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Carbon sequestration options under the clean development mechanism to address land degradation PDF

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WorldSoilResourcesReports 92 ISSN0S32-CI4ee CARBONSEQUESTRATIONOPTIONS UNDERTHECLEANDEVELOPMENTMECHANISM TOADDRESSLANDDEGRADATION InternationalFund torAgriculturalDevelopment Copyrightedmaterial 92 WorldSoilResourcesReports CARBONSEQUESTRATIONOPTIONS UNDERTHECLEANDEVELOPMENTMECHANISM TOADDRESSLANDDEGRADATION FOODANDAGRICULTUREORGANIZATIONOFTHEUNITEDNATIONS Rome,2000 Thl« On* material ToinphietnhiidosensiinwgfhnoaarttmisaotoniesovneermpproolndouyctethdedaopnadrntotthoefimptprhleeysenFtoaotdeixopnarnoedfstsAhigeornmiacoutfletanunarlye Oainrnggyatcnhoieuznadtterliyio,mnitotefrarttiihtooenryUo,nfciiittteysdofrNroaantrtieioeanrssorcoorofnhicotesir/annuditahnorgriiettshi.eesl,egoarlcsotnacteursno-f ISBN92-5-104515-1 AapiwpSRileniurenolrfttformvohohvmeriroroiiicmu,mrdsgeataiesh.ttzIditiitwesoaoIrodtnlninnhyrtfewetsopopieshrrrrstneomoohobrauddoupvytluuureeidcctcedrott-e.mnabmiffneaisDooRsyirisrelavfippiuedrotirrsdednoiiiousyroodcacreonaaulof,sctepcwsiykrttFeooirnihAtrdniooeOtgawnehlo,tclnttooeaho^VppdertntyfegrhdarraoeelimtcodegdihoC.hieosdhmtrsrseimRtsegiheelnfeoorpe,omnlcrindTioPnf-edaeuarrculbstroocl.immmitpomesiunAtehoprhrdinpepoicnlfoigoicCsafcoamelaapramstnyatairpcdetoiiauresngirirMshiapiputalarolf,lostohhriei0oiinmsln0bsedi1uttdeathh0cirerii0hadsess ©FAO2000 Copyrightedmaterial Carbonseque.stralionoptionsunderthecleandevelopmentmechanism Hi Preface IncontinuationofacollaborativeprogrammeontheimplementationoftheConventionto CombatDesertification(CCD),KAOandIKADagreedtoimplementaprojecttoassistcountries, initiallyinLatinAmericaandtheCaribbean,intheformulationofpolicyandtechnicaloptions forsustainingproductionsystemswhichcanimprovelivelihoodofpoorfarmersthroughland conservation,enhancementofagro-biodiversityandincreasedcarbonsequestration. Theobjectiveofthisprojectistoaddresstheurgentneedtoreverselanddegradationdueto deforestationandinadequatelandiisc/managementinthetropicsandsub-tropicswithfocuson theLatinAmericaandCaribbeanregion. Atagenerallevel,theprojectdealswiththisissuethroughthepromotionofimprovedlanduse systemsandlandmanagementpracticeswhichprovideeconomicgainsanden\ironmental benefits,greateragro-biodiversity,improvedconservationandenvironmentalmanagementand increasedcarbonsequestration.Theprojectwillcontributetothedevelopmentofregionaland nationalprogrammeslinkingtheConventiononClimateChange(CCC)-KyotoProtocol,the ConventiontoCombatDesertification(CCD)andtheConventiononBiodiversity'(CBD). focusingonsynergiesamongthethreeConventions. Ataspecificlevel,pilotstudiesarecarriedoutinselectedsitesinLatinAmericato: • assessthequalitativeandquantitativeassetsofthemajorlandusesystemsandland managementpracticesinl.atinAmericaandtheCaribbeanintermsofsoilfertilityandland productivity,agro-biodiversityandcarbonstock; • evaluatethepossibilityandoptionsoflandusechangesandlandmanagementpractices whichwouldpreventlanddegradation,conserveagro-biodiversityandenhancecarbon sequestration:and • prepareregionalandnationalstrategicsandactionplanslinkingtogetherthespecificlegislative frameworkinplaceanditsareasofoperation. Thispublicationcontainstheresultofastudyontheoriginandbackgroundofthecarbon sequestrationoptionsandtheCleanDevelopmentMechanism(CDM).Itdocumentstheoutcome oCfDtMhehvaavreiobuesenprdoicseceudssiendg.sTohfetahtetiitnutdeernaantdiotnhaelpmoesiettiionngsofitnhewhkieychcocuanrtbroinessaetqiudetshteraGtrioounpan7d7 involvedininternationalenvironmentaltreatiesareexaminedusingtheavailablesourcesinthe UnitedStates,includingrelevantNGOsandinternationalorganisations.11iepublicationexamines theVariousinitiativesthathavebeentakeninresponsetotheabove-mentionedideas,including therecentinitiativebytheGlobalKnvironmentFacility(GLK)andtheWorldBanktofacilitate thefundingoflanddegradationprojectsunderGEF.Thisanalysisincludestheexplorationof tchoellalebgoarlatbiaosnebfeotrweseunchIFinAiDtiaatnivdesF.AOItoanlscoairnbcolnudseesquaesrtervatiieownoafndthiendoincgaoteisnghopwroigtrwaomumledfoift withintheframeworkoftheexistinginternationalenvironmentaltreaties,aswellastherecent GEFandWorldBankinitiative. Copyrightedmaterial Acknowledgements ThanksareduetoMrAllenKeiscr,thelegalconsultantwhocarriedoutthestudyandprepared tPhairsvirzepKoroto.haTfhkeanw,orFkAOw.aTshceormempiosrtsiwoansedreavinedwesdupbeyrviJ.seAdntboyinBea,hTmuadnorMBaontszuarni,R,.IGFoAmDn,ieasn,d M.AliandR.Brinkman. Copyrightedmaterial Carbonsequestrationoptionsunderthedeandevelopmentmedtanism Contents page 1 _ iKrROnL't'TU)^ 1 II TThOiTil1lImli,'HM)n-NnANiaitoiNoSnCsoFwraimnitiwoonrnrorCoomwbi.aNtTiDoi-NsionrtCiirciamtaitopnr.iainAdNrorrsI.inkagf 1 III KyotoProTix-oi 3 IV. Carbonsloulsiration 7 Themeaninaofcarbonsequestrationincurrentliterature 7 TCahrebmoenasneiqnuaesotfractairobnoannsdeqtuheesCtrCatDionasithasdevelopedundertheFCCC 1147 V. EmissionsTradingandtheCi.danDevelopmentMechanism(CDM) 20 EmissionstradinaunderArticle17 21 Thecleandevelopmentmechanism 21 VI. TheGlobalEnvironmentFacility(GEF) 25 VII Till:PRtrroTYPECarbonFund 31 VUI CoMLt’SION 32 RlKFRINtrS 33 Aim>lNDixListokacronymsand.selectivec.lossarv 33 Copyrightedmaterial Carbonsequestrationoptionsunderthedeandevelopmentmedtanism vii Summary TheUNFrameworkConventiononClimateChange(FCCC)statedasitsmainobjective; “stabilizationofgreenhousegasconcentrationsintheatmosphereatalevelthatwouldprevent dangerousanthropogenicinterferencewiththeclimatesystem’’.Itisinterestingtonotethatthe FCCCwasalsoconstructedwithissuesofdesertificationinthemindsoftheParties’negotiators; itsPreamblerecalls"thepertinentprovisionsofGeneralAssemblyResolutionofDecember 1989ontheimplementationofthePlantoActiontoCombatDesertification”. ThesubsequentConventiontoCombatDesertification(CCD)isconcernedthatextensiveareas, whichmightotherwisebeproductive,havebeenrenderedunsuitableforcropproductionto meettheneedsofthepopulationduetolanddegradationandreductioninsoilcarbonstocks. Thus,theCCDandFCCCwithitsKyotoProtocol(KP)shareamutualgoal,i,e,,theproper managementofcarbon.Moreover,landusechange,agricultureandforestryactivitiesrecognized bytheKParcalsocloselylinkedtotheCCDandConventiononBiodiversity(CBD),although theKPdoesnotexplicitlyaddressitsrelationwiththose. Restoration,towhichallthreeConventionsrefer,couldonlyoccurtliroughimprovedlanduse andcropmanagement,throughpracticesleadingtotheproperplacementofcarboninthegeosphere atthesametimeascontributingtofoodsecurity.Restitutingcarbontothoselandsdepictedof thecapacity'tobeproductivewouldalsocontributetoreducingcarbonintheatmosphere. Becauseindustrializedcountriesarelargelyresponsiblefortheexcessiveamountsofgreenhou.se gasesintheatmosphere,andbecausetheyarebelterabletopay,theFCCChasassignedto thosetheleadershiproleinthereductionofgreenhousegasemissions.TheKP,notyetentered intoforce,hassetQuantifiedEmissionLimitationandReductionCommitments(QELRCs)to bemetbythedevelopedcountryPartiesduringthefirstcommitmentperiod,2008-2012. Developingcountry'Parties,duetotheprincipleofcommonbutdifferentiatedresponsibilities, presentlyhavenosuchcommitmentsthoughitisrecognizedthatemissionsfromdeveloping countrieswillgrow. TheCleanDevelopmentMechanism(CDM)isoneofseveralmechanismscreatedintheKP thatenablesPartiestocooperatewitheachothertoreduceemissions.Itistheonlymechanism dcilriemcatteedcshpaencgifei.caTlhlyeaptudrepvoesleospionfgtchoeunCtDriMes,atrhcetPoaratssiiesstlteahsotsaeblPaerttoieasdanpottthoaavdivnegrsQeEeLffReCctssoinf achievingsustainabledevelopment,andatthesamelimetoassistdevelopedcountryPartiesin achievingtheirQELRCs. Osenqeueascttriavtiitoynm—enrteitoanineidngasinmetehteinggeotshpehoebrjeecctairvebsonofthtahtewCoDuMl,doFtChCerCwiasnedeCscCaDpeisinctaorbtohne atmosphere.Carbonsequestrationcanoccurinseveralsites:biomass,forests,wetlands,geologic fonnationsandsoils,amongothers.Article2.1oftheKPrecognizesthatcarbonsequestration iAsdadintaipopnraolplryi,aAtretoipclteio3n.3foorfPtahretiKesPtpoeursmeitinsmneeettaicncgotuhnetiirndgomoefsdtiireccotbhliugmaatinonisntdoucreedduacfefoermeisstsaitoinosn., deforestationandreforestationactivitiesinassessingadevelopedcountryParty’semissions. Copyrightedmaterial viii Article3.4saysthattheConferenceofParties(COP)willdecide“whatadditionalhuman- inducedactivitiesrelatedtochangesingreenhousegasemissionsbysourcesandremovals,by sinksintheagriculturalsoilsandland-usecategoriesshallbeapplicable”.Thisdecisionwas reachedbecausetheuncertaintiesregardingmeasurementofcarbonflu.xes-particularlyin soils-werethentoo^eatandhadtoberesolved. Nevertheless,ithasbecomewellrecognizedthatcarbonsequestrationisaviableoptionfor capturingcarbonundertheProtocol.Forestsastheymaturecantakeupcarbonandagrass coverwilladdtotheforest'seffectivenessattakingupcarbon.Lai(1997)estimatesthatthe ptoottaelntaimaolufnotrsoofilancnaurablonatsmeoqsupehsterraitcioinncmreaaysebeinaCsOh.igchonacsen1t.r4aPtgioCn/.yrThoercaabrobuotn4f0erpteirlcizeanttioonfatnhde wateruseefficiencyphenomenasuggestthattheappropriatechoiceofcropscoupledwith aupnpdreorprtihaetCeDlaMndismcaunrargenetmleynutndweilrlrleevaidewtoanidncwirlelasbeeddceacribdoendraetttehnetiuonp.coCmairnbgonCOsPeq.uestration TheCCDhasafundingmechanism,theGlobalMechanism(GM).whichfacilitates,butdoes nPaorttiitesseltfoptrhoevCidCe,Dfaurneduirnggefdotroecffooorrtdsitnoatperedvievnetrsleapnrdojdeecgtraacdtaitviiotinesa,nadctdievsietriteisfitchaatticono.mpFruerhtheenrd, thevariousinfluencesaffectinglanddegradation,desertificationandeffectivelanduse. TheFCCCsfundingmechanismistheGlobalEnvironmentFacility(GEF)and,unliketheGM, theGEFisauthorizedtoprovidefunds.TheGEFhasfundedbothprojectsthathavehadan effectonremedyinglanddegradationandActivitiesImplementedJointly(AIJ)thataddressed carbonsequestrationinforests.TheGEF’sScientificandTechnicalAdvisoryPanel(STAP) hasendorsedanapproachtosequesteringcarboninanefforttorehabilitatedegradedlandand encouragingafforestation. Withinthisconte.\t,theFoodandAgricultureOrganization(FAO)andtheInternationalFundfor AgriculturalDevelopment(IFAD),bothcarryingadministrativeresponsibilitiesundertheCCD, havejointlyembarkedonaprogrammetoalleviatepovertyandincreasefoodsecurity.The CentralAmericanEnvironmentandDevelopmentCommission(CCAD)requestedFAO assistanceinpreparingaCarbonSequestrationprogrammefortheCentralAmericanregion.At aconsultationin1999,FAO/IFADproposedtwooptionsforreducingemissionsthrough agriculturalprojects.First,increasethesequestrationpotentialofforestsandotherlandtypesin tphheotososiylntahnesdiss.ecFounndd,incgapitsunreeedaetdmotospcharerryicoutcatrhbeosengtoharlsouagnhdtihnecrCeDasMedprveesgeenttastiaonnopcpoovretrunaintdy forobtainingnecessaryfunds.Flowever,thedifficultyremainswithmeasuringcarbonexchange onaregionalizedscale. Onemethodofaddressingthisdifficultyisthroughthesocio-economiccomponentofsustainable development.Thereisaneedtoalleviatepovertynotonlyforitsownsakebutbecauseit contributestoenvironmentaldegradationandfurtherexacerbatestheeffectsofpoverty. NteheveCrtDheMlesmsu,stthearcehiiesvaenraeddduicttiioonnalsitiynreemqiusisrieomnesntthtahtatarmeuasdtdibteiomneatl:taocaerntyiftiheadtpwroojuelcdtuoncdceurr wtspohiuiabtltlhicohcuaatrssbetbochetneeopsnrreocfqjruueinectsdti.ticrinFzagoetrdti.oopnraSodtujidnelrldce,tesstrshoteffhoGtehoMiCdsDsnseMahct.ouururileTtdhtyhheaeanGGvdeEMlaFanwnpidorlplodpveloigirdrkteaeusldnyaiitnhticayorvnteeomietbfnortthiwaenolgCrftkOuongPtdehitarnhpogep,urgrahponrvtiaehvpseapturCesoDeaancoMhdf which“shairhelptoarrangefundingofcertifiedprojectactivities. Copyrightedmaterial 0 Carbonsequestrationoptionsunderthedeanderelopmenimechanism ix TheUnitedStates,thecountrv'Partywiththelargestshareofgreenhousegasemissions,is generallyinfavorofexpandingitsopportunitiesforcooperationwithothercountryPartiesin ocrodnecrertoneadpptlhyatthaecreerstuilltlcidngermeidsuscitoinonrsetdoucittsioonw(nCcEoRm)miutnmdeenrltsh.eDCevDeMlopwiilnlgbceouinnttreyrcPhaartnigeesabalree withemissionreductionunits(ERU),thusreducingthepoolthatmightbeavailableunderthe CfuDnMdi.ngAlnsoot,bdeedviemlionpiisnhgedcoausntarcyonPasneiqcusenacrecocfonCcDerMnepdrowjietcths.equityandthatothersourcesof Asecond,thouglimorelimitedfund,isthePrototypeCarbonFund(PCF)establishedthrough tpheercWeonrtlodfBtahnekf.unTdT'isisafsusentdswmilalyfibneanicneveesmtiesdsiinonlarnedduucsteiopnropjreocjtesc.ts;however,nomorethan1 Inconclusion,itisgenerallyrecognizedthatcarbon.sequestrationiseffectiveinreducingemissions ofgreenhousegastotheatmosphere.TheKyotoProtocolencouragesitsincreasedoveralluse bydevelopedcountry'Partiesinmeetingtheircommitments.'I'heKPlimitsitsuseintheforestry sleacntdorm,aanlatgheoumgehntthaernediasgproitcuelnttuiraallfoprrarcetidcuecsi.ngLiemmiitsastiioonnsstuondtehreathtemoCsDphMeraerethlraoruggehbeicmapursoeveodf theproblemswithmeasuringcarbonfluxesonaregionalizedscale.Ontheotherhand,the tUhneitKePdoSntadteesveSleonpaitnegucnoaunniUmyouPsalrytipeasscsoemdmiatntoinn-gbitondeimnigssrieosonlruetdiuocntcioonnsd.itIitoinsianlgsoitesxappepcrtoevdatlhoatf emissionsfromdevelopingcountryPartieswillgrow.Yetmanyofthemdonothavethefunds necessarytoreducelanddegradation,fertilitydeclineandfoodinsecurity;theCDMcouldbea win-winsolution. Copyrightedmaterial Carbonsequestrationoptionsunderthecleandevelopmentmechanism 1 I. Imrodktion Effortstoeffecttheappropriatebalanceofgreenhousegasesintheatmosphereinvolvethe globalcommons,ownedbynoone,relieduponbyall,butfoundbyabalanceoftheevidenceto havebeenabusedtothedetrimentofmany,therebycreatingutineeessaryinsecurityforthose leastabletoadapt.Fromtheperspectiveofseekingremediesforlanddegradation,desertification andfoodinsecuritythispaperexaminescarbonsequestrationoptionsresultingpotentiallyfrom theKyotoProtocolanditsCleanDevelopmentMechanism.Theunifyingelementiscarbon,the unifyingthemeismanagement.Thereisgeneralconsensusthatcarbonsequestrationinsoilsis afeasibleoption;itsmeasurementonthelocalscaleisthedifficulty,itremainswiththewillof thePartiesastowhencarbonsequestrationinsoilswillbeapplicableundertheClean DevelopmentMechanism.Thepaperendsbye.xaminingfundingoptionsthatcurrentlyarc availableormaybecomeavailableasaresultofafully implementedCleanDevelopment Mechanism, II. Tilt:IJNtTEDNationsConventiontoCombatDesertieicationanditsLinicagetothe United.N.vitonsFrameworkConventiononClimateChange AttheUnitedNationsConferenceonEnvironmentandDevelopment(“UNCED"),the participantsagreedtopursuenegotiationstOAsardaconventiontocombatdesertification.Tavo yearslatertheUnitedNationsConventiontoCombatDesertification("CCD”)wasadopted andon17February2000had162Parties,'Itsobjectiveisto: combatdesertificationandmitigatetheeft'ectsofdroughtincountriesexperiencing seriousdroughtand.'ordesertification,particularlyinAfrica,througheffective actionatalllevels,supportedbyinternationaleooperationandpartnership arrangements,intheframeAvorkofanintegratedapproachAvhichisconsistentwithAgenda 21.AvithaAiewtoachievingsustainabledevelopmentinaffectedareas. 2,AchievingthisobjectiveAvillinvolvelong-termintegratedstrategiesthatfocus simultaneously,inaffectedareas,onimprovedproductivityofland,andtherehabilitation, conscrvationandsustainablemanagementoflandandwaterresources,leadingtoimproved livingconditions,inpailicuktratthecommunitylevel.' throIutgishtihtesdienftiengirtaitoinosn.alTchaepamceitaynionfgthoefCdeCsDerttihfaitciastoiofniminpotrhteaCncCeD,aisca"plaacnidtdyebgertatdeartuinodneirnsatroiodd, semi-aridanddrysub-humidareasresultingfromvariousfactors,includingclimaticvariations andhumanactivitiesj.J"' "Combattingdesertification”includesactivitieswhicharepartoftheintegrated developmentoflandinarid,semi-aridanddrysub-humidareasforsustainable developmentwhichareaimedat:(i)preventionand/orreductionofland degradation:(ii)rehabilitationofpartlydegradedland;and(iii)reclamationof desertifiedland.'' 1 3wNwa4wt.iIuo.nIn.cs.cMCd.o.nc1hv3/e2rn8atti(io1rn9/9mt4to)iC;foiacmdabloaiptotneDsde.she1lr7mt.iJfuaincceacteis1os9n9e4(d;"ICeACnptDrei"rleord2,0i0wn0ht.eonf(oHerevcriedeei2nnt6a,ftD“eeCrocanelvmlebcniettriaotin1o9"n9)s6w.tiolltShereeefUehntriteptn:ec/de/ itsspecificarticlesandparagraphs.) 2Article2,CCD. 3Article1(a).CCD. 4 Article1(b),CCD. 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