Afforestation/reforestation CDM projects: the examples of India and China

Transcription

1 Seminar on A pro-poor approach to climate change mitigation through the carbon market: challenges and opportunities for IFAD Afforestation/reforestation CDM projects: the examples of India and China Xiaoquan ZHANG The Nature Conservancy zxiaoquan@tnc.org 03 July 2009, Rome

2 Outline Project Briefing How are they structured? How do they benefit poor rural people? What is the advantage of linking them to the CDM? How much time did it take them to develop an registered project What is the barriers in implementation

3 Project briefing -- China project (1) Objectives To sequester CO2 through reforestation, and test and pilot CDM AR project; To enhance biodiversity conservation by increasing the connectivity of forests adjacent to nature reserves; To improve soil erosion control; To generate income for local communities.

4 Project briefing -- China project (2) 4000 ha 80 parcels of lands 27 villages of two counties

5 Project briefing -- China project (3) 2,000 ha in Huanjiang County 830 ha in buffer zone of two national nature reserves, and 1,170 ha on lands in between Land use/cover map of Huanjiang County in 1999 (1:500,000) Lands linked to Mulun Nature Reserve (behind)

6 Project briefing -- China project (4) 2,000 ha on lands with severe soil in Cangwu County

7 Project briefing -- China project (5) Implementation status By May 2009, 3,394 ha planted, 85% of planned Much delayed: : 2,000 ha (planned 4,000 ha) 2008: 1,141 ha 2009: 114 ha

8 Project briefing -- China project (6) Total cost and sources: US$22.4 millions Establishment: US$2.8 millions 40% from WB loan 40% from Government equity 20% from entities O&M: US$ 19.6 millions Short-term loan from local commercial bank Entities

9 Expected CERs

10 Project briefing -- India project (1) Small Scale Cooperative Afforestation CDM Pilot Project Activity on Private Lands Affected by Shifting Sand Dunes in Sirsa, Haryana Objectives To earn carbon credits from growing of trees to be planted; To improve the local environment by stabilizing the shifting sand dunes; To increase income, and as a result to alleviate poverty of local communities.

11 Project briefing -- China project (2) Establishing ha of mixed forests in 2008, using seven tree species on 270 parcels of marginal cropland heavily impacted by shift sand dune owned by 227 farmers of 8 villages of Sirsa District, Haryana

12 Project briefing -- India project (3) CDM Project Boundary in Sirsa District 74 33'30" 74 34'00" 74 34'30" 74 35'00" 74 35'30" 74 36'00" 74 36'30" 74 37'00" 74 37'30" 74 38'00" 74 38'30" 74 39'00" 74 39'30" 74 40'00" 74 40'30" 74 41'00" 74 41'30" 74 42'00" 74 42'30" 74 43'00" 74 43'30" 74 44'00" 74 44'30" 74 45'00" 74 45'30" 74 46'00" 74 46'30" 74 47'00" 74 47'30" 74 48'00" 74 48'30" 74 49'00" 74 49'30" 74 50'00" 74 50'30" 74 51'00" 74 51'30" 74 52'00" 74 52'30" 74 53'00" 74 53'30" 74 54'00" 74 54'30" 74 55'00" 74 55'30" 74 56'00" 74 56'30" 74 57'00" 74 57'30" 74 58'00" 74 58'30" 74 59'00" 74 59'30" 75 00" 29 28'30" 29 28'30" 29 28'00" 29 28'00" 29 27'30" 29 27'30" 29 27'00" 29 27'00" 29 26'30" 29 26'30" Neemla 29 26'00" 29 26'00" 29 25'30" 29 25'30" Umedpura 29 25'00" Mallekan 29 25'00" 29 24'30" 29 24'30" 29 24'00" Podka Gudia Khera 29 24'00" 29 23'30" 29 23'30" Dhani Sheran 29 23'00" 29 23'00" 29 22'30" 29 22'30" Bhuratwala 29 22'00" Madho Singhana 29 22'00" 29 21'30" 29 21'30" 29 21'00" 29 21'00" 29 20'30" 29 20'30" 29 20'00" 29 20'00" 29 19'30" 29 19'30" 29 19'00" 29 19'00" '30" 74 34'00" 74 34'30" 74 35'00" 74 35'30" 74 36'00" 74 36'30" 74 37'00" 74 37'30" 74 38'00" 74 38'30" 74 39'00" 74 39'30" 74 40'00" 74 40'30" 74 41'00" 74 41'30" 74 42'00" 74 42'30" 74 43'00" 74 43'30" 74 44'00" 74 44'30" 74 45'00" 74 45'30" 74 46'00" 74 46'30" 74 47'00" 74 47'30" 74 48'00" 74 48'30" 74 49'00" 74 49'30" 74 50'00" 74 50'30" 74 51'00" 74 51'30" 74 52'00" 74 52'30" 74 53'00" 74 53'30" 74 54'00" 74 54'30" 74 55'00" 74 55'30" 74 56'00" 74 56'30" 74 57'00" 74 57'30" 74 58'00" 74 58'30" 74 59'00" 74 59'30" 75 00" Umedpura Podka Neemla Mallekan Madho Singhana Gudia Khera Dhani Sheran Bhuratwala Total Number of Farmers are 227 Total Project Area is Ha. N Meters Scale 1 :: 59,000 Metre

13 Project briefing -- India project (4)

14 Project briefing -- India project (5) Estimated net GHG removals by sinks 250, ,000 tco2e 150, ,000 50, Year

15 How are they structured? --China project World Bank CDM EB Expert team Guangxi Forestry Bureau Leading entity Contract County Forestry Bureau Forestry posts Entity 1 Authorization Entity 2 Entity 3 Farner G Villages Farmers Technical guiding, C benefit distribution

16 How are they structured? --India project CDM EB Haryana Forest Department Sirsa Forest Department Coordination technical advising equity funding Haryana CDM Ellenabad Variksh Kisan Samiti, Sirsa Expert team European Comission Project develp, technical advising Board 227 farmers

17 How do they benefit poor rural people? --China Project (1) Shareholding arrangements between local farmers/villages and entities: 89% of lands. Farmers/villages contribute lands; Entities invest in planting activities, provide technical inputs and manage the plantations, and take the natural and investment risks. Farmers/villages share 40% of benefit from wood and NWFP, and 60% of carbon benefit, as well as income from labor input. Entities share 60% of benefit from wood and NWFP, and 40% of carbon benefit.

18 How do they benefit poor rural people? --China Project (2) Farmers group: 11% of lands Individual farmers voluntarily group-invest and undertake project activities, including site and soil preparation, planting and stand management. Local forestry agencies provide assistance for the planting design and other technical services including training, as well as supervising the project implementation and planting quality. Income from forest products and CER transactions belong solely to the local farmers. The farmer groups authorize the leading entity to register the project and CER selling on behalf of them.

19 How do they benefit poor rural people? --China Project (3) Carbon benefit is delivered based on ex ante estimation, balanced at each verification event Carbon benefit of 33,122 tco2 e by 2007 delivered Carbon benefit of 58,112 tco2 e by 2008 is paying Carbon benefit is distributed directly from Guangxi government to individual participants (entities, farmers) based on contractual arrangement Carbon benefit is distributed on land area basis

20 How do they benefit poor rural people? --China Project (4) Carbon benefit is distributed on land area basis Mixed 6 species with rotation 6-30 years to ensure income at early stage Local government agencies play a key role in project development,implementation supervision,technical guidance as well as equity money.

21 How do they benefit poor rural people? --India Project (1) 227 individual households voluntarily form an entity for AR CDM, with member of board elected by all households; Each household invest planting on their own land and get full wood, non-wood and carbon benefit; Carbon benefit will be distributed on area bases Mixed 8 species with rotation 10 and 20 years Local government agencies are important to provide technical assistance as well as equity money.

22 What is the advantage of linking them to the CDM? --China Project With carbon benefit from CDM: Entities would like to invest on marginal lands from financial point of view; Bank loan become available due to stable carbon income and decreased risk Government equity is available Biocarbon fund s prepayment of the carbon benefit that come much earlier than forest products Expert team is available In the absence of the carbon benefit, these advantage is unavailable!

23 What is the advantage of linking them to the CDM? --India Project With carbon benefit from CDM: Government equity is available Individual household is able to form an entity that govern procedures from production to selling of wood, non-wood and carbon products Fund for project development is available from EC Expert team is available Expected carbon benefit is an important incentive for them to invest on tree planting on marginal lands. In the absence of the carbon benefit, these advantage is unavailable!

24 How much time did it take them to develop an registered project China Project Preparation stage PIN: 6 months CFD: 6 months Meth: 11 months PDD: 3 months Validation: 4 months Accreditation: 3 months Registration: 2 months Around 3 years!!! From early 2004 to end of 2006 Requested by WB Biocarbon Fund WB Biocarbon Fund CDM M&P CDM M&P CDM M&P CDM M&P CDM M&P

25 How much time did it take them to develop an registered project India Project Preparation stage PCN: 4 months PDD: 3 months Validation: 3 months Re-accreditation: 3 months Registration: 3 months Requested by Indian DNA CDM M&P CDM M&P CDM M&P CDM M&P

26 What is the barriers in implementation? --China Project Land tenure dispute Legally clear: determined in early 1980s Farmers disagree legally land tenure Unexpected natural disaster: ice/snow storm in 2007/08 winter damaged young stands Increasing price of production material including labor, seedlings, fertilizers, pesticide, etc.

27 Thanks for your attention