iufro & norplus international symposium: recent advances in land owner extension

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Carbon offsets in Carbon offsets in Ethiopian agroforestry Ethiopian agroforestry farms farms - way for peer-peer learning between Ethiopia - way for peer-peer learning between Ethiopia and Finland and Finland Veli Pohjonen Veli Pohjonen University of Helsinki University of Helsinki IUFRO & NORPLUS International Symposium: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension. Recent advances in land owner extension. Peer-to-peer learning among land owners Peer-to-peer learning among land owners Kuusamo, Finland Kuusamo, Finland 4-5 April 2011 4-5 April 2011

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Carbon offsets in Ethiopian agroforestry farms - way for peer-peer learning between Ethiopia and Finland Veli Pohjonen University of Helsinki. IUFRO & NORPLUS International Symposium: Recent advances in land owner extension. Peer-to-peer learning among land owners Kuusamo, Finland - PowerPoint PPT Presentation

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Page 1: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Carbon offsets in Ethiopian Carbon offsets in Ethiopian agroforestry farmsagroforestry farms

- way for peer-peer learning between Ethiopia and Finland- way for peer-peer learning between Ethiopia and Finland

Veli PohjonenVeli PohjonenUniversity of HelsinkiUniversity of Helsinki

IUFRO & NORPLUS International IUFRO & NORPLUS International Symposium: Recent advances in land owner Symposium: Recent advances in land owner

extension.extension.Peer-to-peer learning among land owners Peer-to-peer learning among land owners

Kuusamo, FinlandKuusamo, Finland4-5 April 20114-5 April 2011

Page 2: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

COCO22 in our air in our air

Despite climate conventions in Kyoto, Despite climate conventions in Kyoto, Copenhagen and Cancun (Mexico):Copenhagen and Cancun (Mexico):

COCO22 concentration of the air is rising concentration of the air is rising

24 per cent between 1958 – 201124 per cent between 1958 – 2011

No sign of change after Kyoto (1997)No sign of change after Kyoto (1997)

Page 3: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

COCO22 in the atmosphere 1958-2011 in the atmosphere 1958-2011

Page 4: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Two ways to combatTwo ways to combat

Through the Through the sourcessources: reduce CO: reduce CO22 emissions. Technological way.emissions. Technological way.

Through the Through the sinkssinks: increase Carbon : increase Carbon

Offsets to trees. Ecological way.Offsets to trees. Ecological way.

Page 5: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Carbon Offsets via treesCarbon Offsets via trees

Conserve and manage the existing Conserve and manage the existing natural forestsnatural forests

Establish (large) block plantationsEstablish (large) block plantations

Agroforests , forest farmsAgroforests , forest farms

Page 6: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Carbon Offsets in agroforests and Carbon Offsets in agroforests and forests farms forests farms

Plant treesPlant trees Count the trees in year 1Count the trees in year 1 Define the carbon stock in year 1 (= Define the carbon stock in year 1 (=

A, tn C/farm)A, tn C/farm) Recount the trees in year 2Recount the trees in year 2 Define the carbon stock in year 2 (= Define the carbon stock in year 2 (=

B, tn C/farm)B, tn C/farm) Carbon Offset = B – A (tn C/farm/yr)Carbon Offset = B – A (tn C/farm/yr)

Page 7: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Ato Minale Hailu, Gelawdeos, Dera: Ato Minale Hailu, Gelawdeos, Dera: A= 5.04 tn C/farm (356 trees), B= 5.47 tn C/farm (438 trees)A= 5.04 tn C/farm (356 trees), B= 5.47 tn C/farm (438 trees)

Carbon Offset B-A = 0.4 tn C/farm/yrCarbon Offset B-A = 0.4 tn C/farm/yr

Page 8: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Excel model: Ato Minale Hailu AExcel model: Ato Minale Hailu A12.11.200912.11.2009

Page 9: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Excel model: Ato Minale Hailu BExcel model: Ato Minale Hailu B23.11.201023.11.2010

Page 10: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Carbon Offsets into MoneyCarbon Offsets into Money

Ato Minale Hailu’s Carbon OffsetsAto Minale Hailu’s Carbon Offsets

A = 5.044 tn C/farmA = 5.044 tn C/farm

B = 5.465 tn C/farmB = 5.465 tn C/farm

B-A = 0.421 tn C/farm/yrB-A = 0.421 tn C/farm/yr

How much in Birr How much in Birr (or Euro)(or Euro) is B-A ? is B-A ?

Page 11: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

CER pricing principleCER pricing principle

Certified Emissions Reduction, CER Certified Emissions Reduction, CER ((http://www.pointcarbon.comhttp://www.pointcarbon.com ) )

Price of CER = 13.10 Euro / tn COPrice of CER = 13.10 Euro / tn CO22

Price of C = 48.03 Euro / tn C Price of C = 48.03 Euro / tn C ((factor factor 44/12)44/12)

Price of C = 1142 Birr / tn Price of C = 1142 Birr / tn (exch. rate 23.77)(exch. rate 23.77)

Value of tree farmer’s Offsetted Carbon Value of tree farmer’s Offsetted Carbon changes with daily CER-value at changes with daily CER-value at international marketinternational market

Page 12: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Ato Minale Hailu: Birr value of Ato Minale Hailu: Birr value of Offsetted Carbon Offsetted Carbon

Carbon Offset in one year (12.11.2009 Carbon Offset in one year (12.11.2009 – 23.11.2010), B-A = 0.421 tn – 23.11.2010), B-A = 0.421 tn C/farm/yrC/farm/yr

Price of Carbon 1142 Birr/tn C Price of Carbon 1142 Birr/tn C (48 €/tn C)(48 €/tn C)

Value of Offsetted Carbon: Value of Offsetted Carbon: 481 481 Birr/yr Birr/yr (20 €/yr)(20 €/yr)

Page 13: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Summary of 8 sample farmsSummary of 8 sample farmsall measured twiceall measured twice

Page 14: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Principle of Carbon Offset paymentPrinciple of Carbon Offset payment

Year A gives the baseline value (tn C/farm)Year A gives the baseline value (tn C/farm) If B-A > 0, payment is doneIf B-A > 0, payment is done B becomes new baseline valueB becomes new baseline value

If B-A < 0, payment is not doneIf B-A < 0, payment is not done The payment is done in the year when new The payment is done in the year when new

carbon stock exceeds the baseline value carbon stock exceeds the baseline value

Page 15: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Calculation chainCalculation chain

Page 16: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Expected Carbon payment to Expected Carbon payment to Ethiopian farmers & enterprisesEthiopian farmers & enterprises

Fair price would be CER = 1142 Birr / tn CFair price would be CER = 1142 Birr / tn C In real trade at least two levels of In real trade at least two levels of

middlemen are presentmiddlemen are present Would the price to farmer or enterprise drop Would the price to farmer or enterprise drop

to one third? That is 381 Birr / tn Cto one third? That is 381 Birr / tn C What was paid in Ethiopian Humbo project?What was paid in Ethiopian Humbo project? 247 Birr / tn C 247 Birr / tn C (4 USD / tn CO(4 USD / tn CO2 2 = 14.7 USD / tn C)= 14.7 USD / tn C)

Page 17: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Three corners of EthiopianThree corners of Ethiopianhighlands smallholder farming highlands smallholder farming

Page 18: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

How to organize Carbon trade?How to organize Carbon trade?

Smallholder farmers group into Forest Smallholder farmers group into Forest Producers Organization (FPO)Producers Organization (FPO)

FPO buys once a year the Carbon FPO buys once a year the Carbon Offsets (CER-units) from member Offsets (CER-units) from member farmersfarmers

FPO sells the Carbon Offsets to FPO sells the Carbon Offsets to Ethiopian Carbon Offset Export AgencyEthiopian Carbon Offset Export Agency

The Export Agency sells the Carbon The Export Agency sells the Carbon Offsets to International Carbon Trade Offsets to International Carbon Trade markets markets

Page 19: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Peer to peer: Ethiopia Peer to peer: Ethiopia FinlandFinland

Forest Management Association (FMA) Forest Management Association (FMA) in Finland could also collect the CER in Finland could also collect the CER units from their membersunits from their members

FMA could sell clusters of CER-units in FMA could sell clusters of CER-units in International carbon tradingInternational carbon trading

FMA would get additional trading FMA would get additional trading incomeincome

Forest sinks should be a real agenda in Forest sinks should be a real agenda in Durban Climate Conference, Nov. 2011Durban Climate Conference, Nov. 2011

Page 20: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Ecological advantagesEcological advantages

Carbon Offsets trade encourages Carbon Offsets trade encourages farmers to plant more treesfarmers to plant more trees

Planting of trees further away from all Planting of trees further away from all weather road increasesweather road increases

Planting of trees on most eroded sites Planting of trees on most eroded sites increasesincreases

Perpetuum Mobile (PM) – Plantarum Perpetuum Mobile (PM) – Plantarum MobileMobile

Page 21: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Economic advantagesEconomic advantages

Farmers get added value from planted treesFarmers get added value from planted trees The value of Ethiopian smallholder forestry The value of Ethiopian smallholder forestry

increases annually by about 10 per centincreases annually by about 10 per cent Carbon offsets are to be understood as a Carbon offsets are to be understood as a

new export commodity from forestry, like new export commodity from forestry, like exporting construction poles from Ethiopia exporting construction poles from Ethiopia to Sudan, or sawn timber from Finland to to Sudan, or sawn timber from Finland to GermanyGermany

=>A new export commodity is created =>A new export commodity is created

Page 22: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Building the Carbon TowersBuilding the Carbon Towers

Smallholder tree planting is on a good drive in Smallholder tree planting is on a good drive in EthiopiaEthiopia

Farmers are motivated especially after Farmers are motivated especially after successful steps in land tenure and certificationsuccessful steps in land tenure and certification

Ethiopia is already converting into Carbon Ethiopia is already converting into Carbon Tower of African Horn. This accelerates with Tower of African Horn. This accelerates with Carbon tradingCarbon trading

Trees – Forests - Carbon towers – Sinks are Trees – Forests - Carbon towers – Sinks are becoming more important in the coming becoming more important in the coming climate conventionsclimate conventions

Page 23: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Carbon Tower gets greenerCarbon Tower gets greener

Page 24: IUFRO & NORPLUS International Symposium: Recent advances in land owner extension

Thank youThank you

[email protected]

http://veli.pohjonen.org