Forest conservation and the clean development mechanism: Lessons from the Costa Rican protected areas project

Deforestation is currentlythe source of about 20% of anthropogenicCO₂ emissions. Avoided deforestationhas, nonetheless, been ruled out as a CleanDevelopment Mechanism (CDM) category in theKyoto Protocol's first commitment period,because several methodological issues wereconsidered too difficult to resolve. Thispaper explores whether CDM issues such as(1) carbon quantification, (2)additionality and baseline setting, (3)leakage risks, (4) non-permanence risks,and (5) sustainable development can beadequately dealt with in large, diversifiedforest conservation projects. To this aim,it studies the case of the Costa RicanProtected Areas Project (PAP), anActivities Implemented Jointly (AIJ)project which was meant to consolidate thenational park system to avoiddeforestation, promote the growth ofsecondary forests and regenerate pastureson an area that, in total, covers 10% ofthe national territory. The case studyexamines how the issues mentioned abovehave been addressed in the project designand in the certification process. It isfound that baseline uncertainties are themajor problem in this case. Nonetheless,the case suggests the possibility toaddress CDM issues by specific requirementsfor project design and very conservativeand temporary crediting. Provided thatother case studies support this conclusion,eligibility of well-designed forestconservation projects under the CDM in thesecond commitment period may be worthconsidering, given the secondary benefitsof avoided deforestation.     

Mitigation potential of important farm and forest trees: a potentiality for clean development mechanism afforestation reforestation (CDM A R) project and reducing emissions from deforestation and degradation,along with conservation and enhancement of carbon stocks (REDD+)

The effectiveness and integrity of forest-based emissions reduction schemes such as Clean Development Mechanism Afforestation Reforestation (CDM A R) project and Reducing Emissions from Deforestation and Degradation (REDD+), along with conservation and enhancement of carbon (C) stocks implementation and assessment in developing countries are required not only, the appropriate monitoring and evaluation, rather the precise values of constants being used to estimate the C stocks or C credit in place of default or guess value. Estimates are reported of the C content of wood of four forest species (Shorea robusta, Pinus roxburghii, Tectona grandis and Cinnamomum camphora) and two important farm species (Populus deltoides and Eucalyptus treticornis) in the temperate region of Indian Himalayas, derived using the ash content method. These species were considered keeping in view of their potentiality for the C sequestration and storage projects across the developing countries specifically the South East Asian Countries. The specific gravity, ash content and C proportion is estimated for these six species by selecting random woods pieces. These estimates are designed to improve the calculations of biomass C for use in estimation of C credits in the developing region under CDM A R projects and REDD+ program supported by developed country. Regression analysis of C prediction models revealed that, for all six species, C content may be estimated through specific gravity of the wood by a linear equation without intercept. Indirectly, this results also implies that among the two farm trees, eucalyptus has high potentiality for C capturing and among four forest trees, Shorea robusta has high potentiality, therefore these two should have preference for plantation/regeneration as well as for conservation.     

Millennium development goals and clean development: synergies in the Pacific

This paper addresses synergies between the Millennium Development Goals (MDGs) and the Clean Development Mechanism (CDM), and considers how the CDM can facilitate the MDGs in Pacific Island Countries (PICs). To date, only 6 CDM projects have been registered in PICs, highlighting the ‘lose-lose’ business case that applies to this type of project development. This paper identifies constraints on and opportunities for CDM project development in PICs, and proposes a range of specific policy reform measures that could alter existing negative investment profiles. Key findings are that small-scale agricultural projects providing renewable energy from existing sources of biomass (currently seen as waste) are ideal candidates for CDM investment in PICs, and that the single most important reform to facilitate CDM activity and contribute to achieving the MDGs would be the implementation of a regional approach to CDM administration, in which a regional body became the designated CDM Authority for all states in the region. This would offset investment risk, improve governance transparency, and facilitate a targeted approach to sustainable development activities in the Pacific region.     

How sustainable are forestry clean development mechanism projects?—A review of the selected projects from India

This paper analyses social, economic and ecological issues affecting sustainability of the four selected forestry clean development mechanism (CDM) projects from India. Data from the group discussions and stakeholder interviews suggest that three out of the four projects are economically unsustainable for local people because of high opportunity cost of land and labour, and delayed and low benefits. The average opportunity cost of the land is 20000, 12000 and 9000 INR/ha/year in case of Haryana, Himachal Pradesh and Tamil Nadu, India projects respectively, which is unlikely to be met through projected carbon revenues and other benefits. A significant number of farmers have already withdrawn their private lands in Haryana and Tamil Nadu projects. Very few of them have undertaken plantations on the private lands in the Himachal project. All the four projects have undertaken block plantations of predominantly fast growing species such as Eucalyptus (Eucalyptus hybrid), Casuarina (Casuarina equisettifolia) and Ailanthus (Ailanthus excelsa) for high growth and quick returns, which could have adverse social and ecological impacts over long term. There are social and institutional issues such as low participation of local communities, weak or non existing community institutions, inflexible design and rigid CDM rules, which affect sustainability of these projects. It has implications for other carbon forestry programmes such as Green India Mission and Reducing Emissions from Deforestation and Degradation (REDD+) being rolled out at a large scale in the country. The rationale and significance of these programmes needs to be objectively reexamined in context of the issues affecting CDM projects.     

Reforming the CDM for sustainable development: lessons learned and policy futures

The Clean Development Mechanism (CDM) has successfully demonstrated that market-based mechanisms can achieve some cost effective emissions reductions in developing countries. However the distribution of CDM projects has been extremely uneven across countries and regions, and a few technologies and sectors have dominated the early stages of CDM experience. This has caused some to question whether the CDM has fallen short of its potential in contributing to sustainable development. We review the broad patterns of CDM project approvals and evaluate 10 CDM projects according to their sustainability benefits. The difficulty of defining “sustainable development” and the process of defining criteria by individual non-Annex 1 governments has meant that sustainable development concerns have been marginalized in some countries. Given these observed limitations, we present possible CDM policy futures, focusing on the main proposals for a post-2012 climate regime. Five options for enhancing the sustainable development benefits in the CDM are discussed, including proactive approaches to favour eligibility of emission reduction projects which ensure such co-benefits.     

Economic potential of biomass gasification projects under clean development mechanism in India

The Clean Development Mechanism (CDM) of the Kyoto Protocol provides Annex-I (industrialized) countries with an incentive to invest in emission reduction projects in non-Annex-I (developing) countries to achieve a reduction in CO₂ emissions at lowest cost that also promotes sustainable development in the host country. Biomass gasification projects could be of interest under the CDM because they directly displace greenhouse gas emissions while contributing to sustainable rural development. However, there is only one biomass gasifier project registered under the CDM so far. In this study, an attempt has been made to assess the economic potential of biomass gasifier-based projects under CDM in India. The preliminary estimates based on this study indicate that there is a vast theoretical potential of CO₂ mitigation by the use of biomass gasification projects in India.The results indicate that in India around 74 million tonne agricultural residues as a biomass feedstock can be used for energy applications on an annual basis. In terms of the plant capacity the potential of biomass gasification projects could reach 31 GW that can generate more than 67 TWh electricity annually. The annual CER potential of biomass gasification projects in India could theoretically reach 58 million tonnes. Under more realistic assumptions about diffusion of biomass gasification projects based on past experiences with the government-run programmes, annual CER volumes by 2012 could reach 0.4–1.0 million and 1.0–3.0 million by 2020. The projections based on the past diffusion trend indicate that in India, even with highly favorable assumptions, the dissemination of biomass gasification projects is not likely to reach its maximum estimated potential in another 50 years. CDM could help to achieve the maximum utilization potential more rapidly as compared to the current diffusion trend if supportive policies are introduced.     

The Kyoto Protocol could make a difference for the optimal forest-based CO2 mitigation strategy: some results from GORCAM

The Kyoto Protocol was agreed on by more than 150 nations in December, 1997 and (if and when ratified) will establish international commitments to reduce emissions of greenhouse gases to the atmosphere. Under the Kyoto Protocol, some of the carbon emissions and removals within the land-use change and forestry sector can be counted toward a country's commitments for greenhouse gas emissions reductions. In addition to the impacts that land-use practices have on CO₂ emissions from fossil-fuel combustion, changes in the carbon stocks of forests (possibly including forest soils) caused by the direct human activities afforestation, reforestation and deforestation and taking place in the `first commitment period' (2008–2012), are to be accounted for under the Kyoto Protocol. Credits for carbon sinks in the biosphere are limited to projects initiated since 1990. A modified version of the model GORCAM has been used to assess eligible emission-reduction credits under the Kyoto regime and to illustrate how the optimal forest-based strategy for carbon dioxide mitigation might change under the provisions of the Kyoto Protocol. The Kyoto Protocol offers rewards for only some of the changes in carbon stocks that might occur and hence the forestry project that produces the most emission reduction credits under the Kyoto Protocol is not necessarily the same project that produces the greatest benefit for net emissions of carbon dioxide to the atmosphere. Supplementing the Protocol with appropriate definitions, interpretations and agreements could help to make sure that it does not provide incentive for activities that run counter to the objectives of the Framework Convention on Climate Change.     

A data support infrastructure for Clean Development Mechanism forestry implementation: an inventory perspective from Cameroon

Clean Development Mechanism (CDM) forestry project development requires highly multi-disciplinary and multiple-source information that can be complex, cumbersome and costly to acquire. Yet developing countries in which CDM projects are created and implemented are often data poor environments and unable to meet such complex information requirements. Using Cameroon as an example, the present paper explores the structure of an enabling host country data support infrastructure for CDM forestry implementation, and also assesses the supply potential of current forestry information. Results include a conceptual data model of CDM project data needs; the list of meso- and macro-level data and information requirements (Demand analysis); and an inventory of relevant data available in Cameroon (Supply analysis). From a comparison of demand and supply, we confirm that data availability and the relevant infrastructure for data or information generation is inadequate for supporting carbon forestry at the micro, meso and macro-levels in Cameroon. The results suggest that current CDM afforestation and reforestation information demands are almost impenetrable for local communities in host countries and pose a number of cross-scale barriers to project adoption. More importantly, we identify proactive regulatory, institutional and capacity building policy strategies for forest data management improvements that could enhance biosphere carbon management uptake in poor countries. CDM forestry information research needs are also highlighted.     

Potential of Co2 emission reductions by carbonizing biomass waste from industrial tree plantation in South Sumatra,Indonesia

Approximately half of the carbon in trees can be fixed to charcoal by carbonization. Porous charcoal is useful as a soil amendment for crop fields and forests, and also as a water purifying agent. Given these facts, charcoal production should be recognized as one of the most promising CO₂ sequestration methods. A project on biomass utilization and forest conservation is proposed as a Clean Development Mechanism (CDM) project, by incorporating the carbonization of biomass residue and waste from tree plantations and pulp mills, and also the utilization of carbon products in various fields. A feasibility study was conducted with the existing project of an industrial tree plantation and pulp production in Indonesia. If conventional charcoal-making methods are used, a total of 368,000 t yr^-1 of biomass residue and waste could be transformed into charcoal of77,000 t yr^-1, and the carbon emission reductions by the project reaches 62,000t-C yr^-1 (or 230,000 t-CO₂yr^-1) in consideration of the project baseline. This charcoal project could provide jobs for approximately 2,600people. The soil fertility in man-made forests could be maintained by returning charcoal to the original forests. Therefore, the project would be beneficial to the regional economy. In addition, the present charcoal project is expected to give more positive impacts than negative ones, or leakage, beyond the project boundary. This revised version was published online in August 2006 with corrections to the Cover Date.     

National forest policy as a platform for biosphere carbon management: the case of community forestry in Cameroon

Little attention has been given to the development of national policies relevant for the uptake, development and implementation of Clean Development Mechanism (CDM) projects. In this paper we examine the compatibility between forestry and related policy provisions in Cameroon and the CDM provisions for Land Use, Land Use Change and Forestry (LULUCF). For each CDM requirement such as eligibility, additionality, impact assessment and sustainable development, relevant national forestry policy questions are identified. These relevant policy questions are applied to community forestry policy instruments in Cameroon to analyse the likelihood that they can enhance or inhibit the uptake and implementation of biosphere carbon projects. We found that choosing a single crown cover value (from between 10 and 30%) presented a serious dilemma for Cameroon given its diverse vegetation cover. Adopting any single value within this range is unlikely to optimize national carbon management potential. The current forest institutional and regulatory policy framework in Cameroon is inadequate for promoting carbon forestry under current CDM rules. We conclude that national policy in Cameroon would need to recognise the need for and adopt a pro-active approach for biosphere carbon management, engaging in institutional development, integrated planning, project development support and providing adequate regulatory frameworks to enhance sustainable development through CDM projects. The need for CDM/Kyoto capacity building support for proactive national and local policy development is highlighted.     

Smallholder Agroforestry Systems For Carbon Storage

Most smallholder agroforestry systems in Southeast Asia are tree- and species-rich systems producing non-wood and wood products for both home use and market sale. Due to their high biomass, these systems contain large carbon (C) stocks. While the systems of individual farmers are of limited size, on a per area basis smallholder systems accumulate significant amounts of C, equaling the amount of C stored in some secondary forests of similar age. Their ability to simultaneously address smallholders’ livelihood needs and store large amounts of C makes smallholder systems viable project types under the Clean Development Mechanism (CDM) of the Kyoto Protocol, with its dual objective of emissions reduction and sustainable development. Smallholder systems have not developed in areas where enabling conditions do not exist. A CDM project that facilitates a minimum threshold of enabling conditions that make smallholder agroforestation possible should qualify for C credits. To secure smallholder confidence, the agroforestry systems promoted through a CDM project must be socially and economically viable independent of C payments. To assure system productivity and profitability, projects should provide farmers with technical and marketing assistance. Additionally, project sites should meet the following preconditions: areas of underutilized low-biomass landuse systems available for rehabilitation; smallholders interested in tree farming; accessible markets for tree products; supportive local governments; sufficient infrastructure; and transparent and equitable relationships between project partners. Questions of leakage and additionality should not be problematic and can be addressed through the project design, establishment of quantifiable baseline data and facilitating enabling conditions. However, smallholder-focused CDM projects would have high transaction costs. The subsequent challenge is thus to develop mechanisms that reduce the costs of: (a) making information (e.g., technology, markets) more accessible to multiple clients; (b) facilitating and enforcing smallholder agreements and (c) designing feasible monitoring systems.     

Getting REDD to work locally: lessons learned from integrated conservation and development projects

Integrated conservation and development projects (ICDPs) have been a pervasive, although widely criticized, approach to tropical conservation for more than 20 years. More recently, international conservation discourse has shifted away from project-based approaches and towards reducing emissions from deforestation and forest degradation (REDD). While REDD is based upon experience with payment for environmental services (PES) initiatives and forest-related discussions in the United Nations (UN), REDD implementation will still require sub-national projects. Issues of equity will likely pit these sub-national projects against some of the same challenges that have dogged ICDPs. This suggests that REDD project developers stand to learn a great deal from the lessons generated by experience with ICDPs. This paper provides a list of best practices for ICDPs and applies their lessons as principles to guide the development and implementation of sub-national REDD projects. The intent of this approach is to encourage the design and implementation of sub-national REDD projects in a way that avoids the past pitfalls and mistakes, while building upon some successes, of the ICDP conservation approach. By doing so, REDD will be more likely to be implemented in a way that is effective, efficient and equitable.     

Unilateral Clean Development Mechanism – An approach for a least developed country?: The case of Yemen

Decision parameters prevailing in the market lead to a slim expression of interest of foreign investors for Clean Development Mechanism (CDM) projects in a bi- or multilateral design in Yemen. The Designated National Authority Secretariat in Yemen experiences the preference of Annex I entities of merely buying Certified Emission Reductions rather than investing in projects. Yemen's ability, like many least developed countries, to carry out unilateral CDM projects is moderate. Domestic project developers perceive difficulties in procuring underlying finance as key barrier in materializing CDM project activities in a unilateral design. The country remains trapped in a “catch 22 situation”. International assistance through low interest loans and capacity building for domestic financial institutions tailored to CDM project activities may trigger the market. Aggravation can be assisted by amending the policies of Annex I countries, in consequence to allocate a substantial share of their procurement activities to Certified Emission Reductions from least developed countries. Acquisition programmes may give preference to projects from host countries not traditionally represented in the pool of attractive CDM destinations.     

The elephant in the room – A comparative study of uncertainties in carbon offsets

The clean development mechanism (CDM) is a flexible mechanism under the Kyoto Protocol, which makes it possible for developed countries to offset their emissions of greenhouse gases through investing in climate change mitigation projects in developing countries. When the mitigation benefit of a CDM project is quantified, measurable uncertainties arise that can be minimised using established statistical methods. In addition, some unmeasurable uncertainties arise, such as the rebound effect of demand-side energy efficiency projects. Many project types related to land use, land-use change and forestry (LULUCF) have been excluded from the CDM in part because of the high degree of statistical uncertainty in measurements of the carbon sink and risk of non-permanence. However, recent discussions within the United Nations Framework Convention on Climate Change (UNFCCC) have opened up for the possibility of including more LULUCF activities in the future. In the light of this discussion, we highlight different aspects of uncertainties in LULUCF projects (e.g. the risk of non-permanence and the size of the carbon sink) in relation to other CDM project categories such as renewables and demand-side energy efficiency. We quantify the uncertainties, compare the magnitudes of the uncertainties in different project categories and conclude that uncertainties could be just as significant in CDM project categories such as renewables as in LULUCF projects. The CDM is a useful way of including and engaging developing countries in climate change mitigation and could be a good source of financial support for LULUCF mitigation activities. Given their enormous mitigation potential, we argue that additional LULUCF activities should be included in the CDM and other future climate policy instruments. Furthermore, we note that Nationally Appropriate Mitigation Actions (NAMAs) are currently being submitted to the UNFCCC by developing countries. Unfortunately, the under-representation of LULUCF in comparison to its potential is evident in the NAMAs submitted so far, just as it has been in the CDM. Capacity building under the CDM may influence NAMAs and there is a risk of transferring the view on uncertainties to NAMAs.     

Options for baselines of the clean development mechanism

The Kyoto Protocol created the Clean Development Mechanism (CDM) to allow industrial countries to reach part of their greenhouse gas (GHG) emission reduction through projects in developing countries. To calculate the achieved emission reduction a reference scenario has to be developed – the baseline. Despite efforts to develop realistic baselines, a certain degree of uncertainty regarding actual reductions will be inevitable. It is therefore necessary to compare the costs (including transaction costs) of developing a baseline against the informational benefit it can be expected to produce. While project-related baselines are already being applied, the proponents of country-related baselines have still to show the applicability of their approach for the CDM. The possibility of quantifying indirect effects and considering market distortions and subsidies through aggregation in the country-related baselines is weighed up by the manipulability and uncertainty of the assumptions required in such a baseline. Thus project-specific baselines are recommended. In cases of severely distorted markets undergoing liberalization or subsidy phase-out, a country-related baseline can be helpful. Sectoral or programme baselines would be suited to large-scale energy and sequestration projects. Moreover it has to be considered whether emission reductions are generally achieved in the context of relocation or done in the context of global emitting capacity expansion.     

Bioenergy and the CDM in the Emerging Market for Carbon Credits

This paper analyses the eligibility of different types of biomass energy projects in developing countries for funding under the Kyoto Protocol's Clean Development Mechanism and related funds. Specifically, GHG emission reductions through the replacement of non-renewable types of biomass with renewable energy, or the improvement of the efficiency of energy systems based on non-renewable biomass, is discussed in more detail, as it is currently difficult if not impossible for these to qualify as CDM projects under current rules. These problems are caused by the categorical exclusion of land-use from the CDM (with the exception of afforestation and reforestation projects). The paper offers some possible solutions for both small-scale and large-scale CDM projects. These limitations hold for a number of carbon funds. The paper covers of the major funds operated by the World Bank and that are already operational, to point out differences between existing funds in order to identify the best opportunities for different biomass sources and technologies. This systematic, comparative analysis covers the characteristics of the different funds in terms of eligible technologies, geographical foci, and size (targets and completed and ongoing transactions, CO₂ equivalents, project asset values). To provide the context for the analysis of the carbon funds, the regulatory drivers and frameworks influencing the demand side of the market are discussed. This first of its kind analysis for the specifics of the carbon market regarding bioenergy enables decision makers and project managers active or planning to become active in the area, to identify and target the most promising funds for their specific purposes.     

A basic study with feasibility of applying clean development mechanism to the transport projects

In the transport sector, few projects applied Clean Development Mechanism (CDM) or Joint Implementation (JI) projects. This study will examine the feasibility of applying CDM to the transport sector from viewpoints of validation of processes and funding. A number of greenhouse gas emission reduction projects, as well as traffic management project within existing transport infrastructures, can be implemented as CDM projects. New transport infrastructure projects can be validated by transportdemand forecasting and traffic simulation methods, though application of Life Cycle Assessment (LCA) and Intelligent Transport Systems (ITS) technologies. This revised version was published online in August 2006 with corrections to the Cover Date.     

用于组织和产品碳足迹的中国电力温室气体排放因子

讨论了组织和产品碳足迹与清洁发展机制(CDM)在计算电力温室气体排放因子方法上的区别,在发改委电力排放因子的基础上进行了多项修正与补充,分别得到用于组织和产品碳足迹的中国电力温室气体排放因子.结果表明,发改委发布的电力基准线排放因子与本文得出的组织和产品碳足迹的排放因子有显著差距,不应混用.本文计算的排放因子可为国内组织及产品碳足迹研究提供更恰当的数据来源.     

清洁发展机制对我国节能减排的作用

清洁发展机制（CDM）是《京都议定书》发达国家和发展中国家就减排温室气体进行交易的合作机制。我国“十一五”规划《纲要》提出了节能减排的目标,而我国还是一个发展中国家,要实现节能减排面临很多的困难。CDM项目大部分是与提高能效和开发利用新能源直接有关,因此,CDM能为此提供一定的推动力,能够促进我国的节能减排。文章分析了当前我国节能减排面临的困难,探讨了CDM在我国节能减排所起的作用,提出我国对积极开发CDM项目应采取的相应对策。     

Biochar—One way forward for soil carbon in offset mechanisms in Africa?

The Kyoto Protocol's Clean Development Mechanism (CDM) has had relatively little success in Africa due to a number of factors. Increases in agricultural soil carbon have strong benefits for soil health as well as potential for carbon sequestration, but such projects are currently excluded from the CDM and other offset mechanisms. Small-scale biochar systems with net emission reductions may hold a key for Africa to engage with the international offset mechanisms and open the door to soil carbon sequestration projects.