September 30, 2009
It is the key to saving remaining natural forests, top NGOs insist.
Investors around the world have called for a strong commitment and funding for a carbon market, which they say has huge potential to cut emissions and save forests, according to a global survey revealed in Bangkok yesterday.
"If strong policies are put in place to ensure real reductions in emissions and real benefits to forest communities, investors can play a key role in supporting Reduced Emissions from Deforestation and Degradation (REDD)," James Leape said. Leape, head of the World Wildlife Fund (WWF), presented a survey by the Brunswick Group on behalf of WWF at a press conference at the UN Framework Convention on Climate Change (UNFCC) in Bangkok.
The meeting has drawn officials from at least 20 United Nation agencies, hundreds of nongovernment and civil society observers for climate change negotiations ahead of the UN Climate Change Conference in Copenhagen in December.By that time, 192 countries hope to agree on the terms for tackling climate change beyond 2010, after the Kyoto Protocol expires in 2012."The investment community is looking to December's UN Climate Change in Copenhagen to add substance to REDD as the overarching policy framework to combat forest related emissions," Leape said.The survey included interviews with 25 senior institutional money, sellside analysts and specialist sustainability investors in Europe, the US and Asia Pacific. The survey of investors with about US$7 trillion in assets under management found significant support for an expanded carbon market mechanism which would "address" the estimated 20 per cent of global carbon emissions caused by deforestation and forest degradation. It found investors had a high degree of knowledge about REDD and saw big potential in a future carbon market. However, they were also unlikely to invest in the market without clear political commitment, funding, and ontheground implementation by key nations.
The survey also found investors were looking for initial public financing, viable policy frameworks, and more certainty from both international agreements and national legislation, before private funds could be mobilised. Investors believed that a compliฌance market in forest carbon would provide powerful incentives to reverse deforestation in forest countries.
More than a third expected a forest carbon market would evolve from a voluntary to a compliance market over the next five to 15 years if certain conditions for a marketbased approach could be met. This would require action from governments, including public funding, to lay the foundation for the market and support efforts by forest nations to build legal and technical capacity for REDD. Meanwhile, leading forest and climate experts from the Ecosystems Climate Alliance (ECA) warned that talks on the forest component of REDD risked failing to either reduce emissions or to prevent deforestation.
"The rules for REDD are being set now," said Bill Barclay of Rainforest Action Network, "but forest protection is being ceded to carbon cowboys and corporate greed. If we don't act now to prioritise the protection of intact natural forests including their soils, we will lose a unique opportunity to end the deforestation and degradation that is contributing to climate change.
"The international community committed to address deforestation in the 2007 Bali Action Plan, pledging to create: "Policy approaches and positive incentives on issues relating to reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries." Negotiations to date, however, have failed to deliver on that mandate. Hopes of protecting forests through the UNFCCC process required renewed focus on protecting intact natural forests by avoiding deforestation and forest degradation, and progress had to be achieved here. ECA called on all countries to change the definition of "forest" used in the climate talks, saying the UNFCCC term did not distinguish between natural forests and plantations.
Unless this was changed, measures to introduce REDD into a future climate agreement could have the perverse result of encouraging the conversion or destruction of the world's remaining natural forests.A subtle change of language from the original Bali mandate now framed the entire scope of REDDplus within the context of promoting "sustainฌable forest management," that in practice was closely associated with the logging industry and destructive activities such as industrialscale logฌging of intact natural forests.
"Sustainable forest management is industry speak for logging," said Sean Cadman of The Wilderness Society. "Forests that have been logged or degraded have lower carbon stocks, less biodiversity and less resilience than primary forests. Tree plantations are even worse.
"REDD provides the opportunity to break the cycle of industrials cale deforestation by placing economic value on the role of standing forests in climate change mitigation."Belowground carbon stocks (organic soil carbon) in forests also had to be accounted for to prevent plantations on drained peatlands from receiving credits for what would, in fact, be ongoing emissions. Good governance and comprehensive systems for monitoring REDD, including independent "ontheground" monitoring, would be vital to effective implementation of REDD. Since an estimated 1.6 billion people in developing countries are dependent on forests for their basic needs and livelihoods, REDD had to benefit local communities and indigenous peoples, and respect their rights/ tenure. Agricultural commodities, biofuels, and wood and paper products - often produced in illegal or unsustainable ways - were killing forests around the world.
"Without policies and measures to reduce market demand for illegal or unsustainable commodities, countries around the world will be consuming in ways that undermine the same REDD activities their dollars are going to support," said Andrea Johnson of the Environmental Investigation Agency.
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September 30, 2009 10:57 pm (Thai local time)www.nationmultimedia.com
Wednesday, September 30, 2009
Monday, September 28, 2009
China’s first Voluntary Carbon Standard announced at US - China Low Carbon
PRESS RELEASE: 23 September 2009 12.01am (EST), 6.01am (CET)
NYSE’s Bluenext and Chinese-Beijing Environmental Exchange (CBEEX) further strengthen
global partnership
NYSE’s Bluenext and CBEEX announce the development of China’s first Voluntary Standard at the first US-China Low Carbon Conference in New York today. Not only does this strengthen the new partnership between CBEEX and Bluenext first announced earlier this summer, but also marks the first step towards a Voluntary system to limit emissions domestically in China.
At the US-China Low Carbon Conference Serge Harry, Chairman and CEO of NYSE’s Bluenext
and Xiong Yang, Chairman of CBEEEX made the announcement to a multi-national audience of
Chinese and US CEOs from the financial, industrial and carbon worlds. The new standard is touted to become the recognised international and domestic carbon standard for China. Details about the design and methodologies will come out in full at the official launch in Copenhagen in December. But experts suggest that the Standard will make a significant impact on the fledgling Chinese voluntary carbon market.
The standard which will rely on existing proven methodologies, will cover, among other sectors,
agriculture and forestry and large scale carbon offset projects. The standard is being developed nowso the market might quickly respond to a post -COP 15 world.
Witnessing the announcement today was Duncan Niederauer CEO of NYSE Euronext, James
Rogers, Chairman and CEO of Duke Energy, Wang Yusou Chairman of the Board of ENN Group
and David Yarnold Executive Director of EDF. They were joined by over a 150 leading figures who have an interest in the Low Carbon technologies and finance.
CONTACT:
Keiron Allen
Marketing and Communications Director
Tel: +33 1 73 03 73 55
M: + 33 6 14 40 90 42
E-mail: k.allen@bluenext.eu
About BlueNext
BlueNext is the international environmental exchange with NYSE Euronext holding a 60% interest while the remaining 40% is held by Caisse des Dépôts. BlueNext today operates the leading EUA spot exchange in Europe from trading to payment and delivery in real time. BlueNext aims to be a world leader for trading in environment-related instruments and will be pursuing this goal with the international deployment of a comprehensive range of products and services.
NYSE’s Bluenext and Chinese-Beijing Environmental Exchange (CBEEX) further strengthen
global partnership
NYSE’s Bluenext and CBEEX announce the development of China’s first Voluntary Standard at the first US-China Low Carbon Conference in New York today. Not only does this strengthen the new partnership between CBEEX and Bluenext first announced earlier this summer, but also marks the first step towards a Voluntary system to limit emissions domestically in China.
At the US-China Low Carbon Conference Serge Harry, Chairman and CEO of NYSE’s Bluenext
and Xiong Yang, Chairman of CBEEEX made the announcement to a multi-national audience of
Chinese and US CEOs from the financial, industrial and carbon worlds. The new standard is touted to become the recognised international and domestic carbon standard for China. Details about the design and methodologies will come out in full at the official launch in Copenhagen in December. But experts suggest that the Standard will make a significant impact on the fledgling Chinese voluntary carbon market.
The standard which will rely on existing proven methodologies, will cover, among other sectors,
agriculture and forestry and large scale carbon offset projects. The standard is being developed nowso the market might quickly respond to a post -COP 15 world.
Witnessing the announcement today was Duncan Niederauer CEO of NYSE Euronext, James
Rogers, Chairman and CEO of Duke Energy, Wang Yusou Chairman of the Board of ENN Group
and David Yarnold Executive Director of EDF. They were joined by over a 150 leading figures who have an interest in the Low Carbon technologies and finance.
CONTACT:
Keiron Allen
Marketing and Communications Director
Tel: +33 1 73 03 73 55
M: + 33 6 14 40 90 42
E-mail: k.allen@bluenext.eu
About BlueNext
BlueNext is the international environmental exchange with NYSE Euronext holding a 60% interest while the remaining 40% is held by Caisse des Dépôts. BlueNext today operates the leading EUA spot exchange in Europe from trading to payment and delivery in real time. BlueNext aims to be a world leader for trading in environment-related instruments and will be pursuing this goal with the international deployment of a comprehensive range of products and services.
Sunday, September 27, 2009
A Tree Planting Leader - Tree Canada Announces Its First Carbon Protocol
(Nanaimo, B.C. - September 23, 2009) Tree Canada released its Forest & Urban Tree Carbon Project Protocol, during the Annual General Meeting of the Canadian Institute of Forestry in Nanaimo B.C. today.
The protocol describes how Tree Canada will account for the greenhouse gas offset value of trees. More individuals, companies and organizations are interested in tree projects as a way to offset their carbon emissions. A technical document, this protocol will answer their questions about third party verification and how it meets Kyoto Protocol standards of additionality, permanence and determining baseline scenarios.
It also provides examples of Tree Canada's history in providing successful tree projects across Canada in urban and rural landscapes. The protocol was authored by expert associates of Tree Canada and peer reviewed by four recognized carbon experts across Canada.
"The carbon offset market is becoming more sophisticated and this protocol is a response to this evolution," explained Michael Rosen, Tree Canada President. "This protocol explains how Tree Canada's forestry projects can be used as a legitimate carbon offset option and furthers Tree Canada's leadership role in the long term maintenance of our trees and forests."
To read the protocol, please visit the website at www.treecanada.ca.
Tree Canada is a not-for-profit charitable organization established to encourage Canadians to plant and care for trees in urban and rural environments. A winner of the Canadian Environmental Award (2007), Tree Canada engages Canadian companies, government agencies and individuals to support the planting of trees, the greening of schoolyards, and other efforts to sensitize Canadians to the benefits of planting and maintaining trees. To date, more than 76 million trees have been planted, more than 450 schoolyards have been greened, and Tree Canada has organized 8 national urban forest conferences. More information about Tree Canada is available at www.treecanada.ca.
The protocol describes how Tree Canada will account for the greenhouse gas offset value of trees. More individuals, companies and organizations are interested in tree projects as a way to offset their carbon emissions. A technical document, this protocol will answer their questions about third party verification and how it meets Kyoto Protocol standards of additionality, permanence and determining baseline scenarios.
It also provides examples of Tree Canada's history in providing successful tree projects across Canada in urban and rural landscapes. The protocol was authored by expert associates of Tree Canada and peer reviewed by four recognized carbon experts across Canada.
"The carbon offset market is becoming more sophisticated and this protocol is a response to this evolution," explained Michael Rosen, Tree Canada President. "This protocol explains how Tree Canada's forestry projects can be used as a legitimate carbon offset option and furthers Tree Canada's leadership role in the long term maintenance of our trees and forests."
To read the protocol, please visit the website at www.treecanada.ca.
Tree Canada is a not-for-profit charitable organization established to encourage Canadians to plant and care for trees in urban and rural environments. A winner of the Canadian Environmental Award (2007), Tree Canada engages Canadian companies, government agencies and individuals to support the planting of trees, the greening of schoolyards, and other efforts to sensitize Canadians to the benefits of planting and maintaining trees. To date, more than 76 million trees have been planted, more than 450 schoolyards have been greened, and Tree Canada has organized 8 national urban forest conferences. More information about Tree Canada is available at www.treecanada.ca.
Thursday, September 24, 2009
Forest emissions push CO2 77 per cent higher than BC's official numbers say
By Jens Wieting, Yesterday, TheTyee.ca (excerpts)
World leaders wrapped up their summit in New York, prompting optimistic talk in some high places that the crucial climate change conference in Copenhagen in December might succeed. That's far from certain, of course, but one positive trend is that many countries with large tracts of forests are ramping up proposals about how to reduce emissions from forest loss and degradation. There is even a name for this: REDD (Reducing Emissions from Deforestation and Degradation). The government of Brazil, for example, has pledged to reduce deforestation of the Amazon rainforest by more than 70 per cent by 2018.
Yet B.C. has set no target to reduce massive emissions from our forest land base. Just before B.C. Day, while forest fires across the province were spewing out huge amounts of carbon dioxide, the government released British Columbia's Greenhouse Gas Inventory Report. The report gives a break-down of CO2 emissions by sector -- with a major source tucked away in the "memo" section and not counted at all.
According to the report, total greenhouse gas emissions in British Columbia in 2007 were 67 megatonnes. These mainly originate from the use of fossil fuels (80 per cent) as well as waste (six per cent), agriculture (four per cent) and deforestation (five per cent). So far, all correct. But it's the innocuous-sounding item "emissions from forest land remaining forest land" that hides the real bomb: a whopping 51 megatonnes of CO2. This figure appears only as a "memo item" in the report and is not counted as part of B.C.'s total emissions. B.C.'s carbon emissions would be 77 per cent higher if emissions from forests were included.
Mountain Pine Beetle changed the equation
B.C.'s goal to reduce CO2 emissions by 33 per cent in 2020 compared to 2007 ignores emissions from forest land. New data shows an alarming trend; both B.C.'s and Canada's forests are becoming a source of carbon dioxide rather than a sink because they are releasing more carbon than they sequester annually. The federal government conveniently decided not to include emissions released from forests in the national greenhouse gas inventory. The provincial government followed the same approach. Obviously, this doesn't make emissions from forests go away.
The 2007 data on the emissions and sequestration of our forests in the new provincial report breaks down as follows:
73 megatonnes of CO2 from harvesting
8 megatonnes of CO2 from slash burning
5 megatonnes of CO2 from wildfires
34 megatonnes sequestered by BC's forests
The 34 megatonnes of CO2 sequestered by our forests buffer, to a certain extent, the overall forest-related emissions (from logging, wildfires and slash burning). However, the emissions from decay of dead organic matter have increased dramatically since 2002 due to the Mountain Pine Beetle outbreak. They are the main reason why B.C.'s forests are no longer a sink for carbon but have become a source.
The proper management of forest affected by the Mountain Pine Beetle is of high priority if we are to mitigate further loss of carbon storage in the affected areas. At the same time, ongoing emissions from these forests will be somewhat beyond our control for a period of time. Large-scale salvage clearcutting -- for example for bio-energy -- is not a sustainable solution because it will negatively impact natural regeneration and environmental services in many areas. Not all the trees in the affected areas are dead. Healthy trees are growing in the understorey, and even dead trees reduce erosion and flooding and continue to store carbon for a period of time while young trees grow back. Since climate change will bring about more extreme weather events, we have to maintain ecological functions of our forests like flood control and avoid disrupting these further through more clear cuts.
Wood products can be a climate friendly alternative to materials like concrete and steel. They store up to 20 per cent of the carbon removed from the forest after harvesting, some of them long-term. Forestry in the era of climate change has the potential to be a key part of a low-carbon economy providing new jobs, but we have to take a close look where it is done, how it is done, and how much gets logged and left behind.
B.C. must set targets and create a plan to reduce emissions from logging in the same way it did with emissions from fossil fuels. In order to avoid catastrophic climate change, it is mandatory that B.C.'s forests become carbon neutral as soon as possible. The province should reduce annual CO2 emissions from forest land (86 megatonnes in 2007) by at least 60 per cent (equivalent to the net emissions of 2007) by 2020. The remaining emissions would then be in the same range as current sequestration (34 megatonnes). The plan should also include action to increase sequestration of our forests, but it is addressing logging that promises immediate results. As with most things in life, there is no cast iron guarantee. But this would be a respectable start.
Jens Wieting is coastal forest campaigner with Sierra Club B.C.
World leaders wrapped up their summit in New York, prompting optimistic talk in some high places that the crucial climate change conference in Copenhagen in December might succeed. That's far from certain, of course, but one positive trend is that many countries with large tracts of forests are ramping up proposals about how to reduce emissions from forest loss and degradation. There is even a name for this: REDD (Reducing Emissions from Deforestation and Degradation). The government of Brazil, for example, has pledged to reduce deforestation of the Amazon rainforest by more than 70 per cent by 2018.
Yet B.C. has set no target to reduce massive emissions from our forest land base. Just before B.C. Day, while forest fires across the province were spewing out huge amounts of carbon dioxide, the government released British Columbia's Greenhouse Gas Inventory Report. The report gives a break-down of CO2 emissions by sector -- with a major source tucked away in the "memo" section and not counted at all.
According to the report, total greenhouse gas emissions in British Columbia in 2007 were 67 megatonnes. These mainly originate from the use of fossil fuels (80 per cent) as well as waste (six per cent), agriculture (four per cent) and deforestation (five per cent). So far, all correct. But it's the innocuous-sounding item "emissions from forest land remaining forest land" that hides the real bomb: a whopping 51 megatonnes of CO2. This figure appears only as a "memo item" in the report and is not counted as part of B.C.'s total emissions. B.C.'s carbon emissions would be 77 per cent higher if emissions from forests were included.
Mountain Pine Beetle changed the equation
B.C.'s goal to reduce CO2 emissions by 33 per cent in 2020 compared to 2007 ignores emissions from forest land. New data shows an alarming trend; both B.C.'s and Canada's forests are becoming a source of carbon dioxide rather than a sink because they are releasing more carbon than they sequester annually. The federal government conveniently decided not to include emissions released from forests in the national greenhouse gas inventory. The provincial government followed the same approach. Obviously, this doesn't make emissions from forests go away.
The 2007 data on the emissions and sequestration of our forests in the new provincial report breaks down as follows:
73 megatonnes of CO2 from harvesting
8 megatonnes of CO2 from slash burning
5 megatonnes of CO2 from wildfires
34 megatonnes sequestered by BC's forests
The 34 megatonnes of CO2 sequestered by our forests buffer, to a certain extent, the overall forest-related emissions (from logging, wildfires and slash burning). However, the emissions from decay of dead organic matter have increased dramatically since 2002 due to the Mountain Pine Beetle outbreak. They are the main reason why B.C.'s forests are no longer a sink for carbon but have become a source.
The proper management of forest affected by the Mountain Pine Beetle is of high priority if we are to mitigate further loss of carbon storage in the affected areas. At the same time, ongoing emissions from these forests will be somewhat beyond our control for a period of time. Large-scale salvage clearcutting -- for example for bio-energy -- is not a sustainable solution because it will negatively impact natural regeneration and environmental services in many areas. Not all the trees in the affected areas are dead. Healthy trees are growing in the understorey, and even dead trees reduce erosion and flooding and continue to store carbon for a period of time while young trees grow back. Since climate change will bring about more extreme weather events, we have to maintain ecological functions of our forests like flood control and avoid disrupting these further through more clear cuts.
Wood products can be a climate friendly alternative to materials like concrete and steel. They store up to 20 per cent of the carbon removed from the forest after harvesting, some of them long-term. Forestry in the era of climate change has the potential to be a key part of a low-carbon economy providing new jobs, but we have to take a close look where it is done, how it is done, and how much gets logged and left behind.
B.C. must set targets and create a plan to reduce emissions from logging in the same way it did with emissions from fossil fuels. In order to avoid catastrophic climate change, it is mandatory that B.C.'s forests become carbon neutral as soon as possible. The province should reduce annual CO2 emissions from forest land (86 megatonnes in 2007) by at least 60 per cent (equivalent to the net emissions of 2007) by 2020. The remaining emissions would then be in the same range as current sequestration (34 megatonnes). The plan should also include action to increase sequestration of our forests, but it is addressing logging that promises immediate results. As with most things in life, there is no cast iron guarantee. But this would be a respectable start.
Jens Wieting is coastal forest campaigner with Sierra Club B.C.
Wednesday, September 16, 2009
Forest Carbon Offsetting Survey 2009
New York, 20th April 2009: EcoSecurities a leading company in the business of sourcing, developing and trading carbon offsets from greenhouse gas abatement projects, Conservation International, The Climate, Community & Biodiversity Alliance and ClimateBiz, announce the findings of their "Forest Carbon Offsetting Survey 2009‟, one of the first research studies to focus on corporate attitudes concerning carbon offsets from forestry projects.
Highlights of the research, which sampled 120 global, multinational and regional organizations, and 21 carbon companies, included:
General attitude to forestry projects is far more positive in North America and the Rest of the World (74% and 76% respectively) than it is in Europe (36%);
Respondents from North America found not only the Voluntary Carbon Standard (VCS) and the Clean Development Mechanism (CDM) widely acceptable (74% and 56%) but also California Climate Action Registry (CCAR) and the Climate Community and Biodiversity (CCB) standard combined with a carbon accounting standard (56% and 55%);
North American buyers were more positive towards virtually all project types than buyers from Europe. This was especially true for agroforestry (92% vs. 72%) and reduced impact logging (75% vs. 57%) but even more clear for commercial plantations (52% vs. 29%);
Respondents from North America showed a strong preference for purchasing carbon credits from domestic forestry projects (46% rated them as highly desirable vs only 16% of European buyers);
North American buyers are much more willing to finance carbon project development upfront or invest in projects than European buyers (67% vs. 32% and 67% vs. 20%, respectively);
North American regional trends show an interest in exploring forestry as a learning and preparation exercise for upcoming regulation (78% agreed or strongly agreed), compared with the European sample (where only 34% agreed or strongly agreed).
Pedro Moura Costa, President of EcoSecurities, commented, "With the US significantly increasing its focus on climate change and the UN COP15 negotiations taking place at end of 2009 this is an extremely important year for forestry. It‟s tremendously encouraging to see that companies are starting to recognize the benefits from forestry projects, not only in terms of the robustness of the carbon offsets, but also in creating sustainable co-benefits and helping to reduce the problem of climate change and deforestation."
"A growing number of offset buyers recognize the significant role forestry can play in reducing global greenhouse gas emissions while also delivering community and ecosystem benefits," said Matthew Wheeland, Managing Editor of ClimateBiz. "The importance buyers place on carbon standards and project developer track records, however, shows forestry offsets must meet strict additionality and permanence criteria to prove they work."
"Over the past few years forestry activities have really come into their own in the carbon market, and are now recognized as capable of generating high-quality, cost-effective emissions reductions along with unique multiple benefits. Clearly the survey responses reflect this" said Toby Janson-Smith, Senior Director of Forest Carbon Markets of Conservation International. "There is no doubt this has been aided by the growing number of robust forest carbon projects being implemented around the world, and the development of rigorous carbon accounting standards like the VCS, and multiple-benefit standards like the Climate, Community & Biodiversity (CCB) Standards."
The survey received 141 responses from a mix of global, multinational and regional companies, covering a diverse range of sectors and industries. It provides significant insight into companies‟ perceptions of forest carbon offsets and the forestry sector. Support for this research initiative was provided from a number of organisations which include: 2Degrees, Akin Gump Strauss Hauer & Feld LLP, Borealis Offsets, Cleantech.org, GreenBiz, The Karo Group and Westgate.
For a full version of the Forest Carbon Offsetting Survey 2009, please visit:-
Forest Carbon Offsetting Survey 2009
Highlights of the research, which sampled 120 global, multinational and regional organizations, and 21 carbon companies, included:
General attitude to forestry projects is far more positive in North America and the Rest of the World (74% and 76% respectively) than it is in Europe (36%);
Respondents from North America found not only the Voluntary Carbon Standard (VCS) and the Clean Development Mechanism (CDM) widely acceptable (74% and 56%) but also California Climate Action Registry (CCAR) and the Climate Community and Biodiversity (CCB) standard combined with a carbon accounting standard (56% and 55%);
North American buyers were more positive towards virtually all project types than buyers from Europe. This was especially true for agroforestry (92% vs. 72%) and reduced impact logging (75% vs. 57%) but even more clear for commercial plantations (52% vs. 29%);
Respondents from North America showed a strong preference for purchasing carbon credits from domestic forestry projects (46% rated them as highly desirable vs only 16% of European buyers);
North American buyers are much more willing to finance carbon project development upfront or invest in projects than European buyers (67% vs. 32% and 67% vs. 20%, respectively);
North American regional trends show an interest in exploring forestry as a learning and preparation exercise for upcoming regulation (78% agreed or strongly agreed), compared with the European sample (where only 34% agreed or strongly agreed).
Pedro Moura Costa, President of EcoSecurities, commented, "With the US significantly increasing its focus on climate change and the UN COP15 negotiations taking place at end of 2009 this is an extremely important year for forestry. It‟s tremendously encouraging to see that companies are starting to recognize the benefits from forestry projects, not only in terms of the robustness of the carbon offsets, but also in creating sustainable co-benefits and helping to reduce the problem of climate change and deforestation."
"A growing number of offset buyers recognize the significant role forestry can play in reducing global greenhouse gas emissions while also delivering community and ecosystem benefits," said Matthew Wheeland, Managing Editor of ClimateBiz. "The importance buyers place on carbon standards and project developer track records, however, shows forestry offsets must meet strict additionality and permanence criteria to prove they work."
"Over the past few years forestry activities have really come into their own in the carbon market, and are now recognized as capable of generating high-quality, cost-effective emissions reductions along with unique multiple benefits. Clearly the survey responses reflect this" said Toby Janson-Smith, Senior Director of Forest Carbon Markets of Conservation International. "There is no doubt this has been aided by the growing number of robust forest carbon projects being implemented around the world, and the development of rigorous carbon accounting standards like the VCS, and multiple-benefit standards like the Climate, Community & Biodiversity (CCB) Standards."
The survey received 141 responses from a mix of global, multinational and regional companies, covering a diverse range of sectors and industries. It provides significant insight into companies‟ perceptions of forest carbon offsets and the forestry sector. Support for this research initiative was provided from a number of organisations which include: 2Degrees, Akin Gump Strauss Hauer & Feld LLP, Borealis Offsets, Cleantech.org, GreenBiz, The Karo Group and Westgate.
For a full version of the Forest Carbon Offsetting Survey 2009, please visit:-
Forest Carbon Offsetting Survey 2009
Saturday, September 12, 2009
Indonesia needs to refine forest-CO2 rules: lawyers
Mon Sep 7, 2009 8:08am EDT
By Sunanda Creagh JAKARTA, Sept 7 (Reuters)h
Confusing and conflicting regulations are scaring away investors from Indonesia's fledgling forest carbon credit scheme aimed at curbing deforestation, lawyers said on Monday. A U.N.-backed scheme called reduced emissions from deforestation and degradation (REDD) could potentially unlock billions of dollars in annual carbon credit sales for developing nations that protect their forests from illegal logging and other threats.Indonesia in May became the first country to issue a legal framework for REDD, anticipating the scheme's inclusion in a broader U.N. climate pact during a major gathering in Copenhagen this year.However, project developers will struggle for up to five years to attract necessary volumes of private investment to sustain REDD projects without public funding, said Martijn Wilder, a partner at Baker & McKenzie."We are probably three, four or five years away in terms of having a really significant liquid private sector market so the issue is how do we fund it at the moment," he told a forum of REDD project developers and policy-makers in Jakarta on Monday."There is direct funding from governments such as Norway or through the World Bank, but the key issue is how much do we rely on public sector financing or on private sector financing," said Wilder, head of Baker & McKenzie's global climate change and emissions trading practice.Deforestation is responsible for nearly 20 percent of mankind's greenhouse gas emissions.The United Nations, World Bank and numerous governments back REDD projects in developing nations that halt forest loss and pay local communities compensation as well as help them develop alternative livelihoods.In return, rich nations and companies can buy REDD carbon offsets to meet their emissions obligations at home. A U.N.-backed market, though, will only come into force from 2013 if there's a global climate pact and the infant sector is presently supported by the voluntary carbon offset market and donor funding.OVERLAPLuke Devine, a foreign consultant from Hadiputranto, Hadinoto and Partners and a specialist on Indonesia's REDD regulations said the Ministry of Forestry had issued two sets of conflicting regulations that nevertheless have some areas of overlap, creating uncertainty for project developers."Until there's certainty about these issues -- of land tenure, what concession do I have, who is supposed to issue the concession, how long can it be issued for, what's the revenue sharing arrangement -- until these issues are finally determined it is going to be very, very difficult to get access to that private sector financing because it will be a very high-risk investment for investors," he said.Forestry Minister H.M.S. Kaban told Monday's forum that the government was finalising a national strategy on REDD for 2012 and called for patience from project developers.Doddy S. Sukadri, an official from the National Council for Climate Change, asked investors to remember that the legal framework is a work in progress."If someone said that some of the decrees are not matching, I think that's normal. All this will be revisited but at least this is a reflection from the Ministry of Forestry that they are doing something and no other country is doing something," he said. (Editing by David Fogarty)
By Sunanda Creagh JAKARTA, Sept 7 (Reuters)h
Confusing and conflicting regulations are scaring away investors from Indonesia's fledgling forest carbon credit scheme aimed at curbing deforestation, lawyers said on Monday. A U.N.-backed scheme called reduced emissions from deforestation and degradation (REDD) could potentially unlock billions of dollars in annual carbon credit sales for developing nations that protect their forests from illegal logging and other threats.Indonesia in May became the first country to issue a legal framework for REDD, anticipating the scheme's inclusion in a broader U.N. climate pact during a major gathering in Copenhagen this year.However, project developers will struggle for up to five years to attract necessary volumes of private investment to sustain REDD projects without public funding, said Martijn Wilder, a partner at Baker & McKenzie."We are probably three, four or five years away in terms of having a really significant liquid private sector market so the issue is how do we fund it at the moment," he told a forum of REDD project developers and policy-makers in Jakarta on Monday."There is direct funding from governments such as Norway or through the World Bank, but the key issue is how much do we rely on public sector financing or on private sector financing," said Wilder, head of Baker & McKenzie's global climate change and emissions trading practice.Deforestation is responsible for nearly 20 percent of mankind's greenhouse gas emissions.The United Nations, World Bank and numerous governments back REDD projects in developing nations that halt forest loss and pay local communities compensation as well as help them develop alternative livelihoods.In return, rich nations and companies can buy REDD carbon offsets to meet their emissions obligations at home. A U.N.-backed market, though, will only come into force from 2013 if there's a global climate pact and the infant sector is presently supported by the voluntary carbon offset market and donor funding.OVERLAPLuke Devine, a foreign consultant from Hadiputranto, Hadinoto and Partners and a specialist on Indonesia's REDD regulations said the Ministry of Forestry had issued two sets of conflicting regulations that nevertheless have some areas of overlap, creating uncertainty for project developers."Until there's certainty about these issues -- of land tenure, what concession do I have, who is supposed to issue the concession, how long can it be issued for, what's the revenue sharing arrangement -- until these issues are finally determined it is going to be very, very difficult to get access to that private sector financing because it will be a very high-risk investment for investors," he said.Forestry Minister H.M.S. Kaban told Monday's forum that the government was finalising a national strategy on REDD for 2012 and called for patience from project developers.Doddy S. Sukadri, an official from the National Council for Climate Change, asked investors to remember that the legal framework is a work in progress."If someone said that some of the decrees are not matching, I think that's normal. All this will be revisited but at least this is a reflection from the Ministry of Forestry that they are doing something and no other country is doing something," he said. (Editing by David Fogarty)
Friday, September 11, 2009
Firm hopes to sell A$1.6 billion in forest credits
* But market for such carbon credits small and uncertain*
Analysts point to delivery risk from forest carbon projects
By David Fogarty, Climate Change Correspondent, Asia
SINGAPORE, Sept 11 (Reuters) - An Australian firm hoping to broker A$1.6 billion in carbon credit sales from saving tropical forests highlights the promise and peril of a U.N.-backed scheme that rewards projects for curbing deforestation.Carbon Planet, in presentations to investors, says it has contracted 100 million carbon offsets over five years from projects in Papua New Guinea and 60 million over five years from Indonesia at an average of A$10 ($8.5) each offset, or credit.That equates to 160 million tonnes of carbon dioxide saved from being emitted by keeping the forests standing.None of the 25 projects in PNG and 8 in Indonesia have yielded credits although the company, a carbon services provider, hopes credits will start to flow soon and says it has buyers.But brokers and analysts say there is no appetite currently for that volume of "avoided deforestation" credits on the global voluntary carbon market, which is driven by demand from corporates wanting to offset their carbon emissions.Demand worth potentially billions of dollars annually would only come from future national emissions trading schemes such as in the United States and Australia and an eventual global scheme backed by the United Nations, called reduced emissions from deforestation and degradation (REDD).Analysts say giving large credit flow forecasts from REDD projects before they are audited or validated is fraught with risk if projects do not yield as many credits as forecast.In addition, REDD's final design has not been decided by the U.N., it is unclear how the scheme will be included in national schemes or if early REDD projects will be included in the U.N. framework. (For related story, click on [ID:nSP440016])"People are contracting REDD as though it's on the verge of becoming a compliance market," said Martijn Wilder, head of Baker & McKenzie's global climate change and emissions trading practice, referring to markets that would allow REDD credits to meet mandatory emissions curbs in rich nations.The United Nations hopes REDD will be included in a broader climate pact the world body wants to be agreed in December during a major meeting in Copenhagen. The idea is for a global REDD credit market to formally begin in 2013."We are using much more conservative figures when we are talking to our investors," said Darius Sarshar from New Forests, which is developing a large REDD project in Papua, Indonesia.In Indonesia, there are an estimated 20 projects at various stages of development, the World Bank says."However, such engagement remains speculative, extremely expensive and has numerous challenges," said Wilder.COMPLEXITYThis is particularly the case given the early stage of development of REDD and the complexity and time needed to develop REDD projects in developing countries."In terms of the forecast market demand of voluntary credits, it is by no way even up to the volumes that I've seen promoted as imminent from REDD projects," said Chris Halliwell, a senior emissions broker for TFS Green in Melbourne, Australia."There seems to be a mark-to-market valuation but not really supply and demand analysis."REDD holds the promise of unlocking billions of dollars in annual revenue to developing nations from carbon offset sales to wealthy countries.The scheme is designed to curb deforestation and restore the world's tropical forests so they can soak up growing amounts of planet-warming carbon dioxide from burning fossil fuels.But REDD projects must provide funds for local communities, prove they are designed to address local causes of deforestation, ensure they are long-term and be able to accurately calculate how much carbon the forest will lock away over several decades.Such complex calculations take time. Proving who actually owns the carbon stock in a given area is also crucial.Carbon Planet's projections seem daring if only because the entire value of the world's voluntary carbon market was US$705 million in 2008, up from US$335 million in 2007, according to "State of the Voluntary Carbon Markets 2009" by Ecosystem Marketplace and analysts New Carbon Finance.Of this, global sales of "avoided deforestation" credits were just one percent of turnover.Carbon Planet Founder Dave Sag told Reuters the A$600 million in revenues over five years from Indonesia was "based on a very conservative estimated yield of 12 million tonnes per annum"."I understand that people have concerns about our projections. Anyone would given the scale of them. But the numbers to us do not seem unrealistic."TOUGH STANDARDSSag said the projects would meet tough yardsticks -- such as the respected Voluntary Carbon Standard (VCS) and Climate, Community and Biodiversity Project Design Standards -- and the firm was looking more to future compliance markets."That's why we are busting a gut to make sure that these projects are produced properly."But large markets that will accept large volumes of REDD credits are several years away. And many developing nations have yet to develop rules governing REDD, adding to uncertainty.Another REDD project developer in Indonesia said it was crucial to prove to investors that protecting an area of forest actually curbs deforestation and therefore emissions."You are basically doing projects and drafting legal agreements in the absence of any rules," said Wilder."From our point of view, doing a REDD project is similar to other long-term infrastructure projects in the sense that the legal foundations have to be beyond reproach," he added.Sag says REDD credits will soon start to flow from its projects, starting later this year with 10 million VCS-standard credits from Kamula Doso rainforest in Papua New Guinea.The company has signed a deal with a firm called Nupan, which represents the 52 land-owner groups in the 800,000 ha (2 million acres) reserve who are the legal owners of the "carbon stock".He denies Carbon Planet is playing fast and loose with its projections, saying investors want to know the numbers."I am the confident the credits will start walking out the door pretty soon. We have buyers lined up." (Additional reporting by Sunanda Creagh in JAKARTA; Editing by Michael Urquhart)
Analysts point to delivery risk from forest carbon projects
By David Fogarty, Climate Change Correspondent, Asia
SINGAPORE, Sept 11 (Reuters) - An Australian firm hoping to broker A$1.6 billion in carbon credit sales from saving tropical forests highlights the promise and peril of a U.N.-backed scheme that rewards projects for curbing deforestation.Carbon Planet, in presentations to investors, says it has contracted 100 million carbon offsets over five years from projects in Papua New Guinea and 60 million over five years from Indonesia at an average of A$10 ($8.5) each offset, or credit.That equates to 160 million tonnes of carbon dioxide saved from being emitted by keeping the forests standing.None of the 25 projects in PNG and 8 in Indonesia have yielded credits although the company, a carbon services provider, hopes credits will start to flow soon and says it has buyers.But brokers and analysts say there is no appetite currently for that volume of "avoided deforestation" credits on the global voluntary carbon market, which is driven by demand from corporates wanting to offset their carbon emissions.Demand worth potentially billions of dollars annually would only come from future national emissions trading schemes such as in the United States and Australia and an eventual global scheme backed by the United Nations, called reduced emissions from deforestation and degradation (REDD).Analysts say giving large credit flow forecasts from REDD projects before they are audited or validated is fraught with risk if projects do not yield as many credits as forecast.In addition, REDD's final design has not been decided by the U.N., it is unclear how the scheme will be included in national schemes or if early REDD projects will be included in the U.N. framework. (For related story, click on [ID:nSP440016])"People are contracting REDD as though it's on the verge of becoming a compliance market," said Martijn Wilder, head of Baker & McKenzie's global climate change and emissions trading practice, referring to markets that would allow REDD credits to meet mandatory emissions curbs in rich nations.The United Nations hopes REDD will be included in a broader climate pact the world body wants to be agreed in December during a major meeting in Copenhagen. The idea is for a global REDD credit market to formally begin in 2013."We are using much more conservative figures when we are talking to our investors," said Darius Sarshar from New Forests, which is developing a large REDD project in Papua, Indonesia.In Indonesia, there are an estimated 20 projects at various stages of development, the World Bank says."However, such engagement remains speculative, extremely expensive and has numerous challenges," said Wilder.COMPLEXITYThis is particularly the case given the early stage of development of REDD and the complexity and time needed to develop REDD projects in developing countries."In terms of the forecast market demand of voluntary credits, it is by no way even up to the volumes that I've seen promoted as imminent from REDD projects," said Chris Halliwell, a senior emissions broker for TFS Green in Melbourne, Australia."There seems to be a mark-to-market valuation but not really supply and demand analysis."REDD holds the promise of unlocking billions of dollars in annual revenue to developing nations from carbon offset sales to wealthy countries.The scheme is designed to curb deforestation and restore the world's tropical forests so they can soak up growing amounts of planet-warming carbon dioxide from burning fossil fuels.But REDD projects must provide funds for local communities, prove they are designed to address local causes of deforestation, ensure they are long-term and be able to accurately calculate how much carbon the forest will lock away over several decades.Such complex calculations take time. Proving who actually owns the carbon stock in a given area is also crucial.Carbon Planet's projections seem daring if only because the entire value of the world's voluntary carbon market was US$705 million in 2008, up from US$335 million in 2007, according to "State of the Voluntary Carbon Markets 2009" by Ecosystem Marketplace and analysts New Carbon Finance.Of this, global sales of "avoided deforestation" credits were just one percent of turnover.Carbon Planet Founder Dave Sag told Reuters the A$600 million in revenues over five years from Indonesia was "based on a very conservative estimated yield of 12 million tonnes per annum"."I understand that people have concerns about our projections. Anyone would given the scale of them. But the numbers to us do not seem unrealistic."TOUGH STANDARDSSag said the projects would meet tough yardsticks -- such as the respected Voluntary Carbon Standard (VCS) and Climate, Community and Biodiversity Project Design Standards -- and the firm was looking more to future compliance markets."That's why we are busting a gut to make sure that these projects are produced properly."But large markets that will accept large volumes of REDD credits are several years away. And many developing nations have yet to develop rules governing REDD, adding to uncertainty.Another REDD project developer in Indonesia said it was crucial to prove to investors that protecting an area of forest actually curbs deforestation and therefore emissions."You are basically doing projects and drafting legal agreements in the absence of any rules," said Wilder."From our point of view, doing a REDD project is similar to other long-term infrastructure projects in the sense that the legal foundations have to be beyond reproach," he added.Sag says REDD credits will soon start to flow from its projects, starting later this year with 10 million VCS-standard credits from Kamula Doso rainforest in Papua New Guinea.The company has signed a deal with a firm called Nupan, which represents the 52 land-owner groups in the 800,000 ha (2 million acres) reserve who are the legal owners of the "carbon stock".He denies Carbon Planet is playing fast and loose with its projections, saying investors want to know the numbers."I am the confident the credits will start walking out the door pretty soon. We have buyers lined up." (Additional reporting by Sunanda Creagh in JAKARTA; Editing by Michael Urquhart)
Saturday, September 5, 2009
CFTC to Regulate Chicago Climate Exchange
Sept 4, 2009
Environmental Leader
The U.S. Commodity Futures Trading Commission (CFTC) plans to impose position limits and reporting requirements on the Chicago Climate Exchange’s voluntary carbon credit trading program for farms, factories, and power plants, Bloomberg reports. The commission proposed such oversight earlier this month.
The CFTC decision to regulate the carbon credit trading program establishes the commission’s role as a regulator of carbon credits and not just futures contracts, Kari Larsen, a partner at the law firm McDermott, Will & Emery LLP, said in the article.
The move by the CFTC comes as Congress is debating a cap-and-trade program similar to those already in existence in Europe and in the U.S. Northeast that would allow the federal government to create pollution credits to be bought and sold. Congress is currently debating how such trading will be regulated and what agency would oversee and enforce the rules.
The CFTC will continue to seek public comment on its regulation of carbon financial instruments on the Chicago Climate Exchange until Sept. 4.
Environmental Leader
The U.S. Commodity Futures Trading Commission (CFTC) plans to impose position limits and reporting requirements on the Chicago Climate Exchange’s voluntary carbon credit trading program for farms, factories, and power plants, Bloomberg reports. The commission proposed such oversight earlier this month.
The CFTC decision to regulate the carbon credit trading program establishes the commission’s role as a regulator of carbon credits and not just futures contracts, Kari Larsen, a partner at the law firm McDermott, Will & Emery LLP, said in the article.
The move by the CFTC comes as Congress is debating a cap-and-trade program similar to those already in existence in Europe and in the U.S. Northeast that would allow the federal government to create pollution credits to be bought and sold. Congress is currently debating how such trading will be regulated and what agency would oversee and enforce the rules.
The CFTC will continue to seek public comment on its regulation of carbon financial instruments on the Chicago Climate Exchange until Sept. 4.
California Forest Carbon Credit Standards to go National
September 4, 2009
The board of the California-based Climate Action Reserve (CAR) voted for the final adoption of Version 3.0 of its Forest Project Protocol, which paves the way for national application of the standard, and helps improve the environmental integrity of carbon credits in the U.S., reports Carbon Positive. Germany’s CarbonFix Standard also released the latest version of its protocol for afforestation and reforestation activities.
Until now, the Chicago Climate Exchange (CCX) voluntary carbon trading regime has been the primary market for forest owners to participate in for preserving or sustainably managing their trees, reports Carbon Positive.
Offering forest project developers independent verification of carbon sequestration in their projects, the protocol covers activities that avoid conversion of forest land to other uses, improved forest management and reforestation of previously-cleared land, said Carbon Positive. It also requires sustainable harvest operators to account for what happens to the carbon in harvested wood products.
As the official carbon offset standard used by the California state government, CAR’s protocol was included in the House’s Waxman-Markey emissions trading bill, the American Clean Energy and Security Act, reports Carbon Positive.
However, the Pacific Forest Trust (PFT) has criticized the protocol for its weak protection of mature forests, reports Carbon Positive. PFT said the baseline measurement for avoided conversion projects is set too high, reducing the volume of carbon credits paid for carbon-rich forest well above that benchmark, and the financial incentives for owners to conserve these forests, according to Carbon Positive.
American Forests supports the Climate Action Reserve for its approval of the revised Forest Project Protocol, which expands the participation of forest landowners in carbon offset markets. The conservation group said it also enhances the legitimacy of forest-sector carbon offset projects by establishing a model for environmental credibility that can be applied to state, county, municipal, and private forest lands nationwide.
American Forests said it is coordinating the first public lands reforestation project to seek approval under the Climate Action Reserve’s Forest Project Protocol. American Forests, together with Conoco Phillips and the California Department of Parks and Recreation, will provide conifer reforestation to 2,500 acres of the Cuyamaca Rancho State Park, which was devastated by the 2003 cedar fire. This project will generate more than 500,000 metric tons of carbon offsets.
At the same time, the CarbonFix Standard, a German-based carbon project verification protocol, has launched the third version of its standards for afforestation and reforestation activities, reports Carbon Positive.
These standards offer credibility to verified emission reduction (VER) carbon credits generated for sale in the voluntary carbon market. which has grown to $700 million worldwide in 2008, according to Carbon Positive.
CarbonFix v3.0 offers more flexibility to project developers in how and when carbon credits are generated and streamlines processes for those seeking dual certification with other land-use standards, according to Carbon Positive. It also formally offers ex-post crediting as well, which Carbon Positive said is more attractive to carbon credit buyers who want to know they are paying for emissions reductions that have already taken place.
The new version also formalizes the recognition of the certification schemes of the Forest Stewardship Council (FSC) and the Climate Community and Biodiversity (CCB) Standard.
ENVIRONMENTAL LEADER
The board of the California-based Climate Action Reserve (CAR) voted for the final adoption of Version 3.0 of its Forest Project Protocol, which paves the way for national application of the standard, and helps improve the environmental integrity of carbon credits in the U.S., reports Carbon Positive. Germany’s CarbonFix Standard also released the latest version of its protocol for afforestation and reforestation activities.
Until now, the Chicago Climate Exchange (CCX) voluntary carbon trading regime has been the primary market for forest owners to participate in for preserving or sustainably managing their trees, reports Carbon Positive.
Offering forest project developers independent verification of carbon sequestration in their projects, the protocol covers activities that avoid conversion of forest land to other uses, improved forest management and reforestation of previously-cleared land, said Carbon Positive. It also requires sustainable harvest operators to account for what happens to the carbon in harvested wood products.
As the official carbon offset standard used by the California state government, CAR’s protocol was included in the House’s Waxman-Markey emissions trading bill, the American Clean Energy and Security Act, reports Carbon Positive.
However, the Pacific Forest Trust (PFT) has criticized the protocol for its weak protection of mature forests, reports Carbon Positive. PFT said the baseline measurement for avoided conversion projects is set too high, reducing the volume of carbon credits paid for carbon-rich forest well above that benchmark, and the financial incentives for owners to conserve these forests, according to Carbon Positive.
American Forests supports the Climate Action Reserve for its approval of the revised Forest Project Protocol, which expands the participation of forest landowners in carbon offset markets. The conservation group said it also enhances the legitimacy of forest-sector carbon offset projects by establishing a model for environmental credibility that can be applied to state, county, municipal, and private forest lands nationwide.
American Forests said it is coordinating the first public lands reforestation project to seek approval under the Climate Action Reserve’s Forest Project Protocol. American Forests, together with Conoco Phillips and the California Department of Parks and Recreation, will provide conifer reforestation to 2,500 acres of the Cuyamaca Rancho State Park, which was devastated by the 2003 cedar fire. This project will generate more than 500,000 metric tons of carbon offsets.
At the same time, the CarbonFix Standard, a German-based carbon project verification protocol, has launched the third version of its standards for afforestation and reforestation activities, reports Carbon Positive.
These standards offer credibility to verified emission reduction (VER) carbon credits generated for sale in the voluntary carbon market. which has grown to $700 million worldwide in 2008, according to Carbon Positive.
CarbonFix v3.0 offers more flexibility to project developers in how and when carbon credits are generated and streamlines processes for those seeking dual certification with other land-use standards, according to Carbon Positive. It also formally offers ex-post crediting as well, which Carbon Positive said is more attractive to carbon credit buyers who want to know they are paying for emissions reductions that have already taken place.
The new version also formalizes the recognition of the certification schemes of the Forest Stewardship Council (FSC) and the Climate Community and Biodiversity (CCB) Standard.
ENVIRONMENTAL LEADER
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