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EX-ACT Ex-Ante Carbon-balance Tool

Louis Bockel FAO Agriculture Policy analyst

08/03/2010

Mainstreaming carbon balance appraisal of agriculture projects and policies?

A tool for measuring Carbon-Balance in

Ex-ante Project-Programme Impact Appraisal


• Agriculture is a major source of greenhouse gases (GHG), contributing directly 14% of total global emissions.

• When combined with related changes in land use including deforestation (for which agriculture is a major driver), agriculture’s contribution rises to more than one-third of total GHG emissions

• The climate mitigation dimension of a public policy could be evaluated through the incremental carbon balance fixed and through the cost generated by ton of equivalent CO2.

Should we promote carbon balance appraisal on agriculture projects and policies?


• A promising context : Carbon Balance as an emerging criteria in both public and private policies and investments

• Carbon balance appraisal may help to build new strategies to adapt and prevent climate change consequences especially in developing agriculture sector.

• FAO has just developed EX-ACT, a tool aimed at providing ex-ante estimations of the impact of agriculture and forestry development projects on GHG emissions and C sequestration, indicating its effects on the Carbon-balance

Should we promote carbon balance appraisal on agriculture projects and policies?


Multi benefits of improved carbon soil in term of mitigation, adaptation

Non climate benefits of improved carbon balance in soil are known and valued in

agriculture development. They are linked with many

environment objectives targeting agriculture and

natural resources (watershed management, water

management, drought management, sustainability of

cropping systems, erosion control, flood risk management,

water quality management, eco-tourism...).

Carbon balance and sustainable agriculture

EX-ACT Ex-Ante Carbon-balance Tool Assessing soil organic carbon (SOC) changes

• Soil organic carbon can be used as an indicator to identify the soil fertility, suitability for agricultural activities, soil degradation and guide agricultural policies and mitigate climate change.

• It can be integrated into the Monitoring African Food and Agricultural Policies (MAFAP) OECD-FAO initiative and assist African policy-makers and other stakeholders.

• Quantification of SOC and the SOC sequestration potential can facilitate the recognition of agricultural services as a mitigation option to climate change and the link with carbon markets


Structure of the tool ?

• Set of linked Microsoft

Excel sheets (19) • Based on land use and

management practices • Using IPCC default

values (Tier 1) and ad hoc coefficients (Tier 2)

• Measures C-balance

with/without project

Presenter

Presentation Notes

Set of linked Microsoft Excel sheets in which project designer will insert basic data on land use and management practices foreseen under projects’ activities.


Modular approach:


Project components

(identification of changes in land use and practices foreseen using specific

“modules”)

Project’s Description

Computation of C-balance

Climate

Continent

Soil

Duration

Deforestation Afforestation and Reforestation

Other Land Use Change Annual Crops

Perennial Crops Rice

Grassland Livestock

Inputs Other Investment

Matrix (Synthesis of

AFOLU)

Initial / future without project / future with project

Presenter

Presentation Notes

Required background The trainer is strongly recommended to verify the adequateness of the background of the trainees, notably their understanding of the concepts of “income distribution” and “social welfare”. If this background is weak or missing, the trainer may consider to deliver other modules before, as highlighted in the introduction. Other technicalities present in this module can be understood by all people with an elementary knowledge of basic mathematics and statistics. Targeted Audience This module targets current or future policy analysts in the public administration or in NGOs, political parties, professional organisations consulting firms willing to enhance their expertise in analysing welfare impacts of policies by means of analysing changes in income distributions. Lecturers in selected undergraduate courses in economics and related fields, can also be interested in using this material for academic purposes.


Logic behind :


Time (years) t0

Implementation phase

With project

Without project

Capitalization phase

t1 t2

Difference used to compute the final C balance in tons CO2 equivalent

Varia

ble

cons

ider

ed

(ha

of la

nd u

se, n

umbe

r of c

attle

hea

ds,…

)

x0

x1

x2

3 different dynamic of change (adoption) of practice

Benefits of the project

Presenter

Presentation Notes



• It computes the C balance with and without the project. The difference

represents the benefits of the project and indicates the net amount of C sequestered (C sink) as a result of project.

• It shows if the project is able to supply environmental services in the

form of C sequestration, thus contributing to climate change (CC) mitigation.

• Outputs could be used in financial and economic analysis of the

project, guiding the project design process and the decision making on funding aspects

• EX-ACT could therefore help project designers to select the project

activities which have higher benefits both in economic and CC mitigation terms (added value of the project)

• Put forward the multiple benefit of carbon as public good : Value to farmer , Value to community, Value to society

Outputs of the tool ?

Presenter

Presentation Notes



Application to a watershed project in Madagascar

Return

Presenter

Presentation Notes



T h a n k y o u


Annexes to answer to Questions


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ex-act ex-ante carbon-balance tool - oecd.org ex-ante carbon-balance tool louis bockel. fao...

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