the base line
Transcript of the base line
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CASE STUDY OF REFORESTATION PROJECT VIA CDM
FOREST PLANTATION PROJECT in INDONESIA
SUMITOMO FORESTRY CO.,LTD.TOKYO, JAPAN
AUGUST 28, 2001 IN KITAKYUSHU
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THE PURPOSE OF CDM
1. To achieve sustainable development in Parties not included in Annex I
2. To contribute to the ultimate objective of the Convention
3. To achieve compliance with their quantified emission and reduction commitments in Parties included in Annex I
(Kyoto Protocol Article 12-2)
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CDM PROJECT FEASIBILITY STUDY BY THE MINISTRY OF ENVIRONMENT OF JAPAN
Company: Sumitomo Forestry Co., Ltd.Survey: Feasibility Study of Reforestation Project in IndonesiaSurvey Period: 1999 - 2000Area: East Kalimantan Province, The Republic of IndonesiaMerit: (1) Survey of quantity volume of fixed carbon through a sustainable industrial forest plantation
(2) Feasibility study and cost performance for carbon fixing
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CRITERIA FOR A FOREST PLANTATION PROJECT VIA CDM
Sustainable Forest ManagementBase Line
1. Indirect & Associated impacts by the project Risk EvaluationCarbon Accounting SystemPlanning of the Project
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社会・経済調査 Benua Baru M. Bengkal
Ngayao
ベースライン調査 S. Mao
リスク調査 Batu Putih
M. Karangan Pesab
Study Sites
East Kalimantan Province, The Republic of Indonesia
Industrial Plantation Area of A-Company
Project Model with 10,000 hectare within the Area
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SUSTAINABLE FOREST SUSTAINABLE FOREST MANAGEMENTMANAGEMENT
--Combination with ShortCombination with Short--term, Mediumterm, Medium--term and term and LongLong--term Harvesting Species term Harvesting Species
--Estimation of Growth of the PlantEstimation of Growth of the Plant--Forest ManagementForest Management……land preparation, thinning, land preparation, thinning,
planned harvestingplanned harvesting--Replant the same area after harvestingReplant the same area after harvesting--Direct cost, indirect cost, harvest incomeDirect cost, indirect cost, harvest income--Environmental ConcernEnvironmental Concern--Cooperation with Local CommunityCooperation with Local Community
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BASE LINE OF A REFORESTATION PROJECT
- Changing of Carbon Stock in the Project Site unless the Project Exists.
- We implemented forest survey.
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ESTIMATION of a BASE LINE
0102030405060708090
100
0 10 20 30
Year
Carb
on S
tock
(tC/
ha)
S ei MaoS B L (Hashimoto et. al. 2000)Included F ores t F ire
Project Based. Included impacts of forest fire.Recovering of carbon storages after the fire was based on the results of a previous study (Hashimoto et. al. 2000).PROJECT BASE LINE 2.18C-TON(per 1 hectare)
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INDIRECT & ASSOCIATED IMPACTS
Leakage
Impact on Ecology
Impact on Social & Economical Aspects
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RISK ESTIMATION FOR FOREST PLANTATION PROJECT
Forest Fire- 20% of the plantation area every 8
years
Pest Insects- 10% of Teak Trees- 30% of Gmelina Trees
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PLANNING of A PROJECTForest Management
Unit Area: 10,000haSite: East Kalimantan, Republic of IndonesiaSpecies and Planting Area:Gmelina 5,000ha, Duabanga 1,000ha, Teak 1,000ha, Mahogany 1,000ha, Sungkai 1,000ha, Meranti 1,000haHarvest Time: every 8 - 20 years ( one cycle ) Evaluation of Risks: ConsideredProject Period: 30 years
CDM AspectsChanging of Carbon Storage in the ProjectCarbon Accounting SystemFeasibility Study with CDM
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FIXED CARBON VOLUME
Difference between nominal fixed carbon volume and the base lineRisk to be consideredMinus counting for harvesting ( release )Our study shows the project fixes initial carbon for the first 9 years and after then fixing and releasing balanced.Fixed carbon volume for the first 9 years;
164,000 c. ton = 1.82 c. ton/ hectare, year→ 1,200,000 ha = 20,000,000 c. ton/ 9 years (2002-2010)
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CARBON ACCOUNTING SYSTEMContents of Carbon Accounting Systems
Calculation Methods of Carbon StoragesTiming of the carbon credits occurrences: time to get the carbon creditPrice of Carbon
Proposed methods by researchersStock change methodAverage storage methodAlternative approaches
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Stock change method
Projection of carbon stored in two tree plantation projects with different growth rates. For simplicity, it is assumed that the baseline is zero and that harvesting leads to an immediate release of all carbon stored. Arrows illustrate the net carbon storage of the projects at different points in time, calculated by the stock change method. (IPCC, 2000)
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Average storage method
Projection of carbon stored in two tree plantation projects over three rotations.For simplicity, it is assumed that the baseline is zero, that harvesting leads to an immediate
release of all carbon stored, and that equilibrium of carbon pools is reached in the first rotation cycle. The curves illustrate carbon storage over time; the straight horizontal lines show the
average storage calculated for the two projects. (IPCC, 2000)
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Alternative approaches
Projection of carbon stored in an afforestation project (with baseline assumed to be zero), illustrating the concept of equivalence-delayed full crediting. In this example, the project receives credits only after
planted trees have grown and been kept for a period of time, Te. (IPCC, 2000)
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COST PERFORMANCE FOR CARBON FIXING
US$68/ CARBON-TON
FOR THE FIRST 9 YEARS
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-80,000
-30,000
20,000
70,000
120,000
170,000
220,000
270,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Time (year)
Cha
ngin
g of
Car
bon
Stoc
k (tC
ha-
1)
Teak Mahogany Duabanga SungkaiGmelina Meranti Base Lineとの差 Base LineAC1 AC2
Changing of Carbon Stocks
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FEASIBILITY STUDYAS a CDM PROJECT
Feasibility for 30 yearsTotal money demand US$14 millionThe 1st year of sales profit: 18th yearCarbon credit = cash income
US$50+ feasibility improvedUS$100 strong incentive
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Estimated Profit and Loss
-20,000
-15,000
-10,000
-5,000
0
5,000
10,000
15,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Year
x 10
00 U
S$
伐出コスト (Logging Costs) 設備費 (Capital Spending) 直接経費 (Direct Costs)間接経費 (Overhead Costs) 金利 (Interest Rate) Teak (pulp)Mahogany (pulp) Duabanga (pulp) Sungkai (pulp)Gmelina (pulp) Teak (timber) Mahogany (timber)Duabanga (timber) Sungkai (timber) Gmelina (timber)Meranti(timber) 0 単年度収支 (Income before taxes)累積損益 (Profit and Loss Accumulations)