IUFRO & NORPLUS International Symposium: Recent advances in land owner extension.
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Transcript of IUFRO & NORPLUS International Symposium: Recent advances in land owner extension.
Carbon offsets in Ethiopian Carbon offsets in Ethiopian agroforestry farmsagroforestry farms
- way for peer-peer learning between Ethiopia and Finland- way for peer-peer learning between Ethiopia and Finland
Veli PohjonenVeli PohjonenUniversity of HelsinkiUniversity of Helsinki
IUFRO & NORPLUS International IUFRO & NORPLUS International Symposium: Recent advances in land owner Symposium: Recent advances in land owner
extension.extension.Peer-to-peer learning among land owners Peer-to-peer learning among land owners
Kuusamo, FinlandKuusamo, Finland4-5 April 20114-5 April 2011
COCO22 in our air in our air
Despite climate conventions in Kyoto, Despite climate conventions in Kyoto, Copenhagen and Cancun (Mexico):Copenhagen and Cancun (Mexico):
COCO22 concentration of the air is rising concentration of the air is rising
24 per cent between 1958 – 201124 per cent between 1958 – 2011
No sign of change after Kyoto (1997)No sign of change after Kyoto (1997)
COCO22 in the atmosphere 1958-2011 in the atmosphere 1958-2011
Two ways to combatTwo ways to combat
Through the Through the sourcessources: reduce CO: reduce CO22 emissions. Technological way.emissions. Technological way.
Through the Through the sinkssinks: increase Carbon : increase Carbon
Offsets to trees. Ecological way.Offsets to trees. Ecological way.
Carbon Offsets via treesCarbon Offsets via trees
Conserve and manage the existing Conserve and manage the existing natural forestsnatural forests
Establish (large) block plantationsEstablish (large) block plantations
Agroforests , forest farmsAgroforests , forest farms
Carbon Offsets in agroforests and Carbon Offsets in agroforests and forests farms forests farms
Plant treesPlant trees Count the trees in year 1Count the trees in year 1 Define the carbon stock in year 1 (= Define the carbon stock in year 1 (=
A, tn C/farm)A, tn C/farm) Recount the trees in year 2Recount the trees in year 2 Define the carbon stock in year 2 (= Define the carbon stock in year 2 (=
B, tn C/farm)B, tn C/farm) Carbon Offset = B – A (tn C/farm/yr)Carbon Offset = B – A (tn C/farm/yr)
Ato Minale Hailu, Gelawdeos, Dera: Ato Minale Hailu, Gelawdeos, Dera: A= 5.04 tn C/farm (356 trees), B= 5.47 tn C/farm (438 trees)A= 5.04 tn C/farm (356 trees), B= 5.47 tn C/farm (438 trees)
Carbon Offset B-A = 0.4 tn C/farm/yrCarbon Offset B-A = 0.4 tn C/farm/yr
Excel model: Ato Minale Hailu AExcel model: Ato Minale Hailu A12.11.200912.11.2009
Excel model: Ato Minale Hailu BExcel model: Ato Minale Hailu B23.11.201023.11.2010
Carbon Offsets into MoneyCarbon Offsets into Money
Ato Minale Hailu’s Carbon OffsetsAto Minale Hailu’s Carbon Offsets
A = 5.044 tn C/farmA = 5.044 tn C/farm
B = 5.465 tn C/farmB = 5.465 tn C/farm
B-A = 0.421 tn C/farm/yrB-A = 0.421 tn C/farm/yr
How much in Birr How much in Birr (or Euro)(or Euro) is B-A ? is B-A ?
CER pricing principleCER pricing principle
Certified Emissions Reduction, CER Certified Emissions Reduction, CER ((http://www.pointcarbon.comhttp://www.pointcarbon.com ) )
Price of CER = 13.10 Euro / tn COPrice of CER = 13.10 Euro / tn CO22
Price of C = 48.03 Euro / tn C Price of C = 48.03 Euro / tn C ((factor factor 44/12)44/12)
Price of C = 1142 Birr / tn Price of C = 1142 Birr / tn (exch. rate 23.77)(exch. rate 23.77)
Value of tree farmer’s Offsetted Carbon Value of tree farmer’s Offsetted Carbon changes with daily CER-value at changes with daily CER-value at international marketinternational market
Ato Minale Hailu: Birr value of Ato Minale Hailu: Birr value of Offsetted Carbon Offsetted Carbon
Carbon Offset in one year (12.11.2009 Carbon Offset in one year (12.11.2009 – 23.11.2010), B-A = 0.421 tn – 23.11.2010), B-A = 0.421 tn C/farm/yrC/farm/yr
Price of Carbon 1142 Birr/tn C Price of Carbon 1142 Birr/tn C (48 €/tn C)(48 €/tn C)
Value of Offsetted Carbon: Value of Offsetted Carbon: 481 481 Birr/yr Birr/yr (20 €/yr)(20 €/yr)
Summary of 8 sample farmsSummary of 8 sample farmsall measured twiceall measured twice
Principle of Carbon Offset paymentPrinciple of Carbon Offset payment
Year A gives the baseline value (tn C/farm)Year A gives the baseline value (tn C/farm) If B-A > 0, payment is doneIf B-A > 0, payment is done B becomes new baseline valueB becomes new baseline value
If B-A < 0, payment is not doneIf B-A < 0, payment is not done The payment is done in the year when new The payment is done in the year when new
carbon stock exceeds the baseline value carbon stock exceeds the baseline value
Calculation chainCalculation chain
Expected Carbon payment to Expected Carbon payment to Ethiopian farmers & enterprisesEthiopian farmers & enterprises
Fair price would be CER = 1142 Birr / tn CFair price would be CER = 1142 Birr / tn C In real trade at least two levels of In real trade at least two levels of
middlemen are presentmiddlemen are present Would the price to farmer or enterprise drop Would the price to farmer or enterprise drop
to one third? That is 381 Birr / tn Cto one third? That is 381 Birr / tn C What was paid in Ethiopian Humbo project?What was paid in Ethiopian Humbo project? 247 Birr / tn C 247 Birr / tn C (4 USD / tn CO(4 USD / tn CO2 2 = 14.7 USD / tn C)= 14.7 USD / tn C)
Three corners of EthiopianThree corners of Ethiopianhighlands smallholder farming highlands smallholder farming
How to organize Carbon trade?How to organize Carbon trade?
Smallholder farmers group into Forest Smallholder farmers group into Forest Producers Organization (FPO)Producers Organization (FPO)
FPO buys once a year the Carbon FPO buys once a year the Carbon Offsets (CER-units) from member Offsets (CER-units) from member farmersfarmers
FPO sells the Carbon Offsets to FPO sells the Carbon Offsets to Ethiopian Carbon Offset Export AgencyEthiopian Carbon Offset Export Agency
The Export Agency sells the Carbon The Export Agency sells the Carbon Offsets to International Carbon Trade Offsets to International Carbon Trade markets markets
Peer to peer: Ethiopia Peer to peer: Ethiopia FinlandFinland
Forest Management Association (FMA) Forest Management Association (FMA) in Finland could also collect the CER in Finland could also collect the CER units from their membersunits from their members
FMA could sell clusters of CER-units in FMA could sell clusters of CER-units in International carbon tradingInternational carbon trading
FMA would get additional trading FMA would get additional trading incomeincome
Forest sinks should be a real agenda in Forest sinks should be a real agenda in Durban Climate Conference, Nov. 2011Durban Climate Conference, Nov. 2011
Ecological advantagesEcological advantages
Carbon Offsets trade encourages Carbon Offsets trade encourages farmers to plant more treesfarmers to plant more trees
Planting of trees further away from all Planting of trees further away from all weather road increasesweather road increases
Planting of trees on most eroded sites Planting of trees on most eroded sites increasesincreases
Perpetuum Mobile (PM) – Plantarum Perpetuum Mobile (PM) – Plantarum MobileMobile
Economic advantagesEconomic advantages
Farmers get added value from planted treesFarmers get added value from planted trees The value of Ethiopian smallholder forestry The value of Ethiopian smallholder forestry
increases annually by about 10 per centincreases annually by about 10 per cent Carbon offsets are to be understood as a Carbon offsets are to be understood as a
new export commodity from forestry, like new export commodity from forestry, like exporting construction poles from Ethiopia exporting construction poles from Ethiopia to Sudan, or sawn timber from Finland to to Sudan, or sawn timber from Finland to GermanyGermany
=>A new export commodity is created =>A new export commodity is created
Building the Carbon TowersBuilding the Carbon Towers
Smallholder tree planting is on a good drive in Smallholder tree planting is on a good drive in EthiopiaEthiopia
Farmers are motivated especially after Farmers are motivated especially after successful steps in land tenure and certificationsuccessful steps in land tenure and certification
Ethiopia is already converting into Carbon Ethiopia is already converting into Carbon Tower of African Horn. This accelerates with Tower of African Horn. This accelerates with Carbon tradingCarbon trading
Trees – Forests - Carbon towers – Sinks are Trees – Forests - Carbon towers – Sinks are becoming more important in the coming becoming more important in the coming climate conventionsclimate conventions
Carbon Tower gets greenerCarbon Tower gets greener