East and Southern Africa Katoomba Group
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November 23, 2009

FROM THE EDITOR

Dear Katoomba Members,
 
Greetings and welcome to the November edition of the East and Southern Africa Katoomba Group e-newsletter.  
 Our newsletter aims to keep our readers aware of the latest news and events relating to payments for ecosystem services (PES) around the world.

We welcome your feedback, comments and suggestions, including any articles that you may wish to share with our readers. Please send them by e-mail to aruhweza@forest-trends.org
 
Yours sincerely
 
Alice Ruhweza
Coordinator, East and Southern Africa Katoomba Group


 Follow us on Twitter at http://www.twitter.com/ESAKatoomba

 

TABLE OF CONTENTS

1. ESA Katoomba News

2. New PES Related News from the Region

3. Other Related News

4. Upcoming Events

5. Resources & Tools

6. New Publications

ESA Katoomba News

THE KATOOMBA GROUP ECOSYSTEM SERVICES INCUBATOR AND COMMUNITIES IN TANZANIA TEST THE GOOGLE ANDROID/ODK TO MONITOR FOREST CARBON

The Katoomba Group Ecosystems Incubator together with communities in Kilando and Songa Mbele villages in Tanzania recently tested the Google Android/ODK handheld device to monitor forest carbon. The field test is part of a new South-South partnership between Google, the Moore Foundation and the Katoomba Group that will allow local communities in Tanzania,, Uganda and indigenous Surui people in Brazil to test Google Android/ODK devices in locations that have good potential to become carbon projects.. Data from the field test is still being collected and results will be presented at COP 15. The Google Android/ODK mobile device will be introduced at the Copenhagen event as one of the key technologies that enable local communities to be more involved in the development and implementation of carbon projects. 


For more on this project contact the Coordinator, Katoomba Group Ecosystem Services Incubator in East and Southern Africa at snamirembe@forest-trends.org

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New PES Related News from the Region

EQUITABLE PAYMENTS FOR WATERSHED SERVICES PROGRAMME IN TANZANIA CLOSE TO DISBURSING PAYMENTS TO COMMUNITIES

The Equitable Payments for Watershed Services (EPWS) programme in the Uluguru Mountains aims to improve the quality of water for downstream users by compensating upstream poor farmers to engage in various land use practices to control soil erosion and conservation friendly agriculture practices. To date, more than 450 farmers have started implementing the interventions with many more farmers undergoing training to change their land use practices in the villages. Agroforestry/reforestation, fanya juu/chini and bench terraces are the key land use techniques that farmers are applying in their farmlands. All these activities are being done through formed farmers’ groups. Tree nurseries are being raised in all 4 programme villages to prepare adequate tree seedlings for next planting season, which will start in February 2010.

With the successful signing of the MoU by both buyers and sellers, the program is now ready to disburse payments. Dar es salaam Water and Sewerage Corporation (DAWASCO) and Coca Cola Kwanza Limited are some of the buyers, with DAWASCO already disbursing US$ 100,000. Payments to farmers will be actualized in the form of cash payments. The amount to be paid to each respective farmer in the community/village is defined by the size of the land and the type of farming system applied. For example, farmers employing bench terracing would get 370,000 Tshs per hectare, per year; farmers practising agroforestry will get 40,700 Tshs per hectare per year; while farmers practising A/R will get 235,000 Tshs per hectare per year. The payments are determined by the percentage of land removed from productive use in the first year. The higher the percentage, the more the compensation. Each farm has been visited identify the technology applied and measure its size. This was done in a participatory manner including farmers themselves, the programme team and GIS experts. To ensure the payment reaches and benefits a respective farmer, the village council as local authority will sign a contract with CARE Tanzania (the programme implementing agency) on behalf of community members. They will receive the funds and distribute them to farmers equitably. This first payment is expected to reach the farmers in early December 2009.

For more information, contact the Programme Manager, Dosteus Lopa; Dosteus.Lopa@co.care. org

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SOFALA COMMUNITY CARBON PROJECT IN MOZAMBIQUE BEING VALIDATED FOR CCBA STANDARDS

The Sofala Community Carbon Project in Mozambique is developing sustainable land use and rural development activities in communities within the Gorongosa National Park buffer zone in Sofala State, central Mozambique, to improve rural livelihoods, engage in habitat restoration, forest management and conservation of biodiversity and generate verified emission reductions (VERs). The project works with a large number of rural smallholders (i.e. farmers or producers), and promote the adoption of sustainable land use management. The individual smallholders can choose to adopt mitigation activities from a menu of different land use systems (seven agroforestry and one forestry system). For each of these systems, Technical Specifications have been elaborated, which summarize all relevant information (i.e. establishment, management, site requirements, carbon sequestration potential, etc.). For each system that a producer decides to adopt, a contract is established between him or her and the project developer. The latter is providing guidance how to adopt the system and is monitoring the implementation, which is the basis for carbon payments. There are currently 1,023 producers who have signed 2858 contracts with the project developer.  The total area amounts to 9,771 ha. The project is a flag-ship Plan Vivo project, having operated under the Plan Vivo Standard since the research trial started in 2002, and will continue working according to this approach.

Project financing depends on carbon sales to guarantee its maintenance, which is carried out by the project developer Associaįão Envirotrade Carbon Livelihoods. In order to prove its additional community and biodiversity benefits, the project now intends to validate its climate benefits according to the CCB Standard. From 2002-2009 the project produced a total of 476,210 tCO2e VER that are sold ex ante. Of these, a total of 168,740 tCO2e have already been sold. The balance of 307,469 tCO2e, which are held on stock by the project developer, and all new VERs generated after the baseline was established in January 2007 are subject to the CCBA validation.

  – For more on the project and to submit comments visit

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Other Related News

UNEP AND STANDARD BANK ANNOUNCE THE LAUNCH OF THE AFRICA CARBON ASSET DEVELOPMENT FACILITY

The UN Environment Programme (UNEP) and Standard Bank announced the launch of The Africa Carbon Asset Development (ACAD) Facility at the UNEP Finance Initiative Global Roundtable held in Cape Town, South Africa in October 2009. The ACAD Facility is a public-private partnership between UNEP and African banks that aims to stimulate the growth of Africa’s carbon market through investor outreach and seed capital. The innovative initiative is supported by the German Government’s International Climate Initiative. ACAD will offer three separate and complementary support lines: transaction cost sharing; technical assistance to project developers; and outreach and training for financial institutions.


Overall project funding (incl. BMU grant): € 1,084,000

Duration: 07/2009 to 12/2010

  – For more on the facility please visit

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CLIMATE INVESTMENT FUNDS TO CHANNEL US$1.1 BILLION FOR CLIMATE CHANGE IN AFRICA

African efforts to invest in clean energy and prepare for the devastating consequences of climate change have received a boost with six countries set to receive $1.1 billion in new financing for climate action.  From solar water heaters to wind power development and development policy planning, a range of new, scalable investments were given the green light at Trustee meetings of the Climate Investment Funds (CIF) in Washington. The Climate Investment Funds (CIF) will invest US$1.1 billion to integrate climate risk and resilience into development planning, achieve renewable energy goals, and pursue low carbon growth in Africa. Mozambique, Niger and Zambia will receive US$50-70 million each to integrate climate risk and resilience into their core development planning. South Africa will receive US$500 million from the Clean Technology Fund (CTF) to support the generation of 4% of the country’s electricity needs from renewable energy by 2013, improving energy efficiency by 12% by 2015 and providing one million households with solar water heating over the next five years. Morocco will receive US$150 million from the CTF to help establish a funding mechanism to enhance energy security and pursue low-carbon growth. Egypt will use the US$300 million from the CTF to support relevant sector development policies and strategies, such as the Power Sector Strategy and Greater Cairo Urban Transport Strategy. In particular, the financing, endorsed by the CTF Trust Fund Committee earlier this year, will be used to develop wind power and low carbon urban transport systems.
 
The Climate Investment Funds are a unique pair of financing instruments designed to test what can be achieved to initiate transformational change towards low-carbon and climate-resilient development through scaled-up financing channeled through the Multilateral Development Banks.  Agreed in 2008, donor countries have pledged over US$6 billion to the CIF, which is implemented jointly by the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, International Finance Corporation, and World Bank..

  – For more information visit

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THE UNITED STATES GIVES US$ 3 MILLION TO SAVE ONE OF EAST AFRICA’S MOST PRIZED ECOSYSTEMS, THE MARA RIVER BASIN, WHICH SPANS KENYA AND TANZANIA

The $3 million three-year program financed by the United States Agency for International Development in partnership with the East African Community, a regional intergovernmental organization linking Kenya, Uganda, Tanzania, Rwanda and Burundi, aims to restore and protect the Mara River basin’s rich biodiversity — a key component of the tourism industry on which several countries in the region depends. Central to the survival of the area is the flow of the Mara River, with headwaters in the Mau forest, an area facing extreme environmental issues from drought, deforestation and civil conflict.


The Mara River basin spans both the Serengeti National Park and the Masai Mara game reserve – home to many of East Africa’s rare and exotic wildlife species.Tourism accounts for 10 percent of gross domestic product in Kenya, and 16 percent in Tanzania. Kenya’s tourism industry, in particular, is struggling to recover from the events of 2008 — including political instability arising from a disputed presidential election, which led to one of the worst declines in the nation’s tourism sector last year. Funds will be channeled through the Lake Victoria Basin Commission, an E.A.C. establishment focusing on economic growth and sustainable development in the region.

  – For more on this story visit

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Upcoming Events

SECOND ALL-AFRICA CARBON FORUM, NAIROBI, KENYA; 3–5 MARCH 2010

In an effort to build on growing interest in the Kyoto Protocol’s clean development mechanism (CDM) in Africa, partner UN agencies and the International Emissions Trading Association (IETA) have announced they will organize a second all-Africa Carbon Forum, at the United Nations Gigiri complex in Nairobi, Kenya, on 3–5 March 2010. The meeting comes on the heals of growing potential for carbon market projects in the region including the 7,000 MW-potential of geothermal whose development is now expanding up the Great Rift Valley to the emergence of big wind farms and the vast latent potential of solar.”

  – For more information visit

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Resources & Tools

NEW VCS METHODOLOGIES FOR PUBLIC COMMENT

The following methodologies are being assessed under the Voluntary Carbon Standard double approval process, and as part of this process have been posted on the VCS website for a 30-day public comment period:

o    New Cogeneration Facilities Supplying Less Carbon Intensive Electricity to Grid and Steam and/or Hot Water to one or more Grid Customers, Camco Global:  http://www.v-c-s.org/methodology_ncfslcie.html

o    Improved Forest Management Through Avoidance of Re-logging and Rehabilitation of Logged Over Forest, Face the Future: http://www.v-c-s.org/methodology_ifmtarrlof.html

Comments on the methodologies are invited and should be emailed to secretariat@v-c-s.org by the date indicated on the relevant link above. When providing comments, respondents must also provide their name, organisation/institution, country and email address.

  – The full list of methodology elements available for public comment is available at

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KATOOMBA GROUP'S PES/REDD CONTRACT RESOURCES

The Katoomba Group has a new webpage that provides contractual models, tools, and guidance for drafting contracts for PES and REDD transactions. This is a collaborative effort between the Katoomba Group and CARE-Africa. At the moment, this site houses draft contracts for water, carbon, and biodiversity; a REDD model contract is being developed and will be put up in the coming month. We are hoping that this site can serve as a one-stop shop for project developers and others interested in the legal aspects of PES transactions. If you have or come across additional resources that are relevant, please let us know so that they may be added to the site.

  – To view this resource visit

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RAMSAR CALLS FOR “WET CARBON” PROJECT PROPOSALS

The Secretariat of the Ramsar Convention on Wetlands, together with the Danone Groupe and IUCN, has called for “wet carbon” project proposals, or projects with wetland, community and climate impacts. 
The Danone Fund for Nature (DFN) – a partnership initiative of the Danone Group, IUCN and Ramsar – aims to preserve and restore wetland ecosystems that are crucial to the carbon cycle. DFN-eligible projects must have, once implemented, the potential to generate certified emission reductions or carbon credits that the Danone Group can use for the purposes of achieving its voluntary carbon neutrality targets

  – For more information visit

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New Publications

SUCCESS STORIES AND DRIVERS OF CDM PROJECT DEVELOPMENT IN SUB-SAHARAN AFRICA”

This report is based around Clean Development Mechanism (CDM) case studies in sub-Saharan African countries. Each case study includes a country assessment, project description and analysis of lessons learned.

  – Available online at

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FAO RELEASES INFORMATION NOTE ON FOREST MANAGEMENT AND REDD

The UN Food and Agriculture Organization (FAO) has released an information note clarifying terminology used in the climate negotiations on reducing emissions from deforestation and forest degradation in developing countries (REDD). The note states that the lack of a common understanding of the terms “sustainable management of forests (SMF)” and “sustainable forest management (SFM)” is confusing the debate on the eligibility of activities for incentives under a REDD+ instrument (REDD+ referring to REDD, plus the role of conservation, SMF and enhancement of forest carbon stocks).
The note clarifies that SFM, according to internationally agreed language, is a dynamic and evolving concept that aims to maintain and enhance the economic, social and environmental value of all types of forests, for the benefit of future generations. In the Bali Action Plan, SMF refers to the application of forest management practices for the primary purpose of sustaining constant levels of carbon stocks over time, but the FAO note states that implicit in the term SMF is that other values of the forest should not be disregarded. The note adds that in many places in the negotiation text, “SFM” is used in a way that is inconsistent with internationally accepted language describing SFM.

  – For more information visit

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FIRST EVER STATE OF BIODIVERSITY MARKETS REPORT

The Katoomba Group’s Ecosystem Market Place is working on the first-ever "State of Biodiversity Markets" report to be launched this January.  The 2010 report will cover biodiversity offsets and compensation programs across the globe, specifically providing fundamental and reliable information on policy, science, and transactions. In regions of high market activity the report will present analysis of volume, pricing, and trends, while in areas of early adoption the report will discuss policy development, strategy, and regional interest.

  – If you are interested in sponsoring the report visit

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STERN REVIEW OF BIODIVERSITY CALLS FOR MORE ECOSYSTEM MARKETS

Policy-makers should expand payments for ecosystem services and harness the power of markets to help protect the planet’s biodiversity, according to a landmark study from the Economics of Ecosystems and Biodiversity (TEEB) initiative – which aims to emulate the success of the 2006 Stern Review on the Economics of Climate Change in applying economics to environmental policy-making. The report, which describes itself as “a compendium of practice, a synthesis of insights and a source of ideas for ways forward”, cites a number of examples where investments in protecting ecosystems have generated substantial financial returns. For example, a $1 million investment in planting and protecting 12,000 hectares of mangroves in Vietnam saved $7 million/year in dyke maintenance. Conversely, investments to convert natural habitats for human use often fail to factor in wider costs. While shrimp farms on cleared mangroves in south Thailand can generate $1,220 per hectare for five years, losses to local communities in terms of foregone forest products, fisheries and coastal protection can total $12,000/hectare, while rehabilitation costs an additional $9,000. 
The report is one of five due over the next 12 months from TEEB, which was launched at a G8+5 meeting in Germany in 2007. The initiative is led by Pavan Sukdhev of Deutsche Bank, hosted by the UN Environment Programme, and funded by the European Commission and several European governments. This first report – aimed at policy-makers – provides a 10-point plan to encourage “more ecosystem-savvy economies”.  
These include “rewarding benefits through payments and markets”, and the report cites local markets, such as for water, or global markets, such as 'REDD-plus' proposals, for rewarding the reduction of emissions from deforestation and degradation. It also calls for the removal of “environmentally harmful subsidies”, including “almost $1 trillion” across agriculture, fisheries, energy, transport and other sectors.  Subsequent reports, due mid-2010, will be aimed at local policy-makers, business and individuals, with the final findings of the complete TEEB study to be presented in October 2010 at the Convention on Biological Diversity in Nagoya, Japan.

  – Available online at

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NEWSLETTERS

We invite you to look at the Katoomba Group’s other newsletters.

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