NGO "ANOTHER WAY" (STICHTING BAKENS VERZET), NETHERLANDS, SUSTAINABLE INTEGRATED SELF-FINANCING DEVELOPMENT PROJECTS AND ADVANCED DEVELOPMENT TECHNOLOGIES

NGO Another Way (Stichting Bakens Verzet), 1018 AM Amsterdam, Netherlands.

01. E-course : Diploma in Integrated Development (Dip. Int.Dev.)

Edition 22: 15 January, 2011

Study points : 05 points out of 18

Minimum study time : 125 hours out of 504

The study points are awarded upon passing the consolidated exam for Section C : The Model.

Block 8 : Economic aspects.

[Study points 03 out of 18]

[Minimum study time: 85 hours out of 504]

The study points are awarded upon passing the consolidated exam for Section C : The Model.

Block 8 : Economic aspects.

Sect. 3 : Costs and benefits analysis. [17 hours ]

01. Introduction. (02 hours)

02. The investments made.(02 hours)

03. Detailed results. (02 hours)

04. Efficiency and effectiveness. (02 hours)

05. Management costs.(02 hours)

06. Costs and benefits analysis : introduction. (02 hours)

07. Costs and benefits analysis : details. (02 hours)

08. Kyoto Protocol : analysis possibilities finance. (Additional)

Section 3 report: (03 hours).

Sect. 3 : Costs and benefits analysis. [17 hours ]

08. Kyoto Protocol : analysis possibilities financing. (Additional)

This analysis has ten sections:

SECTION 00. EXECUTIVE SUMMARY.

SECTION 01. INTRODUCTION.

SECTION 02. POTENTIAL AREAS OF APPLICATION OF CDM MECHANISMS TO INTEGRATED DEVELOPMENT PROJECTS.

SECTION 03. SMALL SCALE CDM ACTIVITIES.

SECTION 04. PROGRAMMES OF ACTIVITIES.

SECTION 05. SELECTION OF THE CDM meTHODLOGIES FOR THE APPLICATIONS LISTED IN SECTION 2.

SECTION 06. INFORMATION SPECIFIC TO AFFORESTATION AND REFORESTATION (AR) METHODOLOGIES SPECIFICALLY APPLICABLE TO INTEGRATED DEVELOPMENT PROJECTS.

SECTION 07. NOTES SPECIFIC TO THE ROLE OF BAMBOO IN AFFORESTATION AND REFORESTATION PROJECTS.

SECTION 08. CDM FUNDING INDICATIONS FOR THE SELECTED METHODOLOGIES.

SECTION 09. GRAPHS AND CONCLUSIONS.

SECTION 00. EXECUTIVE SUMMARY.

Ecological, sustainable, local integrated development projects for the world’s poor provide simple, down-to-earth practical solutions to poverty- and development-related problems in individual project areas each with about 50.000 inhabitants. Social, financial, productive and service structures are set up in each project area in a critical order of sequence and carefully integrated with each other. That way, cooperative, interest-free, inflation-free local economic environments are formed there so that local initiative and true competition are free to flourish. The execution of each integrated development project meets and surpasses the objectives of all eight of the millennium development goals in its project area, with the exception of vaccination campaigns and curative medicine.

Integrated development projects provide all the services necessary for a good quality of life for all of the inhabitants in their project area. Each project in non-pastoralist areas costs about Euro 5.000.000, of which 25% is provided by the inhabitants themselves by way of work carried out under local money systems set up in an early phase of project execution. This leaves a formal money (Euros) initial financial requirement of about Euro 3.750.000 per project. Projects in pastoralist areas on the other hand cost about Euro 7.000.000 each of which 20% is provided by the inhabitants themselves by way of work carried out under local money systems set up in an early phase of project execution. This leaves a formal money (Euros) initial financial requirement for pastoralist areas of about Euro 5.600.000 per project. The difference between pastoralist and non-pastoralist areas is determined by the additional drinking water and food supply requirements of herds in pastoralist areas.

Some 2500 integrated development projects are needed for the integrated development of West Africa (excluding Nigeria and Ghana). Another 2500 projects are needed for the integrated development of Nigeria and Ghana. Since all individual projects are applications of a single Model for integrated development projects, they all have populations of about 50.000 people. They all provide the same basic set of social, financial productive and service structures needed for a good quality of life for all. This means that human and environmental needs and the size of structures and activities are common to all individual project areas, subject to minor local variations.

The initial financial requirements of respectively Euro 3.750.000 (non-pastoralist areas) and Euro 5.600.000 (pastoralist areas) must be deposited up-front to cover project execution over the two-year period foreseen for that purpose. This initial capital can be reimbursed over the following years through funds provided by the sale of certified emission reduction (CER) units issued under the Clean Development Mechanism (CDM) system set up under the Kyoto Protocol.

This is possible through the application of batches of small-scale Clean Development Mechanisms (CDM) methodologies common to all individual integrated development projects and based on Programmes of Activities (PoA) organised in two layers.

The first level Programme of Activities (PoA) is the mother PoA. For the integrated development of, say, West Africa (excluding Nigeria and Ghana) there will therefore be about 2500 applications of the first-level (mother) Programme of Activities (PoA).

The second level comprises a batch of 13 Programmes of Activities (PoAs) each using a specific CDM methodology. Each of the 2500 individual integrated projects may choose to apply any one, any combination, or all of the 13 second level PoAs in accordance with the local requirements there. For instance, one project area may apply methodology AR AMS-003, Version 1 for the reforestation of wetlands, another may choose to apply AR-AMS-0005 (Version 2, 8 April 2009) in an area with low inherent potential to support living biomass, while a third project area with both wet and very dry areas may choose to apply both methodologies.

The scheme with two layers of PoAs proposed here is different from anything done under the CDM mechanism until now. It will take time, financial investment, and full engagement at sub-regional level to get it accepted by the Executive Board of the Clean Development Mechanism. That acceptance could lead to a breakthrough in the financing of projects for the integrated development of the world’s poorest countries. Promotion of the proposal is a high risk enterprise involving substantial costs which must be paid up front without guarantee of success.

There are two main sectors for intervention under the CDM mechanism. The first one is CDM funding through reduction of CO2 emissions in project areas through the use of improved cooking stoves, more efficient lighting systems and switches from non-renewable biomass to renewable biomass and similar. The second one is CDM funding through increase of CO2 sinks through various afforestation and reforestation projects.

A preliminary analysis shows that the potential total average gross CDM income over 50 years for each integrated development project could be Euro 26.315.233. This is a cautious non-scientific initial approximation. It is subject to the deduction of at least 10% to cover administration and validation costs. It is expressed in present day Euros and based on CO2/tonne values on 14^th November 2009 (about € 14 per tonne CO2). It is, therefore, not discounted over 10-20 year periods according to traditional cost-benefit calculation practices. It assumes annual validation by the CDM Designated Operational Entity (DOE), while various CDM methodologies currently prescribe different validation periods. It also assumes enough water and labour is available to start the various afforestation/reforestation projects more or less contemporaneously. If this is not so, they may need to be phased.

A first level (mother) PoA with 2.500 applications representing 2.500 individual integrated development project areas (125.000.000 people) could generate up to € 65.788.082.000 of CDM funding. This would eliminate poverty in the areas concerned and surpass all of the millennium development goals there except those relating to vaccinations and curative medecines.

Click here to view a general graph showing annual distribution of expected gross CDM income for each individual integrated development project area .

The graph is intended to show that, whatever happens and however the calculations are made, each individual integrated development project can repay its initial capital cost investments over just a few years of operation.

Indicative incomes are gross of DOE validation and administration costs. An allowance of at least 10% should therefore be made to cover these costs. So the net figures from the preceding paragraph are :

Total expected net CDM income per project Euro 23.683.709.

Expected net CDM income relative to second year Euro 488.597.

Expected net CDM income relative to third year Euro 1.156.854.

Expected net CDM income relative to fourth year Euro 1.497.150

Expected net CDM income relative to fifth year Euro 1.441.510

Expected net CDM income relative to sixth year Euro 1.126.510

These indicative CDM incomes are subject to substantial change where, because of limitations in water supply and/or labour, activities have to be phased in. In that case the general total does not change, but the rate of repayment would be lower and the repayment spread over a longer period.

Not all of the potential CDM funding capacity has been absorbed. It has been assumed that more projects will use application 07 AR-AMS-0005 (Version 2, 8 April 2009) for very dry areas with Jatropha, than application AR AMS-003, Version 1 for wetlands with mangroves, which give a much higher CDM return. Use of methodology AMS-III-AR for methane recovery has been rated at zero until advice on the energy applications it could replace is received. The use of methodology AMS-III-AJ for the recycling of plastics and other materials has been rated at zero until information on the quantities of materials typically available for recycling is received. This aspect is discussed in more detail in section 01. Introduction.

How rapidly the initial capital input of integrated development projects is repaid under the CDM mechanism is a political issue. A regional project owner such as ECOWAS/UEMOA may make a call on 100% of CDM funds as they come in, or may accept for example repayment of 50%, allowing the remaining 50% to be distributed amongst the populations in the project areas, or any other combination of the two. Partial distribution of funds to the populations provides them encouragement and would form a great stimulus. Rapid re-entry of funds on the other hand provides revolving finance for new integrated development projects and more rapid execution of all projects included in the regional development plan in question.

Subject to the above comments, expected net CDM incomes projects in non-pastoralist areas with an initial capital input of Euro 3.750.000 would in principle enable repayment of the initial capital input fully repaid during the sixth year of activities, on the basis of CDM income from the first five years. In non-pastoralist areas with an initial capital input of Euro 5.600.000 the initial capital input could in principle be fully repaid at the end of the seventh year of activities, on the basis of CDM income from the first six years.

Once the initial capital for a given integrated development project has been repaid, all remaining CDM income is paid from time to time to the project’s Cooperative for the On-going Administration of the Project Structures (of which all adults in the project area are members) and either equally distributed amongst the members or used to cover extensions to project structures.

The full amount of the initial project capital necessary for the execution of each integrated development project must always be paid up front.

The proposed programme of CDM applications provides many major benefits to the local populations as well as funds to pay for their integrated development projects. Food safety is greatly increased through the supply of fruit and nuts and hedgerows for protecting crops in semi-arid and arid areas. The bamboo plantations provide food in the form of bamboo shoots, material for uncountable productive activities, and biomass for the production of mini-briquettes for cooking purposes. Moringa trees provide “spinach leaves” for food, edible oils for cooking, and moringa paste for water purification purposes. The Jatropha produces limited amounts of bio-fuel to drive local generators and equipment. All CDM activities improve the quality of the environment and maintain bio-diversity. All these benefits are all in addition to those already listed in the report on costs and benefits which is part of the Model for Integrated Development Projects.

Graphs showing details of the expected gross CDM income for each of the first nine years of project operation , as well as those for each of the various applications foreseen ,are available in Section 09 below.

A typical sub-regional integrated development plan with CDM funding is shown in a structural proposal for West Africa.

Table 1 shows the plan of Mother PoA and sub-PoAs. For the development of West Africa, the mother PoA would be expected to have about 2500 applications. Each of the sub-PoAs may have a single application at project level, or up to about 45 applications at intermediate development unit level, or up to 250 applications at local development unit level. Aplications 01 and 02 continue through 50 years. Application 06 continues through 30 years.

Table 1 : The two Programme of Activities (PoA) layers.

Year of operation

Sub-PoA

Mother

PoA

01. CO2 savings reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves. AMS-II-G.(Version 2) (50 years)

02. Demonstration projects for the recovery of forest lands and natural parks and reserves. AR-AMS-0004 , version 2. (50 years)

03. Afforestation activities in settlements as defined Distributed planting of fruit and nut trees and similar. AR-AMS-2 (version 2)

04. Small-scale agro-forestry activities – such as distributed bamboo plantations on grasslands and croplands. AR-AMS-0001

05 Small-scale agro-forestry activities – distributed demonstration Moringa plantations on marginal lands, AR-AMS-0004 , version 2.

06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species. AR AMS-003, Version 1. (30 years)

07 Demonstration Jatropha projects on lands having low inherent potential to support living biomass. AR-AMS-0005 (Version 2, 8 April 2009)

08. Use of renewable biomass instead of non-renewable biomass with improved cook stoves. AMS 1.E .

09. Recycling of human waste to avoid the use of industrial fertilisers AMS-III-Y

10. Methane recovery from animal waste for cooking and lighting purposes especially in pastoralist areas. AMS-III-AR (Reserve pending applications)

11. Replacement of kerosene lamps etc (wind, solar and/or renewable bio-mass including plant oil, gasification of biomass). Methodology AMS-III-AR

12. Replacement of non-renewable electrical, diesel- and battery-driven sources for mechanical equipment AMS-I-A

13. Local recycling and recovery of materials from solid wastes, including but not limited to plastics. AMS-III-AJ. (Reserve pending applications)

SECTION 01. INTRODUCTION.

01. Introduction.

A "certified emission reduction" or "CER" is a unit representing one ton of carbon dioxide-equivalent (CO₂-e) sequestered or abated, using global warming potentials defined by 2/CP.3. CERs are issued to project participants in CDM projects under Article 12 of the Kyoto Protocol and the CDM modalities and procedures (3/CMP.1, Annex, paragraph 1(b)).The value of CERs varies sharply over time. Prices on 14^th November 2009 were about € 14 per ton.

The main source for information on the Clean Development Mechanism (CDM) is the CDM website of the United Nations Framework Convention on Climate Change (UNFCCC). Many will find the Rulebook : Clean Development Mechanisms Rules, Practices and Procedures developed by Baker and McKenzie for the www.cdmrulebook.org website easier to navigate. The Baker and McKenzie rulebook includes an A-Z index of key words which is easy to consult. The www.cdmrulebook.org site is not, however, complete. For instance, it says what a Designated Operational Entity (DOE) is, but does not provide a list of approved DOEs. The list of DOEs can instead be found at the UNFCCC site. There are currently 48 of them. Most of them are based in industrialised countries, though there are some in “emerging” countries too. Designated Operational Entities (DOEs) intermediate between the people proposing a project and the CDM Executive Board which approves it. They evaluate and validate initial project applications and carry out periodic inspection and certification activities ensuring on-going compliance. Most of these DOEs are large international institutions which in practice are given (hold) a virtual licence to complicate or facilitate procedures. Project proponents are placed at their mercy. Furthermore, if the issuing organ (in the case of CDM projects, the Executive Board) makes an arbitrary decision either with regard to registration or to issuance of certificates, applicants have no remedy. In December 2010 there was still no CDM appellate body to handle appeals against the decisions of the CDM Executive Board. A preliminary discussion on this issue took place during the UNFCCC meeting in Cancun (Mexico), December 2010.

Recently introduced Programmes of Activities (PoA) appear to offer greater potential for CDM financing of integrated development projects in developing countries. A programme of activities defines parameters for CDM activities to be included in the programme. It is a sort of convention. Once registered by the CDM Executive Board, the PoA applies to activities brought under it from time to time without the need for project by project applications. For more information refer to : Beaurain F., Schmidt-Traub G, Developing CDM Programmes of Activities : A Guidebook, South Pole Carbon Asset Management Ltd, Zurich, 2010. “As of November 2010, after EB meeting 57, a total of 54 PoAs were under validation and 5 were registered.”(Beaurain, op.cit. p. 17)

Click here to see how this might work on a sub-continental scale in developing countries. In the example, a sub-regional authority is the “owner” of the Programme of Activities which form an integrated part of its development policy. The programme is run by a consortium of leading NGOs represented throughout the sub-region. This consortium is responsible for the operation of the programme and for the sale of CER emission certificates. On behalf of the project owner it collects CER emission funds and distributes them to the cooperative responsible for each individual project. Its activities are controlled and audited by a DOE (Designated Operating Entity) which acts on behalf of the CDM Executive Board (EB).

02. Limitations of Clean Development Mechanism (CDM) applications under the Kyoto Protocol.

CDM projects are used to replace or improve on current energy consumption. If there is no current energy consumption it cannot be replaced or reduced. This means that industrialised countries currently using 50 times more energy per inhabitant are offered much better opportunities under the protocol than least developed countries where very little energy is used. There is for the time being no practical limit to the amount of energy savings possible from the introduction of alternative energy sources in industrialised and even larger emerging countries. In contrast, the introduction of solar home systems in least developed countries is covered under the Kyoto Protocol only for the replacement of, for example, a few kerosene lamps and batteries. This means the entire CDM mechanism is (deliberately) biased to the advantage of the industrialised countries, though it is unlikely this will ever be openly admitted.

The use of the Kyoto protocol as a potential source for the funding of integrated development projects was foreseen in the Model for Integrated Development from the moment the Model was first formulated. Lip service to the possibility of financing small-scale CO2 projects in developing countries under the Kyoto protocol was finally raised at official level after several years of operation of the Protocol. Basic indications for official small-scale methodologies for cook-stove emissions reductions were, for instance, introduced at the end of 2009. Since the first commitment period of the Protocol is to expire in 2012 and the preparation of project submissions and their approval usually takes two years, it can be assumed that the extension to coverage of small-scale projects such as cook-stove projects was intended to show late and half-hearted “goodwill” towards projects benefiting the world’s poor while at the same time making sure the use of the Protocol for this purpose before the close of the commitment period would be limited. Methods of application still had to be “developed”. Monitoring was made so complex as to be virtually impossible to carry out at all. The compliance costs and costs of monitoring were set so high in proportion to the value of the CO2 savings that the number of applications to the CDM executive board would in any case be extremely limited. The complexity of bundling of small scale projects within the framework of single CDM applications procedures appears to be such that the only players to profit from the initiative are the international consultants paid to propose rules for them. As for Programmes of Activity (PoA), “As of November 2010, after EB meeting 57, a total of 54 PoAs were under validation and 5 were registered.”(Beaurain and Schmidt-Traub, op.cit. p. 17).

The CDM system is business- rather than development-oriented. With the exception of sectors 14 and 15, it is not clear how projects for the improvement of the quality of life of the poor in developing countries are intended to fit into it. The industrial bias built into the 15 nominated sectors speaks for itself :

01. Energy industries.

02. Energy distribution.

03. Energy demand.

04. Manufacturing industries.

05. Chemical industries.

06. Construction.

07. Transport.

08. Mining/mineral production.

09. Metal production.

10. Fugitive emissions from fuels (solid, oil, and gas).

11. Fugitive emissions from production and consumption of halocarbons and sulphur hexafluoride.

12. Solvent use.

13. Waste handling and disposal.

14. Afforestation and reforestation.

15. Agriculture.

The CDM system is also fraud-sensitive :

“[Europol states that] Carbon credit carousel fraud in the EU ETS resulted in losses of about 5 billion Euros in 2008-2009 and is estimated to account for 90% of carbon trading volume in some countries.” (Silverstein D., A method to finance a global climate fund with a harmonized carbon tax”, Munich University, MPRA paper 27121, 03 December, 2010. )

One theoretical advantage for projects in the least developed countries (LDCs) (according to their status on the date of the publication of the request for issuance) is that LDCs were exempted from the payment of registration and adaptation fees at the third meeting of the Conference of the Parties (COP) (2/CMP.3 par. 31) . Many of those countries have not been involved in CDM projects under the Kyoto Protocol at all. Other compliance and monitoring costs are still, however, payable.

02. Approval of projects by the Designated National Authority (DNA).

Each duly prepared project has to receive a letter of approval from a Designated National Authority confirming that the project activity contributes to the sustainable development of the country concerned. The DNA for any given country can be found at the list of designated national authorities at the CDM website of the United Nations Framework Convention on Climate Change. Note that on 9^th November 2010, 130 of the 191 countries that have ratified the Kyoto Protocol had less than 10 CDM applications. Of these, 50 countries had 1-9 projects, 53 countries with a DNA office had no applications, and 27 had no DNA office at all.

SECTION 02. POTential areas of application of CDM mechanisms under the Kyoto Protocol to integrated development projects.

01. Some specific issues to be faced when applying the CDM mechanism to integrated development projects.

01. Integrated development projects cover all structures and services needed for a good quality of life for all in each given project area. Activities such as afforestation/reforestation initiatives and the use of improved cooking stoves and of locally-made mini-briquettes for them are carried out under the local money system set up in each project area. Proceeds from the CER applications would be used to finance the formal-money costs of the projects and not directly related to the improved cooking stoves and mini-briquettes and other facilities themselves. The formal money costs of the projects are used to finance a wide range of services guaranteeing a good quality of life to all the inhabitants of each project area.

02. Why can’t a concept of agreed default values be introduced as methodology, so as to avoid complicated compliance and expensive monitoring activities altogether? Projects are in least-developed countries and would be exempt from registration and adaptation fees. The problem is how to get compliance costs down to a reasonable level, or eliminate the DOE altogether (???). Could this be done on the basis of a standard convention, either with a DOE or with the EB itself, given that all integrated development projects are more or less the same size with similar characteristics ? Integrated development projects are in the world's poorest areas where the rate of ecological degradation is highest. Some 2500 integrated development projects are needed to cover West- and Central Africa (excluding Nigeria and Ghana). A similar number of projects is needed to cover Nigeria alone.

03. How exactly can it be proved that bio-mass reductions achieved are reductions of non-renewable biomass?

04. How exactly, can one “prove” that carbon savings can only be obtained where carbon finance is made available ? Under the CDM mechanism, it must be shown that the claimed energy savings would not have been possible without applying the CDM mechanism. They must therefore be additional to any savings which would have taken place through the application of laws, national projects and similar which would normally be financed through other sources. This is called additionality. Proof of additionality is often the most difficult part of a CDM application. A Project is considered additional if, when it is compared with other investment possibilities, it is either “financially unattractive” or would meet insurmountable barriers for execution if carbon credits were not made available. The project should not be based on any common practices in the project area and may often have special features making it risky for investors.

02. Some logical advantages offered by integrated development projects for applications for CDM finance under the Kyoto Protocol.

01. They are suitable for a new-generation cooperative multi-methodology Programme of Activities (PoA) initiative at sub-continental level, without the need for business plans, promotional activities and similar. They would form part of policy implementation at sub-regional level.

02. Actions covered by integrated development projects are universally applicable in each clearly defined project area. For example, installation of improved stoves in each project area takes place over 2-3 years, so the so-called evolving base-line approach would need to be followed.

03. Formal money and micro-credits are not required for the purchase of items such as improved cook-stoves and mini-briquettes. All production, distribution and maintenance is carried out under the local money system set up in each integrated development project area. Briquette production, for example, is organised at well-commission level, in areas serving about 350 families. Formal money transport costs are eliminated.

03. Potential areas of application.

CDM applications under the Kyoto Protocol are organised by sector and sub-type or purpose. The 15 sectors are listed in section 1 above. Since integrated development projects involve a wide range of services and activities, CDM applications can in principle be made under several sectors and for several purposes, provided doubling-up of benefits is carefully avoided. CDM applications apply only to the replacement or improvement of existing energy use and conservation measures which increase carbon sinks. The known long-standing degradation of forested areas in most developing countries offers prospects for afforestation and reforestation projects there. These activities may take place in forests and natural reserves, built-up areas, grass- and croplands, wetlands, marginal lands, and areas unable to support bio-mass. These possibilities are included in items 02, 03, 04, 05, 06 and 07 below. Provided sufficient water is available (integrated development projects to not cover irrigation projects), afforestation and reforestation activities in a given integrated development project area may take place in any one or any combination of the described land-use types.

Most integrated development projects are likely to involve at least some of the following applications, listed in their likely order of importance:

01. (Small scale) CO2 savings through the reduced use of biomass for cooking purposes through the introduction of improved stoves. (Sector 3. Energy demand ?)

02. (Small scale) afforestation and/or reforestation projects. Recovery of forest lands and natural parks and reserves using traditional species and/or bamboo and/or other species. (Sector 14 - Afforestation and reforestation.)

03. (Small scale) afforestation and/or reforestation projects. Afforestation activities in settlements as defined Distributed planting of fruit and nut trees and similar. (Sector 14 - Afforestation and reforestation.)

04. (Small scale) afforestation and/or reforestation projects. Small-scale agro-forestry activities – distributed bamboo plantations, palms, soap-nuts and jatropha on grasslands and croplands. (Sector 14 - Afforestation and reforestation.)

05. (Small scale) afforestation and/or reforestation projects. Small-scale agro-forestry activities – distributed plantations for practical purposes for local use, including but not limited to bamboo, palms, soap-nuts and jatropha. (Sector 14. (Small scale) afforestation and reforestation.) on marginal lands.

06. (Small scale) afforestation and/or reforestation projects on wetlands using traditional species. (Sector 14 - Afforestation and reforestation.)

07. (Small scale) afforestation and/or reforestation projects on lands having low inherent potential to support living biomass. (Sector 14 - Afforestation and reforestation.)

08. (Small scale) use of renewable biomass instead of non-renewable biomass with improved cook stoves. (Sector 1. Energy industries ?)

09. (Small scale) recycling of human waste to avoid the use of industrial fertilisers. (Sector 13. Waste handling and disposal ?)

10. (Small-scale) methane recovery from animal waste for cooking and lighting purposes in pastoralist areas. (Sector 13 – Waste handling and disposal ?)

11. (Small scale) replacement of kerosene lamps incandescent light bulbs and of the use of throw-away batteries by renewable energy sources (wind, solar and/or renewable bio-mass including but not limited to plant oil, gasification of biomass). (Sector 3. Energy demand ?)

12. (Small-scale) replacement of non-renewable electrical and diesel-driven sources for mechanical equipment such as pumps and mills and, where applicable, pubic lighting systems. (Sector 1- 01. Energy industries ?)

13. (Small scale) local recycling and recovery of materials from solid wastes, including but not limited to plastics. (Sector 13. Waste handling and disposal ?)

Different methodologies are used for different sectors and purposes. Each methodology is unique to the sector it is listed under. Click here to see which methodologies are linked with which sectors. Since an activity may fall under any one of several sectors, there may be more than one methodology which can be applied to it.

Integrated development projects involve many sectors and purposes. The choice of sector and of the most suitable methodologies within the sector is complex. In some cases an application for the approval of a new combination system might turn out to be the best option as new methodologies can also be submitted to the CDM Executive Board for approval. The CDM methodologies currently available are described in the CDM Methodology Booklet issued by the United Nations Framework Convention on Climate Change (UNFCCC), Bonn, November , 2010. Many of them could be applied to integrated development projects. The United Nations Environment Program (UNEP) has recently issued a Tool for Selecting CDM Methodologies and Technologies (United Nations Environment Programme (UNEP) Risø Centre CD4CDM, Roskilde, November 2010). The tool does not split methodologies for sub-types sector by sector. It is also incomplete. Only six of the thirteen preferred methodologies listed below are included in the Tool for Selecting CDM Methodologies and Technologies. Surprisingly, with the exception of AMS-III-AJ they were all available at the time the tool was published. In the following texts, suggestion in the tool are introduced by the words : “Possible tool indication :”.

SECTION 03. SMALL SCALE CDM ACTIVITIES.

Small-scale CDM project activities.

Small-scale CDM project activities are classed in three groups:

I : Renewable project activities with maximum output capacity up to 15 MW or equivalent.

II : Energy efficiency improvements which reduce energy consumption involving emissions of up to 60 gigawatt hours per year.

III: Other activities reducing emissions which directly emit less than 60 kilotonnes of CO2, with savings up to 15 kilotonnes of CO2. Calculation procedures for group III projects have been simplified.

Individual small-scale activities under integrated development projects may fall under all three groups or any combination of them. Common sense would indicate that where possible they be included under group III where procedures are simplified. The fact that more small-scale activities so have taken place under groups I and II than under group III may be linked to the history of the development of the CDM mechanism and the relatively recent introduction of simplified procedures. For instance, there is still no specific simplified group III methodology for bio-mass briquettes ( covered under methodology AMS-I-E below) and the use of improved stoves (see AMS-II-G), except for methodologies AMS-III-D, AMS-III-F, and AMS-III-R which are all related to the capture of methane gas.

Type III small-scale methodologies have been selected in Section 4 below wherever practicable.

Advantages of registration as small-scale projects.

The advantages of small-scale projects are that they :

- Can be bundled (several projects presented as one) using the form for submission of bundled small-scale project activities (CDM-SSC-Bundle).

- Use the “simplified” CDM-SSC-PDD (version 03 – 22 December 2006) project design document. A guideline for the drafting of this document is available.

- Use “simplified” baseline methodologies.

- New baseline methodologies can be also submitted following the “simplified” monitoring plans for:

a) the collection and archiving of data needed to estimate or measure anthropogenic emissions by sources of greenhouse gases occurring within the project boundary during the crediting period as specified in appendix B for the relevant project category;

b) the determination of the baseline of anthropogenic emissions by sources of greenhouse gases occurring within the project boundary during the crediting period, as specified in appendix B for the relevant project category;

c) the calculation of the reductions of anthropogenic emissions by sources by the proposed small-scale CDM project activity, and for leakage effects, in accordance with provisions of appendix B for the relevant project category (4/CMP.1, Annex II, paragraph 32).

- Use the same designated operational entity (DOE) for initial validation, and for subsequent verification and certification. For large-scale projects two different DOEs are needed.

Despite these advantages, the complexity of the preparation and management of small-scale CDM projects means they too are time-consuming and expensive and need well-qualified personnel. Initial investment costs and on-going compliance costs always need to be carefully weighed against the potential financial benefits. It may take two years, or even more, for project approval and several more years before CER certificates are actually made available for trading. This means that the high set-up costs have to be paid in advance without any guarantee the application will be accepted.

SECTION 04. PROGRAMMES OF ACTIVITIES.

Click here to see a drawing showing how this might work on a sub-continental scale in developing countries. In the example, a sub-regional authority is the “owner” of the Programme of Activities which form an integrated part of its regional development policy. The programme is run by a consortium of leading NGOs represented throughout the sub-region. This consortium is responsible for the operation of the programme and for the sale of CER emission certificates. On behalf of the project owner it collects CER emission funds and distributes them to the cooperatives responsible for each individual project. Its activities are controlled and audited by a DOE (Designated Operating Entity) which acts on behalf of the CDM Executive Board (EB).

SECTION 05. SELECTION OF THE CDM meTHODLOGIES FOR THE APPLICATIONS LISTED IN SECTION 2.

01. CO2 savings through the reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves.

CO2 savings through the reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves. ( Application 01 : Sector 3. Energy demand ? Possible tool indication : Power Consumption, sublevel “Various household installations”, sub-type “Stoves”, small-scale applications, methodologies AMS-II-G.(Version 2) or AMS-I-C. Of these, AMS-II-G.(Version 2 ) is compatible with Sector 3. AMS-I-C is compatible with sector 1 – energy industries) AMS-I-C refers to electricity generation and may therefore be excluded. AMS-II-G refers to energy efficient measures in thermal applications of biomass. So the preferred methodology appears to be AMS-II-G.(Version 2) with its accompanying “clarification on the determination of savings in SMS II.G”. This application my be supplemented by application 08 below. Doubling up with application 08 should be carefully avoided. A CDM application in 2009 on biomass residues as the fuel source for individual stoves complete with proposed new base-line and monitoring methodologies relates to an actual project in China. The documents cited are the actual project texts. They could be used as a basis for drafting small-scale cook-stove projects for integrated development projects once the methodology has been approved by the Executive Board.

02. Demonstration projects for the recovery of forest lands and natural parks and reserves.

(Application 02. Sector 14 - Afforestation and reforestation.) The preferred methodology is AR-AMS-0004 , version 2, 11 June, 2009 - Approved simplified baseline and monitoring methodology for small-scale agroforestry - afforestation and reforestation project activities under the clean development mechanism. It would be used for forest recovery (afforestation or reforestation) with preferably with trees natural to each project area. Bamboo and/or other plantations may also be cultivated. This methodology is not included in the Tool for Selecting CDM Methodologies and Technologies.

The prescribed parameters are:

“(a) Project activities are not implemented on grasslands;

“(b) Project activities lead to establishment of forest (according to area, height and crown cover thresholds reported to the EB by the host Party) and allow for continuation or introduction of a cropping regime;

“(c) The pre-project crown cover of trees within the project boundary is less than 20% of the threshold for crown cover reported to the EB by the host Party;

“(d) If there is a decrease in the area cultivated with crops attributable to implementation of the project activity then the decrease is not more than 20% of the total area cultivated with crops at the start of the project.”

The applicability of Reducing Emissions from Deforestation and Degradation in Developing Countries (REDD) projects is still under discussion. Lists of projects REDD submitted can be found at the Climate, Community and Biodiversity Alliance (CBBA) website and at the Forest Carbon Portal website. Because of the uncertainty still surrounding REDD projects at this time, their use has not been explored further for use within the framework of integrated development projects.

03. Afforestation activities in settlements as defined Distributed planting of fruit and nut trees and similar.

Afforestation in settlements as defined in 2006 IPCC Guidelines for National Greenhouse Gas Inventories, and Good Practice Guidance for Land Use, Land-Use Change and Forestry (IPCC 2003), may include all developed land i.e., residential, transportation, commercial, and production (commercial, manufacturing)infrastructure of any size, unless it is already included under other land-use categories. The small-scale methodology AR-AMS-2 (version 2, 17 October 2008) falls under sector 14 “Afforestation and reforestation” but is not included in the Tool for Selecting CDM Methodologies and Technologies.

The prescribed parameters are:

“(a) Project activities are implemented on settlements. Specifically the following lands fall under the settlement category:

(i) Transportation infrastructure: Land strips along streets, country roads, highways, railways, waterways, overhead power cables, gas pipelines, provided such land is functionally or administratively associated with the transportation infrastructure and is not accounted for in another land-use category;

(ii) Human settlements: Residential and commercial lawns (rural and urban), gardens, golf courses, athletic fields, parks, provided such land is functionally or administratively associated with particular cities, villages or other settlement types and is not accounted for in another land-use category.

“(b) Project activities are implemented on lands where areas used for agricultural activities within the project boundary, and displaced due to the project activity, are less than 50 per cent of the total project area;

“(c) Project activities are implemented on lands where ≤ 10% of the total surface project area is disturbed as result of soil preparation for planting. “

04. Small-scale agro-forestry activities – such as distributed bamboo plantations, palms, soap-nuts and jatropha on grasslands and croplands.

Afforestation and/or reforestation projects. Small-scale agro-forestry activities including but not limited to distributed bamboo, palm, soap-nut, and jatropha plantations on grasslands and croplands. (Sector 14 - Afforestation and reforestation. Methodology AR-AMS-0001 “Simplified baseline and monitoring methodologies for small-scale A/R CDM project activities implemented on grasslands or croplands with limited displacement of pre-project activities.” Possible tool indication : (Sector 14 – Afforestation and Reforestation - sublevel forests - sub-type either afforestation or reforestation.

The applicable parameters are :

“(a) Project activities are implemented on grasslands or croplands;

“(b) Project activities are implemented on lands where the area of the cropland within the project boundary displaced due to the project activity is less than 50 per cent of the total project area;

“(c) Project activities are implemented on lands where the number of displaced grazing animals is less than 50 per cent of the average grazing capacity of the project area;

“(d) Project activities are implemented on lands where ≤ 10% of the total surface project area is disturbed as result of soil preparation for planting.”

05 Small-scale agro-forestry activities – distributed demonstration plantations for practical purposes for local use, including but not limited to Moringa plantations on marginal lands.

Afforestation and/or reforestation (AR) projects. Small-scale agro-forestry activities on marginal lands – distributed plantations for practical purposes for local use, including but not limited to bamboo, palms, soap-nuts and jatropha. (Sector 14 - Afforestation and reforestation. (AR)). The preferred methodology is AR-AMS-0004 , version 2, 11 June, 2009 – which is intended for forest recovery (afforestation or reforestation) including but not limited to traditional trees and/or bamboo This methodology is not included in the Tool for Selecting CDM Methodologies and Technologies.

The prescribed parameters are:

“(a) Project activities are not implemented on grasslands;

“(c) The pre-project crown cover of trees within the project boundary is less than 20% of the threshold for crown cover reported to the EB by the host Party;

06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species.

Afforestation and/or reforestation (AR) projects on wetlands. (Sector 14 - Afforestation and reforestation.) AR-AMS-003, Version 1, 14 December 2007. Simplified baseline and monitoring methodology for small scale CDM afforestation and reforestation project activities implemented on wetlands. Possible tool indication : (Sector 14 – Afforestation and Reforestation-sublevel forests, sub-type mangroves. Applications will apply to mangroves in mangrove swamps. Other traditional species will be used according to the bio-spheres involves.

07 Demonstration afforestation and/or reforestation (AR) projects on lands having low inherent potential to support living biomass.

Afforestation and/or reforestation (AR) projects on lands having low inherent potential to support living biomass. (Sector 14 - Afforestation and reforestation). AR-AMS-0005 (Version 2, 8 April 2009) falls under sector 14 “Afforestation and/or reforestation” but is not included in the Tool for Selecting CDM Methodologies and Technologies. This methodology can be used as foreseen in applications 4, 5, 6, and 7 where project activities are implemented on areas having low inherent potential to support living biomass without human intervention.

The project activities shall be implemented on areas listed in (i) to (iv) below. The project participants (PPs) shall provide evidence/data to support that the selected project sites meet the local/national criteria for these categories using information from verifiable sources and/or expert opinion as appropriate:

(i) Sand dunes;

(ii) Bare lands;

(iii) Contaminated or mine spoils lands;

(iv) Highly alkaline or saline soils.

08. Use of renewable biomass instead of non-renewable biomass with improved cook stoves.

Use of renewable biomass instead of non-renewable biomass with improved cook stoves. (Application 3. Sector 1. Energy industries? Possible tool indication : “Waste”, sublevel “Biomass”, sub-type “Biomass briquettes”, small-scale applications, methodologies AMS-I-C or AMS-III-B.) The more common application of the two methodologies is AMS-I-C. Both methodologies are compatible with Sector 1). AMS-I-C refers to thermal energy using renewable energy sources instead of fossil based ones. AMS-III-B refers to switching of fossil fuels. Neither of these appears applicable to integrated development projects. Methodology AMS-I-E (which falls under the sub-type “manure”) refers to a switch from non-renewable biomass to renewable biomass for thermal applications by the user. Integrated development projects provide for the local production of mini-briquettes made from renewable biomass wastes and residues supplemented as necessary by purpose-grown renewable crops, rather than to manure. So the most appropriate technology appears to be Sector 1. Energy industries ? Possible tool indication : “Renewable Energy”, sublevel “Biomass”, sub-type “Manure”, small-scale applications, methodology AMS-I-E, using renewable bio-mass instead of manure. This application supplements application 01 above. Assuming 65% of non-renewable biomass is saved under application 1 above, the remaining 35% of biomass incorporated in the locally produced mini-briquettes under application 08 must be renewable and it must be proved that the remaining 35% of biomass being substituted by the mini-briquettes is non-renewable.

09. Recycling of human waste to avoid the use of industrial fertilisers.

(Application 09. Sector 13. Waste handling and disposal ? Possible tool indication : “Waste”, sublevel “Liquid waste”, sub-type “Waste water”, small-scale applications, methodologies AMS-III-I, or AMS-III-H, or AMS-III-F, or AMS III-D, or AMS-I-F, or AMS-I-D, or AMS-I-C, or AMS-I-A. Of these the most common applications in descending order are AMS-III-H, AMS-I-D, and AMS-I-C. Methodologies AMS-I-A, AMS-I-C, AMS-I-D and AMS-I-F are all compatible with sector 1, energy industries). Methodology AMS-III-D is compatible with Sector 15 (Agriculture). Methodologies AMS-III-I, AMS-III-H, and AMS-III-F are all compatible with sector 13 - waste handling. Of these, AMS-III-I refers to substitution of anaerobic systems with aerobic ones. AMS-III-H refers to methane recovery in wastewater treatment. Application 09 does not refer to methane recovery (AMS-III-H), nor does it refer to the “substitution of an anaerobic system”. AMS-III-F on the other hand refers to controlled biological treatment of organic matter by aerobic composting of the biomass and proper soil application of the compost. The faecal component of human waste is composted aerobically then applied as proper soil as provided in AMS-III-F. The urine component of human waste is mixed with grey water to form liquid fertiliser comprising 1 part of urine to 10 parts of grey water and applied directly for food production purposes. Imported industrial fertiliser is thereby substituted by locally produced liquid fertiliser, which would otherwise have been wasted. The Tool for Selecting CDM Methodologies and Technologies therefore appears to indicate AMS-III-F as the best solution. However, AMS-III-Y seems to be more appropriate. Although the second version of methodology AMS-III-Y dates back to 30^th October 2009, it has not been included in the Tool for Selecting CDM Methodologies and Technologies.

Without referring to methodology AMS-III-F, the CDM Methodology Booklet actually provides a guideline in its description of AMS-III-Y as follows :

“1. This methodology comprises technologies and measures that avoid or reduce methane production from anaerobic wastewater treatment systems and anaerobic manure management systems, through removal of (volatile) solids from the wastewater or manure slurry stream. The separated solids shall be further treated, used or disposed in a manner resulting in lower methane emissions.

“2. The project activity does not recover and combust biogas i.e., the baseline wastewater or manure treatment plant as well as the project system are not equipped with methane recovery. Project activities which recover and combust biogas from manure management systems shall consider AMS-III.D or AMS-III.R. Project activities which recover and combust biogas from wastewater treatment systems shall consider AMS-III.H. Project activities that substitute anaerobic wastewater treatment systems with aerobic wastewater treatment system shall consider AMS-III.I.

“3. The technology for solids separation shall be one of the below or a combination thereof so as to achieve a minimum dry matter content of separated solids larger than 20%:

(a) A pre-separation phase of chemical treatment by mixing flocculants with the wastewater, adopted to improve the efficiency of the subsequent mechanical solid liquid separation process;

(b) Mechanical solid/liquid separation technologies (e.g., stationary, vibrating or rotating screens, centrifuges, hydrocyclones, press systems/screws), operated inline with the inflowing freshly generated wastewater or slurry manure stream so as to avoid stagnation;

(c) Thermal treatment technologies that evaporate water content from the waste stream, either releasing vapour to the atmosphere or condensing it into a liquid fraction (condensate) containing negligible volatile solids or COD load, resulting in a solid fraction. Examples include evaporation and spray drying technologies.”

The technical solution applied in integrated development projects is b) mechanical solid/liquid separation through the use of urine diversion in toilets.

10. Methane recovery from animal waste for cooking and lighting purposes especially in pastoralist areas.

Small-scale methane recovery from animal waste for lighting purposes and electricity generation in pastoralist areas. The resultant energy from this application can also be used for cooking purposes under : Sector 3. Energy demand ? Possible tool indication : Power Consumption, sublevel “Various household installations”, sub-type “Stoves”, small-scale applications, methodology AMS-II-G as provided in application 01 above. Doubling-up will cause loss of income to project beneficiaries.

Common sense therefore suggests that energy from the application be used for lighting purposes and/or for small scale electricity generation. If it is used for lighting purposes, it can be brought under (Sector 1 - Energy industries ? Possible tool indication : Power Consumption, sublevel “Various household installations”, sub-type “Lighting”, small-scale applications, methodologies AMS-II-J or AMS-II-C or AMS-I-A or the new methodology AMS-III-AR). AMS-II-C refers to adoption of energy-efficient appliances. AMS-II-J applies specifically to the adoption of compact fluorescent lamps. AMS-I-A refers to small-scale stand-alone or mini-grid electricity generation by the user with installed capacity up to 15MW with emissions reductions per renewable energy based lighting system is less than 5 tonnes of CO2 equivalent a year and where it can be shown that fossil fuel would have been used in the absence of the project activity.

A better option is : Possible tool indication : Rewnewable Energy, sublevel “Biomass”, sub-type “Domestic Manure”, small-scale application AMS-III-R, methane recovery in agricultural activities at household/small farm level. This must be used in combination with AMS-I-C Thermal energy production with or without electricity.

The technology/measure for methodology AMS-III-R comprises :

1. This project category comprises recovery and destruction of methane from manure and wastes from agricultural activities that would be decaying anaerobically emitting methane to the atmosphere in the absence of the project activity. Methane emissions are prevented by:

(a) Installing methane recovery and combustion system to an existing source of methane emissions, or

(b) Changing the management practice of a biogenic waste or raw material in order to achieve the controlled anaerobic digestion equipped with methane recovery and combustion system.

2. The category is limited to measures at individual households or small farms (e.g. installation of a domestic biogas digester). Methane recovery systems that achieve an annual emission reduction of less than or equal to 5 tonnes of CO2e per system are included in this category. Systems with annual emission reduction higher than 5 tonnes of CO2e are eligible under AMS III.D.

3. This project category is only applicable in combination with AMS I.C.

4. The project activity shall satisfy the following conditions:

(a) The sludge must be handled aerobically. In case of soil application of the final sludge the proper conditions and procedures that ensure that there are no methane emissions must be ensured.

(b) Measures shall be used (e.g. combusted or burnt in a biogas burner for cooking needs) to ensure that all the methane collected by the recovery system is destroyed.

5. Aggregated annual emission reductions of all systems included shall be less than or equal to 60 kt CO2 equivalent.

Methodology AMS-I-C in turn “comprises renewable energy technologies that supply users with thermal energy that displaces fossil fuel use. These units include technologies such as solar thermal water heaters and dryers, solar cookers, energy derived from renewable biomass and other technologies that provide thermal energy that displaces fossil fuel.”

The new methodology AMS-III-AR (introduced 26^th November, 2010) applies to the adoption of LED lamps. It refers to the lighting technology itself, and would be included under application 11 below. AMS-III-R can be used with AMS-I-C for the rest of the methane produced in application 11 to substitute other existing electricity/power generation activities. The challenge is to find alternative existing uses of non-renewable energy within each integrated development area. Beneficiaries may also choose to use the gas for new energy uses, but this would not qualify for CDM funding. They may prefer to use their methane gas to replace the mini-briquettes for stoves under application 01 above. This too would, however, lead to a drainage of possible CDM resources.

Calculations under AMS-III-R with AMS-I-C refer to displaced fossil fuel equivalents. The CDM system does not provide credits for methane savings, although methane has 21 times the value of CO2.

11. Replacement of kerosene lamps, incandescent light bulbs, and of the use of throw-away batteries by renewable energy sources (wind, solar and/or renewable bio-mass including but not limited to plant oil, gasification of biomass).

Replacement of kerosene lamps and of the use of throw-away batteries by renewable energy sources (wind, solar and/or renewable bio-mass including but not limited to plant oil, gasification of biomass). (Sector 3 - Energy demand ? Possible tool indication : Power Consumption, sublevel “Various household installations”, sub-type “Lighting”, small-scale applications, methodologies AMS-II-J or AMS-II-C or AMS-I-A. AMS-I-A is compatible with sector 1 (energy industries). AMS-I-A refers to small-scale stand-alone or mini-grid electricity generation by the user with installed capacity up to 15MW with emissions reductions per renewable energy based lighting system is less than 5 tonnes of CO2 equivalent a year and where it can be shown that fossil fuel would have been used in the absence of the project activity. Methodologies AMS-II-C and AMS-II-J both conform to Sector 3. AMS-II-C refers to adoption of energy-efficient appliances. AMS-II-J applies specifically to the adoption of compact fluorescent lamps. However it is a new methodology, AMS-III-AR (introduced 26^th November, 2010, which applies to the adoption of LED lamps, which appears to offer the best solution. It is not included in the Tool for Selecting CDM Methodologies and Technologies. Methodologies AMS-II-C, AMS-II-J, and AMS-III-AR are all coupled to energy savings inherent in the introduction of lighting technology, not to the source of energy. The highest energy savings with the greatest flexibility of use are given by the adoption of LED lights, so AMS-III-R appears to be the preferred methodology. The substantially higher initial investment cost of the lamps is directly recovered by the reduction in the size of the alternative energy power source installed.

12. Replacement of non-renewable electrical and diesel-driven sources for mechanical equipment such as pumps and mills and, where applicable, pubic lighting systems.

Replacement of non-renewable electrical and diesel-driven sources for mechanical equipment such as pumps and mills and, where applicable, pubic lighting systems. (Sector 1, Energy industries ? Possible tool indication : “Renewable Energy”, sublevel “Solar”, subtype “Solar PV”, small-scale applications, AMS-I-D or AMS-I-A; or sublevel “Wind”, subtype “Wind”, small-scale applications, AMS-I-F, or AMS-I-D or AMS-I-A. All three methodologies are compatible with Sector 1). By far the most common methodology of the three, AMS-I-D, applies only to alternative energy supply to a regional or national grid and is therefore not usually applicable in integrated development projects. AMS-I-F refers to substitution of electricity from a national or regional grid, from a fossil-fuelled captive power plant or from a carbon intensive mini-grid. AMS-I-A refers to small-scale stand-alone or mini-grid electricity generation by the user.

Methodology AMS-I-A is described in the CDM Methodology Booklet as follows :

“This category comprises renewable electricity generation units that supply individual households/users or groups of households/users included in the project boundary. The applicability is limited to individual households and users that do not have a grid connection except when;

“(a) A group of households or users are supplied electricity through a standalone minigrid powered by renewable energy generation unit(s) where the capacity of the generating units does not exceed 15 MW (i.e., the sum of installed capacities of all renewable energy generators connected to the mini-grid is less than 15 MW) e.g., a community based stand-alone off-the-grid renewable electricity systems; or

“(b) The emissions reduction per renewable energy based lighting system is less than 5 tonnes of CO2e a year and where it can be shown that fossil fuel would have been used in the absence of the project activity by;

(i) A representative sample survey (90% confidence interval, ±10% error margin) of target households; or

(ii) Official statistics from the host country government agencies.

“The renewable energy generation units include technologies such as solar, hydro, wind, biomass gasification and other technologies that produce electricity all of which is used on-site/locally by the user, e.g., solar home systems, wind battery chargers . The renewable generating units may be new installations (Greenfield) or replace existing onsite fossil-fuel-fired generation. To qualify as a small-scale project, the total output of the unit(s) shall not exceed the limit of 15 MW.”

Since AMS-I-A has already been used for applications relating to both wind and solar energy and to biomass applications for electricity generation including but not limited to palm oil and manures, this appears to be the most flexible methodology for application 12.

13. Local recycling and recovery of materials from solid wastes, including but not limited to plastics.

Small scale local recycling and recovery of materials from solid wastes, including but not limited to plastics, is a feature of integrated development projects. Recovery and recycling of plastics materials is covered under methodology AMS-III-AJ. This methodology is not included in the Tool for Selecting CDM Methodologies and Technologies. It comprises activities for recovery and recycling of high density polyethylene (HDPE) and low density polyethylene(LDPE) materials in municipal solid wastes to process them into intermediate or finished products e.g., plastic resin to displace production of virgin HDPE and LDPE materials in dedicated facilities thereby resulting energy savings and emission reduction. Mechanical Recycling: Physical/mechanical processes are defined as those by which recyclable materials e.g., HDPE and LDPE plastics are obtained from municipal solid waste by way of separation, cleaning and compaction/packing for further processing in order to produce intermediate/finished products to substitute virgin raw materials in an industrial production chain. The process may be accomplished manually and/or using mechanical equipment including but not limited to one or more of the following measures: washing of the separated LDPE and HDPE materials with hot water, drying, compaction, shredding and pelletizing. Recycling facility is (are) facility (ies) where the recyclables in the municipal solid waste collected are sorted, classified and prepared into marketable commodities for processing/manufacturing in single or multiple locations. The term Processing/Manufacturing facility includes industrial processes to transform recyclable materials obtained from recycling facility into intermediate or finished products e.g., plastic resin.

Methodology AMS-III-X relates to the recovery of HFCs (hydrofluorocarbons) from the recycling of refrigerators. Until now, AMS-III-AJ is the only other methodology covering energy savings through the recycling of non-organic solid waste products.

SECTION 06. INFORMATION SPECIFIC TO AFFORESTATION AND REFORESTATION (AR) METHODOLOGIES SPECIFICALLY APPLICABLE TO INTEGRATED DEVELOPMENT PROJECTS.

01. A general reference and warning on the risks of multi-project implementation.

A good up-to-date reference to Afforestation and Reforestation (AR) projects is Building Forest Carbon Projects : A Step-by-Step Guide, by J.Olander and J.Ebeling, published by Forest-Trends and the Katoomba Group, December 2010. This work includes specific aspect by aspect information boxes with references to the leading resources on the aspect in question.

Key factors which should always be borne in mind are that project areas must be under the control of the project proponent(s) and that a given dimension of at least 10.000 to 20.000 tonnes of CO2 per year is needed to offset the high costs of project preparation, validation, and monitoring. Pre-implementation costs can be € 100.000-250.000 and more; preparation of a methodology for € 20.000-75.000 and more; each periodic verification event between € 15.000-40.000 and more. Most of these funds are absorbed by nominated Designated Operational Entites (DOEs) (auditors) and large international (especially financial) institutions which in practice hold a virtual licence to complicate or facilitate procedures. Project proponents are placed at their mercy. If the issuing organ (in the case of Clean Development Mechanism (CDM) projects, the Executive Board) makes an arbitrary decision either with regard to registration or to issuance of certificates, project proponents have no remedy. In December 2010 there was still no CDM appellate body to handle appeals against the decisions of the CDM Executive Board. A preliminary discussion on this issue took place during the UNFCCC meeting in Cancun (Mexico), December 2010.

Any meaningful afforestation or reforestation (AR) project is a vast, long-term undertaking. It requires on-going local (sustainable) water supply and the provision of locally produced (sustainable) fertilisers. The amount of work needed to implement projects is mind-boggling.

Integrated development projects have multiple inherent possibilities for long-term implementation of afforestation and reforestation (AR) projects. Water and fertiliser supply, and even labour forces, may be too restricted to enable cotemporaneous implementation of all of the available possibilities. In those cases, integrated development project coordinators will need to make painful choices. Where necessary CDM financing of projects may have to be sacrificed to the overriding energy-neutral , fully sustainable, ecological principles guiding integrated development projects.

The proposed afforestation and reforestation (AR) projects are small-scale. Most of them may therefore be seen as demonstration projects subject to repetition in each integrated development project area as manpower and water become available for the purpose.

02. Reducing Emissions from Deforestation and Degradation in Developing Countries (REDD) projects.

REDD projects tend to be more socially based than CDM projects. They are supposed to avoid deforestation and/or degradation of existing forests, benefit local communities and promote bio-diversity.

The applicability of REDD projects is still under discussion. A list of REDD projects submitted can be found at the Climate, Community and Biodiversity Alliance (CBBA) website. Of the +/- 60 projects listed there, about 30 have been approved. Complete documentations for all projects can be accessed at the site. Some 14 Designated Operational Entities (DOEs) or auditors have been approved to date. Submitted projects include 18 projects from Central and South America, Asia (11), East Africa (10), United States (8), Australia and New Guinea (4), North Africa (Ethiopia) (1). Other projects were either rejected or withdrawn. Projects in the United States include the restoration of “forest legacies”, afforestation in wild-life refuges, and avoided grassland conversion of prairies.

Full information on REDD can be found at the REDD Web Platform operated by the United Nations Framework Convention on Climate Change (UNFCCC). Because of the uncertainty still surrounding REDD projects at this time, they have not been used here for applications for integrated development projects.

03. Some definitions.

Each host country must have adopted its own threshhold parameters for forest coverage. If it has not done so, and some countries have not, it is not possible to apply for CDM funding for an AR project there.

Some important definitions (source : Decision -/CMP.1 Land use, land-use change and forestry ) for afforestation and reforestation (AR) projects are:

(a) “Forest” is a minimum area of land of 0.05–1.0 hectare with tree crown cover (or equivalent stocking level) of more than 10–30 per cent with trees with the potential to reach a minimum height of 2–5 metres at maturity in situ. A forest may consist either of closed forest formations where trees of various storeys and undergrowth cover a high proportion of the ground or open forest. Young natural stands and all plantations which have yet to reach a crown density of 10–30 per cent or tree height of 2–5 metres are included under forest, as are areas normally forming part of the forest area which are temporarily unstocked as a result of human intervention such as harvesting or natural causes but which are expected to revert to forest. Before a country can host a CDM AR project, its Designated National Authority (DNA) must have approved its own definition of forest within the parameters indicated in the foregoing definition. Countries may also change their definition if required. It is important that the country definitions be extended to cover woody grasses, such as palm trees and bamboo, which can play an important role as carbon sinks. [Yiping L. Yanxia L. et al, Bamboo and Climate Change Mitigation, International Network for Bamboo and Rattan (INBAR), Beijing, 2010 ]. “ ….until a DNA provides clarification that the definition of forest as reported by them to the Board includes palm (trees) and/or bamboos it shall be deemed that the definition does not include palms (trees) and bamboos” [Report of the 27^th meeting of the afforestation and reforestation working group, UNFCCC Headquarters, Bonn, Germany 17.19 February 2010.]. Carbon sequestration in agricultural crops and soils is not eligible for sale under the CDM in the first commitment period (CP) 2008-2012. This is a handicap for bamboo, two-thirds of the carbon sequestration of which is underground.

(b) “Afforestation” is the direct human-induced conversion of land that has not been forested for a period of at least 50 years to forested land through planting, seeding and/or the human-induced promotion of natural seed sources

(c) “Reforestation” is the direct human-induced conversion of non-forested land to forested land through planting, seeding and/or the human-induced promotion of natural seed sources, on land that was forested but that has been converted to non-forested land. For the first commitment period, reforestation activities will be limited to reforestation occurring on those lands that did not contain forest on 31 December 1989

For the CDM mechanism, land degradation is defined as a long-term decline in ecosystem function and productivity and measured in terms of net primary productivity. All forms of land degradation will ultimately lead to a reduction of soil fertility and productivity. The general effect is reduced plant growth, which in turn causes loss of protective soil cover and increased vulnerability of soil and vegetation to further degradation (e.g. erosion).

04. The importance of afforestation and reforestation (AR) in integrated development.

Afforestion and reforestation (AR) activities are potentially very interesting for integrated development projects. Many developing countries have vast areas of marginal lands. The level of on-going degradation of existing woodlands is appalling nearly everywhere. The main cause of this is the ruthless exploitation (theft) of the existing timber resources of developing countries for the benefit of large private commercial industrial interests. (See Block 1 of , Section 1 of the course : 08. In depth : Financial leakage : theft of resources. ) A second cause is degradation through non-sustainable use of woodlands for cooking fuel and charcoal production.

Greenhouse gas emissions calculations for afforestation and reforestation (AR) projects are particularly complex. Some of these projects have been highly criticised in international circles. (Silverstein D., A method to finance a global climate fund with a harmonized carbon tax”, Munich University, MPRA paper 27121, 03 December, 2010. )

Biomass default tables are given in annex 3A.1 of the Good Practice Guidance for Land Use, Land-use Change and Forestry, published by the Institute for Global Environmental Strategies (IGES) for the Intergovernmental Panel on Climate Change (IPCC), Kamiyamaguchi, 2003.

05. Risks.

Long-term and permanent certified emission reductions (ICER) and (CER) for afforestation and reforestation (AR) projects are more vulnerable than those for other CDM sectors. Natural disasters such as fire or floods may wipe out many years of investment in a few hours. Where this happens, CDM funds received during the build-up of the carbon sinks have to be repaid, because the carbon sinks have been lost. This risk is in principle insurable, but the cost of insurance is very high and represents financial leakage from the integrated development area where the AR project is situated. Regional level project owners ( for instance UEMOA in West Africa) may be in a position to supply guarantees of coverage against these risks. This problem is not an issue with temporary or short-term credits (tCER) which, however, are valid only for credit period during which they are issued. That is why short-term credits command much lower prices.

Flowering of bamboo plants should be avoided. Like other grasses, flowering may lead to the end of the life cycle of some bamboo species and may lead to death of the plant and loss of the sequestered carbon. However the average flowering interval of bamboo is in the region of 30 years.

Grazing in plantations is another risk.

Lack of water supply and labour. There is no point starting an afforestation or reforestation (AR) project without adequate water and labour. Proposed projects listed may compete with each other in both areas. Where work- and water-supply loads are excessive, choices need to be made. Traditional farming work In developing countries is often carried out during rainy seasons. Trees in afforestation and reforestation projects (AR) need less attention during that period. Work load is instead intensified during the dry seasons.

06. Contract forms for forest carbon purchases.

Refer to Hawkins S. et al, Contracting for Forest Carbon : Elements of a Model Forest Carbon Purchase Agreemeent, published by Forest-Trends and the Katoomba Group, December 2010.

SECTION 07. NOTES SPECIFIC TO THE ROLE OF BAMBOO IN AFFORESTATION AND REFORESTATION PROJECTS.

Introduction.

The use of bamboo for afforestation and reforestation projects within the framework of integrated development projects is important in the exploitation of CDM financing under the Kyoto protocol.

For information on the potential of bamboo for CDM AR projects see : Lobovikov, M., Yiping, L., et al, The poor man’s carbon sink. Bamboo on climate change and poverty alleviation, Food and Agriculture Organisation (FAO), Forestry Department, Non-Wood Forest Products, working document no. 8, Rome, 2009. This work contains a complete bibliography with some 160 references. Another good resource is Yiping L. Yanxia L. et al, Bamboo and Climate Change Mitigation, International Network for Bamboo and Rattan (INBAR), Beijing, 2010.

The annual productivity of bamboo varies from 5 to 12 tonnes of biomass per hectare with some 2000-10000 shoots or culms. This corresponds to 9 to 22 tonnes of CO2. Small scale projects cover up to 15000 tonnes of CO2 per year, involving a minimum of 1700 hectares for full density planting to 9000 hectares for minimum density planting. At about Euro 14 per tonne CO2 (14^th November 2009), this means income from a small-scale bamboo AR project can reach Euro 214.200 to Euro 523.000 per year over a CDM payment period of seven years. Seven years at an average of Euro 214.200 makes a total of about Euro 2.000.000, which is more than 50% of the formal money cost of an integrated development project. Seven years at Euro 523.000 per year makes a total of about Euro 3.661.000. This is in principle sufficient to finance a typical integrated development project.

Income for each project area is dedicated to the repayment of the initial costs of the integrated development project in question. After project repayment, ongoing income is distributed equally amongst the local populations, who are all automatically members of the Local Cooperative for the on-going management and maintenance of the project structures. Since the bamboo projects generate CDM income over the short term, these CDM funds will be amongst to be dedicated to re-imbursement of the formal money costs of each integrated development project.

Assuming the execution of up to 2500 integrated development projects for West Africa (excluding Nigeria and Ghana) the scheme would produce at least Euro 5.000.000.000 and up to Euro 9.152.500.000. General application of the concepts in Nigeria would deliver roughly the same benefits. Poor countries do not pay CDM registration and issuance costs. The amounts cited above are, however, subject to the deduction of DOE (designated operational entity ) validation and verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

Bamboo cultivation : water requirements.

A disadvantage of bamboo cultivation is that it needs a good supply of water, which is not always available in developing countries, especially in arid and semi-arid areas.

For ecological reasons, integrated development projects do not provide for industrial-level or extensive irrigation schemes. This means that available rainwater in water-scarce areas might need to be supplemented by labour-intensive hand-fed drip irrigation, possibly through the recycling of urine and grey water from households.

For more information on water requirements of bamboo crops and their yearly distribution see Aspects of Bamboo Agronomy, Kleinhenz B. and Midmore J., Academic Press, North Rockhampton, 2001.

Minimum annual rainfall requirements for bamboo are indicated at 1000 mm., but higher rainfall levels are preferable. The distribution of water supply according to specific growing phases is important. Bamboo plants have shallow, bushy roots which are good for holding and stabilising moisture in the soil. At the same time, where they dry out, bamboo production will be low.

Typical planting densities are 1000-2500 plants per hectare (monopodial species) and 150-300 clumps per hectare (pachymorph species). Bamboo plants respond well to the application of all types of organic manures. Charcoal from bamboo itself fixes carbon in the soil and retains water and soil nutrients.

For details on the organisation of bamboo plantations under the CDM system, refer to 04. Small-scale agro-forestry activities – such as distributed bamboo plantations, palms, soap-nuts and jatropha on grasslands and croplands in SECTION 08. CDM FUNDING INDICATIONS FOR THE SELECTED METHODOLOGIES below.

The main features of bamboo.

“Bamboos provide raw material for about 1500 known commercial products (Scurlock, Dayton et al. 2000). These range from handicrafts, such as woven baskets, to edible bamboo shoots produced by about 200 species, to high value industrial goods, such as pulp, paper and textiles, bio-fuels, charcoal, housing, panels, flooring and furniture (Lobovikov, Paudel et al. 2007) ” [Lobovikov, M., Yiping, L., et al, The poor man’s carbon sink. Bamboo on climate change and poverty alleviation, cited above, p.13.] Where they are used to produce durable goods, large percentages of carbon savings are retained over a long term in the products. These activities produce wide-spread employment possibilities. Note, however, that harvested wood products are still not accepted for carbon accounting under the Kyoto Protocol, though this issue is under discussion.

Flowering of bamboo plants should be avoided. Like other grasses, flowering may be the end of the life cycle of some bamboo species and may lead to death of the plant and loss of the sequestered carbon. However the average flowering interval of bamboo is in the region of 30 years.

Bamboo attributes for climate change ” [ from Lobovikov, M., Yiping, L., et al, The poor man’s carbon sink. Bamboo on climate change and poverty alleviation, cited above, Table 3, p.28]

Attribute	Advantage	Disadvantage

Short rotation.	Early returns; flexibility in land use and high nutrient exports; high frequency of adaptation to climate change; consequence of losing stand; smaller needed for sustained-yield operation; fits well into crediting periods and tCER concept; fits capital intensity; short exposure to risks.	Lowers potential site-degrading interventions, e.g. area compaction; no l-CERs.
Continuous yields.	Continuous economic returns, employment, labour demand.
Uneven-aged management .	Multitude of products; no clear-cuts; less soil nutrient losses and site deterioration; weeding, herbicide use, establishment-stage risks.	Difficult access to interior of sympodial clumps; lower more difficult monitoring; thinning rules.
Persisting rhizomes after culm harvest.	Low decline in biomass and carbon store: easy regeneration.	May impede intermittent or subsequent agricultural use.
Plethora of products.	Very high conversion efficiency, low conversion losses; flexible reaction to market fluctuations; continuous economic benefits along supply chain from cottage industry to large-scale industrial production.
High appeal to consumers.	High economic returns for bamboo products from T-shirts to medicines to floor panels.
Wood substitute.	Reduces demand for timber.
Establishment vegetatively .	Cheap, easy, independent of seed years.
Labour intensive.	Creates employment or self- employments; sensitive to rising wages at industrial scale capital extensive; employment for women, youths.
Light when air-dry.	Manual skidding and transport, animal use, no soil compaction.
Possible integration into agro-forestry schemes.	Reduces slash and burn agriculture and/or deforestation; opportunities for climate change adaptation; synergies mitigation/adaptation.	Allelopathy possible.
May species, worldwide distribution.	Adaptation to specific sites and climate change possible; use as introduced species; overlap with CDM countries.
Rapid below-ground growth.	Site reclamation and organic matter and carbon accumulation.	Possible invasiveness; slope failures on dense root mass.
C3 – plant.	Increases production at higher CO2 concentrations .	More sensitive to drought than C4 plants.
Anatomy and physiology.	Low ash-, silica- and water content as bio-fuel.	Challenging carbon monitoring; emissions of methane and NMVOC; cyanide content.

SECTION 08. CDM FUNDING INDICATIONS FOR THE SELECTED METHODOLOGIES.

The following indications are purely indicative and subject to change on detailed calculation under each of the methodologies applied.

01. CO2 savings through the reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves.

Introduction.

AMS-II-G.(Version 2) with its accompanying “clarification on the determination of savings in SMS II.G. Energy efficiency measures in thermal application of non-renewable biomass. Introduction of high-efficient thermal energy generation units utilizing non-renewable biomass or retrofitting of existing units (e.g. complete replacement of existing biomass fired cook stoves or ovens or dryers with more-efficient appliances) reduces use of non-renewable biomass for combustion. The idea is that renewable biomass savings cannot reduce greenhouse gas emissions because the re-growing biomass reabsorbs them. This is the category under which improved cooking stoves in integrated development projects best fall. This methodology first introduced in February 2008 was considered very complex to use. Version 2, introduced in December 2009, is supposed to be easier to use. Its use would usually be coupled with a switch from non-renewable biomass to renewable biomass. (See also AMS-I-E). The methodology has been adopted in just four (unregistered) small-scale projects without the issue of CER certificates.

For each integrated development project with 50.000 people and 10.000 families, there is a market for 20.000 to 30.000 improved cooking stoves. According to this methodology, the fraction of the total annual biomass savings originating from non-renewable resources is determined and multiplied by the net calorific value of the biomass actually used and the emission factor of the fossil fuel that would most likely be used in the project area in the absence of the project activity.

Supposing a saving of 6.5 kg of non-renewable wood or equivalent per family per day, 65 tonnes of wood per day are saved in each project area, or 23725 tonnes of wood a year, being two-thirds of the annual total of 36.500 tonnes non renewable total wood use. Converted into tonnes of CO2, that is 18705 tonnes of CO2 a year.

The website of the Intergovernmental Panel for Climate Change (IPCC)provides a default value for wood of 0,015 TJ [a terajoule = joule + 12 zeros] per tonne of dry mass or 66,67 tonnes of dry mass per terajoule.

The default emission factor for kerosene of 71,5 tonnes of CO2 per TJ. Calculations for integrated development projects have to be expressed in kerosene equivalent as kerosene is the fossil fuel that would most likely be used in the absence of wood in the project areas.

Total non-renewable wood currently used in each project area is 36500 tonnes a year.

Assuming savings of 65 % through the use of high efficiency stoves, the amount of wood saved would be 23725 tonnes of wood.

Using a factor of 0.5 for the conversion of wood into dry mass 23725 tonnes of wood = 11.862 tonnes of dry mass

11.862 tonnes of dry mass divided by 66,67 tonnes per TJ = 177,92, say, 178 TJ.

The default factor for kerosene is 71,5 tonnes of CO2 per terajoule.

178 TJ of dry mass x kerosene conversion factor of 71,5 tonnes of CO2 per terajoule = 12727 tonnes of CO2.

12727 tonnes of CO2 @ Euro 14 (as at 14 November 2009) = Euro 178.178 per year.

Conclusion : Euro 178.178 a year for up to 21 years would produce Euro 3.741.738 .

The amount of CO2 (12.727 tonnes) is within the limit of 15.000 tonnes of CO2 per year for small-scale projects.

Income for each project area is dedicated to the repayment of the initial costs of the integrated development project in question. After project repayment, ongoing income is distributed equally amongst the local populations, who are all automatically members of the Local Cooperative for the on-going management and maintenance of the project structures. Poor countries do not pay registration and issuance costs. The amount is, however, subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

Assuming the execution of up to 2500 integrated development projects for West Africa (excluding Nigeria and Ghana) the scheme would produce about Euro 4.455.000.000. General application of the concepts in Nigeria would deliver roughly the same benefits. The amounts are subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

CDM projects cover CO2 only. Voluntary credits (so-called VERs) can be obtained for CH4 (methane) and N2O (Nitrous oxide) through the privately operated Gold Standard label, which is based in Geneva. The Gold Standard accepts parallel applications. Full lists of Gold Standard projects can be accessed Gold Standard Inlog Page.

For more information refer to AMS II.G Small-scale “Efficiency measures in thermal applications of non-renewable biomass” with its accompanying “clarification on the determination of savings in SMS II.G”.

Carbon Markets for Improved Cooking Stoves : A GTZ guide for project operators, Blunck and others , 3^rd revised edition, GTZ-Hera, Eschborn, February 2010, offers a general introduction to the subject.

CDM projects : A CDM application in 2009 on biomass residues as the fuel source for individual stoves complete with proposed new base-line and monitoring methodologies relates to an actual project in China. The documents are the actual project texts. They can be used as a basis for drafting small-scale cook-stove projects.

Gold standard projects : Methodology for Improved Cook-stoves and Kitchen Regimes V.01 by Climate Care for the Gold Standard Foundation, Geneva, 2008 offers more specific guide to cook-stove projects.

Schematic drawing of a business plan for a CDM cook-stove project under integrated development projects.

Cook-stoves projects in integrated development projects are designed to fall under the type iii) small-scale CDM projects provided for under par. 6 c) of decision 17/CP.7 covering “other project activities that both reduce anthropogenic emissions by sources and directly emit less than 60 kilotonnes of carbon dioxide equivalent annually”. (17/CP.7, paragraph 6(c) as amended by 1/CMP.2, paragraph 28).

A proposed business plan for a CDM cook-stove project under integrated development projects.

Determining existing cooker user groups.

01. Accurate identification of the non-renewable part of bio-mass (or of other fuels) traditionally used for cooking purposes is at the heart of CDM cook-stove projects. The weight in tons of non-renewable biomass saved by the introduction of high-efficiency stoves multiplied by its carbon-dioxide conversion factor to produce a weight in tons of carbon-dioxide emissions is what determines the number of CER (Carbon Emission Reduction) units awarded.

02. A “photograph” is made of current energy use for cooking. “Woody biomass”; “Renewable energy fuels” (solar, fuels without GHG); “Alternative fuels” ( fossil fuels, dung, residues not falling under the term “renewable energy”. This is done by dividing users into “clusters” according to their traditional features, e.g. biogas, solar cookers, charcoal, fire-wood, kerosene, institutional kitchens, commercial kitchens etc.

03. How much of each cluster of materials is traditionally used in the project area ? How much does it cost? This is done through a “kitchen survey” with minimum surveys of 10% of kitchens (families) with a minimum sample of 100 where there are more than 1000 users in a cluster. In principle, the more samples the better.

04. It must be shown which biomass used is not offset by re-growth in the collection area. What is the fuel collection (e.g. forest, grassland) area? How much of it is regenerated in forests and on grasslands on an annual basis ?

05. Calculate the amount of non-renewable extracted woody biomass, non-woody biomass used, and biomass residues used for each source area (e.g. forest, grassland).

06. Take into account eventual lower than required use of cooking utensils and fuels. (E.g. Where there is under-nourishment ; where is food not available; where people cannot afford to pay for fuel).

07. Can use of renewable energy in the project area lead to increase in the use of non-renewable energy elsewhere? (This is called “leakage” and has to be taken into account).

Calculate base-line emissions.

01. Decide units of emission : e.g. stove-year, kitchen-year, meal-year, product-year.

02. Groups or clusters are formed for each of the energy sources traditionally used in each project area. Mostly there are four categories : wood collected by hand, wood bought commercially, charcoal, and kerosene bought commercially. All cluster groups would then use the same new stove technology distributed only within the project area and the same mini-briquettes distributed only within the project area.

03. The control period for each sample in each cluster should be for at least one week before the installation of the new stoves with use of the mini-briquettes, and for one week thereafter.

04. Calculate the base line emissions. These are (the non-renewable fraction of biomass harvested times the mass of biomass consumed, multiplied by its CO2 emission conversion factor) plus (the mass of alternative fuel consumed multiplied by its CO2 emission conversion factor). The sum is expressed in tons of CO2.

05. Decide the percentage of non-renewable bio-mass used in the project area.

06. Compare emissions under the new stove regime with those under the old one(s). This is the difference in the efficiency of the old stoves compared with the new ones. This is most commonly done by a water boiling test.

07. Decide which type of non-renewable fossil fuel would be used to substitute non-renewable bio-mass if the improved cook-stoves were not introduced.

08. Choose the preferred application period. This can be a single period of ten years, or a period of seven years renewable twice (for a total of 21 years) subject to full review and analysis by a Design Operational Entity (DOE) after each of the first two seven-year periods.

Monitoring.

01. The monitoring of CDM projects is an expensive and complex exercise. It involves full base-line emission reviews, usually on a two-year basis, and on-going comparison with the original base line statistics. This is particularly onerous with small CDM projects where on-going compliance costs have traditionally been out of proportion with the relatively low value of the carbon credits granted.

02. In some developing countries with potential carbon emission savings projects, the on-going ecological degradation and the total lack of sustainability in project areas are so obvious that a common sense man in the street would wonder why simple default monitoring systems could not be applied, doing away with costly and complex compliance requirements altogether. This common sense logic might not, however, be in the interests of the multinational CDM “servicing” companies involved in the administration of Kyoto-based projects.

03. Since most production items, including but not limited to improved cooking stoves, tanks, toilets are made locally under the local money system set up in each project area, monitoring is easy because it can be carried under the local money system . For example, the monitoring of a stoves project can be carried out by coupling the number of stoves actually sold to the number of locally-made mini-briquettes which serve as fuel for the stoves distributed over any given period.

02. Demonstration project for the recovery of forest lands and natural parks and reserves using traditional species.

Refer to section 06 above for a general description of the role of afforestation and reforestation in integrated development projects.

Refer to section 07 above for a general description on the role of bamboo in afforestation and reforestation activities.

Each integrated project area has about 50.000 inhabitants and is divided into about 250 local development units and about 40 intermediate development units.

Many integrated development project areas include forest and/or natural reserves, most of which are in a deplorable condition. Recovery of degraded forests and natural reserves is not only essential for the protection of ecosystems and bio-diversity, it also offers a way contribute to the financing of integrated-development projects in the areas where the degraded forests and reserves are situated. This is possible where land tenure of forests and natural reserves is known and stable and the rights-holders are members of the permanent cooperative for the on-going management and maintenance of project structures. Work using the preferred methodology is AR-AMS-0004 , version 2, 11 June, 2009, is carried out by the local populations under the local money system set up during an early phase of each integrated development project.

Forests and reserves will often be concentrated is specific parts of integrated development project areas. The populations themselves through the social structures they set up in each area will decide on how the AR-AMS-0004 methodology for the project area is organised. Where there is just one subject forest area or natural reserve, they will usually decide to apply the methodology at the central project level. Where there are several forest areas or natural reserves, they may decide to operate through the intermediate development level administrative units.

AR-AMS-0004 operations are labour intensive. Labour provided under the local money system is well paid. If the AR-AMS-0004 methodology is applied at central level, all of the inhabitants of the project area contribute to the costs of the labour and benefit equally from all CDM income. In that case, the “right to work” on the AR-AMS-0004 project may need to be fairly distributed throughout the integrated development project area. The populations themselves will decide on how to do this. Plant nurseries and some aspects of general forest maintenance can easily be distributed. On-going irrigation by hand, on the other hand, may best be left to people living in or near the forest or reserve.

Since the intention of the AR-AMS-0004 applications is to restore forests and reserves to their original condition to encourage bio-diversity there only species traditional to the area concerned will be planted there, irrespective of their rate of growth. Integrated development projects are long-term and free from rapid capital return requirements. Forest growth over 50-100 years is acceptable. Advance trading of CER rights is not recommended.

Within the target mix of species for a given application, long-term preference will be given to endangered species. In drier areas, short-term preference within the mix of species will be given to those with deeper roots capable of relatively early “independence” from manual watering requirements. Once established, these should provide protection and assist in water husbandry for potentially more exposed shallow-rooted types.

The biggest single problem to the application of AR-AMS-0004 and with all other afforestation and reforestation (AR) initiatives in integrated development project areas is water rather than labour. Water required under AR-AMS-0004 applications is additional to the water used for bamboo-based projects under AR-AMS-0001 described in section 04 below which take first preference because they provide earlier returns and greater occupational opportunities, with a possible future potential of allowance for storage of CO2 in worked bamboo products. AR-AMS-0004 applications also compete for water with projects under AR-AMS-2 in section 03 below and with projects in marginal areas under section 05 and wastelands under section 07. Integrated development projects allow for rainwater harvesting but not for large-scale irrigation. Small-scale hand-operated drip irrigation techniques can be applied where limited amounts of water can be obtained from shallow hand-dug wells, provided this can be shown to be sustainable and free from effects on the water table. This means the assistance offered by early planting of deep-rooted species is of such great importance.

AR-AMS-0004 contains default figures for various types of forest. Each application will cover will be specifically designed to provide carbon sinks for up to 15.000 tonnes of CO2. Where possible, potential CO2 sinks may be increased (and the maximum benefit capped at maturity) to provide for higher income during initial slow growth periods. 15.000 tons of CO2 @ abut Euro 14 per tonne {as at 14 November 2009] would produce up to Euro 210.000 a year for up to 50 + years, depending on the species planted and their numbers. There are also wide variations in the average annual increment in tonnes of dry wood mass per hectare according to the climatic zone where the forest is situated. Income during the first 10 years of growth will usually be low. It will then increase during the main growth phase of the tree and then ease off again as the trees reach their maturity. Once the trees have reached their maturity, increase of carbon storage stops. Some default indications are provided in Biomass default tables are given in annex 3A.1 of the Good Practice Guidance for Land Use, Land-use Change and Forestry, published by the Institute for Global Environmental Strategies (IGES) for the Intergovernmental Panel on Climate Change (IPCC), Kamiyamaguchi, 2003.

Each AR-AMS-0004 application will be different from one project to the other. The average annual income should be more or less the same for each one. The area planted and the number of trees needed to achieve the annual income will vary from case to case. An average rate of increase of about 3 tonnes of dry matter per hectare per year produces about 5 tonnes of CO2 sinks. On that basis, 15.000 tonnes of carbon CO2 sinks would involve a forest area of 3.000 hectares. Supposing a typical tree density of one tree per 25m2 ( 5m. x 5m.), 400 trees per hectare would be needed. Supposing an area of 3.000 hectares, 1.200.000 trees would need to be planted and maintained until they are self-sustaining. Provided the minimum tree crown coverage prescribed by the national definition of forest is respected, a larger area can be planted, with fewer trees per hectare. Since this offers more space for natural forest accretion, this option should be followed where possible. Extensions of this type to forest areas do not alter the economic aspects of the small-scale CDM project for which CO2 income is limited to 15.000 CO2.

Protection of plantations in early growth phases is a second major problem to be faced. A plantation area of 3.000 hectares covers about 30 km square (5.5 km x 5.5 km) . Provided equipment can be safely guarded, electric fences operating on photovoltaic power (PV) may offer an appropriate solution to this problem.

Planting can be staggered over a number of years. Assume it is not. Hand-fed drip irrigation for 1.200.000 young trees in dry seasons requires one minute per tree, one person can manage 60 trees an hour or 480 trees per day. Assuming a five-day working week and a cycle of one watering per week, each person can handle 2400 trees. This means that up to 500 people could be needed to look after the 1.200.000 young plants in dry seasons during the early years. Assuming dry seasons last 8 months or 35 weeks, the total number of hours worked could therefore be 35 weeks x 40 hours per week x 500 people, or 700.000 hours per year over the first six or seven years. 700.000 hours’ work will involve local money costs amounting to 700.000 hours x 10 local currency units (this is the average expected working rate under the local money systems), or 7.000.000 local currency units per year. Assuming there are 35.000 adults in the integrated development project area concerned, this involves an annual cost to each adult of 200 local currency units, equal to twenty hours’ work (work for two and a half days) per adult per year during the critical growing period. These are the “costs” the local populations need to agree to.

Total project income could be up to Euro 10.500.000 (expressed in 2010 Euros) or more per project, less the costs charged by the nominated the Designated Operational Entity (DOE) . Assuming total forest husbandry costs to be the equivalent of twelve years’ peak requirements, total work is 700.000 hours x 12 years, or 8.400.000 hours’ work. This produces an hourly formal money (Euros) income of about Euro 1.25 per hour, less DOE costs. In most developing countries today, this would be considered a satisfactory return on labour.

Income for each project area is dedicated to the repayment of the initial costs of the integrated development project in question. After project repayment, ongoing income is distributed equally amongst the local populations, who are all automatically members of the Local Cooperative for the on-going management and maintenance of the project structures. Poor countries do not pay registration and issuance costs. It is assumed that DOE (designated operational entity ) verification costs can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

As mentioned, total project income could be up to Euro 10.500.000 (expressed in 2010 Euros) or more per project. Assuming the execution of up to 2500 integrated development projects for West Africa (excluding Nigeria and Ghana) the scheme would produce at least Euro 28.125.000.000. General application of the concepts in Nigeria would deliver roughly the same benefits. The amounts are subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

The proposed demonstration projects can be repeated as and when labour and water supplies become available in each integrated development project area.

03. Afforestation activities in settlements as defined for the distributed planting of fruit and nut trees and similar.

Methodology AR-AMS-2 (version 2, 17 October 2008) allows for afforestation in settlements. Settlements as defined in 2006 IPCC Guidelines for National Greenhouse Gas Inventories, and Good Practice Guidance for Land Use, Land-Use Change and Forestry (IPCC 2003) may include all developed land i.e., residential, transportation, commercial, and production (commercial, manufacturing) infrastructure of any size, unless it is already included under other land-use categories. Work using the preferred methodology AR-AMS-2 is carried out by the local populations under the local money system set up during an early phase of each integrated development project.

In developing countries settlements are likely to be land strips along roads and streets, waterways, parks, village squares and other public places. Such areas are often not specifically zoned in developing countries. They are often in the “public domain”. The width of the strips can be influenced by each country’s definition of forest, which can include limitations to the width of plantations. Limitations of this type are rare. Default values for forests under the CDM are between 0.05–1.0 hectare with tree crown cover (or equivalent stocking level) of more than 10–30 per cent with trees with the potential to reach a minimum height of 2–5 metres at maturity in situ. Country default values must fall within these parameters. Fairly low country definition values optimise the use of AR-AMS-2 for the planting several rows of fruit trees and nut trees along paths and roads, in village squares, and around churches, mosques and other public places. It is therefore wise for national governments to specify minimum areas in hectares and minimum tree heights at maturity in their definitions of forests. If a minimum area for a forest is defined as one hectare (10.000 m2) and a strip along a path is just 10 metres wide, the plantation would need to be one kilometre long. If the area definition of forest is, say, 0.10 hectare, the strip would only need to be 100 meters long.

Not only does application 03 for fruit trees using AR-AMS-2 provide a possibility to create carbon sinks, it also greatly increases the food security of the populations in integrated development project areas. Useful production of most fruit trees begins quite early, within about 3-5 years and can continue for 30 years and more. Some species of nut trees may produce for 100 years. Variations amongst species are enormous, so each individual project needs to be specifically developed according to the wishes of the local populations.

A disadvantage of many species of fruit trees is that their growth in wood volume is sometimes limited to about 20 years, though timber density may continue to consolidate slowly after that. Regular pruning requirements also reduce annual CO2 storage increments, as these must be subtracted from the calculations of the CO2 sinks achieved. These limitations do not usually apply to nut trees.

Each integrated project area has about 50.000 inhabitants and is divided into about 250 local development units and about 40 intermediate development units. Operations under AR-AMS-2 would be a bundling of 250 mini-projects one at each local development unit level, together designed to provide carbon sinks for 15.000 tonnes of CO2 equivalent per annum. This is roughly 19.000 tons of dry timber mass.

This amounts to an annual increase of up to 19.000 tonnes/250 local development unit areas or 76 tons of dry timber for each of the 250 local development units.

It is assumed that each local development unit area will develop 7-12 hectares of settlement plantations. Of these, 50% (3.5-6 hectares) will be planted with nut trees, and 50% (3.5-6 hectares) will be planted with fruit trees.

The biggest single problem to the application of AR-AMS-2 and with all other afforestation and reforestation (AR) initiatives in integrated development project areas is water rather than labour. Water required under AR-AMS-2 applications is additional to the water used for bamboo-based projects under AR-AMS-0001 described in section 04 below which take first preference because they provide earlier returns and greater occupational opportunities, with a possible future potential of allowance for storage of CO2 in worked bamboo products. AR-AMS-2 applications also compete for water with projects under AR-AMS-0004 in forest areas in section 02 above and with projects in marginal areas. Integrated development projects allow for rainwater harvesting but not for large-scale irrigation. Small-scale hand-operated drip irrigation techniques can be applied where limited amounts of water can be obtained from shallow hand-dug wells, provided this can be shown to be sustainable and free from effects on the water table. This means the assistance offered by early planting of deep-rooted species is of such great importance.

An advantage of growing trees in settlement areas is that rainwater harvesting off road surfaces and squares is usually easier to carry out than in forest areas and on grasslands. The rainwater can sometimes be harvested close to where the trees are planted. The amount of water which can be sustainably harvested this way is limited, but it should be enough to extend rainy seasons for a few weeks.

Each local development unit would decide which trees it wants to plant. Species should be chosen to provide a wide diversification of fruit and nuts throughout the year, rather than have a flood of products during a single short season. The food value of fruit and nuts produced takes priority over CDM income from the plantations. Traditionally, orchards in many countries were coupled with grazing activities, with just 200 trees, and even less, per hectare. Modern industrial orchards may contain anything up to 1500 trees per hectare. This does not conform to the sustainability requirements of integrated development projects.

It is assumed here that 50% (about 3.5-6 hectares) of each local development unit area will be planted with nut trees of various (edible) types. It is recommended these plantations also include soap-nut trees on an experimental basis. For more information refer to the file on soap nuts. The sapindus trifiolatus is native of southern India. While sapindus mukorossi from the Himalayan region has larger fruit and is considered to deliver better quality soap nuts than sapindus trifiolatus, the latter may be more appropriate for cultivation in drier, low altitude areas in Africa. Soap nuts start producing fruit in their ninth year. Apart from their inherent value as natural soaps for local use, they form a guaranteed small-scale export product.

Protection of plantations in early growth phases is a second major problem to be faced. Provided equipment can be safely guarded, electric fences operating on photovoltaic power (PV) may offer an appropriate solution to this problem.

CDM income for this 50% of settlement area activity is comparable with that for 50% of forest recovery activities described under 02. Recovery of forest lands and natural parks and reserves using traditional species above, with the difference that the nuts can be harvested for food and stored for longer periods, increasing the food security of the local populations. Income from this 50% would be about Euro 105.000 a year for up to 50 + years, therefore up to Euro 5.250.000 (expressed in 2010 Euros) or more per project. Assuming total forest husbandry costs to be the equivalent of twelve years’ peak requirements, total work is 350.000 hours x 12 years, or 4.200.000 hours’ work. This produces an hourly formal money (Euros) income of about Euro 1.25 per hour, less DOE costs. In most developing countries today, this would be considered a satisfactory return on labour.

CDM income from the remaining 50% (3.5 - 6 hectares) of settlement areas is considerably less. Carbon storage in orchards varies according to orchard management. The annual increase in biomass in modern industrial orchards with a high density of trees per hectare tends to be reduced. After the first few years, the CO2 in the produce (fruit) together with pruning can even equal the extra annual CO2 storage in tree trunks and branches. The fruit is, hopefully, eaten. Pruned branches and twigs can be used as renewable energy for the production of mini-briquettes for stoves.

Notwithstanding this, carbon sinks for standard orchards are estimated to be about 30 tons of dry mass per hectare, with an average annual increment over 20 years of 1.5 tonnes of dry mass. Multiply this by 50% to reach its estimated carbon content, which is 0.75 tons of carbon per hectare per year x 3.6663, which is the ratio of the atomic weight of CO2 ( 43,999915 to that of carbon 12,001115 – otherwise known as the 44/12 ratio). This is about 2,75 tonnes of CO2 per hectare per year. 2,75 tonnes CO2 x about Euro 14 per tonne (as at 14 November 2009) amounts to Euro 38,5 per hectare. The annual amount for each local development unit is therefore Euro 38,5 x minimum 3.5 hectares, or Euro 134,75, or Euro 33.500 per project area per year. Assuming an increment period of 20 years, the total CDM income for each local development unit is Euro 2.695, and the total per project with 250 local development units Euro 673.750.

Expected CDM project income from 03. Afforestation activities in settlements as defined Distributed planting of fruit and nut trees and similar is therefore about Euro 5.250.000 for the 50% planted with nut trees and similar, and Euro 673.750 for the 50% area planted with fruit trees, for a total of Euro 5.923.750.

Assuming the execution of up to 2500 integrated development projects for West Africa (excluding Nigeria and Ghana) the scheme would produce at least Euro 14.809.375.000. General application of the concepts in Nigeria would deliver roughly the same benefits. The amounts are subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

One species of possible interest is the butterfruit, or safou, (dacryodes edulis) which is native to west and central Africa. It grows to a height of 17 m. .

In humid tropical areas with high rainfall (1780 mm – 2280 mm), thought might be given to planting some African oil palms (Elaeis guineensis). Exploited commercially, they can produce up to 2 tonnes of oil per hectare. They bear their first fruit after three-four years. For specific information on the use of palms as possible carbon sinks read Lamade E. and Bouillet J-P, a Carbon storage and global change : the role of oil palm, Oléagineux, Corps Gras, Lipides (OCL )Vol. 12 no. 2 . John Libbey Eurotext, Montrouge, Mars-Avril 2005, pp. 155-160. Carbon storage can range from 1.5 tonnes of carbon (5.5 tonnes CO2) per hectare per year in natural forest environments to 13,4 tonnes of carbon (49 tonnes of CO2) per hectare per year in non-harvested plantations. Where national definitions of forest include palms, short term build-up of carbon sinks under the CDM mechanism over the first four years and subsequent carbon maintenance offers an interesting option in humid tropical areas.

In principle, CDM settlements projects are one-off projects for each integrated development area as settlement areas are limited.

04. Small-scale agro-forestry activities – such as distributed bamboo plantations on grasslands and croplands.

For this section, bamboo plantations are preferred to other possible crops because of the superior features of bamboo with regard to rapid growth, yield, flexibility of use, (eventually) food supply, and potential for creating occupations and added value. In semi-arid and arid areas where water supply is a problem, preference may be given to mixed or to alternative forest crops.

For technical information on bamboo plantations refer to SECTION 07. NOTES SPECIFIC TO THE ROLE OF BAMBOO IN AFFORESTATION AND REFORESTATION PROJECTS above.

Small-scale agro-forestry activities on grasslands and croplands are covered under Sector 14 - Afforestation and reforestation (AR) by methodology AR-AMS-0001 “Simplified baseline and monitoring methodologies for small-scale A/R CDM project activities implemented on grasslands or croplands with limited displacement of pre-project activities.” The project area is the integrated development project area, and all of the technical parameters for methodology AR-AMS-0001 are automatically met. These are:

“(a) Project activities are implemented on grasslands or croplands;

“(b) Project activities are implemented on lands where the area of the cropland within the project boundary displaced due to the project activity is less than 50 per cent of the total project area;

“(c) Project activities are implemented on lands where the number of displaced grazing animals is less than 50 per cent of the average grazing capacity of the project area;

“(d) Project activities are implemented on lands where ≤ 10% of the total surface project area is disturbed as result of soil preparation for planting.”

Assuming a minimum area of 1700 hectares of full-density planting and 250 tank commission areas in a given integrated development project area, each with 40-50 families, the planted area would be about 7 hectares per tank commission area or an area of say, 300m x 240m.

Careful analysis is needed before bamboo is adopted for CDM purposes in arid and semi-arid areas as regular and systematic provision of water and fertiliser by hand for say 7500 plants in each local development area is no joke. Assuming hand-fed drip irrigation for 7.500 bamboo plants in dry seasons requires one minute per plant, one person can manage about 60 plants an hour or 480 plants per day. Assuming a five-day working week and a cycle of two water treatments a week, each person can handle 1200 plants. This means that about 6 people could be needed in each local development area to look after the 7.500 bamboo plants in dry seasons. Assuming dry seasons last 8 months or 35 weeks, the total number of hours worked could therefore be 35 weeks x 40 hours per week x 6 people, or 8.400 hours per year on an on-going basis. An advantage is that the work is done during the dry seasons, when the traditional work load on rural communities is lighter than during the rainy seasons. Another advantage is that the work can carried out by anyone, including the blind and some handicapped people.

8.400 hours’ work per year in each of the 250 local development units will involve local money costs amounting to 8.400 hours x 10 local currency units (this is the average expected working rate under the local money systems), or 84.000 local currency units per year in each local development unit area. Assuming there are 180 adults in that local unit area, this involves an annual cost to each adult of about 500 local currency units, equal to fifty hours’ work (work for about six days) per adult per year. These are the “costs” the local populations need to agree to. Until harvested wood products made from bamboo are accepted for carbon accounting, the harvested bamboo does not add to CO2 sinks and does not qualify for CDM financing. It is replaced annually. It is therefore renewable biomass, which can be freely used indefinitely and on an on-going basis for the manufacture of mini-briquettes for cook stoves and the production of many other items.

The growth cycle of the bamboo plant is about seven years, after which the CO2 stored in the plantation is maintained by selective cropping. This means that CDM financing is paid out on the period of incrementation of CO2 storage, which is 7 years. After that, the plantation must be properly maintained to avoid the need to repay the CDM funds received for CO2 storage. In exchange for their labour, local populations receive a regular supply of edible bamboo shoots (where an edible variety is planted), an on-going supply of renewable biomass for use in mini-briquettes for cooking purposes, and materials for numerous labour-intensive productive activities. The productive activities will be modelled to the requirements of the integrated development project area as a whole. Commonly required items will produced and consumed in each local development unit area. More specialised items will be produced for sale in the intermediate development unit areas. Highly specialised items such as bamboo bicycles will be made for distribution and sale at general project level. These are listed in the article in section 07 above.

An average bamboo plantation of 7 hectares for each local development unit will produce a CDM income over 7 years of one 250^th part of the overall CDM income, which may vary between Euro 2.000.000 and Euro 3.661.000. This produces a theoretical income at local development level of between Euro 8.000 – Euro 14.644 over the seven year period. 8.400 hours x 7 years produces a total of 58.800 hours’ work, or 7.350 working days of eight hours each. Formal money income for the benefit of the project as a whole is therefore about Euro 1,10 per day’s work, less DOE (designated operational entity) costs. It is assumed that DOE (designated operational entity ) validation and verification costs can be reduced to a nominal figure within the framework of a widely applicable general convention involving sub-regional development of the type foreseen. Poor countries are exempt from payment of CDM registration and issuance costs. After project repayment, ongoing income is distributed equally amongst the local populations, who are all automatically members of the Local Cooperative for the on-going management and maintenance of the project structures.

Formal money returns of Euro 1,10 per day may seem low. However, the people carrying out the maintenance of the bamboo forests are fully paid under the local money system set up in the integrated development project area in question. Each of the 250 local development units in the project area benefits fully from the bamboo it produces. Assuming an average production of 8 tonnes per hectare, 7 hectares will produce 56 tonnes of bamboo biomass per year. Each local development unit will decide on how it wants to use that production to add value to it.

Assuming the execution of up to 2500 integrated development projects for West Africa (excluding Nigeria and Ghana) the scheme would produce a CDM income between Euro 5.000.000.000 and Euro 9.152.500.000. General application of the concepts in Nigeria would deliver roughly the same benefits. The amounts are subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

Not only Pandas like bamboo. Ruminants eat it too. Bamboo leaves have been used for animal fodder in Asia for many centuries. This means that each local development unit in an integrated development project area will need to protect its bamboo plantation. Provided equipment can be safely guarded, electric fences operating on photovoltaic power (PV) may offer an appropriate solution to this problem. An average area of 300 m x 240m can probably be managed through a single electric fence system.

In humid tropical areas with high rainfall (1780 mm – 2280 mm), thought might be given to planting some African oil palms (Elaeis guineensis). Exploited commercially, they can produce up to 2 tonnes of oil per hectare. They bear their first fruit after three-four years. For specific information on the use of palms as possible carbon sinks read Lamade E. and Bouillet J-P, a Carbon storage and global change : the role of oil palm, Oléagineux, Corps Gras, Lipides (OCL )Vol. 12 no. 2 . John Libbey Eurotext, Montrouge, Mars-Avril 2005, pp. 155-160. Carbon storage can range from 1.5 tonnes of carbon storage (5.5 tonnes CO2) per hectare per year in natural forest environments to 13,4 tonnes of carbon (49 tonnes of CO2) per hectare per year in non-harvested plantations. Where national definitions of forest include palms, short term build-up of carbon sinks under the CDM mechanism over the first four years and subsequent carbon maintenance offers an interesting option in humid tropical areas.

In principle, CDM bamboo projects are one-off projects for each integrated development area. Bamboo supply from the one project should be enough to meet the requirements and processing possibilities of the local populations.

05 Small-scale agro-forestry activities – distributed demonstration plantations for practical purposes for local use, including but not limited to Moringa plantations on marginal lands.

Afforestation and/or reforestation (AR) projects. Small-scale agro-forestry activities on marginal lands – distributed plantations for practical purposes for local use, including but not limited to moringa plants. (Sector 14 - Afforestation and reforestation (AR).). The preferred methodology is AR-AMS-0004 , version 2, 11 June, 2009 – which is the one used for forestry applications under point 02. Recovery of forest lands and natural parks and reserves using traditional species.

As with applications 02-04, the biggest single problem to the application of AR-AMS-0004 to marginal lands in integrated development project areas is water rather than labour. Water required under this application 05 is additional to the water used for applications 02, 03, and 04. Integrated development projects allow for rainwater harvesting but not for large-scale irrigation. Small-scale hand-operated drip irrigation techniques can be applied where limited amounts of water can be obtained from shallow hand-dug wells, provided this can be shown to be sustainable and free from effects on the water table. This means the assistance offered by early planting of deep-rooted species is of great importance.

It is assumed that many integrated development project areas will incorporate marginal lands, especially in pastoral communities. CDM applications in marginal lands have the advantage that they are not limited to the use of traditional forest species native to the project area. They may also tend to be more extensive.

One important species, which is already domesticated (naturalised) in many developing countries, is the moringa oleifera or horseradish tree. Some basic information on it can be obtained at the file Moringa sand filters for water purification. Plenty of supplementary information on it is available on the internet. The horseradish is a very special tree. It has deep tap roots which make it suitable for dry areas. It grows very quickly, up to 3 meters within six months of transplanting. It grows to a height between 4 meters and 12 meters, with a biomass increment of 18 tons of biomass per hectare over 3 years, or 6 tons per year. This is 3 tons of carbon per hectare per year, with carbon fixation ratio of 3 x 44/12, or 11 tons of CO2 per hectare per year. At a rate of about Euro 14 per tonne CO2 (14 November, 2009) the potential CDM income is Euro 154 per hectare per year over 3 years. The production of 15000 tons of CO2 allowed under small-scale CDM methodologies would therefore need about 1400 hectares, with 600-700 plants per hectare. If used as hedgerows for alley cultivation of crops, the area to be covered in each integrated development project area would be at least 3000 hectares, or an average of 12 hectares in each of the 250 local development unit areas an integrated development project area. Tree coverage must, however conform to the national specification for forest within the CDM parameters, in particular in relation to crown coverage, the maximum for which should lie between 10% and 30%.

Because it sinks its tap-roots quickly, the horseradish tree needs human assistance for watering for a maximum period of 12 months after transplanting, usually less. It adapts to water scarcity by reducing the number of leaves. This means that cultivation-related labour costs are lower than those in applications 01-04 above. Once established it mines fertilisers from the soil. Natural fertilisers should be used at planting time. Manure from animals in pastoralist areas is ideal for this purpose.

All parts of the horseradish tree can be consumed. Its leaves are a substitute for spinach, and form prized forage for animals, especially goats. Horseradish leaves grow in the dry season and are available when grasslands are barren. The oil from their seeds is edible, similar to olive oil, and used for cooking. The seeds themselves can be eaten like peanuts. The seed cake after pressing can be used to make Moringa sand filters for water purification. Its bark can be chewed. All parts of the tree are said to have medicinal qualities.

The horseradish tree is widely used as a hedgerow for the alley cultivation of various crops, which need shelter from wind and excess of sun. As a hedgerow, it interferes more with the crops grown than other wind/sun protections. Use with “shade-tolerant leafy vegetables and herbs is best since moringa hedgerows are highly competitive and can reduce yields of companion plants significantly. For instance .it can reduce the yields of eggplant and sweet maize by up to 50% (Infonet-biovision.org website, accessed 31 December 2010.) The same resource suggests the use of the Moringa plants themselves as supports for crops such as pole beans, once the Moringa trees are mature. From the second year onwards, Moringa can be intercropped with maize, sunflower and other field crops. Where climatic conditions are appropriate, sunflower is particularly recommended s it helps to control weed growth.

Combination of the use of horseradish tree as hedgerow with pull-push (“stimulo-deterrent diversion”) technology for improved maize, sorghum, millet and other crop yields (The Gatsby Charitable Foundation, The Quiet Revolution : Push-pull Technology and the African Farmer. London, April 2005, ISBN 1 901351 53X ) could prove useful in marginal areas. The method uses Napier Grass (pennisetum purpuream) and Greenleaf Desmodium (desmodium intartum), both of which are naturalised in West Africa, to combat crop pests. Both grasses are perennials and provide good fodder for animals in pastoral areas. They can be regularly cropped (by hand) every few months for several years. Napier grass needs some water. Greenleaf Desmodium has taps roots and is reasonably drought resistant. Napier Grass is planted inside horseradish hedgerow plantations. Inside the rows of Napier Grass, alternate rows of Greenleaf desmodium and the preferred crop are planted. To achieve the required forest coverage, multiple rows of horseradish hedgerows would be planted. The horseradish plantations are established and left to form carbon sinks for 3-4 years. The horseradish is then pruned so as to conserve its existing CO2 sinks and the crops planted in the (wide) alleys.

This means that CDM income is earned during the early cropping years, once the horseradish has reached its maximum CO2 sink conditions.

Horseradish produces 3 tons of carbon per hectare per year, with carbon fixation ratio of 3 x 44/12, or 11 tons of CO2 per hectare per year. At a rate of about Euro 14 per tonne CO2 (14 November, 2009) the potential CDM income is Euro 154 per hectare per year over 3 years or Euro 462 per hectare over the three years period. The production of 15000 tons of CO2 allowed under small-scale CDM methodologies would therefore need about 1400 hectares actually planted, with 600-700 plants per hectare. 1400 hectares planted x Euro 462 per hectare provides CDM income of Euro 646.800 per project over the three years’ accounting period.

Assuming the execution of up to 2500 integrated development projects for West Africa (excluding Nigeria and Ghana) the scheme would produce a CDM income between Euro 1.617.000.000. General application of the concepts in Nigeria would deliver roughly the same benefits. The amounts are subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

As mentioned, the area planted with horseradish would be about 1400 hectares. Tree crown coverage must be conform with the various national definitions for “forest” to qualify for CDM financing. Subject to this limitation, the total cultivation area including horseradish, Napier Grass, Greenleaf Desmodium and preferred crop (millet, for example) might be up to 4200 hectares for each integrated development project area. Assuming there are 250 local development units in a given integrated development project area, this amounts to the creation of a cultivate area of about 17 hectares. The proposed solution is of special interest for pastoral communities with animal manure, including liquid manures, available for fertilising and (limited) watering purposes.

Because animals love Moringa leaves, plantations need to be protected from them. Provided equipment can be safely guarded, electric fences operating on photovoltaic power (PV) may offer an appropriate solution to this problem.

Another planting option (subject to testing) might be the kiri tree (paulownia tomentosa) which is reputed to be one of the world’s fastest growing trees with one of the highest amounts of C02 storage. According to a press article in the Concord Times in Freetown on 29^th March 2010, “Sierra Gold Corporation announced Thursday it has made its first purchase of 1000 kiri trees for its carbon credit program.” Experience with the Sierra Gold project should be followed carefully. In his field report on 2^nd December 2010, the President of Sierra Gold Corporation reported :

“In addition, field work has been undertaken in Sierra Leone to assess the growth potential of Kiri trees imported as cuttings from Australia. Our preliminary results show poor transplant survival rates, presumably owing to a transit period of 10-12 days which we believe is excessive and deleterious to the survival of plants exacerbated by a lack of water. However on a positive note, of those cuttings that have survived qualitative analyses suggests that the growth of Kiri trees in Sierra Leone can resemble published fast growth rates for Australia for Kiri trees.”

06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species.

CDM methodology AR AMS-003, Version 1 , 14 December 2007 would apply to 06. Afforestation and/or reforestation (AR) projects on wetlands using traditional species. Applications up until now have been applied to mangroves in mangrove swamps. Other traditional species will be used according to the bio-spheres involved. Integrated development project areas with wetlands are by definition unlikely to have areas falling under application 07 Afforestation and/or reforestation (AR) projects on lands having low inherent potential to support living biomass. The same concept applies the other way round. Areas unable to support bio-mass are not usually to be found in river deltas, along coasts, and adjacent to lakes. While methodologies for wetlands and methodologies for low-biomass areas will usually be alternatives, both can be applied where the possibilities exist.

Mangrove forests are under threat world-wide. They are amongst the most important eco-systems for bio-diversity and for fish-spawning, and as tidal and tsunami barriers. They are found throughout tropical regions in all continents. Click here for a satellite map showing the distribution of mangrove swamps. In West Africa, for instance, they are found along the Atlantic coast from Senegal to Liberia, and along much the Eastern coast of the Gulf of Guinea and cover an area of about 2.000.000 hectares, of which nearly 50% in Nigeria.

One advantage of wetlands developments is that by definition they do not compete for water with applications 02-25 and 07.

Wetlands are considered degraded if one or more of the following conditions are commonly present within the proposed project boundary and are likely to continue to occur in absence of the project activity:

1. Vegetation degradation:

• For degraded condition show that, for example: The cover and/or health of vegetation as determined by visual assessment or similar indicator-based approach has decreased by at least 25% below that of similar undisturbed wetlands with similar ecological conditions.

• For degrading condition show that, for example: The cover and/or health of vegetation as determined by visual assessment or similar indicator-based approach has decreased by at least 25% occurring over a reasonable period of time since 31 December 1989 as selected by the project participants and before the start of the proposed A/R project activity.

2. Anthropogenic influences leading to degradation, for example:

• There is a documented history of on-going loss of vegetation cover due to anthropogenic influences; or

• Evidence can be provided that anthropogenic actions, which are likely to continue in the absence of the small scale A/R project activity, can be documented as the cause of on-going loss of vegetation cover on similar lands elsewhere.

3. Provision of any other evidence that transparently demonstrates project lands are degraded or degrading.

Wetlands are defined as :

(i) Degraded intertidal wetlands (e.g. mangroves);

(ii) Undrained peat swamps that are degraded with respect to vegetation cover;

(iii) Degraded flood plain areas on inorganic soils and

(iv) Seasonally flooded areas on the margin of water bodies/reservoirs.

The Good Practice Guidance for Land Use, Land-use Change and Forestry, published by the Institute for Global Environmental Strategies (IGES) for the Intergovernmental Panel on Climate Change (IPCC), Kamiyamaguchi, 2003 defines wetlands as land (excluding rice cultivation areas) that is covered or saturated by water for all or part of the year and that does not fall into the forest land, cropland, grassland or settlements categories.

An actual fully documented project example for a small-scale and low-income community-based mangrove afforestation project on tidal flats of three small islands around Batam City, Riau Islands Province, Republic of Indonesia is available. Page 17 of the document has a table showing the estimated net anthropogenic annual GHG absorption (ton CO2-e/115 ha/yr), as in that case an area of 115 hectare was planted, with an average annual greenhouse gas absorption over the 30 years of 32,3 tons of CO2e per hectare (above-ground and below-ground together). On another table on page 30, this is 33,2 tons of CO2e. Verification at five year intervals. The rate of carbon storage in mangroves increases over ten years when it reaches a peak. After that, the rate eases off over the following twenty years.

Carbon storage by mangroves is thought to be higher than that in tropical forests. It is believed to attain 500 tonnes per hectare over the 30 year growing cycle.

Assuming an average annual carbon dioxide storage of 32 tonnes of CO2 per hectare per year, the CDM small-scale project limit of 15.000 tonnes CO2 per year will support maximum plantation area of about 450 hectares. Forest restoration may be less intensive and cover a larger area.

32 tonnes of CO2 per hectare at about Euro 14 per tonne (14 November 2009) produces an annual CDM income of up to Euro 448 a hectare, or Euro 13.440 over a 30 year period. Assuming 450 hectares were planted, each mangroves project would yield an average of Euro 201.600 per year, or Euro 6.048.000 over 30 years. The amounts are subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

Just how many of the mangroves in West Africa need regeneration or restoration. According to Polidoro B. et al, The Loss of Species : Mangrove Extinction Risk and Geographic Areas of Global Concern, PLoS One. 2010; 5(4): e10095. Published online 2010 April 8 at the PLoS One website, accessed 01 January 2011,

“At least 40% of the animal species that are restricted to mangrove habitat and have previously been assessed under IUCN Categories and Criteria are at elevated risk of extinction due to extensive habitat loss [12]. It is estimated that 26% of mangrove forests worldwide are degraded due to over-exploitation for fuelwood and timber production [24]. Similarly, clearing of mangroves for shrimp culture contributes ~38% of global mangrove loss, with other aquaculture accounting for another 14% [1]. In India alone, over 40% of mangrove area on the western coast has been converted to agriculture and urban development [25]. Globally, between 20% and 35% of mangrove area has been lost since approximately 1980 [24], [26], [27], and mangrove areas are disappearing at the rate of approximately 1% per year [26], [27], with other estimates as high as 2–8% per year [28]. These rates may be as high as or higher than rates of losses of upland tropical wet forests [24], and current exploitation rates are expected to continue unless mangrove forests are protected as a valuable resource [29]. ”

Assuming loss of 50% of the mangroves in West Africa, about 1.000.000 hectares of the 2.000.000 hectares there need regeneration, of which 500.000 hectares in Nigeria, with particular reference to the highly polluted Niger Delta area. 1.000.000 hectares. At Euro 13.440 per hectare over 30 years, the CDM income potential for West Africa is Euro 13.440.000.000, of which roughly 50% in Nigeria.

Since mangroves are used for fodder for camels, goats and sheep and other animals, new plantations need to be properly protected. This aspect needs to be carefully considered when each project is drafted, as the presence of water may mean the use of electric fences operating on photovoltaic power (PV) is not possible for this purpose.

The proposed demonstration projects can be repeated as and when labour and water supplies become available in each integrated development project area.

For the purposes of CDM incomes this application has been rated at zero as it will often be an alternative to applications on dry lands. Since more projects are likely to involve dry lands than wetlands, standard indicative calculations include CDM projects for dry lands. Wetlands projects produce a CDM income of about Euro 6.048.000, more than four times that of dry lands projects which produce only Euro 1.4430.750. Mangroves accumulate carbon sinks over 30 years, Jatropha over just 4-5 years.

07 Demonstration afforestation and/or reforestation projects on lands having low inherent potential to support living biomass.

AR-AMS-0005 (Version 2, 8 April 2009) where project activities are implemented on areas having low inherent potential to support living biomass without human intervention.

Project activities are implemented on areas listed in (i) to (iv) below. Project participants have to provide evidence/data showing the selected project sites meet the local/national criteria for these categories using information from verifiable sources and/or expert opinion as appropriate:

(i) Sand dunes;

(ii) Bare lands;

(iii) Contaminated or mine spoils lands;

(iv) Highly alkaline or saline soils.

The United Nations Convention to Combat Desertification was adopted in Paris on 17^th June 1994 and entered into force on 26^th December 1996. Its objectives, set out in Article 2, are :

“1. The objective of this Convention is to combat desertification and mitigate the effects of drought in countries experiencing serious drought and/or desertification, particularly in Africa, through effective action at all levels, supported by international cooperation and partnership arrangements, in the framework of an integrated approach which is consistent with Agenda 21, with a view to contributing to the achievement of sustainable development in affected areas.

“2. Achieving this objective will involve long-term integrated strategies that focus simultaneously, in affected areas, on improved productivity of land, and the rehabilitation, conservation and sustainable management of land and water resources, leading to improved living conditions, in particular at the community level. ”

Article 7 or the convention gives priority to the situation in Africa, including (under article 10) the incorporation of “long-term strategies to combat desertification and mitigate the effects of drought, emphasize implementation and be integrated with national policies for sustainable development;” and giving “particular attention to the implementation of preventive measures for lands that are not yet degraded or which are only slightly degraded; ” “through sustainable management of natural resources; sustainable agricultural practices;”.

Annex I of the Convention refers specifically to Regional Implementation in Africa, article 3 of which refers specifically to “the widespread poverty prevalent in most affected countries, the large number of least developed countries among them, and their need for significant amounts of external assistance, in the form of grants and loans on concessional terms, to pursue their development objectives; ”

The Economic Community of West African States (ECOWAS) and CILSS published the sub-regional action programme against the desertification in West Africa and Tchad, in May 1999. This document is available in French only. It provides for extensive cooperation at sub-regional level amongst the Community members in eight priority sectors, but does not refer to specific practical actions.

The EU-Africa Infrastructure Partnership was launched in Addis Ababa on 24 October 2007. This led to the First Action Plan (2008-2010) for the implementation of the Africa-EU Strategic Partnership under the Africa-EU Partnership on Climate Change. The sole objective of the Priority Action 2 of Part 6 of the plan is to:

“ Combat desertification and improve the livelihoods of the inhabitants of the countries of the Sahara and Sahel zones of Africa.”

The expected outcomes are :

“Progress towards reversal of desert encroachment and soil degradation; Improvement of micro-climatic conditions and reduction of land degradation.”

Activities include :

“Identify the relevant activities in the “Green Wall Initiative” adapted to the national and regional context; [The Green Wall for the Sahara Initiative, proposed by the Department of Rural Economy and Agriculture of the The African Union Commission, Addis Ababa, May 2006.]

• Enhance environmental sustainability within the framework of regional and international environmental agreements;

• Advance the implementation of the United Nations Convention to Combat Desertification;

• Improve the knowledge on land degradation and desertification;

• Control land degradation, promote sustainable land management with a view to integrate land management issues in national development strategies, including poverty reduction strategy papers (PRSPs), and increase land productivity and food production;

• Promote integrated natural resource management and conserve biological diversity;

• Address the problems of land degradation and increasing aridity at all relevant levels to respond to local needs and build on local and individual efforts and successes;

• Create awareness and promote wider public involvement in arresting desertification in a sustainable manner;

• Identify and promote alternative livelihoods and productive systems for the populations affected by desertification.”

The fight against desertification has been linked with the Jatropha plant (Jatropha curcas). This plant has a number of features making it interesting for action against desertification, but its cultivation is controversial because of the claims made about its suitability for the production of bio-fuels. The plant has been widely discussed in relation to its “business” potential, where it became a hype, rather than for its inherent ecological properties. These aspects are reviewed in Jongenschaap R.E. et al, Claims and Facts on Jatropha Curcas L., Report 158, Plant Research International, Wageningen University, Wageningen and Stichting Het Groene Woudt , Laren, October 2007 published at the International Fund for Agricultural Development (IFAD) website.

Jatropha is interesting for projects in areas with low potential to support biomass because, if sown as seed, it produces a thick primary tap root with 4 lateral roots and straight secondary roots. If it is derived from cuttings, the tap roots do not develop, and the plant grows only secondary roots. Within the framework of integrated development projects, all plants would therefore be grown from seed. In that case, for what its worth, they would start producing seeds (fruit) after two years. Production of fruit would then continues for up to 50 years and more.

The plant grows rapidly to reach a height of 4-5 meters, and even 15 meters in suitable ground conditions. It some areas it is considered a weed. For this reason its use has been banned in some areas of Australia.

Claims concerning rainfall conditions necessary for the survival of Jatropha vary widely. Some indications from India put it as low as 250 mm. For work against desertification, a minimum of 400 mm may be assumed. After the first year following transplanting, little plant husbandry is needed until harvesting starts. During the first year, outside of the rainy season, the plants need to be watered twice a week. This requirement must always be remembered as the water must come from somewhere. The application competes with other water requirements as set out in applications 02-05 above.

The plant is widely known in some African countries, for example Mali, as hedges, to protect crops. Jatropha is useful for this purpose because it is in general not fit for human or animal consumption, and animals keep away from it. This helps to avoid conflicts between herders and local farmers. In Mali, Jatropha hedges have been reported as producing about 1 ton of seed annually per kilometer of hedge. Because it is not attractive to animals no action is needed to protect the plantations. This is especially useful where plantations are distant from human settlements.

The press cake remaining after oil-pressing can be used for fertilisation.

Jatropha wood is of poor quality even for fire-wood, but it could be used for the production of mini-briquettes for improved cook stoves.

Jatropha trees reach maturity after about 4 years after transplantation, 6 years from the sowing of the seed. Following transplantation, growth of dry matter is reported to be between 4,4 and 22,2 tonnes per hectare per year, or between 2,3 and 11,1 tonnes of carbon x 44/12, or between 8 and 40 tonnes of CO2 equivalent per hectare per year. Given the conditions under which the plant would be used in this application, a maximum of 8 tonnes of CO2 per hectare per year is assumed. At this rate, CDM income might be about Euro 154 per hectare per year, or Euro 770 per hectare over the five years of carbon build-up following transplantation. The area needed to provide 15.000 tonnes CO2, the maximum for a small-scale project under methodology AR-AMS-0005 would therefore be about 1875 hectares, or 7.5 hectares for each of 250 local development units. Where the project objective is to prepare barren land for use for cropping purposes after five years, the area covered would be up to three times greater. Jatropha components are toxic and help fight some crop pests. However they are themselves not free from all pests.

Jatropha trees in marginal areas with low rainfall will tend to be stunted and slow-growing. While a typical density would be about 4m2 per plant (2500 plants per hectare), this could be reduced to up to 9m2 (+/- 1250 plants) in arid areas. Jatropha sown as hedges and hedgerows rather than as plantations could be planted with a higher density. In any case, density should be such that 1875 hectares of planted area could be expected to produce a CDM income of Euro 288.750 per year for a total of Euro 1.443.750 over 5 years.

During the first five years, the plants would be left to act as carbon sinks. This period may need to be even longer in very dry conditions. Fruit and leaves would be left in situ to serve as mulch for the soil. After that, carbon sinks would be maintained. Leaves would be used for mulch. Pruned material, seed cake, and husks would be recycled as biomass for mini-briquettes for cooking purposes. Oil recovered from the seeds would be used locally to drive equipment with motors adapted for direct use with bio-fuels. Seed production is to the order of 2-3 tonnes per hectare. Assuming 2 tonnes of seed per hectare, inedible oil produced would be about 400 litres per hectare since 6 kg of seed produces 1.2 litres of oil. Warning ! In dry areas, seed production may well be lower still. An integrated development project area with 1875 hectares of planted area would therefore produce about 750 tons of inedible oil per year. The value of this as replacement of imported fuel may be to the order of Euro 100.000 per year. Since all work is carried out under the local money system set up in each integrated development project area, this result is acceptable for local fuel oil consumption there. It is not an economic proposition for export outside of the project area. Where climatic conditions are better, Jatropha cannot compete in production with other oil-producing crops. It should never be used as a source of bio-fuel in competition with (substitution of) food crops either in terms of land use or in terms of dedication of labour.

The purpose of Jatropha cultivation is to set up possibilities for protected cultivation of food crops for local consumption in marginal areas. Direct income from plant oil should be considered a by-product. This conclusion is confirmed in the 2009 paper by Wahl N. et al, Economic Viability of Jatropha Curcas L. Plantations in Northern Tanzania, World Agro-Forestry Centre, Working Paper 97, Nairobi, 2009.

Jatropha is by no means the only plant which can be used for protection against desertification. For CDM financing possibilities are limited to plants qualifying as trees within the national definitions of forests. Species such as agaves, cacti, or panic grass (panicum turgidum) do not qualify for this purpose but they could form useful crops for cultivation inside Jatropha hedgerows.

One species that does qualify as an alternative is the Christ's Thorn. (Ziziphus spina-christae) the native area for which includes North and West Africa. In Niger it is common. It will grow in areas within an approximate rainfall range of 100-600 mm. Its temperature tolerance is greater than 44 degrees C. (mean monthly maximum). The plant provides edible raw fruit and raw seeds thought to be rich in carbohydrates, vitamins and minerals. Its fruits are appreciated in Zinder, where it is sold at the market, in Agadez and the area around N'guimi. Its leaves are good for animal fodder. Goats especially enjoy the lower leaves and branches, and camels clean the trees efficiently at the higher levels.

The Christ’s thorn is a thorny, erect, tree growing up to 12m. and more. The Christ’s Thorn is a real pioneer. Its slow growth makes it unattractive to CDM projects looking for a quick return. It is ideal for long term CDM investments for the fight against desertification within the framework of integrated development projects where labour costs are covered under the local money systems set up.

Where Christ’s thorn plantations are used to create a barrier to desertification, they must be protected against animals. This can be a problem in isolated areas far from villages, where unattended photovoltaic fencing systems could be permanently at risk. Water needs to be provided only during the establishment period. If this takes place during the wet season, the need for water servicing is expected to be limited.

Another candidate is the Tagart bush. (Maerua crassifolia) It is a bush or small tree that grows to a height of 2-5 meters. However, see report below where the height is given as maximum 10 m. It is native to the entire Sahara region, including Mauritania, Morocco, Algeria and Chad. In Niger it can be found in the Aïr Mountains, West Termit, Zinder and Aderbissinat. Its approximate required annual rainfall range is 100-700 mm. Its temperature tolerance exceeds 42 degrees C. (mean monthly maximum). Its fruit is edible. Its leaves can be eaten cooked and are used by villagers in Niger in sauces. It is thought to be rich in protein, vitamins and iron.

This is a description taken from the Royal Botanic Gardens in Kew (UK) as published by JSTOR Plant Science :

“A small tree to 10 m high of the dry savanna and desert, occurring in Mauritania and Senegal and eastwards across the northern Sahel zone of the Region to E Africa, Egypt and Arabia. The wood is whitish, very hard and is used to make handles for weapons, implements, ploughs and water-troughs in the northern part of the Region (2, 4), chew-sticks in Ghana (4) and staves and toothpicks in Morocco (6). It burns with a nauseating smell (2, 4). The ash furnishes a black dye used by the Masai of E Africa to colour their shields (8).The leaves enter into human diet in Senegal and the leafy twigs yield a good forage for stock but horses will not browse it (1). It is especially of value in the dry season. The flowering shoots are much appreciated by camels (2). Crushed leaves are used in the Central Sahara as a febrifuge and an infusion of dried leaves for arresting vomiting (5) and for stomach-disorders (2). Leaves in decoction are considered in the western Sahara to be a specific against skin-affections of the head and leaves pounded with the bark and taken in draught in hot milk constitute a cure for fever and toothache (6). They are said to be usable like those of Cadaba farinosa Forssk. (3). The calcium content of leaves from Sudan are reported to be very high (4).The fruit is edible and is reported eaten in the northern part of the Region (2) in Mauritania, where it is known as eb nembe (Chevalier fide 3), and in Hoggar (5).The bark is used in the Kordofan and Darfur area of Sudan for purification of water (7).”

Like the Christ’s thorn, Tagart bush plantations would need to be protected against animals.

Rates of carbon fixation (where known) of the Christ’s thorn, the Tagart bush, and other pioneering plants need further study during the drafting phase for individual projects.

The proposed demonstration projects can be repeated as and when labour and water supplies become available in each integrated development project area.

08. Use of renewable biomass instead of non-renewable biomass with improved cook stoves.

AMS 1.E Small-scale Switch from non-renewable biomass for thermal applications by the user (Version 3) with an accompanying clarification on the calculation of the thermal output for applicability of small-scale limit of 45 MWth.

Integrated development projects provide for the local production of mini-briquettes made from renewable biomass wastes and residues supplemented as necessary by purpose-grown renewable crops. In the proposed application renewable bio-mass would be used for the methodology instead of manure, as has been done in the past. This application supplements application 01 above.

The production of mini-briquettes for cooking stoves from recycled waste and renewable woody and non-woody biomass within integrated development projects could fall as a new technology under methodology AMS-I-E provided it can be shown that the 35% of renewable fuels used for the mini-briquettes replaced non-renewable fuels and provided it can be shown that 100% renewable energy sources are used. Application 01 above already assumes replacement of 65% of earlier fuels shown to be non-renewable. For extra CDM funds to be made available under this application, the remaining 35% (or part of it) must also be shown to have been non-renewable. Since it is unlikely that 100% of the fuel previously used can be shown to have been non-renewable, the amount of compensation under this application may relate to anywhere between 0% and 35% of the (non-renewable) fuel previously used.

By way of example, it is assumed that all 35% of the fuel replaced under this application was non-renewable, and that all fuels previously used were therefore non-renewable. In that case, 65% of 100% is replaced through the introduction of high efficiency cook-stoves under application 01, and this application refers to the switch from non-renewable to renewable of the remaining 35% of 100% of the non-renewable biomass previously consumed.

The a href="http://www.ipcc-nggip.iges.or.jp/EFDB/find_ef_main.php">website of the Intergovernmental Panel for Climate Change (IPCC ) provides a default value for wood of 0,015 TJ [a terajoule = joule + 12 zeros] per tonne of dry mass or 66,67 tonnes of dry mass per terajoule.

Total non-renewable wood currently used in each project area is 36500 tonnes a year.

Conversion of 35 % from non-renewable to renewable energy sources through the use of mini-briquettes made from renewable biomass, the amount of non-renewable wood saved would be 12167 tonnes of wood per year.

Using a factor of 0.5 for the conversion of wood into dry mass, 12167 tons of wood =6083.5 tonnes of dry mass.

6.083 tonnes of dry mass divided by 66,67 tonnes per TJ = 91,25, say, 91 TJ.

The default factor for kerosene is 71,5 tonnes of CO2 per terajoule.

91 TJ of dry mass x kerosene conversion factor of 71,5 tonnes of CO2 per terajoule = 6524 tons of CO2.

6524 tonnes CO2 @ Euro 14 (as at 14 November 2009) = Euro 91.337

Conclusion : Euro 91.337 a year for up to 21 years would produce or Euro 1.918.077 over 21 years.

6524 tonnes of CO2 is within the limit of 15.000 tons of CO2 per year for small-scale projects.

Income for each project area is dedicated to the repayment of the initial costs of the integrated development project in question. After project repayment, ongoing income is distributed equally amongst the local populations, who are all automatically members of the Local Cooperative for the on-going management and maintenance of the project structures. Poor countries do not pay registration and issuance costs. The amount is, however, subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

For 2.500 projects covering the whole of West Africa, the total amount would be Euro 4.795.192.5000.

Note : It is unlikely that ALL biomass currently used for cooking purposes is non-renewable. The proportion of renewable biomass currently used must therefore be deducted from the above figures.

Definition of renewable biomass.

Renewable biomass was defined for the purposes of the Kyoto protocol in the Definition of renewable bio-mass Annex 18 by the Executive Board of the UNFCCC United Nations Council for Climate Change in its Report of the 23rd meeting, Bonn, par. 57, on 24 February 2006.

Biomass is “renewable” if it meets any one of five conditions :

01. The biomass comes from forests defined as such by the country in question. The area must remain a forest, be free from loss of carbon stocks and be sustainably managed.

02. The biomass is woody biomass coming from cropland and/or grasslands. The areas must remain crop and/or grasslands (or returned to forests), be free from loss of carbon stocks and be sustainably managed.

03. The biomass is non-woody biomass coming from cropland and/or grasslands. The areas must remain crop and/or grasslands (or returned to forests), be free from loss of carbon stocks and be sustainably managed.

04. The biomass is a biomass residue where there is no reduction in carbon pools. This means that if dead wood is already being systematically collected from a forest before the CDM project starts, then its use after the CDM starts is considered renewable as there is no decrease in carbon stocks there. If dead wood is not being systematically collected from a forest before the CDM project starts, dead wood biomass extracted from the forest after the CDM project starts is non-renewable, because the extracted bio-mass would result in a decrease of carbon stocks there.

05. The bio-mass is the non-fossil fraction of industrial or municipal waste.

By implication, any other biomass is non-renewable.

In the case of fire-wood for cook-stoves factors indicating that the wood is non-renewable include aspects such as variations (increases) in the time women and girls spend fetching wood, increases in the price of fire-wood, increase in the use of non-woody fuels, visible on-going reduction in the size of woodlands and forests. If any two of the factors apply, the wood is considered to be non-renewable.

09. Recycling of human waste to avoid the use of industrial fertilisers.

The chosen methodology is AMS-III-Y under 3. b) mechanical solid/liquid separation through the use of urine diversion in toilets.

Saving of fertilisers through the recycling of urine and faeces produced by 50.000 people in each integrated development area.

The average amount recycled per person per year is 500 litres of waste, being 400 litres of urine and 100 litres of faeces. This produces 5.7 kg of Nitrogen, 0.6 kg of Phosphorus, and 1.2 kg of Potassium per person per year. In principle this is enough to grow 230 kg. of cereals per person.

For 50.000 people (a project area) : 285.000 kg (285 tons) of Nitrogen ; 30.000 kg (30 tons) Phosphorus ; and 60.000 kg (60 tons) of Potassium. Enough to grow 11.500.000 kg (11.500 tons) of cereals.

There are two types of savings. One involves CO2 emissions savings from the manufacture of fertiliser currently imported into each project area. The second involves credits for avoided nitrogen oxide emissions. These are not covered under the CDM mechanism, but can be claimed in the parallel voluntary Gold Standard label.

Here is a possible calculation covering just the costs of manufacturing the fertiliser :

19.9 metric tonnes of carbon = 1 TJ.

So 1 metric tonne of carbon = 0,0502512 TJ

Nitrogen = 78,230,000 joules per kg = 78,230,000,000 joules per tonne = 0.07823 TJ/tonne

Phosphorus = 17,500,000 joules per kg = 17,500.000,000 joules per tonne = 0.0175 TJ/tonne

Potassium = 13,800,000 joules per kg = 13,800,000,000 joules per tonne = 0,0138 TJ/tonne.

Each integrated development project saves :

285 tonnes nitrogen = 4.9875 TJ

30 tonnes phosphorus = 0,525 TJ

60 tonnes potassium = 0.828 TJ

Total : 6.3405 TJ .

6.3405 TJ/ 0,0502512 TJ = 126,17609 metric tonnes of carbon equivalent.

Conversion rate Carbon to carbon dioxide equivalent 3,67

126,17609 metric tonnes of carbon = 463 tonnes CO2.

463 tonnes CO2 @ about Euro 14 per tonne (on 14^th November 2009) = Euro 6.691.

Euro 6.691 over 21 years produces Euro 140.511.

The issue of nitrogen emissions is handled in the estimation of direct nitrous oxide emission from nitrogen fertilization. CDM Executive Board, UNFCCC United Nations Council for Climate Change, Report of the 33rd meeting, Bonn, July 25-27 2007 Annex 16. The document refers to calculations for CDM afforestation and reforestation (AR) projects. As stated above, credits for avoidance of nitrogen emissions may have to be sought under the voluntary Gold Standard label.

Use of 285 tons of nitrogen assuming the volatile part is all given off as N2O the carbon dioxide equivalent given to the atmosphere as N20 would be 285 tons x (1-0.1) x 0.01 emission factor x 1.571 molecular weight x 310 global warming factor = 1249 tons CO2 equivalent put into the atmosphere by the fertiliser application.

1249 tonnes of CO2 equivalent at Euro 14 per tonne (14^th November 2009) = Euro 17.486 per year.

Over 21 years the total amount would be Euro 367.206

The total amount recovered under the CDM and the Gold Standard together would be Euro 507.717.

The amount recoverable for 2500 projects in West Africa would be Euro 507.717 x 2500 = Euro 1.269.292.500.

Income for each project area is dedicated to the repayment of the initial costs of the integrated development project in question. After project repayment, ongoing income is distributed equally amongst the local populations, who are all automatically members of the Local Cooperative for the on-going management and maintenance of the project structures. Poor countries do not pay registration and issuance costs. The amount is, however, subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

10. Methane recovery from animal waste for cooking and lighting purposes especially in pastoralist areas.

Small-scale methane recovery from animal waste for lighting purposes and electricity generation in pastoralist areas.

The new methodology AMS-III-AR (introduced 26^th November, 2010) (from 26^th November 2010) included under application 11 below applies to the adoption of LED lamps. It refers to the lighting technology itself. The use of renewable bio-mass instead of non-renewable biomass for use with improved cook stoves is covered under application 8 using methodology AMS 1.E Small-scale Switch from non-renewable biomass for thermal applications by the user (Version 3).

AMS-III-R with AMS-I-C can be used for methane recovery under this application 10. Since this application 10 partly doubles up with applications 8 and 11, double counting must be carefully avoided. CDM system does not recognise methane savings, which are 21 times “heavier” than CO2. AMS-I-A (Version 14) is based on the calculation of the CO2 saved by the new system compared with the earlier system.

The challenge is to find alternative existing uses of non-renewable energy within each integrated development area. Beneficiaries may also choose to use the gas for new energy uses, but this would not qualify for CDM funding. They may prefer to use their methane gas to replace the mini-briquettes for stoves under application 01 above. This too would, however, lead to a drainage of possible CDM resources. They could also substitute the use of methodology AMS-I-A (Version 14) under application 12 by using methane to replace non-renewable electrical, diesel- and battery-driven sources for mechanical equipment such as pumps and mills and, where applicable, pubic lighting systems. Formal requirements for AMS-III-R are simpler than those for AMS-I-A.

Since most existing energy uses are covered under other applications, it is difficult to make widely applicable hypotheses for activities under this application. The average CDM value is therefore deemed to be zero for the purposes of CDM income calculations .

introduced 26^th November, 2010), which applies to the adoption of LED lamps, appears to be the best methodology. It is coupled to energy savings inherent in the introduction of lighting technology, not to the source of energy. The highest energy savings with the greatest flexibility of use are given by the adoption of LED lights. The substantially higher initial investment cost of LED lamps is directly recovered by the reduction in the size of the alternative energy power source installed.

This methodology is applicable only to project lamps whose batteries are charged using one of the following options :

(a) Charged by renewable energy system (e.g. photovoltaic systems or mechanical systems such as wind battery chargers);

(b) Charged by a standalone distributed generation system (e.g. a diesel generator set) or a mini-grid

The technical solutions adopted will vary from one integrated development project to another.

Baseline emissions are calculated per equation (2).

BEy = DV ×GFy × DBy

Where:

BEy Baseline Emissions per project lamp in year y (tCO2e)

DV Default Emissions Factor (0.08 tCO2e per project lamp calculated using values indicated in paragraph 12)

GFy Grid Factor in year y, Equal to 1.0 when charging option

• Equal to 1.0 if the project activity is for off grid households/communities 10 (defined as no grid access or less than 12 hours grid availability per day on an annual average basis);

• Otherwise it is equal to (1- fraction of time grid is available to the target households and communities/users in the region of project activity)

DBy Dynamic Baseline Factor (change in baseline fuel, fuel use rate, and/or utilization during crediting period) in year y. Calculated as either:

Option 1: default of 1.0 in the absence of relevant information,

Option 2: value of 1.0+FFg where FFg is the documented national growth rate of kerosene fuel use in lighting from the preceding years (use the most recent available data of three or five years average (fraction)

The emissions from the LED lamps are subtracted from those caused by the kerosene lamps (or equivalent) replaced.

The Methodology defaults to 1 kerosene lamp per household, used for 3.5 hours a day, 365 days a year, with a fuel use rate of 0,025 litres per hour, and a default fuel emissions factor of 2.4 kg CO2 per litre of fuel used.

For the purposes of the calculation, the default emissions factor is taken as 0.08 tCO2 e per project lamp

0.025 litres by 3.5 hours = 0.0875 litres per lamp per day x 365 = 31,9375 litres per lamp per year.

31,975 litres of kerosene per lamp per year x 10.000 households = 319.750 litres of kerosene per project per year.

1 litre of kerosene releases 0.00257 tons of CO2.

319.750 litres x 0.00257 tonnes = 822 tons of CO2,

Assuming emissions attributed to LED lamps is 5% of that of kerosene lamps 822 tons x 95% = 780 tonnes.

Control :

The given default emissions figure for existing fuel is 2.4 kg of CO2 per litre.

319.750 litres x 2.4 kg CO2 = 767.400 kg = 767, 4 tonnes.

767,4 tonnes @ about Euro 14 (on 14^th November 2009) = Euro 10,744 per year.

Euro 10,744 per year x Euro 225,624.

12. Replacement of non-renewable electrical, diesel- and battery-driven sources for mechanical equipment such as pumps and mills and, where applicable, pubic lighting systems.

The chosen methodology AMS-I-A has already been used for applications relating to both wind and solar energy and to biomass applications for electricity generation including but not limited to palm oil and manures using stand-alone mini-grids with installed capacity less than 15MW or individual structures each with emissions reductions less than 5 tonnes of CO2e per year.

Replacement of kerosene lamps by LED lamps has been covered under application 11 above.

This application can be selectively used for the following and other purposes :

a) Solar-powered street lighting in (mostly urban) areas where some form of street lighting already exists.

b) A mini-grid to support existing lighting and cooling facilities for local commercial activities.

c) Renewable energy operation of existing diesel-driven equipment such as water pumps and mills.

It is not clear how solar-powered battery chargers for rechargeable radio and torch batteries could be included in this application as the CDM system applies only to CO2 savings, and not to non-rechargeable batteries and the environmental aspects relating to their loss in the environment.

The text of the methodology reads:

“(a) A group of households or users are supplied electricity through a standalone mini-grid powered by renewable energy generation unit(s) where the capacity of the generating units does not exceed 15 MW (i.e., the sum of installed capacities of all renewable energy generators connected to the mini-grid is less than 15 MW) e.g., a community based stand-alone off-the-grid renewable electricity systems; or

(i) A representative sample survey (90% confidence interval, ±10% error margin) of target households; or

(ii) Official statistics from the host country government agencies.”

Urban integrated development project areas are likely to have a greater use for this application than rural ones, which are usually so poorly served that there are few existing structures. It is assumed here that project areas are poorly equipped with commercial and industrial equipment. The following hypothetical examples are therefore conservative.

Integrated development project areas contain about 45 intermediate level administrative units each serving about 1.500 people, and about 250 local administrative units each typically serving about 250 people.

a) Street lighting. Suppose each local administrative units has, on an average, 2 street lights and that each light burns 0.5 litres of kerosene equivalent per day. That means that each community burns 1 litre of kerosene or equivalent per day, or 365 litres of kerosene per year. 1 litre of kerosene produces roughly 2.5 kg of CO2, so each community burns 912,5 kg of kerosene or equivalent per year, which is much lower than the 5 tonnes of CO2 per system foreseen in methodology AMS 1-A. There are about 250 local administrative units. 250 local administrative units would use 250 x 912,5 kg of kerosene or equivalent per year, being 228.125 kg of CO2, or 228,13 tonnes. 228,13 tonnes of CO2 at about Euro 14 per tonne (as at 14 November 2009) = Euro 3193,75.

b) Lighting appliances for commercial activities. Suppose each local administrative units has, on an average, five families out of 50 each using 2 lights for commercial purposes and that each light burns 0.5 litres of kerosene equivalent per day. That means that each of the five families burns 1 litre of kerosene or equivalent per day, or 365 litres of kerosene per year. So each local development unit area has 5 families each burning 365 litres per year. Each litre of kerosene produces 2.5 kg of CO2. Therefore each development unit produces 905 kg of CO2, which is much lower than the 5 tonnes of CO2 per system foreseen in methodology AMS 1-A.

There are about 250 local administrative units in each integrated development project area. Each integrated development project area would therefore use 250 x 1.825 kg of kerosene or equivalent per year, being 456.250 kg of kerosene per project area. 1 litre of kerosene produces roughly 2.5 kg of CO2, so each project areas burns the equivalent of 1.140.625 kg of CO2 or 1.141 tonnes of CO2 equivalent per year. 1.141 tonnes of CO2 at about Euro 14 per tonne (as at 14^th November 2009) = Euro 15.974 per year.

c) Cooling appliances for commercial activities. Suppose each intermediate administrative unit has, on an average, one commercial activity using a refrigerator-cooler-freezer with a consumption of 0.25 kw/hour or 6 kWh/day. There are about 45 intermediate administrative units in each integrated development project area. Each integrated development project area would therefore use 6 x 45 kWh or 270 kWh per day. 270 kWh per day x 365 = 98.550 kWh per year.

1 terajoule = about 277.778 kWh. So 98.550 kWh = about 0.35 TJ.

The default factor for diesel is about 74 tonnes of CO2 per terajoule.

Diesel equivalent consumed by refrigerators/freezers is 74 x 0.35 = about 26 tonnes of CO2.

26 tonnes of CO2 @ about Euro 14 (14th November 2009) = Euro 364 per year.

d) Replacement of diesel-driven milling and pumping equipment. Suppose each intermediate administrative unit has, on an average, one commercial activity using a diesel-driven motor with a rated power of 10 hp (about 7.5 kW) operating over 10 hours per day. 10 hours at 7.5 kW = 75 kWh.

There are about 45 intermediate administrative units in each integrated development project area. Each integrated development project area would therefore use 45 x 75 kWh or 3.375 kWh per day. 3.375 kWh per day x 365 = 1.231.875 kWh per year.

1 terajoule = about 277.778 kWh. So 1.231.875 kWh = about 4.43 TJ.

The default factor for diesel is about 74 tonnes of CO2 per terajoule.

Diesel equivalent consumed by refrigerators/freezers is 74 x 4.43 = about 327.82 tonnes of CO2.

327.82 tonnes of CO2 @ about Euro 14 (14th November 2009) = about Euro 4.590 per year.

The typical accumulative CO2 savings in each integrated development project area under application 12 might therefore be to the order of Euro 24.000 per year (totals a) +b)+c)+d)) , or Euro 506.557 over 21 years. This amount is, however, subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

Although the total is low and the expected verification costs relatively high, the amount can still cover up to 10% of the formal money costs of an integrated development project.

CO2 savings would be higher where projects are carried out in poor urban areas.

13. Local recycling and recovery of materials from solid wastes, including but not limited to plastics.

Small scale local recycling and recovery of materials from solid wastes, including but not limited to plastics, is a feature of integrated development projects. The quantities involved in any given integrated development project area may often be too small to justify an application under the CDM system. On the hand, projects in poor urban areas and in areas close to larger urban centres may wish to profit from labour intensive recycling of waste materials coming from the urban centres. Any recycling activity with a relatively high labour content may be suitable for this application.

Recovery and recycling of plastics materials is covered under methodology AMS-III-AJ. The methodology can be adapted for use with non-hazardous materials including glass, paper, metals, eventually used batteries, etc. as well as for plastics. The CO2 savings are calculated by subtracting the energy used in the recycling process from the energy used to produce equivalent new material. The products being recycled must either have been manufactured in the host country or use raw materials (resins) imported from a non-industrialised (that is, a non-annex 1) country. Materials to be recycled can be obtained in a radius of 200 km from the recycling centre, and production using the recycled materials must take place within a radius of 200 km.

It is difficult to make widely applicable hypotheses for activities under this application. The average CDM value is therefore deemed to be zero for the purposes of indicative CDM income calculations.

SECTION 09. GRAPHS AND CONCLUSIONS.

Click here to view a general graph showing annual distribution of expected gross CDM income for each individual integrated development project area .

The first lot of gross CDM income, which is attributable to the second year of activities, is Euro 542.886. This could mature for sale of CER units at the end of the third year. The second lot of gross CDM income, which is attributable to the third year of activities, is Euro 1.285.393. This could mature for sale of CER units at the end of the fourth year. The third lot of gross CDM income, which is attributable to the fourth year of activities, is Euro 1.633.500. This could mature for payment at the end of the fifth year. The fourth instalment of gross CDM income, which is attributable to the fifth year of activities, is Euro 1.601.678. This could mature for payment at the end of the sixth year. The fifth instalment of gross CDM income, which is attributable to the sixth year of activities, is Euro 1.251.678 which would mature for payment at the end of the seventh year. … and so on. Only application 02 (afforesttion/reforestation of natural reserves) and 03 (settlements, afforestation/reforestation first part) extend beyond 21 years. Application 06, Mangroves for wetlands, would extend for 30 years but is not included in the indicative baseline calculation.

Total expected net CDM income per project Euro 23.683.709.

Expected net CDM income relative to second year Euro 488.597.

Expected net CDM income relative to third year Euro 1.156.854.

Expected net CDM income relative to fourth year Euro 1.497.150

Expected net CDM income relative to fifth year Euro 1.441.510

Expected net CDM income relative to sixth year Euro 1.126.510

How rapidly the initial capital input of integrated development projects is repaid is a political issue. A regional project owner such as the UEMOA may make a call on 100% of CDM funds as they come in, or may accept for example of repayment of 50%, allowing the remaining 50% to be distributed amongst the populations in the project areas or any other combination of the two. Partial distribution of funds to the populations provide them encouragement and a great stimulus. Rapid re-entry of funds on the other hand provides revolving finance for new integrated development projects and more rapid execution of all projects included in the regional development plan in question.

The full amount of the initial project capital necessary for the execution of each integrated development project must always be paid up front.

Graphs:

Graphs showing details of the expected gross CDM income application by application for the second year of operation, the third year of operation, the fourth year of operation, the fifth year of operation, the sixth year of operation, the seventh year of operation, the eighth year of operation and the ninth year of operation. Similar graphs for other years can be supplied on request.

Graphs showing expected gross CDM income year by year for application 01. CO2 savings through the reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves (methodology AMS-II-G.(Version 2)), application 02. Demonstration project for the recovery of forest lands and natural parks and reserves using traditional species (methodology AR-AMS-0004 version 2, 11 June, 2009 ) ; application 03 Afforestation activities in settlements as defined for the distributed planting of fruit trees and nut trees and similar, ( Methodology AR-AMS-2 (version 2, 17 October 2008); application 04. Small-scale agro-forestry activities – such as distributed bamboo plantations on grasslands and croplands (Methodology AR-AMS-0001); application 05 Small-scale agro-forestry activities – distributed demonstration plantations for practical purposes for local use, including but not limited to Moringa plantations on marginal lands (Methodology AR-AMS-0004 , version 2, 11 June, 2009);application 06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species (Methodology AR AMS-003, Version 1),application 07 Demonstration afforestation and/or reforestation projects using Jatropha on lands having low inherent potential to support living biomass (Methodology AR-AMS-0005 (Version 2, 8 April 2009), application 08. Use of renewable biomass instead of non-renewable biomass with improved cook stoves (Methodology AMS 1.E Small-scale Switch from non-renewable biomass for thermal applications by the user), application 09, Recycling of human waste to avoid the use of industrial fertilisers (Methodology AMS-III-Y ); application 10 : Methane recovery from animal waste for cooking and lighting purposes especially in pastoralist areas (Methodology AMS-III-AR ); application 11. Replacement of kerosene lamps, incandescent light bulbs, and of the use of throw-away batteries by renewable energy sources (wind, solar and/or renewable bio-mass including but not limited to plant oil, gasification of biomass (Methodology AMS-III-AR); application 12. Replacement of non-renewable electrical, diesel- and battery-driven sources for mechanical equipment such as pumps and mills and, where applicable, pubic lighting systems (methodology AMS-I-A); and 13. Local recycling and recovery of materials from solid wastes, including but not limited to plastics (methodology AMS-III-AJ.)

Table 1 shows the plan of Mother PoA and sub-PoAs. For the development of West Africa, the mother PoA would be expected to have about 2500 applictions. Each of the sub-PoAs may have a single application at project level, or up to about 45 applications at intermediate development unit level, or up to 250 applications at local development unit level. Aplications 01 and 02 continue through 50 years. Application 06 continues through 30 years.

Table 1 : The two Programme of Activities (PoA) levels.