VillageBased Forest Restoration: Opportunities and Constraints under CDM Research Findings from Adil - PowerPoint PPT Presentation

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VillageBased Forest Restoration: Opportunities and Constraints under CDM Research Findings from Adil

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Title: VillageBased Forest Restoration: Opportunities and Constraints under CDM Research Findings from Adil


1
Village-Based Forest Restoration Opportunities
and Constraints under CDM Research Findings
from Adilabad District, Andhra Pradesh, India
Emmanuel DSilva New Delhi 28 October
2002 Community Forestry International Supported
by Department of International Affairs Foreign
Trade, Canada
2
1. Presentation Outline
  • Who we are
  • The research team
  • Why the research?
  • The main objectives
  •  
  • Where was research done
  • The choice of Adilabad district
  • How we did it
  • The methodology employed

3
1. Presentation continued
  • Findings
  • Socioeconomic, institutional, ecological
  • Main conclusions
  • Supportive and constraining conditions
  •  
  • Recommendations
  • For consideration of COP8

4
2. The Research Team
  • Multidisciplinary team of national,
    international, local experts
  • Community Forestry International, Santa Barbara,
    California, USA
  • Centre for Ecological Sciences, Bangalore, India
  • Staff of Andhra Pradesh Forest Department and
    Integrated Tribal Development Agency
  • Project funded by Dept of Intl Affairs Foreign
    Trade, Canada
  • Present at COP 8
  • Mark Poffenberger, CFI, USA
  • N.H. Ravindranath Indu Murthy, CES, India
  • Emmanuel DSilva, formerly of World Bank

5
3. Research Motivation
  • Fundamental Question Can Indian villagers work
    through CDM to secure carbon-offset payments
    under terms formulated by various COPs.
  • Also verify claims that CDM could benefit local
    communities
  • Source of additional funds
  • Ensure sustainability
  • Additional soclal and economic benefits
  • Make global concept work locally

6
4. Why Adilabad?
  • Adilabad district
  • Large forest area, extensive degradation
  • Potential for afforestation and reforestation
  • Indigenous, forest-dependent people
  • High poverty level
  • History of revolts
  •  
  • These factors present opportunities and
    challenges to development of CDM in the district

7
5. Research Methodology
  • Follow CDM principles for carbon project
  •  Aware that afforestation and reforestation
    not fully spelled out CDM rules under
    development.
  • 10 steps to developing a CDM project
  • For research purpose, steps 3 to 7 relevant
  • Baselines established
  • Developed both baseline and CDM scenarios
  • Control plots for vegetation baseline analysis
  • Social and economic assessment
  • Local institutions assessed for their ability to
    handle carbon funds and deal with CDM issues

8
6. Findings
  • Social
  • Constraints
  • Social conflicts prevalent in several
    heterogenous communities less among tribals
  • Forest tenure insecurity undermines sustainable
    management
  • Potential
  • Long-term carbon contracts could help local
    communities to obtain greater security

9
6. Findings continued
  • Institutional
  • Constraints
  • Over 1,000 FPCs in early stage of development
    weak in managing forest
  • Lack of empowerment and transparency in financial
    dealings between government and communities has
    limited local capacity
  • Potential
  • CDM could provide impetus to forming federation
    of community groups
  • Emergence of 13,000 of womens thift groups
    offers opportunities for managing carbon funds

10
6. Findings continued
  • Ecological
  • Constraints
  • Difficulty in identifying potential CDM project
    sites because of ambiguity in definitions of
    reforestation, afforestation. Currently, under
    negotiation.
  • Difficulty in getting information on site history
  • Eligibility status of 10-30 crown cover unclear

11
6. Findings continued
  • Ecological
  • Potential 1
  • Over 470,000 hectares of land available for CDM
    project available in Adilabad (67)
  • Potential Area for Community-based CDM forest
    project
  • Cropland for afforestation 34,000 ha
  • Degraded forest with lt10 crown cover 122,000
    ha
  • Degraded forest with 10-30 crown cover 313,000
    ha
  • Potential total 469,000 ha
  • Total forest area 700,000 ha

12
6. Findings continued
  • Ecological
  • Potential 2
  • Carbon sequestration rate fairly good, but covers
    a wide range (1.5 to 9 tons/ha)
  • High (4 -7 tons/ha/yr)
  • Assisted natural regeneration in secondary
    forest
  • Moderate (1.5 3 t/ha/yr)
  • In eucalypt plantations but high in clonals
    (9 tons)
  • Low (lt1 t/ha/yr)
  • In mango orchards on croplands

13
6. Findings continued
  • Economic
  • Constraints
  • Forest-based incomes have declined in past
    decade, but employment support provided under JFM
    project
  • Potential
  • Carbon income could possibly provide 15-30 of
    total income to the poor

14
6. Findings continued
  • Potential Costs Benefits
  • Assumptions
  • 20 villages, 1,000 households, 2,000 ha of forest
    area
  • Average carbon sequestration rate 5 t/ha/yr
  • Potential carbon income at 8/ton
  • Projected transaction implementation cost ()
  • Project ID, baseline 20,000
  • CDM processing 45,000
  • Government processing 15,000
  • Community institutional 30,000
  • Total one-time costs 110,000
  • Annual recurring costs 20,000
  • Total cost (8 years) 270,000

15
6. Findings continued
  • Potential Costs Benefits
  • Assumptions
  • 20 villages, 1,000 households, 2,000 ha of forest
    area
  • Average carbon sequestration rate 5 t/ha/yr
  • Potential carbon income at 8/ton
  • Projected revenue ()
  • Total gross revenue (8 years) 640,000
  • Total cost (8 years) 270,000
  • Total net income 370,000
  • Net household income 46/year
  • (Rs 2,300/yr or 19 of total HH income)

16
7. Conclusions
  • Carbon sequestration
  • Assisted natural regeneration of degraded
    secondary forest offers high sequestration at low
    cost (10/ha)
  • Carbon funds can subsidize forest restoration and
    support long-term sustainability of community
    management

17
7. Conclusions continued
  • Site Fragmentation
  • Organizing FPCs and womens thrift groups into
    federation could provide institutional framework
    to manage carbon funds
  • Multi-village CDM project can allow fragmented
    areas eligible to be bundled for economies of
    scale

18
7. Conclusions continued
  • Transaction costs
  • High transaction costs would undermine the
    financial viability of small, community-based
    carbon projects
  • If CDM procedures are simplified, some of
    transaction costs would fall, assuring
    substantial income flows to communities (15-30)

19
8. Recommendations
  • Need to establish CDM eligibility criteria to
    include areas with 10-30 crown cover.
  • Simplify principles, procedures (under
    discussion) to lower transaction costs and to
    facilitate community participation in CDM.
  • Encourage development of niche markets in
    biodiversity conservation and social development
    to attract premium prices.
  • Explore new ways to assist community groups to
    develop forest carbon projects and assist them to
    find buyers.
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