SOCIALCARBON Standard Standard for certification of carbon offset projects March, 2011

ECOLOGICA INSTITUTE Ecologica InstituteEcologica Institute (EI) is a non-profit organization focused on climate change active in the Amazon rainforest since Visit our website: Climate change: 460,000 tons of carbon reduced. Scientific Research: 46 studies on climate change and conservation. Forest: 2,323 native ha preserved and 300 ha of forest restored. Community development: 6,480 people trained and 110 families included in the market of sustainable products.

SOCIALCARBON The SOCIALCARBON Standard is an additional certification to guarantee that carbon offset projects are sustainable and result in social and environmental benefits. Visit our website: projects certified in Brazil, China, Turkey and Indonesia. tCO2e: 5 Million issued + 14 Million (next 10 years) Future projects: forest and composting Latin America and Africa

Developed during the implementation of a community-based forest Project in Brazil to include local stakeholder’s perspectives and monitor the results (i.e. activities to generate income: Agro- forestry systems) Its framework is based on the Sustainable Livelihood Approach (SLA), a world wild methodology used in planning and assessing the contribution that development activities have made to sustaining livelihoods.Sustainable Livelihood Approach e.g. International NGOs: CARE Save the Children OXFAM ITDG (Intermediate Technology Development Group) e.g. Bilateral: DANIDA SIDA DFID e.g. Multilateral : UNDP FAO WFP IFAD World Bank Source IFAD: Background of Sustainable Livelihoods SUSTAINABLE LIVELIHOOD APPROACH

1998 Forest project in Brazil 2006 Switching fuel projects (biomass in small industries) 2007 HPP, both large and small scale SOCIALCARBON Standard published - First project certifyed Over 43 projects certified in Brazil, China India, Turkey 2000 Development of the Social Carbon concept and methodology 2003 Publication of the book: Social Carbon: adding value to sustainable development … All Ecologica Institute’s projects use Social Carbon methodology (capacity building, sustainable products, etc.) 2010 Publication of the second book: Biodiversity and Social Carbon SOCIALCARBON Standard: certification for carbon offset projects Social Carbon concept: methodology for community development projects Evolution of SOCIALCARBON

SOCIALCARBON Projects Brazil Panamá Brazil China Indonesia Turkey Brazil Colômbia BrazilUruguay Argentina

Buyers Certifying Entities Partners

SOCIALCARBON criteria Project developers establish a baseline using the standard's assessment tools. Developers must then demonstrate improvements in relation to this baseline through SOCIALCARBON monitoring reports that are independently verified by certifying entities. Continual improvement

AspectsSOCIALCARBON® Standard Relation to Other Standards Monitors co-benefits of offset projects only, so it must be used in conjunction with a carbon-accounting standard (e.g. Voluntary Carbon Standard) Is an “add-on” standard – a plus for carbon offset projects to improve the project’s sustainability. Project Type Applicability Accepts all projects activities. Methodology has been applied for renewable energy, forestry, composting and fuel-switching Any type of project that could demonstrate an improvement in livelihoods is eligible Guarantee of Co- Benefits Project must demonstrate continual improvement or loses SOCIALCARBON® certification If indicators decrease in score over two consecutive monitoring periods, the project loses its status Improvement is assured through periodic monitoring of the project and independent verification by a DOE Success depends on: The project developers and stakeholders commitment in improving the sustainability of the project

Measuring Sustainability with SOCIALCARBON® Soci al Huma n Financi al Natural Technolo gy Carbo n Six sustainability aspects measured over the 10-year lifetime of the project Point Zero is the baseline scenario - how sustainable is the project at the begining? Even at Point Zero, GHG reductions are being realized – our fellow co- developer is taking the initiative to mitigate climate change Clients purchase the carbon credits, neutralize their unavoidable emissions, and invest in the sustainability of the project That investment leads to Point 01 whereby clients can transparently see their investment making a difference 03Point 02, – Continual improvement is the goal, and clients make that happen

SOCIALCARBON: Different Approach to Sustainability 11 Businesses NGOs Governments Project Developer Local Stakeholders Sustainability Goal- Setting Top- Down Bottom- Up Other Standards -> long term sustainability

Concepts & Philosophy 12 SOCIALCARBON Standard® Meant to be flexible, focused on problem-solving and considerate of the priorities of local people to find paths and perspectives on how to improve the sustainability of the project Clockwise, from top-left: João tosses a sustainanbly-fired brick onto a truck to be sold in the local construction market, generating jobs; the opening where native firewood was fed into the kiln is now sealed and renewable biomass is poured in overhead; sunset in the Amazon SOCIALCARBON® lets project developers build a bridge by which all organizations can enter into and benefit from the carbon market to improve the livelihoods of project stakeholders.

For local people and project proponents and buyers. Comprehensive: Tool to improve project’s sustainability, not a check list of criteria. Any project that can demonstrate the potential to better livelihoods is eligible. Inclusive Based on field experience developing forest projects Requires less documents and data than traditional methods Practical Progress reports are publicly available: co-benefits are Monitored, Reported, Verified (MRV) Transparent Based on Sustainable Livelihood Approach (SLA) Guaranties that results will remain in the long term. Bottom up approach

SOCIALCARBON: Low Carbon – High Inclusion: Latin America

Thank you! Cecília Michellis