Commercial Rubber Plantation for Grassland Rehabilitation in Linkage to CDM in Mondolkiri Highland Marubeni, KANSO, Oji Paper, Taisei Construction (Sep.2003)

1. Rubber Plantation Project for Carbon Sink CDM  Location: Highland in Mondolkiri province near Sen Monorom. 400km East of Phnom Penh  Population: approximately 37,000  Project period: 70 years  Rubber tree rotation: 35 years X 2 periods  Annual planting area: Total 7,600 ha - 1 st year: 100 ha - 2 nd year: 500 ha - 3 rd ~9 th years: Every 1000 ha

2. Calculation Conditions of Carbon Balance  Growth curve of aboveground biomass rubber trees: Vo = t t t (m 3 /ha.yr)  Growth of underground biomass rubber trees: Wu = Aboveground x 20% (t-dw/ha.yr)  Baseline vegetation: Grass + Shrub trees Biomass = t-dw/ha Biomass increment = t-dw/ha.yr  Fuel consumption of mechanical working Operation of heavy machine, vehicles, etc.  Growth curve of aboveground biomass rubber trees: Vo = t t t (m 3 /ha.yr)  Growth of underground biomass rubber trees: Wu = Aboveground x 20% (t-dw/ha.yr)  Baseline vegetation: Grass + Shrub trees Biomass = t-dw/ha Biomass increment = t-dw/ha.yr  Fuel consumption of mechanical working Operation of heavy machine, vehicles, etc. Positive Negative

3. Requirement of Carbon Sink CDM of Our Project 1. Baseline 2. Carbon balance 3. Leakage 4. Monitoring If the project would not be established, how the land and GHG would changed. (Tree growth) - (Baseline) - (Fuel consumption) Indirect influence outside of project boundary Baseline, carbon balance

Fig 1. Total Biomass Change of Rubber Plantation Fig 2. Total Biomass Change of Natural Vegetation as a Baseline Standard 4. Estimation of Carbon Balance by Biomass Measurement Natural vegetation involves grass and shrub trees

Fig 3. Total CO 2 Change of Rubber Plantation (Baseline and Fuel consumption of mechanical working are deducted.) 5. Estimation of Carbon Balance during the Project Period

Rubber Plantation Project  Profit, tax  Job opportunity for local community  Development of local industries  Development of infrastructure  Profit, tax  Job opportunity for local community  Development of local industries  Development of infrastructure  Efficient land use  Soil conservation  Efficient land use  Soil conservation  Profit  Carbon credit  Profit  Carbon credit CambodiaJapan 6. Advantages of Carbon Sink CDM of Our Project - Regional development - Sustainable development - Technical transfer

Charcoal Making Timber (Export) Wood Export Waste, Residue Activated Carbon (Export) Fuel (Domestic) Soil conditioner (Domestic) 7. Possibility of Development of Other Small Industries Local Community Local Electricity Replant Rubber Plantation Coconut palm Coffee Paddy Coconut palm Coffee Paddy CDM Power Plant Agricultural Waste Latex

8. Pictures / Local Situations Scion Garden

Seedling Field

Clone for Scion Garden

43-year-old Trees

Collection of Sap (9 Years Old)

Pine Woods

Plain Field

Woods along Swamp Line and Grassland

Stakeholder

9. Situation of the Project’s Progress and Future Schedule Aug 31 to Sep 7, 2003 (1st Mission)  1st seminar: Exchange of view on the project (34 participants)  Selection of the afforestation and the test afforestation candidate site  Interviews with the local government/stakeholders Nov 17 to 23, 2003 (2nd Mission)  2 nd seminar: Exchange of view on the project (26 participants)  The meeting with the relevant Cambodia Governmental agencies  Interviews with the stakeholders  Biomass research Aug 31 to Sep 7, 2003 (1st Mission)  1st seminar: Exchange of view on the project (34 participants)  Selection of the afforestation and the test afforestation candidate site  Interviews with the local government/stakeholders Nov 17 to 23, 2003 (2nd Mission)  2 nd seminar: Exchange of view on the project (26 participants)  The meeting with the relevant Cambodia Governmental agencies  Interviews with the stakeholders  Biomass research At the End of March 2004  Submission of F/S report to Japanese Ministry of the Environment By the End of the Year 2004  Based on the prepared PDD, acquisition of the approval from both the Cambodia and Japan governments, and also register the project as a CDM project  Submission of PDD to the UN CDM committee May 2005  Start of the project At the End of March 2004  Submission of F/S report to Japanese Ministry of the Environment By the End of the Year 2004  Based on the prepared PDD, acquisition of the approval from both the Cambodia and Japan governments, and also register the project as a CDM project  Submission of PDD to the UN CDM committee May 2005  Start of the project