1. GIS bioenergy Options for GIS bioenergy projects Andreas Türk 25. April 2008

2. GIS bioenergy Content n Why biomass and forestry (AFOLU) projects? n Options for biomass and forestry projects under GIS in Romania n Conclusions

3. GIS bioenergy Why foresty and biomass projects under GIS? n Biomass and forestry projects often exceed co-benefits of other GHG mitigation projects. n Biomass projects are priority areas in many host countries

4. GIS bioenergy Why foresty and biomass projects under GIS? n Countries in Eastern Europe and CIS want to expand their forest area for many reasons, including reduction of soil erosion n Large and increasing demand for biomass in Europe, thus forestry activities can help meet this demand.

5. GIS bioenergy Forestry projects: GIS vs JI n GIS allows the buyer to purchase AAUs today which represent the sequestration that will occur in the future, extending beyond 2012, which is seen as a pre- requisite for LULUCF projects in temperate and boreal regions, where tree growth is slower than in tropical regions. n “Crediting periods” may be as long as 30 years (the typical duration of CDM projects).

6. GIS bioenergy Forestry projects: GIS vs JI n AAUs are transferred before actual carbon sequestration has occurred, based on the area that is reforested, and growth rates according to relevant growth and yield tables. n Transaction costs (technical development and registration) may be lower than in JI or CDM. n Reforestation of sites burnt after 31.12 1989

7. GIS bioenergy Transacted AAUs on predicted carbon sequestration until the end of the Second Commitment Period. 200820122020 125 tons 2008 Time 20 tons 80 tons 25 tons (buffer)

8. GIS bioenergy Potential bioenergy and forestry GIS options for Romania n Biomass for energy (electricity, heat), n Raw material in industry (pulp for cellulose, bioethanol) n Improved forest management for degraded private forest (cut and non-regenerated); n Mechanization of agriculture, low emission crops technologies (low tillage, no tillage).

9. GIS bioenergy Romania: Key particularities related to land use activities n Currently, land use activities in Romania are governed by key features of the political, economical and social nature n Land restitution, existing funding to support land use activities, energy challenge, sustainable development and favourable environment for rural investments, as well as the structural processes of the society. n These would heavily influence any new funding mechanism, as it is the case of GIS.

10. GIS bioenergy Existing support schemes n Currently, there are in place several schemes for financing afforestation of land in Romania n Land Reclamation Fund – managed by the Ministry of Agriculture and Rural Development; Environmental Fund – managed by the Ministry of Environment; Forest Regeneration Fund – managed by National Forest Administration).

11. GIS bioenergy Existing support schemes n Measure 121 of the National Program of Rural Development n Specific support action toward investments in “establishment of forest crops with short rotation (under 5 years) able

12. GIS bioenergy Project example: Fast growing/biomass crops (1) n Woody fast growing plantations for production of raw material in industry (i.e. pulp), n Biomass for electricity/cogeneration production or biofuels n May include biomass production of non woody crops.

13. GIS bioenergy Project example: Fast growing/biomass crops (2) n Area of application: 10 000 ha. Available lands may arable lands along irrigation channels on terraces n Low productive arable lands in polders along Danube, Big Island of Braila or in areas with available irrigation system.

14. GIS bioenergy Project example: Fast growing/biomass crops (3) n In order to ensure full complementarity with existing supports schemes, the GIS should mainly focus on type of woody crops which are not covered by Measure 121 of the National Program of Rural Development. n The GIS would support projects of woody fast growing crops with a rotation cycles longer than 5 years and include “non-energy” crops (i.e pulp for celluloses).

15. GIS bioenergy Project example: Fast growing/biomass crops (4) n If 10000 ha of fast growing poplar would be planted, with a rotation of 10 -12 years, the removal of CO2 would reach some 2 000 000 to CO2 in 20 years. n Mitigate the pressure on natural remnants of riverine forests from Danube valley, promotion of naturalization of appropiate areas (islands, treasures of birds, areas for fish population regeneration).

16. GIS bioenergy Conclusions n Much more options for forestry projects under GIS than under JI n GIS projects are a testing ground for new methodologies n GIS forestry and biomass projects have large socio- economic co-benefits