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Case Study: Sustainable Fuelwood and Charcoal Production for the Pig Iron Industry in Minas Gerais, Brazil “ The Plantar Project ” PowerPoint PPT Presentation


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Case Study: Sustainable Fuelwood and Charcoal Production for the Pig Iron Industry in Minas Gerais, Brazil “ The Plantar Project ” ( Sustainable Development Analysis ) Marina T. Mallare Climate Change Information Center November 5, 2003. Outline.

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Case Study: Sustainable Fuelwood and Charcoal Production for the Pig Iron Industry in Minas Gerais, Brazil “ The Plantar Project ”

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Case Study: Sustainable Fuelwood and Charcoal Production for the Pig Iron Industry in Minas Gerais, Brazil

“The Plantar Project”

(Sustainable Development Analysis)

Marina T. Mallare

Climate Change Information Center

November 5, 2003


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Outline

  • A. Overview of the Project “Brazil: Sustainable Fuelwood and Charcoal Production for the Pig Iron Industry in Minas Gerais”

  • B.Sustainable Development Indicators

  • C.Evaluation of the Project


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A. Overview of the “Plantar” Project

  • Project Objectives

    To promote environmentally sustainable socio-economic development in rural Minas Gerais, Brazil;

    To achieve greenhouse gas emissions reductions.

  • Project Location

    Minas Gerais State, Brazil


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Brazil Map


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A. Overview (cont.)

  • Type of Project

    Fuel switching, reducing emissions from charcoal production and afforestation. It involves the following:

    1. Establishment of 23,100 ha of high yielding Eucalyptus;

    2. Reduction of methane emissions during charcoal production;

    3. The regeneration of “cerrado” native vegetation on 478.3 ha of pasture lands.

    .


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Eucalyptus Plantation


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Eucalyptus Trees


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A. Overview (cont.)

  • Project Baseline

    Continuing decline in establishment of fuelwood plantation; ongoing switching to coal and coke for pig iron production and maintenance of pasture onformer natural forest land in Minas Gerais


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Pig Iron


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A. Overview (cont.)

  • Crediting Period

    Twenty-One years: three 7-year “renewal” periods depending on the development in the baseline

  • Estimated CO2 Reduction

    2002 – 2009 : approx. 19,444 – 2,245,108 tonsCO2 /year

    2010 – 2023 : approx. 395,246 & 376,346 tonsCO2/year

    28 years lifetime: 2002 – 2029  12.9 million tons CO2


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A. Overview (cont.)

  • Sources of Emissions Reduction

    1. Establishing new fuelwood plantations;

    2. Reducing methane emissions from charcoal production;

    3. Reducing CO2 and NO2 emissions in pig iron production by switching from coking coal to charcoal;

    4. Regenerating native forest on pasture land.


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A. Overview (cont.)

  • Project Sponsor and Operator

    Plantar, S.A.

  • Project Planning and Assistance

    - World Bank, Brazil

    - World Bank Prototype CarbonFund


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A. Overview (cont.)

  • Project Background

    - Iron and steel is one of the major industries in Brazil traditionally relying on charcoal from native forest to supply the fuel requirements of the pig iron industry;

    - The trend over the past decades has been toward the use of coke as a thermal reducer;

    - Plantar S.A. plans to establish between 2002 – 2009, 23,000 ha of plantation of high yielding provenance of Eucalyptus;


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A. Overview (cont.)

  • Project Background

    -The plantation will be established in blocks of 3,300 ha, repeated each year for 7 years.

    - In the 8th year, the first block will be harvested and wood carbonized ;

    -These trees will regrow from coppice shoots and the growth and harvest cycle will continue for two rotation after which the plantation will be re-established with new seedlings;


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A. Overview (cont.)

  • Project Background

    - Plantar will improve the carbonization process by redesigning the brick kiln;

    - It will also plant 478.3 ha of pasture land on which to proactively restore the native cerrado forest ecosystem.


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B. Sustainable Development Indicators


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B. Sustainable Development Indicators

The CDM project can contribute to sustainability within the host country by:

  • Providing positive gains to man-made capital such as transfer of technology, building infrastructure, or improving efficiency of the economy, OR

  • Improving environmental assets by preserving biodiversity, or improving local air quality, OR

  • Improving social and human capital through creation of employment, raising of living standards and transfer of knowledge.


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B. Sustainable Development Indicators (cont.)

But, at the same time the CDM project should notcontribute to significant depreciation of environmental and social resources, or economic capacity.


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B. Sustainable Development Indicators (cont.)

Specifically, the CDM project can be assessed based on the project impact on the following categories:

  • Greenhouse Gas

  • Economy

  • Environment

  • Disadvantaged Groups


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C.Evaluation of the Project


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C. Evaluation of the Plantar Project

Greenhouse Gas Reduction

  • Reduction of CO2 and NO2 emissions by substituting coking coal with charcoal in the pig iron production;

  • Reduction of emissions from charcoal production by improving carbonization process;

  • Regenerating native forest on pasture land;

( + impact )

( + impact )

( + impact )


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C. Evaluation of the Plantar Project

Greenhouse Gas Reduction (cont.)

  • The project validator, Det Norske Veritas (DNV), cannot ascertain whether the permanence of the carbon sequestration is sufficient to ensure long-term benefits related to the mitigation of climate change;

(- impact )


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C. Evaluation (cont.)

Economy

  • The project will introduce improved technology of carbonization and high quality seedling farm;

  • The project will provide training for better forest management;

  • The project will provide charcoal to small scale pig iron producers;

( + impact )

( + impact )

( + impact )


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C. Evaluation (cont.)

Economy (cont.)

  • Will increase rural employment by shifting to plantation-based charcoal fuel economy from imported coal;

  • Will reduce foreign currency dependence due to less importation of coal;

( + impact )

( + impact )


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C. Evaluation (cont.)

Economy (cont.)

  • Eucalyptus plantations give a lot of work during the first 2 years and generally limited work on the next 5 years;

  • Plantar was fined when the Regional Working Office found 194 workers without any registration during the field visit between March 11-12, 2003;

(- impact )

(- impact )


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C. Evaluation (cont.)

Economy (cont.)

  • Various food products factories closed because of lack of raw materials increasing unemployment;

  • Local communities suffered from the

    restrictions of Plantar on cows grazing on the neighboring lands,including Plantar land;

(- impact )

(- impact )


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C. Evaluation (cont.)

Economy (cont.)

  • Large plantations are not consistent with the land reform objective of distributing the lands and encouraging small-scale agricultural activities;

  • The land occupied by Plantar may be used for

    small scale diversified and ecological agriculture

    that will create more human-friendly jobs with

    better compensation;

(- impact )

(- impact )


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C. Evaluation (cont.)

Environment

  • The effective fire control system established in the sites will reduce the risk in surrounding native forest and recovering forest areas;

  • High yeilding plantations and efficient carbonization reduce the overall plantation area and permit soil recuperation of former planted area;

( + impact )

( + impact )


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C. Evaluation (cont.)

Environment (cont.)

  • The sustainably managed fuelwood plantations will reduce pressure of deforestation on the cerrado;

  • The plantation is enhancing the environmental contribution of forested areas by conserving native forest and gallery forest;

( + impact )

( + impact )


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C. Evaluation (cont.)

Environment (cont.)

  • Permanent preservation areas were not respected;

  • Plantar was responsible for the destruction of

    some cerrado since they cleared some land

    for Eucalyptus plantation.

  • Spring water are contaminated making it unsafe for

    for drinking and killing the animal life in the stream;

(- impact )

(- impact )

(- impact )


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C. Evaluation (cont.)

Environment (cont.)

  • Bad effects of the herbicide and pesticide used;

  • The detour on the road paralyzed the rehabilitation project of Boa Monte Stream protecting the vegetation in the stream and diminished flow and quality of water;

(- impact )

(- impact )


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C. Evaluation (cont.)

Environment (cont.)

  • Plantar operates without environmental clearance;

  • FSC (Forest Stewardship Council) granted in 1998 by the certifier SCS is only valid for 4.8% of the total area of Plantar and does not guarantee “good forestmanagement”

(- impact )

(- impact )


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C. Evaluation (cont.)

Environment (cont.)

  • The short cycle of eucalyptus monoculture

    does not allow any other plant or animal

    such as birds to live within it;

  • 15 –20% still use of native vegetation for charcoal due to lack of control on road;

(- impact )

(- impact )


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C. Evaluation (cont.)

Impacts on the Disadvantaged Group

  • Improved carbonization will reduce particulates and other pollutant ;

  • Workers are trained in appropriate pest control techniques and undertake environmental education;

( + impact )

( + impact )


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C. Evaluation (cont.)

Impacts on the Disadvantaged Group (cont.)

  • Improved health care, better transport facilities

    and recreation activities;

  • Plantar is sponsoring local agriculture schools, and training students in sustainable forestry and agriculture;

( + impact )

( + impact )


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C. Evaluation (cont.)

Impacts on the Disadvantaged Group (cont.)

  • Stakeholders consulted by Plantar live in urban region and are not familiar with the actual sufferings of the local communities;

  • Though not specific to Plantar, the expulsion of Tupinikim and Guarani Indians was the result of the expansion of the plantation sector;

(- impact )

(- impact )


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C. Evaluation (cont.)

Impacts on the Disadvantaged Group (cont.)

  • FSC certifier SCS did not enter into dialogue with local communities during their field work in 1998-2001 while doing the FSC-certification of Plantar;

  • Workers are exposed to dangerous working conditions and health hazards;

(- impact )

(- impact )


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C. Evaluation (cont.)

Impacts on the Disadvantaged Group (cont.)

  • People are expelled from their land to accommodate the plantations resulting to migration to poor neighborhoods of urban centers;

  • Some people were forced to sell due to being isolated and the contamination of water;

(- impact )

(- impact )


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C. Evaluation (cont.)

Impacts on the Disadvantaged Group (cont.)

  • The local people were pressured to sign support for the company; Plantar does not explain the scope and context of the project;

  • Detour on the road is disadvantageous to the local community;

(- impact )

(- impact )


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References/Links

  • PDD of the “Plantar” Project submitted for Validation on Oct 17, 2001; Updated and resubmitted for validation on March 2002;

  • http://www.cdmwatch.org/Plantar%20with%20more%20sigs%202%20june.doc. (a letter addressed to PCF dated May 23 2003 signed by different organizations/citizens);

  • CDM Watch Briefing Paper prepared by:

    Ben Pearson

    CDM Watch, Indonesia

    [email protected]; www.cdmwatch.org;

  • WRM’s bulletin N° 60, July 2002;


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References/Links (cont.):

  • FERN News Release dated Thursday 27 March 2003 ,entitled

    “Brazilian groups urge EU companies not to buy carbon credits from eucalyptus plantation”

  • Contact in Brazil:

    Marcelo Calazans (coordinator), FASE-ES (Espirito Santo) e-mail: [email protected]

  • Contact in Europe:

    Jessica Wenban-Smith, FERN, +32 (0)2 733 0814 email: [email protected]

  • Contact in North America:

    Jutta Kill, FERN, +1 250 799 5386 email: [email protected]


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Thank you!

Marina T. Mallare

Climate Change Information Center

Manila Observatory

Tel. No : 426-59-21

Email : [email protected]


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