2. FORESTRY AGENCY „MOLDSILVA” PROTOTYPE CARBON FUND THE WORLD BANK THE WORLD BANK MOLDOVA SOIL CONSERVATION PROJECT Liliana Spitoc, Forest Research and Management Institute, Republic of Moldova BIO CARBON FUND

3. MOLDOVA SOIL CONSERVATION PROJECT 1.The main project activity is carbon sequestration through afforestation of 20,3 thousand ha of degraded, eroded land unfit for agricultural use. 2.The project is supporting the policy of the Republic of Moldova concerning the afforestation and extension of lands with forest vegetation. This policy is an important strategically for sustainable development and management of forestry sector in Moldova.

4. Project implementation will: Extend areas covered with forest vegetation (by 15 % from 2003-2020); Extend areas covered with forest vegetation (by 15 % from 2003-2020); Decrease negative impact of economic development through carbon sequestration and reduction of GHG (total volume of sequestered CO 2 during first 20 years = 4.3 million tons); Decrease negative impact of economic development through carbon sequestration and reduction of GHG (total volume of sequestered CO 2 during first 20 years = 4.3 million tons); Decrease degradation processes and improve environmental factors with direct impact on population health and ecological security; Decrease degradation processes and improve environmental factors with direct impact on population health and ecological security; Promote sustainable development of forests from the Republic of Moldova; Promote sustainable development of forests from the Republic of Moldova; Enhance biodiversity; Enhance biodiversity; Provide local population with wood and non-wood forest products (hunting, medicinal plants, beekeeping etc.); Provide local population with wood and non-wood forest products (hunting, medicinal plants, beekeeping etc.); Create additional employment (temporary and permanent). Create additional employment (temporary and permanent). MOLDOVA SOIL CONSERVATION PROJECT

5. National forest definition: A forest presents an element of the geographical landscape, a functional unit of the biosphere, composed of the forest vegetation community (with dominance of trees and bushes), living litter, animals and microorganisms, which are interdependent in their biological development and influence their forest habitat; A forest presents an element of the geographical landscape, a functional unit of the biosphere, composed of the forest vegetation community (with dominance of trees and bushes), living litter, animals and microorganisms, which are interdependent in their biological development and influence their forest habitat; Minimum area: 0.25 ha; Minimum area: 0.25 ha; Minimum tree cover: 30%; Minimum tree cover: 30%; Minimum tree height: 5 m; Minimum tree height: 5 m;

6. Confirmation of the correspondence of plots included in the project to the requirements of Marrakesh Accords Confirmation of land use categories of plots included in the project as of 31.12.1989 and of data of plantation by cadastral offices; Confirmation of land use categories of plots included in the project as of 31.12.1989 and of data of plantation by cadastral offices; Copies from cadastral maps/schemes of plots; Copies from cadastral maps/schemes of plots; Digital photo at the initial phase of implementation; Digital photo at the initial phase of implementation; Documentation of forest management planning; Documentation of forest management planning; Validation and initial verification by third parties. Validation and initial verification by third parties. MOLDOVA SOIL CONSERVATION PROJECT

7. Distribution of planting sites and their areas in the project S.N o. Area of planting site (ha) Number of sites Area (ha)Percent area (%) 1 0.25-4.9911442728,4113,4 2 5.00-9.996024171,1720,6 310.00-14.993103658,9718,0 415.00-19.991512581,9912,7 520.00-29.991202818,4713,9 630.00-49.99672397,611,8 7 ≥ 50.00 271933,39,5 Total general242120289.91100.0 Source: Project Implementation Unit, Moldova Soil Conservation Project, Moldsilva, Chisinau.

8. MOLDOVA SOIL CONSERVATION PROJECT Species and varieties selected for the project activity Criteria used in the selection of species for planting under the project : Adaptability of species to soils and climate. Fast growing locally adapted species (e.g.Robinia pseudoacacia, Gleditschia triachantos, Poplar sp) to variety of soils, slope and elevation. Slow growing native species (Quercus, Fraxinus) are given priority on less degraded sites. Species preferences of the local communities to meet their demands for fuelwood, timber, and non-wood forest products. Low fodder collection costs to the local communities after the growth and establishment of the plantations. Major species groups: Quercus- group: Quercus rubra, Q. robur, Q. petraea, Fraxinus, Carpinus, Tilia, Acer, Cornus, Prunus, Pyrus, Corylus, Viburnum, Sambucus Robinia-group: Robinia pseudoacacia, Gleditsia triacanthos, Sophora, Ulmus, Acer, Cornus, Corylus Populus-group: Populus alba, P. nigra, Salix, Ulmus, Acer, Sambucus, Corylus, Sorbus, Viburnum Pinus-group: Pinus nigra, P. sylvestris, Acer, Cotinus, Eleaegnus, Tamarix, Rosa, Crataegus, Prunus, Rubus

9. MOLDOVA SOIL CONSERVATION PROJECT Approved (at the meeting of CDM Executive Board of UNFCCC from May 10-12, 2006. ) afforestation and reforestation baseline and monitoring methodology AR-AM 0002: Restoration of Degraded Lands through Afforestation / Reforestation is applied to the proposed AR CDM project. Methodology

10. Ex ante actual net GHG removals by sinks under the project YearEstimated annual change in carbon stocks of the project Annual Change in the carbon stocks of the project with 5% risk adjustment 2002 0 0 2003 9,913 9,418 2004 30,930 29,383 2005 62,675 59,541 2010 208,345197,928 2015 298,552283,625 2016 298,755283,818 2017 230,393218,873 2018 225,370214,102 2019 222,336211,219 2020 230,383218,864 2021 278,187264,278 2022 236,757224,919 Estimated project carbon stock change (t CO2 e) 3,970,8393,772,297 Total number of crediting years 20 Annual average project carbon change over the crediting period (t CO2 e) 198,542188,615

11. The monitoring methodology includes the following elements: Monitoring of the overall performance of the proposed A/R CDM project activity, including the integrity of the project boundary and the success of forest establishment and forest management activities; Monitoring of the actual net GHG removals by sinks, increases in GHG emissions within the project boundary due to nitrogen fertilization, use of machinery, and removal of non-tree vegetation and burning of biomass in site preparation activities; Monitoring of leakage from the use of vehicles in the transportation of staff, seedlings, timber and non forest products, as a result of the implementation of the A/R CDM project activity; A Quality Assurance/Quality Control plan that covers field measurements, data collection, verification, data entry and archival, as an integral part of the monitoring plan to improve the monitoring efficiency and to ensure the integrity of data collected in the A/R CDM project activity.

12. MOLDOVA SOIL CONSERVATION PROJECT The following basic indicators will be the subject of the monitoring: Carbon sequestration (soil and biomass); Soil conservation; Biodiversity conservation; Socio-economic situation within the project boundary. At the same time will be monitored the following permanent technical indicators: planting volume and quality, composition of forestry crops, management activities (forestry works/cuttings etc.).

13. Chronology of events under of Moldova Soil Conservation Project MOLDOVA SOIL CONSERVATION PROJECT Nr. Activities Period 1.Development of Project Concept Note April 2002 2.Start of planting works under the project November 2002 3.Baseline Study (by GFA „Terra Systems”)March-April 2003 4.Initial validation (by SGS)September 2003 5.Development of Monitoring Plan (by Winrock Internat.)November 2003 6.Beginning of PDD development process June 2004 7.Initial verification (by TUV Sud-Deutschland)July 2004 8.Approval of methodology May 2006 9.Finalization of plantings under the project December 2006 10.Pre-registration verification (by SGS)March 2007 11.Registration of the project at UNFCCC Secretariat I quarter 2008

14. Revenues from carbon sale Prototype Carbon Fund provides the procurement of emission reductions of CO2 in the atmosphere in the volume of 1,3 mln. tons at the price of US$3,5 /t. Economic effect generated by the sale of ERs of CO2 is estimated at US$4,55 mln. For the period of 14 years. BioCarbon Fund Agreement provides the procurement of the emission reductions of CO2 in the volume of 600,000 tons at the price of US$4,13/ton. Economic effect generated by the sale of this volume is estimated as US$2.478.000.

15. MOLDOVA SOIL CONSERVATION PROJECT  To facilitate the process, it was necessary to involve of all forestry actors in implementation of large-scale projects (“Moldsilva”, ICAS, forestry enterprises, mayoralties).  The process enhanced capacity in Moldova through the necessity to learn new methods and technologies including: Use of simulations and forecasting for forest plantations (unusual activities in forestry); Use of models for estimation of GHG removals by forest vegetation (CO2 fix v.2.0 module); Use of GPS and GIS; Creation and operation of complex data base for forestry resources.  Additional financial resources can result from the implementation of traditional activities.  It was necessary to develop communication plans between stakeholders for the implementation of national forestry strategies and programs.  The process was simplified by hiring experts to solve issues such as socio-economic problems of rural communities, promotion of agro- forestry and silvo-pastoral practices. LESSONS