EMMER INTERNATIONAAL 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

EMMER INTERNATIONAAL 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 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 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 Role of EB and ARWG New Methodologies Procedures Clarifications

EMMER INTERNATIONAAL 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 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 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 N 2 O due to N fertilisation –Changes in DOM due to the project

EMMER INTERNATIONAAL 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 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)

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

EMMER INTERNATIONAAL (Example) Land eligibility

EMMER INTERNATIONAAL (Example) Land eligibility

EMMER INTERNATIONAAL Economic sustainability

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

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

EMMER INTERNATIONAAL (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 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 +31 (0)