1. CDM A/R Investors' and Developers' Workshop, Beijing 2010 CDM Afforestation/Reforestation Projects: International workshop for developers and investors 26th - 28th April, Beijing Monitoring CO2 reductions and other parameters of an A/R project Workshop 26.4.2010 Beijing Mr. Rodrigo Ferreira PLANTARCARBON Rodrigo Ferreira Plantar Carbon Brazil Tel.: +55-31-3290-4528 Fax: +55-31-3290-4063 plantarcarbon@plantar.com.br www.plantar.com.br

2. CDM A/R Investors' and Developers' Workshop, Beijing 2010 The basis of the problem... IEA (2008) Mtoe

3. CDM A/R Investors' and Developers' Workshop, Beijing 2010 Climate Benefits that are potentially associated to planted forest in its many sectors A/R Decision 19/CP.9 GHG Net Removals process STOCK USE ENERGY Decision 17/CP.7 Emission Reductions Increasing Removals Emission Reductions

4. CDM A/R Investors' and Developers' Workshop, Beijing 2010 How is the “carbon credit” generated? GHG Emissions (E) Time (t) Baseline Project “Carbon Credits”

5. CDM A/R Investors' and Developers' Workshop, Beijing 2010 Monitoring Process Processing Input (Monitored Data) Output (Emission Reductions) http://www.ppe.ufrj.br/ppe/production/tesis/pfernandez.pdf Algorithm and/or formula defined by the baseline methodology “series of elements or interrelated components that collect (input), manipulate and store (process), disseminate (output).” (STAIR, 1998)

6. CDM A/R Investors' and Developers' Workshop, Beijing 2010 CDM Glossary Monitoring of an A/R CDM project activity (A/R - SSC A/R) Monitoring refers to the collection and archiving of all relevant data necessary for estimating or measuring the net anthropogenic GHG removals by sinks during the crediting period. http://cdm.unfccc.int/Reference/Guidclarif/glos_CDM.pdf

7. CDM A/R Investors' and Developers' Workshop, Beijing 2010 Monitoring plan Monitoring Plan shall include description of the proposed statistically sound sampling method/procedure to be used by DOEs for verification of the amount of reductions of anthropogenic emissions by sources or removals by sinks of greenhouse gases achieved by CPAs under the PoA. http://cdm.unfccc.int/Reference/Guidclarif/glos_CDM.pdf CDM Glossary

8. CDM A/R Investors' and Developers' Workshop, Beijing 2010 The Marrakesh Accords Decision 17 – COP 7 Project participants shall include, as part of the project design document, a monitoring plan that provides for: The collection and archiving of all relevant data necessary for estimating or measuring anthropogenic emissions by sources of greenhouse gases occurring within the project boundary during the crediting period; The collection and archiving of all relevant data necessary for determining the baseline of anthropogenic emissions by sources of greenhouse gases within the project boundary during the crediting period; The identification of all potential sources of, and the collection and archiving of data on, increased anthropogenic emissions by sources of greenhouse gases outside the project boundary that are significant and reasonably attributable to the project activity during the crediting period; Quality assurance and control procedures for the monitoring process; Procedures for the periodic calculation of the reductions of anthropogenic emissions by sources by the proposed CDM project activity, and for leakage effects. http://unfccc.int/resource/docs/cop7/13a02.pdf

9. CDM A/R Investors' and Developers' Workshop, Beijing 2010 Ex-ante TARAM – Tool for Afforestation and Reforestation Approved Methodologies – The BioCarbon Fund (World Bank) and CATIE Ex-post SMART – Simplified Monitoring Afforestation/Reforestation Tool – The BioCarbon Fund (World Bank) – UNDER DEVELOPMENT Monitoring Tools

10. CDM A/R Investors' and Developers' Workshop, Beijing 2010 What to monitor? AR-AM0001AR-AM0002AR-AM0003AR-AM0004 AR-AM0005 AR-AM0006AR-AM0007AR-AM0008AR-AM0009AR-AM0010 Carbon pools Above-ground biomass Below-ground biomass Dead wood Litter Soil oganic carbon Project emissions Consumption of fossil fuels (CO 2 ) Elimination of pre- existing vegetation (C) Biomass burning (CH 4, N 2 O) Nitrogen fertilization (N 2 O) Nitrogen Fixing Species (non-tree) (N 2 O) Nitrogen Fixing Species (tree) (N 2 O) Increase of livestock numbers (CH 4, N 2 O) Leakage Consumption of fossil fuels (CO 2 ) Activities displacement - Grazing (C) Activities displacement - Ariculture (C) Activity displacement - fuelwood collection (C) Displacement of people (C) Fencing (C) Forage production (CH 4, N 2 O) Source: TARAM 1.3

11. CDM A/R Investors' and Developers' Workshop, Beijing 2010 Based on its pioneer CDM projects, and with the support of the World Bank’s Prototype Carbon Fund, Plantar is about to become the first company in the Brazilian iron industry, to have its iron production 100% based on solid biofuels, i.e. renewable charcoal. The Plantar Case

12. CDM A/R Investors' and Developers' Workshop, Beijing 2010 10/13/2015

13. CDM A/R Investors' and Developers' Workshop, Beijing 2010 The Plantar Project Activities Plantation Establishment (Decision 19/CP.9) Project ActivityBaselineProject Additional benefits to the climate Improved carbonization process Sustainable iron production Cerrado restoration Pastureland Charcoal production with high levels of methane emissions Pig iron production based on coal coke or non-renewable biomass New planted forests Charcoal production with low levels of methane emissions Pig iron production based on charcoal from planted forests Cerrado Net CO 2 removals/ 4,5 MtCO 2 CH 4 ERs 0,5 – 1 M tCO 2 e CO 2 ERs ~8 MtCO 2 470 ha Total: 12,8 million tCO 2 e over 28 years

14. CDM A/R Investors' and Developers' Workshop, Beijing 2010 The Forestry Activity Baseline scenario Project scenario X

15. CDM A/R Investors' and Developers' Workshop, Beijing 2010 The Monitoring of Plantar Forestry Projects

16. CDM A/R Investors' and Developers' Workshop, Beijing 2010 The Monitoring of Plantar Forestry Projects

17. CDM A/R Investors' and Developers' Workshop, Beijing 2010 1.The importance of monitoring projects 2.Challenges to project developers Final remarks

18. CDM A/R Investors' and Developers' Workshop, Beijing 2010 Obrigado/Thank you! Rodrigo Ferreira plantarcarbon@plantar.com.br www.plantar.com.br