Key Points in Preparing ARCDM Projects

1
Key Points in Preparing AR-CDM Projects

• Kundan Burnwal

2
Contents

• Project Cycle
• Identification and Project Idea Note
• Land Eligibility
• Project boundary
• Baseline survey
• Approved methodologies
• Forests in India

3

CDM Project Cycle
Steps of the project
Steps of the project cycle
Responsible party involved
Project Design Feasibility Check PCN, PDD

4
Forest Definition

• Forest Definition (General)
• a minimum area of land of 0.05-1.0 hectare
• tree crown cover (or equivalent stocking level)
  of more than 10-30 per cent
• trees with the potential to reach a minimum
  height of 2-5 metres at maturity in situ.
• Indian DNAs Forest Definition
• a minimum area of land of 0.05 Ha
• tree crown cover of more than 15
• trees with the potential to reach a minimum
  height of 2 metres at maturity in situ

5
Identification and PIN

• Land eligibility Non forests since 1990/ No
  forests since last 50 years
• Likely baseline scenario
• Additionality
• Baseline activities and potential leakage
• Potential environmental and social benefits
• Brief project design
• Ex ante estimation of ERs
• Financial Analysis
• Project Idea Note (PIN)

6
CDM-AR-PDD

• The project design document (PDD) is the key
  document involved in the validation and
  registration of a CDM project activity.
• Content of the CDM-AR-PDD is divided into 8
  sections
• Section A - General description of the project
  activity
• Section B - Duration of the project / crediting
  period
• Section C - Application of an approved baseline
  and monitoring methodology
• Section D - Estimation of net removals by sinks
  over the crediting period
• Section E - Monitoring plan
• Section F - Environmental impacts
• Section G - Socio-economic impacts and
• Section H - Stakeholder comments.

7
Attachments to the CDM-AR-PDD
Attachments to the CDM-AR-PDD

• The CDM-AR-PDD must attach
• Annex I - Contact information on participants in
  the project activity
• Annex 2 - Information on public funding
• Annex 3 - Baseline information and
• Annex 4 - Monitoring plan.

• The CDM-AR-PDD must attach
• Annex I - Contact information on participants in
  the project activity
• Annex 2 - Information on public funding
• Annex 3 - Baseline information and
• Annex 4 - Monitoring plan.

• The CDM-AR-PDD must attach
• Annex I - Contact information on participants in
  the project activity
• Annex 2 - Information on public funding
• Annex 3 - Baseline information and
• Annex 4 - Monitoring plan.

8
Land Eligibility- 1

• The eligibility of LULUCF project activities
  under Article 12 of the Kyoto Protocol is limited
  to afforestation and reforestation for the first
  commitment period.
• Afforestation Forestation on land that has not
  been forested for a period of at least 50 years
• Reforestation Forestation on land that was
  forested but that has been converted to
  non-forested land. For the 1st CP, limited to
  lands that did not contain forest on 31 Dec 1989
  onwards.

9
Land Eligibility- 2

• The PP shall demonstrate that the land at the
  moment the project starts does not contain forest
  by providing transparent information that
• Vegetation on the land is below the forest
  thresholds
• All young natural stands and all plantations on
  the land are not expected to reach the minimum
  crown cover and minimum height chosen by the host
  country to define forest
• The land is not temporarily unstocked, as a
  result of human intervention such as harvesting
  or natural causes.

10
Land Eligibility- 3

• Evidence for land eligibility
• Aerial photographs or satellite imagery
  complemented by ground reference data or
• Land use or land cover information from maps or
  digital spatial datasets or
• Ground based surveys (land use or land cover
  information from permits, plans, or information
  from local registers, owners registers, or other
  land registers).

11
Project Boundary-1

• Project boundary geographically delineates the
  A/R project under the control of the Project
  Proponents.
• The A/R CDM project may contain more than one
  discrete area of land.
• At the time the PDD is validated the following
  shall be defined
• Each discrete area of land shall have a unique
  geographical identification.

12
Project Boundary-2

• The unique geographical identification depends
  highly on methodology applied
• GPS project boundary is highly recommended, i.e.,
  Spreadsheet for GPS of each corner of polygon
  land parcels
• The precision of the boundary on images or maps
  depends highly on the resolution of these maps

13
Example of a Project Boundary
14
Baseline Survey 1

• Present environmental conditions
• Climate
• Hydrology
• Soil Characteristics
• vegetation and ecosystems
• rare or endangered species and their habitats,
  including IUCN species

15
Baseline survey-2

• Current vegetation
• Types grass, shrub, spotted living trees
• Crown cover
• Height and DBH

16
Baseline Survey-3

• Current land use and land tenure
• Existing land uses
• legal title to the land, current land tenure,
• Land title State-owned (public), collective
  owned (common) or private
• Legal title for CER and forest products
• List related information for each compartment or
  land parcel

17
Species selection

• Species and varieties selected
• How species/varieties have been selected
• Climate
• Soil and site condition
• Growth rate
• Economic value
• Preference of local communities and entities (by
  interview)
• Preferably native or indigenous species
• No invasive. If alien species will be used,
  demonstrate their no invasive feature

18
Methodologies Available in A/R CDM

• There are two types of methodologies for (A/R)
• Baseline methodology
• Monitoring methodology
• Baseline methodology are the tools used to define
  the changes in carbon stocks in the carbon pools
  within the project boundary that would occur in
  the absence of the project activity.
• Monitoring methodology is the means by which the
  net anthropogenic GHG removals by sinks achieved
  by the A/R project are calculated, taking into
  account any emissions from sources within the
  project boundary.

19
Approved Methodology Small-Scale (1)

• AR-AMS0001 Grasslands or Croplands
• AR-AMS0002 Settlement including
• Transportation infrastructure Land strips along
  streets, country roads, highways, railways,
  waterways, overhead power cables, gas pipelines,
• Human settlements Residential and commercial
  lawns (rural and urban), gardens, golf courses,
  athletic fields, parks.

20
Approved Methodology Small-Scale 2

• AR-AMS0003 Wetland with
• DNA statement that project conform to national
  policies and legislation applicable to wetlands.
  For a Party to Ramsar or other conventions
  applicable to wetlands, a statement from DNA that
  project activities conform to the provisions of
  the convention/s.
• Degraded feature, restricted to
• Degraded intertidal wetlands (e.g. mangroves)
• Undrained peat swamps that are degraded with
  respect to vegetation cover
• Degraded flood plain areas on inorganic soils and
• Seasonally flooded areas on the margin of water
  bodies/reservoirs.

21
Approved Methodology Small-Scale 3

• AR-AMS0004 Agro-forestry
• AR-AMS0005 Implemented on lands having low
  inherent potential to support living biomass
• Sand dunes
• Bare lands
• Contaminated or mine spoils lands
• Highly alkaline or saline soils.

22
Approved Methodology Small-Scale (2)
Carbon Pools
23
Approved Methodology Large Scale (1)

• AR-AM0001 Reforestation of Degraded land
• AR-AM0002 Restoration of degraded lands through
  A/R
• AR-AM0003 A/R of degraded land through tree
  planting, assisted natural regeneration and
  control of animal grazing
• AR-AM0004 A/R of land currently under
  agricultural use
• AR-AM0005 A/R project activities implemented for
  industrial and/or commercial uses
• AR-AM0006 A/R with Trees Supported by Shrubs on
  Degraded Land

24
Approved Methodology Large Scale

• AR-AM0007 A/R of Land Currently Under
  Agricultural or Pastoral Use
• AR-AM0008 A/R on degraded land for sustainable
  wood production
• AR-AM0009 A/R on degraded land allowing for
  silvopastoral activities
• AR-AM00010 A/R project activities implemented on
  unmanaged grassland in reserve/protected

25
Approved Methodology-Large Scale (3)
26
Approved Methodology-Large Scale
Carbon Pools
27
Approved Methodology-Large Scale
Emission Sources
28
Approved Methodology-Large Scale (8)
Leakage
29
Some Important Issues to be dealt with

• Additionality is the requirement that the GHG
  removals after the implementation of the A/R
  project activity are greater than those that
  would have occurred in the baseline scenario (the
  most plausible alternative scenario to the
  implementation of the A/R project activity).
• Baseline Change in Carbon Stocks within the
  project boundary in the absence of the project.
• Project Emissions Emissions attributed to the
  project activity occurring within the project
  boundary.
• Leakage emissions attributed to the project
  activity occurring outside the project boundary.
  Example grazing

30
Transaction cost of acquiring CERs

• Consultants for developing CDM Projects
• Hiring of DOE for Validation and Verification
• Registration of project with CDM EB
• USD 0.10 per expected average annual net GHG
  removals by sinks for the first 15,000 t CO2 e
• USD 0.20 per expected average annual net GHG
  removals by sinks for any amount in excess of
  15,000 t CO2 e
• The maximum registration fee payable is capped at
  USD 350,000
• No registration fee has to be paid for CDM A/R
  project activities with expected average annual
  net GHG removals by sinks over the crediting
  period below 15,000 t CO2-equivalent
• Apart from the CDM cost, 2 of the CERs will be
  deducted towards adaptation fund by CDM EB

31
Reimbursement of Registration Fee

• If an activity is not registered, any
  registration fee above USD 30,000 shall be
  reimbursed
• In cases where project activities have been
  withdrawn voluntarily by the PP prior to
  registration the registration fee is
  non-refundable and that in the case of
  resubmission a new registration fee will have to
  be paid.
• In cases where a DOE, or a PP via a DOE, requests
  that a request for registration be withdrawn
  prior to the publication of this request the full
  amount of the registration fee will be reimbursed
  

32
Forestrys Stand in CDM in India

• Registered projects in India 396
• No forestry project has got registered till date
  from India.
• Host Country Approved projects 1,198
• Of all HC Approved projects only 9 projects are
  from forestry. That is only 0.75 of HCA
  projects belongs to forestry.

33
Forests in India
34
Forest Cover Map of India
35
Forest Cover of the Country-2005
36
Forest Cover Map of Jammu Kashmir, 2004
China
Pakistan
China
VDF 2102 km2 MDF 8395 km2 OF 10770
km2 Scrub Non Forest Water Bodies District
Boundaries
Himachal
Punjab
37
Potential States For Expanding Forest /Trees
Outside
38
Thank You
Kundan Burnwal CDM Technical Expert
GTZ S-35,First Floor, Panchsheel Park, New
Delhi-110017 Tel [phone] Email
kundan_at_cdmindia.com