Carbon Credit Benefits for Agriculture & Allied Sectors

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1 Carbon Credit Benefits for Agriculture & Allied Sectors Dr. H D Kulkarni Vice President (Plantations) ITC Limited, PSPD Unit: Bhadrachalam, Sarapaka Khammam (Dist), A.P, India Workshop on Capturing the Potential for GHG offsets in Indian agriculture India International Centre, New Delhi July 10, 2012

2 GHG mitigation - Present scenario 1. Registered CDM Projects Global = 4312 (2150 million CERs) (2150,000,000 CERs) India = 855 (20%) 2. Scopes = Scope 14 A/R Global = 39 (0.90 %) India = 7 4. Scope 15 Agriculture Global = 152 (3.52 %) India = CERs Issued = 959 million tonne ( CERs) 6. Approved Methodologies by Scope = 234 Scope 1 to 13 = 208 Scope 14 A/R = 20 (8.54 %) Scope 15 Agriculture = 6 (2.56 %)

3 Characteristic Title AR-AM0001 (China) Facilitating Reforestation for Guangxi, Watershed management in Pearl River Basin Methodology Comparison AR-AM0002 (Moldova) Moldova Soil Conservation Project AR-AM0003 (Albania) Assisted Natural Regeneration f Degraded lands Size (ha) CO2 Removal (Kt/Yr ) Applicability Carbon pools Project Scenario Project Emissions Leakage Reforestation of Degraded land Reforestation of Degraded lands through AR Planting of trees in degraded land, Assisted natural regeneration, grazing control AR-AM0004 (Honduras) Reforestation around Pico Bonito National Park AR of land currently under agriculture use R A AR AR Degraded and degrading lands, Degraded and degrading Assisted natural Regeneration Afforestation few pre existing trees allowed lands Agri activities (intercrop) nil Living biomass only Land remains abandoned and degraded Forest Plantation Fossil fuel consumption Fertilization Biomass burning Fossil fuel consumption - - Agri activities (intercrop) nil All five (AGB, BGB, SOC, Litter, Deadwood) Land remains abandoned and degraded Forest Plantation Fossil fuel consumption Fertilization Biomass burning Fossil fuel consumption - - Other - Use of CO2 fix allowed for ex ante estimations Pre project grazing and fuel wood collection Living biomass only Land remains used for grazing & / or fuel wood collection Forest Plantation & Natural Regeneration Fossil fuel consumption Fertilization Biomass burning Fossil fuel consumption Wood posts for fencing Activity displacement (grazing & fuel wood collection) Pre project grazing, fuel wood collection and agricultural activities Living biomass only Land remains used for grazing, agri activities & fuel wood collection Forest Plantation & Agro forestry Fossil fuel consumption Fertilization Biomass burning Fossil fuel consumption Wood posts for fencing Activity displacement (grazing, Agri activities & fuel wood collection) - -

4 GHG mitigation through CDM Indian Agriculture Projects

5 GHG mitigation through CDM Indian A/R Projects

6 CDM activities in India Afforestation and Reforestation (A/R) Projects: C - sequestration projects is a win-win-situation from the point of view of climate change It is estimated that if 30 Mn ha of degraded forest lands in India, if afforestated will mitigate 3.32 GT carbon in next 50 years (@5.5 tonnes/ha/yr productivity) A possible fund flow opportunity to India. It means annual carbon reduction of GT C - sequestration projects help reduce C0 2 foot print of the industry ITC is a Carbon Positive Corporation.

7 ITC s Social & Farm Forestry Initiative Greening over 1,25,000 hectares Social Contribution Providing Livelihood to poor Tribals and Marginal Farmers Creating 56 million person days of employment Environmental Impact Carbon Sequestration Augmenting Green Cover Top Soil Retention Water Recharge Economic Benefit to ITC A Competitive Source of Pulp-wood for ITC s Paper mill

8 GHG mitigation through CDM ITC case study salient features - Title: Reforestation of severely degraded landmass in Khammam District of Andhra Pradesh, India under ITC Social Forestry Project - UNFCCC Project No. 2241, Registered on 5 th June Methodology : ARAM 0001 version 5 2. Carbon sink project on ha 3. Starting Date: Spread over 14 mandals, 193 villages in Khammam district of Andhra Pradesh 5. Beneficiaries = 3398, 6. Species = Eucalyptus 7. Project participants = Mandal Samyakhya and Farmers with ITC 8. Land Eligibility = NRSA, GPS demarcation of plots

9 Salient features Cont.. 9. Operational Lifetime of the project = 32 years 10. Crediting period = 30 years 11. Rapid Environmental Assessment 12. Research - Case study Baseline, AGB, BGB = IISC, Bangalore 13. Sample plots, Growth data CAI & MAI 14. Operational Manual 15. Monitoring Plan 16. Training manual 17. Total CERs = 1.73 mn, Annual CERs = Project Verification: Completed for issuance of 4 lac CERs 19. CERs issuance by UNFCCC: September 2012

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11 Sl. No Carbon Sink - Mandal wise, year wise Eucalyptus Plantations in Khammam District, Andhra Pradesh Name of the Mandal Year of Plantation Establishment (All figures in ha) Total 1 Aswapuram Aswaraopeta Bhadrachalam Burgampahad Chandrugonda Dammapeta Dummugudem Kothagudem Kukunuru Kunavaram Mulakalapally Paloncha V R Puram Velerupadu Total:

12 Number of Land holdings in the project site Sl. No. Name of the Mandal No of Farmers No of Villages Area (ha) 1 Aswapuram Aswaraopeta Bhadrachalam Burgampahad Chandrugonda Dammapeta Dummugudem Kothagudem Kukunuru Kunavaram Mulakalapally Paloncha V R Puram Velerapadu Total:

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15 C stock (tc/ha) 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 Baseline Project Baseline Project* C Increment *The C-stock is estimated after deducting emissions from; biomass burning after harvest and fertilizer application

16 Estimated amount of GHG removals by sink over the crediting period Year Annual estimation of net anthropogenic GHG removals by sinks in tonnes of CO 2 e Year Annual estimation of net anthropogenic GHG removals by sinks in tonnes of CO 2 e Total estimated net anthropogenic GHG removals by sinks (tonnes of CO 2 e) Total number of crediting years 30 Annual average over the crediting period of estimated net anthropogenic GHG removals by sinks (tonnes of CO2e) 57792

17 SOCIAL FORESTRY C-sink

18 A BARREN LAND FOR CARBON SINK

19 Developed Land

20 Beneficiaries Participating in Planting Activities Alignment Pitting & planting Anti termite treatment Fertiliser application

21 2 Months old Clonal Eucalyptus Plantation

22 PROPERLY FENCED EUCA PLANTATION BY BENEFICIARY

23 PLANTATION BEFORE HARVEST IN PALAMADUGU

24 Additional income to beneficiaries by harvesting their own plantation in lean season

25 BENEFICIARIES OF PALAMADUGU EXHIBITING THEIR SAVINGS

26 Climate Change & Agriculture CC affects agriculture and is a risk to food security Croplands, wetlands, pastures and forests play major role in CC If managed unsustainably or destroyed, they emit CO 2 / GHGs If managed sustainably they remove CO 2, store in biomass, soils and products Conservation agriculture, A/R, SFM, avoided deforestation, substitution of fossil fuels by bio-fuels etc mitigate CC

27 Carbon Dioxide emission in the atmosphere (Tons of carbon/person) 1. Agriculture Emissions (India) = 0.2 TC 2. Global average of carbon emission = 1.2 TC 3. Emission of Carbon (USA) = 5.0 TC

28 Climate Change & Agriculture Possible Projects for research under Agriculture scope - zero tillage reduce use of machinery /reduce use of fossil fuel - Crop establishment techniques which reduce fertilizers, herbicides, save seeds, reduce production cost, reduce water usage etc will qualify - Microdozing a new technology may also qualify - Productivity improvement (say in case of ITC R&D Productivity of Eucalyptus plantations improved through application of Genetics & silviculture from 6 tons/ha/yr to 25/t/ha/yr)

29 Climate Change & Agriculture - Shifting cultivation to full time agriculture - Waste stream from agriculture (for energy production) - N 2 O emissions reduction - Methane from animal waste - Fossil fuel consumption in agriculture - There are only 6 Methodologies available as of now. More methodologies are to be written and hence research / case studies are required - Policy: Redd+ initiative is likely to be a forest dept driven initiative. Policy change is required to assign role for private sector in REDD + and JFM

30 Climate Change & Agriculture * Agriculture CASE STUDY - CO 2 Enrichment research IARI, New Delhi * Effect of CO2 enrichment A. Climatic effect B. Biological effect absorption of longer wave length thermal radiation - CO 2 is a substrate and activator for photosynthetic carbon assimilation and concomitant photo- respiration and determination of stomatal aperture C. Response - crop studies done on temperate crops and research required in tropical and subtropical crops - Research conducted in closed chambers and its effect on large scale field experiment required for replication - Plant response to elevated CO 2 are required to develop genotypes and management practices thereon to withstand elevated CO 2 response

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39 Agriculture & Allied Sectors Research ITC Agro forestry model (wood & Food security. C-Sequestration ) - Reduction in Energy Consumption through efficient equipment employed for irrigation - Mixed species planting enhances C-Sequestration compared to mono species planting - ITC invite and participate in Research projects with IDFC and other collaborators as is done in the past with USAID / IISC case study for Social forestry CDM project

40 Thank you Carbon Farm on Degraded area

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