Management to the Carbon Market:

Transcription

1 Taking Longleaf Pine Restoration and Management to the Carbon Market: An Overview of Forest Carbon Standards and Project Level Carbon Accounting David Shoch TerraCarbon LLC Carbon Sequestration in Longleaf Pine Ecosystems: Current State of Knowledge & Information Needs School of Forestry & Wildlife Sciences Conference Hall Auburn University, Auburn, Alabama 16 February 2010

2 Summary Introduction to TerraCarbon Overview of current carbon market Overview of carbon standards General principles of accounting on forest carbon projects Case study: longleaf management project under Voluntary Carbon Standard and Climate Action Reserve Carbon in the proper perspective

3 Introduction to TerraCarbon Established in 2006 Advisory firm specialized in the land use and forestry sector of the carbon market Operate across all carbon markets Our services: Technical Transaction Strategic advisory Our clients: For-profit and not-for-profit project developers Multilateral institutions Carbon funds Our mission: We provide technical and business expertise to develop high-quality forest and land-based carbon projects that mitigate climate change.

4 Carbon Market update *prices for CCX forestry credits that are traded bilaterally (not on the exchange) are somewhat higher, $0.40-$1.00/ton $1 00/ton

5 3Q 09 SE average stumpage pg Wood Product US$/green ton Pine Sawtimber $26.47 Pine Chip n saw $16.00 Pine Pulpwood $8.00 Hardwood Sawtimber $21.00 Hardwood Pulpwood $7.50 source: Timbermart South 4Q 09 Standard US$/green ton equivalent CCX $0.04 VCS $3.13 $5.47 CAR $6.28 source: TerraCarbon Forest Carbon Market Update Jan 2010

6 Carbon standards

7 Standard Start date Relevant eligible project activities Voluntary Pre-existing projects Afforestation/Reforestation Carbon Standard (VCS) allowed to Jan ; some provisions to permit registration of projects started earlier by Oct /Revegetation ti (ARR) Improved Forest Management (IFM) Reduced Emissions from Deforestation ti and Degradation (REDD) Key considerations Complex additionality testing ti investment t barrier test may preclude stacking year monitoring commitment Climate Action Reserve (CAR) New projects only (provision for registration of pre-existing projects, back to Jan , by April ) Reforestation Improved Forest Management (IFM) Avoided Conversion year monitoring commitment Project Implementation Agreement (PIA) binding agreement between landowner and Reserve Projects on public lands must be approved by the government agency/legislative process Must demonstrate sustainability and natural forest management

8 Carbon Registry (ACR) allowed to Nov ; some provisions to permit registration of projects started earlier (determined d on a case by case basis) Standard Start date Relevant eligible project activities American Pre-existing projects All projects supported by ACR- approved methodologies (including methodologies approved by VCS, CDM and US EPA Climate Leaders) Key considerations 50 year monitoring commitment t Additionality per CAR (regulatory and performance baseline) or per VCS/CDM (regulatory, barriers and common practice test) Chicago Climate Exchange (CCX) On or after Jan 1, 2003 (start t date of the CCX program) Afforestation Phase 2 ends in 2010 Managed Forest Projects likely l to be renewed Combined Forestation and Project developers with Forest Conservation Projects direct emissions must also enroll as a member with an emission reduction commitment No leakage or additionality (beyond regulatory)

9 Accounting carbon benefits

10 Net emissions reductions = actual stock change minus baseline stock change minus leakage/ secondary effects minus non-permanence buffer withholding/buffer pool contribution

11 General principles (from IPCC GPG) Inventories that are: Transparent Documented Consistent and comparable over time Complete Subject to quality control and assurance Accurate (through assessment and reduction of uncertainties) Efficient in the use of resources

12 General approach to accounting on forest carbon projects simplification while maintaining accuracy/conservatism Principles of systems ecology, stock change accounting Time average flows (e.g. inputs to wood products pool under CAR) Coarse definition of pools (e.g. SOM not disaggregated into active, slow and passive fractions) Optional pools that can be excluded on the basis of: Conservatism (e.g. soil C on afforestation projects) De minimis (exclusion for emissions (in sum) representing <5% of total, e.g. loss of herbaceous biomass in site prep)

13 Estimating stocks Above and belowground live tree biomass direct measurement (dbh, height) with allometry Standing dead wood direct measurement with volume and wood density determination Lying dead wood volume determination with line intersect, perpendicular distance, point relascope and fixed area plot sampling Woody and herbaceous understory destructive sampling in clip plots Leaf litter destructive sampling Mineral soil carbon destructive sampling

14 VCS forest project monitoring requirements To date no VCS-approved methodologies for IFM Required pools: All pools expected to decrease in with-project case and representing >5% of total emissions Dead wood and wood products pools where project reduces timber harvest QA/QC Plan Further details will depend on validation of methodologies

15 CAR forest project monitoring requirements Required pools: Live (above and belowground) tree biomass Shrubs and herbaceous (Reforestation only) Standing dead wood Soil carbon (only if significant soil disturbance) Wood products Forest products in landfills (only if harvest below baseline) Measurements and analysis must conform to USFS FIA Component Ratio Method starting with bole volume (Jenkins et al 2004) Inventory with temporary or permanent plots Inventory updated every < 12 years (can use modeling with limited ground validation) 90% CI cannot exceed 20% of the mean (confidence deductions applied from 5-20% of mean)

16 Case study: conversion of short-rotation slash pine to uneven-aged longleaf

17 Case study: conversion of short-rotation slash pine to uneven-aged longleaf 100 ha (247 acre) project area in northwest Florida Private commercial forest land with slash pine in 25- year pulp rotation Purchase or easement Staggered group selections over 20 years replanted in longleaf

18 Framing the project Restoration of non-forest land: ARR (VCS), Reforestation (CAR) Forest management, e.g. shifting commercial forest land to uneven-aged longleaf: IFM (VCS and CAR) Protection, through e.g. acquisition or easement: REDD (VCS), Avoided Conversion (CAR)

19 VCS general process for project registration Project scoping: assess project against Eligibility criteria and definition of project area Start date Crediting period (length of monitoring responsibility) Additionality tests (regulatory, barriers and common practice) Cost:benefit analysis Develop and submit VCS Project Description (PD) using an approved methodology Third-party validation Project registration Periodic monitoring and third-party verification Periodic registration and issuance of Voluntary Carbon Units (VCUs)

20 CAR general process for project registration Project scoping: assess project against Eligibility criteria and definition of project area Start t date Additionality (regulatory, performance) Cost:benefit analysis Initial inventory and monitoring plan Develop and submit Forest Project Design Document and Project Implementation Agreement 3 rd party verification at project start Annual reporting Periodic (< 6yrs)3 rd party verification and issuance of Climate Reserve Tons (CRTs); in between CRTs can be issued on basis of 3 rd party desk reviews

21 VCS project baseline for IFM Baseline modeled to reflect common practice on similar lands, historic practices, management plans (similar to CAR baseline on public lands) Baseline re-validated every 10 years (live tree, dead wo ood, long gterm wood pr rod)

22 CAR performance baseline for IFM initial stocks above common practice Common Practice : avg standing live stock/acre in assessment area (based on FIA data for sub-state region/forest type) = minimum baseline Baseline fixed for 100 years ood, rod) e tree, dead wo gterm wood pr (live long Initial stocks Common practice

23 CAR performance baseline for IFM initial stocks below common practice High stocking reference = 80% of highest stock in past 10 years Minimum baseline = high stocking reference or initial stocks, whichever is higher (live tree, dead wo ood, long gterm wood pr rod) Common practice Baseline

24 Carbon in the proper perspective

25 ATLAS and FORCARB modeled estimates using USFS FIA data Smith et al Methods for calculating forest ecosystem and harvested carbon with standard estimates for forest types of the United States. USDA Forest Service.

26 Some results from measurement of longleaf carbon pools p Mean aboveground live tree biomass in mature stands: t C/ha, 73 C/ha Greenwood Plantation Big Woods, Thomasville, Georgia (SI 68) 44.7 t C/ha, Patterson Natural Area, Eglin Air Force Base, Florida l d (SI 65)

27 Some results from measurement of longleaf carbon pools Mean carbon in other pools (15 y to mature stands on loamy sands SIs 60-80, sampled in Georgia at Fort Stewart, Thomasville, Decatur Co): Lying dead wood:1.2 t C/ha (range: t C/ha) 1.0 t C/ha (thinned stands) 0.2 t C/ha (un-thinned stands) Woody and herbaceous understory: 2.22 t C/ha Litter: 2.6 t C/ha (up to 6.4 t C/ha on 15 y un-burned site) Mineral soil carbon (top 30 cm): 0.2 t C/ha/yr / from inferred chronosequence

28 Max SDI = Max SDI DBH stems/acre

29 Treat carbon as a complement to other forest revenue streams Mitigation banking Pine straw raking Limited timber harvest under CAR, stocks cannot drop below baseline or <80% of initial stocks, whichever is higher State and federal cost-share share programs - Under VCS, beware how stacking may affect outcome of investment barrier additionality test

30 Contact Information David Shoch Office: