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FINAL
Plot No. 19, Sector 33, Near Hero Ho
Factory, Gurgaon, Haryana, India
Tel (Fax): +91 124 4102980
Email: lokesh@emergent ventures.c
www.emergent ventures.com
August 2008
Feasibility Study ReportNational Bamboo Mission
Emergent Ventures IndiaSustainable Solutions for Environmen
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Emergent Ventures India Pvt. Ltd. Sustainable Solutions for Environment
Emergent Ventures India Pvt. Ltd., Plot No. 19, Sector 33, Gurgaon, Haryana 122 001Phone: 91 124 4353100, email: contact@emergent ventures.com , Web: www.emergent ventures.com
1
E m e r g e n t V e n t u r e s
Revision History of the Project Document
Version
Number Date Prepared by Description and reason for revision
01 04/07/2008 Lokesh Chandra Dube
Abhirup Sen
Kumar Vishal
Draft Report
02 19/08/2008 Lokesh Chandra Dube
Abhirup Sen
Kumar Vishal
Final Report
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Emergent Ventures India Pvt. Ltd. Sustainable Solutions for Environment
Emergent Ventures India Pvt. Ltd., Plot No. 19, Sector 33, Gurgaon, Haryana 122 001Phone: 91 124 4353100, email: contact@emergent ventures.com , Web: www.emergent ventures.com
2
E m e r g e n t V e n t u r e s
EXECUTIVE SUMMARY Bamboo and bamboo based activities are promising means for climate change mitigation in developing
countries like India. India has good bamboo resources. National Bamboo Mission assigned Emergent
Ventures India for assessing feasibility of carbon credit generation under Clean Development
Mechanism and voluntary carbon market in the Indian state of Nagaland. The EVI team visited CBTC
office at Guwahati, NBDA office at Dimapur and collected data and information regarding the project
activities being implemented/ planned. Plantation sites, gasifiers and charcoal units were also visited in
and around Dimapur and Mokokchung. On the basis of detailed study from site visit and literature, EVI
team prepared this report with following recommendations:
SN Project Activities ERs
Potential
per annum
Recomm
ended
Category
Remarks
1 Bamboo Plantation All
sites 190,790 Green
All sites have been assessed separately
under section 3.1.1
2 Harvested Bamboo
Products Orange
Eligible under VCS 2007 only, New Meth
required which may include
national/sectoral baseline. Success of
project depends on successful approval of
the proposed methodology. Detailed
Baseline Assessment would be required
through credible third party survey.
Double Counting issues to be taken care
of. Complex Monitoring.
3 Bamboo Gasification for
power (both, installed and
planned) 1,191 Green
Very small in quantum hence can be
taken up as a bundled project activity
involving whole of north east/country as
a whole. It is advisable to launch it as a
CDM Program of Activities.
4 Bamboo
Charcoal as a
replacement
In
industries 4,460 Orange
Needs to be established through credible
third party surveys that baseline wood
charcoal comes from a depleting source
and is non renewable. Double counting of
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Emergent Ventures India Pvt. Ltd. Sustainable Solutions for Environment
Emergent Ventures India Pvt. Ltd., Plot No. 19, Sector 33, Gurgaon, Haryana 122 001Phone: 91 124 4353100, email: contact@emergent ventures.com , Web: www.emergent ventures.com
3
E m e r g e n t V e n t u r e s
of Non
renewable
Wood
Charcoal
ERs should be avoided.
In
households 6,690 Orange
Needs to be established through credible
third party surveys that baseline wood
charcoal comes from a depleting source
and is non renewable. Double counting of
ERs should be avoided. Complex
monitoring.
5 Bamboo
Charcoal as
a
replacement
of Coal
In
industrial
application 3,827 Green
Only in those industries that have coal as
baseline. Can be taken up as a bundled
project activity involving whole of north
east/country as a whole. Can be
developed as a CDM Program of Activities
also. Double counting to be avoided.
In
households 5,741 Orange
Baseline needs to be determined based
on past data, credible third party survey
of households. Double counting to be
avoided. Complex monitoring.
Green: Definite CDM/VCM opportunities, should be taken up
Orange: Potential CDM/VCM project, wait and watch, a re-look on these opportunities needed after
sometime (say 3 months)Red: Non-CDM/ VCM projects
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Emergent Ventures India Pvt. Ltd. Sustainable Solutions for Environment
Emergent Ventures India Pvt. Ltd., Plot No. 19, Sector 33, Gurgaon, Haryana 122 001Phone: 91 124 4353100, email: contact@emergent ventures.com , Web: www.emergent ventures.com
4
E m e r g e n t V e n t u r e s
1. INTRODUCTION Bamboo is regarded as poor mans timber
because of its versatility and usefulness in both
socio cultural and industrial purposes. It
belongs to Family Poaceae and is one of the
fastest growing species in the world. There are
nearly 75 genera and 1250 species of bamboo 1
distributed across the world. It is an extremely
strong, renewable and renowned for its
strength. It adapts to diverse climatic
conditions and soil type. It acts as a soil binder
in marginal and degraded land. It is an ancient medicinal plant, an important food source and intricately
related to indigenous art and culture 2. Its uses have grown over the centuries and the study of bamboo
has currently identified over 1500 uses of bamboo 3. It is an excellent supplement to wood. Due to its
high growth rate, it has the potential to be an effective carbon sink.
India is endowed with a rich treasure trove of bamboo represented by about 24 species and 134 genera
of which 18 genera and 90 species occur in North East India 4. India has over 9.5 million hectares of
forests 2 which is about 40% of the world total bamboo forests and is next only to China with respect to
abundance of bamboo. Bamboo occurs in well drained soils of deciduous and evergreen forests and
extends from tropical alluvial plains to high mountains upto about 3500 m altitude 5.
The world market for bamboo is valued at US $ 10 billion and is expected to reach about US $ 20 billion
by 2015 3. The size of the domestic bamboo industry is estimated to be about Rs. 6,505 crores, which
may grow to Rs.26,000 crores by 2015.
1 Soderstrom, T.R. and R.P.Ellis (1988),The wood bamboo (Poaceae: Bambuceae) of Sri Lanka: a Morphological anatomical study. Simthsonian Contribution to Botany No. 72. P.175 2 Nath, V. Rajat S. Pal and S.K. Banerjee (2008) Bamboo: Its Distribution, Production, Habitat andagroforestry Potential. Indian Forester Vol 134(3):387 3 http://agricoop.nic.in/bamboo/bamboomission.htm 4 Tiwari, D.N. (1992). A Monograph on Bamboo. International Book Distributors, Dehra Dun, 498 pp. 5 Varmah, G.c. and K.N. bahadur (1980). Country Report and status of research on bamboos in India. India For. Rec. (n.s.), :28
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5
E m e r g e n t V e n t u r e s
1.1 About National Bamboo Mission Despite such immense potential, the domestic bamboo sector is faced with constraints like lack of
scientific methods for propagation and cultivation, lack of post harvest treatment and technology for
product development, Inadequate trained manpower and inadequate infrastructure for large scale
harvesting in the event of gregarious flowering. Keeping in view the potential of Bamboo, its present
poor market linkage and sub optimal level technology application for manufacture of value added
products in the industrial and cottage sector, the National Mission on Bamboo Technology & Trade
development has been mooted by Planning Commission to accord Bamboo development a strategic role
in rural economy, carbon sequestration and environmental integrity, poverty alleviation and bamboo
based handicrafts & industrial development. The task for coordinating the National Mission on Bamboo
Technology and Trade has been entrusted by the Prime Minister to the Ministry of Agriculture. The Mission document had a target of 2 million ha under bamboo during the Xth Plan involving an
investment of Rs. 2,608 crores. The Mission document also envisages the integration different
Ministries/ Departments for the holistic development of the sector, integrated programme expansion of
plantations of bamboo species, its scientific management with the involvement of JFM committees,
local initiatives and entrepreneurship for presenting this raw material for the Industries and assisting the
Industry to access and apply modern technology for producing globally competitive new generation
bamboo products. The other features of the Mission include Technology Development and Transfer for
Planting, Technology intervention on process and products including standards and codes, Handicraft
development including training, Trade and Market Development for bamboo products, and Technology
development for building material.
1.2 About Nagaland
With a view to promote and develop Bamboo and its potentials as a major Economic activity in the State
both as a resource and as enterprise the Government of Nagaland adopted the Nagaland Bamboo Policy
in 2004 (vide notification No.APC/P1/2004). The policy envisions a planned, scientific and holistic
approach to the cultivation and management of bamboos on a sustained basis can be an inexhaustible
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E m e r g e n t V e n t u r e s
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Emergent Ventures India Pvt. Ltd. Sustainable Solutions for Environment
Emergent Ventures India Pvt. Ltd., Plot No. 19, Sector 33, Gurgaon, Haryana 122 001Phone: 91 124 4353100, email: contact@emergent ventures.com , Web: www.emergent ventures.com
7
E m e r g e n t V e n t u r e s
would have two approaches namely: Development of Bamboo as a Resource, Development of Bamboo
as an Enterprise.
1.3 About International Carbon Market
Carbon is a tradable commodity as a result of the evolution of financial mechanisms of climate change
mitigation. International carbon market can be categorized into two structures, first the Compliance
market, also called regulatory market that may be of Kyoto type that allows transactions in terms of well
defined market based flexibility mechanisms like CDM, JI and IET or of Non Kyoto type that have been
developed as many state legislations in the USA and as New South Wales GHG Abatement Scheme in
Australia. Second structure of the carbon market is Voluntary market; segments of Voluntary carbon
market (VCM) are legally binding ones like Chicago Climate Exchange and the Over the Counter (OTC)
market that includes the activities of companies and individuals who offset their emission footprints
from activities, products or services.
1.3.1 Clean Development Mechanism (CDM) CDM is a mechanism established and developed under Kyoto Protocol to reduce Green House Gas
emissions.
At the 1992 Rio Earth Summit, countries agreed to the United Nations Framework Convention on
Climate Change (UNFCCC) in response to growing evidence that human activity was contributing to
global warming. The UNFCCC contained a non binding commitment by industrialized countries (listed in
Annex I of the Convention) that they would reduce their emissions of greenhouse gases to 1990 levels
by the year 2000. But soon it became clear that this wasnt enough to avoid dangerous climate change.
So in 1995, at the first Conference of Parties (COP) after the Convention entered into force, parties
began to negotiate a Protocol that would set tighter and legally binding targets for reducing greenhouse
gas emissions.
Therefore, in 1997 at the 3rd COP to the Convention in Japan, Parties agreed on a Protocol that set
binding targets for industrialized countries (Annex 1 countries) to reduce their emissions by an average
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8
E m e r g e n t V e n t u r e s
of 5% below 1990 levels in the period 2008 2012, The Protocol was given the name of the city in which it
was negotiated Kyoto .
Now for assisting Annex 1 countries in reducing emissions up to specified level and helping them in
reducing cost of such reduction a marketing mechanism was developed called Clean Development
Mechanism (CDM) on the ground that emission reduction at any place across the globe will benefit the
global environment equally. Under CDM, Certified Emission Reductions (CERs) are allotted to the
projects in Non Annex 1 countries (developing countries) which result in reduction of green house gases
emissions. Buyers in Annex 1 countries to meet their reduction targets can buy these credits from these
developers.
Various agencies have been authorized and specified for governing the whole procedure. As India is part
of Non Annex 1 countries any project, which results in green house gas emission reduction can be, a
potential CDM project.
1.3.2 Voluntary Carbon Market (VCM) Voluntary Carbon Market has developed considerably in the past few years as an alternative to the
Compliance Market. The Parties such as the USA, Canada and others have no legally binding targets as
they have not ratified the Kyoto Protocol. Companies and individuals in these nations are realizing that
they must take action to offset and reduce their emission footprints, as a sense of Corporate Social
Responsibility or to gear up for possible future legislations.
Potential for ERs under Voluntary Carbon Market: Climate, Community and Biodiversity Standards (CCBS)
Background: The Climate, Community and Biodiversity Standards were launched by the Climate,
Community, and Biodiversity Alliance (CCBA) in cooperation with independent experts and non
governmental organisations. The CCBA is a unique partnership among research institutions,
corporations and non governmental organizations (NGOs). The first version of the standards was
released in May 2005. The standard is currently being reviewed and the second version is expected to
be released by October 2008.
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9
E m e r g e n t V e n t u r e s
Goals: CCBAs main goal is to provide regulations and guidance to develop land use projects that
mitigate climate change and deliver multiple benefits in an integrated sustainable manner. Hence, CCBA
mainly concentrates on the generation of positive co benefits and restricts its carbon assessment to the
acceptance of methodologies from other standards.
CCBS is standard for climate, community and biodiversity co benefits generated from a land use land
use change and forestry projects. It is not used on standalone basis and needs a carbon accounting
standard for estimation of net removals of GHGs from atmosphere.
Voluntary Carbon Standard (VCS)
Background: The VCS is a standard for all greenhouse gas offset types with exception of new HFC project
and was developed by non governmental organisations, industry associations, certification companies,
project developers, and offset buyers. The first AFOLU version was released on 19th November 2007
and is part of draft VCS second version.
Goals: The standard is designed to validate and verify rigorous and trustworthy voluntary greenhouse
gas offsets. In addition, the standard aims to generate permanent carbon credits called VCUs (Voluntary
Carbon Units), keep validation and verification costs low, and ensure basic environmental and social
benefits.
1.4 About Emergent Ventures India
EVI is a network of professionals with Expertise in Clean Development Mechanism, Voluntary Carbon
Market, Forestry, Technology and Finance. EVI is currently working on a number of projects for GHG
Emission Reduction under CDM.
EVI has experts for CDM methodologies this helps us develop Project Design Documents (PDDs)
with better articulation of baseline and Additionality logic. We design PDDs with reviews by high
quality experts to maximize value for carbon assets for our clients.
EVI is working with many big buyers for CERs/VERs. We deliver the best value for CERs to our
clients owing to our strong buying selling network. The market is rapidly evolving with
appearance of forward contracts, options, derivatives, and securitization. Our insights into CDM
market help us structure the best deal for selling CERs.
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10
E m e r g e n t V e n t u r e s
We bring in associations with investors who would invest in the project (If required) based on
the CERs/VERs revenue stream (based on project profile). This makes project finances more
attractive.
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11
E m e r g e n t V e n t u r e s
2. METHODOLOGY OF FEASIBILITY ASSESSMENT
For conducting this study the following methodology was been adopted by EVI:
1. Field visit for detailed examination
2. Data Collection & Analysis
3. Estimation of potential Emission Reductions/ Net Removals
4. Evaluation of Opportunities
5. Recommendations
Consultants from EVI visited different locations and had detailed discussions, and held meetings with
NBDA and CBTC personnel. Data was collected from concerned officials, which are the basis for this
report.
After collecting data/information all opportunities were evaluated on various parameters
Checking compliance with UNFCCC guidelines/ applicable Voluntary Standards
- CERs/VERs generation potential
- Possible Additionality
- Applicability of Baseline and Monitoring Methodology
- Complexity of new methodology development in case there is no approved methodology
available for the project type
- Monitoring requirements
Based on above parameters all opportunities were categorized into three categories
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12
E m e r g e n t V e n t u r e s
- Green: Definite CDM/VCM opportunities, should be taken up
- Orange: Potential CDM/VCM project, wait and watch, a re look on these opportunities needed
after sometime (say 3 months)
- Red: Non CDM/ VCM projects
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13
E m e r g e n t V e n t u r e s
3. OPPORTUNITY ANALYSIS
1. Carbon sequestration Bamboo Plantations, Harvested Bamboo Products
2. Energy components Bamboo Gasification for power and thermal use, charcoal making etc.
3.1 Carbon Sequestration
3.1.1 Bamboo plantations Promotion of bamboo plantations on individual land holdings as well as community lands which form
89% of the total area of the state through the active participation of the Village Councils, (VDBs) and
(VFCs) is one of the principle activity implemented under Bamboo Mission. This involves introduction of
bamboos having commercially superior and desirable attributes for large scale cultivation to augment
the existing local varieties of bamboos in the state. Priority is being given to synchronize bamboo
cultivation to with existing farming practices, such as Jhum ing, horticulture etc. to maximize interim
benefits. The details of the Bamboo plantations undertaken so far are provided in Table 6 below:
S. No. District 2006 (ha.) 2007 (ha.) 2008 (ha.) 1 Kohima 180 300 550
2 Mokokchung 180 1000 1091
3 Tuensang 180 350 500 4 Mon 180 262 550 5 Zunheboto 180 250 450 6 Wokha 180 250 450 7 Phek 180 350 550 8 Dimapur 180 350 600 9 Peren 100 250 400 10 Kiphire 130 250 400 11 Longleng 100 280 400 12 Others 730 0 1559
Total 2500 3892 7500
Species planted 7 :
6 As provided by Nagaland Bamboo Development Authority 7 Based on information from NBDA and CBTC
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E m e r g e n t V e n t u r e s
Bambusa tulda, Bambusa nutans, Dendrocalamus hamiltonii, Dendrocalamus asper, Ochlandra
travancorica, Teinostachyum dullooa.
Pre project land use pattern 8:
From above information we conclude that about 80% of total area planted is eligible. Plantations in
degraded forest areas have provisionally been excluded.
Site visits by EVI: Between 19 and 25 May 2008, EVI team visited several plantation sites accompanied by NBDA and CBTC
officials in Dimapur and Mukokchung districts of Nagaland for preliminary assessment of existing
bamboo plantations, understanding local socio economic issues and interactions with CBTC and NDBA
resource persons. The list of sites visited during the tour is given in Table below.
8 Based on information from NBDA and CBTC
Pre project land use Year 1950 Year 1960 Year 1970 2006 Site 1 Dimapur Shifting cultivation Shifting cultivation Shifting cultivation Site 2 Peren Shifting cultivation Shifting cultivation Shifting cultivation Site 3 Mokokchung Shifting cultivation Shifting cultivation Shifting cultivation Site 4 Kohima Degraded Forest land Degraded Forest land Degraded Forest land Site 5 Wokha Shifting cultivation Shifting cultivation Shifting cultivation
Site 6 Zunehebuto Degraded Forest land Degraded Forest land Degraded Forest land Site 7 Tuensang Shifting cultivation Shifting cultivation Shifting cultivation
Site 8 Phek Degraded Forest land Degraded Forest land Degraded Forest land Site 9 Mon Shifting cultivation Shifting cultivation Shifting cultivation Site10 Longleng Shifting cultivation Shifting cultivation Shifting cultivation Site 11 Kepheri Shifting cultivation Shifting cultivation Shifting cultivation
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15
E m e r g e n t V e n t u r e s
Sl. No
District Plantation Site
Area planted Spacing
m x m
Species Land use Status Eligibility for CDM / VCS 2006
2007 2008
1
Dimapur
Razhapa 20 50+ 5x5 B. tulda (75%)
B. nutans (20%)
B. balcooa (5%)
Fallow grassland/ farmland
2 Pushto 40 30 30 5x5 B.tulda (70%)
B. nutans (20%)
b. nutans ( 10%)
Jhum cultivation + area of bamboo flowering
3 Ghobovi 50 50 5x5 B.tulda (75%)
B. nutans (25%)
Jhum cultivation area +forests
4 Homeland 100 50 5x5 B. tulda (80%)
B. nutans (15%)
B. balcooa (5%)
Fallow farmland
5 Peren
Chaluki 100 (planned) area of bamboo flowering
6
Mokok chung
Khatsung 130 70 7x7 B.tulda
B. balcooa
D. hamiltonii
+ paddy + banana
Area under Jhum cultivation & fallow barren hill slopes
7 Merangkung 100 25+ 5x5 B.tulda
B. balcooa
D. hamiltonii
+ paddy
Area under Jhum
cultivation &
fallow barren hill
slopes
8 Chu Chuyimlang
100 50 5x5 B.tulda
B. balcooa
D. hamiltonii
+ paddy
Area under Jhum
cultivation &
fallow barren hill
slopes
9 Khensa 100 50+ 5x5 B.tuldaB. balcooa
D. hamiltonii
Area under Jhum cultivation & fallow barren hill slopes
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16
E m e r g e n t V e n t u r e s
+ paddy
Total 40 630+ 475+
Summary of observations:
1. Total plantation area visited: 1100+ ha
2. Species Composition 9: Bambusa tulda (70%), Bambusa nutans (10%), Bambusa
balcooa (5%), Dendrocalamus hamiltonii (5%), other
miscellaneous species (10%).
3. Average spacing: 5 m x 5 m
4. Propagation: By seedlings (80%), by rhizomes (20%)
5. Percentage of eligible land confirmed: ~70% (in sampled area)
Land use details from other districts:
Information on pre project land use pattern for plantation sites in all districts were collected from NBDA
and CBTC.
21% of the land planted is degraded forest whereas the rest are areas under shifting cultivation.
The plantations in degraded forest areas are provisionally being excluded from the eligible land
area as their exact status around 1990 is not known. As per CDM AR (and VCS) guidelines, the
land considered for CDM project should not have been a forest since 1 st January 1990.
Hence, for calculation of potential carbon credits that can be generated, following plantation
areas will be considered:
Plantation area eligible for CDM/VCM benefits = 70 % * (80% * Total Plantation Area) 10
9 This is as per the information provided by NBDA officials. 10 70% and 80% are the percentages of area eligible for CDM/VCM under sampled plantation area and the total plantation area.
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17
E m e r g e n t V e n t u r e s
Potential Emission Reductions and revenue generation:
Assumptions for calculations:
I) Number of clumps/ha: 400/ha (5m X 5 m spacing, as observed)
II) Average recruitment rate of culms: 10 culms/yr/clump 11
Thus, average number of culms per clump: 50 culms for a mature clump of 5 years age
Average number of culms removed per clump from 5th year onwards: 10
III) Average diameter and height of culm 12:
SL No. Species Average
Diameter (cm)
Average Height (m)
1 Bambusa tulda 5 16
2 Bambusa nutans 5 15
3 Dendrocalamus hamiltonii 10 10
4 Bambusa balcooa 8 5
IV) Specific Gravity of bamboo: 0.35 13
V) Survival rate (after gap filling) = 90%14
Eligible land for CDM/VCM benefits:
S. No. Year of Plantation Total area under
Plantation (ha)
Area Eligible for
CDM/VCS (ha)
1 2006 2500 1400
2 2007 3892 2180
11 http://planning.up.nic.in/innovations/inno3/fw/bamboo.htm 12 Chowdhury, M.L. (ed) (2008), One Year of National Bamboo Mission, pp. 97 98, CBTC, Guwahati. 13 http://www.simetric.co.uk/si_wood.htm#top 14 Information from NBDA & CBTC
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E m e r g e n t V e n t u r e s
3 2008 7500 4200
4 2009 10000* 5600*
5 2010 10000* 5600*
Total 33892* 18980
*Projected figures
Please note that the emission reductions/ net removals given in the sections below are indicative, based
on certain assumptions on past studies as available in literature. Actual ER generation may depend on a
number of factors. The exact volume of credits would depend on more detailed assessment of
technologies used, baseline scenarios, local conditions etc.
The value of credits would also vary depending on the type (VER, CER), compliance with other standards
(CCB, VCS), the year in which the credits accrue and many other factors which affect the delivery
reliability of the credits.
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Projection for VERs/CERs & Carbon Revenues from Bamboo Plantations Year Eligible
Planted Area (ha)
Cumulative eligible Area (ha)
Total NRs
t CO2
Losses in t CO2 t CO2 Net NRst CO2
NR Buffer
ConsER ELeakage from
land prep Loss from harvesting
Total Leakage
1 2 3 4 5 6 7 8 9
5+6 (4 7) 40% of 8 (2006 1400 1400 0 15913 0 15913 15913 63652007 2180 3580 47167 24779 0 24779 22387 8955 2008 4200 7780 167779 47740 0 47740 120039 48015 2009 5600* 13380 429890 63653 0 63653 366237 146495 2010 5600* 18980 867755 63653 0 63653 804102 321641 2011 0 18980 1474611 0 233884 233884 1240726 496291 2012 0 18980 2024725 0 598075 598075 1426650 570660 2013 0 18980 2631226 0 1299728 1299728 1331498 532599 2014 0 18980 3008559 0 2235265 2235265 773294 309318
2015 0 18980 3197226 0 3170802 3170802 26423 10569 2016 0 18980 3197226 0 3170802 3170802 26423 10569 2017 0 18980 3197226 0 3170802 3170802 26423 10569 2018 0 18980 3197226 0 3170802 3170802 26423 10569 2019 0 18980 3197226 0 3170802 3170802 26423 10569 2020 0 18980 3197226 0 3170802 3170802 26423 10569 2021 0 18980 3197226 0 3170802 3170802 26423 10569 2022 0 18980 3197226 0 3170802 3170802 26423 10569 2023 0 18980 3197226 0 3170802 3170802 26423 10569 2024 0 18980 3197226 0 3170802 3170802 26423 10569 2025 0 18980 3197226 0 3170802 3170802 26423 10569
Total 6359676 2543870
Annual ER generation & revenue 317984 127194
Annual ER generation in t/ha & revenue in Rs. /ha 16.75 6.70 *Conservative projection; **Assumption: 1 ER= $5; 1$=Rs42
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E m e r g e n t V e n t u r e s
3.1.2. Harvested bamboo products Bamboo can be used for almost all parts of houses, including posts, roofs, walls, floors, beams, and
fences. People
also
use
Bamboo
to
produce
mats,
baskets,
tools,
handles,
hats,
traditional
toys,
musical
instruments and furniture.
Thus Bamboo can be used as a replacement of building materials, and might reduce emissions
associated with the production of baseline building material (e.g. concrete). Other products like
furniture and household instruments/ composites can replace conventional energy intensive products.
These options theoretically fall under the scope of Climate Change mitigation, but being complexities in
monitoring and unavailability of methodology for estimation of Emission Reductions, it would be
difficult to actually create carbon credit revenue out of these products.
3.2 Energy Components Bamboo can be used as a source of bio energy. Bioenergy is considered to be GHG neutral and its use
poses hardly any net radiative forcing to the atmosphere. Given the large amounts of biomass that
Bamboo can produce it provides a very interesting source of bio energy in the tropics 15. When grown as
an agricultural crop the biomass produced by Bamboo can be considered as a renewable source of
energy. Like any other biomass Bamboo can also be directly burnt for heat and/or power generation. It
can be used to replace carbon intensive fossil fuel or non renewable biomass.
3.2.1 Direct Burning as a replacement of coal or non renewable wood: Bamboo biomass can replace coal in thermal applications. Such applications are eligible under CDM and
VCM both. Small scale CDM methodology AMS I.E Switch from Non Renewable Biomass for Thermal
Applications by the User can be used. This is a potential activity under programmatic CDM also. This is
not a prime activity in the state. Replacing sub bituminous coal for bamboo biomass would result in
emission reduction of 1.5 t CO2 per t of bamboo biomass. Similarly replacement of non renewable wood
for thermal application would result in emission reduction of 1.7 t CO2 per t of bamboo biomass.
3.2.2 Power Generation from bamboo biomass: Approved CDM methodologies AM0042 Gridconnected electricity generation using biomass from
newly developed dedicated plantations, ACM 0006 Consolidated methodology for grid connected
electricity generation from biomass residues and AMS ID Grid connected renewable electricity
generation would be applicable for power generation project activities. Emission reductions achievable
from per kW installed capacity in this case are 2.1 t CO2.
15 Fielden, D, 1999. Energy farming with the big Bamboo. Renewable Energy World, March 1999, 23 27.
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E m e r g e n t V e n t u r e s
3.2.3 Bamboo Gasification for heat and power: Bamboo Gasification is one of the manufacturing methods which make Bamboo heated to form
products under
the
condition
of
isolating
air
or
in
limited
supply
of
air.
Bamboo
gas
can
be
used
for
heat
and power. Thermal application of bamboo producer gas is not prevalent in the state as of now. This is a
potential project activity. Power generation activity would gain emission reductions in the following
manner:
Assumptions
NER Grid emission factor 16 t CO2/MWh 0.46Run days per annum 330
Run hours per day 20Auxiliary consumption rate 10%
Installed Gasifiers Capacity
kW Number of
units Annually electricity generation (MWh)
Auxiliary consumption (MWh)
Net Generation (MWh)
35 1 184.8 18.5 166
100 1 528.0 52.8 475
Gasifiers planned in near future Capacity
(KW) No. of units
Annually electricity generation MWh
Auxiliary consumption MWh
Net Generation MWh
35 6 1108.0 110.8 998
75 2 792.0 79.2 713
25 2 264.0 26.4 238
CER Estimations (t CO2 /year)
Installed gasifiers 295.09Planned gasifiers 896.23
Total 1191.33
3.2.4 Bamboo Charcoal: Bamboo Charcoal is a product of Bamboo pyrolysis. It has a number of uses. Bamboo Charcoal can be
used to replace coal for thermal applications.
16 CO2 emission database 2007 08. Central electricity Authority.
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E m e r g e n t V e n t u r e s
Assumptions 17
Capacity of Charcoal units under operation (tonnes per day) 12.5
Running day per annum 270Annual Charcoal production (tonnes) 3375Calorific value of wood charcoal (TJ/Gg) 29.5Co2 Emission factor of Non renewable wood (tonne/TJ) 112Co2 Emission factor of Coal (tonne/TJ) 96.1Charcoal sold in the domestic market (tonnes) ~ 60% 2025Charcoal sold to ferro alloy industry (tonnes) ~ 40% 1350
CER estimations
Scenario 1 Non renewable Wood Charcoal as baseline Current
For industrial application t CO2/year 4460.4For Domestic use t CO2/year 6690.6Total t CO2/year 11151
Scenario 2 Coal as baseline Alternative
For industrial application t CO2/year 12645.0For Domestic use t CO2/year 18967.5Total t CO2/year 31613
17 Based on information from NBDA and IPCC default value.
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E m e r g e n t V e n t u r e s
4. PROJECT STRUCTURING
4.1
Plantation Project
Bamboo plantations are eligible for carbon credit generation under CDM and VCM.
In its 19 th meeting the A/R Working group of UNFCCC agreed that, the environmental integrity of the
CDM activities is not affected by considering bamboos as being equivalent to trees in the context of A/R
CDM project activities. Bamboos may be treated in the same way as trees in the context of A/R CDM
project activities. Bamboo plantations are also eligible under VCS 2007 under Afforestation,
Reforestation and Revegetation (ARR) activities and also under CCB Standards for VER generation.
Applicable A/R Methodologies under CDM (also applicable for VCS 2007): Project Size: Large Scale
Probable AR CDM Methodologies applicable for project type:
i) ARAM0004 (Reforestation or afforestation of land currently under agricultural use)
ii) ARAM0008 (Afforestation or reforestation on degraded land for sustainable wood production)
Applicability Conditions in Methodology:
S.N. Applicability Condition AR
AM0004 AR
AM0008
1 Lands to be afforested or reforested are severely degraded.
2 The project activity does not lead to a shift of pre project activities outside the project boundary
X
3 The project activity can lead to a shift of pre project activities outside the project boundary
X
4 The land would be expected to remain degraded in the absence of the project activity
5 Environmental conditions and human induced degradation prevent
the encroachment of natural forest vegetation.
6 Site preparation involving slash and burn practices shall be restricted to non tree vegetation
X
7 Grazing shall not occur within the project boundary.
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E m e r g e n t V e n t u r e s
8 Biomass of non tree vegetation is in a steady state or decreasing for all baseline land uses
9 No biomass burning for site preparation X X
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E m e r g e n t V e n t u r e s
Baseline Scenarios to be considered:
ARAM0004 ARAM0008
I. No growing trees or woody perennials exist
II. No trees or other woody perennials will start to grow at any time during the crediting period
III. No trees or other woody perennials will reach the threshold for the national definition of forest due to ongoing cutting and burning cycles that are part of shifting cultivation systems;
I. Plantation forestry for commercial woothe proposed project;
II. Plantation forestry for other than commconservation forest);
III. Permanent agricultural cropping activit
IV. Remaining as the existing land use, namland.
Data requirement for the methodologies needed to be supplied by NBM:
S.N. Data Parameters Description Possible Data Source Timeline of Data
1 Historical land use/cover data
Determining baseline approach, demonstrating
eligibility of land Local Publications, government, interview
Earliest possible up tnow
2 Land use/cover map Demonstrating eligibility of land, stratifying land
area Landsat Before 1990
and most recent date
3 Landform map Stratifying land area most recent date Local government
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E m e r g e n t V e n t u r e s
4 Soil map Stratifying land area most recent Local government and institutional agencies
5 Regional, local forestry inventory
Demonstrating eligibility of land, stratifying land
area Local government
and institutional
agencies
Satellite imaof 1989/1990and most recent date
6 Digital Elevation Model (DEM)
Demonstrating eligibility of land, stratifying land
area e.g. SRTM, ASTER Most recent
7 National and sectoral policies: National and sectoral
Additionality consideration Local government Before 11 N2001
8 IRR, NPV (if any, depends on the way of additionality analysis)
cost benefit ratio, or unit cost of serviceIndicators of investment analysis
Local government Most recentdate Local
Calculation
9 Investment costs (if any, depends on the way of additionality analysis)
Including land purchase or rental, machinery, equipments, buildings, fences, site and soil preparation, seedling, planting, weeding, pesticides, fertilization, supervision, training, technical consultation, etc. that occur in the establishment period.
Local Local statistics, published data and/or survey (if any, depends on the way of additionality analysis)
Most recentdate,
10 Operations and maintenance costs
Including costs of thinning, pruning, harvesting, replanting, fuel, transportation, repairs, fire and disease control, patrolling, administration, etc.
Local Local statistics, published data and/or survey (if any, depends on the way of additionality analysis)
Most recentdate
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E m e r g e n t V e n t u r e s
11 Transaction costs Including costs of project preparation, validation,
registration, monitoring, etc. National and International DOE
Most recentdate
12 Revenues Those from timber, fuel wood, non wood
products, with and without CER revenues, etc Local Local statistics, published data and/or survey (if any, depends on the way of additionality analysis)
Most recentdate
13 Local yield/volume tables
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Baseline and additionality criteria to be considered:
The baseline for a CDM project activity is the scenario that reasonably represents the anthropogenic
emissions by sources of greenhouse gases (GHG) that would occur in the absence of the proposed
project activity. A baseline shall cover emissions from all gases, sectors and source categories listed in
Annex A (of the Kyoto Protocol) within the project boundary. A baseline shall be deemed to reasonably
represent the anthropogenic emissions by sources that would occur in the absence of the proposed
project activity if it is derived using a baseline methodology referred to in paragraphs 37 and 38 of the
CDM modalities and procedures.
A methodology 18 is an application of an approach as defined in paragraph 22 of the CDM A/R modalities
and procedures, to an individual A/R CDM project activity, for the determination of the baseline
scenario. A baseline methodology should reflect aspects such as environmental conditions and past land
uses and land use changes. No methodology is excluded a priori so that project participants have the
opportunity to propose a methodology.
In this case, shifting cultivation is the most probable scenario that can be adopted as baseline.
Additionality of a CDM programme of activities (PoA All types)
A PoA19 is additional if it can be demonstrated that in the absence of the CDM the proposed voluntary
measure would not be implemented, or the mandatory policy/regulation would be systematically not
enforced and that noncompliance with those requirements is widespread in the country/region, or that
the PoA will lead to a greater level of enforcement of the existing mandatory polic/regulation. This shall
constitute the demonstration of additionality of the PoA as a whole.
Aspects of National Bamboo Mission that has to be highlighted along with the documentary
evidences to establish Additionality of the project.
Consideration for Carbon credits and CDM/VCM benefits during project conceptualization
Uniqueness of NBM as the pioneer project for systematic and scientific bamboo cultivation and
utilization in India
18 , 18: UNFCC Glossary of CDM Terms (http://cdm.unfccc.int/EB/036/eb36_repan32.pdf)
E m e r g e n t V e n t u r e s
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E m e r g e n t V e n t u r e s
The technological, financial, operational and other constraints faced by NBM and how the
project would not be feasible without the additional financial means from the sale of Carbon
credits
Additional Value for projects with cobenefits in Voluntary Carbon Market
Social and environmental responsibility has become an increasingly important part of the marketing
strategies of large companies. Cobenefits in the Voluntary Carbon Markets progressively capture a
great value. Hence a high level of co benefits can attract investment in Forestry based Climate Change
Mitigation Projects. Well managed and sustainable projects are closely associated with a variety of co
benefits, such as increased employment and income generation, biodiversity and watershed
conservation, and the provision of wood products and recreational services. These are likely to be
greatly appreciated by carbon credit buyers and compose a significant value proposition to carbon
offsets.
The CCBS has developed a set of basic compulsory regulations that must be met prior to a project
achieving certification. The compulsory basic requirements include net positive community impacts,
mitigation of negative offsite community impacts, net positive biodiversity impacts, and mitigation of
negative offsite biodiversity impacts.
According to AFOLU VCS (2007), projects have the potential to improve socio economic and
environmental impacts, but may also have negative impacts. Hence, prior to certification, the VCS
requires projects to identify negative environmental and socio economic impacts and undertake steps
to mitigate these.
Both VCS 2007 and CCB accept approved A/R methodologies.
4.1.2.
Harvested bamboo
products
HWP is eligible for carbon credit generation under VCS 2007. Studies are required to benchmark the
baseline and project activity emissions in this sector by using actual sectoral data of emissions in
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E m e r g e n t V e n t u r e s
manufacturing of products. As of now no such studies are available. A number of methodological issues
including monitoring may constrain such projects.
4.2 Energy components:
4.2.1 Bamboo Gasification for power/thermal use: CDM Methodology available for biomass gasification are AM0042 Gridconnected electricity generation
using biomass from newly developed dedicated plantations, ACM 0006 Consolidated methodology for
grid connected electricity generation from biomass residues and AMS ID Grid connected renewable
electricity generation. Prima facie it seems a potential CDM POA activity. This is also eligible in VCS 2007
and other VCM standards. Bamboo gasification for thermal use is an eligible activity under the CDM
category AMS I E Switch from Non Renewable Biomass for Thermal Applications by the User . Also
eligible for VERs.
4.2.2 Charcoal Preparation and thermal use: CDM Methodology available for this sector are AMS I E Switch from Non Renewable Biomass for
Thermal Applications by the User and AMS III K Avoidance of methane release from charcoal production
by shifting from pit method to mechanized charcoaling process. This is a potential CDM POA activity,
also eligible for VERs when NBM can prove that it charcoal produced is replacing non renewable wood
biomass/ coal or charcoal made from non renewable biomass.
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E m e r g e n t V e n t u r e s
5. Sequence of Activities for Carbon Credit project document development
5.1 CDM project Cycle
Step1 -Preparing a CDM project for validation Before submission of a project for validation, the developers need to do the following:
Methodology Selection There are two categories for each of the sectors i.e. large scale project and small scale projects. The
basket of small scale projects comprised of following.
o Renewable
energy
projects
up
to
15MW
installed
capacity.
o Energy savings of 60 GWhe.
o CO2 abatement of 60 kt/year.
o A&R sequestration of 16 kt CO2; developed or implemented by low income
communities.
Any other project which is outside the above areas will fall into large scale project activities.
There are different methodologies for each of the sectors and projects. One needs to choose a particular
methodology which is suitable for that case. If approved methodology is not available then one needs to
develop new methodology. The new methodology will include identification of baseline scenarios,
formulae to estimate emission reduction and monitoring mechanism for CDM project activity.
A UNFCCC approved Validator (known as Designated Operating Entity or DOE) will review the New
Methodology and submit to the Executive Board (EB). A Methodology Panel appointed by EB reviews
the New Methodology for issues such as Transparency, Accuracy and Implementability to make a
recommendation about whether it should be approved.
This process may take 6 months or more.
Project Design Document (PDD) It is the document that outlines
The Project Concept
How the project reduces emissions and estimates of emission reductions
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How the project is Additional (is not business as usual; the project overcomes a number of
barriers, is not a common practice and without CDM benefits is unlikely to be implemented)
Monitoring methodology for monitoring future emission reductions.
PDD has to be consistent with Approved or proposed New Methodology.
DOE makes an assessment of whether the PDD is consistent with approved methodology or not.
Approval of Host Country PDD would be submitted to Ministry of Environment and Forest (MOEF) for host country approval.
MOEF would ask developers to present the case in front of government officials to show that the project
is in line with sustainable development priorities of India and doesnt create any negative impact on
environment, local community or the national resources.
Approval from MOEF takes around 6 weeks.
Step -2: Validation Validation is an audit of the project conducted by UNFCCC approved validator. There are a number of
well known Validators such as SGS, DNV, TUV, BVQI and JQA etc.
Validation is essentially the point at which a project is approved or rejected. While in a formal sense
registration by the Executive Board constitutes final approval, evaluation of Validator plays a significant
role in EB approval and a Validator may refuse to submit the document to EB unless he/she is satisfied
with the PDD.
During validation process the following factors are checked:
Alignment of PDD with approved/ proposed Methodology
Correctness of additionality arguments, appropriateness of choice of baseline scenarios, client
preparedness for monitoring the emission reductions etc.
Stakeholder acceptance of the Project. Stakeholders are all those entities that are likely to be
affected by the Project and include local community, local regulatory bodies etc. The validation
process includes a 30 day public comment period during which stakeholders; the public and
NGOs can make submissions to the validator about why the project shouldnt be accepted.
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If the validator believes that the project qualifies as per CDM guidelines, they submit a Validation Report
to the Executive Board, which makes a recommendation that the project be registered.
The Validation Report is made public when it is sent to the Board and must include an explanation of
how the comments received by the Validator have been taken into account.
Step 3: Registration by the Executive Board Registration by the Executive Board is given automatically, unless one of the countries involved in the
project, or at least 3 members of the Executive Board requests a review. A small scale project takes 4
weeks for automatic approval; a large project takes 8 weeks for such approval if there is no request for
review.
Step 4: Verification, certification and issuance of emission reduction credits Once a project is registered the developer begins to monitor the reduction of emissions according to the
plan they presented in the PDD and compiles a monitoring report.
Periodically the client appoints a DOE as a Verification Agency (which has to be different from the one
that did the validation) that verifies the actual emission reductions according to the Monitoring Plan
submitted in PDD and compiles a Verification Report and submits to EB. This report is made public.
After EB approves, Certificates of Emission Reductions (known as Certified Emission Reductions or CER)
are issued.
Verification can be done for any length of time; however for this particular project it is suggested to go
for annual verification to reduce cost of verification.
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E m e r g e n t V e n t u r e s
NBM
Advisors:EVI
DOE DNA
Validationreport
Host countryapproval
BuyerCERs
DOE
Verificationreport
LocalStakeholders
Stakeholders consultationreport
Globalstakeholders
Feasibility & PCN
EngagementEngagement
30 days comment period
8 week appeal process
ERPACDM project cycle
5.2 VCM project cycle:
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E m e r g e n t V e n t u r e s
Carbon Market Dynamics Buyers: Currently there are two types of buyers in the market:
Government fund (Belgium, Canada, Japan, World Bank etc)
Private funds.
Government funds are the biggest buyers in the market, but the rate provided by them is much lower
than as compared to private players.
Pricing: Key drivers of price
Risk of CER delivery
o Methodology approval risk
o Project registration risk
o Project Implementation Risk
o Operational risk (under/over performance)
o Creditworthiness the project sponsor and the viability of the Project
o Country risk (includes Kyoto Protocol risks) Confidence in the quality of the ongoing
carbon asset management by the Counter Party (Host Countries) and hence expectation
of delivery of CERs over the life of the project
Demand supply balance of ERs
o Demand ability of Annex 1 participant to meet the reduction targets by improvements
in their own countries.
o Demand affected by factors such as availability of gas, weather changes.
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o Supply of ERs from other sources such as JI20 (projects in other Annex 1 countries), Hot
Air21 (from CIS countries, Russia etc)
o Supply of CERs (India, China, Brazil etc are building a huge pipeline which will come in
the market by 2008)
o CERs from areas such as afforestation/reforestation activities, which can be very big.
Additional environmental and social benefits coming due to project (buyers tend to pay a
premium for projects with big positive socio economic impact).
Demand supply balance is likely to vary significantly with time. Accordingly there is a huge uncertainty
about prices.
Structure of the Emission Reduction Purchase Agreement (ERPA) is crucial. Prices will vary depending on
Whether it is a spot contract or forward contract
Amount of upfront payment required, and applied discount rates in case of upfront payment,
Guarantee the seller is willing to undertake in case it fails to deliver upon contract
commitments, penalties for non delivery, and sellers capacity to pay the penalties;
Current Market Scenario: While government buyers seem to aim for CER prices at 67 Euros for projects with a balanced risk distribution, private buyers seem willing to accept 10 12 Euros.
Possible Sale Structures: There are various CERs sale structures used in the market based on the project
profile, and risk appetite of project promoter.
Fixed + Float
o In large contracts it is possible to link CERs prices to the European Union Allowance 22 (EUA)
prices (with some discount) to help clients maximize CERs value if market prices go up in
20 JI: Joint Implementation- Similar to CDM, but implemented by Developed countries in developed countries21 Hot Air is a colloquial term used to describe emission reduction traded by CIS countries. CIS countries are already
emitting less than their targets as their economy is witnessing slump, these emissions are thus traded in the market.
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E m e r g e n t V e n t u r e s
future. Discounts of Euro 810 prevail and therefore for clients willing to accept price decline
risks current price could be ~ Euro 15 (EUA prices ~ 23 Euro).
o The structures have a price floor to ensure protection against steep price fall.
Fixed
o In case investment is brought in by CERs buyer, CERs are sold at a fixed price for the
crediting period (range from Euro 4 Euro 8) depending on quality of CERs, risks etc.
Fixed till 2007 the start of first target period for Annex 1 countries, and then Floating price structure
for future CERs.
In comparison with compliance markets, voluntary markets are less mature and trade in lower volumes.
There is no umbrella regulator in the voluntary carbon market. Voluntary market considers less complex
and lest costly ways to handle the issue of non permanence than the current approach of temporary
credits under the CDM. In Voluntary Carbon Standard 2007 (AFOLU) and CarbonFix Standard, two major
voluntary standards for forestry it is done by setting a buffer reserve based on its assessment of
potential risks of carbon loss.
Observations from voluntary carbon market suggest that forestry accounted for the highest 36% of the
transaction volume in the year 2006 as compared to mere 1% of expiring credits from CDM. Growing
45%, in the year 2007 Agriculture and forestry projects contributed to 18% of total OTC market
transaction 23.
Voluntary market is also to promote innovative means of emission reductions. Harvested wood should
be used as durable wood products such as furniture and construction. Maximum benefits from the
terrestrial carbon sinks can be obtained by making progressive farmer a project holder for growing trees
22
EUA: European Union Allowances, allowances given to EU which are traded among themselves to deal with theiremission reduction targets. EUAs are traded at a premium as they are traded among countries with high credit
rating, and have no delivery risk. Currently EUAs are traded around 21-23 Euros. CERs on the other hand are traded
at discount due to delivery risk, project performance risk, project promoters risks etc.23 State and Trend of the Voluntary Carbon Market Reports 2007 and 2008, Ecosystem Marketplace.
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E m e r g e n t V e n t u r e s
in agro ecosystems and for Bioenergy options in them. In order to minimize the transaction costs it is
important to maximize the flow of financial benefits to the farmers from the sale of good quality VERs/
VCUs. This will lead to the deduction in costs to the project developer and /or promoter and make
attractive to them as well as local stakeholders.
Emergent Ventures is involved in developing some interesting forestry projects and is in process of
proposing new methodologies for accounting emission reductions in forestry and agriculture sector.
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E m e r g e n t V e n t u r e s
RECOMMENDATIONS:
EVI comes out with following recommendations based on the study:
SN Project Activities ERs
Potential
per annum
Recomm
ended
Category Remarks
1 Bamboo Plantation All
sites 190,790 Green
All sites have been assessed separately
under section 3.1.1
2 Harvested Bamboo
Products Orange
Eligible under VCS 2007 only, New Meth
required which may include
national/sectoral baseline. Success of
project depends on successful approval of
the proposed methodology. Detailed
Baseline Assessment would be required
through credible third party survey.
Double Counting issues to be taken care
of. Complex Monitoring.
3 Bamboo Gasification for
power (both, installed and
planned) 1,191 Green
Very small in quantum hence can be
taken up as a bundled project activity
involving whole of north east/country as
a whole. It is advisable to launch it as a
CDM Program of Activities.
4
Bamboo
Charcoal as a
replacement
of Non
renewable
Wood
Charcoal
In
industries 4,460 Orange
Needs to be established through credible
third party surveys that baseline wood
charcoal comes from a depleting source
and is non renewable. Double counting of
ERs should be avoided.
In
households 6,690 Orange
Needs to be established through credible
third party surveys that baseline wood
charcoal comes from a depleting source
and is non renewable. Double counting of
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ERs should be avoided. Complex
monitoring.
5 Bamboo
Charcoal as a
replacement
of Coal
In
industrial
application 3,827 Green
Only in those industries that have coal as baseline. Can be taken up as a bundled
project activity involving whole of north
east/country as a whole. Can be
developed as a CDM Program of Activities
also. Double counting to be avoided.
In
households 5,741 Orange
Baseline needs to be determined based
on past data, credible third party survey
of households. Double counting to be
avoided. Complex monitoring.
Green: Definite CDM/VCM opportunities, should be taken up
Orange: Potential CDM/VCM project, wait and watch, a re-look on these opportunities needed after
sometime (say 3 months)
Red: Non-CDM/ VCM projects
The Way Forward Following will be the plan of action to move forward with bamboo based carbon credit projects:
1. EVI shall send proposal of advisory services for Green projects. The proposal will include
detailed timelines and points of action.
2. Model of roles/responsibility shall be adapted by NBM as appropriate. An indicative model could
be:
a. NBM Project Finance
b. CBTC Project management and co ordination
c. NBDA Technical back up, project monitoring and implementation
d. EVI Project advisory for CDM/VCM
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3. Similar feasibility studies can be performed by EVI for other states also. EVI shall send services
offering for this.
4. Required third party assessments/ surveys to be done for Orange projects.
5. After analysis based on assessment/ surveys as per remarks on Orange projects, projects moved
to Green would be taken up for carbon credits.
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E m e r g e n t V e n t u r e s
Glossary of Terms
% Percentage
AR, A&R, A/R Afforestation and/ or Reforestation
CDM Clean Development Mechanism
CER Carbon Emission Reduction
DNA Designated National Authority
DOE Designated Operational Entity
GHG Green House Gases
IPCC Intergovernmental Panel on Climate Change IRR Internal Rate of Return
KP Kyoto Protocol
kWh Kilo Watt Hour
MWh Mega Watt Hour
MNES Ministry of Non Conventional Energy Sources
MoEF Ministry of Environment and Forests
NBM National Bamboo Mission
PCN Project Concept Note
PDD Project Design Document
UNFCCC United Nations Framework Convention on Climate Change
VCM Voluntary Carbon Market
VCS Voluntary Carbon Standard
VCU Voluntary Carbon Unit
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E m e r g e n t V e n t u r e s