dairy and livestock namas in costa rica, kenya and mongolia

Livestock NAMAs in Kenya, Mongolia and Kyrgyzstan

Science-‐policy-‐livelihood progress through livestock-‐related NAMAs in Costa Rica, Kenya and Mongolia

Timm Tennigkeit, SBSTA 42 Side Event Friday June 5 2015, Bonn

© UNIQUE forestry and land use GmbH

Livestock NAMA – Global poten5al 1.   Impact

•  MiRgaRon: Sector accounts for 14.5% ~ 7.1 GtCO2-‐eq p.a. ; emission reducRon potenRal 30% ~ 2.1 GtCO2-‐eq p.a.

•  AdaptaRon: Restoring grasslands – ecosystem based adaptaRon –, enhancing resilience of 600 M livestock-‐based livelihoods

2.   Paradigm shi@ (impact beyond the project): High momentum of sustainability issues in a rapidly growing sector can be addressed by shibing consumpRon, reducing waste and invesRng in the compeRRveness of sustainable and low emission producRon

3.   Sustainable development: Ecosystem resilience; social benefits e.g. improved livelihoods and nutriRon; economic benefits e.g. increased income, employment i.e. 1,000 l milk producRon generaRng on average over 70 direct jobs at farm level and 30 jobs in the value chain (smallholder producRon).

4.   Needs of the recipient: TargeRng rural poor engaged in livestock-‐based livelihoods 5.   Country ownership: NaRonal development and INDC priority in many countries 6.   Efficiency and effec5veness: Livestock sector, in parRcular dairy, oben has already

relaRvely well established insRtuRons, value chains and can leveraging private sector finance, innovaRons and experRse

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Dairy NAMA development in Kenya , with CCAFs support

Theory of change §  The NAMA will address systema5c barriers (e.g. lack of supporRng services and

market access, fragmented value chains) to transform the sector §  Key intervenRons contribute to the achievement of naRonal development

strategies and encourage private sector par5cipa5on by providing market-‐led opportuniRes and incenRves, increasing the efficiency and compeRRveness of the dairy value chain and supporRng stable milk supply to dairy processors

§  ImplementaRon will be through regional private and public financed ini5a5ves Financing and resource leverage §  Private sector investments in technology and extension to increase long-‐term milk

supply and improve milk quality §  Public support from County Development Funds and development partner

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Dairy NAMA development in Kenya (cont.)

§  Impact: MiRgaRon potenRal of 2 MtCO2-‐eq p.a. in 2025, represenRng 3.3% of Kenya’s 2010 GHG emissions; food & nutriRon security for 30 million consumers

§  Paradigm shi@: Africa as a whole has a milk deficit resulRng in increasing imports and child malnutriRon. Even Kenya with the most advanced dairy industry outside SSA is facing this problem. Considering that 80% of smallholder farms are engaged in dairy and that the sector is relaRvely well organized a dairy NAMA can be scaled to 1.8M households in Kenya and lessons learned adopted across Sub-‐Saharan Africa.

§  Sustainable development: Dairy is a dynamic and well organized industry in Kenya, contribuRng 4% to GDP or more than US$ 1 Billion to the economy, sustaining 700,000 families & generaRng 180,000 jobs in the value chain.

§  Efficiency and effec5veness: Linking smallholder dairy producer to the market can increase income by US$ 1,000-‐2,000 per farmer per year.

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Mongolia‘s livestock NAMA, with ADB support 5

§  Impact: Grassland restoraRon has a technical miRgaRon potenRal of 29 MtCO2-‐eq p.a. This is 1/3 of energy sector technical potenRal and 18 Rmes larger than industry potenRal, but there are more barriers to adopRon in grassland management. Livestock intervenRons, i.e. changing heard size and structure, improved breeding has a technical miRgaRon potenRal of 457,000 tCO2e p.a. Both intervenRons increase climate resilience and livelihoods.

§  Paradigm shi@: IntervenRons will be catalyRc for developing markets for quality meat and cashmere. A number of other Central Asian countries will benefit from lessons learned.

§  Sustainable development: Alignment with NaRonal Livestock programme ensures policy coherence and leverage resources

§  Efficiency and effec5veness: Grassland restoraRon and livestock intervenRons (except fodder producRon) are financially viable and result in internal rate of returns of between 15 and 30%. Abatement costs are quite anracRve compared with the energy and industry sector. In addiRon to the economic gains they generate environmental and social benefits.


Beef NAMA development in Kyrgyzstan, with GIZ support

§  Impact: MiRgaRon potenRal of 90,000 tCO2-‐eq p.a. when only 30 % of the beef is produced more efficient i.e. bener feeding and animal health resulRng in lower emissions per product unit. In addiRon, 160,000 tCO2-‐eq p.a. from soil carbon sequestraRon on sustainably managed pasture. Efficient beef producRon will increase resilience of smallholder producRon, generate rural employment and improve livelihoods.

§  Paradigm shi@: Ongoing livestock investments focus on pasture management. Beef value chains based on more efficient and quality producRon will strengthen adopRon of sustainable pasture management.

§  Sustainable development: Economic development and sustainable land use can go hand in hand. Joining the Eurasian Customs Union will provide huge beef export opportuniRes to Kazakhstan and Russia linked to employment and tax revenues. Currently 50 % (9.2 M ha) of pasture is degraded resulRng in insufficient grazing opportuniRes and reduced water holding capacity. Introducing animal health control & incenRves for quality and efficiency livestock producRon will generate economic, environmental and social returns.

§  Efficiency and effec5veness: € 10 M investment in animal health control system will leverage € 100-‐200 M p.a. in beef export revenues and related private sector investments, employment opportuniRes and tax revenues

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Way forward 7

§  Livestock is globally emerging as a sweet spot for climate-‐smart agricultural investments.

§  RespecRve investments can have strong miRgaRon and adaptaRon impacts, but require a value chain approach to deliver related environmental and poverty reducRon benefits as demonstrated in all three Livestock NAMA case studies.

§  NAMAs are a flexible instrument for supporRng the implementaRon of Intended NaRonally Determined ContribuRons (INDCs). Hence they are well aligned with country and sector specific needs while leveraging and integraRng different private and public resources.

§  The Green Climate Fund is expected to be the main financing mechanism for Livestock NAMAs. Assessment criteria for the NAMA Facility and the Green Climate Fund are similar. Therefore, project developer may consider both opRons together with eligible/accredited financing partner.

§  ParRcipaRon of the private sector is key for any Livestock NAMA considering their operaRonal experience, innovaRon and to ensure long-‐term sustainability

§  CCAFS together with its public and private partners is providing the science base and support for Livestock NAMA design and implementaRon across regions.

KONTAKT CONTACT CONTACTO

UNIQUE forestry and land use GmbH Schnewlinstr. 10 79098 Freiburg, Germany Tel: +49 -‐ 761 20 85 34 -‐ 0 Fax: +49 -‐ 761 20 85 34 -‐ 10 unique@unique-‐landuse.de www.unique-‐landuse.de

Timm Tennigkeit Timm.Tennigkeit@unique-‐landuse.de +49 761 20 85 34 27

dairy and livestock namas in costa rica, kenya and mongolia

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