Fostering Mitigation Projects with Industry and Farmer Partnership - Challenges and Opportunities in C-sequestration through Farm Forestry Plantations

Transcription

1 Fostering Mitigation Projects with Industry and Farmer Partnership - Challenges and Opportunities in C-sequestration through Farm Forestry Plantations By Dr. H D Kulkarni ITC Limited Paperboards & Specialty Papers Division Sarapaka, Andhra Pradesh, India. in Workshop on Facilitating Forestry Mitigation Projects in India: Promoting Stakeholder Dialogue and Capacity Building At I C F R E, Dehra Dun June 2005

2 Background Globally forestry has taken central stage to mitigate climate change. It is estimated that the total global technical potential for afforestatioin and reforestation activities for period is 1.1 to 1.6 GtC/yr. Tropics will have 70% of the above potential. Agro forestry / Farm Forestry is an attractive option for carbon mitigation. The SF / FF plantations are debated in climate change negotiations as potential investors in GHG mitigation are looking towards offsetting emissions while, communities are looking forward to C - benefits. For success of CDM forestry project, institutional set up, GIS data base, land use policy, short rotation felling, leakage's, permanence, SFM backed CDM project, cost and benefit sharing factors need to be considered.

3 ITC Farm Forestry ITC Social & Farm Forestry Projects are considered for CDM. It is estimated that 100,000 ha of plantations have a potential to sequester 1.25 mn MT/yr carbon and reduce 4.57 mn MT/yr of CO 2 amounting to US $ 13.71mn (INR mn) per year. 4 Plantation Projects are identified.

4 Case Study A Case Study is attempted in Khammam district of Andhra Pradesh for ITC SF/FF Plantations to: Estimate c - sequestration potential Develop baseline Establish additionality Address non-permanance issue Assess leakage and measures to address leakage Measure carbon stock change Consider institutional mechanisms involving farmers, minimize transaction cost and maximize flow of benefits to farmers.

5 Land Use Pattern The current land use pattern is as follows: Forest dominate 62% of the geographical area of the Khammam district. In case study, 6 mandals of Khammam district are involved and the cultivated agricultural land is 18%, non-agricultural land is 8%; barren land is 3.82%; fallow land is 1% and land under tree crop is 0.88%. Mandal Burgampahad Kukunoor Bhadrachalam Kunavaram Cherla Velairpadu Total Geographic Area Forest cover Total cropped area ,189 Misc. tree crops ,229 Non agriculture land ,457 Pasture & grazing Barren & uncultivated ,021 Cultivable waste Other fallow land ,087 Total

6 FF accounts for only 10% of the area of six mandals. Bhadrachalam has 605 ha (50%), Kunavaram 20%, Burgampahad 6% with eucalyptus and Leucaena tree crop. Land Use Pattern In agriculture land, paddy crop dominates followed by chilli, cotton, pulses etc. Mandal Bhadrachalapahapadu Burgham- Velair- Kunavaram Kukunoor Cherla Total Paddy Jowar Maize Greengram Blackgram Sugarcane Redgram Cotton Tobacco Chillies Groundnut Sesamum Total

7 Afforestation Rate It is necessary to consider past, current and projected rates of afforestation and reforestation for projecting the BAU or base line scenario. The afforestation rate is 54 ha/yr during It has increased 5 folds ie. 240 ha/yr in last 5 years ( ) Therefore, afforestation rate in last 5 years is 240 ha/yr in 6 mandals of Khammam district.

8 Afforestation Rate Mandal Bhadrachalam Burghampahad Kunavaram Kukunoor Total Total Average planting rates ( )

9 Additionality Project activity is additional if anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of project activity. Proposed project activity meets several criteria. Increase net carbon sequestration compared to what have happened otherwise. Would not have gone ahead in the absence of project. Do not result in increased deforestation elsewhere. Contribute to sustainable development (local socio-economic benefits - increased employment, access to non-timber forest products). Financial additionality - Not financed by external aid. Investment additionality - Farmers have to invest Rs.40,000 per hectare for raising plantations. Finances are not easily available to to small farmers. The alternative to the project is dry land agriculture or status quo. Lands are degraded and commercial crops are not attractive. Therefore, project is additional.

10 Baseline Development Project area and legal status. - Land is legally private ownership - agricultural and follow lands. - Project boundary - Needs to encompass all GHG emissions and removals by sinks. Six mandal boundaries are considered as project boundary. But requires mapping.

11 Carbon Pool for Baseline Carbon pools are AGB, BGB & SOC. The features of the project area are: Lands are not under forests since 1990 and are either crop or fallow lands. The project area has pasture and grazing, barren and uncultivated, cultivable wastes and fallow land. Thus the current land use is either agriculture or fallow land.

12 Biomass stock under Baseline AGB and BGB (t/ha/dry wt.) and woody litter for baseline scenario is t/ha (dry wt) Above ground biomass 0.02? 0.05 Below ground biomass Woody litter Nil Considering 0.26 as the conversion factor for estimating BGB from AGB, t/ha accounts for BGB. The total biomass under baseline is t/ha in the project area.

13 SOC under Baseline Scenario Considering regional baseline for Khammam district, a baseline SOC of / t/ha is considered. Management practice Soil Organic Carbon (t/ha) at different depths 0-15 cm cm 0-30 cm Black soil Chilli 26.79? ? ? Cotton 27.86? ? ? Miscellaneous 20.99? ? ? 3.80 Fallow 31.61? ? ? Average 27.16? ? ? Red Soil (Miscellaneous) 16.62? ? ? Regional Baseline 25.40? ? ? 15.99

14 SOC under Baseline Scenario Soil Organic Carbon (t/ha) Age (yrs) SOC accumulation (t/ha/yr) Baseline Project SOC t/ha/yr

15 C Stock Change under Baseline The plantations are proposed on agriculture land or on fallow lands. The AGB (0.02 t/ha) is due to few big trees which reached equilibrium state. The soil C status is considered equal to input to output under pre plantation land use. Hence, C stock change under baseline is static. The C stock under baseline scenario is t/ha which could remain so under BAU. For project area of 8,000 ha, the baseline C stock would remain at ktc.

16 Project Activity Proposed rate of Afforestation Land category Burgampahad Kukunoor Bhadrachalam Kunavaram Cherla Velairpadu Total Technical Potential* Proposed Phasing Year Year Year Year Total CARBON FARMS

17 Project Activity & C - Stock Change The life time of the project is considered 30 years ( ). COMAP model is used for accounting C stock change for 30 years. Carbon Pool (tc) 600, , , , , , Baseline Mitigation

18 C Stock Change under Project Scenario The carbon stock reaches a maximum of t/ha during 2013 providing a C increment of t/ha which is recurring at every 4 years. C stock (tc/ha) Baseline Project Baseline Project* C Increment *The C-stock is estimated after deducting emissions from; biomass burning after harvest and fertilizer application

19 C Stock Change for Project Area The mitigation potential of 8000 ha afforestation is 3,077,819 tc at a rate of tc/ha for the period of This is approximately t/ha/yr inclusive of harvest regimes, CO2 emissions due to biomass burning and fertilizer application. SOC wise there is loss in 4 years in starting period. It gradually increases and then is a plateau. AGB & BGB show a steady rise and plateau is reached.

20 C Stock Change for Project Area 80,000 Carbon stock change for the project 60,000 Total C stock (tc) 40,000 20,000 0 (20,000) (40,000) above ground biomass Below ground biomass Woody litter Soil Stock 600,000 Total Carbon Pool (tc) 550, , , , , , >> Baseline Scenario > Mitigation scenario minus C emissions (without wood products) >> Mitigation Scenario (with wood products) >> Mitigation Scenario (without wood products)

21 Leakage & Cost Benefits Due to sound economic returns, there could be market leakage. The benefit cost ratio under baseline is 1.42 while under project scenario it is Thus, there is large financial incentives for the farmer to take up afforestation. Baseline scenario Project scenario PV of cost (Rs/ha) 13,364 4,855 PV of benefit (Rs/ha) 19,041 10,566 PV of benefit (Rs/ha/yr) 5,677 8,011 Benefit cost ratio

22 Issues ITC plans to afforestate 100,000 hectares under farm forestry in 10 years period. Institutional arrangements (apolitical organization - Farmers Federation) difficulties. Mapping of 100,000 ha farm forestry plantations for SFM regime and FSC certification of CDM Project. Threats from poaching in the project area by other mills and arrest early felling. Sharing of cost / benefit of project. GIS data 1950 & 1986 to 1991 required for CDM. Weightage is not given to land documents issued by Govt. Low value for CERs - a cause of concern. Approved methodology for forestry project not there.

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