2nd sustainable land management stakeholder workshop bahir dar 3.-4. february 2011
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Carbon offsets in African smallholder farms - an ecological and economic way to counterbalance the global climate change Veli Pohjonen Tana-Beles WME project. 2nd Sustainable Land Management Stakeholder Workshop Bahir Dar 3.-4. February 2011. CO 2 in our air. - PowerPoint PPT PresentationTRANSCRIPT
Carbon offsets in African smallholder farmsCarbon offsets in African smallholder farms- an ecological and economic way to counterbalance the global - an ecological and economic way to counterbalance the global
climate changeclimate change
Veli PohjonenVeli PohjonenTana-Beles WME projectTana-Beles WME project
2nd Sustainable Land Management 2nd Sustainable Land Management Stakeholder Workshop Stakeholder Workshop
Bahir DarBahir Dar
3.-4. February 20113.-4. February 2011
COCO22 in our air in our air
Despite climate conventions in Kyoto, Despite climate conventions in Kyoto, Copenhagen and Cancun (Mexico):Copenhagen and Cancun (Mexico):
COCO22 concentration of the air is rising concentration of the air is rising
24 per cent between 1958 – 201024 per cent between 1958 – 2010
Two ways to combatTwo ways to combat
Through the Through the sourcessources: reduce CO: reduce CO22 emissions. Attempted for 20 years in emissions. Attempted for 20 years in the polluting countriesthe polluting countries
Through the Through the sinkssinks: increase Carbon : increase Carbon
Offsets to trees. Ecological way.Offsets to trees. Ecological way.
Carbon Offsets to treesCarbon Offsets to trees
Conserve and manage the existing Conserve and manage the existing natural forestsnatural forests
Establish block plantationsEstablish block plantations
Smallholder farmsSmallholder farms
Carbon Offsets in smallholder farms Carbon Offsets in smallholder farms
Plant treesPlant trees Count the trees in year 1Count the trees in year 1 Define the carbon stock in year 1 (= Define the carbon stock in year 1 (=
A, tn C/farm)A, tn C/farm) Recount the trees in year 2Recount the trees in year 2 Define the carbon stock in year 2 (= Define the carbon stock in year 2 (=
B, tn C/farm)B, tn C/farm) Carbon Offset = B – A (tn C/farm/yr)Carbon Offset = B – A (tn C/farm/yr)
Ato Minale Hailu, Gelawdeos, Dera: Ato Minale Hailu, Gelawdeos, Dera: A= 5.04 tn C/farm, B= 5.47 tn C/farmA= 5.04 tn C/farm, B= 5.47 tn C/farmCarbon Offset B-A = 0.4 tn C/farm/yrCarbon Offset B-A = 0.4 tn C/farm/yr
Carbon Offsets into MoneyCarbon Offsets into Money
Ato Minale Hailu’s Carbon OffsetsAto Minale Hailu’s Carbon Offsets
A = 5.044 tn C/farmA = 5.044 tn C/farm
B = 5.465 tn C/farmB = 5.465 tn C/farm
B-A = 0.421 tn C/farm/yrB-A = 0.421 tn C/farm/yr
How much in Birr is the Carbon Offset B-A ?How much in Birr is the Carbon Offset B-A ?
CER pricing principleCER pricing principle
Certified Emissions Reduction, CER (Certified Emissions Reduction, CER (http://www.ecx.eu/ ) )
Price of CER = 11.43 Euro / tn COPrice of CER = 11.43 Euro / tn CO22
Price of C = 41.91 Euro / tn C Price of C = 41.91 Euro / tn C ((factor 44/12)factor 44/12)
Price of C = 966 Birr / tn (exch rate 23.04)Price of C = 966 Birr / tn (exch rate 23.04) Value of tree farmer’s Offsetted Carbon Value of tree farmer’s Offsetted Carbon
changes with international market changes with international market (on (on 2.2.2011 it was 966 Birr / tn C)2.2.2011 it was 966 Birr / tn C)
Ato Minale Hailu: Birr value of Ato Minale Hailu: Birr value of Offsetted Carbon Offsetted Carbon
Carbon Offset in one year Carbon Offset in one year (12.11.2009 – 23.11.2010), B-A = (12.11.2009 – 23.11.2010), B-A = 0.421 tn C/farm/yr0.421 tn C/farm/yr
Price of Carbon 966 Birr / tn CPrice of Carbon 966 Birr / tn C
Value of Offsetted Carbon: Value of Offsetted Carbon: 407 Birr / 407 Birr / yr yr
Principle of Carbon Offset paymentPrinciple of Carbon Offset payment
Year A gives the baseline value (tn C/farm)Year A gives the baseline value (tn C/farm) If B-A > 0, payment is doneIf B-A > 0, payment is done B becomes new baseline valueB becomes new baseline value
If B-A < 0, payment is not doneIf B-A < 0, payment is not done The payment is done in the year when new The payment is done in the year when new
carbon stock exceeds the baseline value carbon stock exceeds the baseline value
Expected Carbon payment to farmersExpected Carbon payment to farmers
Fair price would be CER = 966 Birr / Fair price would be CER = 966 Birr / tn Ctn C
In real trade at least two levels of In real trade at least two levels of middlemen are presentmiddlemen are present
Would the price to farmer drop to Would the price to farmer drop to one third? That is 322 Birr / tn Cone third? That is 322 Birr / tn C
What was paid in Humbo project?What was paid in Humbo project? 245 Birr / tn C (4 USD / tn CO245 Birr / tn C (4 USD / tn CO22))
How to organize Carbon Offset trade?How to organize Carbon Offset trade?
Ato Minale Hailu and co-farmers group Ato Minale Hailu and co-farmers group into Forest Producers Organization (FPO)into Forest Producers Organization (FPO)
FPO buys once a year the Carbon FPO buys once a year the Carbon Offsets from member farmersOffsets from member farmers
FPO sells the Carbon Offsets to FPO sells the Carbon Offsets to Ethiopian Carbon Offset Export AgencyEthiopian Carbon Offset Export Agency
The Export Agency sells the Carbon The Export Agency sells the Carbon Offsets to International Carbon Trade Offsets to International Carbon Trade markets markets
Challenges for M & EChallenges for M & E
Defining the carbon stock, Defining the carbon stock, development of the Excel modeldevelopment of the Excel model
Monitoring & Evaluation (M &E) of Monitoring & Evaluation (M &E) of the Carbon stock in Forest Producers’ the Carbon stock in Forest Producers’ Organization and in the single farmsOrganization and in the single farms
Use of IT – technology (mobile Use of IT – technology (mobile phones, GPS) in carbon data phones, GPS) in carbon data communication, carbon payments communication, carbon payments and M & Eand M & E
Ecological advantagesEcological advantages
Carbon Offsets trade encourages Carbon Offsets trade encourages farmers to plant more treesfarmers to plant more trees
Planting of trees further away from all Planting of trees further away from all weather road increasesweather road increases
Planting of trees on most eroded sites Planting of trees on most eroded sites increasesincreases
Perpetuum Mobile (PM) – Plantarum Perpetuum Mobile (PM) – Plantarum MobileMobile
Economic advantagesEconomic advantages
Farmers get added value from planted treesFarmers get added value from planted trees The value of The value of atanaatana-based smallholder -based smallholder
forestry increases annually by about 10 per forestry increases annually by about 10 per centcent
Player’s are many (e.g. 12.2 mill. Player’s are many (e.g. 12.2 mill. smallholders in Ethiopia)smallholders in Ethiopia)
Carbon offsets are to be understood as a new Carbon offsets are to be understood as a new export commodity from forestry, like export commodity from forestry, like exporting exporting atanasatanas to Sudan to Sudan
A new export commodity is added to A new export commodity is added to Ethiopian international trade Ethiopian international trade
Model to other AfricaModel to other Africa
Smallholder tree planting is on a good drive in Smallholder tree planting is on a good drive in Ethiopia, especially in Amhara regionEthiopia, especially in Amhara region
Farmers are motivated especially after Farmers are motivated especially after successful steps in land tenure and certificationsuccessful steps in land tenure and certification
Forestry training in universities and colleges has Forestry training in universities and colleges has long traditions in Ethiopialong traditions in Ethiopia
Ethiopia is already converting into Carbon Tower Ethiopia is already converting into Carbon Tower of Africa. This accelerates with Carbon tradingof Africa. This accelerates with Carbon trading
Ethiopia can thus be the model for the other Ethiopia can thus be the model for the other AfricaAfrica