Clean Development Mechanism in promotion of Wojtek Galinski Project Based Mechanisms

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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
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