nama proposal for the costa rican coffe sector presentation
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NAMA proposal for the Costa Rican coffee sector"
November 22nd 2011
[ working draft]!Solís, H. hortensiasolis@co2.cr!
Jiménez, R. robertojimenez@co2.cr! Bermúdez, E. estebanbermudez@co2.cr!
Key messages
Improve production security:!110% increase in national coffee harvest!"Reduce GHG emissions:!26 million metric tons of CO2e reductions *!"Adapt to climate change:!40% of coffee plants renovation with resilient variety!90% of crops with shade trees!!
* preliminary data!
2
Central America’s economy is extremely vulnerable to climate change. Adaptation in the agriculture sector is urgent.!
3 Source: CEPAL, 2010!
“Our analysis demonstrates that climate change is already having adverse impacts over the production of some crops. As a result… accumulated losses will be approx. 4% of 2007 GDP when using a discount rate of 4%... however these grow to 8-12% when a 2% societal discount rate is employed… It is fundamental to adopt measures to reduce the causes of climate change, however perhaps it’s more important that the countries implement adaptation measures.”
Today, Costa Rica’s agriculture sector presents a significant opportunity for greenhouse gas mitigation.!
4
0!100!200!300!400!500!600!700!800!900!
1,000!1,100!
2002! 2003! 2004! 2005! 2006! 2007! 2008!
Fertilizer consumption "(kilograms per hectare of arable land)!
Costa Rica! Latin America & Caribbean! World!
Energy – 46%!
Industrial Processes – 6%!
Agriculture 37%"
Waste – 11%!
Source: IMN, 2008!
Greenhouse gas emissions"(Percentage of national emissions, 2005)!
Source: World Bank, 2008!
To 2030, globally, largest abatement levers are in power and forestry. However, Costa Rica’s levers lie in transport, agriculture and waste.!
5
Source: McKinsey, 2010!
Global GHG abatement potential"(in GtCO2e)!
National GHG emissions"(in MtCO2e)!
We already have a low-CO2 power and forestry sector!
Source: Ministry of Environment/INCAE/FUNDECOR, 2010!
Energy(65% Transportation)!
Electricity!
2010!
2012!
2014!
2016!
2018!
2020!
2022!
2024!
2026!
2028!
2030!
2008!
Other!Solid waste!Agriculture!Forestry!
0!
5,000!
10,000!
15,000!
20,000!
25,000!
30,000!
35,000!
In today’s period of reduced budgets, agriculture and waste NAMAs offer significant opportunities at low capital intensities. !
6
Capital intensity by abatement measure"
Capital intensity by abatement measure"
Source: McKinsey, 2009!
Transport, our largest source of emissions, is most capital intensive.
GH
G e
mis
sion
s(K
g C
O2e
)!
The coffee sector, with its high use of fertilizer, has the largest emissions rate of N2O in the agriculture sector. !
7!
- !
500 !
1,000 !
1,500 !
2,000 !
2,500 !
3,000 !
3,500 !
4,000 !
4,500 !
5,000 !
GH
G e
mis
sion
s (K
g C
O2e
)!
Methane (46%)"
Nitrous oxide (54%)"
Sources: IMN, 2008; MAG, 2009! -‐
500
1,000
1,500
2,000
2,500
Cattle (40%)"G
HG
em
issi
ons
(Kg
CO
2e)!
-‐
500
1,000
1,500
2,000
2,500
Coffee (24%)"
Sugar cane (11%)!
Bananas (8%)!
Other (11%)!
Rice (5%)!Other (<1%)!
Costa Rica has a history of being a “laboratory” for tesCng naConal environmental programs
A good example is the “Payment for Environmental Services” (PSA) mechanism
8
Implementation of 1st generation of PSA!
Source: MINAET, 2009. FONAFIFO, 2011.
67%
77%
56%
63%
45%
59%
50%
31% 32%
21%
29%
42% 48%
53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1940 1943 1950 1960 1961 1966 1970 1983 1986 1987 1991 1997 2000 2005
We would like to take a “climate-smart” approach for the coffee NAMA to address interlinked issues of population, climate and food security.!
9!
Global need to increase food
production 70% by 2050 "
Climate change"!
Temperature change!!
Precipitation change!
Source: FAO, 2010!
Food security"!
Quantity change!!
Quality change!
Connected"
• Decreased production!
• Increased diseases!
• Decreased crop viability!
• Increased prices!
• Increased fertilizer use!
• Increased deforestation!
In our “climate smart” approach, we will optimize mitigation actions by deriving co-benefits for production and adaptation. !
10!
Mitigation! Production! Adaptation!
Current!situation !
10% of CR’s GHG emissions come from coffee’s N2O derived use!
2,2 million sacs in 90,000 Ha (2010-2011);d,!95% of the coffee plants are have low production, age exceeds the shelf life!
On 2010-2011, weather events affected the coffee production: loss of 150,000 sacs !
Actions!
Accurate fertilization;!Effective use of fertilizers; Energy efficiency; Cogeneration; and Wastewater management!
Coffee plants renovation!!
Management of the shade trees; !Genetic improvements; and!Plants renovation!
Results (2035)!Potential reduction of26 million tCO2e (2015 – 2035)!!
110% increase in national coffee harvest (compared to 10’-11’)"
40% of coffee plants renovation with resilient variety!90% of crops with shade trees !
We have indentified 7 mitigation actions focused on the highest GHG-intensive stages of coffee’s life cycle: farms and mills. !
11!
A “climate-smart” coffee sector can serve as a model to transition the Costa Rican agricultural sector towards national green economy goals.!
12!
1980! 1990! 2000! 2011! 2030! 2040! 2050"
Green economy!
Socio-economicdevelopment!
Time!
Emissions linked to development"
Emissions independent from development"
2021"
Peak year!
eco-competitiveness"
Transition"towards"
Carbon neutral growth"
Coffee NAMA"
Case study: Coopedota, R.L. achieved carbon neutrality for the whole life cycle of the coffee it produced!
13 Source: Coopedota, 2011!
Farms! Mill! Transport! Roasting! Consump-tion! Waste!
94%" 4%" 2%" Neutralized by consumers"
62%" 1%" 5%" 15%" 8%" 9%"
Methodology for quantifying product’s life cycle GHG emissions"Export20,000 fanegas!
National500 fanegas!
1,800 tCO2e!
69 tCO2e!
1,869 tCO2e"
Case study: Dole has developed an integrated program to reduce emissions from its fresh fruit exporting operations. !
14 Source: Dole, 2010
� Use of train to Transport fruits
� Green containers program
� Fuel saving in docks
�ReforestaCon and forest protecCon
� Efficiente driving training
� Vortex valves for generators
� Fer)lizer use op)-‐ miza)on
� Soil conservaCon program
� Refri-‐ gerants reducCon program
0
10
20
30
40
50
60
70
80
90
100
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2005 2006 2007 2008est 2009est
Ref
riger
ants
(ton
s)!
tCO
2e!
Metric tons of CO2e from refrigerants (2005-2009 estimate)"
tCO2e! Refrigerantes (TM)!
0!5,000!
10,000!15,000!20,000!
Commercial! Optimized!
tCO
2e!
Fertilization Program!
Optimized Fertilization Program"
A number of organizations in the coffee sector have begun to meet and coordinate activities to deliver a NAMA during 2012.!
15
Coffee sector NAMA
R&D centers
Universi)es
Government
Industry
NGOs
We need technical and financial support to develop a full-fledged NAMA by 2012, with implementation likely before 2015.!
16!
Interna
)ona
l ac)on
s
Short term Medium term Long term
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
Na)
onal ac)on
s
COP16 Cancún !
Carbon neutral coffee!
Agricultural policy!
COP17 Durban !
Financing of NAMA"
Rio+20"
Execution of NAMA"
Monitoring/reporting! Monitoring/reporting!
Monitoring/reporting! Monitoring/reporting!
Verification! Verification! Verification! Verification!
NAMA proposal!
NAMA for coffee sector"
Hortensia Solís "hortensiasolis@co2.cr !
17
Contact us"
Roberto Jiménez"robertojimenez@co2.cr !
Esteban Bermúdez"estebanbermudez@co2.cr !
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