1. BioCarbon Fund REDD Projects in Tranche 1 BioCarbon Fund REDD Projects in Tranche 1 February 7, 2008

2. Two Windows Second Window Explore “beyond Kyoto” CDM: Forest management, revegetation, agricultural land management No carbon credits First Window Kyoto-compatible CDM: Afforestation /Reforestation + Biofuels Carbon credits to meet Kyoto obligations

3. The mountainous Pico Bonito National Park hugs the north coast of Honduras near coastal town of La Ceiba, where its buffer zone is the focus of this project Honduras Pico Bonito Project

4. Reforest/afforest 3153 ha Restore vulnerable landscapes & water catchment areas through reforestation/afforestation of degraded lands in buffer zone of Pico Bonito National Park, Honduras Pico Bonito National Park encompasses 265,000 acres Pico Bonito National Park encompasses 265,000 acres Provides vital connectivity to MesoAmerican Biological Corridor Provides vital connectivity to MesoAmerican Biological Corridor 17 upland watersheds and 200 rivers and streams 17 upland watersheds and 200 rivers and streams Home to many threatened and endangered species Home to many threatened and endangered species Park is home to 24,000 people from 82 communities Park is home to 24,000 people from 82 communities Implement small pilot investments at the community level to restore & manage degraded lands Commercial reforestation for FSC certified timber

5. Avoided Deforestation Component Avoided Deforestation1550 ha Marginal agricultural and clear cutting practices leave landscape irregularly and disproportionately barren Local deforestation rate of 10% is higher than country’s average rate Local deforestation rate of 10% is higher than country’s average rate New imminent threat from encroaching agriculture and deforestation Thin strip of pristine old growth forest (“The Throat”) connects western section to rest of Park Local landowners threatening to clear-cut forests or sell strategic land located within this area Local landowners threatening to clear-cut forests or sell strategic land located within this area Overlap with Park’s core preservation zone, makes land parcel even more crucial than the land that is preserved Overlap with Park’s core preservation zone, makes land parcel even more crucial than the land that is preserved Location of land risks complete destruction if action is not taken quickly! Location of land risks complete destruction if action is not taken quickly! Roughly 500,000 tCO 2 e

6. Location of “The Throat” Source: Ecologic

7. Park Division / Elimination of Biological Connectivity Family is anxious to sell as pending law may question land tenure Only 600 meters separate family properties, so agricultural frontier could easily advance Land will be clear-cut or sold to someone who will

8. San Nicolás Project Area

9. Colombia San Nicolas Restore abandoned pastures 1,310 ha Establishment of different forestry systems in area surrounding Medellin – eastern part of Antioquia Silvopastoral systems, agroforestry, and plantations San Nicolas region provides services to 250,000 inhabitants in 9 municipalities Rio Negro supplies drinking water, 33% of country ’ s electricity, and water for agriculture Overgrazing and erosion have left only 25% or original area Maintain and promote remaining forest relics in Valley for Window 2 Avoided deforestation 76,694 tCO 2 e

10. Types of Issues to Think About National accounting is different from project level accounting Determining deforestation rate – Honduras Ex Local deforestation rate can be higher than regional or country rate Valleys and steep slopes in the same project area have very different deforestation rates Proving that land would actually have been deforested in the absence of the project Cost effectiveness of monitoring