Case Study: Opportunities for Carbon Forestry Activities in France. 2 degrees Webminar 09th of June 2010 Carbon Management Working Group

Transcription

1 Case Study: Opportunities for Carbon Forestry Activities in France 2 degrees Webminar 09th of June 2010 Carbon Management Working Group 1

2 CDC Climat, the newest subsidiary of Caisse des Dépôts 3 fields of expertise Market infrastructures Trustworthy financial services: VCS register for voluntary offset, REI (registry backoffice), Seringas (national registry software), GCP (carbon asset back-office, in the project stages) Carbon market operators : BlueNext exchange (40%) Investments in carbon assets Carbon funds : European Carbon Fund, Post-2012 Carbon Fund, Fonds Capital Carbone Maroc Domestic projects Broker: Sagacarbon (wholly owned subsidiary) Research Three areas: European Union Emissions Trading Scheme Role of regional authorities Project based mechanisms Expertise, conferences and publications 2

3 Objectives Understand the context: Forestry projects in Annex 1 countries Evaluate the potential in France: Types of projects? How much carbon in the medium term? Is it feasible though? : Challenges and perspectives 3

4 Kyoto balance of the French Forest in 2008 No-loose target for reforestation/deforestation Ceiling for forest management Net sink (83 971,21 ktco 2 eq) Net sink (1,242 ktco 2 eq) 4

5 What happened to forestry JI in France? JI principle: the state must surrender Kyoto units (AAUs) The case of New Zealand 3.3 positive balance Land-use changes included in the ETS: allocation to forest owners, offset credits for reforestation 3.4 accounting not elected The case of France 3.3 balance close to zero, state of uncertainty 3.4 accounting elected 5

6 Current valuation of Forest carbon in France 4 mitigation levels, 2 are currently valued, one partly Forest Carbon Stock Forest: Mm 3 of standing wood Annual growth: 103 Mm 3 Total annual harvest: 67,7 Mm 3 Self-consumption 22 Mm 3 (firewood) Commercialised harvest 37,7 Mm 3 Dead wood and losses 8 Mm 3 Wood products carbon stock Energy 2,8 Mm 3 Industry 12,2 Mm 3 (paper and boards) Timber 22,7 Mm 3 (building and woodworks) Material substitution Energy substitution 2 out of 4 effets could be valued in the voluntary markets 6

7 Markets and beneficiaries (the case of France) Mitigation effect Energy substitution Product substitution Wood product sequestration Forest sequestration Relevant market Compliance Compliance Voluntary Voluntary or compliance Who currently has the incentive? Energy producer Final user (eg. construction) None None 7

8 Potential voluntary standards Additionality Permanence Double counting A/R, IFM, LLWP Buffer approach Certification of the retirement of AUs from the national accounts Performance Criterion Ex-post credits A/R, IFM, LLWP Ex-post credits 20 % buffer A/R only Standard negotiateswiththe DNA to deal withdc Ex-post and ex-antecredits Forestryprojects Not crediting Otherbenefits: Biodiversityand communitary 8

9 Feasible? Under which standard? 9

10 How much carbon in 25 years? Project level Certifiable in VCM FS+ LLWP= 84 tco 2 /ha = 3,4 tco 2 /ha/year Certifiable in VCM LLWP= 3,1 MtCO 2 = 120 ktco 2 /year 10

11 How much carbon in 25 years? National level ha/year 36 MtCO 2 e in 25 ans ha/year 20 MtCO 2 e in 25 ans 11

12 Challenges ahead Change prospects Distribution of existing carbon value Valuing carbon stocks (forest and wood products) on voluntary markets Valuing carbon stocks on compliance markets Challenges on voluntary markets Double-counting Methodology development and validation Tools to assist forestry owners in project development Additionality Stakeholder organisation Establishment of department/regional project pools 12

13 Club Carbone Forêt-Bois Carbon Forest & Wood Club (CFWC) Research and development teams Corporate and public sponsors Federation of research efforts on forest carbon in Annex 1 countries Analysis of existing mechanisms Learning by doing Past projects Pilot projects Development of economic tools methodologies other mechanisms 13

14 Q & A 14

15 Thank you for your attention The full report is available at: at_en_getting_carbon_value_out_of_the_forest_a nd_wood_sector.pdf To know more about the Carbon Forest & Wood Club Bois-The-Forest.html?lang=en Contact: Mariana Deheza, 15