1. Agneya Insight seriesCDM AND FORESTRY SECTOR

2. Agneya Insight seriesOVERVIEWForests is the home for millions of species, produce a large proportion of the worlds supply of freshwater, and are crucial in the global carbon cycle and therefore in regulating the global climate. It isvery necessary to rehabilitate degraded forest lands. Forestry has been a contentious topic inClimate Change mitigation from the first day of the Kyoto Protocol. (The Kyoto Protocol is aninternational agreement linked to the United Nations Framework Convention on Climate Change.)Under the Kyoto protocol, industrialised countries (Annex 1 countries) must meet their emissionreduction target which is 5.2% of their total emission of 1990s level within 2008-12 (known as firstcommitment period), primarily through national measures. However, the Kyoto Protocol offers theman additional means of meeting their targets by way of three market-based mechanisms. I.International Emissions trading known as the carbon market" (IET),II.Clean development mechanism (CDM), III.Joint implementation (JI).The Clean Development Mechanism (CDM) allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol to implement an emission-reduction project indeveloping countries. Such projects can earn tradable certified emission reduction (CER) credits,each equivalent to one tonne of CO2. There are fifteen sectoral scopes under the CDM, Afforestationand reforestation (A/R) is one of them.The term Afforestation describes that; any woody vegetation on the land has for at least 50 yearsbeen below the thresholds adopted by the host country for definition of forest (Forest definition:Single minimum tree crowns value between: 10-30%, A single minimum land area value between:0.05-1 ha & A single minimum tree height value between: 2-5 m) and reforestation is a newlycreated forest on land that was not forest on 31 December 1989.Forest definition of India:A Single minimum tree crowns value: 15 %A single minimum land area value: 0.05 haA single minimum tree height value: 2 m 3. Agneya Insight seriesPRESENT CDM (A/R) PROJECTS SCENARIOOn the end of Sep 2010, 17 forestry (A/R) projects are registered and 45 are into validation underthe CDM throughout the world. All registered CDM (A/R) projects have capacity to generate1,09,56,758 certified emission reduction till 2020 (57,78,598 till 2012). If projects under validationget registered, they would generate 8,97,60,428 CERs till 2020 (2,67,86,646 till 2012). In India thereare 3 registered CDM (A/R) projects generating 12,16,359 CERs till 2020 (6,37,890 till 2012)The image below superimposes the Kyoto protocol ratification with the development and location offorestry projects across the world. Dark green indicates countries that have signed and ratified thetreaty, grey covers the undecided, and red indicates lack of clear intention of ratifying. The locationof 17 registered A/R CDM projects are shown with arrows. 4. Agneya Insight seriesPOTENTIAL FOR A/R CDM PROJECTS IN INDIAIn addition to projects in the industrial and energy sectors, CDM options in the forestry sector offerduel benefits of carbon revenue and livelihood development of local communities along withsustainable development of the area. In India there are plenty of waste/degraded lands. It isestimated that, 638518.31 Square Km (63.85 m. ha), which is about 20.17% of the total geographicalarea of the country is waste land (Wastelands Atlas of India 2000). It could support a variety ofmitigation projects, from direct carbon sequestration & biomass growth for energy use. Besideshelping to meet growing demands for timber, firewood and electricity, such activities would help torestore the land status and make ecosystem sustained.Newly afforested areas would reduce present levels of soil erosion and water loss on degraded landsand would enhance biodiversity. Afforestation would also raise grass productivity, extending grazingcapacity. Large-scale Afforestation and reforestation activities would also yield employmentopportunities, particularly among rural, low-income groups, through planting, harvesting, andprocessing of biomass and by supplying non-timber forest products.To date, India has addressed the issue through a series of Forest Conservation Acts and anAfforestation Program. The main policy thrust is to monitor and protect existing forests and toreduce inherent pressures on forest resources by extending biomass production under management 5. Agneya Insight seriesprograms that involve local communities. The CDM offers potential to extend or supplement theseefforts.REFERENCES1. Wikimedia http://upload.wikimedia.org/wikipedia/commons/9/9d/Kyoto_Protocol_participation_map_200 9.png2. IGES CDM Database, updated on 01 Sept 20103. http://www.fao.org/english/newsroom/news/2003/14880-en.html4. http://www.fao.org/DOCREP/ARTICLE/WFC/XII/MS14-E.HTM5. http://cdm.unfccc.int/DOE/scopes.html 6. Agneya Insight seriesABOUT USAgneya Carbon Ventures came into existence with the purpose of To help our clients inunderstanding, establishing sound Environment Management Systems, and pursuing sustainablebusiness solutions through our various services to abate direct and indirect impact on ecologicalbalance.We have worked with companies across sectors enabling them to create carbon accounting,monitoring and reporting systems. We have expertise in the areas of carbon accounting andmanagement, energy management systems, voluntary/compliance carbon markets, environmentmanagement and sustainability and carbon branding. Equipped with in-depth understanding of theClean Development Mechanism methodologies specific to forestry, we can assist you in developingyour Afforestation/Reforestation projects right from identifying proper land for the project toregistering the project at the Executive Board post validation.To know more about us, please visit http://www.agneya.inTo schedule a meeting or a discussion with us, do reach us onKedar: +91-9665407848 kedar@agneya.inIndrajeet: +91-9028788430 indrajeet@agneya.inShailesh: +91-9890887670 shailesh@agneya.in