Last month at the PCIA conference in Peru we had a chance to learn about the very interesting work GIZ (the German Development Agency) is doing on sustainable and renewable solid biomass initiatives in developing countries.
The representatives we met (Marlis, Lisa, and Verena) were kind enough to share valuable information, like this paper on Carbon Markets for Wood Energy Projects. This one pager is of value for all those who are considering incorporating carbon-finance components into their wood-for-energy projects.
Here are some of the highlights we picked out:
* In most least developed countries wood is currently used on an unsustainable basis. In order to meet the energy demand of poor households and reduce pressure on natural forests in the long term, sustainable wood fuel production on plantations is an option. Wood from sustainably managed plantations can constitute an affordable, climate-neutral and renewable source of energy.
* Emission removals (ER) in forestry suffer from the uncertainty of non-permanence. If planted forests are depleted at some point in the future, the stored carbon will re-enter the atmosphere. For this reason forestry credits are valid for a specified period only and need to be substituted in time to guarantee long lasting carbon removal. This is one of the reasons why the largest compliance market, the European Union Emission Trading Scheme (EU-ETS), does not accept forestry credits.
* The voluntary carbon market is currently more lucrative for forestry ER. As A/R (Aforestation & Reforestation) projects with strong community involvement have manifold advantages and go hand in hand with various side benefits (e.g. production of non-wood forestry projects, high community participation, employment, income, fuel security, environmental benefits etc.), they are very attractive for voluntary compensation schemes.
* A/R projects (including projects with a focus on wood fuel production) are increasingly becoming popular among credit buyers.
* The Plan Vivo System certifies forest management and agro-forestry project activities based on native or naturalised tree species. Projects under Plan Vivo have to support community-based forestation approaches that improve poor people’s livelihoods by creating additional ecosystem services: www.planvivo.org
* The Climate, Community and Biodiversity Standard (CCBS) focuses on co-benefits for communities and biodiversity attributable to land-based mitigation activities. A great many CCBS projects are A/R.
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