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Local mitigation to climate change in the ASB: Potential for small-scale afforestation. J. Franz, A. Khamzina Center for Development Studies (ZEFb) Department of Economic and Technological Change University of Bonn, Germany. Outline. Motivation Climate change predictions in the ASB
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Local mitigation to climate change in the ASB: Potential for small-scale afforestation J. Franz, A. Khamzina Center for Development Studies (ZEFb) Department of Economic and Technological Change University of Bonn, Germany
Outline • Motivation • Climate change predictions in the ASB • Activities that are affected by and contributing to further climate change • How local strategies are beneficial for sustainable development and reducing GHG emissions • Possibility for Afforestation/Reforestation (AR) under the CDM • Preliminary conclusions/future work
Climate Change in the ASB • ASB naturally arid • Agriculture relies 100% on irrigation • More than 8 million ha irrigated • Poor water management/planning has led to the Aral Sea Crisis • Temperature increases will place further pressure on water resources(long-run) • Predicted increase in temp. above global mean: 3.7 C (long-run) • Glaciers shrinking 1% annually • Reduces downstream water flow by 30-40%
Climate Change in the ASB • Countries in the ASB also contributing to further climate change • GHG emissions have increased since 1992 in Uzbekistan and Turkmenistan above the global mean • Per capita ghg emissions and water consumption are among the highest in the world • Agricultural sector will be affected by climate change but also contributing • Degradation leading to desertification
Climate Change in the ASB • The countries in the ASB are non-Annex 1 • Not obliged to reduce emissions • Significant opportunities for Annex 1 countries to offset in these countries • C consumption for oil/gas very high • Natural conditions good for solar/hydro/wind • Large scale projects receive more interest • Low-hanging fruit principle • Small-scale projects have greater potential for sustainable, direct benefits, while decreasing GHG emissions
Afforestation/Reforestation • Small-scale (SSC) Afforestation/Reforestation (AR) • CDM for reducing GHG emissions • Co-benefits for sustainable development • timber/non-timber products • New M&Ps making SSCs more financially attractive • Increased permits from 8000 tons to 16000t of CO2 • Transaction costs reduced for small-scale projects • Special permit scheme under SSC A/R to account for permanence problem
Afforestation/Reforestation • Currently 25 AR projects in the validation stage • Of these 9 small-scale projects • 200-400 ha each • Satisfy additionality more easily than full-scale projects • Remain financially unattractive under most circumstances • Long-term benefits not adequately considered
Potential in Uzbekistan • Uzbekistan highly dependent on agricultural sector • Climate change threatens productivity/sustainability • Current practices have led to significant land degradation • Over 50% of irrigated land considered salt-affected • Salinization leads to degradation • Marginal lands widely available • Present low cost opportunity for A/R projects
Potential in Uzbekistan • Preservation of forests part of national environmental action plan • Recognition that timber/non-timber products in short supply • No existing tools for dealing with marginal lands • Developed an enabling environment for carbon financing • 0ver 60 PINs at various stages of planning • oil/gas; municipal services • One on afforestation-rejected
Potential in Uzbekistan • Afforestation demonstrated in the Khorezm region • Under ZEF/UNESCO Project • Source of ecological and economic benefits for rural farmers • Multipurpose trees well adapted to the region • Marginal lands with zero opportunity cost used • No longer sown to cotton/wheat
Potential in Uzbekistan • Multipurpose trees planted on 2 ha experimental site • Experiment ran over 5 years • Irrigation 1/10 of what is required for cotton/wheat production • Saline shallow ground water table appropriate • Above ground/below ground biomass approx. 35 t/ha • Approximately 21 t C captured by 5th year
Khorezm, Uzbekistan (March, 2004) Potential in Uzbekistan
Khorezm, Uzbekistan (Spring, 2006) Potential in Uzbekistan
Potential in Uzbekistan • Profitability demonstrated • Net revenue approximately 2000 USD after 5 years • Sale of timber/non-timber products • Shortage of fodder and fuel in rural areas • Initial investment in tree plantations still too high for farmers • 1000-2000 USD per ha • Small-scale loans unavailable • SSC/AR projects may provide additional revenue to make project go beyond profitability threshold
Conclusions/Future work • Ex-ante assessment needed • SSC AR has not been sufficiently explored in the Uzbekistan context • Revenue from SSC AR permits still insufficient to cover initial outlay • Even under revised M&Ps • If long-term benefits to farmers considered projects sustainable option for local mitigation and income • Could the SSC/AR permits promote interest in afforestation in UZBs