REDD+ AND CDM Stakeholders Workshop on Enhancing Capacity for Clean Development Mechanism (CDM) in Nigeria Salisu Dahiru National Coordinator REDD+ November 10 11, 2011
Context : Forests in the UNFCCC Negotiation Process Carbon emissions from the forest sector represent around 20% of total emissions i.e. more than all the world transport 20% of the problem 20% of the solution The forest sector is the 3rd source of Carbon emissions (after energy and industry) The annual emissions from the forests are equivalent to the annual emissions of the USA or China. Without reducing emissions from deforestation (and forest degradation) it is not possible to reach the 2⁰C goal.
Context : Forests in the UNFCCC Negotiation Process (contd.) Year Activity : Milestone 1992 UNFCCC, ratified in 1994 (include a comprehensive role for forests in Annex I countries) 1997 Kyoto Protocol 2001 Marrakesh Accords COP 7 (for developed countries all LULUCF activities, for developing countries only A/R in CDM 2003 COP 9 Milan Modalities and procedures for A/R CDM 2005 Kyoto Protocol ratified, creation of the A/R CDM
Context : Forests in the UNFCCC Negotiation Process (contd.) Year Activity : Milestone 2005 RED negotiation in the Convention (Montreal) 2005 1 st A/R CDM methodology registered (AR AM0001:Reforestation of degraded land) 2007 REDD (including forest degradation) Bali Action Plan 2009 REDD+ : including also forest conservation, sustainable management of forests and enhancement of carbon stocks Copenhagen Accord 2010 Decision on REDD+ : Cancun Agreements
Clean Development Mechanism (CDM) Kyoto Protocol : Annex I obliged to reduce GHG emissions by 5.2% below 1990 levels To achieve this commitment, the Annex I countries have two options; 1) Internal Measures: improving technologies, changing practices, etc; and 2) Flexible Mechanisms: International Emissions Trading (IET), Joint Implementation (JI) or Clean Development Mechanism; Of these 3, only CDM provides option for buying credits from a project in a developing country (CERs)
CDM Project Cycle
CDM Cycle (contd.) CDM cycle involves participation of a wide range of actors, including; Project Developers Designate National Authority (DNA) Designated Operational Entity (DOE) CDM Executive Board (CDM EB); Making the cycle very challenging & complex CDM projects Higher transaction costs Only two forestry activities are eligible under CDM : Afforestation and Reforestation
A/R CDM (contd.) Key Issues Eligible activities in LULUCF until 2012 Units Investors / Buyers Host Countries Principle Size of potential market Explanation Afforestation and Reforestation Temporary and long term Certified Emission Reductions (tcers and ICERs) Annex I countries (public or private) Non Annex I countries (developing countries)) Projects For 1 st commitment period, total additions to a party s assigned amount resulting from eligible LULUCF activities under CDM shall not exceed 1% of base year emissions of that party, multiplied by 5 (1% Annex I emissions in 1990 X 5)
A/R CDM (contd.) Key Issues Small scale projects Entities / Involved institutions Uncertainties Explanation Activities expected to result in carbon removals by sinks of less than 16 kilo tonnes of CO 2 per year and developed or implemented by lowincome communities and individuals Participants Project developers DNA DOE CDM EB Transaction Costs / Methodologies : What will happen after the finalization of the first commitment period in 2012?
Key Elements of A/R CDM rules & procedures Market for A/R CDM limited to during 1 st commitment period to 1% emissions of each Annex I country in 1990 X 5; Eligible activities restricted to Afforestation and Reforestation; Activities in bio energy are considered under Energy sector, not LULUCF, also eligible until 2012; Forest Management and reduced emissions from deforestation are not eligible forestry activities under CDM; Baseline & monitoring methodologies to be presented by project developers and approved by CDM EB
Introduction of REDD+ CDM serves the first commitment period till 2012 and is limited to energy efficient projects and afforestation and reforestation projects only; This is despite the fact that 20 25% of current annual carbon emissions are the result of loss of tropical forest; This evidence prompted re negotiation of climate change policy for the post 2012 to include REDD+; REDD is quite different from CDM, in which
Introduction of REDD+ (contd.) What is REDD+? Reducing Emissions from Deforestation and Forest Degradation, and enhancement of carbon stocks in Developing countries (REDD+) is a collaborative programme among three United Nations Agencies (UNDP, UNEP & FAO) It s main aim is to support and provide incentives to tropical developing countries for the protection and conservation of their standing natural forests, thereby contributing to mitigating climate change and simultaneously promoting sustainable livelihoods for forest dependent communities
What is REDD+ about?
REDD+ Phases and Roles of Multilateral initiatives FCPF Readiness, Quick start UN-REDD Capacity building, Institution strengthening & Local action FIP Large scale, transformational Investment programs FCPF Fund payments
Introduction of REDD+ (contd.) At COP 16 in Cancun last year, a REDD+ decision was made to establish a REDD+ financial mechanism. In the Cancun Agreement, it was agreed that the Scope of REDD+ mechanism would cover all five areas identified in the BAP namely; Reducing emissions from deforestation; Reducing emissions from forest degradation; Conservation of forest carbon stocks; Sustainable management of forest; Enhancement of forest carbon stocks;
CDM and REDD+: The Meeting Points All geared towards forest based Climate Change Mitigation; Complementary to each other; Potential investments portfolios; Community involvement and participation are critical to success; Equity, Efficiency and Good Governance are guiding principles; Nigeria s National REDD+ Readiness Programme approved; Implementation to begin in 2012; An enhanced National CDM will combine with REDD+ to improve Nigeria s Climate Change Mitigation efforts
Concluding Remarks Knowledge and awareness on CDM very low, even among Professionals; Institutional Capacity in Nigeria still low; Policy, Regulations and Guidelines needed urgently; Scale up training, capacity and institutional strengthening, at national, state and local levels; Stakeholder engagement for private sector very critical; Promotion of Investment in CDM and Green Economic Growth important for Nigeria s National Development
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