POLICIES THE EX-ACT TOOL - World Banksiteresources.worldbank.org/INTARD/Resources/CSA_ExAct.pdfclimate smart agriculture. t. owards a standard method to appraise carbon balance of

CLIMATE SMART AGRICULTURE

TOWARDS A STANDARD METHOD TO APPRAISE CARBON

BALANCE OF AGRICULTURE PROJECTS/ POLICIES: THE EX-ACT TOOL

By FAO EX-ACT team(Bockel, Bernoux, Tinlot, Sutter, Gentien, Gorin)

World Bank, ARD days Washington 23 March 2011

Background

Why a new tool?

How it is structured?

Main output of the tool : carbon balance

Applications of the EX-ACT tool

FAO and climate smart agriculture

SUMMARY www.fao.org/tc/exact

BACKGROUND

Agricultureforestryland use

Threatened by climate change

Responsable for 1/3 of total GHG emissions

Huge potential to cost-effectivelymitigate

The main greenhouse gas emission sources/removals and processes in managed ecosystems (After IPCC Volume 4 Chapter. 1

Introduction HWP=Harvested wood products).

Decrease sources

Increase sinks

3 accounted GHG : CO2, CH4, N20 Mitigation

BACKGROUND

70 % of agriculture mitigation potential In developping countries

CO2

rate of deforestation and forest degradation,

adoption of improved cropland management

practices (reduced tillage, integrated nutrient and

water management)

CH4, N2O

improved animal production and management of livestock

waste,

more efficient management of irrigation water on rice paddies,

improved nutrient management

Sequestering carbon

conservation farming practices, improved forest

management practices, afforestation and

reforestation, agro-forestry, improved grasslands

management, restoration of degraded land

Mitigation possible through changes in agricultural technologies and management practices

-1,2 t eq-CO2/ha/year-18,8 t eq-CO2/ha/year-42,7 t eq-CO2/ha/year

1 ha of avoided deforestation , from tropical rain forest to

degraded lands

1 ha plantation, degraded land to tropical rain

plantation

1 ha grasslands from severely degraded to improved

grasslands

-1,7 à -3,8 t eq-CO2/ha/year

1 ha from degraded land to annual crops

carbon appraisal 3+17 years

Increased carbon in soils

Climate smart agriculture

Decrease GHG emissions

Mitigation

Value to farmers, communities, society

More biomass, more residue, more production

More employment

Better land management

Adaptation

Agriculture production and

productivity

Climate change

Reduce povertyand food security

How low carbonoptions contributeto agriculture productivity and food security ?

Why having developed the tool ?

Lack of tools that would help project designers to integrate significant climate response activities in small holders agriculture development projects.

Lack of operational tools

Tools under UNFCCC/KP

Tool =

Flowchart +

Equations+

Default values


Lack of tool screening the whole agricultural sector


Need for an acceptable method which: measures C-balance impact within ex-ante appraisal, complements usual economic analysis, and fits within the time constraints of formulation process.

Simple

Practical

Cost effective

Upgradable overtime

Information that :-scientists can quantify/use, -farmers/project developers can understand/use

Up-scaling(Able to extrapolate to region, watershed and community basis)

Appraisal of agricultural project/programmes

Carbon balance with a reference scenario

International application

Regular up-dating

Easy to use and implement

Mitigation impacts of policies and value chains

Mitigation non integrated within project formulation

Lack of climate impact decision-making tools

Enriching usual economic analysis with a new

indicator

Adapting to project formulation contraints

Legitimity of a new tool

WHY A NEW TOOL ?

What the EX-ACT TOOL does?

Takes into account activities

that impact GHG fluxes (emissions and sinks)

Deforestation, A-Re/forestation, forest degradation, Restoration of grasslands, livestock, cultivation of annual crops, cultivation of perennial crops, fertilization of crops, installation of building, installation of irrigation systems...

CO2, CH4, N2O

from and to different pools

above-ground biomass, below-ground biomass, soil, litter and dead wood

EMISSIONS STOCKS

Positive result : There is more emissions

Negative result: There is less emissions

MITIGATION !

Carbon balance in t of eq-CO2

The carbon balance, for a specific project (or scenario of action) in comparison with a reference, should be considered as the net balance of all GHG emissions expressed in CO2 equivalent (sources and sinks) with the atmosphere interface and the net change

in C stocks (biomass, soil…).

Future without project

100 ha flooded rice

100 ha degraded pastures

100 animals

Future with project

100 ha improved irrig. rice

100 ha restored pastures

100 High product. animals

?

more or less GHG released

?

MAIN OUTPUT OF THE TOOL : CARBON BALANCE

HOW IT IS STRUCTURED ?

Project activities

(identification du changementd’utilisation des terres et des pratiques

prévues)

Project Description

Aggregation and carbon balance

Climate

Continent

Soil

Duration

DeforestationAfforestation and Reforestation

Non forest land use changeAnnual crops

Perennial cropsIrrigated rice GrasslandsLivestock

InputsOther investments

Matrix (Synthesis of land

use and land use changes)

-Describe vegetation/animals/inputs concerned

-Describe main management practices

-Area concerned

EXCEL File

-Start situation

-Future without project

-Future with project

Tier 1: IPCC coefficients

Tier 2 : ad-hoc

INPUTS

NEEDED

Structure of the EX-ACT tool

Logic behind :

Time (years)

Implementation phase

With project

Without project

Capitalization phase

Difference used to compute the final C balance in tons CO2 equivalent

Varia

ble

cons

ider

ed(h

a of

land

use

, num

ber o

f cat

tle h

eads

,…)

x0

x1

x2

3 different dynamic of change(adoption) of practice

Benefits of the project

Structure of the EX-ACT toolAb

solu

te C

hang

e(x

1-x 0

)

t0 t1

“Immediate” “Linear” “Exponential”

t0 t1 t0 t1Time (years)

Default optionin Tier 1

3 different dynamics of change (adoption) of practice

MAIN KIND OF DATA/INFORMATION WE LOOK FOR

-Different areas of land uses and land use changes in ha

-Management practices (residue burning, improved agronomic practice, nutrient management, organic management, tillage management)

-Quantities of inputs used

-For livestock, evolution of herd

- Fuel consumption

- Investments in infrastructures

Activities foreseen… that may impact on mitigation (GHG reduction/releases)

What is the current situation ?

What would happen in the future if the project

is not implemented ?

What is expected in the future if the project is

implemented ?

China

Tanzania

Madagascar

IndiaMali Moldavia

Ethiopia

Brazil

Burkina Faso

Eritrea

Congo Congo RDC

RwandaSierra Leone

Uganda

Cameroon

Nigeria

WORLDWIDE EX-ACT APPLICATIONS

One tool, several potentials

APPLICATIONS OF THE EX-ACT TOOL

Value chain

Rice in Madagascar


Current annual emissions:12.9 Million tons of CO2eq

⇒4.8 kg of CO2eq per kg of paddy⇒7.2 kg of CO2eq per kg of rice

⇒Methane production of aquatic rice (67%)⇒Deforestation effect (29%)⇒Persistence of hilly S&B rice (tavy)

Rice production in Madagascar

Toward an Upgrading scenario for 2020

The upgraded scenario will allow to fix 5.6

million tons of CO2eq/year between

2003-2020

-Contuniouslyflooding ricemanagement

-Laissez aller policyletting S&B increase by 3.1%/year

-Switch of 300000 ha to intermitted flooding and non flooded preseason

- improved organicamendment

- Stop any increase of S&B rice

- Net increase of fertilizers used

=> 45% due to ↘CH4

(from continiously to intermitted flooding)

=> 54% linked with reduction of

deforestation due to tavy



Forest management

Congo Brazzaville


Main caracteristics: 22,5 Millions ha of forest, lowest deforestation rate within Congo basin (0.08% annual brut)Duration of carbon appraisal: 15 years

Millions of t eq-CO2 DeforestationAfforestation/ reforestation

Land usechange

Perennial crops

Carbonbalance

BAU Reference scenario +364,8 -2,8 -11,8 +350

REDD 1 scenario +290,9 -19 -0,2 -12,4 +259,3

•Only Current deforest trend • Reforestation and

afforestation (9000 ha/yr) • 50% residue/biomass burning

•LUC from Set aside lands and degraded forest => monoculture

•Current deforest. trend + Addit. Deforest. fromoil and mining

•Public effort to reforest(1404ha/yr)

•LUC from tropical forest to agricultural lands

Unit 15 years annualCarbon balance Million t of eq-CO2 91.0 6.1Value (1t=3 US$ ) million $ 273.0 18.2Value (1t=10 US$) million $ 910.0 60.7

Policy support to strengthen capacities of local institutions in the REDD planning process



Food security and agriculture

intensification

Tanzania


Objective: Increase agricultural production and productivityTargets: 2.5 millions farmersMeans: improve rice and maize crops ( vouchers : improved seeds, inputs), stop residue burning, adoption of improved practises with better agronomic practisesand better nutrient managementDuration of carbon balance appraisal: 7+13 years

T Eq-CO2 Maize Irrigation Irrigated rice Inputs Total

Carbon balance (CB) -12.616.561 235 2.607.667 4.187.055 -5.821.604

CB.ha-1 -5,5

CB.an-1.ha-1 -0,28

T Eq-CO2 Maize Irrigation Irrigated rice Inputs Total

Carbon blance (CB) -8.353.397 235 2.607.667 4.187.055 -1.558.440

CB.ha-1 -1,5

CB.an-1.ha-1 -0,07

conventionnel

improved 1: agronomic+nutrient+no tillage+noburningImproved 2 : nutrient+no burning

Improved 3: nutrient

SCENARIO

2

SCENARIO

1

Accelerated Food Security Project in the United Republic of Tanzania



Watershed

Madagascar


Objective: establish the basis for viable irrigated agriculture and natural resources management in four rural ‘growth poles’Duration of carbon balance appraisal: 10+10 years

T Eq-CO2

Reducingdeforestation

Forestation AgroforestryAnnualcrops

Ricecrops

Restoringgrasslands

InputsLand use

change

Otherinvestments

Total

Carbonbalance

-628907 -989278 -183225 -277879 -48612 -146396 91148 -188444 1463 -2370130

Carbon Balance.ha-1 -21.0

Carbon Balance.an-1.ha-1 -1.05

Carbon price constantprice

US$/ton

Total publicvalue

million US$

Project NPV

million US$

InternalIRR

Without value 9.1 14.7%

valued at 3.5 8.3 11.6 15.8%

2010 → 2020 from 2 to 20 38.7 17.8 17.7%

2010 → 2020 from 2 to 10 20.4 13.9 16.5%

at low carbon price of US$ 3.5 Annual Equiv

Carbon value per ha US$ 3.7

Carbon value per farmer US$ 14

Equiv Carbon financial rent per village US$ 1400

Equiv carbon financial rent per watershed US$ 104 000

Potential employment generation in the area of Paid Environmental Services (PES) through regular carbon annualmonetary inflows

Irrigation and watershed management programme in Madagascar



Sustainable Agriculture i

Uganda


Objective: increase agricultural productivity and the household incomes of participating smallholder farmersDuration of carbon appraisal: 5+15 years

•Initial project scenario

Land expansion(trhough deforestation, land use change on set aside and grass lands)

No land expansion= 50`% of mitigation

potential of the project

No expansionExpansion of

agroforestry and perennials

= 12 % of mitigation potential of the project

Burning residueNo burning residueImproved practises

= 35 % of mitigation potential of the project

Agriculture Technology and Agribusiness Advisory Services project (ATAAS) in Uganda

Scenario 1

Millions oft eq-CO2

DeforestationAfforestation/reforestation

Land use change

Annual crops

Perennial crops

Final Carbon balance

Scenario 1 -64.0 -1.4 -12.9 -45.1 -6.6 -129.4

Scenario 2 -48.4 -1.4 -9.9 -26.3 -6.6 -92.2


Agriculture Technology and Agribusiness Advisory Services project (ATAAS) in Uganda

•More pragmatic scenario (agriculture expansion is not stopped but reduced)

stopped only reduced

without deforestation

WITH PROJECT SITUATION

50% on deforested lands

Annual crop expansion

Tree plantation

Manureapplication

yes no

Objective: increase agricultural productivity and the household incomes of participating smallholder farmersDuration of carbon appraisal: 5+15 years

Millions oft eq-CO2

DeforestationAfforestation/reforestation

Land use change

Annual crops

Perennial crops

Final Carbon balance

Scenario 1 -64.0 -1.4 -12.9 -45.1 -6.6 -129.4

Scenario 2 -48.4 -1.4 -9.9 -26.3 -6.6 -92.2

Scenario 2



On-going work for World Bank

Democratic Republic of Congo


Objective: to increase agricultural productivity and improve marketing Area covered: 166 000 haDuration of carbon appraisal: 5+15 years

t eq-CO2Final Carbon

balanceMillions T

CB per ha per year

T

Scenario 1 -17.5 5.3

Agriculture Rehabilitation and Recovery Support project (ARRS) in DRC

EX-ACT modulest of eq-CO2

over 20 years% of total GHG

mitigated% of total

GHG emitted

Deforestation Non Use ChangeAnnual Crops

-15709328.25-579606.4983-2213268.12

85312

total GHG mitigated -18502202.87 100

Rice LivestockOther Investment

110979.31636151.8575550158.4

16579

total GHG emitted 697289.5735 100Carbon balance -17804913.29

Dominated by impact of avoided deforestation (85%)



Watershed

Food security and agriculture

intensification

Value chain appraisal

Forest management policies

www.fao.org/tc/tcs/exact

FAO’s support to climate smart agriculture: key points

Integrating climate change concerns into agriculture and food security policies and investment programmes

Build synergies between sustainable agriculture intensification, SLM , mitigation and adaptation

Mainstream appraisal of GHG impact - carbon balance in projects, programmes and policies

Addressing adaptation and mitigation as an ongoing social learning processes

sustained internalization of agriculture mitigation practices in farming systems

Towards a FAO strategy scaling up low carbon green agriculture?

Approach and Standard

mainstreaming

• Design and promotion of climate smart agriculture practices• Promote multi functionality of sustainable green agriculture (multi-

objective approach, externality/ co benefit promotion) • Carbon balance to promote and use of carbon standards in planning and

investment appraisal

Scaling upCountry- level

implementation

• Greater consistency between agriculture, food security and climate change policy making

• Appraisal of country AFOLU Low carbon policy options• country institutional, policy and technical support to develop

agriculture carbon networks / platforms

Global Donors and Partners

Mobilization in scaling up

• Partnership with donors (World Bank, IFAD, AfDB, GTZ, AFD,EU ...) in scaling up new carbon standards in agriculture investment planning

• Channeling fast track agriculture carbon funds

THANK YOU

ARD Days 22-23 March 2011

www.fao.org/tc/exactEX-ACT team: Bockel, Bernoux, Tinlot, Sutter, Gentien, Gorin

To answer questions …

24/06/2010

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24/06/2010

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24/06/2010

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Project Summary Area (Initial state in ha)Name Forest/Plantation 35000

Annual 12400 Implementat 10Continent Africa Cropland Perennial 0 Capitalisatio 10

Rice 21800 Total 20Climate Tropical Moist Grassland 40000

Other Lan Degraded 28750Dominante Soil THAC Soils Other 0 Total Area 137950

N2O CH4 Per phase of the projectBiomass Soil Implement. Capital. Total Implement. Capital.

-628907 this is a sink -357207 -271700 0 0 -447773 -181133 -31445 -44777 -18113-989278 this is a sink -719813 -269466 0 0 -344334 -644944 -49464 -34433 -64494-188444 this is a sink -8800 -179644 0 0 -68681 -119763 -9422 -6868 -11976

-277879 this is a sink 0 -161220 -32290 -84370 -92626 -185253 -13894 -9263 -18525-183225 this is a sink -167475 -15750 0 0 -57225 -126000 -9161 -5723 -12600-48612 this is a sink 0 0 0 -48612 -16204 -32408 -2431 -1620 -3241-146396 this is a sink 0 -146396 0 0 -48799 -97598 -7320 -4880 -9760

0 0 0 0 0 0 0 091148 this is a source 28358 --- 25980 65168 4557 2598 65171463 this is a source --- --- 1463 0 73 146 0

Final Balance -2370130 It is a sink -1189041 -1044176 -3931 -132981 -1048200 -1321930 -118506 -104820 -132193

Result per ha -17.2 -8.6 -7.6 0.0 -1.0 -7.6 -9.6 -0.9 -0.8 -1.0

Components of the Project

Other GHG EmissionsLivestock

Inputs

Deforestation Afforestation and ReforestationOther Land Use ChangeAgriculture

Project Investment

Annual CropsAgroforestry/Perennial Crops

Rice Grassland

1463

All GHG in tCO2eqBalance (Project - Baseline)

Duration of theProject (years)

Mean per year

CO2 (other)---

62790

CO2

-1000000

-800000

-600000

-400000

-200000

0

200000

Deforestation Afforestation andReforestation

Other Land UseChange

Annual Crops Agroforestry/PerennialCrops

Rice Grassland Livestock Inputs Project Investment

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Documents

POLICIES THE EX-ACT TOOL - World Banksiteresources.worldbank.org/INTARD/Resources/CSA_ExAct.pdfclimate smart agriculture. t. owards a standard method to appraise carbon balance of