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Implementing CDM Bio- Carbon Project in Himachal Pradesh: Inception to Income

Implementing CDM Bio- Carbon Project in Himachal Pradesh: Inception to Income. A K Lal CCF cum ED, HP Mid Himalayan Watershed Development Project , Solan , HP, 173212 09418020350 (cell) aklal87@gmail.com. Cold Dry. High Hills. Mid Hills. Shiwaliks.

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Implementing CDM Bio- Carbon Project in Himachal Pradesh: Inception to Income

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  1. Implementing CDM Bio- Carbon Project in Himachal Pradesh: Inception to Income A K Lal CCF cum ED, HP Mid Himalayan Watershed Development Project, Solan, HP, 173212 09418020350 (cell) aklal87@gmail.com

  2. Cold Dry High Hills Mid Hills Shiwaliks • 92% human population lives in rural areas. • 92% villages have population less than 1000. • 80% population is engaged in agriculture sector • 84.5% are small and marginal farmers • Agrarian economy • Mainly rain-fed agriculture and horticulture.

  3. Milestones • Sept 2006 : PIN Approved • May 2008 : PDD Approved • July 2009 : Validation completed • Dec 2009 : Registration ( Start Date July 2006) • May 2011 : ERPA signed • July 2012 : Carbon Stock Sample • Dec 2012 : Carbon Stock Estimate • October 2013 : Likely Verification

  4. Highlights • First in India in Govt. Sector involving govt. lands (forest & community) as well as private land Integrating Watershed development and livelihood • First Pilot to test community benefit sharing mechanism through Carbon Markets involving govt. agencies and local institutions • Second Large A/R CDM Project in India • Has 4 times higher ER than the highest in A/R Sector (Maldova -179,242) –HP –Expected ER 828,016

  5. Project at a Glance • Title- “India: Himachal Pradesh Reforestation Project- Improving Livelihoods and Watersheds” • Reforestation Project • Expected Operational Life time : 60 Years • Crediting period : 20 years (Renewable twice) • Project proponent : Government of HP • Project Partners : Govt. of H.P; World Bank; Govt. of Spain

  6. Project at a Glance Contd---- • Area : 4003 ha • GPs : 177 • Parcels : 419 • Size of parcels : 1 to 150 ha • Land status: degraded forest /community land/private land • Methodology : AR-ACM-001 (Version .03) • Carbon Pool Selected: 3 (AGB+BGB+SOC) • Estimated ex-ante GHG removals by sinks ~ 828 Kt CO2 -e

  7. Guiding Principles • Identify Native and local Species. • Involve Communities in reforestation efforts. • Value addition to ongoing watershed interventions. • Technical and financial support for reforestation • by MHWDP (including capacity building). • Carbon Revenue to go to communities as incentive to protect Forests/ Watersheds.

  8. Steps : Inception to Income

  9. Project Boundary and Land Eligibility • Cluster of Multiple Discrete Parcels of land • Remote Sensing Data - GPs with significant quantities of eligible lands shortlisted (FSI data/Survey maps). • Communities sensitized, PRA conducted to identify Spare-able/agreed land parcels likely to qualify. • GPS Survey - Generate Boundaries/polygans, measure area. • FSI analysis for eligibility using Satellite Data- 1990 (TM) and current (LIS-III). • Generated output on maps. • Scrutiny by Validation Team – Onsite Visit / Satellite Data

  10.   2004 IRS P6 LISS III 1989 LANDSAT TM

  11. NM 060-P1

  12. SPREAD OF PARCELS – DISTRICT.

  13. Land Categories and Models

  14. Stratification

  15. STRATIFICATION • Baseline & Project • Degraded Forest Land (Restoration Forestry Model) • Low (600 - 1100 m) • Medium (1100 - 1400 m) • High (1400 - 1800 m) • Degraded Community Land (Community Forestry) • Low (600 - 1100 m) • Medium (1100 - 1400 m) • High (1400 - 1800 m) • Degraded Private Land (Farm Forestry) • Low (600 - 1100 m) • Medium (1100 - 1400 m) • High (1400 - 1800 m)

  16. Demonstration of Additionality (Combined Tool) Alternative Scenarios Forest & Community Lands can’t be put to other use except Afforestation; Pvt. Lands Degraded (Unfit for Agriculture) Barrier Financial – F & C –Currently Low budget allocation ; P- No State budget available nor Financial access from Capital markets Ecological- Degraded Lands require Higher & Continuous Caring, Tending & After-Care of Plantations Common Practice Analysis –Incentive of Carbon Revenue for Continuous Caring & Tending of Plantations; Improved Silviculture Practices

  17. Estimation of Net GHG Removals (Ex ante) • TARAM model of WB used • Compilation of Rep. Growth Rate of a Age Class for Stand Model – as input to TARAM has been a challenge • Species – 45 • Strata – 9 • Age Classes 4 (<5y; 5 -10y; 11-20y; >20y) • Growth Rates -2 (Fast ; Slow) • Large No of Literature Values of CAI/MAI • Lack of Complete/Sufficient Rep Regional Data

  18. j BEF = Biomass Expansion Factor j j , t j R = Root to Shoot Ratio j = Species dependent t = Time dependent Key Variables D = Wood Density V = Trunk volume Above-Ground Biomass (AGB) = V*BEF*D Below-ground Biomass = ABG*R About half of the biomass is Carbon

  19. Calculation of Carbon Stocks Cumulative Area under each Strata (stand) (B) Av. MAI [t/ha] (Literature): Fast Growing- Slow Growing- (C) Av. BEF (IPCC default) : 1.2 (D) Total AGB : (A)*(B)*(C) (E) Total AG_Carbon : (D)*0.5 (F) Total BG_ Carbon: (E)*0.22 (G) Total Carbon: AG_C+ BG_C+SoC (0.5t/ha) (H) Total CO2 Eq: (G)*3.66

  20. Values Used for C stock Estimation BEF : Literature Value of 17 Sp. Taken Av. Value 1.98 (1.49 – 2.90) Conservative Value - 1.2 (IPCC GPG 2003) used Root : Shoot Ratio- Literature Value of 13 Sp Av. Value 0.22 (0.17 – 0.39) used IPCC Default 0.26- (Higher) Carbon Fraction -0.5 SoC – 0.5 tC/Ha/Yr (Methodology)

  21. Wood Density

  22. Baseline Estimation of ex ante Baseline Net GHG Removals Degraded Lands have Negligible or Zero other Carbon Pools (Litter, Dead Wood, Non Tree Biomass) MAI = 0.004 t/Ha/Yr Av. Growing Stock = 3.27 t/Ha (Insignificant, Not Included)

  23. Year wise Planted Area

  24. Plantation Survival (%) Dec-2012

  25. Estimate of GHG removals by sinks according to project activities for the three plantation models in tCO2-e

  26. Projected Revenue from Sale of CERs

  27. CARBON REVENUE 10 % Overhead Charges MHWDP/ FOREST DEPARTMENT PRIVATE LAND FOREST LAND COMMUNITY LAND 20 % of carbon revenue 20 % of remaining carbon revenue 80 % of remaining carbon revenue 90 % of carbon revenue Gram Panchayats’ GP FUND (undertaking works as approved in GPWDP ) Gram Panchayats’ GP FUND (undertaking works as approved in GPWDP ) 80 % of carbon revenue Owner or Attorney USER GROUP/VFDS (members responsible for protection of land parcel) USER GROUP/VFDS USER GROUPS/ VFDS (members responsible for protection of land parcel depending upon their share /rights in land parcel)

  28. A/R CDM Bio Carbon ProjectMONITORING • Process • Reporting • Compilation, Analysis, Calculation • Way Forward

  29. Monitoring Process • Monitoring By PP as per Monitoring Plan • Periodic Verification of Carbon Stocks by Third Party Verifiers (3-5 Yr) • Parameters • Formats • Team & Mechanism • Quality Checks • Recording • Results • Archiving

  30. Reporting for Monitoring • Land Stratification and Category Details • Parcel Details: Area , Latitude, Longitude, Altitude • Species Details: Composition, No.( stratum and • category wise) • Growth Data: DBH, Height , • Survival • Undergrowth Data • Contractual Agreement Details

  31. Income likely by Sale of CERs

  32. LESSONS LEARNEDBarriersConditionalities UncertaintiesFlexibility

  33. Adjust the Rules • Develop Project as Total Economic Beneficial Model-Highlight socio environmental outcomes • Develop BC Project as Sub Project of existing/ proposed Main Project soon • Go for ERPA as soon as possible after Registration • Keep Parameters Flexible to accommodate deviations • Try to project the Project as a win –win work • If not, better ignore it : uncooked is better than half cooked

  34. THANK YOU

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