Abbreviations

Climate, Community and Biodiversity Alliance Department of Environment, Food and Rural Affairs International Food Policy Research Institute International Panel on Climate Change International Organization for Standardization International Union for the Conservation of Nature long-term certified emissions reduction LULUCF land use, land-use change and forestry M& P Modalities and procedures NCAS National Carbon Accounting System NCAT National Carbon Accounting Toolbox NGO Non-government...

Acknowledgements

The unstinting moral support from my wife, Maxine Pitts, made the task enjoyable. The generous material support from my son, Justin Hunt, made the book possible. A visiting fellowship in the Economics School at Queensland University in 2008 and 2009 provided access to library resources that are second to none. For this privilege I thank Professor Emeritus Clem Tisdell and Professor John Foster. Appreciation is extended to authors for the permission to use figures, as follows Figure 1.3, Satoshi...

Appendix 5a

The procedure for finding the number of sample plots to give a 95 percent confidence level and a 10 percent confidence limit for a stratum of a same-age plantation was as follows The DBH measurements of all trees > 5cm, in six 10m2 randomized plots in the plantation was recorded. The allometric equation 1.8967 + 2.3698 (lnDBH) (source Snowdon et al., 2000 Table 1.14) was applied to the DBH measurements to find the biomass in trees and plots and the biomass per hectare for each plot. Carbon...

Australia

If passed by the Senate, cap and trade will be in place in Australia in 2011. Australia's target is to reduce emissions by 60 percent below 2000 levels by 2050, and its interim target is a reduction of between 5 and 25 percent below 2000 levels by 2020. The willingness of the rest of the world to adopt targets, following the Copenhagen climate change conference in December 2009, will influence Australia's targets post-2013 (Australian Government, 2009). A considerable amount of independent...

Avoided Deforestation As A Voluntary Offset

The upward trend in investing voluntarily in projects that reduce deforestation could well continue. The level of interest in the reduction in deforestation and forest degradation (REDD) was stimulated by the encouragement given by the United Nations Framework Convention on Climate Change (UNFCCC) Bali Conference in late 2007. Specifically, Decision 2 CP.13 'Reducing emission from deforestation in developing countries approaches to stimulate action' (UNFCCC, 2008 8) contains the following...

Biodiversity implications of AR in Tanzania

The second case study of an A R CDM project is in two discrete areas of Tanzania where it establishes and manages forest plantations that will meet demand for high quality wood products from a sustainable managed forest, and is titled 'Afforestation in grassland areas of Uchindile, Kilombero, Tanzania and Maplpana, Mufindi, Tanzania'. A Tanzanian subsidiary company of TreeFarms AS, of Norway, is financing and implementing the project. The project document is accessible online (T v S d Group,...

Box 13 Cap And Trade Incountry

Under a cap and trade scheme emitters are allocated or purchase a quantity of emission allowances, an allowance being one tonne of CO2e. Emitters may then face progressive reductions over time in their allowances designed to achieve national greenhouse gas targets. The cap and trade scheme may be global, applying to nations involved in a global cap and trade scheme, for example to the industrialized Annex B countries under the Kyoto Protocol, or it may apply to companies under a mandatory cap...

Box 14 New Zealands Cap And Trade Scheme

Participants are required to hold one NZU (equal to an AAU) or a Kyoto unit2 to cover each metric tonne of CO2e emitted within the compliance period. Allowing international trading means scheme participants can buy or sell emission units without causing a significant movement in their price. Integration with global carbon markets also means that emission prices in New Zealand align with international prices. This, in turn, helps to ensure that the level of price exposure in the New Zealand...

Box 51 Carbon Carbon Dioxide And Carbon Markets

Under Kyoto Protocol definitions, carbon bio-sequestration is by afforestation (A) on land that was not previously forested, or by reforestation (R) of land previously forested. In A R projects carbon is incorporated or sequestered in the trees of the A R plantations that replace other land uses. The net gain is the carbon accumulated with project less the carbon accumulated without project. Depending on Annex B countries' greenhouse gas emissions policy frameworks, forestry projects may...

Climate Policy And Forestry In The Eu

The EU has flagged a target of lowering its greenhouse gas emissions by at least 50 percent, compared with 1990 levels, by 2050 (EU, 2008). Abandoned crop and pasturelands and sparse woodlands available for afforestation in the EU amount to some 50 million hectares, or 75 percent of that available in the US. Afforestation rates have been much lower in the EU than in the US, at just over 200 000 hectares a year compared with almost a million hectares a year. With a price of up to 20 per tonne of...

Conclusions On Loss Of Biodiversity

The key realities with respect to trends in biodiversity loss can be summarized as follows The powerful indirect drivers of biodiversity loss world population growth, the need to raise millions out of poverty and rises in real GDP per capita, are not expected to abate. Direct drivers of land-use change, that is conversion of forests to agriculture, urbanization and infrastructure development, are expected to remain constant or increase in the near future. While rates of ecosystem loss are...

Conclusions

The rules for forestry in land use, land-use change and forestry and the Clean Development Mechanism (CDM) are generally soundly based and little is to be gained from revisiting them, except at the margin. While the anomalies are relatively minor in the whole scheme, they must nevertheless be guarded against in future arrangements. It needs to be accepted that the role of afforestation and deforestation in the CDM and the Joint Implementation (JI) may always be a minor one. The late start...

Development of Methodologies for Measuring Deforestation and Degradation

At its third workshop (UNFCCC, 2008a) the SBSTA reached general agreement that robust and cost-effective methodologies, designed and implemented at the national level, are required to estimate and monitor the following changes in forest cover, associated carbon stocks and emissions incremental changes due to sustainable management of forest reduction of emissions from deforestation and forest degradation. To achieve this, a coupling of remote-sensing and ground-based assessment is a suitable...

Developments In Measuring Carbon In Forests

The Kyoto Protocol requires nations to estimate the quantity of CO2e emitted and the C sequestered during the first commitment period of 20082012. Estimates of carbon sequestration in plantations at regional and national levels are needed by governments to evaluate success in meeting their international obligations on climate change. Reliable methods of estimation of carbon sequestered in plantations are also required at the project level. Investors require estimates of carbon for projects...

Discussion Of Future Arrangements For Landuse Land Use Change And Forestry In A Post2012 Protocol

Having reviewed the contribution of forestry under the Kyoto Protocol, its successor's role is now debated. While Annex I countries are bound to account for afforestation, reforestation and deforestation that have occurred since 1990, few countries have adopted cap and trade schemes that put a price on carbon while at the same time allowing forestry offsets to reduce the costs of meeting the cap. The EU ETS, by far the world's largest attempt to cut GHG emissions, specifically rules out...

Estimating the Potential Role for Forests

In modeling the abatement forthcoming from different sectors, McKinsey (2007a) first estimated that to cap the long-term concentration of atmospheric CO2e at 450 ppm would require abatement of 26.7 Gt of CO2e by BOX 1.5 WHAT ARE WE TALKING ABOUT IN FORESTRY OFFSETS CARBON SEQUESTERED OR CARBON DIOXIDE REMOVED It is important that the difference between carbon sequestered and carbon dioxide in the atmosphere is recognized and made explicit when discussing emission trading, and particularly when...

Forestry in the Kyoto Protocol

The aim of the United National Framework Convention on Climate Change (UNFCCC) and all related agreements is to ' A chieve, in accordance with the relevant provisions of the Convention, stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system' (UNFCCC, 1992, Article 2). The atmosphere can be characterized as an unmanaged commons unmanaged in a sense that for all of history, until the Kyoto...

Forestry offset schemes and biodiversity in the US

As noted in Chapter 2, forestry has the potential to offset a large proportion of emissions in the US. Presently, the Chicago Climate Exchange (CCX) is North America's only active voluntary, but legally binding trading system aimed at reducing emissions of greenhouse gases. CXX members who cannot reduce their own emissions can purchase credits from those who make extra emission cuts through eligible offsets, of which afforestation is one.10 However, the CXX does not differentiate between types...

Forestry offsets and biodiversity issues in the UK

In England there is official concern that threats to biodiversity may result from increasing emphasis on carbon sequestration that involves intensive forest management (that is monocultures) or tree planting that replaces semi-natural habitat harboring biodiversity (DEFRA, 2007). In Scotland, environmental non-government organizations have a clear policy position on carbon sequestration, believing that it should not be the primary driver of forestry policy in the management of the Scottish...

Forestry Options In Tropical Australia

Australia has great reforestation and afforestation potential in terms of sequestration rates of carbon and it is also a low risk country (Berntez et al. 2007). Large areas of forests are already being established to meet the demand for voluntary offsets by investors aiming for carbon neutrality. However, the cost per tonne of emissions that are offset varies greatly, depending on factors such as whether the land is being reforested with the aim of biodiversity conservation or whether...

Forestry Projects In The Cdm Pipeline

At the end of 2008, only one project had been registered but no CERs had been issued. A R projects in the validation stage numbered 35 (one project has reached the registration stage and emerged from the pipeline) and 14 of these were small-scale projects. Of the large-scale projects 15 were in Asia Pacific, nine in Latin America, nine in Africa and two in Europe. Not all projects have buyers, the World Bank being the most important so far (see Table 2.3). Table 2.4 shows that A R projects are...

Funding of REDD and cobenefits

The World Bank's BioCarbon Fund has pioneered afforestation and reforestation activities under the CDM of the Kyoto Protocol. The BioCarbon Fund funded the Pearl River Basin project in China, the first CDM project to be registered, and reviewed in Chapter 2. A second fund of the World Bank, the Forest Carbon Partnership Facility (FCPF), is aimed at REDD by applying value to the carbon in standing forestry. The FCPF has two parts, the Readiness Mechanism and the Carbon Finance Mechanism. The...

Impacts of Avoiding Deforestation on Local Communities

In the Grieg-Gran (2006) study of the cost of half tropical deforestation much of the agricultural activity to be compensated was the growing of food crops. Food crops tend to generate less income than oil palm and therefore require less compensation per hectare, making projects in food-crop growing areas more attractive to the purchasers of forestry offsets. The reduction in the ability of communities to grow food crops may well have undesirable social consequences. Such a program needs to be...

Institutional Failure

International agreements are indispensable for addressing the ecosystem-related concerns that span national boundaries. Numerous multilateral environmental agreements have been instituted to conserve biodiversity, the CBD being the most comprehensive. Other agreements include the World Heritage Convention, the Convention on the International Trade in Endangered Species of Wild Fauna and Flora, the Ramsar Convention on Wetlands, the Convention on Migratory Species, the UN Convention to Combat...

Joint Implementation

Joint Implementation (JI) under the Kyoto Protocol allows project-level emissions trading between Annex B countries trade is in Emission Reduction Units (ERUs), each equivalent to an AAU, which in turn is one tonne of CO2e. Under JI, annex B countries facing high abatement costs can pursue cheaper CO2e emission reduction projects in other Annex B countries. Most JI funding will probably flow from Japan and Western Europe, as such a pattern was observed during Activities Implemented Jointly, a...

Late Start Works against Forestry Projects

While CDM projects could accumulate credits from year 2000, basic rules governing forestry were not resolved until the end of 2003, which makes the implementation of projects before the end of 2005 unlikely given the long lead times for project development and registration. Even by the end of the first reporting period in 2012, that is, six years after planting in the beginning of 2006, only a fraction of the potential removal of CO2e by a forest will have been achieved (see Figure 2.3). The...

Leakage

One of the biggest challenges in developing a credible system for compensating for REDD in developing countries is that of reducing the risks of leakage. Where REDD is effected in one location there may be a stimulus to greater deforestation in another location. This is a high risk with project-based REDD schemes that have difficulty taking account of trends outside the immediate project area. This issue of indirect effects of REDD was one of the reasons for the exclusion of deforestation in...

Loss Of Biodiversity And Deforestation The Scale Of The Problem

Biological diversity is one of the management objectives for 25 percent of the world's forests. The area of forest within which conservation of biological diversity is the primary function has increased by 96 million hectares since 1990 and now accounts for 11.2 percent of total forest area, Figure 4.1 The ten countries with the largest forest area account for two-thirds of the total forest area Figure 4.1 The ten countries with the largest forest area account for two-thirds of the total forest...

Market Failure and Biodiversity Loss

The approach adopted by the Convention on Biological Diversity (CBD) involves a focus on the functional relationships and processes within ecosystems. Within this approach sustainable forest management is integrated with multiple scale action, intersectoral cooperation, and cognizance of the beneficiaries of the flows of ecosystem services (CBD, 2008a). While under a holistic approach the benefits of ecosystems are more likely to be taken into account in making development decisions, ecosystem...

Measurement Protocols

The two most comprehensive measurement protocols for A R presently in use are those for the Clean Development Mechanism (CDM) and the World Resources Institute (WRI). The adherence to CDM protocols is a precondition for the issue of tradable certified emission reductions (CERs) under the Kyoto Protocol. Adherence to either of these protocols may be required for certification of emission reductions in the voluntary market. For example, the Voluntary Carbon Standard (2008) accepts existing...

Measuring Carbon In Tropical Forests Of North Queensland

In 2007 a research project was begun by the author to find the amounts of carbon sequestered by tree plantations and old growth forests in tropical north Queensland. This information would allow the valuation of the carbon in plantations of different types and ages and in old growth forests and would provide information on the economic and financial implications for A R of the markets developing for sequestered carbon. An active program of reforestation aiming at augmenting endangered...

Measuring Stocks Of Carbon In Tropical Forests Towards Making Redd A Reality

Deforestation in the tropics annually of almost 6 million hectares of primary forest and over 3 million hectares of wooded land is contributing more than 2000 TgCyr21 of carbon to the atmosphere (Houghton, 2003 Table 3). In total, deforestation is responsible for some 27 percent of total carbon emissions (Houghton, 2003 Table 6). The slowing of such deforestation would contribute to the stabilization of climate. Presently, however, the developing countries of the tropics, where most...

Permanence

The question of the permanence of carbon sequestered in forests was one of the reasons the Marrakesh Accords exclude deforestation under the CDM how the problem might be addressed is considered in this section. There is no essential difference between a stock of carbon that has been accumulated by removal of CO2 by afforestation deforestation and the stock of carbon whose release to the atmosphere has been avoided by REDD. While it can be argued that the carbon in plantations may decline with...

Plantations For Carbon Capture And Biodiversity Conservation Complementary Or Contradictory

Caparros and Jacquemont (2003) expected that the creation of economic incentives for carbon sequestration by afforestation and reforestation, such as under the Kyoto Protocol, will yield a sub-optimal result of over-planting of fast-growing alien species with a potential negative impact on biodiversity 'The Convention on Biological Diversity lacks economic incentives which would ensure that agents will follow the optimal social strategy whereas the Kyoto protocol creates economic incentives'...

Policy Analysis And Proposals

Having reviewed how measurement, markets and money enable forestry to join the fight against global warming, the actual policies being followed by some developed countries are investigated. Countries that are advanced in their policies, or that have announced their policies, are chosen for this exercise in Chapter 7. Forestry has no role in the EU Emission Trading Scheme. In contrast, in the US, Australia and New Zealand, afforestation and reforestation is likely to emerge as a very important...

Proposals For Redd Accounting

Deforestation is already accounted for under the Kyoto Protocol for the industrialized Annex I countries. Where deforestation was a net source of emissions in 1990, then the deforestation in the first commitment period 2008-12 is measured against the 1990 level. This is termed 'net-net' accounting. In applying REDD to developing countries the same net-net principle can apply of measuring emissions from deforestation or degradation for an accounting period against a previous base period. One of...

REDD and the Physical Measurement of Tropical Forests

Generalized allometric equations stratified by forest types have been found to explain most of the variation in above-ground carbon in tropical forests. The case study above illustrates a procedure for physically sampling stratified sites to give a certain level of sampling error, and the process of measuring and applying an allometric equation to the calculation of carbon stocks in plantations and old growth forests. Survey efficiency can be greatly increased by the establishment of a...

References

Australian Government (2006a), 'Greenhouse Friendly guidelines', Canberra, Australia Department of Environment and Heritage. Australian Government (2006b), 'Planning forest sink projects', Canberra, Australia Australian Greenhouse Office. Australian Government (2007), 'The national carbon accounting toolbox', Canberra, Australia Australian Greenhouse Office. Bayon, R., A. Hawn and K. Hamilton (eds) (2007), Voluntary Carbon Markets An International Business Guide to What They Are and How They...

Research Conclusions

Accurate estimates of the CO2e removed from the atmosphere by plantations are required if markets are to be efficient. The study illustrates sampling and measurement techniques together with the application of an allometric equation, to obtain estimates of carbon sequestered in plantations of different ages and in old growth forests. It thus shows how measurement can be combined with a sophisticated modeling tool in the validation of carbon sequestration rates. The study alludes to the...

Results of Measurement in Reforestations and Old Growth Forests

Two of the 13 reforestation sites that were measured exhibited very poor growth and low biomass content. It was apparent that pre-planting or post-planting management at these sites had been deficient, and the plots were discarded. A comparison of results of measurement and modeling shows that there is considerable agreement between the carbon per hectare by DBH measurement in the 11 reforestations and the carbon in trees forecast by the toolbox see Figure 5.5. The results suggest that...

Secondary Benefits of Avoiding Deforestation

In the studies of carbon price and the carbon sequestration potential reviewed above, there was no estimate of the secondary benefits of avoiding deforestation or reforestation and afforestation, yet these are often substantial. Benefits are environmental, such as conservation of biodiversity and improved water quality, as well as social, such as improved fuel supplies. The estimation of the value of these non-market goods and services and their value for inclusion in market models is extremely...

Smallscale Forestry Projects Under The

Two basic reasons justify the introduction of small-scale projects transaction costs and equity. Small projects are unlikely to pay the modalities and 5 10 15 20 25 30 35 40 45 50 55 60 Years to expiry 5 10 15 20 25 30 35 40 45 50 55 60 Years to expiry procedures (M& P) costs associated with project development, and some low-income countries' participation in A R is limited. While simplified procedures may be applied to small-scale projects of less than 8Kt of CO2e, no specific procedure for...

Steps in the Cycle

Project design documents (PDDs) contain the key information on the potential for removal of CO2e, against an approved, or developed for Source After Neeff et al. (2007 Figure 1). Figure 2.4 The forestry project cycle in the CDM Source After Neeff et al. (2007 Figure 1). Figure 2.4 The forestry project cycle in the CDM approval, scientific baseline methodology. Environmental and socioeconomic impacts, together with local stakeholder comments, are also required. An Emission Reduction Purchase...

Subsidies To Achieve Emission Reductions

An alternative to taxes to change behavior is subsidization of the introduction of low emission technology. Australia is an example of a country that paid heavy subsidies to industry to achieve its Kyoto target of an 8 percent increase in emissions. (While Australia had refused to ratify the Protocol until 2007, it nevertheless still maintained a national goal of meeting its target.) Even though Australia invested some A 2 billion in subsidies, its total emissions from power generation,...

The Buyers

In a sample of sellers of voluntary offsets taken by Harris (2007), businesses bought two-thirds of offsets in 2006, while individual and households comprised 17 percent of the market, and events and conferences were less important buyers at 8 percent. In analyzing the criteria adopted by buyers, other than the offset of CO2e, it was found in the study that price per tonne of CO2e was the most important for businesses and what are called 'co-benefits' to the environment and to community...

The Clean Development Mechanism

The most comprehensive rules for the establishment of baseline and additionality for A R are those of the CDM under the Kyoto Protocol. Project developers may use approved methodologies or submit a new methodology for approval. The methodologies for establishing the baseline and for monitoring carbon sequestration in projects must be specified in the project design documents. Independent auditing and validation of the actual net CO2e removals claimed for A R projects is required for project...

The Clean Development Mechanism and Biodiversity

The main official vehicle for the establishment of forests for carbon sequestration in developing countries is the Clean Development Mechanism (CDM) within the Kyoto Protocol. Under the CDM, forestry projects in a non-Annex I country can be counted as offsets against emissions by the initiating Annex I country.12 An examination of the titles of the methodologies for A R approved by the CDM Executive Board (UNFCCC, 2008a) suggests that most of the ten approved have an identifiable biodiversity...

The European Unions ETS and forestry offsets

Under the Kyoto Protocol, countries can combine to meet a regional emissions target. Such a scheme is the EU Emission Trading Scheme, a cap and trade scheme that has been in place since 2005. The EU ETS does not allow members to offset their emission through in-country forestry activities. Afforestation and reforestation (A R) projects can, however, be undertaken by EU members in non-Annex I parties under the CDM. The impacts that such projects might make on biodiversity conservation are...

The Future of the CDM

There has already been a great deal of effort expended in the development of rules and methodologies for afforestation and reforestation. A change in these basic rules would undermine the investments already made in A R. It is suggested that the A R provisions in the CDM should be retained, while accepting the bankability of forestry credits, thus guaranteeing the viability of existing projects and encouraging new investment. This policy recognizes implicitly that while improvements can be made...

The incremental nature of carbon sequestration

The next step in this analysis is to establish the profile over time of the incremental mass of C sequestered by A R. While markets for carbon credits and offsets deal in metric tonnes of CO2e, the methodology in this section is in terms of tonnes of elemental carbon (C). The incremental rates of sequestration of one tonne of C by a pine monoculture plantation of hoop pine (Araucaria cunninghamii) and one of mixed rainforest species is shown in Figure 3.6. The growth rates are derived from the...

The Introduction Of Global Cap And Trade

There have been scientific warnings that feedback mechanisms could cause runaway global warming. It will be necessary to attempt to meet targets in GHG emissions and caps provide a greater degree of certainty in reaching targets than a tax. Global warming requires global solutions, and setting an overall limit on global emissions is the preferred method that has been adopted by the global community. However, the caps still need to be linked objectively and effectively to temperature objectives....

The making of markets for carbon and the potential of forestry offsets

The atmosphere can be characterized as an unmanaged commons in which pollution by greenhouse gases (GHGs) is unrestricted, and emissions by one party reduce the welfare of all other parties. Because of the cumulative rise of unassimilated concentrations of GHGs over time and the delay in the manifestation of their impact on climate, it is future generations who will pay the heavy price of unconstrained pollution. The need to rein in GHGs is an urgent one, and one that requires deep cuts to...

The Potential Of Forestry To Mitigate Climate Change Through Global Markets

The first part of this chapter has explored the mechanisms that create markets for GHG reductions. It was demonstrated how caps on allowances to emitters and facilitating their trading gives allowances a price, as well as how trading of allowances by emitters reduces the cost of compliance. It was also demonstrated how offsets (including forestry offsets) substitute for, and are compatible with, allowances and can be incorporated into cap and trade schemes. The second part of this chapter...

Value of Carbon in Measured Reforestations and Old Growth Forest

Tree Judged

To obtain the value of carbon in the measured plantations it is converted to its equivalent in CO2e, to which a conservative value of US 10 per tonne is then applied.17 Table 5.1 shows the results of measurement in 11 plantations plus an old growth forest site. Table 5.2 shows that young plantations yield relatively little carbon value. If site number 5 is discarded as being atypical, then the results suggest an incremental annual value of carbon ranging between US 240 and US 308 per hectare...

Global Scenarios In Biofuels Production

The OECD has forecast rising prices for agricultural commodity prices, particularly vegetable oils (OECD, 2008). While the world financial crisis of 2008 will slow demand for commodities in the near future, world economic growth will in time regain its former momentum. Given constraints on domestic supply, a likely scenario is that much of the developed world's needs for vegetable oils for biodiesel and human consumption and for ethanol to replace petroleum fossil fuels will be outsourced....

Forests as a source of biofuels

For thousands of years wood has been a major energy source. But in developed countries fossil fuels have become dominant, with renewables making up only 3.9 percent of all fuels in terms of oil equivalents in 2007 (International Energy Agency, personal communication, 2008). In contrast, in many developing countries wood remains the predominant household fuel for cooking and heating. Of the renewables, wood is second only to hydropower in importance globally (see Table 6.1). One of the ways that...

Box 61 Us And Eu Targets For Biofuels

The President's 2007 State of the Union Address (Bush, 2007) urged Congress to agree to increase the supply of renewable and alternative fuels by setting a mandatory Renewable Fuels Standard requiring 35 billion gallons of renewable and alternative fuels in 2017. This was nearly five times the 2012 target already in law. The Energy Independence and Security Act of 2007 already required 36 billion gallons of renewable fuel by 2022. In 2017, the President's plan would displace 15 percent of...

The Rising Tide Of Biofuels

The sustained rise in world oil prices has made renewable energy more cost-competitive. Previous oil price increases have tended to spike but then subside without having provided sufficient stimulus for large-scale private and public capital investments in plant and equipment for the production of biofuels. The rise in oil prices and the attendant increase in the production of biofuels from 1999 to 2006 are illustrated in Figure 6.2. The higher oil prices coincided with maturing technology for...

Country Negotiating Positions Explained

From the beginning of negotiations the US, Japan, Australia, Canada, New Zealand and Norway were the main proponents of LULUCF. The results suggest that their proactive position was driven by the prospect of lowering their compliance costs. The failure of the EU to support forestry's inclusion can be explained by the fact that it wanted to display a leadership role in terms of the perceived problems of LULUCF, together with a lack of strong interest groups lobbying for its inclusion.5 The...

Afforestation and Reforestations the Only Options in the CDM

In the first commitment period the role of non-Annex B countries under the CDM has been limited to A R. The Marrakesh Accords also placed limitations on the amount of credits claimable by Annex B Parties to 1 percent times 5 of their 1990 emissions (or 5 percent of their 1990 emissions for the period 2008-2012) (UNEP Risoe, 2008a UNFCCC, 2006b). Under the CDM, A R projects are restricted to those that would not have occurred without CDM financing and to areas that were not forested prior to...

Indirect GHG Impacts of Biofuels Policies

Given the global nature of the market for agricultural commodities, global agricultural models are required to measure the indirect GHG implications of biofuels. The results of selected models are now reviewed. A study of impacts of US corn-based ethanol production found that, instead of generating 20 percent savings in GHG emissions, it nearly doubles them over a 30-year period. Forest and grassland conversion that released large quantities of GHGs was accelerated by the higher crop prices....

Introduction

A range of techniques is employed in teasing out the role of forestry in tackling climate change. Socioeconomic analysis complements the technical data, and in most chapters leads to a policy position being taken. The introduction gives a flavor of the book and summarizes what are considered the major issues surrounding forestry's role. Global warming is the greatest known challenge facing the world. While future armed conflicts or global pandemics could possibly be more sudden in their...

Carbon Sinks and Climate Change

Forests in the Fight Against Global Warming School of Economics, The University of Queensland, Australia Cheltenham, UK Northampton, MA, USA All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA A...

Accounting for Emissions from Degradation

Under the Kyoto Protocol forests are defined as lands with more than 10 to 30 percent crown cover (UNFCCC, 2001). Carbon pools will thus consist of forests with 100 percent tree canopy down to 10 percent tree canopy. The degradation of a forest through selective logging, shifting agriculture or livestock grazing, seriously undermining its carbon content, may escape detection by remote sensing technologies (DeFries et al., 2007). Emissions from land-use conversions were estimated to be 25...

Costs And Funding Of Forestry Cdm Project Development

Cost ranges for steps in a project identified in Figure 2.4 total between 100 000 and 250 000. Costs need to be met long before the project generates CERs, which could take two years (UNEP Risoe, 2008a). Larger projects achieve economies of scale, while small-scale projects of less than 8000 CERs per year are presented with slightly fewer administrative hurdles. The first projects in the CDM forestry project pipeline have been promoted and funded mainly by the World Bank through its BioCarbon...

Case Study Discussion

Case Study Kyoto

It was concluded in Chapter 3 that payments should only be made for carbon actually sequestered, as verified by tree measurement or by models, such as in the NCAS toolbox, in conjunction with measurement. A case study in north Queensland illustrated both the direct physical Table 5.1 Additionally of carbon sequestered in reforestations of mixed native rainforest species in north Queensland Table 5.1 Additionally of carbon sequestered in reforestations of mixed native rainforest species in north...

REDD and Remote Sensing

It is important to establish how much forested countries in the tropics have been losing as well as how much they still have. The rates of deforestation in the past are a baseline against which the contemporary rate and future rates can be compared. Developing countries can then be compensated for the deforestation avoided. Where cloud cover is not a problem, optical satellite data, for example from MODIS, Landsat and SPOT, identify changes in forest area, but only at coarse or medium...

Weaknesses Of The Kyoto Protocol In Relation To Forestry

The accounting reference base for emission reductions and emissions is not uniform for all activities. Those from afforestation, reforestation and forest management are measured in the commitment period and directly added or subtracted from a country's assigned amounts. This is the so-called 'gross-net' accounting system (Schlamadinger, 2007b). However, deforestation is not accounted for consistently for all Annex I parties. Parties for which land-use change and forestry were a source of...

Structure And Trends In Markets For Forestry Offsets

The inclusion of forestry as a legitimate means of offsetting emissions is by no means uniform in regulatory schemes, as illustrated in Table 3.2. The import of emission reduction units (ERUs) and certified emission reduction (CERs), which can include forestry projects, is allowed into the EU ETS, but member countries cannot allow industries subject to caps on emissions to initiate forestry offset projects within their borders. The emission reductions generated by Kyoto projects, but not yet...

Modalities And Procedures For Afforestation And Reforestation Under The

Unlike abatement measures that prevent the release of CO2e to the atmosphere, there is a risk that carbon storage in forestry projects will be released back into the atmosphere at any stage of the project, thus reversing the climate benefit achieved. This can occur deliberately through harvesting or inadvertently through fire, pests or unlawful clearing. The type of CER chosen in developing A R projects under the CDM, whether temporary (tCER) or long-term (ICEr) (UNFCCC, 2004), must remain...

New Zealands ETS and biodiversity

As yet, few Annex I countries have adopted national schemes that allow industries to meet their targets by offsetting emissions through forestry plantations. New Zealand's emissions trading scheme (ETS) is one of the first and it encourages forest carbon sinks of either exotic or native species or 'assisted indigenous reversion' (Ministry of Agriculture and Forestry, 2008 2). (Under the Kyoto Protocol, reforestation includes the 'human-induced promotion of natural seed sources, on land that was...

Cost not offset by ex ante forestry offsets

Treponema Pallidum Antibody Igg Igm

Net costs are incurred in the early years of an offset when the rate of MSC increase is greater than the marginal sequestration rate of C. At the certainty equivalent discount (Newell and Pizer, 2000) which declines over time from 4 percent to 2 percent over 100 years, 21.4 percent of present costs are not covered by the 100-year offset. This effect of mismatch between the rate of increase of marginal costs and marginal carbon sequestration is exaggerated in a 30-year offset because there is...

References Of Kyoto Protocol

Australian Government (2006), 'Approval of Greenhouse Friendly abatement projects', Canberra, Australia Australian Greenhouse Office. Australian Government (2008), 'Carbon pollution reduction scheme Australia's low pollution future', white paper, Department of Climate Change, Canberra, Australia, available at Barlow, J., T. Gardner, I. Araujo, T. vila-Pires, A. Bonaldo, J. Costa, M. Esposito, L. Ferreira, J. Hawes, M. Hernandez, M. Hoogmoed, R. Leite, N. Lo-Man-Hung, J. Malcolm, M. Martins, L....

Biodiversity implications of the Pearl River Basin CDM project in China

This section is a case study of the first A R CDM project to be registered by the UNFCCC 'Facilitating reforestation for Guangxi watershed management in the Pearl River basin'. The source of the material is the project design document, available online (UNFCCC, 2008b). The project is located in Cangwa County, which has a subtropical monsoon climate, and Huanjiang County, with a cooler transitional monsoon climate, of the Guangxi Zhuang Autonomous Region in southern China. The project area is...

Financial Risks in CDM Forest Project Development

Carbon credits may provide the extra returns needed to make A R projects profitable. This is illustrated in a list of draft PDDs provided by Neeff and The seller may choose to forego the sale (retire) lCERs to avoid their replacement after harvest. R Project Registration V1-V4 Project Verification E Project end + Quantity of lCERs + Lifetime of lCERs The seller may choose to forego the sale (retire) lCERs to avoid their replacement after harvest. R Project Registration V1-V4 Project...

Indirect Effects of a US Cap and Trade Scheme

McCarl et al. (2002) forecast that biofuel and cap and trade policies divert land away from food crops to forestry and biofuel feedstocks. US agricultural producers will gain but US consumers lose as agricultural commodity prices increase, particularly as CO2e prices rise above 50 per tonne. The catch-22 is that increasing access to forestry and agricultural offsets allows cuts to be made in emissions at a lower cost, but with higher food prices. As with all such heavy policy interventions, the...

The Way Ahead

It cannot be emphasized enough that satellite data, no matter how accurate in resolution, must be linked to ground-based estimates of the forest carbon stocks in areas prior to their deforestation or degradation. This information would be available if carbon stock data had been recorded in plots established in forested and deforested areas or, if ground-based data were available, for similar strata. It is unlikely that there is sufficient time to gather a great deal more field inventory data...

How the Issue of Permanence is Dealt With in Different Schemes

The Kyoto Protocol deals with the issue of permanence of A R projects by assuming that all carbon credits generated by forestry are temporary. In the Clean Development Mechanism (CDM), CERs are either long-term (lCER) or short-term (tCER). Both types must be replaced by Kyoto units at expiry (see note 2). While this rule guarantees that forestry CERs are of similar value to other Kyoto units, it also adds complexity to the process of registering a CDM project. (Chapter 2 provides a more...

Incentives And Markets

William Nordhaus (2007 20) provides salutary advice ' I t is unrealistic to hope that major reductions in emissions can be achieved by hope, trust, responsible citizenship, environmental ethics, or guilt alone.' Climate change mitigation requires finance just reducing deforestation will cost billions of dollars every year for the foreseeable future. Who is going to put up this kind of money The solution that has most promise is to harness the market. Creating a demand for allowances to emit...

Growing New Forests for Biofuels

Analysis by the author suggests that unharvested plantations are much more effective in saving GHG emissions over a 34-year period than if they are harvested for ethanol production. Using the carbon sequestration model of the Australian Government (2007) the comparison was made between the amount of CO2 removed from the atmosphere by a hectare of hoop pine (Araucaria cunninghamii) grown in north Queensland and the carbon dioxide savings of a plantation that was clear felled, with the resulting...

Clearing Enabled Australia To Be On Its Kyoto Target

In contrast to many Annex I countries, Australia is likely to meet its Kyoto target of an increase in emissions in 2008-2012 over and above 1990 levels of 108 percent. This achievement will come about not by the adoption by the Australian government of successful greenhouse abatement strategies but rather by the actions of the states of New South Wales and Queensland, which banned large-scale clearing of native vegetation on conservation grounds (Hunt, 2004). In most countries LUCF was a net...

The Social Costs Of Increases In Biofuel Production

High food prices led to violent riots in 21 countries and non-violent riots in 44 countries according to the International Food Policy Research Institute 2000- 2001- 2002- 2003- 2004 2005- 2006- 2007- 2008-Jan Jan Jan Jan Jan Jan Jan Jan Jan 2000- 2001- 2002- 2003- 2004 2005- 2006- 2007- 2008-Jan Jan Jan Jan Jan Jan Jan Jan Jan (IFPRI) (von Braun, 2008). Figure 6.5 charts the IMF's commodity food price index since 2000. The World Bank has highlighted the problem of rising food prices 'Based on...

Is A Tonne Of Co2e A Tonne Of Co2e

Emission allowances to countries, and to emitters within countries, are in terms of carbon dioxide (CO2) equivalent. The major greenhouse gases are rated for their global warming potential and converted to CO2e, which is the commodity traded in the world's carbon markets. The workings of the markets for emission allowances and the role and potential for forestry in those markets are analyzed in Chapter 1. In assessing the potential role and importance of forestry the chapter finds that there is...

Biodiversity benefits of reforestation and avoiding deforestation

The term biodiversity encompasses the variety of life on earth, at the genetic, species, habitat and ecosystem levels. As well as such variation, biodiversity includes abundance the number of genes carried by individuals and populations in different places at different times. Also encompassed is the diversity of interactions between components of biodiversity such as pollination by birds and insects and predator-prey interactions. Biodiversity has evolved over the last 3.5 billion years of the...

Developers Choice Between tCERs and lCERs

Temporary CERs are issued for five-year periods. As the forest grows, each five-year period will yield more CERs, except where there is a fluctuation in sequestered carbon due to harvest or other factors. No liability is LCERs expire at the end of the crediting period and must be replaced. LCERs expire at the end of the crediting period and must be replaced. Source After Locatelli and Pedroni (2006 Figure 3). Figure 2.5b Long-term CERs (lCERs) in afforestation and reforestation incurred by the...

Types Of Biofuels

The most common type of biofuel is bioethanol, made by fermentation and distillation of sugar and starch. No engine modifications are needed in cars for blends of petrol and 10 percent ethanol. In the US the main feedstock is corn, in the EU sugar beet, feed wheat and barley, while in Brazil it is sugarcane. While biodiesel makes up only 5 percent of biofuel production it is important in Europe where diesel is in increasingly short supply and where increasing the diesel gasoline ratio is costly...

Postkyoto Policies And Rules For Forestry In Developed Countries

This brief review of domestic climate change policies has served to highlight the potential of forestry but also to raise questions concerning the extent of forestry's role. Should there be free rein on forestry credits, and if so what will be the indirect effects of induced land-use change This question must be addressed by further research. The current rules for land use, land-use change and forestry under the Kyoto Protocol relate almost specifically to developed countries. The LULUCF rules...

Is Greenhouse Gas Abatement Achieved By Biofuels

A major benefit claimed for the replacement of fossil fuels by biofuels is their potential to reduce (GHG) emissions. This claim needs to be subject to rigorous analysis because GHG savings depend on whether a simple life-cycle approach is taken to their estimation or a wider approach that recognizes the fact that the markets for biofuels are global. This analysis divides GHG emissions from biofuels into direct the savings incurred by replacing fossil fuels by growing and processing crops to...

The Opportunity Costs of Afforestationreforestation

In land-rich countries such as Canada, Australia and the US, existing forests are generally under government control. Increases in afforestation and reforestation therefore need to take place on private land. But the question needs to be asked whether landowners would be willing to afforest or reforest in order to gain carbon credits. A study in western Canada by van Kooten et al. (2002) found that 23 per cent of farmers were not interested in planting trees under any circumstances. Conclusions...

Policies for reducing emissions from deforestation and forest degradation REDD

The first part of this chapter discusses the mechanisms that have been put forward to account for the reduction in deforestation and forest degradation (REDD) in developing countries and to reduce the risk associated with the impermanence of forests and the leakage of deforestation to other locations. It also reviews funding mechanisms that are being considered. The second part takes a hard look at REDD, examining the political economy in which deforestation is embedded, the socioeconomic...

Preface

Nothing pleases me more than to look down on a primary tropical rainforest, the greenness interrupted here and there by a tree in flower, the canopy punctuated by great emergents and knowing that the whole teems with life. It is also satisfying to look across the landscape to where a dark line of a thriving plantation provides a contrast to the grassland in the foreground. While one can romanticize about forests, I have set out to be realistic in assessing their role in augmenting and...