EMMER INTERNATIONAAL A/R CDM projects : modalities, implementation and progress Igino M. Emmer...

EMMER INTERNATIONAAL

A/R CDM projects :modalities, implementation and progress

Igino M. Emmer

EUSTAFOR workshop Forestry & EU ETS

Brussels, 26 June 2008


Contents

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


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


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


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


Role of EB and ARWG

• New Methodologies• Procedures• Clarifications


A/R CDM methodologies

Ex ante• Boundaries• Land eligibility• Permanence• Baseline scenario• Project emissions• LeakageEx post• Monitoring

CC = PR – PE – L - BR


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


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


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


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")


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


CDM A/R – State of affairs


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)


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

1500 farmers

6000 hectares

Indigenous species

Local NGO


(Example) Land eligibility


Economic sustainability


(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


(Example) Contracting

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

• Joint venture established in Bolivia


(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


(Example) Importance of pre-feasibility assessment

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


(Example) (Dis)Advantage

Advantages• Delivers sustainable environmental, economic

and social benefits as intended by the CDM

Disadvantage• Complex legal structure compared with large-

scale


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


Thank you

Dr. Igino M. Emmer

[email protected]

+31 (0)653699610

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