ProArbol Program and Climate Change Mexico

CONTENT Presentation Categories and Impact areas Stages of ProArbol Budget 2007 Main Goals 2007 ProArbol and Climate Change Conclusions

The social focus in politics by the Mexican Government, can be framed in the “Vivir Mejor” program. “Vivir Mejor” gathers all government actions to channel them in a same objective, the sustainable human development, avoiding its dispersion and focusing the impact in obtaining the greatest benefit from the public resources invested. “Vivir Mejor” incorporates sustainability criteria to social policies. Recognizes that there is not only a gap from rich to poor that needs to be covered, but also the gap between nature and men. PRESENTATION

Mexico’s forestry program is called ProArbol, started by President Felipe Calderon, in February ProArbol is congruent with the social policies of the program “Vivir Mejor”. ProArbol’s objectives are: Generate development and contribute to the economy from valuation, conservation, restoration and sustainable production of forestry resources. Assistance in diminishing the poverty indexes that exist in most forestry areas. Give support to owners and possessors of land forests, for reforestation and payments for environmental services; these last ones are destined to cover the opportunity cost of dedicating their lands to other different activities than silviculture.

Sustainable forest management Commercial forestry plantations Financial support to competitiveness Sustainable forest management Commercial forestry plantations Financial support to competitiveness Reforestation and Restoration Forestry Protection Environmental Services Reforestation and Restoration Forestry Protection Environmental Services Categorías y áreas de impacto del ProÁrbol Climate Change Environmental Improvement Biodiversity conservation Employment and Income Company and development of productive chains Reducing the forestry imports Climate Change Environmental Improvement Biodiversity conservation Employment and Income Company and development of productive chains Reducing the forestry imports Impact Areas Conservation and RestorationCompetitiveness and Production

Stages of ProArbol Launch and broadcasting of the callings. Reception of applications from forest owners. Resolution of applications in national and state’s technical commitees. Advance payment. Control and following of the activities from beneficiaries. Final payment.

2007 Budget of ProArbol El presupuesto (PEF) 2008 se incrementó en 1,128.2 millones de pesos (27%) respecto a CONCEPT2007 Subsidies ProArbol Operation Rules348 Other Subsidies80 Plant Production65 Protection against forest fires44 Environmental Compensation28 Operation, Support and Administration Expenses 38 Total603 Millions of US Dollars

Principales avances en 2007 del ProÁrbol ProArbol Conservation and Restoration Progress Reforestation and Restoration (degraded soil) 645,781 ha.** Forestry Protection −Forestry fires (natural forest and tropical forest) −Phytosanitary diagnostic −Phytosanitary treatment In relation to % less number of fires 41.9% less affected areas 663,743 ha. 45,695 ha. Environmental services (natural and tropical forests) 610,000 ha. *It includes Commercial Forestry Plantations** 12% in progress of establishment ProArbol, Production and Competitiveness Progress Sustainable forestry management (incorporation) 1.9 million ha. Sustainable Forestry Development (Capacitating, equipment, ecotourism, good management certification and technical audit) 6.3 million ha.

Reforestation and Restoration (Degraded soil) EcosystemPlantNumber of plants Forest and Tropical ForestTrees251 million 779 thousand 394 DesertBushes and weeds218 million 870 thousand 707 Total470 million 650 thousand 101

ProArbol y Climate Change

Mexico is coherent with their international commitments of environmental protection and has a National Strategy for Climate Change it has establish opportunities for the vegetation sector and soil use mitigation. The main objective is to preserve the forestry carbon and reduce the greenhouse gasses emissions produced by activities related to the soil use, changes in soil use, silviculture, agriculture and livestock. There are some established actions in ProArbol: Conservation of carbon through the Sustainable forestry development, Retribution of environmental forestry services, Units for improvement and management, Forestry sanitation, Carbon sequestration through: Reforestation Reforestation with soil restoration Commercial plantations MDL projects Carbon substitution with forestry bio-fuels.

Mexico and CO 2 emmissions The 14% equals to 89,854 Gg (CO 2 eq) throw by: Change in soil use (10%) Lost of organic carbon in the soil (fires, erosion) and forest exploitation (4%)

Mitigations through ProArbol 1. Carbon conservation –Sustainable Forestry Development –Forestry Communitarian Diligence – Environmental Services (water, biodiversity and agro forestry) –Conservation and restoration of forestry ecosystems. 2. Carbon capture –Reforestation –Commercial plantations – Benefits for Environmental services There are direct actions to reduce CO 2 emissions in the forestry sector through ProArbol program.

 Strenght of institutional capacities for the formulation and implementation of forestry projects of conservation and carbon sequestration.  Promotion, development and implementation of forestry projects in the framework of Mechanisms for a Clean Development (MDL, in spanish), and direct retributions for environmental hydrological services and biodiversity conservation.  Creation of opportunities for carbon project developments in the voluntarty market, and from local markets of retributions from environmental services.

These are: 1.Creation of projects for carbon caption. 2.Acceptation of policies to grant aid to forestry projects in carbon caption, and the promotion of rules for the development of a national market of emissions. 3.Reward for hydrological services and biodiversity conservation. 4.Diligence of the approval letters on the national’s authorities side, designated in carbon projects. 5.Fortification in technical and organizational capacities for the creation and execution of carbon caption projects. Aid from ProArbol for Climate Change

ProArbol: MDL projects of Forestation/Reforestation Objectives Encourage the creation of forestry projects within the MDL framework. Promote the development of technical capacities for the creation of MDL forestry projects. Incentivize the construction of strategic alliances between suppliers, NGO’s, education and research institutions and potential buyers. Take advantage of the opportunity that MDL is offering to channelize international financing resources for the project development.

ProArbol: Reduction of emissions for deforestation and forestry degradation. (REDD) From the participation of CONAFOR in different forums and the recent UNFCCC decision, it has been working in: 1.The preparation of a mechanism for positive incentives to reduce the emmissions for deforestation and degradation (REDD) of the framework of CoP/13. 2.Activity incorporation from ProArbol for the generation of carbon credits, in a national strategy of REDD. 3.Explore a voluntary market of carbon credits based in forestry projects (we have more than 40 Idea Projects in Development IPD’s). 4.Alternative exploration to incorporate sustainable forestry management activities and forest conservation to the credit carbon market (Bali’s Action Plan). 5.Preparation, commercialization and following of the carbon projects (MDL F/R, REDD, voluntary market, etc.).

BIODIVERSITY PATRIMONIAL FUND In 2006, it was established the Environmental Services Project between CONAFOR, the World Bank and the Global Environment Facility (GEF), agreeing in the creation and operation of a Biodiversity Patrimonial Fund, on the financing support for the conservation of forestry ecosystems that protect the biodiversity, in world´s interest locations. The objective is to establish a fund that provides permanent financing to the conservation/restoration of the forestry ecosystems that have biodiversity of global importance. The layout is through payments for Environmental Services to the owners and possessors of the forestry lands located in eligible zones. This Fund will initiate in 2008 with a initial capital of 10 million US dollars.

Conclusions  ProÁrbol helps to preserve Carbon in forests, tropical forests and other kind of vegetation, it also helps to capture CO 2 from the atmosphere.  Mexico has assumed a voluntary commitment to reduce and mitigate its emissions, and also to undertake actions of mitigation/adaptation in view of the Climate Change.  The related activities with the forestry vegetation and the soil use changes, are elements that contribute in a 14% to the Greenhouse Effect Gases (GEG) in Mexico.  Mexico’s forests have a great potential for emission reduction and CO 2 conservation.  Forestation, reforestation and natural forests management to avoid deforestation are capable to compensate the emissions of GEG in Mexico.