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					                A/R CDM projects :
     modalities, implementation and progress

                       Igino M. Emmer


   EUSTAFOR workshop Forestry & EU ETS
         Brussels, 26 June 2008




EMMER INTERNATIONAAL
                        Contents

• CDM A/R – Modalities & Procedures
• CDM A/R methodologies and tools
• CDM A/R - State of affairs, example and future




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                        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
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          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

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           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
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                  Role of EB and ARWG

• New Methodologies
• Procedures
• Clarifications




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                 A/R CDM methodologies

Ex ante
• Boundaries
• Land eligibility
                             CC = PR – PE – L - BR
• Permanence
• Baseline scenario
• Project emissions
• Leakage
Ex post
• Monitoring

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                 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


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          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

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   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


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                  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
                          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
               CDM A/R – State of affairs




EMMER INTERNATIONAAL
               CDM A/R – State of affairs




EMMER INTERNATIONAAL
                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)
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      Example: Carbon sequestration through
reforestation in the Bolivian tropics by smallholders

                               1500 farmers
                               6000 hectares




Indigenous species
Local NGO

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(Example)               Land eligibility




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(Example)               Land eligibility




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                       Economic sustainability




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(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



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(Example)                  Contracting

•   1500 farmer families
•   Local NGO: CETEFOR
•   ERPA: Annex 1 Gvt
•   Timber: Netherlands green investment scheme

• Joint venture established in Bolivia




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(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

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(Example)    Importance of pre-feasibility assessment

•   Risk of non-permanence
•   Economic feasibility
•   Social, institutional & legal feasibility
•   Kyoto compliance




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(Example)               (Dis)Advantage

Advantages
• Delivers sustainable environmental, economic
  and social benefits as intended by the CDM

Disadvantage
• Complex legal structure compared with large-
  scale



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                            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
                       Thank you




               Dr. Igino M. Emmer
      igino.emmer@emmer-internationaal.eu
               +31 (0)653699610




EMMER INTERNATIONAAL

				
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posted:7/13/2010
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