CDM A/R Project - A ITC case study

Transcription

1 CDM A/R Project - A ITC case study By Dr. H D Kulkarni Vice President (Plantation) ITC Ltd Paperboards & Specialty Papers Division Unit: Bhadrachalam, Sarapaka (A.P.) India Presentation at South Asian Media Briefing Workshop on Climate Change Centre for Science & Environment s New Delhi

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3 Institutional Mechanism & Agreements Project PDD hosted on UNFCCC web site DEC 2005 Validation over (Took nearly 3 years) There is a written agreement 1. Bt Between the Farmers and the MS 2. Bt Between MS and ITC Ltd Tribal Farmers undertake the plantation and its maintenance in their own lands. Sangha s (Mandal Samakhyas - MS) would oversee the project activity implementation in their region, which includes awareness / training / resource provision and distribution. ITC would provide sapling / financial resources. ITC also manages the CDM project cycle and assists it in accrual of CDM benefits. MS will take up the task of applying for and obliging gthe CERs to farmers. Project PDD hosted on UNFCCC web site DEC 2005 Validation over (Took nearly 3 years) CARS and CLS more than 100 Project is Registered on Verification Ongoing

4 Mandal wise, year wise Eucalyptus Plantations in Khammam District, Andhra Pradesh Sl. No 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:

5 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:

6 Land use pattern in Khammam Dist (A.P.) - Area in Ha. Sl. No. Category Forests Barren and Un cultivable lands Land put to non- 3 agricultural use Cultivable waste Permanent Pastures and other grazing g lands Land under miscellaneous tree crops and groves not included in net area sown Current fallows Other fallow lands Net area sown Total geographical area

7 A BARREN LAND FOR CARBON SINK

8 Developed Land

9 Clonal Technology CLONAL PROPAGATION EUCALYPTUS ROOTING OF CUTTINGS

10 Clonal plants in open nursery

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

12 2 Months old Clonal Eucalyptus Plantation

13 Climate change - CDM Climate change is one of the most important global environmental issues likely to impact planet earth and its socio-economic systems Every 2 0 C rise in temperature due to GHGs would result in3%dipinglobalgdp In case of India, for every 2 0 C rise in temperature would result in 5 % drop in GDP To combat Climate Change and its adverse effects, CDM mechanism came into existence under Kyoto Protocol

14 CDM scenario (Data ) 1. Registered dcdm Projects Global = 4312 (2150 million CERs) (2150,000,000 CERs) Project PDD hosted on UNFCCC web site DEC 2005 India = 855 (20%) 2. Scopes = Scope 14 A/R Validation over (Took nearly 3 years) Project PDD hosted on UNFCCC web site DEC 2005 Validation over (Took nearly 3 years) CARS and CLS more than 100 Global = 39 (0.90 %) India = 7 4S 4. Scope 15 Agriculture Project is Registered on Verification Ongoing Expected Issuance Of CERs by UNFCCC Aug 2010 Global = 152 (3.52 %) India = 11 CARS and CLS more than CERs Issued Project is = Registered 959 million 5 06 tonne 2009 ( CERs) 6. Approved Methodologies by Scope Verification Ongoing = 234 Scope 1 to 13 = 208 Expected Issuance Of CERs by UNFCCC Aug 2010 Scope 14 A/R = 20 (8.54 %) Scope 15 Agriculture = 6 (2.56 %)

15 A/R Projects A/R Projects under CDM were adopted in the Marrakech Accord (MA) in CoP-7 held in 2001 under Chapter LULUCF. IPCC in 2000 came out with a special report on LULUCF and cleared A/R projects and not deforestation. For the first commitment period only 1% (or 20%) addition or subtraction to base year emission of that party is allowed by A/R Projects while 4% for other source (like industry etc). It is estimated that the total global technical potential for afforestation and reforestation activities for 1995 to 2050 period is 1.1 to 1.6 GtC/yr. Tropics will have 70% of the above potential.

16 A/R Projects CDM Definition of forests under LULUCF Forest is the minimum area of land of 0.5 to 1.0 hectare with a tree cover of more than 10-30% with trees with potential ti to reach a minimum i height ht of 2 to 5 m at maturity. Host country has to adopt single minimum value and report to CDM EB (para 8 and 17/CP7). Afforestation: It is direct human induced conversion of land that has not been forested for a period of at least 50 years to forested land through planting. Reforestation: It is the direct human induced conversion of non-forested land to be forested land through planting on land that was forested but that has been converted to non-forested land. For the first commitment period, reforestation activity will be limited to reforestation occurring on those lands that did not contain ti forestson

17 What type of A/R Projects are eligible Establishment of wood lots on communal lands, reforestation of marginal areas with native species in existing forest fragments. New large scale industrial plantations. Biomass plantations for energy production. Small scale plantations by land owners. Introduction of trees into existing agricultural systems (agroforestry). Rehabilitation of degraded areas through tree planting or assisted natural regeneration.

18 What type of A/R Projects are eligible Legal status of land prior to 1990 to beclear. Use of invasive species to be restricted and indigenous species promoted. Define project boundary explicitly. Small scale project - removal of less than 8 kilo tonnes of CO 2 per year (175 ha area produces 4375 MT of wood/yr, converting to 2188 MT of carbon) and are developed by low income communities / individuals. Bundling of small scale into large scale projects allowed.

19 ITC PSPD 8 Registered CDM Projects PROJECTS Registration # Annual CERs Reg. PDD CERs issued by UNFCCC BCM; BHRS ,587 60,750 BCM; EVAPORATOR ,247 1,72,531 BCM; ENCON ,505 84,934 BCM; SRB ,161 NIL TRIBENI; ENCON ,195 16,096 TRIBENI; TURBINE ,950 16,689 BCM; FORESTRY ,792 NIL BCM: GREEN BOILER ,650 NIL 3,51,000

20 ITC s Plantation Progress - 125,000 ha

21 ITC s Social & Farm Forestry Initiative The 125,000 ha plantations over a period of 20 years have Economic value Created an estimated wood asset value of INR 30 billion (for 3 cycles INR 90 billion) over a period of 12 years Social value Provided 56 million person days of employment mostly to tribals and marginal farmers Environment value Carbon sequester potential of 15 million tonnes reducing 54.9 million tonnes of CO2 in a period of 12 years Augmenting Green Cover Top Soil Retention Water Recharge A Competitive Source of Pulp-wood for ITC s Paper mill

22 Carbon Sequestration

23 ITC Plantation FSC Certified FSC FM certification is issued to ITC PSPDfor 8028 ha of plantations as a group manager of more than farmers

24 ITC Social Forestry Project Salient features 1. Title: Reforestation of severely degraded landmass in Khammam District of Andhra Pradesh, India under ITC Social Forestry Project 2. Project No: Methodology : ARAM 0001 version 5 4. Carbon sink project on ha 5. Spread over 14 mandals, 193 villages in Khammam district of Andhra Pradesh 6. Beneficiaries = Species = Eucalyptus 8. project participants = Mandal Samyakhya and Farmers with ITC 9. Land Eligibility = NRSA, GPS demarcation of plots

25 Salient features 10. Operational Lifetime of the project = 32 years 11. Crediting period = 30 years 12. Rapid Environmental Assessment 13. Case study Baseline, AGB, BGB = IISC, Bangalore 14. Sample plots, Growth data CAI & MAI 15. Operational Manual 16. Monitoring Plan 17. Training i manual

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27 PROPERLY FENCED EUCA PLANTATION BY BENEFICIARY

28 Carbon sink Plantation

29 PLANTATION BEFORE HARVEST IN PALAMADUGU

30 ADDITIONAL INCOME TO BENEFICIARIES BY HARVESTING THEIR OWN PLANTATION IN LEAN SEASON

31 Wood loading to Truck in Field

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34 BENEFICIARIES OF PALAMADUGU

35 CDM Training - Mandal Samakhyas

36 Training programme for MS & Govt. officials

37 Biodiversity - Aware colony conservation plot, Bhadrachalam Total area= 3.74 Ha No. of plant spp. = 32 No. of endemic plant spp.=11 Funding for preservation by ITC No. of animal spp. Spotted Butterflies = 9, Reptiles = 5 Birds = 12 Mammals = 4

38 Carbon Pool for Baseline Carbon pools are AGB, BGB & SOC. The features of the project area are: Lands arenot under forests since 1990 and are either crop or fallow lands. The project area has fallow land. Thus the current land use is fallow land.

39 Project Activity 1 yr old plantation 4yr old plantation CARBON FARMS Growth Rate CAI and MAI for Clone No Age in years CAI MAI

40 C Stock Change under Project Scenario The carbon stock at every 4 years (ITC IISC study). 70 Baseline Project 65 C stock (tc/ha) Baseline Project* C Increment *The C-stock is estimated after deducting emissions from; biomass burning after harvest and fertilizer application

41 Project Activity & C - Stock Change The life time of the project is considered 30 years ( ). Carbon Pool (tc) 600, , , , , , Baseline Mitigation

42 Estimated amount of GHG removals by sinks over the crediting period Annual estimation of net anthropogenic Annual estimation of net anthropogenic Year GHG removals by sinks in tonnes of CO 2 e Year 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

43 Cost Benefits 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 (ITC - IISC study). 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

44 Expected Benefit to Farmers Period Planting Year Area in Ha Total Wood (MT) Total C ertified E mission R eductions (C E R ) (4.86 Lac CER) Value at $4 per CER (19.46 Lac $) Value in ( Lac Rs) CER Value per Ha Per Year of Plantation Rs US $ CER Value per Tonne of Wood per Cycle Rs US $ CER Value per Tonne of Wood per Year Rs US $ 3.52

45 Present Status of ITC CDM Forestry Project Project PDD hosted on UNFCCC web site DEC 2005 Validation over (Took nearly 3 years 2005 to 2008) Project Registered on Verification over 2010 Hosting for issuance of CERs on UNFCCC site Expected Issuance Of CERs by UNFCCC 15 th Dec 2012

46 Opportunities Global Forest by 2050 South Asian countries also can plan the vision i on forestry 2050 Community Managed Forests Protected Forests IUCN IV 1.2 bn ha (40%) (Production) 1.2 bn ha (40%) (Timber Production = 0.5 bn m3) 40 % 40 % 17 % 3 % Managed Secondary Forests 50 mn ha (17%) Timber production = 1.25 bn m3 Plantation Forests 100 mn ha (3%) Timber Production = 1.25 bn m3 The global forest vision 2050 (WWF and World Bank)

47 A/R CDM projects Afforestation and Reforestation (A/R) Projects: C - sequestration project 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) It means annual carbon reduction of GT C - sequestration projects help reduce C0 2 foot print of industry

48 Conventional Farm Forestry vs Agro forestry Wood and food security Spacing = 3 X 1.5 m Plants / ha = 2222 Spacing = 1 x 1.5 x 8.5 m Plants / ha = 2000 Farm Forestry Agro Forestry

49 Issues & opportunities EU ETS Restriction of purchase of T/ L CERs Price of Forestry CERs / VERs very Low No buyers of the project India will reduce emission intensity of its GDP by 20 25% by 2020 in comparison to 2005 level through climate mitigation action Green India Mission enhance C sink in sustainably managed forest by 2020 through A/R, REDD etc mechanism of 20 mn ha in 10 yrs. C-sequestration of 43 mn t CO 2 /yr. Financial resources Rs 44,0000 cr PAT schemes Become Carbon positive Reduce / minimize leakages for project activity Permanence Adoption of Energy efficient technologies in forestry schemes Adoption of Non conventional tech (solar, Wind..) Adoption of forestry programs for reclamation, reforestation, afforestation, rehabilitation and conservation

50 Thank you Carbon Farm on Degraded area