Derechos Constitucionales Vulnerados

Of the costs generated in this chapter, the Rusagas project offers by fer and away the lowest price at $0.07/tC. The average prices for carbon sequestration and fuel switching are $18.5/tC and $136.6/tC respectively. These costs were higher than many studies have predicted and they suggest a different ranking or cost ‘hierarchy’ o f emission reduction methods than is commonly held to exist. Furthermore these costs are higher than the benefit of emission reduction. The discrepancy between these costs and costs predicted in other studies is addressed in chapter 4.

Appendix 3 A:

Summary

Information on J1 Projects

This annex presents information on twenty three joint implementation projects: the five FACE project (projects 4 to 8 in table 3.2), the fifteen first and second round USIJI projects (projects 9 to 23), the two AES projects (projects J and 2) and the NEP project (project 3). A summary of information on the FACE and USIJI forestiy projects is set out in table one below. Information on the FACE and USIJI fuel switching projects is set out in table two.

As explained in the special note preceding chapter 1, this appendix contains information made public by the USIJI secretariat and information obtained from USIJI project participants. Projects here are identified by name. Chapter 3B contains information entrusted to me by the USIJI secretariat. To uphold the agreement on privacy reached with the USIJI secretariat, projects are identified in chapter 3B by project type and by host nation, but not by name.

Table 3A.1: Forestry Projects

No. Name Body Country Type Hectares tC

4 Malaysia FACE Malaysia Plant 25,000 22,950,000 .

5 Czech R FACE Czech R Plant 16,000 11,328,000

6 Equador FACE Equador Plant 75,000 35,475,000

7 Uganda FACE Uganda Plant 35,000 26,565,000

8 Netherlands FACE Holland Plant

9 Rusafor USIJI R1 Russia Plant 500

10 Carfix USUI R1 Costa Rica Plant &

Protect

36,705 2,116,097

11 Rio Bravo USUI R1 Belize Plant &

Protect

50,543 1,309,495

12 Ecoland USUI R1 Costa Rica Protect 2-3,000 326-586,000

16 Biodiversifix USUIR2 Costa Rica Plant 85,000

Table 3A.2: Fuel Switching Projects

No. Name Body Country Type MWs GWhs/Yr.

13 Plantas USIJI Costa Rica Wind 20

14 Decin USIJI Czech R Gas 19.6

15 Enersol USIJI Honduras Solar

18 Aeroenergia USIJI Costa Rica Wind 6.4 27

19 Dona Julia USIJI Costa Rica Hydro 90

20 Tierras Morenas

USIJI Costa Rica Wind 20 7 6 -9 8

21 Bio-Gen I USIJI Honduras Biomass 10

22 El Hoyo USIJI Nicaragua Geothermal 105 781.8

FACE, Projects 4-8

Forests Absorbing Carbon Dioxide Emissions (FACE) is an initiative sponsored by SEP, the Dutch state electricity generating board. SEP is pursuing joint implementation because at present about 90% of the electricity in the Netherlands is generated by burning fossil fuels, and because, as SEP has stated,

‘it will take several decades to convert to an electricity generating system that emits appreciably less CO2’ (Face, 1995b, p. 1). ^

FACE plans to plant 150,000 hectares. However, only 5,000 of the 150,000 hectares will be planted in the Netherlands, at a rate o f 200 hectares per year, because

‘the costs are very high and the opportunities are very limited, partly because available land is so scarce’ (FACE, 1994 p. 9). Face’s 1994 annual report said only 5,000 hectares could be planted in the Netherlands because,

‘of the extremely limited availability o f land [in the Netherlands and the relatively high costs involved. In the Netherlands it is impossible for a project to meet Face’s requirement o f planting 1,000 hectares a year’ (Face, 1995a, p. 9).

Face works with partners abroad who are able to plant at least 1,000 hectares o f forest per year and who are willing and able to maintain this forest over a period o f 99 years, the duration of Face contracts. Face contributes finance for the costs of planting and for the

first three years of maintenance. This finance only is given three years after the planting, and is conditional on the afforestation being approved in an assessment at that time.

Malaysia, FACE Project Number 4

Face is contributing to the afforestation of 25,000 hectares in Sabab, Malaysia, as part of the rehabilitation of a 150,000 hectare section of over-logged forest. Replanting is being done in areas that were logged 5,10 and 15 years ago. Areas that are logged all in one go do of course enjoy regrowth, but not of the kind that will lead to regeneration o f the earlier tropical forest. Consequently, planting is needed.

The first phase of the project, which started in 1992, comprising 2,000 hectares, was due to be completed in 1995. 1,000 hectares per annum of damaged rainforest will be rehabilitated, in the second phase of the project, running for three years fi*om the end of 1994, using line planting. Line planting sees lines cleared at 10 metre intervals amongst vegetation that has gown up since the land was logged. Young trees of the major original timber species are then planted at intervals of about 5 metres along these lines. Trees planted on the former logging roads are given fertiliser as topsoil has virtually disappeared on these sites. After a period of three years the planted trees grow so vigorously that they can grow into primary trees without any further management. The rainforest can then regenerate under these trees, in so fer as this is possible. A central nursery has been set up that can supply about 650,000 young trees per year. Face claims that,

‘nowhere in the world is restoration of tropical rainforest being carried out on such a large scale as in this project’ (Face, 1995a, p. 19).

Czech Republic, FACE Project Number 5

Face planned originally to plant 16,000 hectares of forest in Krkonose National Park in the Czech Republic, on the border between Poland and the Czech Republic. Face gave NLG

10.2 million between 1992 and 1994, in a project that began on 7 October 1992. By the end of 1994,1,450 hectares had been planted.

Some changes were made to the project following the production of an interim report in 1994. It was decided that not all of the 16,000 planned hectares were suitable for reforestation: some 6,000 of these hectares were more suited to rehabilitation by natural regeneration (Face, 1995a, p. 18). The report also recommended in fevour of mixed species planing, on the grounds that a mixed species forest accelerates the degeneration of the sward (a type of grass) that develops in response to a combination of acid deposition, monoculture and climate. At the end of 1994 the project partner, Krkonose National Park proposed that the area to be planted be reduced from 1,000 hectares per annum to 600 hectares and that the remaining 400 hectares per annum be planted in Sumava National Park, the Czech part of a large national park straddling the border between the Czech Republic and Germany.

Ecuador, FACE Project Number 6

Face’s project in Ecuador is rather different. Face is supporting the Ecuadorian Forest Service, Inefen, in assisting peasantry who wish to reforest their land in the eastern and western foothills of the Andes. These peasants are amongst the poorest people in Ecuador. The project area is only several kilometres wide but extends for almost 1,000 km along the Andes. The project aims to plant 75,000 hectares of forest. Face is contributing a maximum of NLG 2 million per year, sufficient to plant 5,000 hectares.

Individual projects are between 100 and 300 hectares in size. Inefen, supported by Face, supply the materials to interested fermers. Each landowner can receive $130 of compensation per hectare planted. The planting material is supplied on credit, with the land acting as surety. The planting is inspected after one and three years, after which Face pays the sums due The fermers must manage their forests for a remaining 22 years before the timber can be harvested and sold or utilised by the fermer. If the trees are felled after

this 25 year limit, the land must be reforested, with this contract running for 99 years. If the forest is felled within 25 years, the owners must reforest at their own cost or run the risk of having their land confiscated. It was decided recently that the programme would be opened to nature conservation organisations such as Fundacion Natura and to larger private landowners (Face, 1995a, p. 20).

Uganda, FACE Project Number 7

In August 1994 Face began a project in Kibale National Park in Uganda, working as a partner to Uganda National Parks in the reforestation o f 35,000 hectares of damaged forest in Uganda. Face plans to supply NLG 3.8 million between 1994 and 1996.

Under the regimes of Amin and Obote in the 1970s, many ethnic groups sought safety in remote forest areas, causing understandable destruction to the forests. Since 1989 attempts have been made to restore the status of the forest reserves.

Face and the Ugandan authorities agreed a contract for the rehabilitation of 5,250 hectares of forest in the period 1994-1996. The total of 35,000 hectares o f restored forest will be made up of 25,000 hectares in Mount Elgon National Park and about 10,000 hectares in Kibale National Park. The first phase of the project in Kibale National Park, in western Uganda, 60 kilometres fi-om the Zairian border, involved in^roving the access road, setting up a nursery, building ofiSces and staff quarters and laying 2 kilometres of pipeline to supply water fi-om a river to the nursery. Kibale National Park is renowned for its high density of primates (apes) and it has been taken into account that these apes may cause additional damage to the afforestation project in the first few years o f planting (Face, 1995a, p. 14). Work is more advanced in Mount Elgon National Park; by the end of 1994, 171 hectares had been planted. Face reports that these two projects employ about 400 people.

Bhutan

Face representatives have visited Bhutan to consider an afforestation plan there. The Face board has accepted a proposed 15,000 acre project (Face, 1995a, p. 21). An accompanying energy project, focusing on the use of wood as a fuel source and advocating fuel efiBciency and or fuel switching, may also be conducted.

Indonesia

Face signed a memorandum of understanding with the Indonesian Ministry of Forestry on 9 August 1993 for the reforestation of 27,000 hectares of degraded rainforest in Kalimanatan, Indonesia. However, during negotiations that continued until January 1994, according to Face,

‘it became apparent that insufiScient guarantees could be obtained for the

sustainable maintenance of the forest that was to be planted’. Face then terminated the negotiations (Face, 1994, p. 23).

USIJI Forestry Projects

Rusafor, Project Number 9

Forest Planting in Russia

Oregon State University; the US Environmental Protection Agency’s climate change division; the Saratov Federal District o f the Russian Federal Forest Service; the Moscow and Volga branch of the International Forestry Institute. Dr Ted Vinson, Oregon State University, tel. 001 503 737 3494

The Russian Rusafor (the abbreviation comes from Russian/USA Forestry and Climate Change Project) afforestation project is taking place in the Saratov region in Russia, 700 km south east o f Moscow.

This project will evaluate the biological, operational and institutional opportunities to manage a Russian forest as a carbon sink. Three sites totalling 500 hectares, which were formerly marginal agricultural land or burned forest stands, were planted with tree seedlings in Fall 1993 and Spring 1994. Site one contains 50 hectares while sites two and three contain 240 and 210 hectares respectively. Carbon will be accumulated for sixty years on site one and for forty years on sites two and three.

Credits produced by the project will be shared equally amongst the joint implementation partners. According to an agreement signed between Oregon State University and the Russian Federal Forest Service, when the plantations reach maturity, timber may be harvested but only for applications where the timber will be preserved as a carbon store for 100 years or more. Non commercial debris may be used as a biomass fuel substitute for fossil fuels in energy or heating systems. As part of the application, the Russian Federal Forest Service submitted a letter stating that, without external help, they had had no plans and no resources to establish plantations on those sites for at least ten years.

Carfix, Project Number 10

Forest Protection and Planting in Costa Rica

Fundecor, Costa Rica; Wachovia Timberland Investment Management; Costa Rican Ministry of Natural Resources, Energy and Mines. Mr Franz Tettenbach, FUNDECOR, Aptdo 7170-1000, San Jose, Costa Rica.

The Costa Rica Carfix project is a joint implementation project in the Central Volcanic Mountain Range Conservation Area of Costa Rica (declared a World Biosphere Reserve by UNESCO in 1988). This project will expand sustainable forest management and create additional forest cover in an area o f 91,000 hectares, 71,000 hectares of which are in a major national park and 20,000 of which are in a buffer zone. This region of central Costa Rica suffers heavy forest conversion to pasture for cattle grazing.

The project involves the reforestation of 5,533 hectares, sustainable management of 20,502 hectares of natural forest and natural forest regeneration of 10,670 hectares. Buffer zone funding would involve annual payments to private landowners for progressive forest management. Funding for park activities would pay for the policing of illegal logging and the purchase of private holdings. The project will involve farmers, private forest owners and community organisations.

Rio Bravo, Project Number 11

Forest Planting and Protecting in Belize

The Nature Conservancy; Programme for Belize; Wisconsin Electric Power. Alan Randall, The Nature Conservancy, tel. 001 703 841 4882.

The project has two components: component A purchases and protects 6,014 hectares of forest threatened by development into agricultural use. Component B involves the development of sustainable forestry programmes in 44,524 hectares of forest.

■i

Component B will increase the net carbon storage up to an optimal sustainable level, in perpetuity. Sequestration is enhanced by production of durable wood products from the forests. Harvests will be restricted to maintain the enhanced biomass level; harvesting will also be restricted to mature trees that have reached their maximum level of sequestration. Component B will develop and inclement a marketing strategy for sustainable timber extraction.

Sequestration

In the baseline, component A’s broadleaf hectares are reduced through deforestation from 152 to 5 tC/hectares, and bajo hectares are reduced from 36 to 5 tC/hectares. With the project broadleaf hectares rise from 152 to 158 tC/hectares.

Component A sequesters about 760,000 tC. The following table shows the baseline where land is converted to crops. Not only would carbon be lost when the forest was cut down, but the carbon that a living forest would have sequestered over time would also be lost.

Year Baseline: Standing carbon Standing carbon lost Loss of growth Loss against baseline Action

Now 760,000 tC OtC OtC OtC

+1 620,693 147,787 5,749 153,536 20% conv. to cropland +2 472,906 295,574 11,498 307,072 40% conv. +3 325,119 443,361 17,248 460,609 60% conv. +4 177,332 591,148 22,997 614,145 80% conv. +5 29,545 738,936 28,746 760,000 100% conv.

In component B, those broadleaf hectares that are harvested rise from 152 to 158 t/C hectares; those that are not harvested rise from 152 to 210 tC/hectares. The baseline for both these areas is to stay at 152 tC/hectares.

Component A contains 4,791 hectares of broadleaf forest apt for forestry activity, where timber will be harvested sustainably. 1,118 hectares are bajo and 105 hectares are ‘other’; herbaceous swamp and open water.

The intention for the broadleaf forest areas is to find an optimal balance between carbon stocked as timber and timber utilised to maximise revenue. Sustainable logging will be ^plied to 25,866 hectares (4,791 hectares in con^onent A and 21,075 hectares in component B). The remaining 5,308 hectares will be left undisturbed. Undisturbed unlogged forest will achieve 210 tC/hectares; sustainable logged forest can achieve 75% o f this, yielding 158 tC/hectares.

Component B contains 21,075 hectares of broadleaf forest apt for forestry activity. The 5,308 hectare conservation area is made up of 3,494 hectares not apt for forestry and

1,815 hectares of swan^j: these hectares will achieve 210 tC/hectares. 4,972 hectares of component B are bajo and 3,164 hectares are ‘other’. Component B also contains 10,010 hectares of pine.

Component A B A+B Total

tC/ha. ha. 000s tC 000s tC/ha. ha. 000s tC 000s tC tC Broad -leaf Today 152 4.79 728.2 152 21.1 3,203 3,932 With­ out 5 4.79 24.0 152 21.1 3,203 3,227 With 158 4.79 757.0 158 21.1 3,330 4,087 859.5 Cons. Zone Today - 0 - 5.3 807 807 With­ out - 0 - 5.3 807 807 With - 0 - 5.3 1,115 1,115 307.9 Bajo Today 36 1.12 40.2 5.0 179 219.2 With­ out 5 1.12 5.6 5.0 179 184.6 With 36 1.12 40.2 5.0 179 219.2 35 Pine Today - 0 - 2.5 2.5 2.5 With­ out - 0 - 2.5 2.5 2.5 With - 0 - 2.5 110 110 108 Other 0.11 3.2 Total 6.01 37.0 1,310

^ th o u t this project the Bajo areas in component A would be converted for rice production, seeing the carbon fell from 36 to 5 tC/hectares. The Bajo area in conqx)nent B would remain undisturbed. The pine stands (component B) are located in poor soils and are degraded by seasonal uncontrolled fires. Without a fire control management scheme.

carbon stored will stay at 1 tC/hectares. 2,500 hectares o f the total 10,010 hectares will enjoy pine forest management, increasing their carbon content from 1 to 44 tC/hectare.

Additionality

In 1992, the land to be purchased in component A was placed for sale by its owners NRE and offers were received from the local agricultural community. The project proposal states that this project was initiated precisely because of the USIJI. The project’s

land use practices will demonstrated the commercial viability of low impact logging. The project effort could pronçt local agricultural interests to abandon cultivation on marginal lands and return them to forest cover.

To reduce leakage, component A includes an outreach programme to the local ferming community to promote reduced greenhouse gas land use strategies.

Cost

$2.6 million. $1.3 million is to be paid to New River Enterprises for the 6,014 hectares in component A; a first payment o f $210,000 was made in July 1995. Component B will cost a minimum of $1.03 million, with the total cost of A and B not exceeding $ 2.6 million. The projected payment schedule is:

1995 $ 1,400,200 1996 $ 166,866 1997 $ 166,866 1998 $ 166,866 1999 $ 100,200 2000 $ 119,800 2001 $ 119,800 2002 $ 119,800 2003 $ 119,800 2004 $ 119,800

Ecoland (Esquinas Carbon Offset Land Conservation Initiative), Project Number 12

Forest Protection in Costa Rica

Trexler and Associates; Tenaska Washington Partners II Ltd.; Costa Rican Ministry of Natural Resources, Energy; the Council of the Osa Conservation Area; Combos; the US National Fish and Wildlife Foundation; Rainforests for the Austrians. Dr Mark Trexler, Trexler and Associates, tel 001 503 786 0559.

Ecoland aims to purchase and protect tropical rain forest and wildlife habitat in the Esquinas Forest National Park in south-western Costa Rica, in an area known as the Osa Conservation Area. The project involves purchasing either 2,000, 3,000 or 3,200 hectares of land and preventing this from being deforested. No new planting will be carried out. The Esquinas Forest W2is declared a national park in 1993, but without acquisition funding; 95% of the park is privately owned. The park contains 12,500 hectares, 80% of which is primary forest. The Ecoland project will purchase approximately 15% o f the Esquinas Forest. The major threat to the forest is slash and bum ferming and land clearance practices.

Additionality

Esquinas forest landowners are becoming impatient with the government’s inability to fulfil its promise to purchase their land. Unless action is taken to acquire the land, Esquinas could revert to the classification of a forest reserve, in which case deforestation would be allowed and encouraged by government forest management programmes. Currently, four of the 124 landowners in the park have government permits to harvest timber, another nine have applied for permits.

Subsequent to the declaration of Esquinas Forest as a national park in 1993, changes in the law intended to protect the rights of private landowners make it illegal for the Costa