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Potential for LULUCF projects under JI Zoltan Somogyi* [email protected] Bernhard Schlamadinger [email protected] UNFCCC Technical Workshop on Joint Implementation Bonn, 9-10 March 2006 * “The views expressed are purely those of the author and may not in any circumstances be regarded as stating an official position of the European Commission."

Potential for LULUCF projects under JI Zoltan Somogyi* [email protected] Bernhard Schlamadinger [email protected] UNFCCC Technical

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Page 1: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Potential for LULUCF projects under JI

Zoltan Somogyi*

[email protected]

Bernhard Schlamadinger

[email protected]

UNFCCC Technical Workshop on Joint Implementation Bonn, 9-10 March 2006

* “The views expressed are purely those of the author and may not in any circumstances be regarded as stating an official position of the European Commission."

Page 2: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

LULUCF is more than AR:

• Afforestation (A)

• Reforestation (R)

• Deforestation (D)

• Revegetation (RV)

• Cropland Management (CM)

• Grazing Land Management (GM)

• Forest Management (FM)

Page 3: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

1. Some potential types of JI projects

CM:

Switching to no-till

management

Avoiding use

of fertilizers

Page 4: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

GM

Restoration of grasslands

Reducing CH4 emissions

from livestock

Page 5: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

timeCP-1

Emissions from till, fertilization (N2O)*, from livestock (CH4)*…

Reduction due to project activity

Projects to reduce emissions

* KP Annex A

Page 6: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

CO2 sequestered

time

“Sink” projects

Page 7: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

AR: converting marginal land

Page 8: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Improved FM

Page 9: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

FM: Fire prevention / forest protection

Page 10: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Avoiding Deforestation

Page 11: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Avoiding “fast out” emissions

timeCP-1

CO2 fixed

Possible reduction due to project activity

Page 12: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

2. List of current LULUCF JI projects

Page 13: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

• Afforestation project / Romania– PCF

– 6 thousand ha - 3.08 million US$ -

1,6 Mt CO2 eq

• Chernobyl Reforestation / Ukraine– BCF

– 15 thousand ha - 0.44 Mt CO2e by 2012

– No project documents yet

2. List of current LULUCF JI projects

Page 14: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

The AR in Romania „seeks to rehabilitate degraded forests, and to improve soil fertility, soil stabilization, and ecological integrity“

Source: http://carbonfinance.org/

Page 15: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

„The PCF has signed a long-term Emission Reductions Purchase Agreement (ERPA) for the delivery of nearly 900,000 tonnes of tCO2e by the NFA to the PCF at an agreed price of US$ 3.60 per tCO2e”

Source: http://carbonfinance.org/

Page 16: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

In the Ukraine Project,

„the land will not be suitable for the production of crops, milk or meat for human consumption for the next 80-100 years“

Source: http://carbonfinance.org/

Page 17: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

The Chernobil Reforestation project would

- „also provide an important environmental service”,

- „help protect biodiversity”,

- „also provide social benefits” with

- „leakage very unlikely” &

- „reduced risk of non-permanence”

Source: http://carbonfinance.org/

Page 18: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Potentials are - limited

• Annual CDM potential: – Max: 1% of A-I emissions = ~180 Gt CO2

– Currently contracted (till 2017) + additional projects: ~ 18 Mt CO2 = 0.1 % of A-I emissions

• Hypothetical AR JI projects (during CP-1):10 * 10 thousand ha * 5 tCO2/ha/yr = 0,5 Mt CO2/yr

• Hypothetical JI projects to avoid forest fire

100,000 ha * 50 tCO2/ha/yr = 5 Mt CO2/yr

Page 19: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

CO2 sequestered

timeCP-1 Further CPs?

3. Limits to potentials

“slow in

Page 20: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Other biophysical factors

• shorter time is left than for CDM projects

• some FM actions may yield few ERUs

• growth rates are lower in temperate/boreal zones than in the tropics

Page 21: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Further notes on AR

• large areas available

• demand for wood is likely to increase

• potential emissions from soil if grassland is converted

• fast growing species may yield earlier and more ERUs

Page 22: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical
Page 23: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Other forestry issues

• some forestry project types are long-term by nature: investments today are the biomass fuels of tomorrow

• combined with energy projects?

• potentials exist for additional benefits

• potential conflicts in non-carbon issues (species selection, afforesting protected areas…)

Page 24: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Risk of non-permanence

• Specific to some LULUCF projects

• The risk itself may rest:– tCERS and lCERs: with the investor – ERUs: with the host country, unless there is a

contractual rule that changes this

• May occur after CP-1

Page 25: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical
Page 26: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

Non-biophysical issues

• Unlike energy-type JI projects, some LULUCF JI projects may not earn the country a lower emission, and are not likely if, in the host country,

– activity not elected (all 3.4; due by the end of 2006)

– cap applies and removals are higher than cap (FM)

– Art 3.3 is a source

Page 27: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

• some FM actions may lead to leakage

• due to lacking sense of urgency, LULUCF has not been a priority

• no experience in JI rules

• AR only tested in CDM, with very few exceptions

Non-biophysical issues (ctd.)

Page 28: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical
Page 29: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

• First focus on likely project types: AR

• Bottom-up approach?

• Inquire with potential host countries to see which project types are contemplated?

4. Some suggestions to the JISC

Page 30: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical

4. Some suggestions to the JISC

• Consider allowing approved CDM AR meths

• Consider amending the small-scale methodology for CDM AR projects

• Overlap with the CDM WG AR?

Page 31: Potential for LULUCF projects under JI Zoltan Somogyi* zoltan.somogyi@jrc.it Bernhard Schlamadinger bernhard.schlamadinger@joanneum.at UNFCCC Technical