1 / 18

Voluntary markets for afforestation , reforestation and avoided deforestation

Voluntary markets for afforestation , reforestation and avoided deforestation. Learning outcomes. In this presentation you will learn about voluntary markets for afforestation , reforestation and avoided deforestation. . Topic 5, Section F, slide 2 of 17. Topic 5, Section I, slide 2 of 18.

bly
Download Presentation

Voluntary markets for afforestation , reforestation and avoided deforestation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Voluntary markets for afforestation,reforestation and avoided deforestation

  2. Learning outcomes In this presentation you will learn about voluntary markets for afforestation, reforestation and avoided deforestation. Topic 5, Section F, slide 2 of 17 Topic 5, Section I, slide 2 of 18

  3. Outline • Introduction • What is a voluntary market? • Examples of compliance markets • Example of voluntary markets • Example of voluntary carbon projects Topic 5, Section I, slide 3 of 18

  4. Introduction • Afforestation and reforestation (A/R) Clean Development Mechanism (CDM) was designed to comply with legally binding Kyoto Protocol to mitigate climate change • The rules and modalities follow the Marrakech Accord • To date only six A/R CDM projects are approved out of more than 1700 registered CDM projects • REDD is entering its readiness phase • Learning the lesson from A/R CDM process and its complexity, voluntary A/R and REDD markets are emerging Topic 5, Section I, slide 4 of 18

  5. What is a voluntary market? • Markets that do not need to comply with rules that are legally binding, such as the CDM under the Kyoto Protocol • To demonstrate their integrity, the markets voluntarily follow accounting and verification systems applied in the compliance markets • The must produce Verified Emission Reduction (VER) rather than Certified Emission Reduction (CER) in A/R CDM Topic 5, Section I, slide 5 of 18

  6. Voluntary markets for A/R CDM • Portfolio Carbon Fund (PCF) • all sectors • with loan component • Community Development Carbon Fund (CDCF) • for small-scale projects • sector: energy, urban, waste, agroforestry • prioritises the Least Developed Countries • contract price US$26 to US$28 per tonne of carbon • Bio Carbon Fund (BCF) • Land-use, Land-use Change, and Forestry (LULUCF) sector • to improve people’s livelihoods • to avoid erosion and desertification • contract price US$12 to US$16 per tonne of carbon Topic 5, Section I, slide 6 of 18

  7. RED financing: buyer’s/donor’s view Buyer/donor’s view • Price/impact per $ • Quality of product • Biodiversity conservation • Social equity • Permanence • Sovereign risk • Fungibility in markets • Credit for early action • Political feasibility Possible buyers/donors • Development agencies/Banks (US$40 B/y) • Bilateral donors (US$80 B/y) • Kyoto market (low B/y) • Voluntary markets (lower B/y) • NGOs ($100s M/y) Topic 5, Section I, slide 7 of 18

  8. RED financing: seller’s view Seller’s view • Capacity building • Upfront payments for transitional costs • Guarantee of continuing funding for maintenance • Bundle with other Payments for Environmental Services (PES) • Social equity • Political feasibility Differing circumstances • Active deforestation • Potential future deforestation • Early action to reduce deforestation • Forest degradation Topic 5, Section I, slide 8 of 18

  9. Examples of compliance markets(as of30 July 209) ETS=Emission Trading SchemeNSW=New South WalesCCX= Chicago Climate Exchange Topic 5, Section I, slide 9 of 18

  10. Examples of voluntary carbon markets Updated very frequently Biodiversity Markets $ 373,980,629 Water Markets $ 373,655,115 Carbon Markets $ 92,344,370 Cost (US$) Land Other   642,600   n/a US Conservation Banking 238 Endangered Species Credits 307.5 acres 308.81 wetland credits US Wetland Banking 27,792,900 Source: Ecosystem Marketplace Topic 5, Section I, slide 10 of 18

  11. Example of voluntary carbon projects (1/2) Topic 5, Section I, slide 11 of 18

  12. Example of voluntary carbon projects (2/2) Topic 5, Section I, slide 12 of 18

  13. Carbon certification • Voluntary Carbon Standard (VCS) • initiated by the Climate Group, the International Emissions Trading Association and the World Economic Forum • established in late 2005 • Climate, Community and Biodiversity (CCB) Standards • initiated by Conservation International • first edition standard was launched in 2005 • advised by CIFOR, Tropical Agricultural Research and Education, and World Agroforestry Centre • The Gold Standard • initiated by World Wildlife Fund, SSN and Helio International • the Gold Standard for CDM projects was launched in 2003 Topic 5, Section I, slide 13 of 18

  14. Voluntary Carbon Standard (VCS) • Standardise and provide transparency and credibility to the voluntary offset market • Enhance business, consumer and government confidence in voluntary offsets • Create a trusted and tradable voluntary offset credit; the Voluntary Carbon Unit (VCU) • Stimulate additional investments in emissions reductions and low carbon solutions • Experiment and stimulate innovation in emission reduction technologies and offer lessons that can be build into future regulation • Provide a clear chain of ownership over voluntary offsets that prevents them being used twice; this is achieved through multiple VCS registries and a central project database that is open to the public http://www.v-c-s.org/ Topic 5, Section I, slide 14 of 18

  15. Climate, Community and Biodiversity (CCBA) Standards • Identify projects that simultaneously address climate change, support local communities and conserve biodiversity • Identify projects that promote excellence and innovation in project design • Mitigate risk for investors and increase funding opportunities for project developers • CCB Standards certification can help projects garner international credibility and locate additional support and resources http://www.climate-standards.org/ Topic 5, Section I, slide 15 of 18

  16. The Gold Standard • Help investment in additional sustainable energy projects • Ensure significant and lasting contributions to sustainable development • Provide assurance that investments have environmental integrity • Increase public support for renewable energy and energy efficiency http://www.cdmgoldstandard.org/ Topic 5, Section I, slide 16 of 18

  17. Discussions • Should carbon credits in a compliance market be only about carbon? • Should they require co-benefits like sustainable development and biodiversity conservation? • In either or both cases, how should the requirement be structured? • If not, why not? Topic 5, Section I, slide 17 of 18

  18. Thank you for your attention

More Related