The Yasuni ITT Initiative and
Net Avoided Emissions
TENTH PLENARY MEETING OF THE LEADING GROUP ON
INNOVATIVE FINANCING FOR DEVELOPMENT
MADRID, FEBRUARY 27, 2012
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Yasuni National Park
Biodiversity
Non-contacted
Indigenous
Communities
Reserves of
crude oil
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Management Alternatives for Yasuni National Park:
Multicriteria Analysis Results
Ranking of Alternatives:
A= Yasuni ITT
BTT= Exploitation Scenario 1
BITT= Exploitation Scenario 2
Análisis Multicriterio de la Iniciativa Yasuní ITT. María Cristina Vallejo et Al. (Programa Yasuní)
DOWNLOAD PDF: http://www.ambiente.gob.ec/sites/default/files/users/dvelalcazar/ANALISIS_MULTICRITERIO_YITT.pdf
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Management Alternatives for Yasuni National Park:
Multicriteria Analysis Results
Opportunity Cost:
Análisis Multicriterio de la Iniciativa Yasuní ITT. María Cristina Vallejo et Al. (Programa Yasuní)
http://www.ambiente.gob.ec/sites/default/files/users/dvelalcazar/ANALISIS_MULTICRITERIO_YITT.pdf
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The Yasuni – ITT Initiative
Net Avoided
Emissions:
407 million
tons CO2eq
• Biodiversity protection
• Respect of the Rights of
Indigenous Peoples
• Transition to «goodliving» (buen vivir) and
Rights of Nature
Barrels of oil
underground:
840 million
• Support Yasuni (UNDP
Fund):
mdtf.undp.org/yasuni
International
Compensation:
$3,600 million
dollars in 13 years
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What is Net Avoided Emissions (NAE)?
Mechanism
of Synergies
for the
fullfilment of
Multiple
Objectives in
the
framework of
sustainable
development
New climate change market and non-market (bilateral) mitigation
mechanism, sectorial crediting mechanism (compliance with ex
ante baseline setting)
Avoidance of Green House Gas Emissions (GHG) considering all
possible economic activities that a developing country can be
undertaking at the moment when the country decides to apply the
mechanism.
Economic value associated to the environmental service of avoiding
emissions, equivalente to the market price of total tons of CO2eq
avoided.
Supplementary to domestic actions undertaken by developed
countries to fulfull their mitigation commitments.
Presented at the Conference of the Parties N° 16 of Climate Change
by the Ecuadorian President (December 2010)
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«Net Avoided Emissions» (NAE) Objectives:
Establishment of Synergies
Synergies for the fulfilment of
Multiple Objectives in the
framework of Sustainable
Development
Climate Change Mitigation
Development Financing
• Climate Change
• Biodiversity
• Desertification
• Indigenous peoples
• Incentives and fulfilment of
mitigation commitments
• Real net reduction of total
global net GHG emissions
• Compensation for developing
countries (Mitigation and
Adaptation)
• Technology Transfer
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NAE at the United Nations Framework
Convention on Climate Change (UNFCCC)
80. Decides to consider the establishment, at the seventeenth session of the
Conference of the Parties, of one or more market-based mechanisms to enhance
the cost-effectiveness of, and to promote, mitigation actions, taking into
account the following:
(e) Ensuring a net decrease and/or avoidance of global greenhouse gas
emissions» (1/CP.16)
• UNFCCC Conference of the Parties N° 16 (Cancun, 2010)
«79. Emphasizes that various approaches, including opportunities for using
markets, to enhance the cost-effectiveness of, and to promote, mitigation
actions, bearing in mind different circumstances of developed and developing
countries, must meet standards that deliver real, permanent, additional and
verified mitigation outcomes, avoid double counting of effort, and achieve a net
decrease and/or avoidance of greenhouse gas emissions” (Draft decision [/CP.17] AWG-LCA)
• UNFCCC Conference of the Parties N° 17 (Durban, 2011)
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Mechanism design: Governance
Independent
Mechanisms (Bilateral,
Regional)
«NAE» Hybrid Mechanism: Under UN
supervision, with higher host country
participation
Mechanisms under
the United Nations
Framework
Convention on Climate
Change
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Mechanism design: Cost-effectiveness
1,4% cost/CDM ton CO2eq
Mitigation actions in
Ecuador
(Land-use sector)
Region/
Country
Cost
(USD/CO2eq
ton)
Source
Submissions Form Parties (07/April/11)
Yasuni ITT Cost-Effectiveness (Ecuador),
UNFCCC
Yasuni-ITT
Ecuador
$0,015 – $0,02
Socio Bosque (sim. REDD)
Ecuador
$0,24
Ortega-Pacheco et al. (2010)
PROFAFOR (sim. MDL)
Ecuador
$1,42
Wunder and Alban (2008)
Offsets Forests
Ecuador
$1,22
Antinori and Sathaye (2007)
Offsets Forests
Global
$0,38
Antinori and Sathaye (2007)
The Yasuni-ITT Initiative: enhancing cost-effectiveness of, and promoting, mitigation actions, Document for UNFCCC: -Views on the
evaluation of various approaches in enhancing the cost-effectiveness of, and promoting, mitigation actions Submissions from Parties (7
April 2011) - Submission from Ecuador
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Mechanism design: Safeguards
Implementation
in developing
countries
Use of funds for
Mitigation and
Adaptation
Activities
Compensation for the
environmental service
provided (not for the
opportunity cost)
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Mechanism design: Advantages with regards to
existing mechanisms
Net
Avoided
Emissions
• Real reduction of the global level of emissions
in the long term
• Use of existing institucionality
• Greater host country participation
• Development of methodologies for baselines
per sector, etc. based on existing experiences
• Bilateral or Market compensation
• Equity and sovereignty in benefit distribution
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Mechanism design: Environmental Integrity
(efficacy)
Permanence
and
Leakage
Reflected in the long
term (Guarantee
certificates, limited
resource stock)
Leakages control
Baselines per sector
Clear definition of scope
Host country
participation
Additionality
-International
standards
Verification
-Institutional
arrangements (UN
board, national
committee)
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Expected Outcomes for 2012
2012-2015
CoP Climate
Change
(UNFCCC)
Discussion on Modalities and
Procedures (2012)
Pilot schemes (post-2012)
Mechanism operationalization (post2012)
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THANK YOU
Analiz Vergara
Environment and Climate Change Division
Ministry of Foreign Affairs, Trade and Integration
Quito, Ecuador
t-avergara@mmrree.gob.ec
medioambiente@mmrree.gob.ec
Ecuadorian Embassy in Spain
embajada@mecuador.es
Min. Germán Espinoza: ministro@mecuador.es
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Annex 1: The Yasuni ITT Initiative - Deforestation
Component
The Yasuni-ITT Initiative: enhancing cost-effectiveness of, and promoting, mitigation actions, Document for UNFCCC: -Views on the
evaluation of various approaches in enhancing the cost-effectiveness of, and promoting, mitigation actions Submissions from Parties (7 April
2011) - Submission from Ecuador
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Anex 2: Cost-effectiveness of mitigation actions in Ecuador
(Land-use sector)
NPV
(desc. Rate 6%)
Type
Activity
Oil extration
Programmatic/
Yasuni-ITT
Deforestation
avoidance
(máx.)
Proyects/
Socio-Bosque
Deforestation
secuestration
PROFAFOR
CDM-like
Reforestation
NPV
(desc. Rate 12%)
Emissions
Cost
Cost
Cost
Cost
(millon ton
(million USD) (USD/ton CO2eq) (million USD) (USD/ton CO2eq)
CO2eq)
407
20,78
0,017
18,38
0,015
820
24,53
0,02
21,85
0,018
26,9
7,9
0,24
7,9
0,24
2,23
6,54
0,58
6,54
0,58
The Yasuni-ITT Initiative: enhancing cost-effectiveness of, and promoting, mitigation actions, Document for UNFCCC: -Views on the
evaluation of various approaches in enhancing the cost-effectiveness of, and promoting, mitigation actions Submissions from Parties (7 April
2011) - Submission from Ecuador
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