The Climate, Community & Biodiversity Standards

1. The Climate, Community & Biodiversity Standards When, why and how to use CCB Standards Joanna Durbin Director, Climate, Community & Biodiversity Alliance

2. Land-based Options for Mitigating Climate Change • Reducing carbon emissions by: • Preventing or reducing deforestation or other carbon-rich natural habitat conversion • Improving soil management & reduced nitrogen fertilizer use • Increasing carbon uptake through: • Reforestation, afforestation and forest restoration • Improved forest management • Integration of trees into agricultural systems (agro-forestry)

3. Land-based carbon activities have great potential impact on people and biodiversity Negative • Clearance of natural ecosystems • Threats to endangered species • Reduced water regulation/quality • Loss of natural pollination • Exclusion from land and resources • Non-respect of customary tenure/rights • New influences (immigration, revenues, power) can degrade traditions and cause social conflicts

4. Land-based carbon activities have great potential impact on people and biodiversity Positive • Watershed & soil protection • Agricultural productivity enhancement • Employment or new livelihoods • Revenue sharing • Biodiversity conservation • Continued use of forest products • Maintenance of traditional livelihoods and culture

5. The Climate, Community & Biodiversity Alliance Alliance Members Advisors Mission: To catalyze the creation of a robust, global carbon market for land-based activities that simultaneously benefit the global climate, local communities and biodiversity

6. Project design and implementation is key • Baselines & Additionality • careful site selection • Measurement & Monitoring • apply best practices • Offsite impacts (leakage) • build in sustainable livelihoods • Permanence  long-term management, community incentives, buffers • Negative tradeoffs • design for multiple-benefits

7. Two-Year International Stakeholder Process • Public and expert comments • Field testing - Tanzania - Peru - Bolivia - Ecuador - Indonesia - Scotland • Independent peer review • ICRAF • CATIE • CIFOR • First Edition released May 2005 • Translated into Chinese, French and Spanish • Further revisions are planned

8. CCB Standards are project design standards • CCB Standards are applied up front • Identify and validate high quality project design -Encourage sensitive and integrated design to generate positive social and biodiversity impact -Stimulate investment in project development and ex-ante carbon • AND attract investors interested in multiple benefits • Stimulate investor preference/potential price premium • Attract co-funding for community and biodiversity benefits eg from Govts, overseas development assistance, NGOs,

9. CCBS build confidence in forest carbon • Baselines & Additionality How can high quality project design and multiple-benefits reassure an investor? • Additionality – many multiple-benefit projects are not entirely commercially driven thus would not make economic sense without carbon funding • Leakage – building sustainable livelihoods around project site reduces risks of shifting destructive practices elsewhere, off-site impacts must be defined and monitored • Permanence – ecological stability & community incentives increase prospects for durability, and buffers can be employed as insurance against loss

10. CCBS demonstrate community and biodiversity benefits • Baselines & Additionality • community and biodiversity impacts are clarified - Baselines, methodologies, expected impacts and monitoring plans Why would investors be interested in additional benefits? • Avoid negative social/environmental impacts • Community incentives and sustainable landscapes can help reduce risks to carbon of permanence and leakage • Marketing ‘story’ • Multiple objectives for corporate social responsibility to appeal to consumers/staff/regulators, • Can improve credentials to enable greater access or license to operate

11. The Climate, Community & Biodiversity Standards • Independent 3rd party validation

12. General Criteria General criteria G1. Original Conditions at Project Site Required G2. Baseline Projections Required G3. Project Design & Goals Required G4. Management Capacity Required G5. Land Tenure Required G6. Legal Status Required G7. Adaptive Management for Sustainability 1 point G8. Knowledge Dissemination 1 point

13. Climate Criteria Climate criteria C1. Net Positive Climate Impacts Required C2. Offsite Climate Impacts (“Leakage”) Required C3. Climate Impact Monitoring Required C4. Adapting to Climate Change & Variability 1 point C5. Carbon Benefits Withheld from Reg. Markets 1 point

14. Climate Criteria C1. Net Positive Climate ImpactsRequired • Concept • The project must generate net positive impacts on atmospheric concentrations of greenhouse gases (GHGs) within the project boundaries and over the project lifetime. • Indicators • Use the methodologies of the Intergovernmental Panel on Climate Change’s Good Practice Guidance (IPCC GPG) to estimate the net change in carbon stocks due to the project activities. The net change is equal to carbon stock changes with the project minus carbon stock changes without the project (the latter having been estimated in G2). Alternatively, any methodology approved by the CDM Executive Board may be used. This estimate must be based on clearly defined and defendable assumptions about how project activities will alter carbon stocks and non-CO2 GHG emissions over the duration of the project or the project accounting period. • Factor in the non-CO2 gases CH4 and N2O to the net change calculations (above) if they are likely to account for more than 15% (in terms of CO2 equivalents) of the project’s overall GHG impact. • Demonstrate that the net climate impact of the project (including changes in carbon stocks, and non-CO2 gases where appropriate) will give a positive result in terms of overall GHG benefits delivered.

15. Community Criteria Community criteria CM1. Net Positive Community Impacts Required CM2. Offsite Community Impacts Required CM3. Community Impact Monitoring Required CM4. Capacity Building 1 point CM5. Best Practices in Community Involvement 1 point

16. Community Criteria CM3. Community Impact Monitoring Required • Concept • The project proponents must have an initial monitoring plan to quantify and document changes in social and economic wellbeing resulting from the project activities (within and outside the project boundaries). The monitoring plan should indicate which measurements will likely be taken and which sampling strategy will be used to determine how the project affects social and economic wellbeing. Since developing a full community-monitoring plan can be costly, it is accepted that some of the plan details may not be fully defined at the design stage, when projects are being evaluated by the CCB Standards. This will especially be true for small-scale projects. • Indicators • Have an initial plan for how they will select community variables to be monitored, and the frequency of monitoring. Potential variables include income, health, roads, schools, food security, education and inequality. Community variables at risk of being negatively impacted by project activities should be monitored.

17. Biodiversity Criteria Biodiversity criteria B1. Net Positive Biodiversity Impacts Required B2. Offsite Biodiversity Impacts Required B3. Biodiversity Impact Monitoring Required B4. Native Species Use 1 point B5. Water & Soil Resource Enhancement 1 point

18. The CCB Standards - validation procedure • Internal desk review • Contract 3rd party validator (CDM or FSC accredited) and provide docs • PDD and supporting docs posted to CCBA website for 21 day public comment period • Validator site visit • Audit report – may require changes to PDD or further documentation • Improved PDD/documents submitted as required • Validator issues statement of compliance and level (approved, silver or gold)

19. The CCB Standards – progress on adoption Project Development: • Two projects validated: Tengchong and Panama • Five posted for public comment; Tanzania, India, UK, Indonesia, Nicaragua • Around 80 projects planning to use CCBS • Represents estimated vast majority AFOLU under devpt • CCBS covers all AFOLU: A/R, AD, and forest management • Useful for voluntary and regulatory markets Demand: • Major portfolio investors: World Bank BioCF, EcoSecurities • Carbon retailers (e.g., Carbon Neutral Company, The CarbonFund, 3 degrees, 3C) • Major corporations + carbon tenders: Dell, Mariott, Ricoh, • 54% prefer CCB projects, 40% willing to pay premium • $1-2/tonne premium • $5-15/tonne CO2 equivalent • Currently greater demand than supply for CCB carbon

20. Timeline for application of CCB Standards Carbon verification standard CCBS CCBS 5 years Project Design Phase Project Implementation ~5-10 years for restoration, ~1-5 years for RED before sufficient carbon benefits on ground to verify Enables ex-post carbon sales Verifies that project has been implemented according to design, verifies monitoring reports of carbon, community and biodiversity benefits, validates adaptation of project design CCBS Validation enables ex-ante carbon sales and up front investment to implement project

22. The Climate, Community & Biodiversity Standards • Promote excellence and innovation in project design • Identify projects that simultaneously address climate change, support local communities and conserve biodiversity • Provide investors with risk management tool • Enhance the credibility of carbon forestry sector • Facilitate bundling and stacking of PES

23. More information available from… www.climate-standards.org Joanna Durbin Director, CCBA Email: jdurbin@climate-standards.org Cell: + 1 703 623 4441