Carbon Finance Opportunities for Sustainable Land Management in Urban GHG Mitigation Framework

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1 Carbon Finance Opportunities for Sustainable Land Management in Urban GHG Mitigation Framework Rama Chandra Reddy Monali Ranade Carbon Finance Unit May 13, 2009

2 Overview Urban GHG Mitigation Framework SLM in urban GHG Mitigation Areas of SLM in Urban GHG mitigation Composting Agricultural soil carbon sequestration Urban Forestry Conclusions

3 GHG in Urban Sector Municipal Areas Greenfield / Existing Services Wastewater Solid Waste Public Transport Buildings Characteristics of an urban program: a. Single Responsible agency for design, implementation and monitoring b. Baseline spans the urban area, current and projected growth c. Similar barriers for different activities d. Largely same group of stakeholders e. Strengthen on-going programs f. Uniform funding channels g. Significant carbon saving potential Metered Services Renewable Green areas

4 CDM Project Cycle 9. End of contract period (may be post-2012) 8. Issuance of credits by CDM EB (Certification and Issuance) 1. Project identification 7. Verification of generated emission reductions by an accredited verifier 2. Preparation of project documentation applying an approved methodology for calculating emission reductions (Project Design Document) 6. Construction and start up 5. Acceptance of project by the CDM EB (Registration) 4. Negotiate and sign Emission Reductions Purchase Agreement (ERPA) 3. Validation of project documentation by environmental auditor accredited by Clean Development Mechanism Executive Board (CDM EB) Project sponsor Accredited auditor CDM Executive Board Bank Carbon Finance Unit

5 Removals ktco2e) Emissions (ktco2e) Emission Reduction Projects Energy projects Baseline emissions Project emissions Reduced emissions Years Emission Removal Projects Land Use Projects Monitoring Plan Baseline removals Project removals Increased Removals Monitoring Plan Years 5

6 SLM in Urban GHG Mitigation City authorities need to make long-term and irreversible decisions on land use to meet competing demands of urban growth Growing urbanization calls for effective use of available land resources in terms of location decisions and on meeting urban consumption demands Sustainable land management is a major element in urban planning in terms of land use and production activities

7 Urban Composting

8 Composting: Approved CDM Methodologies Large-scale AM0025. Avoided landfill emissions (methane) from anaerobic decomposition of organic waste through alternatives, incl composting Methodology applies to avoidance of methane from landfill, including aerobic composting Avoided emissions tied to landfill, as baseline condition First order decay (FOD) model: waste composition, ambient temp. / precipitation, methane correction factor Small-scale AMS-III.F. Avoidance of methane production from decay of biomass through composting (< 60,000 tco 2 e/yr)

9 Composition & Moisture Content Income Level Material Low Middle High Food 40-85% 20-65% 20-50% Paper 1-10% 15-40% 15-40% Recyclables 4-25% 5-26% 11-43% Fines 15-50% 15-50% 5-20% Moisture 40-80% 40-60% 20-30%

10 Sample ER Calculations: AM0025 Baseline Scenario - Waste quantity: 750 tons per day - Organic fraction: 64% o Food (55%) & Paper, Wood, Garden (3% each) - Degradable Organic Carbon, Fraction: Methane Correction Factor: Compost Efficiency: 95% - Crediting period: 7 yrs

11 Sample ER Calculations: AM0025 Total ERs: 7-yr Crediting Period Temperature / Precipitation Temperate (MAT< 20 o C) Tropical (MAT>20 o C) Wet (MAP>1,000 mm) 476,500 tco 2 e 695,000 tco 2 e Dry (MAP<1,000 mm) 214,350 tco 2 e 281,150 tco 2 e

12 Soil Carbon Sequestration in Peri-Urban Agriculture

13 Measuring and monitoring soil C sequestration: a new challenge? Soil survey maps as useful tools for assessment of soil carbon stocks Cost-effective methods for detecting changes in soil organic carbon as a result of changes in management needed considering its temporal and spatial changes

14 Methodology for Agricultural Land Agricultural activities Production Reduced tillage Cover crops Residuals Manure Fertilizer use Biomass burning Fossil fuel use Management Model long-term soil organic carbon (RothC or CENTURY), modified IPCCC Tier 2 approach Convert the long- term to transitional soil organic carbon using 20 year moving average Measure biomass in woody perennials 14

15 Emissions and Removals in Agricultural Land Management Emissions CO 2 Biomass removal Land clearing Tree cutting Soils Fossil fuel use CH 4 Manure Biomass burning Fossil fuel use N 2 O Manure Fertilizer use N-fixing species Biomass burning Fossil fuel use Removals C Sequestration Improved agricultural management 15

16 Simplified Approach for Assessment of soil Carbon Sequestration at Landscape Level tc/ ha/ yr for low crop production Residues removed from the field Residues left in the field Residues removed & 1 tc/ ha/ year of manure distributed Residues removed & 2 tc/ ha/ year of manure distributed Residues removed & 4tC/ ha/ year of manure distributed Residues left & 1 tc/ ha/ year of manure distributed Residues left & 2 tc/ ha/ year of manure distributed Residues removed from the field Residues left in the field Residues left & 4 tc/ ha/ year of manure distributed Residues removed & 1 tc/ ha/ year of manure distributed Residues removed & 2 tc/ ha/ year of manure distributed

17 Urban Forestry

18 Small scale Methodology for Afforestation & Reforestation on Settlements Large Scale AR-ACM0001: Approved consolidated afforestation and reforestation baseline and monitoring methodology The A/R CDM project activity is implemented on degraded lands or to continue to degrade in the absence of the project; Small scale AR AMS0002: Simplified baseline and monitoring methodologies for small-scale afforestation and reforestation project activities under the CDM implemented on settlements. Project activities settlements include: (i) Transportation infrastructure: Land strips along streets, country roads, highways, railways, overhead power cables etc. (ii) Human settlements: Residential and commercial lawns (rural and urban), gardens, golf courses, athletic fields, parks, provided such land is functionally or administratively associated with particular cities, villages or other settlement types and is not accounted for in another land-use category.

19 Carbon pools Trees 1. Above-ground biomass 2. Below-ground biomass 3. Dead wood 4. Litter 5. Soil organic carbon Non-Trees SOC

20 Conclusions Carbon market access and scale up potential is a source of revenue for urban agencies (programmatic approach) Composting: Growing interest to avoid methane generation Soil Carbon sequestration: contributes to increased land productivity and promotes conservation agriculture closer to urban consumer A source of climate change adaptation e.g. enhanced soil carbon stocks reduce vulnerability to extreme weather events Urban Forestry: Urban tree planting activity can be a source of land use mitigation action