Clean Development Mechanism in promotion of afforestation & reforestation activities in Africa NOT AN OFFICIAL UNCTAD DOCUMENT Wojtek Galinski Project Based Mechanisms UNFCCC Secretariat United Nations Framework Convention on Climate Change United Nations Framework Convention on Climate Change Objectives • Brief overview of the A/R CDM • Structure of the approved A/R CDM methodology • Environmental integrity in the PDD for A/R CDM project activity • Role of CDM in promotion of A/R activities • Conclusions United Nations Framework Convention on Climate Change Afforestation/Reforestation in brief Non-forest land Forest land United Nations Framework Convention on Climate Change A/R CDM time line 2004 M&P for SSC A/R CDM 14/CP10 2003 M&P for A/R CDM 2002 21/CP8 2001 17/CP7 15/CP7 19/CP9 18/CP9 Guidance to the EB Guidance to the EB M&P for CDM Principles, nature and scope of the mechanisms pursuant to Art. 6, 12 and 17 of the KP United Nations Framework Convention on Climate Change Why A/R CDM? Atmosphere CO2 (carbon) CO2 (carbon) Sustainable development Environmental integrity Socio-economic integrity and development Employment generation United Nations Framework Convention on Climate Change Basic concepts of CDM Baseline (what if the project not happens) CDM project activity Leakage United Nations Framework Convention on Climate Change Basic concepts of CDM Baseline (what if the project not happens) CDM project activity Leakage United Nations Framework Convention on Climate Change Baseline (what if the project not happens) Emissions > Removals Future project area Supply = demand Area beyond the future project area United Nations Framework Convention on Climate Change CDM project activity Increase in removals (biomass growth) Project area Limited supply Decrease in emissions (better management) Project boundary New demand Area beyond the CDM project area Increase in emissions “Leakage” (side effects) United Nations Framework Convention on Climate Change Ex ante, i.e. projections Baseline, what if the project not happens Carbon Estimates ? Data ? ? Past Now Future Baseline approach Time United Nations Framework Convention on Climate Change Ex ante, i.e. projections Project and Leakage Estimates Project Carbon eq Leakage Baseline Data Past Now Future Time United Nations Framework Convention on Climate Change Ex post, i.e. monitoring Project and Leakage Project (data) Carbon eq Data Data Past Past Leakage (Data) Baseline (Estimate) Future Now Time United Nations Framework Convention on Climate Change AR CDM Baseline and Monitoring Methodologies Project boundary United Nations Framework Convention on Climate Change AR CDM Baseline and Monitoring Methodologies Applicability conditions Project boundary United Nations Framework Convention on Climate Change AR CDM Baseline and Monitoring Methodologies Applicability conditions Land eligibility test Project boundary United Nations Framework Convention on Climate Change AR CDM Baseline and Monitoring Methodologies Applicability conditions Land eligibility test Additionality Tool Project boundary United Nations Framework Convention on Climate Change AR CDM Baseline and Monitoring Methodologies Applicability conditions Land eligibility test Additionality Tool Estimation of GHG removals Project boundary B+P Estimation of GHG emissions P Estimation of leakage United Nations Framework Convention on Climate Change AR CDM Baseline and Monitoring Methodologies Applicability conditions Land eligibility test Additionality Tool Project boundary Ex ante Projection Estimation of GHG removals B+P Estimation of GHG emissions P Estimation of leakage Ex-ante estimation of CER United Nations Framework Convention on Climate Change AR CDM Baseline and Monitoring Methodologies Applicability conditions Land eligibility test Additionality Tool Project boundary Ex post Monitoring Ex ante Projection Estimation of GHG removals B+P Estimation of GHG emissions P Estimation of leakage Ex-ante estimation of CER United Nations Framework Convention on Climate Change AR CDM Baseline and Monitoring Methodologies Applicability conditions Land eligibility test Additionality Tool Project boundary Ex post Monitoring Ex ante Projection Estimation of GHG removals B+P Estimation of GHG emissions Calculation of GHG removals P Estimation of leakage Ex-ante estimation of CER Calculation of GHG emissions Calculation of leakage Ex-post calculation of CER United Nations Framework Convention on Climate Change Eligibility of land EB 26 Annex 18 Forest Afforestation CDM Project Activity No – Forest Land cover No – Forest Land cover project start -50 years project start -25 years No – Forest Land cover 31 Dec. 1989 project start United Nations Framework Convention on Climate Change Eligibility of land EB 26 Annex 18 Forest Reforestation CDM Project Activity No – Forest Land cover project start -50 years project start -25 years 31 Dec. 1989 project start United Nations Framework Convention on Climate Change A/R CDM Additionality tool – Flow chart Pre-screening: • Eligibility of lands Not additional Alternatives to the project activity (including common practice) Not additional Investment analysis Barrier analysis Not additional Impact of CDM registration Not additional Not additional CDM activity is additional United Nations Framework Convention on Climate Change Leakage Sources of leakage Combustion of fossil fuels Displacement Transport, soil prep., etc. Generation of new activities Intensification of animal production People Animals Conversion & degradation Activities United Nations Framework Convention on Climate Change Environmental integrity in PDD Practical application of methodology, and assessment of: • Environmental impacts of the proposed A/R CDM project activity Ø Analysis of the environmental impacts; including Ø Impacts on biodiversity and natural ecosystems • Socio-economic impacts of the proposed A/R CDM project activity Ø Monitoring and remedial measures to address significant negative impacts United Nations Framework Convention on Climate Change Role of CDM in promotion of A/R activities CDM promotes A/R activities which contribute to: • Sustainable development at local and national levels Ø Increase in availability of renewable wood and other forest related products; Ø Decrease in soil erosion and desertification; Ø Conservation of water resources; Ø Job generation and poverty alleviation; Ø Self-organization of local communities; Ø Generation of new types of income; Ø Development of local market; Ø Increase in demand for education. United Nations Framework Convention on Climate Change Role of CDM in promotion of A/R activities CDM promotes A/R activities which contribute to: • Decrease in GHG emissions Ø Mitigation of climate change. • Adaptation to climate change • Conservation of biodiversity and natural ecosystems • Minimization of side effects of A/R Ø Displacement of households and activities; Ø Other negative impacts on social and cultural environments. United Nations Framework Convention on Climate Change CDM is not a panacea to all problems • Market driven mechanism Ø Competition; Ø Supply and demand equilibrium. • CDM investors prefer countries with: Ø Already established structures required for the CDM process; Ø Stable land tenure; Ø Defined rights of access to the sequestered carbon; Ø Transparent and predictable process of decision making. • CDM related funds rarely cover all costs of A/R project United Nations Framework Convention on Climate Change Conclusions A/R CDM contributes to sustainable development and poverty alleviation at local level A/R CDM methodology provides a holistic approach to land use change from non-forest to forest Ø Baseline; Ø Project; Ø Leakage. PDD for A/R CDM project activity describes application of A/R methodology and contains analyses of: Ø Environmental impacts Ø Socio-economic impacts of the proposed A/R CDM project activity, including monitoring and remedial measures CDM is not a panacea for all problems • • • • United Nations Framework Convention on Climate Change Thank you Further information available at: www.cdm.unfccc.int United Nations Framework Convention on Climate Change