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GTZ, Novotel Hotel Suva May 2009
Dr Sean Weaver, Principal REDD ? Workshop Workshop GTZ, Novotel Hotel Suva May 2009
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“A conservation or sustainable land-use initiative that effectively mitigates a deforestation / degradation threat in a given area” (Poverty Environment Partnership - UNDP) What is REDD ? Workshop “Avoided deforestation” “Compensated reduction of deforestation”(IPAM) “Reducing emissions from deforestation and forest degradation”(World Bank) “Reducing emissions from deforestation in developing countries”(UNFCCC)
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“A conservation or sustainable land-use initiative that effectively mitigates a deforestation / degradation threat in a given area” (Poverty Environment Partnership - UNDP) What is REDD ? Workshop Preventing forest-based carbon dioxide emissions through forest protection Reducing the rate of forest-based carbon dioxide emissions
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Why REDD ? Workshop Preventing forest-based carbon dioxide emissions through forest protection Reducing the rate of forest-based carbon dioxide emissions
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= 20% global GHG emissions
Kyoto Protocol Too Hard Why REDD ? Workshop COP Montreal Preventing forest-based carbon dioxide emissions through forest protection Reducing the rate of forest-based carbon dioxide emissions = 20% global GHG emissions Agenda Item 6: Reducing Emissions from Deforestation in Developing Countries – Approaches to stimulate action Post-2012 Agreement Copenhagen 2009
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= 20% global GHG emissions
1000 500 = 20% global GHG emissions
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CO2 concentration at 2100 (lower end projections)
500 CO2 concentration at 2100 (lower end projections) 400 Current CO2 concentration Climate and atmospheric history of past 400,000 years from the Vostok ice core, Antarctica -10 -5 5 10 300 250 200 150 100 50 350 400 450 Temp CO2 ppm Age 100,000 years b.p.
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Current CO2 concentration
-10 -5 5 10 300 250 200 150 100 50 350 400 450 Temp CO2 ppm Age 100,000 years b.p. Climate and atmospheric history of past 400,000 years from the Vostok ice core, Antarctica Current CO2 concentration 500 CO2 concentration at 2100 (lower end projections)
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Current CO2 concentration 500
-10 -5 5 10 300 250 200 150 100 50 350 400 450 Temp CO2 ppm Age 100,000 years b.p. Current CO2 concentration 500 CO2 concentration at 2100 (lower end projections)
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Global Warming CO2 concentration at 2100 (upper end projections)
600 700 CO2 concentration at 2100 (upper end projections) Global Warming -10 -5 5 10 300 250 200 150 100 50 350 400 450 Temp CO2 ppm Age 100,000 years b.p. Current CO2 concentration 500 CO2 concentration at 2100 (lower end projections)
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Global Warming Impacts Sea level rise Cyclone intensity Flooding
Drought Ocean acidification Flow on effects Global Warming Impacts International economy Cross cutting issues World population growth World oil prices
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Global Warming Response 1. Mitigation 2. Adaptation 3. Negotiation
Cut greenhouse gas emissions Global Warming 2. Adaptation Learn to live with a different climate Response 3. Negotiation Encourage polluting nations to act
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1. Mitigation 2. Adaptation 3. Negotiation
Cut greenhouse gas emissions 2. Adaptation Learn to live with a different climate 3. Negotiation Encourage polluting nations to act Negotiating power increases when a country is a proactive participant in climate change adaptation and mitigation
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1. Mitigation 2. Adaptation 3. Negotiation
Cut greenhouse gas emissions 2. Adaptation Learn to live with a different climate Encourage polluting nations to act 3. Negotiation Important role of forests in building resilient landscapes Finance forest sector adaptation through programs that combine adaptation with mitigation
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1. Mitigation 2. Adaptation 3. Negotiation Energy sector Forest sector
Cut greenhouse gas emissions 1. Mitigation Learn to live with a different climate 2. Adaptation Encourage polluting nations to act 3. Negotiation Energy sector Forest sector Carbon finance opportunities Integration is important where possible
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1. Mitigation Cut greenhouse gas emissions
Historical carbon emissions with two potential pathways for the future Towards Tripling CO2 Concentrations 2004 2054 Billions of tons carbon emitted per year 14 7 1954 Currently predicted path Historical Emissions Flat path Avoid Doubling CO2 Concentrations
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1. Mitigation Cut greenhouse gas emissions
Historical carbon emissions with two potential pathways for the future Currently predicted path Historical Emissions Towards Tripling CO2 Concentrations Flat path 2004 2054 Billions of tons carbon emitted per year 14 7 1954 Avoid Doubling CO2 Concentrations
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Towards Tripling CO2 Concentrations
Cut greenhouse gas emissions 1. Mitigation Towards Tripling CO2 Concentrations
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Cut greenhouse gas emissions
1. Mitigation
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Cut greenhouse gas emissions
1. Mitigation
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Cut greenhouse gas emissions
1. Mitigation
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Cut greenhouse gas emissions
1. Mitigation
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Cut greenhouse gas emissions
1. Mitigation
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Cut greenhouse gas emissions
1. Mitigation
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1. Mitigation Cut greenhouse gas emissions 14
Billions of tons carbon emitted per year 14 7 2004 2054
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path Emissions to be avoided Stabilisation Triangle 7 Billion Tons carbon per year over 50 years Flat path 200 Billion Tons of avoided emissions Avoid Doubling CO2 Concentrations
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path 7 ‘Wedges’ are needed to build the Stabilisation Triangle Emissions to be avoided Stabilisation Triangle 1 ‘Wedge’ Avoids 1 Billion tons of carbon emissions per year by 2054 Flat path 200 Billion Tons of avoided emissions Avoid Doubling CO2 Concentrations
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path 7 ‘Wedges’ are needed to build the Stabilisation Triangle Emissions to be avoided Stabilisation Triangle 1 ‘Wedge’ Avoids 1 Billion tons of carbon emissions per year by 2054 Flat path 200 Billion Tons of avoided emissions Avoid Doubling CO2 Concentrations
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path Stabilisation Triangle Energy efficiency Flat path Avoid Doubling CO2 Concentrations
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path Stabilisation Triangle Fossil Carbon Management Flat path Avoid Doubling CO2 Concentrations
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path Biofuels, Hydrogen Stabilisation Triangle Flat path Avoid Doubling CO2 Concentrations
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path Renewable electricity generation Stabilisation Triangle Flat path Avoid Doubling CO2 Concentrations
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path Nuclear and/ or more share of renewables Stabilisation Triangle Flat path Avoid Doubling CO2 Concentrations
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path 50 fold expansion of wind energy Stabilisation Triangle Flat path Avoid Doubling CO2 Concentrations
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Stabilisation Triangle
Cut greenhouse gas emissions 1. Mitigation The Stabilisation Wedges concept turns an overwhelming Herculean Challenge into seven monumental tasks Towards Tripling CO2 Concentrations Billions of tons carbon emitted per year 14 7 2004 2054 Currently predicted path Forest Management Stabilisation Triangle Flat path Avoid Doubling CO2 Concentrations
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REDD 1. Mitigation Afforestation / Reforestation
Cut greenhouse gas emissions 1. Mitigation Afforestation / Reforestation Plantation forestry Agroforestry Forest Management REDD
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Forest sector & C H O 6 12 6O 2 6CO 6H O energy + Carbon Cycle
1. Mitigation C H O 6 12 6O 2 6CO 6H O energy + Photosynthesis Respiration Carbon Cycle
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Loss of Ecosystem Services
Loss of carbon Loss of Ecosystem Services Influences planetary boundary layer Alter sensible and latent heat fluxes Maintains lower albedo Elevates soil moisture Provides heat storage Reduced sunlight penetration to soil Slows and elevates winds Reduced rain impact on soil Reduces surface erosion Moderates evapotranspiration Maintains local precipitation rates Inhibits anaerobic soil conditions Reservoir Deforestation Emissions
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REDD Voluntary Carbon Market Is anything available now?
Unlikely to be available till 2012 Market mechanism REDD Fund mechanism Incentive mechanisms to help curb deforestation and degradation Post-2012 Agreement Copenhagen 2009
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Emissions Trading Voluntary Carbon Market Compliance Carbon Market
Incentive mechanisms to help curb deforestation and degradation Post-2012 Agreement Copenhagen 2009
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Unconstrained emissions
Emissions Trading Collective Cap Collective target is an allowed emission volume 1 Unit (AAU) tCO2e This volume is divided into units (tCO2e) Units are allocated to POs pursuant to their individual target (Assigned Amount Units – AAUs) Cap
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NZ million AAUs Units are allocated to POs pursuant to their individual target (Assigned Amount Units – AAUs)
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NZ million AAUs Units are allocated to POs pursuant to their individual target (Assigned Amount Units – AAUs)
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To achieve compliance a country must demonstrate that its actual emissions over the management period match their number of allowances NZ million tCO2e Actual Emissions NZ million AAUs Allowances
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What if a country under-complies with their binding target by overshooting their allowance?
NZ million tCO2e Actual Emissions NZ million AAUs Allowances
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What if a country under-complies with their binding target by overshooting their allowance?
Country B over-complies with their target generating surplus Allowances Surplus Allowances Country B million AAUs Allowances Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country A Country B
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Got any spare Allowances?
Wanna sell them? Got any spare Allowances? Yep Yep Surplus Allowances Country B million AAUs Allowances Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million AAUs Allowances Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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$ Country A Country B Surplus Allowances 2008-2012
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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In Compliance In Compliance Country A Country B
Country B million tCO2e Actual Emissions NZ million AAUs Allowances NZ million tCO2e Actual Emissions Country B million AAUs Allowances Country A Country B
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Clean Development Mechanism (CDM)
NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Clean Development Mechanism (CDM)
$ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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$ Clean Development Mechanism (CDM) Developed Country
Only Points of Obligation can play compliance trading Clean Development Mechanism (CDM) You can play in the voluntary market I’m not a Point of Obligation but I want to play carbon trading $ NZ million AAUs Allowances NZ million tCO2e Actual Emissions No emissions cap Developed Country Developing Country
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Demand Voluntary Carbon Market
Entities seeking Carbon Neutrality or Corporate Social Responsibility (CSR) This is a different league with different rules – but anyone can play
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Voluntary Carbon Market
Demand Entities seeking Carbon Neutrality or Corporate Social Responsibility (CSR) This may be for brand differentiation – e.g. “Our wine is carbon neutral” Grove Mill winery in Marlborough produced the world’s first carbon neutral wine
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Voluntary Carbon Market
Demand Entities seeking Carbon Neutrality or Corporate Social Responsibility (CSR) How does work? Three Steps: 1. Measure carbon footprint 2. Reduce carbon footprint 3. Buy carbon offsets (carbon units) for residual emissions you were unable to eliminate
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{ { Demand Voluntary Carbon Market
Entities seeking Carbon Neutrality or Corporate Social Responsibility (CSR) How does work? Three Steps: 1. Measure carbon footprint { Energy efficiency Clean technology Behaviour change 2. Reduce carbon footprint { 3. Buy carbon offsets (carbon units) for residual emissions you were unable to eliminate
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{ { Demand Voluntary Carbon Market Carbon Neutral
Entities seeking Carbon Neutrality or Corporate Social Responsibility (CSR) How does work? Three Steps: 1. Measure carbon footprint { Energy efficiency Clean technology Behaviour change 2. Reduce carbon footprint { 3. Buy carbon offsets (carbon units) for residual emissions you were unable to eliminate Carbon Neutral
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{ Supply Voluntary Carbon Market
Voluntary carbon projects seeking financial support for voluntary climate friendly projects e.g. REDD projects { Where do these carbon units come from? 3. Buy carbon offsets (carbon units) for residual emissions you were unable to eliminate
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{ Supply Voluntary Carbon Market
Voluntary carbon projects seeking financial support for voluntary climate friendly projects e.g. REDD projects Tropical rainforest carbon is the most popular in the voluntary carbon market When you protect a rainforest carbon reservoir you also protect biological diversity and other ecosystem services { Where do these carbon units come from? 3. Buy carbon offsets (carbon units) for residual emissions you were unable to eliminate
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Voluntary Carbon Market
Why Standards? Voluntary Carbon Market Transaction Volumes by Standard Used 2007 CCB – Climate Community and Biodiversity Standard There are many different voluntary carbon market standards Well suited to REDD Projects that simultaneously address climate change, support local communities and conserve biodiversity.
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Voluntary Carbon Market
Why Standards? Voluntary Carbon Market We need standards to safeguard against carbon cowboys Wanna buy some carbon credits real cheap?
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Voluntary Carbon Market
Why Standards? Voluntary Carbon Market A robust quality assurance process will prevent me from selling junk carbon Take a look at my voluntary carbon forestry project
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures UNFCCC Policy Negotiations
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures UNFCCC Policy Negotiations Available now Different options: Post-2012 instrument Possible Outcomes: Quality Assured Non-quality assured National scale Project scale Payment for Ecosystem Services Direct Barter Market based Fund based National scale Project scale Not necessarily suitable to Fiji Wait and see after Copenhagen
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance UNFCCC Policy Negotiations Focus on “REDD Readiness” Country infrastructure development National forest area change assessment Forest carbon inventory & monitoring capability DNA systems & procedures Carbon property rights legislation National policy & strategy Post-2012 instrument Possible Outcomes: Market based Fund based National scale Project scale Not necessarily suitable to Fiji Wait and see after Copenhagen { UNFCCC & World Bank Funding
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures UNFCCC Policy Negotiations Available now Different options: Post-2012 instrument Possible Outcomes: Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter Market based Fund based National scale Project scale Not necessarily suitable to Fiji Wait and see after Copenhagen
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Available now Different options: Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Available now Different options: Variety of possible standards Significant fixed transaction costs Small projects unviable Command higher carbon prices Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Available now Different options: Lower project development costs Credibility risk Climate change mitigation risk Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Available now Different options: Project boundary & description Baseline projections Project design including financing Demonstrate “additionality” Legal status & property rights Demonstrate climate benefits Address leakage risk Monitoring Co-benefits Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Available now Different options: Project boundary & description Baseline projections Project design including financing Demonstrate “additionality” Legal status & property rights Demonstrate climate benefits Address leakage risk Monitoring Co-benefits Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter Demonstrate that the project could not have happened without the carbon revenues. Show that the project would not have happened anyway.
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Available now Different options: Project boundary & description Baseline projections Project design including financing Demonstrate “additionality” Legal status & property rights Demonstrate climate benefits Address leakage risk Monitoring Co-benefits Demonstrate that emissions prevented within the project boundary will not simply be displaced to somewhere outside the project boundary (i.e. show that the logging will not simply move to another area of the country). Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Available now Different options: Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter Voluntary sectoral no-lose targets Need national carbon accounting No domestic leakage risk Easier to aggregate many projects
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Voluntary Carbon Market Why Standards?
Voluntary Market Compliance Market Quality Assurance Available now Different options: Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter Voluntary Market Infrastructures Voluntary sectoral no-lose targets Need national carbon accounting No domestic leakage risk Easier to aggregate many projects Sectoral No-Lose Targets Time Carbon Stocks Management period Actual Performance Tradable Credits Crediting Baseline BAU + measures but not carbon finance BAU
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Available now Different options: Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter Voluntary Market Infrastructures Voluntary sectoral no-lose targets Need national carbon accounting No domestic leakage risk Easier to aggregate many projects
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Buyers? Those in the carbon market who are more interested in helping the climate system than owning a carbon commodity Available now Different options: Biodiversity Watershed Cultural values Non-wood forest products Carbon reservoir Climate-related ecosystem services Projects that trade climate-friendly project outcomes: Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter Spectrum of buyers
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Available now Different options: Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter Non-market bilateral transaction between two willing parties Government to government Government to large corporate Seller: rainforest protection Buyer: range of possible benefits
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Voluntary Carbon Market Why Standards? Direct Barter Voluntary Market
Compliance Market Quality Assurance Seller Buyer Trade Agreement Large Scale Forest Protection Voluntary Market Infrastructures Debt Cancellation Cash Available now Different options: Technology Transfer Education… Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter Non-market bilateral transaction between two willing parties Government to government Government to large corporate Seller: rainforest protection Buyer: range of possible benefits
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Available now Different options: Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter
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Voluntary Carbon Market
Why Standards? Voluntary Market Compliance Market Quality Assurance Voluntary Market Infrastructures Staging Project Development Available now Different options: Phase 1 - Prefeasibility Identify options in principle Quality Assured Non-quality assured Project scale National scale Payment for Ecosystem Services Direct Barter Phase 2 - Feasibility Identify options in practice Evaluate costs and benefits Phase 3 - Implementation Project implementation
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Voluntary Carbon Market Why Standards?
Voluntary Market Compliance Market Quality Assurance National Forest Carbon Monitoring Useful to align Fiji definitions with international definitions at UNFCCC & World Bank 1. Align local capability with international forest carbon monitoring methodologies of the IPCC 2. IPCC Good Practice Guidance for Land use, Land Use Change and Forestry (LULUCF) – 2003 IPCC Guidance for National GHG Inventories GOFC-GOLD Sourcebook on Methods and Procedures for Monitoring, Measuring, and Reporting UNFCCC Costs of Implementing REDD Methodologies
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Case Study: Vanuatu Vanuatu Carbon Credits Project Forests Energy
Phase 1 International Policy Design Incentive Mechanisms Socio-economic GPG National Forest Monitoring Scope: Energy Programme Phase 2 Roadmap Workshop Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Fundraising REDD High, Medium, Low Threat
A/R Agroforestry Driver Shifting A/R Plantation Driver Shifting Forest / Energy Bio-Electricity Driver Shifting Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Methodologically integral to REDD
Total forest value Carbon & Climate Finance Royalties Profits Costs of extraction Economic Activity Lost to the Economy Methodologically integral to REDD REDD High, Medium, Low Threat A/R Agroforestry Driver Shifting A/R Plantation Driver Shifting Forest / Energy Bio-Electricity Driver Shifting Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Fundraising REDD High, Medium, Low Threat
A/R Agroforestry Driver Shifting A/R Plantation Driver Shifting Forest / Energy Bio-Electricity Driver Shifting Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Synergies Fundraising Carbon New carbon stocks Original carbon stocks
Harvest kava First Sandalwood Second Sandalwood Year 5 Year 10 Year 20 Sandalwood Nangai First Nangai Nangai nuts & timber Carbon Kava Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Labour Market Linkages
NZ Seasonal Worker Scheme Vanuatu Agro-forestry Harvest kava First Sandalwood Second Sandalwood Year 5 Year 10 Year 20 Sandalwood Nangai First Nangai Nangai nuts & timber Carbon Kava Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Synergies Fundraising Sandalwood Soap Industry Glycerine By-Product
Bio-diesel from Coconut Oil Harvest kava First Sandalwood Second Sandalwood Year 5 Year 10 Year 20 Sandalwood Nangai First Nangai Nangai nuts & timber Carbon Kava Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Synergies Fundraising Bio-diesel from Coconut Oil Phase 2 Bio Diesel
Carbon Credits Fossil Diesel Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Synergies Fundraising Bio-diesel from Coconut Oil Phase 2
Carbon Credits Fossil Diesel Bio Diesel Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Synergies Fundraising Bio-diesel from Coconut Oil Phase 2
Carbon Credits Fossil Diesel Bio Diesel Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Synergies Fundraising Bio-diesel from Coconut Oil Phase 2
Carbon Credits Fossil Diesel Bio Diesel Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Synergies Fundraising Bio-diesel from Coconut Oil Phase 2
Carbon Credits Fossil Diesel Bio Diesel Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Grid Connected Electricity
Land Transport Grid Connected Electricity Bio-diesel from Coconut Oil Carbon Credits Cost Equivalent Fossil Diesel Bio Diesel Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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Low Carbon Economy Land Transport Grid Connected Electricity
Bio-diesel from Coconut Oil Towards Energy Independence Low Carbon Economy Bio Diesel Synergies Phase 2 DNA Governance Structure National Forest Monitoring Forest Sector Activities Energy Sector Activities Fundraising
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