Case Study from Arkansas: Carbon, Habitat and Water

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A New Currency for Conservation Markets and
Payments for Ecosystem Services from Our Nations
Forests and Farms

• Case Study from Arkansas Carbon, Habitat and
  Water

John Kadyszewski and Annett Pagan Winrock
International Washington DC, May 18, 2005
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Summary

• Arkansas Case Study
• Policy Considerations
• Emerging Sources of Potential Revenue

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Remaining Forest -- 1992
Project Area
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Arkansas Carbon Initiative

• Increase plant and animal biodiverstiy.
• Increase income on farms and in local
  communities.
• Sell carbon offsets to help fund the project.

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Arkansas Carbon Initiative

• Objectives
• Develop a replicable model for using carbon
  offsets to stimulate environmental restoration
  and economic development at the farm and
  community level 
• Develop a model for the sale, registration, and
  verification of carbon offsets at the state and
  national level 
• Develop markets for other environmental assets.

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Arkansas Carbon Initiative

• Key steps
• Prove additionality
• Determine co-benefits
• Get start-up funds
• establish on-farm demonstration sites
• develop carbon monitoring protocols
• Attract buyers of carbon offsets

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Collaborative Structure of Carbon Offset
Projects in Arkansas
RCD Project Coordination, Management Offset
Reporting
Project Funds Industry, Organizations,
Individuals
RCD, NRCS Coordination with farmers
communities
Winrock Planning, training and carbon measurements
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Projects Carbon Equity Fund

• 100,000 from the WRF
• Have leased C offsets on 190 acres from two
  landowners
• Will hold offsets in reserve
• Leverage funds

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Projects UtiliTree Carbon Company

• Planted hardwoods on about 400 acres of marginal
  cropland
• Will measure C over project lifetime
• Measured C in mature bottomland hardwood forest

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Projects Entergy Carbon Offsets

• Planted hardwoods on about 600 acres of marginal
  croplands
• Will measure C over project lifetime

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Enhance Local Incomes
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Stackable Credits Carbon Water
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Lessons Learned

• Build strong partnerships with local
  organizations
• Establish and maintain credibility with
  investors, communities and landowners
• Measurement
• Legal Framework
• Develop clear mechanisms for transferring carbon
  offsets to investors and carbon revenue to
  landowners.
• GPS and GIS are powerful tools for identifying
  project co-benefits and for registering carbon
  offsets at local and national levels.

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Carbon Measurement
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Entergy
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Quantifying Carbon Markets
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Policy Considerations

• Role of government in creating markets
• Program structure
• Mandatory vs.voluntary
• Targeted vs. non-targeted
• Regional vs. local
• Accountability

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Sources of Potential Revenue

• Carbon markets
• Energy markets for biomass fuels
• Water
• Trading to reduce sediment and nutrients
• Urban demand
• Certified wood
• Reduce fire risk -- hazardous fuel reduction

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Look at Current Land Use Patterns to Determine
Existing Carbon Stocks and Potential for Change
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Potential for Revenues from Energy Markets
Co-Firing Biomass with Coal
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Carbon from Afforestation after 80 Years
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Water Quality
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Regional vs. Local
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Forest Certification
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John Kadyszewski

• [phone], ext 618
• Jkadyszewski_at_winrock.org