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A/R CDM projects : modalities, implementation and progress Igino M. Emmer

A/R CDM projects : modalities, implementation and progress Igino M. Emmer. EUSTAFOR workshop Forestry & EU ETS Brussels, 26 June 2008. Contents. CDM A/R – Modalities & Procedures CDM A/R methodologies and tools CDM A/R - State of affairs, example and future. CDM concept.

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A/R CDM projects : modalities, implementation and progress Igino M. Emmer

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  1. A/R CDM projects :modalities, implementation and progressIgino M. Emmer EUSTAFOR workshop Forestry & EU ETS Brussels, 26 June 2008 EMMER INTERNATIONAAL

  2. Contents • CDM A/R – Modalities & Procedures • CDM A/R methodologies and tools • CDM A/R - State of affairs, example and future EMMER INTERNATIONAAL

  3. CDM concept • 1 of 3 flexible mechanisms • Reduce GHGs combined with sustainable development • Additionality • Environmental integrity • Social responsibility • Governed by CDM Executive Board • Political • Technical • CDM A/R only forestry category admitted EMMER INTERNATIONAAL

  4. A/R CDM Modalities & Procedures Issues addressed: • Definition of Afforestation and Reforestation • Project boundaries • Permanence (temporary credits) • Quantification • Validation and verification • Environmental and social sustainability  Baseline and Monitoring Methodology EMMER INTERNATIONAAL

  5. Beyond Modalities & Procedures • Ownership • Legal and institutional feasibility • Carbon contracts • Economic viability • Carbon finance merely additional income • Additional certification schemes • CCBA, FSC • Environmental and social sustainability – plus This is where the market creates standards EMMER INTERNATIONAAL

  6. Role of EB and ARWG • New Methodologies • Procedures • Clarifications EMMER INTERNATIONAAL

  7. A/R CDM methodologies Ex ante • Boundaries • Land eligibility • Permanence • Baseline scenario • Project emissions • Leakage Ex post • Monitoring CC = PR – PE – L - BR EMMER INTERNATIONAAL

  8. A/R CDM methodologies • 100+ pages • Requires significant expertise • Simplifying features for small-scale projects • PDD • Document based on which the project is registered • Explains how project applies the methodology EMMER INTERNATIONAAL

  9. Subjects/“Modules” in Methodologies • Miscellaneous • Relevance of carbon pools and emissions/removals • Stratification • Identification of "degraded or degrading" land • Project boundaries • Project emissions/removals • Emissions due to clearing and burning of existing vegetation • Emissions from fossil fuel use in projects • Emission of N2O due to N fertilisation • Changes in DOM due to the project EMMER INTERNATIONAAL

  10. Subjects/“Modules” in Methodologies – cont. • Baseline assessment • Assessing additionality • Identifying the baseline scenario • Removals by trees and shrubs in the baseline • Leakage • Leakage due to the displacement of pre-project activities • Use of non-renewable wood (e.g. fencing) • Monitoring EMMER INTERNATIONAAL

  11. ARWG tools (11) – hand-out • Tool for the Demonstration and Assessment of Additionality in A/R CDM Project Activities ("Additionality tool") • Combined tool to identify the baseline scenario and demonstrate additionality in A/R CDM project activities ("Combined tool") • Procedures to demonstrate the eligibility of lands for afforestation and reforestation CDM project activities • Tool for testing significance of GHG emissions in A/R CDM project activities ("Significance tool") • Estimation of emissions from clearing, burning and decay of existing vegetation due to implementation of a CDM A/R project activity ("Oxidation tool") EMMER INTERNATIONAAL

  12. ARWG tools – cont. • Estimation of GHG emissions related to fossil fuel combustion in A/R CDM project activities • Estimation of GHG emissions related to displacement of grazing activities in A/R CDM project activity ("Leakage tool") – V2 • Procedure to determine when accounting of the soil organic carbon pool may be conservatively neglected in CDM A/R project activities • Estimation of direct nitrous oxide emission from nitrogen fertilization • Calculation of the number of sample plots for measurements within A/R CDM project activities • Calculation of GHG emissions due to leakage from increased use of non-renewable woody biomass attributable to an A/R CDM project activity EMMER INTERNATIONAAL

  13. CDM A/R – State of affairs EMMER INTERNATIONAAL

  14. CDM A/R – State of affairs EMMER INTERNATIONAAL

  15. CDM A/R – State of affairs • 10 Approved methodologies + 1 Consolidated meth • 0 Methodologies under review • 3 Approved ssc methodologies (covering all 4 sectors requested by COP) • 1 Project registered: AR-AM0001 (China) • 0 Requesting registration • 14 Under validation – normal scale • 10 Under validation – small scale (but there are more in the pipeline) EMMER INTERNATIONAAL

  16. Example: Carbon sequestration through reforestation in the Bolivian tropics by smallholders 1500 farmers 6000 hectares Indigenous species Local NGO EMMER INTERNATIONAAL

  17. (Example) Land eligibility EMMER INTERNATIONAAL

  18. (Example) Land eligibility EMMER INTERNATIONAAL

  19. Economic sustainability EMMER INTERNATIONAAL

  20. (Example) Non-permanence • Crediting period: 21 years – fixed • Temporary credit: tCER • Economic sustainability: • Long-term: timber contracts • Intermediate term: carbon finance • Social sustainability: Project structure with farmer’s federations EMMER INTERNATIONAAL

  21. (Example) Contracting • 1500 farmer families • Local NGO: CETEFOR • ERPA: Annex 1 Gvt • Timber: Netherlands green investment scheme • Joint venture established in Bolivia EMMER INTERNATIONAAL

  22. (Example) Bottlenecks • Private-public interface • DNA – Letter of Approval • Rigid legal arrangement in ERPA with Gvt • Field planning versus PDD requirements • PDD requires fixation of project boundary • Gradual commitment of farmers • Interpretation of modalities • Size of small-scale projects • Whether or not to monitor leakage EMMER INTERNATIONAAL

  23. (Example) Importance of pre-feasibility assessment • Risk of non-permanence • Economic feasibility • Social, institutional & legal feasibility • Kyoto compliance EMMER INTERNATIONAAL

  24. (Example) (Dis)Advantage Advantages • Delivers sustainable environmental, economic and social benefits as intended by the CDM Disadvantage • Complex legal structure compared with large-scale EMMER INTERNATIONAAL

  25. Future • Small unless: • Remove temporary credits • Reduce complexity • Remove temporary credits • E.g. VCS buffer approach • Insurance policy • Reduce complexity • Methodologies and tools • Consolidation • Environmental integrity guaranteed EMMER INTERNATIONAAL

  26. Thank you Dr. Igino M. Emmer igino.emmer@emmer-internationaal.eu +31 (0)653699610 EMMER INTERNATIONAAL

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