Climate, Community & Biodiversity

• Climate, Community and Biodiversity Alliance (CCBA) • Review of multiple-benefit projects in Madagascar • Current carbon market opportunities & limitations with respect to sustainable development

www.climate-standards.org

Standards for ensuring integrity of carbon offset projects

CCB Standards Ensuring integrity of claimed outcomes:

• Climate protection • Conserving

biodiversity

• Supporting sustainable

development in poor communities

• climate-standards.org

www.climate-standards.org

Makira

• CI and WCS launched the Makira Forest Project in Madagascar w/ GoM • WCS is the project implementer working with the MEEF. CI provides carbon expertise & markets offsets.

• Working to declare and protect 350,000 Ha under GoM EP3. 8 of 10 local communities have agreements.

Goal to engage 112 communities, 10,500 inhabitants over 50K ha • Goal to cut deforestation rate by at least 50% resulting in 18,000 Ha

Parc National Mantadia

M-Z Corridor

• Mantadia-Zahamena corridor is key to Madagascar Durban Vision & EP3 • Threat from tavy production and illegal logging • Inhabitants: 43,266 in 44 villages • Establish zoning & local management

Parc National Zahamena

• Avoided Deforestation (>300K Ha) • Corridor Restoration (3,020 Ha) • Forest/Fruit Gardens (1,260 Ha) • Fuelwood Plantation (660 Ha) • 1M Kyoto eligible, 9M voluntary tons • Funding: WB, GoM,CI, USAID…

Sustainable Development Benefits

National Benefits Local (human/community) Provincial

Biodiversity conservation Healthier, more resilient local environment; Natural forest products Healthier natural environment; Tourist revenue Carbon sequestration and storage Undeflected succession/ Refugia Genetic stock of potential medicines; crops; other useful products, etc.

Healthier local microclimate; Potential carbon offset finance Less labour input to fallows; Improved natural seed dispersal Wider availability of herbal medicines – healthier people; availability of useful products for selective use; less hardship Amelioration of climatic oscillations; potentially strengthened economy Improved ecology; possible tourism opportunities Healthier populace – less pressure on local health system; Possible strengthening/expansi on of local economy Healthier environment; Tourist revenue; Meeting obligations under international agreements Strengthened economy; Meeting obligations under international treaties Healthier population; possibly strengthened economy; possible export trade

Sustainable Development Benefits

National Benefits Local (human/community) Provincial

Water regulation Soil retention Nutrient cycling Improved water availability Better, more reliable crops; healthier people Better, more reliable crops; healthier people; increased crop range Stabilised hydrological flows Reduced water runoff; reduced risk of flooding Possible increase in local trade; healthier local markets More sustainable economy Biological control Food security Resilience to environmental disturbance Non-Timber forest products Cultural Reduced risk of pest problems; improved crops Healthier people; more time for other activities Reduced risk of disturbance; buffering from cyclones More local needs met; New cultural opportunities Possible increase in local trade; healthier markets Increased local trade; healthier local market Reduced risk of population displacements Possible strengthening of local economy Enhanced local culture More sustainable economy More sustainable economy; Reduced risk of emergency infrastructure needs More resilient, sustainable economy Improved sustainability

Some Project Lessons Learned

• Technical carbon project experience needed • Early funding for project definition and community outreach • Projects must mitigate risks and be ‘investment grade’ • Difficult to meet Kyoto regulatory rules and laws • Where government lands and enforcement are required, governments must commit to delivery of carbon offsets • Project complexities, low understanding of carbon, and delayed carbon funding slows community and government acceptance • Role of Ministry of Env & Kyoto DNA are critical • Carbon funding will usually only cover a portion of overall corridor-scale project costs (20-35%) • Perpetuity cost structure not solved, typical projects 30 years

Carbon Market: Scaling Up

• Avoided deforestation, if included in policies, may provide single largest source of conservation financing for tropical forests • Pricing for Kyoto compliant and EU ERs $5-$15/tCO2 • Pricing supports only limited sustainable development benefits • Japan and EU ETS focusing more on regulatory purchases • Land-use not included in EU ETS is significant disadvantage • Only niche market interested in multiple-benefit land-use projects • Risk profile of CDM and land-use projects results in price discount • Responsibility to validate premise that land-use projects provide better development and biodiversity benefits through CCBA

Thank You!