What is REDD and the other carbon mechanisms?

Transcription

1 What is REDD and the other carbon mechanisms? What is REDD and other carbon finance mechanisms (REDD, CDM, VCS)? An overview of the forest carbon market in 2011 Matthieu Thibergien, Clovis Grinand, Programme Action Carbon, Fondation GoodPlanet Roissy in 9 the novembre Methods for Biomass Estimation and Forest-Cover Mapping Tropics: From Carbon Policy to Technical Training Kigali, Rwanda 22 June

2 Outline 1. Climate Change and project based mechanisms The Kyoto Protocol, Carbon Market and CDM 2. Forestry projects In the Regulated and Volontary Market 3. Focus on REDD+ State, Challenges and an Example Conclusion

3 The Kyoto Protocol A world «bi-polarization» Annex 1 Non-Annex 1

4 The Kyoto Protocol 1990 : First IPPC Report (Intergovernemental Panel on Climate Change) 1992 : Signature of the United Nations Framework Convention on Climate Change (UNFCC) by 154 states in Rio of Janeiro 1997 : Adoption of the KP 2005 : Application of the KP for the period Sets the objectives and means to implement UNFCCC Commitment of 38 industrialized countries (Annexe 1) Reduction of 5% of 6 GHG emission (CO2,CH4,N20,HPC,PFP,SF6) from the 1990 levels Introduce 3 flexibility mechanisms

5 The Kyoto Protocol Flexibility mechanisms Reduction commitment (in : 95% of the 1990 level) Annex 1 Countries Emission Trading Joint Implementation Annex 1 Countries An accounting system to demonstrate reduction effectiveness Annex 1 Countries Non-Annex 1 Countries Clean Development Mecanism Locatelli, 2005

6 The Kyoto Protocol Flexibility mechanisms Reduction commitment (in : 95% of the 1990 level) Annex 1 Countries Emission Trading Joint Implementation Annex 1 Countries An accounting system to demonstrate reduction effectiveness Annex 1 Countries Non-Annex 1 Countries Clean Development Mecanism Locatelli, 2005

7 CDM : principle and key figures Rational : Reduction of emissions can be more cost effective in developing countries than in developed countries with the same effect on climate Most popular mechanism under the KP: transfer of clean technology and expertise etc registered projects in , 6320 expected up to 2012 More than 20 project types including energy, transport, building, agriculture, forest, etc..

8 Projects Examples Biogaz in India Project Start : April 2008 Activity , 6000 biogaz reservoirs built beneficiaries 6 tonnes of avoided CO2e /reservoir/year Compost in Madagascar Project Start : April 2006 Activities , 2400 t compost generated from 9600 t of waste 190 jobs created tons CO2e avoided in 10 years

9 CDM in the carbon market CDM : $US million in 2010 (15% of Global carbon market) Carbon Market Volontary Market Regulatory Market VCS Gold Standard CCX Plan Vivo CCB Other... Kyoto Protocol (ET/JI/CDM) Transaction Volume ($US Million) Source :Ecosystem Marketplace, Bloomberg New Energy Finance

10 CDM Project Location Source : 75% of the CDM projects are located in Mexico, Bresil, China and India Essentially HFC and N20 projects (in volume transacted) 61 registered project in Africa (2%), 105 in the pipeline, less than half in Subsaharian Africa

11 CDM : a complex process! Project Host Country Approbation letter Share CER emitted in agreement with the project developper and host country Project Developper Caculate the baseline and prepare a Document Project Control emissions during the project and calculate emissions reductions Executive CDM Board Emit Carbon Credit Register validated projects Validate baseline and methodologies Accredite certification organisme (Operational Entities) Validation report and project registration Verification & certification report and emission of carbon credit request Send application document for validation and registration -->Request validation of the emission reduction Designated Operationnal Entity Validate CDM projects and transmit the candidate project to the Executive CDM board Verifie et certifie emissions reductions

12 Outline 1. Climate Change and project based mechanism The Kyoto Protocol, Carbon Market and CDM 2. Forestry projects in the Regulated and Volontary Market 3. Focus on REDD+ State, Challenges and an Example Conclusion

13 The Forest in the carbon Market CDM allows developed countries to meet their mandated reduction targets by financing Afforestation & Reforestation activities in developing countries. Does it work?

14 The Forest in the carbon Market Only few CDM AR : 1 in 2009, 11 in 2010, 22 in may waiting registratrion Registered CDM AR projects represent less than 0,7% of the number of projects and 0,2% of the CER volume Not even 1 CER issued!

15 The Forest in the carbon Market Reasons of relative failure : Complicated methodological requirements Non permanence of credits (tcer) very little numbers of buyers Lack of technical expertise (both developers and validators) But many projects to come before 2012 Source:

16 Voluntary Market more suitable for forests? Simplified procedures Possibility to provide permanence to CER (buffer mechanism) More than carbon credits only (biodiversity, social, community etc.) A widespread portfolio of forest projects for projet developers, including: Afforestation/Reforestation Agroforestry Improved Forest Management Reduction of Emission from Deforestation and Degradation (REDD+)

17 Volontary Market more suitable for forests? Forest Projects represent 42% of the Volontary Market volume Africa has already registered numerous projects Source: Source :Ecosystem Marketplace, Bloomberg New Energy Finance

18 What is the trend? REDD+ is evolving quickly (policies, methodologies, etc.) and at the top of the agenda in the negociations Voluntary market plays a crucial role through pilot / demonstration activities Historical transaction volumes, forest and other land use projet

19 Outline 1. Climate Change and project based mechanism The Kyoto Protocol, Carbon Market and CDM 2. Forestry projects in the Regulated and Volontary Market 3. Focus on REDD+ State, Challenges and an Example Conclusion

20 Focus on REDD : COP 11 RED is on the agenda 2007 : COP 13 Bali : Bali Action Plan 2009 : COP 15 Copenhagen : Draft on REDD : COP 16 Cancun : Global decision on REDD+ implementation : The seed for Redd are planted

21 The roots and evolution of REDD+ Deforestation = 15-18% of greenhouse gas emissions, or about 5.8 billion tonnes of CO2 equivalent released into the atmosphere, each year (more than global transport and aviation combined Discussions on a global mechanism involving developing countries: Deforestation => RED Deforestation & Degradation => REDD Deforestation & Degradation & Conservation & Sustainable Management & Enhancement of forest carbon stocks => REDD+ REDD+ widespread the eligible forest activities : 2 billions of ha of forest concerned out the 4 billions ha world forest More than cutting emissions, REDD+ is a multiple benefits option: help fight poverty while conserving biodiversity and sustaining vital ecosystem services.

22 Carbon Accounting in the REDD+ Developing countries has to define and implement a national REDD+ strategy Monitoring the past and actual deforestation is key for baseline establishment and evolution of carbon stocks!!? Insufficient and inconsistent world dataset need spatially explicit dataset Source : Forest Ressource Assessment 2010 FAO

23 Carbon Accounting in the REDD+ Start of project activities Crediting Period Carbon credits m t a e ht ot s noi ssi me C Reference Period Monitoring, Reporting and Validation Deforestation and degradation change detection Baseline or without project scenario With project scénario 20 Time (years)

24 The REDD+ Challenges Tangible progress amongst countries (several national strategies validated, new VCS methodologies, first REDD+ carbon credits emitted ) But issues remain!! 1. Scope what should be included in the definition of REDD 2. Measurement, reporting and verification => leakage, permanence and additionality 3. The rights of indigenous people => participation, land tenure, distribution of funds 4. Financing options: government funded or market based or mechanism? 5. Institutional arrangements whether REDD activities must be considered National or project level activities.

25 A REDD+ project Example Intervention Sites ha on 5 sites Legend ha of spiny moist forest HCPF Sites Background Missouri Botanical Garden Andapa/Bealanana ha of spiny forest Fandriana/Marolamb o Ivohibe Vondrozo Fort-Dauphin PHCF / Sitraka Ranoeliarivao

26 A REDD+ project example Carbon accounting : Improving knowledge at all levels Forest Inventory Soil organic carbon measurement Establishment of allometric regression Land cover & Land Cover change mapping Lidar mission & biomasse mapping Soil carbon mapping from remote sensing GoodPlanet/Romu ald Vaudry HCPF / Tahiana Rajosarim alala PHCF / Lova Rakotovao

27 Outline 1. Climate Change and project based mechanism The Kyoto Protocol, Carbon Market and CDM 2. Forestry projects in the Regulated and Volontary Market 3. Focus on REDD+ State, Challenges and an Example Conclusion

28 Conclusion To date: Africa has not benefited from CDM Voluntary market is more suitable for forestry projects (and african projects) REDD+ only accepted under voluntary schemes so far Post kyoto agreement? REDD+ included in post Kyoto agreement? REDD+ as a key driver to mitigate climate change but involves many political, economical, social and technical challenges