Carbo Mark Project, London 13 October 2009 The Carbo Mark project Making forest carbon offsets financially viable at local level Silvia Stefanelli - Autonomous Region Friuli Venezia Giulia (Italy) VOLUNTARY CARBON MARKETS London October 2009

Carbo Mark Project, London 13 October 2009 European forests - Biomass carbon stock increase in the last 50 years Forest annual change rate in Italy + 1.1% Italian forests contribute to mitigating GHG emissions Italy included Forest Management in the KP (Art.3.4) Only 15% of FM carbon uptake is accounted in KP North-East of Italy – Harvesting much less than the increment Climatic forest service “not compensated” The forestry context

Carbo Mark Project, London 13 October 2009 Objectives of the CarboMark Project Set up a local voluntary carbon market for forestry credits Compensate existing carbon saving forest management Develop robust methodology New forest offsets activities 4 partners involved - 2 Regions 2 Universities EU LIFE + Budget € 1,088,028 Pilot market ( ) then take off

Carbo Mark Project, London 13 October 2009 Compensation for carbon saving management practices Paying for ecosystem services (PES) from SMF Adoption of green policies (wood products, urban forestry, biochar) SME demand for credits generated locally Positive local impacts Willingness to pay a premium price €€€ “CarboMark” branding Pre-compliance Why a local voluntary market? SELLERS SIDEBUYERS SIDE

Carbo Mark Project, London 13 October 2009 Demand for carbon offsets generated locally SUSTAINABLY MANAGED FORESTS WOOD PRODUCTS URBAN FORESTRY Which forest activities?

Carbo Mark Project, London 13 October 2009 Sustainably Managed Forestry methodology Additionality test BaselinePermanence Existing mandatory forest plans Annual growth known Certification (PEFC) Forest Reserve Pool Disturbances index linked + Binding agreements with forest owners Additional carbon uptake No Double Counting Certification (University) Credits release External registry Credits retirement Binding contract with credit sellers

Carbo Mark Project, London 13 October CI: 85% of current increment (15% forest management accounted under KP) -e: growth model uncertainty -d: local disturbances index (fires, windthrows, pest outbreaks) -Y: annual planned yield (m3 ha yr) = 85% CI (1- e -d) – Y M3/ha t/C/ha/yr t/CO2 eq/ha Carbon saving forest management Wood harvest lower than increment - Difference is set aside for carbon credits Forest carbon credits t/CO2 eq SMF - What generates the carbon credit? Net annual growth in carbon stock

Carbo Mark Project, London 13 October 2009 Challenges & risks Willingness to pay a high price for credits t/CO2 price on the global market Level of interest among SME’s Local political support Post-Kyoto agreements in the forest sector Scale up the model to other regions/countries

Carbo Mark Project, London 13 October 2009 Thank you for the attention Questions…? CarboMark Project Technical secretariat: Maurizio Dissegna (lead partner) - Silvia Stefanelli - Scientific secretariat: Tommaso Anfodillo - Alessandro Peressotti -