Saima Qadir Presentation for the conference on Taking stock of smallholders and community forestry Montpellier France March 24-26, 2010

1. BioCarbon Fund Portfolio ModelsLULUCF for Smallholder & Community Forestry Livelihoods Taking Stock of Smallholder & Community Forestry SaimaQadir Montpellier, France March 24-26 2010

3. Netherlands Clean Development Mechanism Facility -$ N.A.- (closed). Netherlands Ministry of Environment. CDM energy, infrastructure and industry projects.

4. Community Development Carbon Fund. $128.6 million (closed). Multi-shareholder. Small-scale CDM energy projects.

5. BioCarbon Fund. $89.9 million (Tranche One closed totaling $53.8 million). Multi-shareholder. CDM and JI LULUCF projects. Tranche 2 operationalized March 2007 with total capital of $36.6 million

6. Italian Carbon Fund. $155.6 million (closed). Multi-shareholder (from Italy only). Multipurpose.

7. Netherlands European Carbon Facility- $ N.A.- (closed). Netherlands Ministry of Economic affairs. JI projects.

8. Spanish Carbon Fund. $308 million (closed). Multi-shareholder (from Spain only). Multipurpose.

9. Danish Carbon Fund. $81.2 million (closed). Multi-shareholder (from Denmark only). Multipurpose.

10. Umbrella Carbon Facility. $737.6 million (Tranche One closed). 2 HFC-23 projects in China.

11. Carbon Fund for Europe. $70 million. Multi-shareholder. Multi-purpose.

13. Open carbon market to rural communities (excluded if CDM restricted to energy & infrastructure)

14. Inform debate (so far too ideological, not enough based on facts)

15. Create synergies among Conventions (money channeled through UNFCCC can foster sister conventions)

16. PES Approach (carbon sequestration is just one service provided within PES)UNCCD

17. GoalsLearning by Doing Atmospheric: Reduce GHG concentrations over baseline Cost-effective: Buy low-cost climate change mitigation opportunities Social: Improve livelihoods (employment, income, know-how) Environmental: Conserve biodiversity, rehabilitate land Adaptation: Increase social and ecological resilience of local communities Climate change will affect communities

18. How the Fund WorksGlobal Portfolio Technology Technology $ $ Finance Finance Industrialized Governments and Companies EITs and Developing Countries CO Equivalent CO Equivalent 2 2 Emission Reductions Emission Reductions - Work with smallholder, community owned , & public lands in a variety of landscapes - Concept of “pacific possession”

20. Exploration & demonstration. Rules may change after 2012

22. “Kyoto-grade” credits (tCERs, lCERs, ERUs)

23. CDM: Afforestation & Reforestation

25. EthiopiaHumbo Assisted Natural Regeneration Project Carbon supporting an innovative Assisted Natural Regeneration technique (ANR) for re-sprouting native species in partnership with World Vision “Forest Management Natural Regeneration” (FMNR) system: Community owned land overgrazed & cleared for fuel wood use until bushes Project activity promoting discontinuation of grazing, fuel wood collection and charcoal production in degraded areas for a period of time Short-term forest restoration involving poor rural communities in southwestern Ethiopia Farmers organized in seven cooperatives which include men & women People accessing forest to cut & carry the fodder growing under trees Will help with effects of severe flooding & erosion exacerbated by high altitude & rainfall Joint implementation World Vision Australia/Ethiopia, Ethiopian Agriculture Rural Development & Forestry Coordination Office, & Forest Cooperatives Compensation for farmers Timber (from designated woodlots) & non timber products incomes like honey & fruit Fuel wood from energy plantations Carbon revenue will be invested in local infrastructure & food security activities as per needs of community as well as carbon incomes Carbon triggering land tenure securitization of community owned land First large scale forestry project Registered for Africa

26. UgandaNile Basin Reforestation Carbon contributing to stabilize land use in agriculture frontier areas through Reforestation Communities partnering with the state to reforest national grasslands previously used illegally by communities (deforestation & erosion) Plantation of pine & mixed native species in grassland areas within Rwoho Central Forest Reserve – learning from native species expected to reduce technological barrier for future Cluster design & aggregation for potential investment from private & community investors Community Forest Management Agreements in place Partners sharing costs and revenues Rwoho Environmental Conservation and Protection Association (RECPA) & the National Forest Authority (NFA) Communities earning incomes for planting 500 people for establishment Afterwards 200 people for nursery work, weeding, fire protection, thinning, pruning, etc Availability of wood fuel State giving technical support to communities Environmental benefits Reduction of erosion induced discharge into Lake Victoria Increase of dry season flows Mitigation of ongoing land degradation

27. IndiaAlternative Rural Livelihoods Carbon supporting alternative livelihoods for indigenous communities Marginal degraded lands that are privately owned being used for subsistence to be reforested (3,500 ha) in Andhra Pradesh & Orissa JK paper factory is reforesting in exchange for sustainably harvested wood that it currently has to source from 800 km away Inclusion of small farmers allows them to reap benefits of carbon revenue and timber sales that they otherwise could not participate in 80% of carbon revenue will go directly to community Importance of revenue distribution mechanism Carbon triggering access to clonal technology and farmer outreach education program for farmers Communities earning incomes from planting in addition to carbon revenues Carbon triggering long-term quality supply of wood for JKPL Illustration of DNA forestry definition & colonial legacy of demarcation of land in India as forest land

28. Other Africa Models for Alternative Livelihoods

29. Democratic Republic of CongoIbiBateke Carbon Sink Plantation Carbon contributing to solve fuel wood shortage and environmental degradation in Kinshasa, where only 5% of the population enjoy electricity A multipurpose project in degraded lands to produce: carbon, agricultural products and fuel wood (charcoal) Grassy savannah disturbed by man-initiated fires Producing charcoal from plantation will reduce will reduce deforestation of remaining forest galleries Substantial indirect socio-economic benefits to communities One implementer (Novocel), but investing a fixed amount of revenues in: Health and education services to support surrounding communities Permanent jobs (50) during the total crediting period and temporary jobs (500 equivalent full-time positions) Capacity building on silviculture Carbon revenue will be used to finance expansion of project, health, education, & agroforestry activities in local community

30. KenyaGreen Belt Movement Carbon supporting a reforestation program focused on women development Communities organized in 7 Community Forest Associations (CFAs) to reforest lands & manage new forest (including management plans) Reforest public & private degraded lands with community access in Aberdare Range & Mount Kenya watersheds (targeting deep denuded slopes in water catchments) Reserve lands deforested for charcoal production or conversion to illegal agriculture/cattle grazing. Also illegal logging. Long term goal to use re-grown forest in sustainable manner for variety of products including fuel wood, charcoal, timber, medicinal & other uses Reintroduction of wide range of natural tree species Carbon triggering land tenure securitization Communities receiving technical assistance from government and GBM Communities earning incomes from planting and tending seedlings – women particularly involved

31. MadagascarAnkeniheny–Zahamena – Mantadia Biodiversity Conservation Corridor and Restoration Carbon supporting biodiversity conservation Degraded lands to be reforested with 120 native species Reduce forest fragmentation & reconnect corridors to reserves 114 individuals planting over 80 native species in exchange of Land tenure securitization Access to Agroforestry programs Partnership with Conservation International, ANAE (local NGO) & Ministry of Environment Communities earning incomes from planting in addition to carbon revenues Establish wood & fruit gardens & sell sustainable fuel wood to provide alternative livelihoods to local communities versus slash & burn for tavvy rice Also REDD component

32. Project Entities Have to Establish Many Types of Relationships for Developing & Implementing a Project Environmental Impact Assessment Requirements Exchange of good, Services or money Forest management plan Harvesting licenses Carbon buyers Farmers CDM rules and processes Project investors (public & private) Timber/NTFP buyers Project Entity Approval of project’s contribution to SD Land tenure clarification / securitization Ministry of Env & WB Forestry service Forestry service CDM-EB Land admin. entity DNA

33. Global Lessons Learned & Requisites for Success Capacity, capacity, capacity… Land tenure is key issue for agro-forestry/REDD projects & ownership can often prove difficult in developing countries Carbon rights unbundling is specific to each individual country Carbon can help trigger obtaining land tenure rights Private investors require secure land tenure Concept of “pacific possession” pioneered in Latin America when overlapping rights LULUCF is a way to ensure community benefits go to local communities Revenue sharing mechanism for communities must be carefully defined Community investment versus individual farmer income Intercropping for managing cash flows over time Minimum transaction size is needed High fixed costs Agro-forestry & providing technical advice to communities is expensive

34. Lesson Learned & Requisites for Success Cont… Multiple small community plots have higher transaction costs & each plot must be taken into account separately for 1990 rule LULUCF rules evolving to favor monoculture plantations Community buy-in is key for ensuring protection of trees & for enforcement/protection Remote access increases costs Demand needs to be created for certified native wood species Carbon revenue does not replace need for sound project design Full PES approach requires downstream demand Economic opportunity cost of community/land users must be covered in order to change behavior Communities need to be paid when they plant Waiting for Validation is too long for small communities Need for upfront financing Intercropping & agroforestry can help fill gaps

35. Thank You! sqadir@worldbank.org www.carbonfinance.org