redd project idea note name of project: bale...

Bale Mountains Ecoregion Emission Reduction Assets

LULUCF PIN Template November 24, 2004 1

REDD PROJECT IDEA NOTE

Name of Project: Bale Mountain Ecoregion Emission Reduction Assets: A large scale community based Carbon Finance project for the voluntary carbon

market reducing emissions from forest degradation and deforestation Date submitted: March 2008 Revised: September 2011

A. Project description, type, location and schedule

General description

A.1 Project description and proposed activities

The project will protect and rehabilitate the natural forests in the Bale Mountain Ecoregion of Ethiopia, one of the 34 Global Biodiversity Hotspots. The project covers an area of 0.5 million ha and surrounds a National Park with an area of 0.2 million ha. A pre-feasibility analysis indicates that the project will be able to generate 2.7 million tons of net emission reductions over the initial 10 year baseline period by i) reducing the current deforestation rate, ii) rehabilitating the forest and related carbon stocks and by introducing sustainable forest management practices. Community based organizations (CBOs) and the Bale Branch of the Oromia Forest and Wildlife Enterprise, will be the project implementers. A historic carbon baseline was established using high resolution remote sensing technology (SPOT and LANDSAT images from 1986, 2000 and 2006). The area was stratified into five forest types: highly and slightly degraded dry mountain forest, highly and slightly degraded moist mountain forest and bamboo forest. Depending on the regional distribution of settlements in the area, 3 different forest management types will be established: i) Forest Enterprise managed forests (FEM), ii) CBO managed forests, where CBOs have exclusive forest user rights and iii) Enterprise & CBO joint forest management (JFM), where the latter will be rewarded for protecting the forest based on a performance contract and carbon revenue sharing.

A.2 Technology to be employed Sustainable Forest Management (SFM) will be introduced in all natural

forests in the Bale Mountain Ecoregion, i.e. protecting regeneration,

rotational grazing, pruning, utilisation of wood to release future crop

trees from competing vegetation etc. The respective approach was

developed in a number of pilot project areas covering in total about

35,000 ha. The EU and EU member states have already invested more

than US$ 10 million into the development of the SFM track record. The

Oromia state government has now adopted the approach as the main

management principle for natural forests. For the SFM implementation,

CBOs will be established and SFM will be introduced in the whole Bale

Mt Ecoregion following existing guidelines. In a phased approach the

following activities will be introduced, presented in the respective order:

1st, CBO members will protect the forest from illegal logging to reduce

the current level of deforestation; 2nd, natural regeneration will be

supported by preventing grazing in the area for about 5 years to increase

carbon stocks, 3rd, farmers will sustainably utilise timber for their own

consumption.



Project proponent submitting the PIN

A.3 Name Oromia Forest and Wildlife Enterprise

A.4 Organizational category (choose one or more)

a. Government

b. Government agency c. Municipality d. Private company e. Non Governmental Organization

A.5 Other function(s) of the project developer in the project (choose one or more)

a. Sponsor b. Operational Entity under the CDM

c. Intermediary d. Technical advisor

A.6 Summary of relevant experience

The Enterprise is an independent public business entity to support natural

forest and wildlife conservation, the development and sustainable

utilization of planted forests and to reinvest profits into rural community

development. The agency is in charge of the management of 8 branches

which are expected to generate an annual turnover of about US$ 11

million in this fiscal year (July-June). Among these is the Bale Branch that

will implement the project. The organisation employs more than 2,000

professional foresters and has gained substantial experience in

community forest management. The General Manager Dr. Girma

Amente has a track record in developing community based organisations

(CBOs) and to implement successfully community managed forest1.

A.7 Address Oromia Forest and Wildlife Enterprise, Addis Ababa, Ethiopia

A.8 Contact person Dr. Girma Amente

A.9 Telephone +251 (0)911 650644 / +251 (0)913 311325

A.10 E-mail and web address [email protected]

Project sponsor(s) financing the project

(List and provide the following information for all project sponsors) A.11 Name NGO Consortium FARM-Africa / SOS Sahel Ethiopia

A.12 Organizational category (choose one or more)

a. Government b. Government agency c. Municipality

d. Private company e. Non Governmental Organization

A.13 Address

(include web address) Bale Ecoregion Sustainable Management Programme, Ethiopia www.pfmp-farmsos.org

A.14 Main activities Development of CBOs, SFM extension support, carbon monitoring

capacity building

A.15 Summary of the financials (total US$ 9 Million BERSMP project budget for six years;

1 AMENTE, G; HUSS, J.; TENNIGKEIT, T. 2006. Forest Regeneration without planting: The case of community managed

forests in the Bale Mountains of Ethiopia. Journal of the Drylands 1(1): 26-34, 2006.



assets, revenues, profit, etc.) US$ 4.5 million budget for the period 2009-2012:

Type of project

A.16 Greenhouse gases targeted CO2 / CH4 / N2O

A.17 Type of activities Forest regeneration & forest management for carbon conservation

& sequestration

Location of the project

A.19 Country Ethiopia

A.20 Nearest city Adaba and Robe

A.21 Precise location Woredas of Agarfa, Dinsho, Adaba, Dodola, Goba, Sinanan, Gololcha,

Gasera, Mena, Angetu, Kokosa, Berbere, Harana Buluk, Nensebo, Mede

Wolabu and Guradhamole. In these Woredas there are six priority forest

areas, Aloshe Batu, Goro Bale, Harana Kokosa, Menna Angetu, Kubayu

and Adaba Dodola. The total area of the programme is around 2.2 Million

ha.

Expected schedule

A.22 Earliest project start date (Year in which the project will be operational)

2009

A.23 Estimate of time required before becoming operational after approval of the PIN

Time required for financial commitments: 1 months

Time required for legal matters: 2 months

Time required for negotiations: 6 months

Time required for establishment: 12 months

A.24 Year of the first expected

CER / ERU / RMU / VER delivery

2012

A.25 Project lifetime

(Number of years)

20 (to be extended for 60 years)

A.26 Current status or phase of the project

a. Identification and pre-selection phase

b. Opportunity study finished c. Pre-feasibility study finished d. Feasibility study finished e. Negotiations phase f. Contracting phase

A.27 Current status of the acceptance of the project by the Host Country (choose one)

a. Letter of No Objection is available

b. Letter of Endorsement is under discussion or available c. Letter of Approval is under discussion or available

A.28 Position of the Host Country with regard to the Kyoto Protocol (choose one)

The Host Country a. Is a Party to the Kyoto Protocol (i.e. has ratified or otherwise

acceded to the Kyoto Protocol) b. Has signed the Kyoto Protocol and demonstrated a clear

interest in becoming a Party in due time c. Has not signed the Kyoto Protocol



B. Expected environmental and social benefits

Environmental benefits

B.1 Estimate of carbon sequestered or conserved (in metric tonnes of CO2 equivalent – t CO2e. Please attach spreadsheet.)

Net 2.7 million tCO2e over 10 years

B.2 Baseline scenario (What would the future look like without the proposed project? What would the estimated total carbon sequestration / conservation be without the proposed project? Mention the baseline methodology, as per the CoP9 text.2

Also explain why

the project is additional referring to the EB16 guidelines3).

Baseline: In Ethiopia 11.9 % of the land is covered by forests and the annual deforestation rate is 1.1 %. 141,000 ha of forests disappear annually according to the FAO Global Forest Resources assessment 2005. In the pilot project area the annual deforestation rate between 1986 and 2006 was between 3%-5% depending on the forest type (GIS office Bale Mountain based on SPOT and LANDSAT change detection analysis). In the absence of the project forest degradation will continue and carbon stocks will further decrease. Associated with this will be a loss of biodiversity and wildlife habitats for endemic species like the Ethiopian wolf. The historical baseline approach will be used for the proposed REDD project activity. Data used to determine the baseline scenario: • Satellite imagery • Biomass survey with cluster plot design,

measured parameters were: number of trees, respective species, dbh and tree height.

Additionality: The demonstration of additionality will follow the CDM-SSC-AR- methodology. The project activity would not have occurred without the carbon finance component due to the following barriers: • Investment barrier • Barriers due to social conditions

Leakage: Three types of leakages will be addressed: grazing, fire and wood utilisation. Grazing: The project will reduce seasonal grazing. The number of domesticated grazing animals displaced is estimated to be less than 10% of the average grazing capacity. During the development of the PDD the grazing intensity will be assessed using the CDM- AR-Leakage tool for Estimation of GHG emissions related to displacement of grazing activities in A/R CDM project activity. Fire: Forest fires are man-made in the area to increase the grass carrying capacity at the end of the dry season. The rules outlined in the forest use contract and the CF project will provide incentives not to start any fire in the forest. Wood utilisation: The project will reduce wood utilisation within the existing forest. However, considering that the project is covering the whole natural forest area this will not result in increased logging elsewhere. It is likely that

2 http://cdm.unfccc.int/Reference/Documents/dec19_CP9/English/decisions_18_19_CP.9.pdf

3 http://cdm.unfccc.int/EB/Meetings/016/eb16repan1.pdf



fuel-wood prices will temporarily increase and people that are not entitled to use deadwood in the framework of PFM are forced to plant trees on their farms. The Enterprise will support the poorest of the poor to develop woodlots on public land if they do not have any land.

B.3 Existing vegetation and land use (What is the current land cover and land use? Is the tree cover more or less than 30%?)

Maps are attached to this PIN

Vegetation Zone

Total area (ha)

Degradation level (ha)

Slightly degraded

(crown cover 70%)

86,101

Moist forest

246,748

Heavily degraded

(crown cover 50%)

160,647

Slightly degraded

no

Mountain dry forest

242,405

Heavily degraded (crown cover 30%)

242,405

Slightly degraded

86,101

Project areas

489,153

Heavily degraded

403,052

Leakage belt

346,737

Area is mainly heavily degraded woodlands

Total reference area

835,890

B.4 Environmental benefits The project will reduce emissions from forest degradation and deforestation. The project will also increase the asset value of the natural forests and supports the survival of a Global Biodiversity hotspot including its endemic fauna and flora. 26% of Ethiopia’s endemic species are found in the area, including the entire global population of the giant mole rat (Trachyoryctes macrocephalus). Of the area’s recorded birds, 6% are Ethiopian endemics. In addition there are several rare and endemic amphibian species found only in Bale as well as 1321 species of flowering plants with 163 endemic (23 to Bale alone) to Ethiopia.

B.4.a Local benefits Forest related benefits for local communities increase as a result of this project

and community rights and participation in natural resources management will be

strengthen. Based on case studies in Adaba-Dodola (IFMP project) it is expected

that with the carbon revenues and income from non-timber forest products

peoples livelihoods will improve compared to the current situation, in particular

the poor and forest dependent population will benefit.

B.4.b Global benefits The project will directly contribute to implement the UN Conventions on

Climate Change and to Combat Desertification. Indirectly, the project will

contribute to the UN Convention of Biodiversity by providing protection for the

Bale National Park. It also aligns itself with the Millennium Development Goals 1

and 8, to eradicate extreme poverty and to ensure environmental sustainability.

B.5 Consistency between the The project is in line with the Food Security Strategy of Ethiopia and the



project and the environmental priorities of the Host Country

Forest Action Plan. Furthermore, the project is directly contributing to implement

the above mentioned UN Conventions which have been ratified by the

Government of Ethiopia.

Socio-economic benefits

B.6 How will the project improve

the welfare of the community

involved in it or surrounding it.

What are the direct effects which

can be attributed to the project and

which would not have occurred in a

comparable situation without that

project? (e.g., employment creation,

poverty alleviation, foreign exchanges

savings). Indicate the number of

communities and the number of

people that will benefit from this

project.

The REDD project contributes to sustainable development assessed against DNA standards. The DNA, at the EPA, with support from the advisory committee will assess each project application against the three core criteria (social, economical and ecological) to make sure that projects contribute to sustainable development. In the present project idea, the communities will benefit from capacity building on SFM and from increased incomes through emission reductions (tCO2). The project will rehabilitate degraded areas and protect forest areas, improving environmental services for the communities, such as water flow and quality and erosion protection. These indirect benefits constitute an essential share of the overall socio-economic benefits of the project. The developed CBOs will provide permanent source of income from forest management and thus contribute to improvement of livelihoods and income diversification in the BMER. The institutional setting (Trust Fund) guarantees community participation and benefits from the sale of emission reductions. In more than 50% of the project area, communities will obtain exclusive user rights to rehabilitate and manage the forest and to generate income from the sale of wood products and emission reductions (see A.2).

B.7 Are there other effects? (e.g., training/education due to the introduction of new technologies and products, replication in the country or the region)

The project will establish Community Based Organisations (CBOs), and will train communities to sustainably use and conserve the forest. CBOs structures will not only support the implementation of the REDD project, but even more important they also serve as a platform to provide public health training, to maintain culture and develop and disseminate new income generating activities.

C. Finance Project costs

C.1 Preparation costs US$ 0.2-0.5 million

PDD

C.2 Establishment costs US$ 1-1.5 million

CBO development and set up of institutional setting and contracts

C.3 Other costs (explain) US$ 0.9 million JFM development costs

US$ 3 million for leakage mitigation (plantations / woodlots)

US$ 2 million (+) for leakage mitigation (improved stoves)

C.4 Total project costs US$ 6-8 million

Sources of finance to be sought or already identified

C.5 Equity (Name of the organizations and US$ million)

US$ 1.5 million for CBO development by the BESMP

US$ 1 million for woodlot planting by the BESMP (in materials and technical

support, labor by the communities)

US$ 1 – 3 million by the Oromia Forest and Wildlife Enterprises for JFM

development and plantations (not yet confirmed; investment costs by the Forest

Fund)

C.6 Debt – Long-term (Name of the organizations and US$ million)



C.7 Debt – Short term (Name of the organizations and US$ million)

C.8 Grants

C.9 Not identified (US$ million) US$ 3-6 million

C.10 Contribution sought from Carbon Fund

(US$ million)

US$ 3-6 million

C.11 Sources of carbon finance (Has this project been submitted to other carbon buyers? If so, say which ones)

C.13 Indicative CER / ERU / RMU / VER price (subject to negotiation and financial due diligence)

US $ 4 / tER

C.14 Emission Reductions Value (= price per t CO2e * number of tCO2e)

US$ 10.8 million (=US$ 4 x 2.7 million tER) over 10 years

C.15 Financial analysis (If available for the proposed CDM / JI activity, provide the forecast financial internal rate of return (FIRR) for the project with and without the CER / ERU / RMU / VER revenues. For standardization purposes,

provide the financial rate of return at the expected CER / ERU / RMU / VER price above and US$4/t CO2e and assume 20 years worth of carbon payments, even though that price and purchasing period may not be the one offered by the BioCarbon Fund. Please attach spreadsheet if available.)

FIRR without carbon: information will be provided in the PDD

FIRR with carbon: information will be provided in the PDD



Annex 1: Maps

Map 1: Location of the project region in Ethiopia

Map 2: Vegetation and forest types in the region, stratified according to level of degradation



Map 3: Change detection map 1997/2002 Wajib project Dodola (red forest decrease, green forest increase)



Map 4: Change detection map 2002/2006 Wajib project Dodola (red forest decrease, green forest increase)



Annex 2: Pictures

Picture 1. Forest inventory work in wet Afromontane forest in the Bale region, near Adaba.

Picture 2. Closed Afromontane forest in the Bale region, near Adaba.



Picture 3. Participatory forest management planning with a CBO.

Picture 4. Muslim family living in the area.