REDD+ Project for Balakot

Team VIRIDI

Contents

Background Problems Opportunities REDD+ What is Kyoto Protocol Target Markets The Great Carbon Credits Merry-Go-

Round

Contents Contd.

Where the money will come from? Who will share the profit? Outcomes

Background

• Located in the North, about 150 km away from Islamabad and gateway to Kaghan valley.

• Height = near 3000ft• Population= approx 30,000 people.• The Balakot Tehsil is comprised of 1

town and 16 Union Councils.

Cont.• 2005 flattens the city.• Approx 2565 people lost their lives.• About 4209 residential units, 16 acres of

commercial area, 3 acres of educational areas, 2 acres of Mosques and 8 acres of public building area was completely destroyed

• In 2006, a plan for New Balakot city that can hold 2.5 million people for next 25 years was made.

Balakot

Problem

• While International donor agencies like SPAPEV, KJRC, NESCOM and U.S sponsored IR have aided in the reconstruction and rehabilitation of the city, the local economy still needs a lot of improvement.

• Concrete steps are needed to be taken, in order to allow the local economy to grow sustainably.

Opportunities• Balakot provides an ideal location for a REDD+

project.• REDD+ is Reducing Emission from Deforestation

and Forest Degradation.• It is basically selling of carbon credits stored in

forest to International companies through International emission markets, much like stocks.

• The Revenue earned through the selling of these credits can be used for reconstruction of economy and funding of environmental friendly energy generation projects.

Opportunities Cont.

• Kyoto’s unit allow 1 ton of carbon to be sold at 10 dollars.

• It is estimated that 10 trees absorb 1 ton of carbon annually.

• 1 acre of land can have 10,890 trees if placed with 2x2 spacing or 4,840 trees with 4x4 spacing.

• So one can earn 1089 or 484 dollars from 1 acre of land per annum.

What is Kyoto Protocol?

• A legally binding agreement adopted as a protocol to the United Nations Framework Convention on Climate Change (UNFCCC). It has been ratified by 181 countries and 1 regional economic organisation

• It sets binding targets for 37 industrialised countries and the European community for reducing greenhouse gas emission

Cont.• The Kyoto Protocol provides for three mechanisms that enable countries

or operators in developed countries to acquire greenhouse gas reduction credits

• Under Joint Implementation (JI) a developed country with relatively high costs of domestic greenhouse reduction would set up a project in another developed country.

• Under the Clean Development Mechanism (CDM) a developed country can 'sponsor' a greenhouse gas reduction project in a developing country where the cost of greenhouse gas reduction project activities is usually much lower, but the atmospheric effect is globally equivalent. The developed country would be given credits for meeting its emission reduction targets, while the developing country would receive the capital investment and clean technology or beneficial change in land use.

• Under International Emissions Trading (IET) countries can trade in the international carbon credit market to cover their shortfall in Assigned amount units. Countries with surplus units can sell them to countries that are exceeding their emission targets

Target Markets

• There are many international Climate Exchange markets which provides spot market rates, as well as future and optional market rates. These include:

European Climate Exchange.NASDAQ OMX Commodities Europe.Power Next.Commodity Exchange Bratislava.European Energy Exchange.

Where the money will come from?

• UN-REDD+ program supports these programs

• Our personal Investment.• Investment of land owners of the

area.

Who will share the profit?

• 10 % of profit will directly be given to local population, in cash.

• In addition, alternative energy generation projects like small hydro dams of Kunhar River and bio-gas plants will be installed.

• Modern educational and health facilities will also be provided along with improvement in tourism facilities.

• Farmers will directly earn revenue from Agro-forestry.

Outcomes

• Self sustaining and vibrant, agriculture based economy.

• Tourist Attraction will increase.• Environmental friendly energy

projects will decrease dependence on fossil fuels.

• A boom of similar projects will start to occur across the country.