Sandeep Tripathi & V.R.S.Rawat Biodiversity and Climate Change Division Indian Council of Forestry Research and Education CDM Afforestation and Reforestation Projects Analysis of Barriers The United Nations Framework Convention on Climate Change (UNFCCC) Constituted at Rio Earth Summit in 1992 With an objective to Stabilize GHG concentrations at levels that prevent dangerous anthropogenic interference with the climate system Ensure that economic development proceeds in a sustainable manner and food production is not threatened Kyoto Protocol Adopted in Kyoto (Japan) in 1997, took effect with support of 141 nations without USA and Australia Enforced on 16th February Annex I countries (mostly industrialized) have ratified the treaty and are legally bound to reduce their green house gas emission (GHG) by 5.2% before 2012 Targets set for each nations based on their 1990 level Kyoto Protocol Starts C emission Levels Under UNFCCC % Available Market Based Mechanisms (i) Emission Trading: Allow the developed countries to transfer emissions credits to each other (ii)Joint Implementation (JI): Implemented between two developed (Annex 1) countries. Credits obtained by investing countries are offset by debits to the country hosting the Project (iii)The Clean Development Mechanism (CDM) To assist achieving sustainable development by encouraging investment between Annex I and non-Annex I countries in Projects, in developing countries, that reduce or avoid emission Developed countries will receive credit against their targets for emissions avoided by these Projects Only A & R activities are permitted The Clean Development Mechanism (CDM) Climate Change ICFRE Advisory Role On Policy matters related to LULUCF to the Ministry of Environment and Forests, GOI / State Governments / Regional institutes Member of the National Climate Change Consultative group of the MoEF, Govt. of India National Reporting For GHG emissions in LULUCF for Indias Initial National Communication (NATCOM) to UNFCCC Climate Change ICFRE In recognition of its initiatives on issues of climate change, ICFRE was given Observer Status of UNFCCC at COP 10 at Buenos Aires in 2004 DG ICFRE participated in Meeting of COP / MOP 11 at Montreal, Canada ICFRE is pursuing for accreditation as Designated Operational Entity (DOE) of UNFCCC in Forestry Sector To work as an independent auditor of the Projects Will help in reduction of transaction costs of CDM A&R Projects Beyond Kyoto: EU-INDIA CDM partnership: Promoting Stakeholder Dialogue and Analysis of Barriers to Forestry Mitigation Projects Objective: To create an enabling environment through dissemination of information and to suggest policy reform for implementation of bilateral sink Projects EU SPF Project First International Workshop in Partnership of Joanneum Research of Austria and University of Freiburg, Germany on Facilitating Forestry Mitigation Projects in India: Promoting Stakeholder Dialogue and Capacity Building at ICFRE, Dehra Dun from 15 th 17 th June, It mainly focused on Capacity building of stakeholders for development of CDM Projects Dissemination of Information related to CDM Sink Projects through its websitePublications and FAQs on CDM Sink Projects Free of cost ICFRE Development of CDM A&R Projects in India An ICFRE Publication KNOWS AND HOWS FOR AFFORESTATION & REFORESTATION SINKS PROJECTS IN CDM Second International Workshop at India Habitat Center, New Delhi from 23 rd 24 th January Creation of Special WebsiteBarrier Analysis Report Draft prepared Identification of Barriers in implementation of CDM Projects : Technical/ Market Based/ Institutional/ Investment/ Policy/ Non-availability of database/ Misc. Renewable resource based CDM Projects Barrier Analysis study. Questionnaires were prepared send to: State Forest departments: Leading NGOs: Farmers: Ranking of Barriers CDM A & R Projects in India - Analysis of Barriers Analysis of Barriers. CDM project pipeline: >800 Registered: 268 From India: 83 Requesting registration: 78 A&R (Forestry): Nil ( Only 3 methodologies approved No registration request so far ) Analysis of Barriers. India 30.46% Registration of Project activity by Host Country R-1R-2R-3R-4R-5R-6R-7R-8R-9 Submitted Rejected Revision Approved Approved after revision Status of AR methodology submission AR methodology submission to CDM EB Total of 25 submissions CDM Projects approved by NCDMA As on August 2006 issued Host Country approval to: 239 projects Renewable Energy: 123 (32 biomass); Energy Efficiency: 72 Industrial Process: 28 Municipal Solid Waste 3 Fuel switching: 13 only 4 A/R CDM projects developed in India Regional distribution of CDM A/R Methodologies Submitted AfricaAsiaEuropeLatin America Analysis of Barriers.. CDM A/R Project submission scenario analyzed at: International Level National level Improper understanding and use of CDM A/R modalities and procedures, Not defining land eligibility, Improper selection of baseline scenario and approach, Not proving additionality, Improper addressing of leakages and uncertainties etc. CDM A/R methodologies suffer very high rejection rate mainly because of : CountryFor afforestation and reforestation project activities - Host Party's selected single minimum: Tree crown cover value between 10 and 30 % Land area value between 0,05 and 1 hectare Tree height value between 2 and 5 metres 1Albania Cambodia3015 3China Colombia3015 5Costa Rica3015 6Dem Rep of the Congo3015 7Honduras3015 8India Nicaragua Republic of Moldova Uganda Viet Nam Yemen Country Forest definition for CDM AR projects Barrier Analysis study. Questionnaires were prepared send to: State Forest departments: Leading NGOs: Farmers: Technological Barriers: eligible land area and use of modern tools like remote sensing Lack of high yielding genetic planting material Market-based Barriers: limited and unorganised market, higher transaction cost, Less CER buyers, low rates of CERs Institutional Barriers: Need for indigenous DOEs to cut transaction costs, Weak institutional capabilities of Forest departments inadequate extension activities by the Government Non-availability of database Barriers Baseline Carbon for different land use patterns Eligible land Dada on availability of potential Land Investment Barriers: Awareness for carbon related financing? Physical Barriers: Land Use pattern, Land tenure systems etc. Governmental and Policy Barriers: Implication of CDM definition Views from Forest Department Lack of Database JFM under CDM Linking of local communities The SFDs willingness to support CDM Bottlenecks in CDM forestry Projects Paucity of funds, Non-availability of finance Procedural complexity Institutional barrier and Market based barrier Views of the NGOs Distance between the communities and the implementing agency be bridged Gender issues should be rectified Red tapeism should be minimized Considerable capacity building of all the stakeholders. Early accruing of benefits for the stake-holders Ranking of Barriers Suggested Recommendations Delineation of Potential CDM A/R area deforested before / after 31 Dec historically not forested for past 50 years Forest land with