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

 

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

 

Edition 01: 24 January, 2011.

Edition 02 : 24 November, 2014.

 

(Français)

Quarter 3.

 

 

SECTION C : THE MODEL.

 

 

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. 5 : Kyoto Treaty : Analysis of  possibilities for finance. (Additional)

 

01. Executive summary.

02. Introduction.

03. Potential areas of application of CDM mechanisms to integrated development projects.

04. Small-scale CDM activities. 

05. Programmes of activities.

06. Selection of the CDM methodologies for the applications listed in section 03.

07. Information specific to afforestation/reforestation (AR) methodologies specifically applicable to integrated development projects.

08. Notes specific to the role of bamboo in afforestation and reforestation (AR) projects.

09. CDM funding indications for the selected applications and methodologies.

10. Graphs and conclusions.

 


 

Menu  for  : 09. CDM funding indications for the selected applications and methodologies.

 

09-01. CO2 savings through the reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves.

09-02. Demonstration project for the recovery of forest lands and natural parks and reserves using traditional species.

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

09-04. Small-scale agro-forestry activities – such as distributed bamboo plantations on grasslands and croplands.

09-05. Small-scale agro-forestry activities – distributed demonstration plantations for practical purposes for local use, including but not limited to Moringa plantations on marginal lands.

09-06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species.

09-07.  Demonstration afforestation and/or reforestation projects on lands having low inherent potential to support living biomass.

09-08. Use of renewable biomass instead of non-renewable biomass with improved cook stoves.

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

09-10. Methane recovery from animal waste for cooking and lighting purposes especially in pastoralist areas.

09-11. 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).

09-12. Replacement of non-renewable electrical, diesel- and battery-driven sources for mechanical equipment such as pumps and mills and, where applicable, pubic lighting systems.

09-13. Local recycling and recovery of materials from solid wastes, including but not limited to plastics.

 


 

09. CDM funding indications for the selected applications and methodologies.

 

09-06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species.

 

The chosen CDM methodology is AR AMS-003, Version 1 , 14 December 2007.  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 09-07.  Demonstration afforestation and/or reforestation 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 world’s most important eco-systems for bio-diversity and for fish-spawning. They serve 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.

 

For a general introduction on this subject see Hutchison, J, and others, The Role of Mangroves in Fisheries Enhancement, The Nature Conservancy avec Wetlands International, Wageningen, 2014. Section 3.2 (p. 31) deals with the restoration of mangroves. The conclusions on p. 35 include an average (sustainable) economic value assessment for mangroves of US$ 777 per hectare per year for fish harvesting, and US$ 213 per hectare per year for the harvesting of mixed species.

 

One advantage of wetlands developments is that by definition they do not compete for water with applications 02-05 and 07.

 

According to AR AMS-003, Version 1, appendix A, 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. Either of the following :

 

• 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 [human caused] 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 such as un-drained peat swamps that are degraded with respect to vegetation cover.

 

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 [man-made] annual GHG absorption (ton CO2-e/115 ha/yr), as in that case an area of 115 hectares 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 is at five year intervals. The rate of increase of carbon storage in mangroves increases over ten years when it reaches a peak. After that, the rate of increase 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.

 

Conservatively 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. A less intensive forest restoration covering a larger area may also be chosen.

 

32 tonnes of CO2 per hectare at about € 14 per tonne (14 November 2009) produces an annual gross CDM income of up to € 448 a hectare, or € 13.440 over a 30 year period. Assuming 450 hectares were planted, each mangroves project would yield an average of € 201.600 per year, or € 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 within the framework of a widely applicable general convention of the type foreseen.

 

How many of the mangroves 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. It is estimated that 26% of mangrove forests worldwide are degraded due to over-exploitation for fuelwood and timber production.  Similarly, clearing of mangroves for shrimp culture contributes 38% of global mangrove loss, with other aquaculture accounting for another 14%. In India alone, over 40% of mangrove area on the western coast has been converted to agriculture and urban development. Globally, between 20% and 35% of mangrove area has been lost since approximately 1980. These rates may be as high as or higher than rates of losses of upland tropical wet forests and current exploitation rates are expected to continue unless mangrove forests are protected as a valuable resource."

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 calculating gross CDM incomes for integrated development projects 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 gross CDM income calculations for dry lands.

 

Wetlands projects would produce an expected gross CDM income of about € 6.048.000, more than four times that of dry lands projects which produce only  € 1.430.750.  Mangroves accumulate carbon sinks over 30 years, Jatropha used for dry lands projects over just 4-5 years. Potential income from each mangrove project produces 1,6 times the initial capital investment needed for integrated development projects in non-pastoralist areas, and more than 100% of that required for projects in pastoralist areas. This means that afforestation/reforestation projects in wetlands, with particular reference to mangroves, provide good financial options for integrated development projects there when they can be applied.

 

In the case of West Africa, to take an example, assuming loss of 50% of the mangroves there, about 1.000.000 hectares of the 2.000.000 hectares need regeneration, of which 500.000 hectares in Nigeria, with particular reference to the highly polluted Niger Delta area. With 1.000.000 hectares at € 13.440 per hectare over 30 years, the gross CDM income potential for West Africa is € 13.440.000.000, of which roughly 50% in Nigeria. This means the gross CDM income potential for West- and Central Africa, excluding Nigeria and Ghana, is about € 6.720.000.000.

 


 

Menu  for  : 09. CDM funding indications for the selected applications and methodologies.

 

09-01. CO2 savings through the reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves.

09-02. Demonstration project for the recovery of forest lands and natural parks and reserves using traditional species.

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

09-04. Small-scale agro-forestry activities – such as distributed bamboo plantations on grasslands and croplands.

09-05. Small-scale agro-forestry activities – distributed demonstration plantations for practical purposes for local use, including but not limited to Moringa plantations on marginal lands.

09-06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species.

09-07.  Demonstration afforestation and/or reforestation projects on lands having low inherent potential to support living biomass.

09-08. Use of renewable biomass instead of non-renewable biomass with improved cook stoves.

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

09-10. Methane recovery from animal waste for cooking and lighting purposes especially in pastoralist areas.

09-11. 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).

09-12. Replacement of non-renewable electrical, diesel- and battery-driven sources for mechanical equipment such as pumps and mills and, where applicable, pubic lighting systems.

09-13. Local recycling and recovery of materials from solid wastes, including but not limited to plastics.

 


Block 8 : Economic aspects.

 

Sect. 5 : Kyoto Treaty : Analysis of  possibilities for finance. (Additional)

 

01. Executive summary.

02. Introduction.

03. Potential areas of application of CDM mechanisms to integrated development projects.

04. Small-scale CDM activities. 

05. Programmes of activities.

06. Selection of the CDM methodologies for the applications listed in section 03.

07. Information specific to afforestation/reforestation (AR) methodologies specifically applicable to integrated development projects.

08. Notes specific to the role of bamboo in afforestation and reforestation (AR) projects.

09. CDM funding indications for the selected applications and methodologies.

10. Graphs and conclusions.

 


 

Exam Block 8 :  [4 hours]

 


 

Consolidated exam : Section C. [6 hours].

 



 Eighth block : Section. 5 : Kyoto Treaty : Analysis of  possibilities for finance.

 Eighth block :  Economic Aspects.


Main index  for the Diploma in Integrated  Development  (Dip. Int. Dev.)

 List of key words.

 List of references.

  Course chart.

 Technical aspects.


 Courses available.

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"Money is not the key that opens the gates of the market but the bolt that bars them."

Gesell, Silvio, The Natural Economic Order, revised English edition, Peter Owen, London 1958, page 228.

 

“Poverty is created scarcity”

Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th annual NGO Conference, United Nations, New York 7th September 2005.

 


 

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