impacts of forest carbon markets oct 2008
DESCRIPTION
by Gary Bull, Professor, Department of Forest Resources Management, University of British ColumbiaTRANSCRIPT
IMPACTS OF FOREST CARBON MARKETS
ON LOCAL LIVELIHOODS: CHINA,
MOZAMBIQUE AND AFGHANISTAN
Gary Q. Bull, Ravi Hegde, Yazhen Gong and Kijoo Han
University of British Columbia, Vancouver, Canada
October 16th, 2008
Forests, Rights and Climate Change
Oslo, Norway
ALTERNATIVE TITLE
RAD
REDD
ROGUE
What did we learn?
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OBJECTIVES
1. What are some key elements in contract design and
revenue distribution from forest carbon projects?
2. What is the influence of social capital on successful
project implementation?
3. Are property rights and governance systems
sufficiently in place that can adapt to payments for
ecosystems services such as carbon?
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MOZAMBIQUE
• Voluntary market
• Enviro-trade
• Stern report
• CIFOR - PEN project
• Part of our work connects to a long term World Bank project
• Household study
• Equity issues with carbon contracts
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VILLAGE PROFILE - MOZAMBIQUECharacteristics Nhambita Mbalawa PungueLocation Within buffer zone Outside park On the park boundary
Main forest
productsOwn use: wild food,
grass, fuel, poles &
limited use of clay for
pottery & timber
Own use & sale: wild
food, fuel, bamboo,
charcoal,poles,
timber & gold
panning
Own use & sale: wild
food, fuel, bamboo,
poles, fish & gold
panning
Farming Mainly subsistence; Mainly subsistence; Both subsistence &
commercial (tobacco;
vegetables)Major
environmental
resource
collected
Poles, wild food, clay
for pottery
Poles, wild food,
bamboo, charcoal,
gold panning
Fish, poles, wild food,
gold panning
Households
Sampled58 131 141
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RESULTS - MOZAMBIQUE
Age, income and education matters
Vulnerable households see fewer benefits
Larger land holders more likely to engage
Poorer tend to use miombo woodlands for
subsistence, while richer households use them
for cash.
Forests act as a crucial safety net against
income shocks
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Cash income composition (MTS)
Fish sale, 5.89
Wage, 44.51
Business, 5.65
crop sale, 6.56
Other environmental products
sale, 8.48
livestock sale, 7.62
Processed forest products
sale, 7.25
Unprocessed forest products
sale, 0.09Other sources, 10.22
PES income, 3.7
crop sale
livestock sale
Unprocessed forest products sale
Processed forest products sale
Fish sale
Other environmental products sale
Wage
Business
Other sources
PES income
Result – Carbon Income10/15/2008
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DEFORESTATION IN NURISTAN, AFGHANISTAN
Source: UNOSAT http://www.unosat.org/freeproducts/afghanistan/Forest_zone3_1977_2002.jpg
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SURVEY TEAM AND NURISTAN
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PRELIMINARY RESULTS
The Bari caste rely on income from timber
products
The Atrojan caste rely on livestock production
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CHINA CDM FOREST PROJECT
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GUANGXI STATISTICS
County Land area
(ha)
Land tenure type Number of
villagesCommunal
lands
(ha)
Individual
lands
(ha)
Cangwu 2000 901.6 1098.4 15
Huanjiang 2000 2000 0 12
Total 4000 2901.6 1098.4 27
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GUANGXI SHAREHOLDING SYSTEM
Local forest companies
Local communities
Capital& techniques
Land
Shared income
Carbon
credits
Timber
Pine resins
Output
Shared income
Fig. 2 A share-holding system created by Guangxi carbon
project
Input
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POSITIVE RESULTS - GUANGXI
Villages were able to effectively organize
themselves
Unique share-holding system of 27 villages and
3 local forest companies was developed
Creative combination of native tree species,
(3000 ha) and exotic tree species (1000ha)
Internal rate of return is acceptable
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NEGATIVE RESULTS - GUANGXI
Up to September 2007, only 55% implemented.
Regenerating degenerated and remote lands is
difficult and costly.
Income-sharing ratios between the
communities and the local forest companies
not accepted
Unresolved property rights disputes
Low levels of trust in some of the villages which
resulted in poor participation rates.
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NEGATIVE RESULTS - GUANGXI
In 2008, it was determined that at least 14% of
the area slated for reforestation will not be
regenerated – infertility.
Farmers and reforestation companies have not
received any payment from the buyers.
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CONCLUSIONS
What are some key elements in contract design and revenue distribution from forest carbon projects?
Contract design
Adjust to unique community structures
Recognize biophysical limitation
Work with acceptable shareholder systems
Make payments at the appropriate time
Ensure that potential income is accessible to those with lower income,
lower education levels, older people and women.
Revenue distribution
Ensure local people understand the nature of the benefits
Sometimes indirect compensation, such as building a school, is more appropriate.
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CONCLUSIONS (CONT’D)
What is the influence of social capital on
successful project implementation?
Social capital
Analyze trust. Trust among households can greatly increase the
probability of success for a project. There are ways to measure trust and
the means to develop trust .
Create appropriate shareholder systems
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CONCLUSIONS (CONT’D)
Are property rights and governance structure in place that can adapt to payment for ecosystems services such as carbon?
Property right allocation
It has been largely sorted out, in surprising places (Nuristan)
It has impacts on the success of project implementation (China)
Governance structure
The distribution of carbon payments will have to recognize well functioning governance structure and adapt to them.
- In Nuristan it seems people are most comfortable with village level decisions being made by elders, not an elective process with one vote per household. The structure also seems to work for different castes in the villages.
- In China, the development of a shareholder system was critical to project establishment.
- In Mozambique the interplay between a shareholder system and traditional governance needs further analysis.
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SKILL TESTING QUESTION
Which country represented:
RAD
REDD
ROGUE
?
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