AB32 - California - REDD

5 August 2010 | The winds of change are blowing across the climate change policy landscape. With legislation stalled in the US Senate, attention now shifts to state and regional initiatives. In California, the Global Warming Solutions Act, better known as AB32 and passed in 2006, establishes a statewide mandate for Greenhouse Gas (GHG) reductions, including participation in a regional cap and trade system.

The California Air Resources Board (ARB) is the state agency responsible for implementing AB32, and it’s been busy readying the emissions trading framework set to take effect in 2012. On July 30, the ARB held a public workshop to discuss the role of Reducing Emissions from Deforestation and Degradation (REDD) in a California cap and trade system and offered glimpses of a new pathway to incentivize tropical forest conservation.

Read the full article here…..http://www.ecosystemmarketplace.com/pages/dynamic/article.page.php?page_id=7670&section=news_articles&eod=1

JOAS Not Involved In Deal With Australian Company

KUALA LUMPUR, Aug 10 (Bernama) -- Indigenous Peoples Network of Malaysia (JOAS) said Tuesday that it was not involved in a forest carbon deal with an Australian carbon company.

Referring to a news report on Aug 6, "Australia firm signs forest CO2 deal with Malaysian Tribes", JOAS president Adrian Lasimbang said: "We will like to state that our network was not involved in this and to the best of our knowledge, we do not know which of the 24 villagers or nine community leaders are involved in that project."

According to the report, an Australian carbon services company had signed a deal with nine Malaysian tribal leaders to certify carbon offsets from a project aimed at preserving more than 100,000 hectares of tropical forest.

The deal, according to the report, would allow the tribes in Sarawak to earn a share of proceeds from the sale of carbon offsets to help them manage and protect the forest over a period of 20 years, with potential payment worth millions of dollars.

Adrian said that JOAS did not support the implementation of REDD (Reducing Emissions from Deforestation and Forest Degradation) in any form, unless the parties involved in the deal have adequate consultation and FPIC (free, prior informed consent).

"We feel it is important to make it clear that it was not our network that was involved in this deal as we strongly and consistently endorse a process of FPIC before signing any deal that involves our forests and territories," he said.

Adrian said the tribes were fully aware about a mandatory process and at the same time know that an independent workshop should be conducted to allow tribal communities to make their own decisions regarding communal forest.

"We hope that the company has at least ensured that the communities have access to their own lawyers who can independently advise them on the legal matters involved," he added.

Australia firm signs forest CO2 deal with Malaysia tribes

Friday, 06 August 2010 01:52

An Australian carbon services company has signed a deal with nine Malaysian tribal leaders to certify carbon offsets from a project aimed at preserving more than 100,000 hectares of tropical forest. The deal allows the tribes in Sarawak state on the island of Borneo to earn a share of the proceeds from the sale of carbon offsets to help them manage and protect the forest over a period of 20 years, payments potentially worth millions of dollars. Forests soak up large amounts of carbon dioxide, the main greenhouse gas blamed for global warming, and preserving the remaining tropical forests in developing countries is seen as a key part of the fight against climate change. The project aims to improve the livelihoods of at least 10,000 people in 24 villages and is part of a U.N.-backed scheme called reduced emissions from deforestation and degradation. The United Nations hopes REDD will lead to a multi-billion dollar trade in forest carbon credits and the Malaysian project is one of several pioneering investments aimed at building up the REDD sector. REDD seeks to reward developing nations and indigenous forest owners with carbon credit payments to save their forests. There are about a dozen REDD projects in neighboring Indonesia. The firm, Shift2Neutral, said it will work with the tribes and a local NGO to help manage the forest, survey the area and access the carbon stored in the trees and soil. The project would be certified under an enhanced form of REDD that also aims to reward any enhancement to a forest's carbon stock. A long-term management plan would also be created and a committee of comprising tribal leaders, investors and local and company officials would guide how the money is spent with the aim of improving livelihoods and curbing incentives for logging. "It's a 50-50 deal. We ensure they get their funding and they use that funding as per an economic development committee that is established," said Brett Goldsworthy, chairman of Shift2Neutral, adding the aim was to make sure the money wasn't squandered. The tribes are the customary owners of the land and the legal owners of the carbon but many still have subsistence livelihoods. "You've got tribal people who have barely got any money and they are desperate for money for things like medical aid," Goldsworthy said on Friday. "What we will do with our funding is to start instigating other programs along the lines of medical, food aid, schooling, clothing to make sure there is a sustainable future," he said. PROTECTION Besides boosting incomes, better monitoring of the forest was also crucial. "The main threat they face is illegal loggers," he said. "It is key to get more forestry people involved for the protection of the forest and having checks and measures on their boundary borders to ensure that people aren't getting through." Goldsworthy said he hoped the carbon survey and management plan for the area would be finished by next year, followed by the issuance of the first batch of carbon offsets called VERs, or voluntary emissions reductions, to be sold to investors. It was too early to provide an accurate estimate of the number of VERs per hectare from the Sarawak site, he said. "As the land is first-growth vegetation one could expect 50 per hectare but again we have not provided anything at this point." Avoided deforestation VERs fetch anything from $10 to $30 each depending on the project, country and risk. He said the company is developing similar projects in the Philippines, Indonesia and South Africa with VER buyers being governments, large corporates and wealthy individuals. (Source: reuters

Nisga’a hope to profit from carbon

RECOMMEND ON FACEBOOK

Published: August 03, 2010 11:00 PM

THE NISGA’A Lisims Government expects to develop a business in storing carbon through the planting of forests on its lands.

The expectation follows legislation unanimously enacted July 29 by the Nisga’a legislative assembly, the Wilp Si’ayuukhl Nisga’a.

The legislation amends the Nisga’a Forest Act to enable ecosystem restoration and carbon sequestration projects to take place on Nisga’a lands.

The new legislation grants the Nisga’a Lisims Government executive the authority to enter into ecosystem restoration and carbon rights agreements with designated contractors, indicates a release from the Lisims government.

“Under such an agreement, the Nisga’a Nation may grant an ecosystem restoration contractor the exclusive right to deal with the carbon credits that will be available in relation to the trees planted on Nisga’a Lands as part of an ecosystem restoration project,” the release continues.

“The purpose of the new legislation is twofold. First, and foremost, it will encourage the restoration of the areas of Nisga’a Lands that were devastated by logging that took place in the 1960s and 1970s.

“Second, it will enable economic benefits to be derived from the carbon that will be stored in the trees that will be planted in those restored areas, by taking advantage of emerging forest carbon sequestration markets.”

Nisga’a Lisims Government president Mitchell Stevens said the Nisga’a believe the carbon sequestration potential first of its kind in Canada when it comes to aboriginal governments.

“The ability of the Nisga’a Nation to govern its own land under the Nisga’a Treaty has allowed us to be at the forefront of a new and exciting development. This is something all Nisga’a can be proud of,” said Stevens,

Government Opens Applications For Compensatory Carbon Credits For Forest Owners

| Sourced From Voxy |
The Ministry of Agriculture and Forestry has announced that the owners of forest land established before 1990 can now apply for a one-off compensatory allocation of carbon credits valued from $700 to $1000 per hectare.

From 1 August 2010, owners of forest land that was planted in exotic forestry before 1990 have until November 2011 to apply from the government to receive an allocation of tradable carbon credits that is valued between NZ$700 and NZ$1000 per hectare of forest.

Carbon Business Manager for Independent Forestry Services Mike Mitchell said that this is an opportunity that forest owners should not pass up.

“This free allocation of tradable carbon credits is essentially compensation for the impact of deforestation rules brought in under the Emissions Trading Scheme has had on pre-1990 forest land. These credits can be sold tax free. This is a windfall for some forest owners, and they should be looking to apply as soon as possible”.

For southern forest owners, the value of this allocation is over NZ$50 million, and over the whole country hundreds of millions of dollars.

Mitchell says that it is expected that government will have a backlog of applications so it is important that forest owners contact IFS now to submit the required details so that forest owners can receive and sell their credits sooner rather than later.

IFS is a New Zealand based forest management and consulting company that provides a full forest management service that integrates traditional forest management with carbon management. They have been providing advice on carbon management to major New Zealand corporates, forest owners and overseas investors since the inception of the New Zealand carbon market.

Timmins forestry firm turning carbon into cash

Timmins forestry firm turning carbon into cash

Mikro-Tek rapid growth tech recognized by UN

By: Nick Stewart

Mark Kean, president of Mikro-Tek, displays just some of the cultures being grown in the Timmins laboratory to prepare for enhanced tree growth in Chile.

Among the foothills of Chile's Andean mountain range lies the handiwork of Timmins environmental bio-tech firm Mikro-Tek, whose rapid tree growth project is turning it into a global carbon credit trader.

After undergoing rigorous inspection by international auditors, accountants and forestry experts, the company's proprietary forest management technology is now registered by the United Nations.

This makes Mikro-Tek the first Canadian company to meet the stringent Kyoto Protocol registration process for forestry projects, and just one of seven such small-scale forestry projects worldwide.

"It's been an awful lot of hard work, but we're proud of this designation," says Mark Kean, president of Mikro-Tek.

"This puts us in a good position for the future and the types of things we have planned."

The move now gives the company the official green light to trade carbon credits between countries that have ratified the Kyoto Protocol.

Through this system, credits are created through the reduction of greenhouse gases in developing countries, which in the case of Mikro-Tek is accomplished through the absorption of carbon by the trees they grow in places like Chile. These credits can then be sold to developed countries who need to meet emissions targets as part of a system to achieve a sort of global balance.

It's a process that's already begun, with Mikro-Tek regaining some of its initial investment costs by selling some of the credits produced through the Chilean project to various European states.

Since 1990, the company has studied the use of natural soil microbes, known as mycorrhizae, to enhance the speed of tree growth, applying them to forest seedlings prior to planting or through irrigation.

It's an effort with proven results: a three-year study done by the company with 10 million seedlings in the late 1990s showed average growth increases of 25 per cent. Re-examination of some of the trees since then has indicated the growth rate has held steady, and in some cases, has actually improved.

It's a proprietary technology Kean has used to help re-green mine tailings areas with the likes of Vale, Xstrata Nickel and Goldcorp.

This success is further enhanced in places like Chile, where trees naturally grow faster than in Canada due to a year-round growing season.

It's something that prompted the establishment of a branch office in the country. Through this, Kean reached out to a coalition of small-scale Chilean farmers who traditionally grow grapes and citrus fruits in areas where forests were cleared 100 years prior to make room for agricultural work.

In the back end of these lands, however, are non-productive hilly regions where farming is all but impossible due to the lack of any real irrigation.

With that, Mikro-Tek struck deals to reforest these clearings, with the farmers needing only to build fencing to protect the young trees from hungry cattle or roving mountain goats.

Back at the Timmins biotechnology facility, testing was conducted to adapt the soil bacteria from its traditional use in Boreal-forest environments to those in Chile. It has since been applied successfully to pine and eucalyptus growth projects in the area, providing UN approval and hope for the company.

Despite the positive results, using forestry projects as a basis for carbon credits has its own challenges. Unlike solar and windmill-driven projects, the amount of carbon credits generated by trees can be challenging to quantify. Trees absorb different amounts of carbon depending on their stage of growth, meaning projects such as those in Chile require updating and monitoring through satellite photography and site visits.

Unexpected events can also threaten the project, as Mikro-Tek discovered when an earthquake registering 6.8 on the Richter Scale shook the region in 2003. The loss of trees to disasters or weather means a smaller carbon capture and a reduction in credits, though a forester hired by the company found no damage, thereby preserving the integrity of the project.

"There are lots of checks and balances to the system," says Kean.

With its Chilean success and UN registration under its belt, the company's plan is now to begin using things like its proprietary C-Trade Carbon Pool to allow investors to put up money for projects. In return, they would obtain the financial equivalent of carbon credits spread over a set period of time, something Kean likens to a mutual fund.

Plans also include the expansion of projects both in Canada and abroad.

Western Climate Initiative offers cap-and-trade

By JEFF BARNARD (AP)

GRANTS PASS, Ore. — A coalition of seven western states and three Canadian provinces on Tuesday offered its most detailed strategy yet for controlling greenhouse gas emissions blamed for climate change, saying they hope it will stand as a model for national systems in the United States and Canada.

At the core is a cap-and-trade system that would go into effect in January 2012, gradually ramping down emissions levels. The system, which gives financial incentives to reduce carbon emissions, would start with power plants, then extend to large industrial producers and transportation.

The goal is to cut greenhouse gas emissions in the next 10 years to levels 15 percent below those in the year 2005.

Building on a less detailed strategy issued two years ago, the plan comes as Congress has been unable to produce a climate bill to address the same issues.

The document includes the first details of how the carbon auction would work, and it recommends that offsets from programs that store carbon would be limited to a fraction of total emissions. There would be a floor price on emissions, and the auction would be open to anyone.

Art Sasse, a spokesman for Pacificorp, which serves about 1.7 million electricity customers in the northwestern U.S., said the utility had not seen enough specifics about the plan to comment.

So far, only two states — California and New Mexico — and three provinces — Quebec, Ontario and British Columbia — are writing regulations in anticipation of joining the Western regional carbon auction when it begins in 2012, said Michael Gibbs, California's deputy secretary for climate change and co-chairman of the initiative.

The two states and three provinces account for 70 percent of the emissions produced by the signers of the strategy, creating enough liquidity to get the cap-and-trade system up and running, said Robert Noel de Tilly, climate change adviser for Quebec's Ministry for Sustainable Development, Environment and Parks.

An economic analysis estimated that fuel savings would offset the cost of investing in new more energy-efficient equipment to meet limits on carbon production, Gibbs said.

Not all of the states in the climate group are enthusiastic. The Utah Legislature has passed a resolution urging Republican Gov. Gary Herbert to pull out, and GOP Gov. Jan Brewer of Arizona has ordered the state not to adopt cap-and-trade.

The other states in the coalition are Montana, Oregon, Utah and Washington.

California Gov. Arnold Schwarzenegger said the coalition's plan is an important step toward reducing dependency on oil, increasing energy security, and creating jobs and investment.

"Action continues to be needed at the national and international levels to address clean energy and climate change, but California and the rest of the Western Climate Initiative partners are not waiting to take action," Schwarzenegger said in a written statement.

Jim Whitestone of the Ontario Ministry of Environment said the coalition hopes the cap-and-trade system will serve as a model for the United States and Canada governments.

President Barack Obama on Tuesday pledged to keep pushing for broad climate legislation, and the White House expressed fresh hope the Senate and House might strike a deal on a sweeping energy plan this year.

Robert Stavins, professor of business and government at Harvard University and director of the Harvard Environmental Economics Program, said he did not anticipate Congress taking action that soon, and he was skeptical anything could be achieved in the next two years if Republicans gain seats in the House and Senate. Republicans have strongly opposed creating a cap-and-trade system for carbon.

"Hence, it's not surprising that sub-national entities, such as states, will move forward on their own," Stavins said in an e-mail. "The state model will be less effective and more costly for what is achieved than a national cap-and-trade system would be, but it may be the second-best approach."

The strategy also called for linking up with other carbon markets in the East and Midwest, an approach Stavins said would make them more efficient.

___

Online:

Western Climate Initiative: http://www.westernclimateinitiative.org