversion of protected areas under orders of the Hon’ble Supreme Court. The habitats of protected areas cannot be used for ‘leasing ‘or ‘carbon trading” purposes due to prohibitory legal regime.
Present & potential Protected Areas of India
Promotion of plantation Industry • Develop computer based yield and growth models of All India Site Qualities & State Site Qualities. Since these vital planning tools are are not available, hence determination of growth and attainment of selection girth is difficult for timberlands. • In India most of the plantation industries are raising even- aged, monoculture crops. To exploit the potential of the site entire biomass production / biological growth should be developed. This planning is necessary to have consistently regular intermittent IRR, otherwise most of the plantation industries may face financial problems in the second half of economic rotation period. • Consider diverting ‘forest land’ for industrial / biofuel plantations under Forest (Conservation) Act, 1980. Legally it is feasible – if forest land can be diverted for non-forest purposes, it can be assigned for afforestation purposes also.
• “Market Research” on “Macro & Micro Economic trends of demand and supply of tropical timber species and paper pulp” may be analysed specially with reference to the Asia-Pacific region. • Paper and plywood industry has shown interest in raising plantations on forest land. But the country is not having any professional timberland management corporations to enthuse modern technical inputs in the plantation sector.
Public – Private – Partnership Projects
• All land based Public – Private – Partnership projects are complicated – land acquisition costly, time consuming & not feasible • Land holdings are small & scattered, hence not viable. • Multi-stakeholders. • Long gestation period. • Exercise of nistar rights by local communities in PF. • Difficult to formulate. • Past experiences not promising. Why “Public – Private – Partnership forest land leasing” projects requires special consideration ?
Prerequisite for Public – Private – Partnership Models • Should be acceptable to financial institutions. • Pledging / mortgaging of forest land not permitted, since all rights are vested in the State Government. The PPP partner shall provide collateral security for this purpose. • If possible, the operator to exploit only “usufruct crop” and not major forest produce. Relaxation for paper & pulp industry.
• The PPP models may be uniform to all locations or different area specific models and agreements to be designed & developed. • The other Public – Private – Partnership models shall be studied before arriving to select best model. The subject matter is open for discussions
CLEAN DEVELOPMENT MECHANISM
Fiasco of Previous Attempts • Government of M.P. enunciated “M.P. Promotion of Forest Based Industries Policy, 1977”. Collapsed due to ad- hocism of IDC and interference. • In the 1996, State Government invited tenders for “allocation of forest lands” without obtaining prior approval under FCA. Tantamount to contravention of the Act. Consequently not allowed by Hon’ble Supreme Court. • GOI took strong objection to misdemanur. • Modalities were not visualized to take care of eventualities. Obtain prior approval under Section-2(ii) and 2(iii) of Forest (Conservation) Act, 1980. No tempering of system to favour selected few.
National Biofuel Policy, 2008 • Recently the Union Cabinet has approved the draft of National Biofuel Policy, 2008. • The National Biofuel Policy, 2008 promotes allocation of “forest lands” for biofuel cultivation
Model -1 for forests land leasing • Identification of degraded forest land viz. compartment numbers, forest blocks with geo- coordinates (to avoid confusion & litigation), determination of site quality for assessment of “premium” and “lease rent”. • State Government & MPSFDC shall approach Ministry of Environment & Forests & CC for prior approval under Section-2(iii) of Forest (Conservation) Act, 1980. • All statutory clearances to be secured, before tender is invited for forest land. Virtually trouble free implementation of the project.
• No allocation of forest land under any circumstances. The bidder would be selected based on tender, fair transparent, competitive bidding etc. • Selection of successful bidder based on a mathematical formula of “premium” (bidders may be required to quote heighest premium for selection process) and “lease rent” – shall be notified with the tender notice. • Total enumeration of forest crop before handing-over possession, existing working plan to be revoked, investor shall get prepared his own WP in consonance with the objectives of the lease management. • “Performance Guarantee” (BG / FDR) equal to 5 times of premium to be submitted before possession. Renewal mandatory or cancellation of lease. Model -1 for forests land leasing (contd.)
Proposed Public – Private – Partnership Model for development of degraded forest lands Investor Forest area under Lease (Bio-fuel / raw material cultivation with exclusive rights to Investor). Communities cannot interfere Project Proponent Forest DepartmentJFMC Nistar and Grazing Lands (30% of lease area)
Model for Public – Private – Partnership.
• Lease period of 40 years, can be extended for 20 years, long lease period required looking to heavy investment, delayed break-even point, low IRR, 8 to 10 rotation of forest crop should be possible. Corollary can be drawn from Section-8(2) of Mines & Mineral (Development & Regulation) Act, 2010. • About 30% lease area shall be ear-marked for exercise of Nistar privileges by communities, shall be developed with investment by forest lessee and administered & managed by State Forest Department. No interference in rest 70% area by communities. Model -1 for forests land leasing (contd.)
• Once working plan is approved for the lease area, no interference by the State Government. • “Premium” and “Annual Lease Rent” is payable by the lessee to the State Government. Annual Lease Rent is to be revised every 5 years. The revision criteria shall be transparent, without any arbitrary clause. May be linked with Wholesale Price Index (WPI) or Consumer Price Index (CPI). • The current grass / fodder production about 0.75-1.00 tonnes / ha. The successful lessee to share 2.00 tonnes forage / ha. with communities. But no grazing to be allowed in lease area. Model -1 for forests land leasing (contd.)
• The investor shall be allowed to carry-out soil – moisture conservation measures and develop water harvesting structures for irrigation of plantations. • A proposal would be submitted to treat expenditure on SMC as “capital losses” under Income Tax Act, 1961. • The investor shall employ local labours for plantation operations. • The standing crop (Crop-I) shall be harvested by State Government on attaining rotation. Lessee shall be held responsible for “illicit fellings”. Model -1 for forests land leasing (contd.)
Issues related to Scheduled Tribe & Other Traditional Forest Dweller (Recognition of Forest Right) Act, 2007
• STOTFD(RFR) Act, 2006 enacted and became operational on 1st January, 2007. • Jurisdiction over all types of forest areas – RF, PF, revenue forests, village forests, dictionary meaning of forests etc. • Two types of rights can be claimed: A. Individuals can claim upto 4.00ha per person. B. Community can claim any area (without limit). • Open ended Act. Claims can be put-up any time. • Forest areas not to be de-notified i.e. both STOTFD(RFR) Act, 2006 and Forest (Conservation) Act, 1980 shall apply. • No involuntary eviction / settlement – huge cost shall be involved. • Linear projects e.g. roads, transmission line, skyline crane, conveyor belts, pipelines, Issues related to Scheduled Tribe & Other Traditional Forest Dweller (Recognition of Forest Right) Act, 2006
• Topsy turvey settlement process – Gram sabha, Block Committee and ultimate decision at District Committee. Pressure to accept all claims. • Bamboos have been brought under STOTFD(RFR) Act, 2006. Authority to issue “transit pass” assigned to Panchayats (particularly Maharashtra) – shall be an issue in Bamboo based models. • No procedure provided in STOTFD(RFR) Act, 2006 to acquire once settled rights of individuals or communities. • Improper and ambiguous record maintenance by Deptt. Of Tribal Welfare. • The Section-3, 4, 5, 6, 9, 12 and 25 (easement) of the Limitation Act, 1963 provides 3 years time frame for submitting claims. It is proposed to consult Ministry of Law & Legislative Affairs on this issue.
Issues related to Panchayatiraj Extension to (Scheduled Areas) Act, 1996.
• Enacted to provide jurisdiction to Panchayats over subjects of local importance. • Section-4(m) provides that Panchayats shall have jurisdiction over “minor forest produce”. • “Reserve forest” (RF) and “protected forests” (PF) notified under Indian Forest Act, 1927 are not in jurisdiction of Panchayats. But PRIs claiming jurisdiction over RF and PF. • Jila Panchayats and Janpad Panchayats are not having jurisdiction over RF and PF. • The 73rd Constitution Amendment provides jurisdiction of Panchayats over - A. social forestry and farm forestry. B. Minor Forest Produce (MFP). Issues related to Panchayatiraj Extension to (Scheduled Areas) Act, 1996.
• All statutory clearances (forest & environment clearances) shall be obtained before inviting tender; it will ensure trouble free operation of lease mechanism. • No time lag in lease operation. • Diversion of forest land shall not be allowed in contravention of Section-2(ii) of Forest (Conservation) Act, 1980. • Land use cannot be changed under any circumstances. • The lessee is required to maintain 3% area for wildlife and another 3% for biodiversity conservation. • Low height plantations under conductors of transmission lines. Canal side side plantations would be permitted. Model -1 for forests land leasing (contd.)
• The lease area shall continue to be governed under Indian Forest Act, 1927; Wildlife (Protection) Act, 1972 and Forest (Conservation) Act, 1980. • The State Government shall reserve the right to sanction / allow diversion / fragmentation of lease area in certain site specific, infra-structure projects. For such eventualities specific clause shall be inserted in the contract with suitable compensation mechanism. • At the conclusion of lease, the lessee shall be allowed to harvest 66% forest crop in all girth classes and balance 34% shall be left intact (uniformly spread over landscape). Up-rooting of stumps not allowed under any circumstances. Model -1 for forests land leasing (contd.)
• Certain areas may be allowed to be developed for wilderness / eco-tourism with very stringent conditions / riders. • Would be our endeavor to obtain concessions under Stamp Duty Act for documentation purposes. • The State Government may like to retain “Carbon Sequestration Rights” (CSR) for the lease area. • The project proponent shall be under statutory obligation to carry-out “corporate social responsibility” operations as provided in Schedule- VII of the Companies Act, 2013. Model -1 for forests land leasing (contd.)
A Forest Management Plan should be included as an annexure to the “forest land leasing” contract. The template can be developed for a “Forest Management Plan” to provide guidance on the planning and operational issues to be considered for any forest sequestration project. The basic template provided in the National Working Plan Code can be used for this purpose and in the “Report on Planning Forest Sinks Projects”. Scope of Forest Management Plan in Contractual Framework
Public – Private – Partnership for Development of Degraded Forest Areas
• The section-2(ii) also applies in the matter. • The “Explanation” under Section-2 provides that “cultivation of oil seeds is non-forest activity”. If these 2 stipulations are complied with, biofuel / cultivation of any other species is permitted as under: A. No species can occupy more than 49% of area. B. The species should be native and part of overall afforestation programme. Afforestation Module can be designed to satisfy these stipulations without causing contraventions of Forest (Conservation) Act, 1980
Scope of Contract for Forest Land Leasing • Recitals & Definitions • Interpretation • Term of agreement • Sale / payment arrangements • Establishment and management of vegetation – rotation, felling cycle etc. • Contract Framework for Public – Private – Partnership the State Government may retain CSR in its favour to be traded under CCX / Voluntary Carbon Scheme / Bali Action Plan.
• Project boundaries. • Harvesting – species, rotation, felling cycle, coupe control forms to be maintained etc • Carbon accounting. • Rights and Obligations. • Investors. • Assignment / transfer. • Dealings with the Land Registration. • State legislation (MPLRC) may provides for the Lease Agreement to be registered on title at the applicable Revenue / Settlement Office. • Mechanism for inventory monitoring.
• Common Contract Clauses • Warranties • Costs and stamp duty • Goods and services tax • Notices • Amendment • Waiver of rights • Delay • Partial exercise • Waiver • Severing provisions
• MPRVVN having 3,80,000ha. Of forest land, carrying-out Teak and Bamboo plantations. Treating 11,000ha. per annum and this rate can be doubled to 22,000 to 25,000ha. without much problem; financial mobilisation is possible. • The under-storey of these plantations can be developed by Bamboo plantation for supply of raw material to plantation industry. • Bipartite agreement can be entered after the proposal has been approved by the Board of Directors and the Government of M.P. Model - 2 for forests land leasing – Bipartite agreement for supply of raw material
Achieved MAI of 6.00 cmt/ha./annum in past 40 years
• The prior approval from the Ministry of Environment & Forests under Forest (Conservation) Act, 1980 is not required. Sanction of Working Plan deviation would be mandatory; MPSFDC would obtain sanction. • No issues related to Forest Rights Act, 2007, Nistar supply, illicit felling etc. • MPSFDC can demarcate hinterland for supply of raw material. • Prior investment would be required from the investor in this Model-2. The highest bidder can become entitle for supply of raw material @ specified rate plus taxes. Model - 2 for forests land leasing (contd.)Model - 2 for forests land leasing – Bipartite agreement for supply of raw material
Financial Benefits of leasing operations • At present these “degraded forest lands” are not generating “income” rather proving financial, scenic and aesthetic liabilities. • The “Public – Private – Partnership” for degraded forest land leasing shall earn “premium” at the time of signing of agreement to the State Government. The PPP shall attract “bhu-bhatak” (lease rent) every year. • Raw material to industry, import substitution. • The assignment shall attract investment and generate employment. • Great boost to dairy development. • Enhanced ecological stability.
Forest Finance Corporation
Forest Finance Corporation • Special Purpose Vehicles (SPV) has been designed by the Government to boost particular sectors – IRCON, IDBI, PFC, PTC etc. Desired results have delivered by these SPVs. • SPV is a must due to these reasons – A. Long gestation period of 30 years or more. B. Long and uncertain break-even point. C. Low IRR may be of 12-13% only. D. Mostly projects are not bankable due to low IRR. • Silvicultural tools – growth data, yield table are not available. • Market Research and trends of macro-economic demands and supply are not available for future projections.
Purpose of Investments • Finance to Lokvaniki farmers, project proponents of plantation industry for extension in non-forest areas. Establishing bundle & sub- bundle project(s) including bamboo and horticulture projects. • Finance to FDAs and JFMCs on loan basis. Loan for forest management for generating tangible economic profits for “debt servicing”. At present JFMCs are not legal entities, nobody would enter into contract with them, make legal bodies (can sue others and sued in turn with civil and criminal liabilities).
Forest Finance Corporation
Forest Finance Corporation – Raising Share Capital • Incorporate “Forest Finance Corporation” to augment long term fiscal resources for forest financing. • Authorised capital Rs. 8000 to 10000 crores. • The CAMPA is having Funds of Rs. 60,000Cr. About Rs. 11,000Cr. Is untied fund and can be mobilised for the purpose of SPV. Share capital can be raised from NPV available with CAMPA. • Venture Funds may be invited through FIPB at low interest rates.
Raising Debt Capital • Accord status of “plantations” as “industry”. • Can raise cheap capital by issuing ‘capital gains bonds’ under Section-54EA, 54EB and 54EC of Income Tax Act, 1961. (RBI and Ministry of Finance approval mandatory). Rate of interest 6.5% only. • Explore possibilities of raising ‘social venture funds’ (with approval of SEBI and FIPB). • Soil conservation works may be treated as “capital losses” under Income Tax Act, 1961. Indexing of soil conservation works is possible for assessment purposes. • FFC may be made subsidiary of MPSFDC and allowed to raise “debt capital” by issuing capital gain bonds / “secured bonds / debentures”.
Climate Change Impacts on Forests of Madhya Pradesh

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Climate Change Impacts on Forests of Madhya Pradesh

  • 1. Welcome to the presentation on “Climate Change Impacts on Forests of Madhya Pradesh” Ravindra Nath Saxena Former Principal Chief Conservator of Forests, Former Managing Director Madhya Pradesh Forest Development Corporation, Bhopal by
  • 2.
  • 3. OVERVIEW OF THE PRESENTATION • Status of environment & forests in India. • Climate Changes and impact on humans. • International conventions and Constitutional provisions. • UNFCCC, Kyoto Protocol (KP) . • Afforestation & Reforestation Projects (A & R). • Carbon Trading (CT). • Carbon Trading potential of Madhya Pradesh • Future Planning in Madhya Pradesh. • Tree transplanting techniques. • Career planning for youngsters
  • 4. Anthropo-centrism and contempo-centrism • Country has never been subjected to “ecological audit”. The country may be registering economic growth rate of 4 to 7%, but unofficial estimates provide that in ecological terms our growth rate is about (-)4%. • National Forestry Action Plan accepts that “forestry” contributes about 5-6% to economic GDP, while resource allocation is meager less than 0.1%. Even whatever meager is allotted is being diverted for non- forest purposes. Forest resource has been divested @ 6% p.a. ATTRIBUTES OF ENVIRONMENT & FORESTRY MANAGEMENT IN THE WORLD
  • 5.
  • 6. Title Body text Evidence from satellites of thinning of the Ozone layer led to the Montreal Protocol for reducing CFC’s. Montreal Protocol
  • 7. Title Body text Ozone Depletion Growth of the Antarctic ozone hole over 20 years, as observed by the satellite Darkest blue areas represent regions of maximum ozone depletion.
  • 8. Title Body text Earth’s Shrinking Biosphere 1900-2000 AD Currently, the Earth is the only home we have. With each new person added to our growing population, the amount of our living space decreases. Land Area hectare per / capita INDIA Per capita agricultural area - 0.60 Ha. Per capita forest area - 0.04 Ha.
  • 9. Title Body text Transboundary: Dust over the Pacific Images taken between April 29 and May 5, 2005 shows dust from the Gobi Desert crossing the Pacific, well on its way to North America.
  • 10. Title Body text Gangotri Glacier, Northern India • Receding since 1780 • Last 25 years, Gangotri Glacier has retreated more than 850 m (2 788 ft)
  • 11. The Earth Mankind Inherited
  • 12. The Earth Mankind Inherited
  • 13. The Earth Mankind Inherited
  • 14. The Earth Mankind Inherited
  • 16. Most threatened wildlife species - II
  • 17. Most threatened floral species - I
  • 18. Bhopal Gas Leak Disaster, 1984 Worst of Environmental Accidents – Must Learn from the Disaster
  • 19. Other Mega disasters are – Chernobyl (Russia) & Fukushima (Japan) The Public Liability Insurance Act, 1991 and Public Liability Insurance Rules, 1991 are still not implemented in “essence & spirit”
  • 20. The Present Day Scenario
  • 21.
  • 22.
  • 23. WATER SEEMS GLOBALLY ABUNDANT - AND EVEN IN EXCESS ? .
  • 24. SAVE & RECYCLE • Reduce your needs. • Reuse or Recycle as much water as you can. • Recycle as many items as you can. • Recycling saves resources and energy used for producing new items and at the same time saves water used in their production. • Harvest and conserve water. • Do not pollute water.
  • 25. GREEN HOUSE GAS EFFECT The GHG effect is the rise in temperature that the Earth experiences because certain gases in the atmosphere (water vapor, carbon dioxide, nitrous oxide, and methane, for example) trap energy from the sun. Without these gases, heat would escape back into space and Earth’s average temperature would be about 60ºF colder. Because of warming effect on the world, these gases are referred to as greenhouse gases. The greenhouse effect is important. Without the greenhouse effect, the Earth would not be warm enough for humans to live. But if the greenhouse effect becomes stronger, it could make the Earth warmer than usual. Even a little extra warming may cause problems for humans, plants, and animals.
  • 26. The Green House Effect
  • 27. GHG Effect is like a car parked in the shining Sun
  • 28. Phenomenon of Green House Gas Effect • Green House Effect - The effect produced by GHGs allow incoming solar radiation to pass through the Earth's atmosphere, but prevent most of the outgoing infrared radiation from the surface and atmosphere from escaping into outer space. • Green House Gases - Any gas that absorbs infra- red radiation in the atmosphere. GHGs include water vapor, carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), halogenated fluorocarbons (HCFCs) , ozone (O3), perfluorinated carbons (PFCs), and hydrofluorocarbons (HFCs), Sulphur hexafluoride (SF6) and Sulphur hexachloride (SF6).
  • 29. Ozone Depletion in Stratosphere • CFCs can survive up to 8 yeas and slowly drift to stratosphere. • CFCs are destroyed by UV radiations and chlorine is released as free radicals. These free radicals are capable of destroying up to 1,00,000 Ozone molecules in chain reactions: UV radiation CFCl3 CFCl2 Cl (free chlorine radical) Cl + O3 (Ozone) O2 + CLO (Chlorine monoxide) CLO Cl (free chlorine radical) + O O2 + O O3 + Cl ClO + O2
  • 30. GASES RESPONSIBLE FOR GREEN HOUSE EFFECT Gases covered under Kyoto Protocol: A. Carbon di-oxide – CO2 B. Methane - Ch4 C. Nitrous oxide - N2O D. Hydrofluorocarbons – HFCs E. Perfluorocarbons - PFCs F. Sulphur hexafluoride - SF6
  • 36. Indicators of Human Influence
  • 37. fxj;Lrs ioZr% fgeoUrks vj.;e~ rs i`fFkoh L;ksueLrq vFkZoosn O Mother Earth! May your Mountains be show-clad and your forests enchanting for our prosperity! Atharrva Veda
  • 38.
  • 39.
  • 40. Objective of the Exercise • To promote ecological stability in forest deficient districts, no funds for climate change Mitigation Planning, • To mobilise adequate financial resources for developing forestry plantations on degraded forest areas through Public – Private – Partnership, development of CDM & REDD+, Ecotourism sectors. • To promote employment generation by unlocking potential of degraded forest land. Despite availability of 2,88,000 sq.kms. degraded forest land, India Inc. is being forced to move out to Indonesia, Malaysia, Ethiopia, Congo, Ghana, Bolivia, Argentina and Peru etc. Reverse this flight of capital & generate resource.
  • 42. Soil Types of India
  • 43. Forest Cover of India* Diversion of about 300 sq.kms. forest areas (0.04%) in next 20 years can solve the energy problems of the country. Most of these coal blocks are situated in different micro & milli-watersheds – consequently it would not cause great ecological problems. Coal Blocks are site specific projects and should get priority (S.F.R., 2015 of Forest Survey of India) Sites with high potential for Hydel Power Projects Also high vulnerability to Schedule-VI areas, tribal communities, FRA, Ecologically Fragile Zones
  • 44. FORESTS AT A GLANCE • Geographical area – 32,87,263 sq. kms. • Forest area – 7,57,740 sq. kms. • Forest cover – 6,78,333 sq. kms. – the eco-resource for livlihood. • Legal status of forest area – A. Reserve Forests (RF) – 3,99,919 sq. kms. B. Protected Forests (PF) – 2,38,434 sq. kms. C. Un-classed forests – 1,36,387 • Un-culturable non-forest areas – 2,11,286 sq. kms. • Growing Stock – 4740.858 million cubic meter • Growing Stock / ha. – 74.42 cubic meter • Current Annual Increment – 8.76 million cubic meter • Current C.A.I. - 0.69 cubic meter / ha. • Potential CAI possible - 3.60 cubic meter / ha. (Peterson’s formula) • Simpson’s Biodiversity Index, Berger-Parker Species Richness Index, Shannon Weiner Biodiversity Index not provide promising picture. • Forest cover stagnant with cyclical change, qualitative deterioration of ecological resources due to scarcity of finances.
  • 45. Spatial patterns of the changes in annual mean surface air temperature [2071-2100 (baseline 1961-1990 : A-2 scenario)
  • 46. Spatial patters of the changes in summer monsoon rainfall 2071-2100 (baseline 1961-1990 : A-2 scenario
  • 47. CHANGES IN ANNUAL NUMBER OF RAINY DAYS (A-2 scenario)
  • 48. Impact of Climate Change on Forest Biomes Distribution of Forest Biomes in 1975 Projected distribution of Forest Biomes in 2085
  • 49. Forestry & Climate Change • Wet savannas are converting into dry savannas . • Tropical seasonal forests being degraded into xeric woodlands. • There would be no wet savanna and tropical seasonal forests after 2070 to 2100 A.D. • Acute shortage of water, forest cover and forest produce envisaged afetr 2020. • Sharpe decline in minor forest produce and biodiversity – shall prove detrimental for tribal communities due to absence of employment.
  • 50. Red indicates that a change in vegetation is projected at that grid in the time-period of 2021-2050 and 2071-2100 (under A1B scenario). Green indicates that no change in vegetation is projected by that period. Climate Change and Forests Vegetational changes projected by 2021-2050 and 2071-2100 Based on computer simulation models of National Remote Sensing Agency & ICFRE
  • 51. Biodiversity Vulnerable Grids of India (marked red) in the A1B scenario – for India - 2035 and 2085 Climate Change and Biodiversity Vegetational changes projected by 2021-2050 and 2071-2100
  • 52. PROJECTED IMPACT OF CLIMATE CHANGE ON FORESTED GRIDS IN INDIA A2 SCENARIO Source: Chaturvedi et al., 2011 39% of the forest grids likely change under A2 scenario by 2085 causing loss of Carbon stock and biodiversity 1 = stable grids 2=forest grids undergoing change
  • 53. Forest type distribution and extent simulated by IBIS for the baseline case and A1B (2035 and 2085) scenarios. (VT – refers to Vegetation Types. The numbers refer to the following vegetation types 1: Tropical evergreen forest / woodland, 2: Tropical deciduous forest / woodland, 3. Temperate evergreen broadleaf forest / woodland, 4: Temperate evergreen conifer forest / woodland, 5: Temperate deciduous forest / woodland, 6: Boreal evergreen forest / woodland, 7: boreal deciduous forest / woodland, 8: mixed forest / woodland, 9: Savanna, 10: Grassland/ steppe, 11: Dense shrubland, 12: Open shrubland, 13: Tundra, 14: Desert, 15. Polar desert / rock / ice)
  • 54. NPP distribution (kgC/m2/year) simulated by IBIS for baseline and A1B scenarios Impact of CC on Net Primary Productivity (NPP) Current NPP – 835 g C/m3 A2 GHG scenario – doubling of NPP predicted B2 GHG scenario - 73% NPP increase predicted NPP Increase in all the forest grids projected due to CO2 fertilisation effect
  • 55. CONSTITUTIONAL PROVISIONS RELATED TO FOREST & WILDLIFE At the time of promulgation of the Constitution of India, subject of “forests” was kept in the State List. “Forests” transferred to the “Concurrent List”, List- III as Entry–17A and ‘Wildlife’ inserted as Entry- 17B by the 42nd Constitution Amendment Act, 1976. Article-251 & 254 of the Constitution provides that state statutes cannot be repugnant to Central Acts. If there is any repugnancy, it automatically becomes “null & void”. Prior approval of Govt. of India is essential for operation
  • 56. At the time of promulgation of the Constitution of India, subject of “forests” was kept in the “State List”. There was no entry of “wildlife”. “Forests” transferred to the “Concurrent List”, List-III as Entry–17A and “Wildlife” as the Entry-17B by the 42nd Constitutional Amendment Act, 1976. Article-251 & 254 of the Constitution provides that state statutes cannot be repugnant to Central Acts. If there is any repugnancy, state statutes automatically becomes “null & void”. Constitutional provisions related to “forest” & “wildlife” All forest & wildlife statutes - FCA, WLPA, IFA, PESA, STOFDRFRAct are Central Acts. The statutory reforms are in jurisdiction of the Parliament. Statutory reforms virtually impossible in near future.
  • 58. India is signatory of large number of international conventions India is signatory of 31 international conventions: • Basel Convention; • Center for International Forestry Research (CIFOR); • Commission on Sustainable Development (CSD); • Committee on Forestry (COFO); • Convention on Biological Diversity (CBD); • Convention on Migratory Species (CMS) • Convention on International Trade of Endangered Species of Fauna and Flora (CITES); • Convention to Combat Desertification (CCD); • Crane Convention;
  • 59. • Food and Agriculture Organisation (FAO); • Global Forest Resources Assessment; • Global Legislators Organization for a Balanced Environment (GLOBE); • Inter Agency Task Force on Forests (ITFF); • Inter-governmental Panel on Climate Changes (IPCC); • Inter-governmental Forum on Forests (IFF); • International Tropical Timber Agreement, 1994 (ITTA, 1994) • Montreal Protocol; • Organisation for Economic Co-operation and Development; • Ramsar Convention, 1971; • Special Session of the General Assembly to Review and Appraise the Implementation of Agenda-21 (UNGASS)]; • UNCHE;
  • 60. • United Nations Commission on Sustainable Development (UNCSD); • United Nations Conference on Environment & Development; • United Nations Development Programme (UNDP); • United Nations Economic and Social Council (ECOSOC); • United Nations Environment Programme (UNEP); • United Nations Framework Convention on Climate Change; • United Nations Forum on Forests; • Vienna Convention on the Protection of the Ozone Layer, • Word Conservation Union; • World Heritage Convention;
  • 61. Article-253 of the Constitution provides that, all the international conventions, protocols and treatises are implementable in the country.
  • 62. PRECARIONS CONDITION OF INFRASTRUCTURE DEVELOPMENT UNDER THE CONSTITUTION OF INDIA (SCHEDULE – VIII) Environment & Residuary Power Entries–6,24,27,53, 54 & 97 Union List, List-I SPCB’S/PCC’S Under State Government Mines & Mineral Development Entry – 54, List-I, Union List Entry – 50, List – II State List Forest & Wildlife, Land Entries – 17 A, 17B Concurrent List List – III Entry – 18 State List, List-II Articles – 245 to 254 deal with Union-State relations. Sometimes Statutes have overlapping jurisdictions; rarely repugnant also. Constitutional amendments shall take very long time. Thus efficiency and attitude of civil services are the key words for success.
  • 63. NATIONAL FOREST POLICY, 1988 • Previous Forest Policies were enunciated in 1894 & 1952. • Salient features of National Forest Policy, 1988. – Principal aim - ensuring environmental stability and maintenance of ecological balance. – Emphasis on afforestation, social forestry and farm forestry (extension in non-forest areas). – Involve local communities in forest protection. – Enhance investment and other resources for forestry. Chink.jpg
  • 64. Principal forest and wildlife statutes • Indian Forest Act, 1927 (RF and PF cannot be used for carbon trading purposes). • Wildlife (Protection) Act, 1972 (prohibitory in nature, plantations / forest crop cannot be harvested in protected areas of the country). • Forest (Conservation) Act, 1980 (regulate allocation of forest areas to private entities). These forest statutes are silent about “carbon trading”. Thus to facilitate carbon trading in the country, a statute may be having title “Indian Carbon Sequestration & Trading Act” should be enacted in near future. Indian Contract Act is unable to take care of this complicated issue.
  • 65. Statutory provision for Environment, Forest and Wildlife Clearances • Environment Impact Assessment Notification, 2006 [under Environment (Protection) Act, 1986]. • Section-2(ii), Forest (Conservation) Act, 1980. • Section-38O(g), Wildlife (Protection) Act, 1972 – NPV is 10 times in national parks and 5 times in wildlife sanctuaries; can seriously upset cost:benefit ratio. Other statutory provisions, having high impact on project planning  Panchayati-raj Extension to Scheduled Areas Act, 1996.  Scheduled Tribe & Other Forest Dwellers (Recognition of Forest Rights) Act, 2006  Governance and administration of Scheduled-V and VI areas, notified under the Constitution of India.  Issues of Land Acquisition Act.
  • 66.  The Act promote exploitation of biodiversity in regulated manner and not prohibitory or conservation oriented in nature.  Recently Forest Department personnel has been assigned power to take cognizance in the Act (recently Range Officer is authorised to take cognizance), though 99% faunal and floral diversity is found in forest areas only. Biological Diversity Act, 2002
  • 67. BIODIVERSITY SECTOR With over 45,000 plant species, 81,000 animal species, India is one of the world's 12 mega- biodiversity centers. The ethos of conservation is ingrained in India's cultural heritage, developmental activities are increasingly threatening this rich biodiversity. Approximately 20 wildlife species are categorized as "possibly extinct" 1,500 plant species are considered vulnerable and endangered, and some breeds have suffered genetic erosion. Enunciate Biodiversity (Conservation) Policy. Panchayati Raj Extension to Scheduled Areas Act, 1996 or PESA (73rd Constitution Amendment) is not having overriding effect on IFA or WLPA.
  • 69.
  • 70.
  • 71.
  • 72. Mangrove Forests – Highly Threatened
  • 73.
  • 74. Degradation & opening of Sal forests  Sal forests are now open, crown density reduced to 0.4 or less, degraded, suffering from soil erosion.  Absence of regeneration, no seedlings or saplings.  Sal crop is only consisting of pre-selection girth classes. Death of Sal forests is certain after achieving senescence.  Virtually no control over grazing. No Class-I Protected Area in the administration.
  • 75. Soil erosion in Sal forests  Due to senescence in Sal crop, it is desirable to promote associate species.  Conserve Sal seed by rotational closure or collection or blanket ban to promote regeneration.  Demarcate & monitor “Sal Borer Plots” for disease surveillance. Sporadic attack still continuing.
  • 76.  Coppice composition in the canopy cannot be assessed. However 2 new interpretation techniques have been developed: A. Natural Vegetation Differential Index (NVDI). B. Leaf Area Index (LAI) But certainly conclusion cannot be inferred whether these 2 canopy assessment techniques have been used in satellite maps of FSI.  Site Quality Assessment could not be possible earlier. Recently LIDAR (Laser Detection And Range) has been developed for height assessment. Sensitive height assessment tool i.e. can measure 10 cms changes. But IRS-C data is not having compatibility with LIDAR. Serious drawback as canopy height from the ground is concerned.
  • 77. Analysis of Crop Assessment
  • 78. Analysis of Crop Assessment – Phoenix Infestation  Large scale crop dried and died after Phoenix sylvestris infestation in Nagri & Sihawa (Dhamtari district, CG) and Narharpur, Keskal, Korar, Pharasgaon Ranges (Kanker & Kondagaon district, CG) in 1980s.  Sal Regeneration absent except Kanha National Park, MP.  “Sal seed collection”, huge threat to Sal regeneration.  Critically small “germination period” of 7 days. Monsoon is shifting to July and August. Genetic incompatibility.
  • 79. Phoenix sylvestris and P. acualis infestation in Sal
  • 80.
  • 81.
  • 82. Invasive species in Sal forests, CG - 1  Invasive species of Opuntia and Cactaii observed in Korba and Surguja districts of C.G. These species were not found about 30 years ago.  These invasive species signify drying of Sal forests.  Serious “genetic erosion” observed in Sal crop.
  • 83. 83
  • 84. Effect of opening of canopy in Sal forest Encroachments are opening canopy in Sal forest, leading to drying of forest floor and consequently invasion by invasive species – making Sal seed germination and regeneration impossible.
  • 85. Invasive species in Sal forests, M.P. Calotropis procera, C. gigantia, Argemone maxicana, one more species of Argemone genus observed recently.
  • 86. Invasive species in Sal forests, M.P.  Invasive species of Ocimum grandisimum (new invasive species) observed in Mandla, Dindori, Shahdol and Umaria districts. These species were not present about 30 years ago.  Signifying drying of Sal forests. Solidification of forest floor and baking due to recurrent forest forest fires biggest hurdle in Sal seed germination & regeneration
  • 89. Underground Mining versus Opencast Mining All “assessment committees” are pressuring project proponents not to undertake opencast mining in diversion area. Compartment RF 830, Beat Karkatti Compartment RF 825, Beat Sironcha
  • 90. Trees and other vegetation are drying & dying within 10 years of underground mining – study may be carried-out to establish truth. Compartment RF 825, Beat Sironcha Compartment RF 830, Beat Karkatti Leave this technical matter on the wisdom of MOC, MOM and State MRD for appropriate decision
  • 91. Assessing Stem Condition in Timber Depot
  • 92. Assessing Stem Condition in Timber Depot
  • 93. Teak logs exhibiting signs of senescence and fire damage
  • 94. Teak logs exhibiting signs of senescence and fire damage
  • 95. Impact of Sal Borer & consequent heavy mortality in crop - 1 Caused by larvae of Haplocerambyx spinicornis, Order Coleoptera. Insecticide or fumigation not possible since infestation is caused in Monsoon.
  • 96. Impact of Sal Borer & consequent heavy mortality in crop Promote “Biological Control” or increase proportion of associate species to reduce vulnerability of “Pure Sal” crop. Root cause of Sal Borere attack – Removal of associate species of Sal and consequent creation of monolith Sal stands, poluculture Sal less susceptible to Sal Borer attack.
  • 97. Sal Regeneration Technique to be adopted on Technically reclaimed sites and degarded sites • Protection against biotic interference. • Deep soil working upto 45 cms depth. • Collection of winged Sal seed and direct sowing of five kilogram seeds per ha. • Monitoring of germination of Sal seeds and maintaining soil moisture regime if monsoon is delayed. The soil moisture regime shall be maintained with the use of geo-textiles, if required. • Humus enrichment by farm yard manure / sewage sludge. • Standardise Sal Nursery and plantation technique for wide spread application.
  • 98. Assisted Sal Regeneration Forest School, Distt. Jagdalpur, Chhattisgarh
  • 99. Assisted Sal Regeneration Site Ambikapur Nursury, Distt. Surguja, Chhattisgarh. Sal Crop raised in 1984-85
  • 100. Sal Plantation Rajgamar Plantation, CG Forest Department, Korba Range, Korba Division, Chhattisgarh Chotia Mine, Prakash Industries Hasdeo- Arand Coalfield, Distt. Korba, Chhattisgarh Urgently develop “techniques for Sal plantations”
  • 101. Typical Teak forests in the country Site quality degrading very fast, soil fertility going down, depleting moisture regime
  • 102. Typical Teak forests in the country  Economic value fast declining.  Re-assess site quality of these Teak forests.  Root-Shoot planting technique is required to be replaced by Pre-sprout or poly-pot.  No reduction in “selection girth” below 120cms gbh
  • 103. Effect of repetitive coppicing in Teak crop Stump vigor seriously declined due to repetitive coppicing
  • 104. Effect of repetitive coppicing in Teak crop
  • 105. Serious Phoenix sylvestris infestation in Teak plantations in Mixed forests
  • 106. Serious attack of Teak Powdery Mildew on Teak Crop
  • 107. Serious attack of Teak Leaf Skeltonizer and Teak Leaf Defoliator in Teak crop
  • 108. Serious attack of Teak Leaf Skeltonizer and Teak Leaf Defoliator in Teak crop
  • 109. Gall formation and un-sustainable resin exploitation in associate species Sterculia urens Boswellia serrata Butea monosperma
  • 110. Issues of wildlife and Wildlife (Protection) Act, 1972 Denotification virtually impossible (HSC order dated 13th November, 2000 National Parks – 85 Wildlife Sanctuaries - 445 Community Reserve - 2 Tiger Reserves - 38 Elephant Reserves – 64 Total Area – 155348.88 sq.kms App. 4.64% of terrestrial area
  • 111. Present & Potential “Protected Areas” of India
  • 112. PROTECTED AREAS & WILDLIFE (PROTECTION) ACT, 1972 Salient features • Geographical area (including forest area) under PA network – 1,55,348 sq. kms. • New PAs are not being notified. Impact of Wildlife (Protection) Act, 1972 • Rights cannot be acquired or traded u/s 20, WLPA. • Most of RF is part of protected areas. • Exploitation not possible under Section-29, WLPA. • Ban on exploitation & diversion of protected areas under orders of the Hon’ble Supreme Court. The habitats of protected areas cannot be used for ‘mining purposes” due to prohibitory legal regime. Even non- forest area of protected areas cannot be used (Tahir Ali ver. State of Madhya Pradseh
  • 113. Typical forest & village mosaic of a protected area All non-forest areas situated within external boundary of protected areas are part of inviolate wildlife habitat. Gopal Das Mittal ver. State of Madhya Pradesh
  • 114. Effect of fragmentation of forest & wildlife habitat corridor
  • 115. APPLICABILITY OF WLPA Protected areas FOREST DEPARTMENT • National Parks, • Wildlife Sanctuaries, • Conservation Reserve • Community Reserve. Species specified in Schedule-I, II, III, IV & VI having jurisdiction over 6800 species (based on the Storer & Usinger Classification Specified Species Specified international conventions
  • 116. Contraction of Asian Elephant Range Over-time
  • 117. 0 FOREST COVER OF CENTRAL INDIA
  • 118. Forest Cover Map of Madhya Pradesh
  • 119. Bio-richness Index of Madhya Pradesh
  • 120. Critical Ground Water Depleting Regions of Madhya Pradesh
  • 121.
  • 122.
  • 123.
  • 124.
  • 125.
  • 126.
  • 127.
  • 128.
  • 129.
  • 130. Achieved MAI of 6.00 cmt./ha. / annum in past 40 years
  • 131. Landscape Atalas of Madhya Pradesh
  • 132. Problems faced by forest financing sector • No effect of injunction issued by MRTPC. • Collapse of green plantation companies in 1980s and 1990s. • Fraud and mis-appropriation in “non- banking financial corporations’ (NBFCs) in past 2 decades – RBI black-listed 592 companies. • Investors don’t have faith in such financial mechanism – as a consequence mobilising finance virtually impossible.
  • 133. Resource Allocation in Five Year Plans
  • 134. Contribution of forest resources to G.D.P. • The Xth Five Year Plan formulated by the Planning Commission of India accepts that the “forestry sector” contributes 2.37% to economic GDP of the country. • The budget allocation to “forestry sector” varies from 0.039% to 1.130% only. Massive outflow observed even in this allocation to “non-forest” purposes. • The forest areas cannot remain aloof from financial mechanism, GDP growth rate should be 10-12%. • Budget resources are drying-up for forestry sector. Forest have been dis-invested @ 2.16%. The trend has to be reversed for survival of forest resources.
  • 135. Causes of failure of Carbon Market • The scrips of CER, VER, REDD+ & REDD++ are not commoditized under the Companies Act, 1957. No investor is interested in unsecured securities. • CER not secured in land records. • Risk of “carbon leakages” (PF burdened with Nistar privileges) – no insurance cover available. • No digital trading platform available like NSE, BSE, MCX et. • No Securities Exchange Board of India Ac, 2005 type Carbon Trading Act. No SEBI type Market Regulator. • No depository like NSEL, CDSL etc. • No Carbon Mutual Funds for small farmers.
  • 136. Statutory provision for Environment, Forest and Wildlife Clearances • Environment Impact Assessment Notification, 2006 [under Environment (Protection) Act, 1986]. • Section-2(ii), Forest (Conservation) Act, 1980. • Section-38O(g), Wildlife (Protection) Act, 1972 – NPV is 10 times in national parks and 5 times in wildlife sanctuaries; can seriously upset cost:benefit ratio. Other statutory provisions, having high impact on project planning  Panchayati-raj Extension to Scheduled Areas Act, 1996.  Scheduled Tribe & Other Forest Dwellers (Recognition of Forest Rights) Act, 2006  Governance and administration of Scheduled-V and VI areas, notified under the Constitution of India.  Issues of Land Acquisition Act.
  • 137. Issues related to Scheduled Tribe & Other Traditional Forest Dweller (Recognition of Forest Right) Act, 2006
  • 138. • STOTFD(RFR) Act, 2006 enacted and became operational on 1st January, 2007. • Jurisdiction over all types of forest areas – RF, PF, revenue forests, village forests, dictionary meaning of forests etc. • Two types of rights can be claimed: A. Individuals can claim upto 4.00ha per person. B. Community can claim any area (without limit). • Open ended Act. Claims can be put-up any time. • Forest areas not to be de-notified i.e. both STOTFD(RFR) Act, 2006 and Forest (Conservation) Act, 1980 shall apply. • No involuntary eviction / settlement – huge cost shall be involved. • Linear projects e.g. roads, transmission line, skyline crane, conveyor belts, pipelines etc. shall be almost impossible. Issues related to Scheduled Tribe & Other Traditional Forest Dweller (Recognition of Forest Right) Act, 2006
  • 139. Forest Areas Diverted under Forest Rights Act, 2007*  Individual Forest Rights – 4119650 Acres (@Rs.2.00L=82393 Cr.)  Forest crop losses - 1716520ha.X40cmt/ha.XRs.20000/cmt (not including environmental losses Rs. 13732160 Cr.  Community Forest Rights – 9985095 Acres (@Rs.1.00L=99850 Cr.)  Total Forest Area - 14104744 Acres  Total Forest Area Assigned - 5876976 Hectares  Total Forest Area Assigned - 58769.76 Square Kilometer  Percentage of forest area assigned - 8.66%  All data obtained from the “Administrative Report - 2017”, Ministry of Tribal Affairs  Total losses due to FRA assignment - 182243.00 Crores (forest land only)
  • 140.
  • 141. Ibex Roasted Alive in the Himalayas in Intense Forest Fire - 2018
  • 142.
  • 143. Issues related to Panchayatiraj Extension to (Scheduled Areas) Act, 1996.
  • 144. Background Information • India is one of the 12 mega diversity rich country. Geographical area of India is 32,87,263 sq.kms. with forest area of 7,69,538 Sq.kms. forest cover of about 23.40% • The X Fifth Year Plan accepts that forest contribute 2.37% to Gross Domestic Product (GDP). Resource allocation to forestry sector is pathetic because during various Five Year Plans, 0.03 to 0.09% resources have been allocated to Forestry Sector. Out of this resource allocation, merely 3-4% have been actually been utilized in silvicultural operations. • Require Rs. 8,64,000 Cr (Rs. 3.00 lakhs per ha., maintenance 5 years) for developing 2,88,000 sq.kms.
  • 145. According to the India State of Forest Report, 2015 of Forest Survey of India, 2,87,820 sq.km. of open degraded forest areas are available within the country.  Madhya Pradesh is alone having 36,074 Sq.km, State with huge potential. Virtually there are no issues related to “law & order”.  Maharashtra 21,095 Sq.km.,  Odissa 20,477 sq.kms,  Andhra Pradesh 19,297 sq.km.,  Chhattisgarh 16,600sq.km. etc. Offer large viable economic potential for development of plantation industry in the country.
  • 146. Limitations of Satellite Imaging in India  Species composition cannot be determined.  Forests stand composition cannot be determined – Every forest stand is having a different “Different Reflectance Signature” (Hyper Spectral Signature, 256 spectral signatures being used in USA, but not being used in India).  Mostly satellite imageries of October / November is used in India – thus seasonal and phenological occurrence is very importance because “Chlorophyll Reflectance Index” is related to – total rainfall, rainfall distribution, temperature pattern, long and intermittent rainfall season is likely to interfere in canopy density determination.
  • 147. • The 1994 inventory of GHGs for India provides a comprehensive estimate of emissions by sources and removals by sinks of carbon dioxide, methane and nitrous oxide (not controlled by the Montreal Protocol). For a transparent and comparable inventory, the revised IPCC guidelines prescribed for development of national GHG inventories have been applied. Emission coefficients in key sectors have been developed which include CO2 emission coefficients for Indian coal types, CO2 and CH4 emission coefficients for road vehicles, CH4 emission coefficients for coal mining, enteric fermentation, and rice cultivation. • In 1994, 1,228,540 Gg of CO2-eq. of anthropogenic greenhouse gases (GHGs) were emitted from India resulting in a per capita emission of about 1.3 tons. • The CO2 emissions were the largest at 793,490 Gg, i.e. 65 per cent of the total national CO2-eq emissions. • The shares of CH4 and N2O were 31% (18,082 Gg) and 4% (178 Gg), respectively. GHG Inventory of India
  • 148. • Of the total CO2-eq emissions in 1994, the largest share of 61% was contributed by energy sector, followed by the agriculture sector at 28%, industrial process at 8%, waste at 2% and Land use, Land use Change and Forestry at 1%. • Total CO2 emitted in 1994 from all the above sectors was 817,023 Gg and removal by sinks was 23,533 Gg resulting in net emission of 793,490 Gg of CO2. Carbon Sequestration rate – 3.6 tonne/ha./p.a. Kind Attention High carbon sequestration potential exist, but remains untapped & under utilised, may lead to penalties after 2017. Sector-wise GHG Contribution
  • 149. This constituted 65 per cent of the total GHG released in 1994. CO2 emissions were contributed by activities in the energy sector, industrial processes, and land use, land use change and forestry (LULUCF). The relative shares of the three sectors to the total CO2 released from the country were 85%, 13% and 2%t, respectively. The industrial process sector, which includes processes such as iron and steel manufacturing and cement production, is also a major source of CO2.
  • 150. • The current population density is 423 persons per sq.kms, per capita availability of forests (0.06ha. per person) and agricultural land (0.20ha. per person) is lowest in the developing countries and exhibiting trend of sharp decline. • Tribal communities are heavily depending upon harvesting of forest and biodiversity for life sustenance. May lead to heavy carbon leakages. This peculiar problem has led to steady decline in forest cover (refer ‘Status of Forest Reports’ of FSI and ‘State of the World’s Forests’ of FAO), the country has lost about 27,000 sq.kms. in past 17 years or so. • The picture is not promising when forest cover is analysed in the context of productivity, growing stock, site quality, bio-diversity, almost absence of trees above selection girth, rapid depletion of mesophytic species and increase of xerophytes, density, regeneration, MAI, CAI, susceptibility to biotic factors. • It is imperative for the country to evolve mechanism for reduction in emissions of GHGs and enhance carbon storage / sequestration for mitigation of global climate change; conservation of biological diversity; maintenance of hydrological cycle and soil conservation.
  • 151. • The panorama of forests ranges from evergreen tropical rain forests to dry alpine scrub, semi-evergreen rain forests, deciduous monsoon forests, thorn forests, subtropical pine forests, temperate montane forests etc. Manifold impact of provisions of Kyoto Protocol on India. • The country is heavily depending upon fossil fuel e.g. petroleum, natural gas, coal, lignite, naphtha, liquefied petroleum gas (LPG). Due to shortage of supply in international market, crude petroleum has crossed 68$ per barrel and likely to hover 90-100$ mark. • This bizarre situation may have negative impact on economy of the country and growth rate may become negative by 9-10% to 5-6% per annum depending on the policy regime & circumstances. Carbon Sequestration potential and Afforestation
  • 152. 1. The emission trading scheme (Article 17 of Protocol):  Will allow the developed countries to transfer emission credits to each other.  Country that reduces emission more than that required by their national target under Kyoto Protocol will be able to sell their excess emission credits to the countries that find it difficult to reduce their own emissions. 2. Joint Implementation (Article 6 of the Protocol):  To be implemented between two or more Annex-I countries.  Credits obtained by investing countries are offset by debits to the country hosting the project. 3. Clean Development Mechanism (Article 12, Protocol):  To promote sustainable development by encouraging investments by Government Governments and private firms in projects in projects in developing that reduce or avoid emission.  Developed countries will receive credit against their targets for emission avoided by these projects. The innovative market based mechanism of Kyoto protocol:
  • 153. Principal Mechanism of Kyoto Protocol  Clean Development Mechanism.  Joint Implementation.  Emissions Trading.
  • 154. R.E.D.D. & V.E.R. Trading – Amendments in National Working Plan Code • The National Working Plan Code (NWPC) has been notified for management of forest areas. • The basic tenet of NWPC is to manage forest resources on the basis of sustainable ‘economic rotation’. • If V.E.R. trading is considered for forest areas, the entire process of forest working plans have to be amended and revised according to “carbon rotation”.
  • 155. • The National Working Plan Code (NWPC) has been notified for management of forest areas. The basic tenet of NWPC is to manage forest resources on the basis of sustainable ‘economic rotation’. If VER / REDD / REDD+ Credit trading is considered (may be in forthcoming Mexico Conference) for forest areas, the entire process of forest working plans preparation have to be amended and revised on the lines of ‘carbon rotation’ in the ecosystem.
  • 156. Provisions of National Working Plan Code - I Paragraph – 15, 16 and 17 • Climate is an active factor in the physical environment of all living things. • Climate change and Variability are impacting forest Ecosystem processes and functioning. • Response time of forest ecosystems to disturbance ranges from a very short duration to decades and even centuries, depending on the condition of the system and the type, intensity and duration of the external stimuli. • Development of REDD+ Projects.
  • 157. Carbon Pool Stock Estimation Chapter – VI Survey and Assessment of Forest Resources:  Baseline Methodologies for timber and various bamboo species are not yet developed.  Carbon tables are not available – only volume table, Yield Tables are available.  Soil Carbon – virtually no data available, baseline assessment techniques are not available.  State Forest Departments are not having control over PF, FRA and Schedule-VI areas (notified under the Constitution of India).
  • 158. Reserve Forest (RF), Protected Forest (PF), Un- classed Forest (UF), Land use, Land use change and Forest (LULUCF) • Entire forest area is notified as RF and PF . Area of the forest under different legal classes (Reserve Forest, Protected Forest, Un-classed Forest, Village Forest etc.) along with number and date of notification for creation of reserve / protected forest is given, and mention is made of various forest settlements. • Multi-dated satellite images may be used for change analysis and preparing change matrix. • Data of non-forest areas are not available. Control of non-forest areas is not vested with State Forest Departments. • Baseline Methodologies for “carbon estimation” at Landscape level is not available. • Afforestation of 38.83 lakh hectare of degraded forest land is a great challenge
  • 159. Carbon Stock Carbon Sequestration • Details of biomass for carbon stock assessment may be given based on the forest types and land use. • Enhanced carbon sequestration through recognised and innovative silivcultural practices, eco-restoration of degraded / mined out forest lands imporved biomass productivity etc. results in improving forest health and vitality.
  • 160. Carbon Stock Estimation • The total carbon stocked in the forest is divided into different pools and the changes in carbon stocks in these carbon pools are estimated as per Good Practices Guidance (GPC) developed by Inter-governmental Panel on Climate (IPCC). • Changes in carbon stock based on inventory data may be measured using Stock-Difference method based on tier 2 tier 3 approach of IPCC guidelines. •Gaps in the information collected from state and national research organisations (ICFRE Institute) and further research needs should be explicitly highlighted.
  • 161. • Forest and Climate Change • Carbon Pool Stock Estimation • Reserve Forest (RF), Protected Forest (PF), Un-classed Forest (UF), • Land use, Land use change and Forest (LULUCF) • Carbon Stock Carbon Sequestration • Ecosystem Management Services • Carbon Stock Estimation
  • 162. What is a CER ? • A Certified Emission Reduction (CER) is the technical term for the carbon credits output of Clean Development Mechanism (CDM) Projects, Kyoto Protocol. • CDM Project should result in real, measurable and long- term benefits in terms of climate change mitigation. The reductions must also be additional to any that would have occurred without the Project. A unit of GHG reduction that has been generated and certified under the provisions of Kyoto Protocol is termed, as Certified Emission Reduction (CER) is equal to one tonne of carbon-dioxide equivalent. • CER is issued through a due diligence process carried out by the CDM Executive Board, Bonn, and tradable in international markets.
  • 163. What is a VER ? • VER stands for Voluntary Emission Reduction or Verified Emission Reduction. • The market for VERs is not currently regulated in the way that the CER market is. VERs can vary largely in their quality depending their verification process - due diligence prior to making a purchasing decision required. • High quality VERs should be developed according to the principles of the CDM or a recognised standard such as emerging the Voluntary Carbon Standard (VCS). • A VER credit will do the same as a CER credit. For instance all CER credits have individual serial numbers guaranteeing that they cannot be sold twice.
  • 164. • VER credits sold by “Carbon Accountable” are ‘pre- registration CERs’, this means that the project is being developed under the CDM, but the emission reductions are generated before the projects is registered by the Executive Board and thus cannot be claimed as CERs but are robust, real and verifiable emission reductions. • Buyers purchasing VERs from Eco-Securities customers have the comfort of the Eco-Securities VER standard which is based on a robust set of criteria, and, where possible, the requirements of the CDM and Voluntary Carbon Standard (VCS) are strictly adhered to.. • The main concepts behind these VER criteria are that emissions reductions must be real, measurable, additional, verifiable and permanent. • The possibility of VER markets shall be explored for MP CDM Project.
  • 165. MADHYA PRADESH C.D.M. AFFORESTATION & REFORESTATION PROJECT
  • 166. Carbon Sequestration Right (CSR)  The term Carbon Sequestration Right (CSR) is commonly used to describe the class of property rights, created under Union / State law, that recognize the “right of ownership to carbon sequestered in vegetation” on a particular area of land. It is not a right to a defined tonnage of CO2.  Legal nature of a CSR - The legal nature of a CSR varies and depends on specific contractual arrangements, circumstances of the land tenure, and the legislation that applies.  Currently, there is no ‘special act’ for this purpose.
  • 167. • All land based projects are complicated. Land holdings are small & scattered. • Multi-stakeholders. • Long gestation period. • Exercise of nistar rights by local communities. • CSRs are not secured in land & transferable with it. • Carbon projects are difficult to formulate. • Susceptible to carbon leakages & high risks. • People just cannot trust project promoters / financial institutions due to past experiences. Why Carbon Sequestration Projects requires special consideration ?
  • 168. A. Definitions : 1. For land use, land-use change and forestry activities under Article1 3, paragraphs 3 and 4, the following definitions shall apply: (a) “Forest” is a minimum area of land of 0.05-1.0 hectares with tree crown cover (or equivalent stocking level) of more than 10-30 per cent with trees with the potential to reach a minimum height of 2-5 meters at maturity in situ. A forest may consist either of closed forest formations where trees of various stories and undergrowth cover a high proportion of the ground or open forest. Young natural stands and all plantations which have yet to reach a crown density of 10-30 per cent or tree height of 2-5 meters are included under forest. Definitions under Marrakash Accord (COP-7) Deinition of “forest” and “non-forest areas” is quite different from the definition provided under the order dated 12th December, 1996 of the Hon'ble Supreme Court.
  • 169. Eligibility of land for A&R Project • The land should not be a part of ‘designated forest area’ notified under Indian Forest Act, 1927. • Shouldn’t be under compulsive legal regime and demonstrate ‘voluntary additionality’. • The land should be open, fallow land as on 31 December, 1989 (with evidences of satellite imageries or documents). • Community / Panchayat / Gram Sabha land is also eligible for CDM Projects.
  • 170. Forest villages and eligibility criteria • India is having approximately 4000 forest villages constituted under Rules / executive instructions. • Not eligible for CER trading since it forms a part of RF / PF notified under Indian Forest act, 1927. • CCX or VER route may be considered for this purpose. • Community land of Panchayats / Gram Sabha is also eligible for CER / VER trading.
  • 171. Areas / sectors identified for Phase-I • District-wise Sub-bundle Projects of Lokvaniki farmers of Dewas, Harda, Hoshangabad, Betul, Chhindwara, Balaghat, Jabalpur, Seoni, Mandla and Narsinghpur. • District-wise Sub-bundle Projects of plantation industry and carbon farmers of Indore, Dhar, Dewas, Jabalpur, Katni, Damoh & Sagar etc. (23 districts tentatively selected). • District-wise Sub-bundle Projects of horticulture farmers – Mango, Jackfruit, Bel, Chironji etc. Looking to the mammoth size of Madhya Pradesh, response of plantation industry and carbon farmers, it is proposed to formulate following Sub-bundle Projects:
  • 172. • District-wise Sub-bundle Projects of ‘bamboo farmers’ of Balaghat & Seoni districts (the baseline methodology is not yet fully developed). • Company-wise / mineral wise project of mining companies possessing large land holdings. • Fallow lands available with Deptt of Water Resources, Public Works Department, Rural Development, Railways and Military etc. • Biofuel plantations.
  • 173. Risks of A & R Projects • Registration risk : Dependent upon CDM Executive Board. • Baseline risk : Change in parameters of LULUCF by COP / MOP. • Performance risk : Non delivery of targets / shortfalls • Currently few CERs in the market not yet fully "commoditized" thus many CER transactions are directly linked to the specific CDM Projects. No uniform transaction structure.
  • 174. • Uncertainty about post 2008-2012 "first commitment period". • A & R crediting may be seen as risk year due to time lag before actual sequestration, long gestation period etc. • Complicated modalities and procedures, approved methodologies, registration, verification and monitoring. • High project development / implementation cost. • A & R projects are susceptible to weather conditions and natural forces. Lesson Learned Only Government can break this vicious circle with legislative powers, fiscal resources, capacity to work at landscape level and enduring risk in registration and operation
  • 175. GENERAL PRINCIPLES FOR BUNDLING Bundle Bundle is defined as: “Bringing together of several small-scale CDM project activities, to form a single CDM project activity or portfolio without the loss of distinctive characteristics of each project activity”. Project activities within a bundle can be arranged in one or more sub-bundles, with each project activities retaining it distinctive characteristics – technology / measure; location; application of baseline methodology. Sub-bundle Sub-bundle is defined - “An aggregation of project activities within a bundle having the characteristics that all project activities within a sub-bundle belong to the same type.”
  • 176. The following principles shall apply to all bundles: (a) Project activities wishing to be bundled shall indicate this when making the request for registration; (b) Once a project activity becomes part of a bundle for a project cycle stage, it shall not be de-bundled for this stage. The Project Board may consider de-bundling in exceptional situations; (c) The composition of bundles shall not change over time. General principles for bundling
  • 177. (d) All project activities in the bundle shall have the same crediting period ; (e) A form with information related to the bundle must be included in the submission. The form should cover issues such as title of the bundle, general description, project participants, locations, types and categories, estimated amount of emission reduction, crediting period and monitoring plans;
  • 178. Principles applying to bundling of small-scale project activities of the same type, same category and technology / measure: The following principles shall apply to bundling of small-scale project activities:  Project activities may use the same baseline under same conditions (elaborate details);  One DOE can validate this bundle;  A common monitoring plan can be utilized for the bundle with the submission of one monitoring report, under conditions to be specified.  All CDM project activities within the bundle should have same crediting period, i.e. the same length and same starting date of the crediting period;
  • 179.  One verification report is adequate, one issuance will be made at the same time for the same period, and a single serial number will be issued for all the project;  The sum of the size (capacity for type-I, energy saving for type-II and direct emissions of project activity for type-III) of the technology or measure utilized in the bundle should not exceed the limits for small-scale CDM project activities as set in paragraph 6(c) of the decision 17/COP.7; and  Each small-scale CDM project in the bundle should comply with the simplified modalities and procedures for small-scale CDM project activities and use an approved simplified baseline and monitoring methodology.
  • 180. Carbon purchasers Carbon pool M.P. CDM Corporation (the management and investment SPV) Carbon suppliers Carbon asset or entitlement and flow of carbon rights Carbon liability or undertaking, assigning rights to flow of carbon rights Possible external investors or underwriters residual carbon rights Pool Management  Project level carbon accounting, sequestration predictions and verification  Contracts for sale & purchase of CSR.  Insurance and risk management  Allocation of carbon rights (register and track CER, income disbursal) payments payments $$$ Regional Carbon Pools for management
  • 181. • Carbon leakages are serious problem in ‘Bundle CSR Projects’. • The land in question cannot be ‘locked for 21 or 30 years’ or the farmers may not be interested in the project. CSRs are transferable with the land. • The CSRs would be entered in ‘revenue records’ and the land would transferable with these contractual obligations. Securing Carbon Sequestration Rights against leakages
  • 182. There are four general groups of participants in pooling:  Carbon purchasers;  Carbon suppliers;  Those providing management services or inputs (such as verification of sequestered carbon); and  Potential external investors or underwriters, (who may be seeking commercial advantages / returns,). Carbon Funds pay to the carbon suppliers (land managers / owners) for undertaking carbon sequestration in return for those assigning their CSR to the pool, and thus to the beneficial owners of the pool. Funds can have contracts with various service providers for bundle management services, including a range of specific services associated with ‘producing’ or verifying the sequestered carbon pool. How carbon pooling shall work
  • 183. Risks Facing Suppliers and Purchasers of Carbon Rights Risk Mitigation for supplier Mitigation for purchasers Vegetation fails to sequester at predicted rate Participating in a carbon pool may mitigate this risk and subsequent possible liabilities, depending on the contractual obligations of the supplier to the carbon pool. Maintain a buffer for this purpose or trade 98-99% of CSR. Investing in a carbon pool as opposed to a single carbon producer will mitigate these risks and subsequent possible liabilities. Buyers should insist on a well documented and considered vegetation management plan. Natural Disaster Geographical distribution of re-vegetation sites to mitigate against destruction from natural disasters such as fire, pest attack and flood. Also, insurance coverage for such incidents. Participation in a carbon pool may mitigate some of these risks and subsequent liabilities. Investing in a portfolio of carbon sequestration projects can provide a wide geographical distribution to mitigate against destruction from natural disaster. Consider investing in a carbon pool that has these qualities in- built. Also consider insurance coverage.
  • 184. Risk Mitigation for supplier Mitigation for purchasers Measurement Integrity Apply nationally recognized method of estimating carbon sequestration. Independent verification of sequestered carbon. Independent verification of sequestered carbon Liability for carbon emission if vegetation is removed in the future (post contractual period) Will depend on the obligations of the supplier to the pool. Will depend on the obligations of the pool to the purchaser.
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  • 186. What is involved in establishing a carbon pool managing multiple benefit streams • Flexibility. • Governance and accountability arrangements. • Risk sharing and management. • Administrative costs. • Taxation issues - payments and benefits are likely be formulated on the core parameters governing land management agreements. To help organisations identify which type of pool or investment vehicle is likely to be best suited to their needs, the major forms of investment vehicles that could be used for carbon pooling (i.e. partnerships, joint ventures and unit trusts) may be assessed against five criteria:
  • 187. A. Investing in low cost emission offsets to prepare for possible emissions constraints; B. Speculation that carbon sequestration rights may lead to the grant of carbon credits in the future; C. Improving the companies ‘triple bottom line’; demonstrating good corporate citizenship; and participating in government programs that recognises carbon sink offsets, Parameters for investors decision in investment for carbon credits Companies may decide to invest in sequestered carbon for a variety of reasons, including:
  • 188. A. Project level carbon accounting, sequestration predictions and verification; B. Contracts for sale and purchase of rights to sequestered carbon; C. Insurance and risk management; D. Allocation of rights; and E. Financial and other reporting. In some cases, land managers (or chartered forester) with responsibility for large parcels of land may choose to establish a pool for only their holdings, and possibly act as their own pool manager, to improve management of risks (such as vegetation failure). A carbon accounting pool could be responsible for:
  • 189. Advantage of Carbon Bundling The advantages of pooling include: A. Achieving economies of scale, reducing management and administrative costs, which can allow broader participation; B. Allowing better management and servicing through specialization, including allowing outsourcing of carbon management functions where this is not the ‘core business’ or expertise of an organisation; and C. Providing better risk management for investors and land-holders. for both management expenses and cost savings. D. Geographical distribution act as insurance against “carbon leakages”.
  • 190. E. Additional expenses or savings will be incurred in requirements to register and track the CER and obligations of all pool participants, relative to the situation where an entity manages its own rights and obligations. F. Cost savings may arise from the economies of scale in managing carbon sequestration activities (i.e vegetation management, carbon predictions, estimates and verification) in a carbon pool structure. G. Plantation crops like Mango, Rubber, Palms, Coconut, Tea, Coffee, Pepper, Cashew etc. can also considered, participate and reap additional economic benefits.
  • 191. Types of Degraded Forest Areas in M.P. • The Land Capability Classification is governed by All India Site Quality or M.P. Site Quality. • The top site qualities of I, II, II/III are not likely to be leased due to various factors. • The site qualities of IIIa, IIIb, IVa and IVb are most suitable for plantation industry. atisfactory site quality with adequate IRR and institutional finance possible. • Site qualities of Va and Vb – extremly low productivity, fertility; tangible profit not possible. Yield & Volume Tables are available for most of the species
  • 192. Extremely degraded sites conforming to All India Site Quality Va and Vb Low Internal rate of Return (IRR) Debt servicing may be difficult
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  • 198. Effect of shelterbelt on habitation and cultivation
  • 199. Maps and satellite imageries Forest maps are vital for silviculture crop assessment and determination of Net Present Value (vital document)
  • 200. Forest Satellite Imagery – only land-use discernible, legal status cannot be ascertained “Gap Light Analyser” is available for Crown Density Determination. Th forest crop should be analysed on crown density, site quality, regeneration, Yield Table parameters, Basal Area calculation based on Wedge Prism.
  • 201. Soil Moisture Conservation & Catchment Area Treatment Plan
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  • 209. Percolation Tank - South Sagar Division
  • 210. Tank - South Sagar
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  • 213. Welcomes You M.P. Rajya Van Vikas Nigam Ltd.
  • 214.  MPRVVN at a Glance  Objects of the incorporation of MPRVVN  Pending proposals of forest area transfer  Sale of Teak root-shoot to M.P. Forest Department  Budget provision for “A & C Type” Area Treatment  Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)  Plantation area transferred to Buffer Zone of Satpuda Tiger Reserve.  Issues of Wildlife Management Overview of the Presentation for Coordination between Forest Department and MPRVVN
  • 215. MPRVVN at a Glance Date of Incorporation 24th July 1975 Status Incorporated under the Companies Act, 1956 (now Companies Act, 2013) as a PSU owned by the Government. Share Capital Authorised Share Capital Rs. 40.00 Crore Paid-up Share Capital Rs. 39.32 Crore Govt. of India Rs. 1.39 Crore (Share holding 3.53%) Govt. of M.P. Rs. 37.93 Crore (Share holding 96.47%) Total Rs. 39.32 Crore Board of Directors Max limit of Directors is 11 Accounts Status Accounts for the Financial Year 2012-13 has been adopted by share holders and have been placed before the Vidhan Sabha in March 2014 Lease Rent Rs 66.40 Crore to GoMP (for the Financial Year 2012-13) Dividend Rs. 9.24 Crore (GoI Rs. 0.33 Crore & GoMP Rs. 8.91 Crore) Transferred Area to Nigam 4.25 Lakh Ha. (retained 3,80,000ha.) Net Worth of Plantation Rs. 3500 Crore (approximately)
  • 216.  To accelerate and augment forestry production by creating plantations of • Fast growing species • Species of higher economic value • Species capable of diversified use for industrial and commercial purposes.  To bring suitable forest areas under intensive Management Practices in order to improve, enrich and enhance production, both in quantity and quality.  To undertake maintenance, preservation, protection and development of existing fauna.  To carry on business of felling, converting, dragging, hauling, marketing, processing, standardising, grading, sorting, distributing, selling and carrying out all aspects of exploitation of forest products grown, raised or otherwise found naturally. Objects of the incorporation of MPRVVN
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  • 220. POLICY REGIME & FOREST COVER • National Forest Policy, 1988 and several State Forest Policies stipulate 33% forest cover on geographical area. • Forest cover around 23% app. (including tree cover outside forest areas). Extreme problems in spatial distribution of forest cover. • High density population – 434 persons / sq. kms. • If we analyze forest cover in terms of productivity [0.69 cmt./ha./annum, world average 3.10 cmt./ha./annum], growing stock, site quality, biodiversity, almost absence of trees above selection girth, density, regeneration, MAI, CAI, susceptibility to biotic pressures, declining mesophytic species, increasing dominance of xerophytic species, rapidly drying forest area due to repeated coppicing – scenario is not promising. • Scenario is uniform through-out Asia, barring Japan & Malasia.
  • 221. Principal forest and wildlife statutes • Indian Forest Act, 1927 (RF and PF cannot be used for carbon trading purposes. • Wildlife (Protection) Act, 1972 (prohibitory in nature, plantations / forest crop cannot be harvested in protected areas of the country). • Forest (Conservation) Act, 1980 (regulates allocation of forest areas to private entities and diversions) – Forest (Conservation) Rules, 2003 are silent and Guidelines just not notified. The Section-2(iii) of Forest (Conservation) Act, 1980 provides framework for Public – Private – Partnership / forest land leasing
  • 222. Statutory Regime • Indian Forest Act, 1927 is silent on allocation of forest areas. • Wildlife (Protection) Act, 1972 (Section-20, 29, 50 & 51) is prohibitory and ban exploitation of habitat of protected areas for commercial purposes. • All State Acts are silent on the subject. • Section-2(iii), FCA provides the insight into “assignment of forest lands”. • Precedence of allocation of forest land – V.R. Thirumalaiswami Goundur v/s Chief Conservator of Forests, AIR, 1996, Kerala 213 at 218 (DB). If forest land can be assigned for “non-forest” purposes, it can be allotted for “afforestation & reforestation” purposes also.
  • 223. Level of Ignorance & Lessons The FCA has got 4 well defined jurisdictions: – Section-2(i) : De-notification of forest areas. – Section-2(ii) : Diversion of forest areas. – Section-2(iii) : Assignment of forest areas. – Section-2(iv) : Treatment of forest crop under duly sanctioned working plan The Forest (Conservation) Rules, 2003 (as amended 2004 & 2014) provides for “diversion of forest areas” and silent on other 3 jurisdictions. Security of Investment Legislative framework is a must to boost “security of investment” and “trouble free implementation”. No forest land lessee; CER, VER, CSR buyer shall come to purchase “unsecured lease rights / property”.
  • 224. Why a special / specific Act is necessary? • The Union of India can enact “Indian Carbon Sequestration & Trading Act”, under “Residuary Powers” of the Constitution (there is no other alternative). • FCA is having just 5 sections, briefest Act of the country (after Power of Attorney Act, having 4 sections). • Civil Writ Petition No. 202/95, T.N. Godavarman Thirumulkpad ver. Union of India & Others Intense litigation for past 18 years due to badly drafted statute. What will happen in the absence of statute, anybody can visualise?
  • 225. Constitutional Amendment At present there is no specific entry (except residuary powers) to empower Union or State Governments to legislate on ‘carbon trading’ or specifically ‘carbon sequestration rights’. Insert a new entry in Concurrent List, List-III, Seventh Schedule, Constitution of India to facilitate legislation, governance and administration of these matters.
  • 226. PROTECTED AREAS & WILDLIFE (PROTECTION) ACT, 1972 Salient features • Geographical area (including forest area) under PA network – 1,55,348 sq. kms. • New PAs are not being notified. Impact of Wildlife (Protection) Act, 1972 • Rights cannot be acquired or traded u/s 20, WLPA. • Most of RF is part of protected areas. • Exploitation not possible under Section-29, WLPA. • Ban on exploitation & diversion of protected areas under orders of the Hon’ble Supreme Court. The habitats of protected areas cannot be used for ‘leasing ‘or ‘carbon trading” purposes due to prohibitory legal regime.
  • 227. Present & potential Protected Areas of India
  • 228. Promotion of plantation Industry • Develop computer based yield and growth models of All India Site Qualities & State Site Qualities. Since these vital planning tools are are not available, hence determination of growth and attainment of selection girth is difficult for timberlands. • In India most of the plantation industries are raising even- aged, monoculture crops. To exploit the potential of the site entire biomass production / biological growth should be developed. This planning is necessary to have consistently regular intermittent IRR, otherwise most of the plantation industries may face financial problems in the second half of economic rotation period. • Consider diverting ‘forest land’ for industrial / biofuel plantations under Forest (Conservation) Act, 1980. Legally it is feasible – if forest land can be diverted for non-forest purposes, it can be assigned for afforestation purposes also.
  • 229. • “Market Research” on “Macro & Micro Economic trends of demand and supply of tropical timber species and paper pulp” may be analysed specially with reference to the Asia-Pacific region. • Paper and plywood industry has shown interest in raising plantations on forest land. But the country is not having any professional timberland management corporations to enthuse modern technical inputs in the plantation sector.
  • 230. Public – Private – Partnership Projects
  • 231. • All land based Public – Private – Partnership projects are complicated – land acquisition costly, time consuming & not feasible • Land holdings are small & scattered, hence not viable. • Multi-stakeholders. • Long gestation period. • Exercise of nistar rights by local communities in PF. • Difficult to formulate. • Past experiences not promising. Why “Public – Private – Partnership forest land leasing” projects requires special consideration ?
  • 232. Prerequisite for Public – Private – Partnership Models • Should be acceptable to financial institutions. • Pledging / mortgaging of forest land not permitted, since all rights are vested in the State Government. The PPP partner shall provide collateral security for this purpose. • If possible, the operator to exploit only “usufruct crop” and not major forest produce. Relaxation for paper & pulp industry.
  • 233. • The PPP models may be uniform to all locations or different area specific models and agreements to be designed & developed. • The other Public – Private – Partnership models shall be studied before arriving to select best model. The subject matter is open for discussions
  • 235. Fiasco of Previous Attempts • Government of M.P. enunciated “M.P. Promotion of Forest Based Industries Policy, 1977”. Collapsed due to ad- hocism of IDC and interference. • In the 1996, State Government invited tenders for “allocation of forest lands” without obtaining prior approval under FCA. Tantamount to contravention of the Act. Consequently not allowed by Hon’ble Supreme Court. • GOI took strong objection to misdemanur. • Modalities were not visualized to take care of eventualities. Obtain prior approval under Section-2(ii) and 2(iii) of Forest (Conservation) Act, 1980. No tempering of system to favour selected few.
  • 236. National Biofuel Policy, 2008 • Recently the Union Cabinet has approved the draft of National Biofuel Policy, 2008. • The National Biofuel Policy, 2008 promotes allocation of “forest lands” for biofuel cultivation
  • 237. Model -1 for forests land leasing • Identification of degraded forest land viz. compartment numbers, forest blocks with geo- coordinates (to avoid confusion & litigation), determination of site quality for assessment of “premium” and “lease rent”. • State Government & MPSFDC shall approach Ministry of Environment & Forests & CC for prior approval under Section-2(iii) of Forest (Conservation) Act, 1980. • All statutory clearances to be secured, before tender is invited for forest land. Virtually trouble free implementation of the project.
  • 238. • No allocation of forest land under any circumstances. The bidder would be selected based on tender, fair transparent, competitive bidding etc. • Selection of successful bidder based on a mathematical formula of “premium” (bidders may be required to quote heighest premium for selection process) and “lease rent” – shall be notified with the tender notice. • Total enumeration of forest crop before handing-over possession, existing working plan to be revoked, investor shall get prepared his own WP in consonance with the objectives of the lease management. • “Performance Guarantee” (BG / FDR) equal to 5 times of premium to be submitted before possession. Renewal mandatory or cancellation of lease. Model -1 for forests land leasing (contd.)
  • 239. Proposed Public – Private – Partnership Model for development of degraded forest lands Investor Forest area under Lease (Bio-fuel / raw material cultivation with exclusive rights to Investor). Communities cannot interfere Project Proponent Forest DepartmentJFMC Nistar and Grazing Lands (30% of lease area)
  • 240. Model for Public – Private – Partnership.
  • 241. • Lease period of 40 years, can be extended for 20 years, long lease period required looking to heavy investment, delayed break-even point, low IRR, 8 to 10 rotation of forest crop should be possible. Corollary can be drawn from Section-8(2) of Mines & Mineral (Development & Regulation) Act, 2010. • About 30% lease area shall be ear-marked for exercise of Nistar privileges by communities, shall be developed with investment by forest lessee and administered & managed by State Forest Department. No interference in rest 70% area by communities. Model -1 for forests land leasing (contd.)
  • 242. • Once working plan is approved for the lease area, no interference by the State Government. • “Premium” and “Annual Lease Rent” is payable by the lessee to the State Government. Annual Lease Rent is to be revised every 5 years. The revision criteria shall be transparent, without any arbitrary clause. May be linked with Wholesale Price Index (WPI) or Consumer Price Index (CPI). • The current grass / fodder production about 0.75-1.00 tonnes / ha. The successful lessee to share 2.00 tonnes forage / ha. with communities. But no grazing to be allowed in lease area. Model -1 for forests land leasing (contd.)
  • 243. • The investor shall be allowed to carry-out soil – moisture conservation measures and develop water harvesting structures for irrigation of plantations. • A proposal would be submitted to treat expenditure on SMC as “capital losses” under Income Tax Act, 1961. • The investor shall employ local labours for plantation operations. • The standing crop (Crop-I) shall be harvested by State Government on attaining rotation. Lessee shall be held responsible for “illicit fellings”. Model -1 for forests land leasing (contd.)
  • 244. Issues related to Scheduled Tribe & Other Traditional Forest Dweller (Recognition of Forest Right) Act, 2007
  • 245. • STOTFD(RFR) Act, 2006 enacted and became operational on 1st January, 2007. • Jurisdiction over all types of forest areas – RF, PF, revenue forests, village forests, dictionary meaning of forests etc. • Two types of rights can be claimed: A. Individuals can claim upto 4.00ha per person. B. Community can claim any area (without limit). • Open ended Act. Claims can be put-up any time. • Forest areas not to be de-notified i.e. both STOTFD(RFR) Act, 2006 and Forest (Conservation) Act, 1980 shall apply. • No involuntary eviction / settlement – huge cost shall be involved. • Linear projects e.g. roads, transmission line, skyline crane, conveyor belts, pipelines, Issues related to Scheduled Tribe & Other Traditional Forest Dweller (Recognition of Forest Right) Act, 2006
  • 246. • Topsy turvey settlement process – Gram sabha, Block Committee and ultimate decision at District Committee. Pressure to accept all claims. • Bamboos have been brought under STOTFD(RFR) Act, 2006. Authority to issue “transit pass” assigned to Panchayats (particularly Maharashtra) – shall be an issue in Bamboo based models. • No procedure provided in STOTFD(RFR) Act, 2006 to acquire once settled rights of individuals or communities. • Improper and ambiguous record maintenance by Deptt. Of Tribal Welfare. • The Section-3, 4, 5, 6, 9, 12 and 25 (easement) of the Limitation Act, 1963 provides 3 years time frame for submitting claims. It is proposed to consult Ministry of Law & Legislative Affairs on this issue.
  • 247. Issues related to Panchayatiraj Extension to (Scheduled Areas) Act, 1996.
  • 248. • Enacted to provide jurisdiction to Panchayats over subjects of local importance. • Section-4(m) provides that Panchayats shall have jurisdiction over “minor forest produce”. • “Reserve forest” (RF) and “protected forests” (PF) notified under Indian Forest Act, 1927 are not in jurisdiction of Panchayats. But PRIs claiming jurisdiction over RF and PF. • Jila Panchayats and Janpad Panchayats are not having jurisdiction over RF and PF. • The 73rd Constitution Amendment provides jurisdiction of Panchayats over - A. social forestry and farm forestry. B. Minor Forest Produce (MFP). Issues related to Panchayatiraj Extension to (Scheduled Areas) Act, 1996.
  • 249.
  • 250.
  • 251. • All statutory clearances (forest & environment clearances) shall be obtained before inviting tender; it will ensure trouble free operation of lease mechanism. • No time lag in lease operation. • Diversion of forest land shall not be allowed in contravention of Section-2(ii) of Forest (Conservation) Act, 1980. • Land use cannot be changed under any circumstances. • The lessee is required to maintain 3% area for wildlife and another 3% for biodiversity conservation. • Low height plantations under conductors of transmission lines. Canal side side plantations would be permitted. Model -1 for forests land leasing (contd.)
  • 252. • The lease area shall continue to be governed under Indian Forest Act, 1927; Wildlife (Protection) Act, 1972 and Forest (Conservation) Act, 1980. • The State Government shall reserve the right to sanction / allow diversion / fragmentation of lease area in certain site specific, infra-structure projects. For such eventualities specific clause shall be inserted in the contract with suitable compensation mechanism. • At the conclusion of lease, the lessee shall be allowed to harvest 66% forest crop in all girth classes and balance 34% shall be left intact (uniformly spread over landscape). Up-rooting of stumps not allowed under any circumstances. Model -1 for forests land leasing (contd.)
  • 253. • Certain areas may be allowed to be developed for wilderness / eco-tourism with very stringent conditions / riders. • Would be our endeavor to obtain concessions under Stamp Duty Act for documentation purposes. • The State Government may like to retain “Carbon Sequestration Rights” (CSR) for the lease area. • The project proponent shall be under statutory obligation to carry-out “corporate social responsibility” operations as provided in Schedule- VII of the Companies Act, 2013. Model -1 for forests land leasing (contd.)
  • 254. A Forest Management Plan should be included as an annexure to the “forest land leasing” contract. The template can be developed for a “Forest Management Plan” to provide guidance on the planning and operational issues to be considered for any forest sequestration project. The basic template provided in the National Working Plan Code can be used for this purpose and in the “Report on Planning Forest Sinks Projects”. Scope of Forest Management Plan in Contractual Framework
  • 255. Public – Private – Partnership for Development of Degraded Forest Areas
  • 256. • The section-2(ii) also applies in the matter. • The “Explanation” under Section-2 provides that “cultivation of oil seeds is non-forest activity”. If these 2 stipulations are complied with, biofuel / cultivation of any other species is permitted as under: A. No species can occupy more than 49% of area. B. The species should be native and part of overall afforestation programme. Afforestation Module can be designed to satisfy these stipulations without causing contraventions of Forest (Conservation) Act, 1980
  • 257. Scope of Contract for Forest Land Leasing • Recitals & Definitions • Interpretation • Term of agreement • Sale / payment arrangements • Establishment and management of vegetation – rotation, felling cycle etc. • Contract Framework for Public – Private – Partnership the State Government may retain CSR in its favour to be traded under CCX / Voluntary Carbon Scheme / Bali Action Plan.
  • 258. • Project boundaries. • Harvesting – species, rotation, felling cycle, coupe control forms to be maintained etc • Carbon accounting. • Rights and Obligations. • Investors. • Assignment / transfer. • Dealings with the Land Registration. • State legislation (MPLRC) may provides for the Lease Agreement to be registered on title at the applicable Revenue / Settlement Office. • Mechanism for inventory monitoring.
  • 259. • Common Contract Clauses • Warranties • Costs and stamp duty • Goods and services tax • Notices • Amendment • Waiver of rights • Delay • Partial exercise • Waiver • Severing provisions
  • 260. • MPRVVN having 3,80,000ha. Of forest land, carrying-out Teak and Bamboo plantations. Treating 11,000ha. per annum and this rate can be doubled to 22,000 to 25,000ha. without much problem; financial mobilisation is possible. • The under-storey of these plantations can be developed by Bamboo plantation for supply of raw material to plantation industry. • Bipartite agreement can be entered after the proposal has been approved by the Board of Directors and the Government of M.P. Model - 2 for forests land leasing – Bipartite agreement for supply of raw material
  • 261.
  • 262. Achieved MAI of 6.00 cmt/ha./annum in past 40 years
  • 263. • The prior approval from the Ministry of Environment & Forests under Forest (Conservation) Act, 1980 is not required. Sanction of Working Plan deviation would be mandatory; MPSFDC would obtain sanction. • No issues related to Forest Rights Act, 2007, Nistar supply, illicit felling etc. • MPSFDC can demarcate hinterland for supply of raw material. • Prior investment would be required from the investor in this Model-2. The highest bidder can become entitle for supply of raw material @ specified rate plus taxes. Model - 2 for forests land leasing (contd.)Model - 2 for forests land leasing – Bipartite agreement for supply of raw material
  • 264. Financial Benefits of leasing operations • At present these “degraded forest lands” are not generating “income” rather proving financial, scenic and aesthetic liabilities. • The “Public – Private – Partnership” for degraded forest land leasing shall earn “premium” at the time of signing of agreement to the State Government. The PPP shall attract “bhu-bhatak” (lease rent) every year. • Raw material to industry, import substitution. • The assignment shall attract investment and generate employment. • Great boost to dairy development. • Enhanced ecological stability.
  • 266. Forest Finance Corporation • Special Purpose Vehicles (SPV) has been designed by the Government to boost particular sectors – IRCON, IDBI, PFC, PTC etc. Desired results have delivered by these SPVs. • SPV is a must due to these reasons – A. Long gestation period of 30 years or more. B. Long and uncertain break-even point. C. Low IRR may be of 12-13% only. D. Mostly projects are not bankable due to low IRR. • Silvicultural tools – growth data, yield table are not available. • Market Research and trends of macro-economic demands and supply are not available for future projections.
  • 267. Purpose of Investments • Finance to Lokvaniki farmers, project proponents of plantation industry for extension in non-forest areas. Establishing bundle & sub- bundle project(s) including bamboo and horticulture projects. • Finance to FDAs and JFMCs on loan basis. Loan for forest management for generating tangible economic profits for “debt servicing”. At present JFMCs are not legal entities, nobody would enter into contract with them, make legal bodies (can sue others and sued in turn with civil and criminal liabilities).
  • 269. Forest Finance Corporation – Raising Share Capital • Incorporate “Forest Finance Corporation” to augment long term fiscal resources for forest financing. • Authorised capital Rs. 8000 to 10000 crores. • The CAMPA is having Funds of Rs. 60,000Cr. About Rs. 11,000Cr. Is untied fund and can be mobilised for the purpose of SPV. Share capital can be raised from NPV available with CAMPA. • Venture Funds may be invited through FIPB at low interest rates.
  • 270. Raising Debt Capital • Accord status of “plantations” as “industry”. • Can raise cheap capital by issuing ‘capital gains bonds’ under Section-54EA, 54EB and 54EC of Income Tax Act, 1961. (RBI and Ministry of Finance approval mandatory). Rate of interest 6.5% only. • Explore possibilities of raising ‘social venture funds’ (with approval of SEBI and FIPB). • Soil conservation works may be treated as “capital losses” under Income Tax Act, 1961. Indexing of soil conservation works is possible for assessment purposes. • FFC may be made subsidiary of MPSFDC and allowed to raise “debt capital” by issuing capital gain bonds / “secured bonds / debentures”.