Involving the market ProClimate

ProClimate – 10 Dec Current situation: Commercial agriculture started after WOII, after 70 years it has resulted in: Strong growth in world food output Expansion of (small holder ) agriculture towards fragile ecosystem hotspots 20-25% of agricultural land in state of degradation Agriculture causes 30% of global GHG emissions, of which 50% caused by deforestation/land conversion/land degradation) Future: Increasing population to 9 billion in 2050 More demand for food crops Annual global growth in demand of 1,5-2%

ProClimate – 10 Dec Coffee and cocoa agro-forestry -> part of the solution? Coffee: Originate from forest areas, Arabica coffee Ethiopian highlands, Robusta coffee Uganda forest regions, Cocoa: Originate Amazon basin, from there has been taken to rain forest areas. Both “trees” combine well with shade trees as this is there natural habitat. But farm establishment and production expansion has caused land conversion (deforestation) globally and production is under pressure in many regions: climate reality: coffee

ProClimate – 10 Dec Coffee and cocoa regions are under pressure? Present yourself to your neighbour and in case you have been to producer regions or deal with farmers/suppliers in your work please share your observations, what is happening in producer regions: where ? what have you observed? yields ? farm management? water resources? income levels? feedback from farmers? landscape changes?

ProClimate – 10 Dec Coffee and cocoa regions are suffering from Climate Change and farming systems need to adapt, Proclimate identified three levels: Farm level: Climate adaptation / Climate Smart Agriculture Landscape level: Restoring degraded land (reforestation / agro-forestry) Regional level: Reduce pressure on bio-diversity hotspots These interventions have an adaptation and GHG mitigation effect: Carbon stored in soils (mulching/compost/green cover) Carbon stored in trees (below and above ground) Less GHG emissions better use of fertilizers, farm residue recycling

ProClimate – 10 Dec Coffee and cocoa Climate Adaptation and GHG mitigation are part of : 1. Voluntary standards: C4 Climate add-on RFA Climate Friendly module UTZ Climate Care 2. Carbon projects: Afforestation Reforestation projects Agro-forestry projects Climate Smart Agriculture projects (in development) 3. LCA/footprint approach: Assessment of a product from cradle to grave -> carbon, water

Proclimate portfolio Proclimate mainly used the carbon project approach because: Long term projects (20 years) Value creation for farmers Carbon markets (GHG mitigation) used as financing mechanism Carbon sold within (insetting) or outside value chain Mitigation finances adaptation, productivity improvement, resilience, reduce cost of production

The Cost-Benefit – 3 stages

Our current activities Central Peru: Introduction of shade trees in small holder cocoa plantations Carbon cerification Central Peru: Introduction of shade trees in small holder cocoa plantations Carbon cerification Kenya: Landscape level: Introduction of shade trees in small holder coffee plantations Carbon certification unsure Kenya: Landscape level: Introduction of shade trees in small holder coffee plantations Carbon certification unsure Uganda: Introduction of shade trees in small holder coffee plantations 8 million trees, cookstoves Uganda: Introduction of shade trees in small holder coffee plantations 8 million trees, cookstoves Indonesia: Feasibility for farm level: Farm renovation with small holder coffee producers Indonesia: Feasibility for farm level: Farm renovation with small holder coffee producers Nicaragua: Landscape level: small holder reforestation and agro-forestry (cocoa) 200 Ha, 96 farmers Carbon certification Nicaragua: Landscape level: small holder reforestation and agro-forestry (cocoa) 200 Ha, 96 farmers Carbon certification Tanzania: Landscape level: Reducing GHG emissions from coffee production Initial producers 7500 Ha Tanzania: Landscape level: Reducing GHG emissions from coffee production Initial producers 7500 Ha Northern Peru: Landscape level: Farmer community reforestation 224 Ha 10 communities Carbon cerification Northern Peru: Landscape level: Farmer community reforestation 224 Ha 10 communities Carbon cerification Northern Peru: Farm level: Rice to cocoa conversion 250 Ha 150 farmers Carbon project CSA Northern Peru: Farm level: Rice to cocoa conversion 250 Ha 150 farmers Carbon project CSA Central Peru: Farm level: Introduction of shade trees in small holder coffee plantations Carbon certification Central Peru: Farm level: Introduction of shade trees in small holder coffee plantations Carbon certification

Proclimate project Kenya  Multiple partners, producer coops, trader, NGO’s.  The GiiNii app The GiiNii app

Key lessons from ProClimate The business case for farm renovation/landscape restoration is there, but:  Local technical partner needed  Compliance with carbon certification in smallholder systems challenging  Restoration takes time – Bridge funding / patience needed  Long-term commitment from trader, roaster, bank needed  Carbon market highly dynamic  Carbon is a hard sell to a broad audience  Businesses see the value to restore their origins but is not there main focus

Challenges for the future In the case you discussed with your neighbour how would a farm renovation landscape restoration program look like, would it fit within: 1)Voluntary standards? the 4C climate module, RFA climate friendly code, UTZ Climate Care 2)Carbon project approach? 3)LCA/Footprint assessment and GHG reduction strategy? Questions are: Who are your partners? What would be the time frame, costs/benefits? What is in it for whom? What is the scale, how many farmers, Ha etc? How will you be able to “sell” it, within the company, outside the company? What concrete steps can you take and what do you need?