ALBANIAALBANIACommunity – Based Carbon SequestrationCommunity – Based Carbon Sequestration

. . .

GOVERNMENT OF ALBANIA Ministry of ENVIRONMENT FOREST AND WATER ADMINISTRATION

Natural Resource Development Project

THE WORLD BANK

Prepared by: Dr.N.Collaku, H.Cani, P.Prenga, Gj.Fierza, H.Kola

Presented by Haki Kola, Moldavia 2006

Table of Contents

1.Project Description

2.Project benefits

3.Project management and

4. Institutional arrangements

Land degradation has been identified as a major issue for the country, mainly due to uncontrolled grazing

Concerned communities have indicated that they are keen to reverse this trend if some incentives are made available

This could be achieved if direct payments form carbon credits would be made to local communities in exchange for carbon sequestration

Albanian Context

Albanian experience

After 2004

Before 1996…….

Degradation can be stopped through grazing control and avoid human negative impact

The BioCarbon Fund (managed by the World

Bank) has expressed interest in purchasing

emission reductions from Albania, resulting

from a proposed afforestation/reforestation Pilot

carbon project which will be included in the

NRDP.

Pilot Carbon Project

Activities Planned under NRDP

• Undertake a pilot carbon project through afforestation and reforestation of degraded land

• This will be done through setting aside and protecting land to make natural re-growth possible

Carbon sequestration project

5. Report regularly to the BioCarbon Fund the state of the afforestation and to obtain, upon the approval of the report by the Fund, the carbon payments.

1. Select the areas eligible under the CDM

2. Identify exactly the areas to be reforested-Baseline study and carbon estimation

3. The BioCarbon Fund will enter an agreement with the GOA to purchase the carbon

4. Undertake the reforestation activities on the lands identified.

5 Regions

KukesShkoderDibraElbasanKorce

Districts 10Communes 24Villages 107N of Plots 200Av_area 30 ha

Total project area: 6050 ha

Region District CommuneNo. Of Villages

Ha per commune

DIBER Bulqize Ostren 2 105DIBER Bulqize Trebisht 3 63.7DIBER Bulqize Zerqan 3 80DIBER Diber Maqellare 9 365DIBER Diber Melan 8 434DIBER Diber Sllove 8 319DIBER Diber Tomin 10 280DIBER Mat B. Klos 6 1079DIBER Mat Ulez 3 383ELBASAN Elbasan Gjinar 6 282ELBASAN Elbasan Labinot Mal 2 127.8ELBASAN Elbasan Paper 4 311.3ELBASAN Elbasan Shushice 1 147.5ELBASAN Gramsh Pishaj 5 247.5ELBASAN Librazhd Polis 2 170KORCE Kolonje Barmash 3 265KUKES Has Golaj 1 219.5KUKES Kukes Bushtrice 5 260KUKES Kukes Caje 3 167KUKES Kukes Shishtavec 4 147.5SHKODER Puke Qa-Mali 2 88.6SHKODER Puke Qelez 9 175.3SHKODER Puke Qerret 5 195SHKODER Puke Rrape 3 138.75

Carbon sequestered by the project

Estimate of Carbon Sequestered (tC)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000Soil Carbon

Living Biomass

ERPA AGREEMENT YEAR PERIOD ANNUAL AMOUNT OF

CONTRACT ERSCUMULATIVE AMOUNT OF

CONTRACT ERSREMAINDER ERS TO

BE SET ASIDE

1 2006 0 0 514

2 2007 5,137 5,137 1,280

3 2008 23,425 28,562 2,603

4 2009 22,876 51,438 2,542

5 2010 22,333 73,771 2,482

6 2011 26,561 100,332 2,951

7 2012 26,115 126,447 2,902

8 2013 21,781 148,228 2,420

9 2014 21,273 169,501 2,364

10 2015 20,775 190,276 2,308

11 2016 20,283 210,559 2,254

12 2017 19,801 230,360 2,200

Benefits

Creation of high forest which is of more benefit than shrub lands or bare land;

Provision of employment to undertake necessary silvicultural activities (within NRDP);

Steady and guaranteed income from the sale of carbon.

Carbon monitoring process and verification

Selected species

Area ha for afforestation for each year Selected species

1 2 3 4 5 Total USD/ha

Acer sp. 0,0 49,0 37,0 0,0 0,0 86,0 233 Castanea sativa 0,0 279,0 280,0 0,0 0,0 559,0 233 Cerasus avium 0,0 15,0 20,4 0,0 0,0 35,4 233 Fagus sylvatica 0,0 0,0 3,0 0,0 0,0 3,0 233 Fraxinus excelsior 0,0 0,0 10,0 0,0 0,0 10,0 233 Juglans regia 0,0 16,0 42,0 0,0 0,0 58,0 233 Quercus sp. 0,0 318,0 364,0 0,0 0,0 682,0 233 Betula verrucosa 198,0 186,0 60,0 0,0 0,0 447,0 289 Pinus sp. 0,0 176,0 183,0 0,0 0,0 359,0 300 Populus canadensis 0,0 62,0 66,0 0,0 0,0 128,0 228 Robinia pseudoacacia 467,0 432,0 18,0 0,0 0,0 917,0 273 665,0 1533,0 1083,4 0,0 0,0 3281,4

Main issues:• Who does own the carbon sequestration

rights of this project?

• Who will manage the project?

• Who will receive the payments made from selling carbon sequestration rights?

• How the World Bank will pay the money?

• How the local villages can benefit form the carbon payments?

 

Who does own the carbon sequestration rights of this project?

 

The state owns the tradeable rights in sequestered carbon because it owns the sequestered carbon as part of the tree.

 

Who will manage the project?

The Carbon Sequestration project is based on Forest and Pasture User Associations (FPUAs).

An FPUA will make an agreement with a commune to use a part of the communal forest land under the management of the commune for the purposes of the project

FPUAs will be responsible for the planting and tending of the trees

FPUAs will be the recipients of the payments for sequestered carbon received from the World Bank.

1. The state would contract to sell those rights – carbon

credits – to the World Bank;

2. the World Bank would pay the price for the carbon

credits into the bank account which will be directly under

control and management of the FPUAs involved in the

project.

3. This can be done if the selected 24 FPUAs create an

association – a Communal Forests Users Carbon

Association (CFCUA) – with a bank account.

How will the money be transferred to the FPUAs?

FUA FUA FUA FUA FUA FUA FUA

VillageVillageVillage

VillageVillageVillage

VillageVillage

VillageVillage

Village

VillageVillage

VillageVillage

VillageVillage

VillageVillage

VillageVillage

Village

VillageVillage

VillageVillage

Carbon Association

BioCFAlbanian

Gov.

33 3 3 3 3

Carbon associationBank account

Carbon associationBank account

2

= Internal administrative arrangement

= Contracts

= Cash flow

Institutional arrangements for carbon payements:Benefit sharing

FUA FUA FUA FUA FUA FUA

Reinvestments Funds

Monitoring Body(DGFP, commune, Private consultant)

4

VerificationDOE5

GovernmentOf Albania

ERPA

BioCF

= Report

Monitoring and reporting system The BioCF will pay the carbon credits upon the delivery of a

report

The payments could be on annual basis or more (can vary between 1 to 5 years)

The payments delivery will depend on the agreement between the GoA and the BioCF

The report will be based on monitoring activities to be carried out on the field

The annual monitoring will be more general and it aims to demostrate the permanence of the afforestation

The every 5 year monitoring will be more accurated and it should be carried out by skilled personnel

Carbon Association

World BankExecutive Board

DFOs, Regional federation FUAs Communes, Private consultants

Albanian GOV(After verification)

site1

Monitoring and data transmission

site 2 site 3 site 4 Site ….

Monitoring

Data and report

Data and report (on annual basis)

Data and report (each 5 year period)

Carbon AssociationSmall organization.

Small staff (one official), paid for out of the monies received by the project from the World Bank.

The official would report quarterly to the management committee of the Association which would consist of one representative of each of the FPUAs involved in the project.

If it were found convenient to do so, the management committee could elect a smaller sub-committee which would meet monthly with the official to discuss the management of the project, monitoring, the funds of the project and any other issues that were being raised by the constituent FPUAs.

It would be better if the Association would be part of the National Association of FPUAs, but always having a separate Bank Account.

This Carbon Association would be responsible for:

Receiving carbon payments from the World Bank and providing a receipt therefore;

Paying sums out for administrative expenses in connection with the project; and to project FPUAs for environmental and social improvement expenditure;

Arranging for the monitoring of project forests for purposes of certifying to the World Bank that the forests are being managed satisfactorily, monies received are being spent properly and carbon is being sequestered and stored in accordance with the terms of the project.

How the local villages can benefit form the carbon payments?

The carbon payments will be transferred from the Carbon Association to each commune in the FPUA account

The amount of carbon payments will depend on the amount of ha of each commune .

The FPUA should produce a management plan for the expenditure of the carbon payments on environmental and social improvements (reinvestment fund) within the villages involved in the project proportionally to the land made available to the project in each village.

The activities implemented in each village shall employ preferably local labor, thus persons in the villages most closely involved in the project shall be the first to be offered employment in and about the project and the project forest, including work on environmental and social improvements.

The FUA should maintain proper accounts of any expenditure of Project payments and will permit the Commune, the DFS and officers of the CFCUA to check on and audit those accounts.

THANK YOU FOR ATTENTION

THANK YOU FOR ATTENTION

. . .

GOVERNMENT OF ALBANIA Ministry of Environment, Forest and Water Administration

Natural Resource Development Project

THE WORLD BANK

The presentation was based on study done by