Maximising opportunities for sustainable development with A&R CDM projects in Uruguay
Walter Oyhantçabal
Ministry of Agriculture
UruguayBonn, June 5, 2003
woyha@mgap,gub.uy
Or: Trying to make very high quality projects (VHQP)
Or: How to play a win-win game.
A High Quality CDM Project is one in which:
Host country wins and Annex I countries win
respecting the environmental integrity of the KP
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 20100
100
200
300
400
500
600
700
800
900
1000
Pre
cipi
taci
ón tr
imes
tral
(mm
)
0
100
200
300
400
500
Med
ia m
óvil
10 a
ños
(mm
)
Octubre + Noviembre + Diciembre (INIA La Estanzuela)
Martino et al., sin publicar
Land use in Uruguay (2002, Ha)
Native forests: 810.812 (4,6%)Area with planted forests: 714.081 (4,0%)Effective area planted: 514.038Crops: 673.000 (3,7%)Pastures: 14.000.000 Ha. (87,7%)
Country with Reduced Forest Cover (CRFC): less than 10% (Teheran Process)
Natural characteristics of Uruguay and potential for forests
Area: 17,8 million ha. Subtropical/temperate climate: pp 1300
mm Mean tº 20-16º C NPP of planted forest ecosystems:
medium to high (16 to 30 m3/Ha/yr with Eucaliptus)
3,3 M Ha classified and identified in cartography as forest use priority.
Degraded Lands: 360.000 Ha.
National forest policy
Objectivs: Conservation of natural forests through
management plans Enhance planted forest base in zones of
low productivity for other agricultural uses.
Instruments: Tax exemptions Subsidies to plantation costs (50%) Credit R+D Extension
Japanese co-operation: a key of
Uruguayan forest development
1980: JICA-LATU: R&D equipment1985: JICA-MGAP agreement, Master Plan
for plantations and use of wood.1990: JICA-MGAP, Forest 5 year Plan(in that early time the plan already estimated that
100.000 Ha. would remove CO2 equivalent to 25% of the national emissions of this GHG)
1991: JICA-INIA, Tree breeding program.
Main achivements:
19901990 2000 2000Native forest w/management plans (ha) 14.000Native forest w/management plans (ha) 14.000107.000107.000
Total effective area planted (ha)Total effective area planted (ha) 45.00045.000514.000514.000
Annual rate of plantation (ha)Annual rate of plantation (ha) 3.000 3.000 52.00052.000
Exports (millions of U$S)Exports (millions of U$S) 13 13 86 86
Number of firms Number of firms 178 178 1083 1083
Investment (millions of U$S )Investment (millions of U$S ) <150 <150 >900 >900
Employment (N° of persons)Employment (N° of persons) 1.000 1.000 14.000 14.000
G forest P/G Agric. PG forest P/G Agric. P 4 4 14 14
Evolution of the area annually afforested (in Ha.)
0
10000
20000
30000
40000
50000
60000
70000
80000
9000019
88
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Eucalipt.PinesTotal
Perspectives for ´00:
Annual new areas decrease sharply after ´97
Tendency to stop growth Foreign investment in the sector diminishes Challenge of industrialization Progressive elimination of subsidies to 2007 Need for new and additional incentives
¿CERs?
Proposals for a portfolio of high quality/clearly A&R and bioenergy additional projects
Plantations in degraded/severely eroded lands.
Plantations in grasslands of low productivity with no current forest practices.
Associative afforestation in livestock areas to intensify and diversify income and labour (reaching scale)
Combined heat and power generation from sawmills wastes and rice husks.
Strengths of Uruguay to produce high quality CERs:
National Board for Climate Change Projects Guidelines and Procedures for CDM project
submission and National approval available. List of criteria and indicators to estimate
contribution to sustainable development. Good Forest Management Practices being
elaborated for planting, management and harvesting.
All forest projects with management plans and registered in the Ministry of Agriculture.
Climate and soils make possible to remove in the order of 300 ton CO2/Ha in 20 years.
(Strengths of Uruguay to produce high quality CERs:)
Uruguay is part of the Montreal Process and covers now 20% of the 67 indicators.
Important process of certification under FSC. Long tradition in fire insurances and low
primes (0,2% of the value of the plantation) Lack of conflict for the land. Deforestation of natural forests forbidden by
the law and effectively controlled. Most firms show concern for protecting the
environment and biodiversity in particular. Information available to calculate carbon
stocks and CO2 fluxes in the baseline with reasonable accuracy.
Some weakness also:
Lack of capital to start projects
Lack of forest culture between cattle farmers.
Insufficient availability of biomass coefficients and growth models. Must be completed to avoid use of default values.
More studies are needed on aspects of nutrients and water dynamic in soils under
plantations..
Focus on the key issues to design high quality
A&R CDM projects
Going to national circumstances in Uruguay.....
1. Non permanence: Non accounting tools:
Good Practices for Forest Sustainable Management, to minimise risk of C losses by fires, pests and other disasters, following IPCC GPG.
Use of insurance Diversification of sites to minimise losses. Legal guarantees and respect of contracts.
No risk of illegal human deforestation. Monitoring of losses.
Accounting modalities: option to use tCERs
2. Additionality:
Projects must demonstrate that they are not the baseline.
Identification of barriers.
The forest area of the country tends to stabilise.
Projects provide new technology and capacities to farmers.
3. Leakage:
Uruguay is a country of Low Forest Cover.
There is very little chance of negative leakage by activity shifting. Moreover, afforestation may induce intensification of meat production in the non afforested area of the farms, through improved pastures, increasing C stocks in soils. (not credited in 1º CP)
4. Socio-economic impacts: Contribution to sustainable development
could be seen in: Diversification and increase of sources of
income, in farms dedicated only to livestock production, may help retain farmers in the country.
Direct and indirect employment generation over the baseline (extensive livestock production).
Replicability Technological spill-over Capacity building Increase of participation in associative forms. Promotes innovation process Social acceptance Care of landscape and ecoturism
5. Environmental impacts:
Project design shall follow national criteria and indicators.
EIA and mitigation measures implemented. Monitoring of relevant indicators following
check list. Afforestation is made on soils of low native
grassland productivity, or degraded lands. Minimum tillage is adopted to minimise erosion and emissions of CO2.
Some evidences show that in Uruguay well managed forests might favour wildlife, creating new refugees.
Measures to preserve biodiversity, including:
Use of more than one species in monoespecific patches.
Leaving not less than 30% of the area with native vegetation
Preserve refugees of native animal species. Monitor biodiversity evolution. Use of native species to the possible extent. Respect completely native forests areas. Use IPM and minimise use of contaminant
pesticides.
To finalize:
We can agree that the challenge is to identify and implement A&R CDM projects of high quality in terms of socio-economic and environmental co-benefits.
But we need to learn by doing. Uruguay, among other countries, accept the
challenge. And we want to start now.