Forest carbon accounting under the Kyoto Protocol and REDD+

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1 Forest carbon accounting under the Kyoto Protocol and REDD+

2 Accounting vs Reporting Accounting for (LULUCF activities) Context: paragraph 1(c) of the Principles of 16/CMP.1, where it states: That the aim stated in Article 3, paragraph 1, of the Kyoto Protocol not be changed by accounting for land use, land-use change and forestry activities. Parties to the Kyoto Protocol to account for certain LULUCF activities to meet their emission reduction commitments under KP Article 3. This is different to reporting on LULUCF, which is a requirement (commitment) for all Parties to the UNFCCC (both Annex I and Non-Annex I Parties) in their national inventories (see Convention Article 4.1(a)).

3 REDD-plus REDD+ mitigation activities as defined by Dec. 1/CP.16 Conservation Deforestation Enhancement of forest carbon stock Degradation Sustainable management of forests Deforestation National activities for non-annex I Parties

4 REDD+ in a UNFCCC/IPCC: Rules of the Game REDD-plus: Decision 4/CP.15 Decision 4/CP.15: Methodological guidance for REDD-plus Par. 1 Requests developing country Parties,.. to take the following guidance into account.. to measurement and reporting: c) To use the most recent Intergovernmental Panel on Climate Change guidance and guidelines, as adopted or encouraged by the Conference of the Parties,..

5 IPCC Guidelines for National GHG Inventories Revised 1996 IPCC Guidelines 2000 Good Practice Guidance and Uncertainty Management(GPG2000) Good Practice Guidance for Land Use, Land-Use Change and Forestry (GPG-LULUCF) 2006 IPCC Guidelines for National Greenhouse Gas Inventories(2006 IPCC Guidelines)

6 Forestry in KP KP forestry mitigation activities as defined by Art. 3.3 and 3.4 Forest management Deforestation Reforestation Afforestation Forest management Deforestation National activities for Annex I Parties

7 Forestry in UNFCCC Land Classification under UNFCCC Wetland, Settlement, Other land Managed forestland Managed grassland Unmanaged forestland Unmanaged grassland Cropland Six land use categories >12 sub-categories > sub-divisions

8 Forestry in KP Land Classification under KP: RV D Wetland, Settlement, Other land Managed forest Managed grassland FM AR CM GM GM RV D Unmanaged forest Unmanaged grassland RV D Cropland management Six land use categories with activity based reporting

9 Forestry accounting rules in KP 3.3 (ARD) Accounting (gross-net) shall begin with the onset of the activity or the beginning of the CP, whichever comes later. If during the first commitment period ARD activities result in net emissions, these can be compensated with removals from FM, if elected, up to 9.0 M t C times (FM, CM, GM, RV) Activities subject to election by the Party FM: gross-net accounting with cap. Emissions and removals from FM can be included in the accounting only up to a cap value times five. The cap is symmetrical (is valid also for emissions), includes also FM activities under Article 6 and it is applied after any compensation for emissions from ARD. CM, GM and RV: net-net accounting.

10 Accounting : net-net vs gross-net Net-net system Carbon stocks Reference period Implementation period Reduced emission time

11 Accounting : net-net vs gross-net Gross-net system Carbon stocks reference level start Implementation period end removals emissions time

12 REDD-plus accounting? REDD-plus has been recognized as a potential mitigation mechanism under UNFCCC-LCA but until now still no negotiations on REDD-plus accounting. However in the current REDD-plus decision texts there are several indications that are suggesting that REDD-plus accounting will be similar to the accounting for LULUCF of Annex-I Parties (e.g. activities based approach, national scale, etc.). In this scenario REDDplus will be used for Annex-I Parties emissions off-set, but several limitations will be included in the accounting rules.

13 Expectations under REDD-plus This indicates that sustainable forest management with reduced-impact logging helps to protect above-ground biomass. In absolute terms, a conservative amount of 10.5 t C/ha per year, as documented using the methodology developed in this study, can be attributed to the different management systems, which will be of interest when implementing REDD+ that rewards the enhancement of carbon stocks.

14 Expectations under REDD-plus Calculating with a price of 14 per ton of CO2 (as currently traded on the European Energy Exchange market) reveals that the C sequestration potential by enrichment planting in selectively logged forest could achieve a market value as high as 2,065 3,879 ha for a project duration of approximately 60 years. Compared to the profitability of converting selectively logged forest into palm oil plantations (2,817 7,075 over a 30 year period) the revenue from C credits is still lower.

15 T h a n k y o u