COMACOtrading center

CTC support

Wildlife-basedcommodities

Agriculturalcommodities

Forest-basedcommodities

Land useplans

CommunityProducers: organizedaround Trading Depots

Trad

e &

Co

nse

rvat

ion

Production Support:

Increasedtourism

revenues

Improvedecosystem

services

Increasedsecurity for

national parks& national

forests

Reducedrural poverty

Increasedfood security

Reducedwildlife/NR

managementcosts

CTC support

Productdevelopment and

processing

Distribution andadvertising

Marketing & sales

CTCtrade support

Businessplans

Market Development

Increasedtourism

investment

CTC extensionsupport

COMACO Impact

Community MARKETS for Conservation – Markets to Advance Conservation Mission

WCS Conservation Efforts, WFP Contracts and COMACO leverage one another’s activities and share expenses

Getting Started – Significant Costs Associated with Establishing CTCs

Lundazi: $1.2M+ Mfuwe: $400K+

Conclusions in May 2007 Agro Processing – Necessity of Higher Value Add Market Development – Existing and New Markets

COMACO Business Analysis Performed in May 2007 on Community Trading Centers: Lundazi and Mfuwe

First Full Year of Consistent Sales with Established Products

Sales Outlets have been developed with supermarket chains (Shoprite & Spara) and NGOs (Peanut Butter & HEPS)

Net Sales of 851,133,010 kwacha

Rice is best selling product in 2007 = 72% of Sales

Development of Soy Based Product line – HEPS (18% of Sales), Yummy Soy

Bottom Line: 2007 resulted in 349,458,678 kwacha operating loss – not inclusive of D&A

2007 COMACO Financial Data – 3.31.08 Year End

Global Warming is happening – The Debate is Over GHG at highest levels in at least 800,000 years - Study published in journal Nature Carbon Dioxide levels estimated to be at 380 ppm and increasing

What Does This Mean? Poorest of Poor Most Vulnerable to Effects of Climate Change I Didn’t Cause this Mess… How are WE Going to Fix the Problem? Adaptation & Mitigation Needed Now!

“Job is not to punish the polluter but to get rid of pollution” -Richard Sandor (CCX Founder)

Climate Change Reality

Challenge or Opportunity? – ‘It Depends’ Incentives for Cleaner Development Intersect with Development Priorities

Significant Need for Financial, Knowledge and Technology Transfers on Mass Scale (Design, Implementation, Dissemination)

Need for Commercially Viable Emission Reducing Innovations Know-How to Implement Technology or Knowledge Favorable Regulation and Policy for all Transfers Local Capacity is Necessary – Developers, Verifiers, etc

Market Mechanisms for Climate Change

Its All About ‘ADDITIONALITY’

Mandatory 2007 Offset Market: 73% China, 5% Africa

Kyoto Protocol / Voluntary Markets a Work In Progress US Legislation – Federal or State Approach Post 2012 Kyoto Negotiations

Market Programs Market Size

Trading Prices Participation Requirements

Mandatory Carbon Markets (Kyoto Protocol/CDM)

Large - $63+ Billion in 2007

Variable – recently $35+US/CER

Rigorous approval and verification process

Voluntary Carbon Markets

Small but growing rapidly

Significantly less than Mandatory – recently $6+US/VER

Variable/ Less stringent

Mandatory vs. Voluntary Markets

Kyoto Protocol Market (Mandatory Market) Offset Credit Creation Process

COMACO and Climate Change

Opportunity Exists for Smallholder through Co-Benefit Projects Project Must Include Measurable & ADDITIONAL Steps to Generate Emission Reductions Must be Verifiable and Monitored Fiscal Management

Applicability of COMACO’s Model & Infrastructure Ability to Provide Technology, Knowledge, Innovation Transfer Organization of Producer Groups can be Leveraged to Generate Credits & Disburse Payments Tie to COMACO Compliance Activities – Project Development & On-Going Monitoring

COMACO and Climate Change

November 2007 - Research Identified COMACO Opportunity for Accessing Carbon Markets (Triple Benefit)

Develop coordinated reforestation with agro-forestry project through COMACO producer groups – basis will be hectares of reforested land Soil carbon capture opportunities through conservation farming of individual COMACO farmers – basis will be acres under CF Potential for Production Fuel Switching (Small Scale), Electric Fences, biogas, Off-Grid Renewable Energy

Adaptation: Improved Seed Stock, Soil Carbon Management, Irrigation, Watersheds, Migration, Energy, ‘Coping Strategies’ Ownership Rights – Who Owns Stream of Carbon Credits Implementation and Sustainability of SANREM Research

Technology & Knowledge Transfers Financial Incentives Pilots for Promising Technology

“So What, Then What” – Use Science and Technology Researched by SANREM to Generate Scalable Co-Benefit Methodologies for Emission and Poverty Reduction

Climate Change and SANREM Research

COMACO and Markets

Questions?Contact:John FayEmerging Markets GroupEmail: jfay@emergingmarketsgroup.comTel: +86 136 6115 5366