official launch of the socalco 0 net deforestation supply chain initiative
TRANSCRIPT
DEWJI GROUP ‘0 NET DEFORESTATION’
SUSTAINABLE VALUE CHAIN INITIATIVE
• PILOTING/DEMOSTRATING THE INTEGRATION OF
SMALL-HOLDER AND SUSTAINABLE INDUSTRIAL
SCALE AGROFORESTRY VALUE CHAINS
• GETTING THE RURAL SOUTH EFFECTIVELY ON A
INTEGRATED CLIMATE CHANGE MITIGATION &
ADAPTATION PATHWAY
• THAT LEADS TO BOTH RESILIENCY (EFFECTIVE
ADAPTATION) AND MAJOR GHG (LULUCF)
EMISSION REDUCTIONS
THE DEWJI GROUP’S DRIVE FOR A REAL CHANGE OF SOUTHERN
AGRICULTURE AND ENERGY PRODUCTION SYSTEMS IS BASED ON THE
FOLLOWING KEY PREMISE:
THE BEST WAY FOR RURAL SOUTHERN COMMUNITIES TO ADAPT TO
CLIMATE CHANGE IS TO MITIGATE THEIR OWN LAND USE EMISISONS
HOW? ….. BY ACCESSING & ADOPTING HIGH PERFORMING
AGROFORESTRY TECHNOLOGY/SYSTEMS THAT CAN RESTORE
ANTHROPOGENIC SAVANAH & ALLOW FOR ITS SUSTAINABLE USE ,
THEREBY REPLACING BASELINE ENERGY WOOD, FOREST & AGRICULTURAL
PRODUCTS. THIS PROJECT SCENARIO ACTIVITY WILL GENERATE MAJOR
NON CARBON AND CARBON VALUES THAT TOGETHER CAN ALLOW
COMMUNITIES TO SELF PROPEL OUT OF EXTREME POVERTY AND BUILD A
FOUNDATION FOR COMMUNITY RESILIENCY THAT WILL ALSO PROVIDE THE
TENURE CERTAINTY AND GOOD GOVERNANCE NEEDED FOR PRIVATE
SECTOR ROI
REDD+ & INTEGRATED SUSTAINABLE LANDSCAPE MANAGEMENT -
‘STATE OF PLAY’ & CHALLENGES:
• REDD+ CONCEPT IS STILL SEEN AS PROMISING, BUT 6 YEARS OF
REDD+ NATIONAL-LEVEL PREPARATIONS HAVE YET TO PRODUCE
SUCCESSFUL PILOT PROJECTS TO SCALE IN AFRICA
• FOCUS IS STILL VERY MUCH ON CARBON BENEFITS
• DIFFICULTIES TO CONNECT/ENGAGE WITH SMALL HOLDERS AND
THE PRIVATE SECTOR
• KEY REDD+ TOOLS ARE NOT YET FULLY OPERATIONAL
• LACK OF HUMAN RESOURCES TO IMPLEMENT TO SCALE
• PRESENT CARBON PRICES AND UPFRONT FINANCING ARE OFTEN
NOT SUFFICIENT TO MOTIVATE SMALL HOLDER AND INDUSTRIAL
SCALE RESOURCE USE AND MANAGEMENT OPERATORS TO LEAVE
HIGH DEFORESTATION BASELINE TRAJECTORIES
• REDD+ CREDITS NOT FUNGIBLE INTO COMPLIANT MARKETS DUE TO
PERMANENCE REVERSABILITY RISKS
• REDD+, GREEN ECONOMY AND INTEGRATED LANDSCAPE PROGRAMS
HOPE TO LEVERAGE SPECIALIZED, LARGE-SCALE, AGRO-FORESTY VALUE
CHAIN INVESTMENTS, BUT OFTEN FAIL TO CREATE THE RIGHT
ENABLING ENVIRONMENT OR SUFFICIENT FOCUS (ToRs) AND/OR
INCENTIVES TO OFFSET MAJOR COUNTRY RISKS
• AS A RESULT REDD+ IS LOSING MOMENTUM JUST WHEN WE NEED IT
TO BE A RESULTS-BASED FRAMEWORK FOR A MASSIVE SHIFT IN LAND-
USES
REDD+ STATE OF PLAY & CHALLENGES CONTINUED…….
DEWJI GROUP CONGO PILOT: SHOWING A CLEAR EFFECTIVE PATHWAY TO
GET REDD+ / INTEGRATED LANDSCAPE MGMT / GREEN ECONOMY
PROGRAMS ‘OFF THE GROUND’ TO SCALE BY ADDRESSING 3 ESSENTIAL
NEEDS:
1. BY CONNECTING REDD+ FRAMEWORK WITH SUPPLY CHAIN
SUSTAINIBILITY AMBITION (expressed at RIO+20)
2. BY OFFERING A REGULATORY REMEDY FOR THE POTENTIAL REVERSAL
OF REDD+ CLIMATE BENEFITS (RENDERING THEM COMPLIANT-GRADE)
3. BY PROVIDING AN EXPERIENTIAL, ‘LEARN BY DOING’, PILOT TO
DEVELOP BEST PRACTICES AND THEN DEVELOPING CAPACITY
CENTERED ON THOSE BEST PRACTICES
DEWJI SUSTAINABILITY INNOVATIONS: SHOWING THE WAY FORWARD FOR
THE DESIGN & LAUNCH OF A POTENTIAL NEW PROGRAM THAT ADDRESSES
THOSE 3 URGENT NEEDS BY :
1. INCUBATING A NEW CLASS OF REDD+ PROJECTS FOCUSSED ON
INTEGRATING SMALLHOLDER AND INDUSTRIAL VALUE CHAINS
(LEVERAGING BILLIONS OF $$ OF SUPPLY CHAIN SUSTAINABILITY
INVESTMENT)
2. COUPLING COMPLIANT, CLEAN ENERGY, CREDITS AND BUFFERS
WITH REDD+ CREDITS TO AUTO-INSURE AGAINST REVERSAL (cost
<$15tCO2e)
3. PILOTING/DEMONSTRATING A CONCEPTUAL SOUND PATH TO
RESILIENCY FOR THE RURAL SOUTH THAT CAPACITY CAN BE
EFFECTIVELY BUILT AROUND
DEWJI GROUP PILOT ‘0 NET DEFORESTATION ‘ MAIN FEATURES:
• GREEN EXPANSION AND RELOCALISATION OF SOCALCO’S MANUFACTURING FACILITY TO
THE TOWN OF BOLOBO (250KM UPSTREAM ON THE CONGO RIVER MAINSTEM)
• NEW SUSTAINABLE SUPPLY OF RAW MATERIAL PEELER LOGS FOR MATCH SPLINT
PRODUCTION TO COME FROM 2 SOURCES:
1. VIA THE CREATION OF SUSTAINED YIELD FOREST MANAGEMENT UNITS FOR INFORMAL SECTOR
LOGGERS (TARGETING FORESTS THAT CONTAIN THE DESIRED SPECIES)
2. THE ESTABLISHMENT OF 10,000 HECTARES OF AGROFORESTRY, WITH ONE OF THE LEAD NATIVE
TREE SPECIES BEING FUNTUMIA AFRICA (GOOD FOR MATCH SPLINTS)
• ESTABLISHMENT OF A LARGE, RENEWABLE ENERGY, THERMAL GENERATING POWER PLANT
USING FORESTRY AND AGRICULTURAL WASTE AS FEEDSTOCKS
• SPECIAL FOCUS ON INTEGRATING SOCALCO’S SUPPLY CHAIN WITH SMALL HOLDER VALUE
CHAINS
• DEVELOPMENT OF BEST PRACTICES FOR COMMUNITY ENGAGEMENT AND GOVERNANCE
• DEVELOPMENT OF INNOVATIVE QUANTIFICATION AND MONETIZATION PROTOCOLS THAT
INTEGRATE CLEAN ENERGY, FUEL SWITCH AND REDD+ METHODOLOGIES
• BY RENDERING ACCESSIBLE APPROPRIATE AGROFORESTRY & RENEWABLE
ENERGY PRODUCTION SYSTEMS THAT GREATLY INCREASE FOOD, ENERGY
PRODUCTION AND FAMILY REVENUES, SMALLHOLDERS WILL BE RELEASED
FROM THEIR DEPENDENCY ON LOW PERFORMING ‘SLASH AND BURN’
AGRICULTURE AND NON-SUSTAINABLE ENERGY WOOD EXTRACTION
• PERMANENT (COMPLIANCE-GRADE) NET CLIMATE BENEFITS FROM LAND-USE
EMISSION REDUCTIONS CAN BE GENERATED VIA QUANTIFICATION AND
MONETIZATION PROTOCOLS THAT INTEGRATE REDD+, FUEL SWITCH AND
IMPROVED STOVE OFFSET METHODOLOGIES ( TAKING INTO ACCOUNT
THATOVER 50% OF DEFORESTED BIOMASS IS USED AS ENERGY WOOD IN THE
DRC)
• THIS PILOT WILL REPLACE OVER 100% OF BASELINE ENERGY SUPPLY WITH
NEW SUSTAINABLE SOURCES (TO INCREASE CLEAN ENERGY ER POTENTIAL
• POSITIVE HEALTH IMPACTS FROM INTEGRATING IMPROVED STOVES WITH
FUEL SWITCHING ARE HUGE
INTEGRATING REDD+ AND CLEAN ENERGY FOR THE BENEFIT OF
SMALLHOLDERS AND MORE FUNGIBLE CLIMATE BENEFITS:
CLIMATE AND SOCIO-ECONOMIC/HEALTH IMPACTS CONTINUED….
• LOOKING AT AFRICA AS A CONTINENT, REDUCTIONS IN COOKING WOOD FIRE SMOKE/EMISSIONS AS PART OF VALUE-CHAIN FOCUSSED REDD+ PROGRAM WOULD POTENTIALLY EQUATE TO:
• UP TO 500M tCO2e/yr IN JURISDICTIONAL, COMPLIANT-GRADE, EMISSON REDUCTIONS (GREATER THAN CANADA’S TOTAL GHG EMISSIONS)
• PROVIDE MASSIVE HEALTH BENEFITS TO 150M FAMILIES
• CREATE LARGE INCREASES IN SMALLHOLDER FAMILY REVENUES
• THE EMISSION REDUCTIONS, IF DONE VIA NESTED PROJECTS WITHIN ROBUST, WELL MONITORED AND SAFE GUARDED, JURISDICTIONAL REDD+ / EMISSION REDUCTION PROJECTS, WOULD HAVE THE POTENTIAL TO BE USED AS INTENDED NATIONALLY DESIGNATED CONTRIBUTIONS (INDCs) BY DEVELOPED ANNEX 1 (AS PER UNFCCC PROTOCOL AND PARIS CLIMATE AGREEMENT)
IN SUMMARY, THE DEWJI GROUP DRC PILOT WOULD:
• DEMONSTRATE HOW NET EMISSION REDUCTIONS FROM SUCH SUPPLY
CHAIN GREENING TYPE REDD+ INITIATIVES COULD BE
• FUNGIBLE INTO COMPLIANT MARKETS
• AVAILABLE FOR USE BY DEVELOPED COUNTRIES AS INDCs
• DEMONSTRATE THAT SUCH VALUE CHAIN INTEGRATION DRIVEN REDD+
INITIATIVES CAN PRODUCE A MUCH HIGHER LEVEL OF NON CARBON
BENEFITS FOR SMALL HOLDERS
• DEVELOP A LIVING LABORATORY AND EXPERENTIAL ‘LEARN BY DOING’
CAPACITY BUILDING/TRAINING CENTER OF EXCELLENCE
• DEVELOP EFFECTIVE BEST PRACTICES FOR REDD+ DRIVEN
TRANSFORMATIONAL CHANGE CENTERED ON SMALL HOLDER & INDUSTRIAL
VALUE CHAIN INTEGRATION
• SHOW COMMODITY COMPANIES THAT SUSTAINABLE LAND USE CAN
MITIGATE THEIR FINANCIAL RISK/EXPOSURE VIA ENHANCED SOCIAL
LICENCE
THE DEWJI GROUP IN THE DRC
• TAKING A HIGH VALUE-ADD FOREST PRODUCT COMPANY ON A ‘O NET DEFORESTATION SUPPLY CHAIN ‘ TRAJECTORY
• SHOWING HOW INTEGRATED, PRIVATE SECTOR-LED, VALUE CHAIN INTEGRATION CAN SPEARHEAD LANDSCAPE-LEVEL REDD+ MITIGATION AND ADAPTATION INITATIVES THAT EMPOWER AFRICA TO MEET ITS NEW SDG GOALS
DEBUGGING REDD : GETTING INITIAL CARBON FINANCE TO TRIGGER REPLACEMENT OF UNSUSTAINABLE NON CARBON VALUE CHAINS WITH MORE PROFITABLE EFFECTIVE SUSTAINABLE ONES THAT DO NOT NECESSITATE DEFORESTATION AND ARE DRIVEN BY SMALL HOLDER SUPPLY CHAINS THAT ARE INTEGRATED WITH INDUSTRIAL SCALE AGRI BUSINESS ONES
PROJECT SCENARIO
>1.5X t/yr baseline energy wood volumes
>1.5X t/yr baseline service wood volumes
>1.5X m3/yr of baseline sawlog volumes
>3X t/yr ag products
Leakage Management Zone
FOREST INTENDED FOR PROTECTION
TECHNICAL CONSIDERATIONS
Sustained yield forest mgmt units in adjacent managed working forest area
REDD+ intervention area = leakage mgmt zone + protected forest zone
Leakage Management Zone
Ad
jacent U
rban
Areas
Ad
jacent U
rban
Areas
DEBUGGING REDD : CLEAN ENERGY (IMPROVED STOVES) AND FUEL SWITCH) ARE ESSENTIAL MITIGATION ACTIVITIES AND THEY QUANTIFICATION CAN BE USED AS A DEFACTO INDICATOR/MEASUREMENT OF REDD EFFECTIVENESS (i.e. reduced deforestation emissions + reduced poverty)
PROJECT SCENARIO
Sust
ain
ablle
ener
gy w
oo
d u
se in
im
pro
ved
sto
ve p
roje
cts
(fu
el s
wit
ch)
Leakage Management Zone
FOREST INTENDED FOR PROTECTION
TECHNICAL CONSIDERATIONS
Improved stove projects in nearby urban areas
energy plantations
REDD+ intervention area = leakage mgmt zone + protected forest zone
Adjacent Urban Areas
DEBUGGING REDD : ENSURE INTENSITY AND QUALITY OF INVESTMENT ($/HA & BEST PRACTICES/APPROPRIATE VALUE ADD TECHNOLOGIES & THIRD PARTY CERTIFICATION & MARKET LINKAGES via EFFECTIVE VALUE CHAIN INTEGRATION)
PROJECT SCENARIO
D – INVEST IN REPLACEMENT OF ALL BASELINE ENERGY WOOD FLOWS BY SUSTAINABLE ECO-CHARCOAL FROM LEAKAGE MANAGEMENT AREA PLANTATIONS (>1.5X t/yr energy wood)
C – INVEST IN SERVICE WOOD REPLACEMENT IN LEAKAGE MANAGEMENT AREA PLANTATIONS (>1X m3/yr baseline service wood)
A - INVESTMENT IN ALTERNATIVES TO ILLEGAL LOGGING >$10/ha to establish sustained yield mgmtunits + TRACE certification and intervention MRV
B – INVEST IN THE INCUBATION OF SUSTAINABLE AGRICULTURE PILOTS >$1000/HA for plantations establishment + $20,000/community for effective engagement
Leakage Management Zone
FOREST ZONE DESIGNATED FOR INTEGRAL PROTECTION AND/OR NFTP USE
TECHNICAL CONSIDERATIONS
savannah (plantations) and existing Ag Complex (best practices + extension services + micro credit)
Sustained yield forest mgmt units SAWLOGS VOLUMES > BASELINE FLOWS