ASB SYMPOSIUM High Carbon Development Pathways II World Congress of Agroforestry

1. Environmental Services Provision in the Transamazon: Cocoa-based Agroforestry and Community-Company Forest Management ASB SYMPOSIUM High Carbon Development Pathways II World Congress of Agroforestry August 26th, 2009 Roberto Porro World Agroforestry Centre (ICRAF) Amazon Initiative Consortium (IA)

2. Potential REDD Impact of Smallholder Carbon Land use change and deforestation are critical drivers of climate change contributing to 20-25% of global emissions. Reducing deforestation is a requirement to climate change mitigation! Smallholder carbon agroforestry can be critical in reducing deforestation while restocking deforested lands. It can have a major impact on REDD as globally, up to 42% of deforestation is driven by small scale agriculture and shifting cultivation (Blaser and Robledo, 2008), a considerable % of which is linked to poverty and lack of economic alternatives.

3. Smallholder Carbon Agroforestry Unique opportunity to combine: • climate change mitigation • adaptation by poor, vulnerable communities • sustainable development • livelihood improvement, & • biodiversity conservation By planting trees that remove carbon dioxide from the atmosphere, smallholders could claim an important share of the carbon market and generate income that could be used locally to promote rural development.

4. The overall impact of carbon land use projects will be greater if smallholders benefit! • 265 million hectares of degraded land available for restoration (UNFCCC Special Report 2000) • 630 million hectares of unproductive cropland and grassland available for agroforestry (UNFCCC Special Report 2000) • A significant portion of this area is adjacent to tropical humid forests • This almost 1 billion ha area is significant in relation to the world’s near 4 billion ha of forests (FAO State of the World’s Forests 2007) • Potential C sequestration is significant (area times 50 tC/ha): ~ 50 billion tons of C. • The scale of possible carbon finance is large relative to current agricultural ODA: all ODA for agriculture $2.2 billion compared to ~$3 billion that is only 5% of current carbon market.

5. Benefits from smallholder high carbon-stock agroforestry • Climate change mitigation (of carbon emissions) through sequestration in soil and biomass, as well as conservation of forest C stocks. • Adaptation: increased soil water holding capacity, soil fertility; integration of drought resilient trees into agricultural systems. • Livelihoods: food security, income security, long-term sustainability, non-cash benefits, diversification of productive base • Biodiversity: habitat structure connectedness and direct increase in species richness and evenness • Partnering with local communities through supporting sustainable land use systems helps to ensure bio-carbon sequestration permanence.

6. SMALLHOLDER COCOA-BASED AGROFORESTRY AT THE SUSTAINABLE DEVELOPMENT PROJECT, ANAPU - PARA STATE BRAZIL An example of a prospective project from the Brazilian Amazon provides an opportunity to demonstrate the feasible integration of cocoa-based AF, REDD-PES, and sustainable forest management in a smallholder context, and what the challenges of implementing such project might be.

7. Project history, context and location ANAPU’s PDS scheme 52,480 ha 400 smallholder families First of ~ 80 such schemes (30,000 sq. km in Amazon) “environmentally-friendly” land reform schemes Assisted by Dorothy Stang Each colonist family has use rights, allowed to deforest 20 ha Remaining land is common (community associations)

8. Sustainable Development Pathways at Anapu’s PDS Integration of cocoa agroforestry, PES for avoided deforestation and sustainable forest management to prevent climate and biodiversity deterioration while enhancing livelihoods. Specific objectives are: • Sustainable forest management of 30,000 ha through community-company agreement (in operation since 2008) • Avoided deforestation of 24,000 ha (400 families x 60 ha) over 20 years through a community-managed PES scheme. • PES and forest management income to finance the gradual implementation of 2,000 ha of cocoa-based AF (400 families x 5 ha), thus reducing slash-and-burn. (4) Facilitate contracts connecting investors (or governmental incentives), certifiers and ES providers. (5) Formalize an inter-institutional partnership to quantify and monitor ES, carbon stocks, and emission reductions, projecting payments and benefits;

9. Sustainable Forest Management Community Capacity building - training Forest inventory (84 species) Management plan 35 year rotation cycle Expected harvest: 30 m3/ha

10. Community-Company Agreement Company selected by community, supervised by public authorities Will employ 80% of labor from the community 10% of annual timber volume: portable community sawmills Vigilance system against illegal loggers

11. Revenues from timber: Market prices received before = US$25 / tree !! 2008 Community-Company Agreement Prices per cubic meter: Species “A”: US$ 100-180 Species “B”: US$ 60-100 Species “C”: US$ 30-60 Species “D”: US$ 10-30 YEAR 1 (partial implementation) = US$ 650 / household / year Likely to increase in 3-5 years with expected certification

12. Payments for Environmental Services: 24,000 ha avoided Deforestation Potential Revenues from avoided emissions SQ=status quo; PDS= sust.dev.project; +PES= PDS+env.credit

13. Cocoa-based smallholder agroforestry: • Cocoa is a traditional colonist cash crop in the Transamazon • 40,000 tons produced annually Potentially to be accepted as “forest” land cover for the compliance of Brazil’s Forest Code (80% forest land in each landholding in the Amazon region)

14. Expected Revenues from Cocoa

15. Challenges: Tenure security for entire PDS area (1) Sustainable Forest Management Enforcement of vigilance in a 50,000 ha land Environmental license for management plan Certification costs Capacity building for efficient monitoring Technical support (2) Payments for Environmental services Government definitions for a PES policy Methodology Field-based measurements Format for payments Transaction costs

16. (3) Cocoa-based agroforestry Access to credit Low productivity Insufficient technical assistance Incipient value chains Transportation conditions Species selection for preferable multistrata systems Carbon measurements and monitoring No rewards as a carbon-stock enhancing land use system.  The proposed scheme is a concrete alternative to advance in integrating policy / market / livelihood strategies.