East and Southern Africa Katoomba Group
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January 22, 2010

FROM THE EDITOR

Dear Katoomba Members,
 
Happy New Year and welcome to the January 2010 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

KATOOMBA INCUBATOR PROJECT CLINIC, EASTERN AFRICA 2010‏

The East and Southern Africa Katoomba Group Ecosystem Services Incubator will conduct a  “Project Clinic” in April this year (date and venue to be confirmed). The Project Clinic provides an interface between leading experts in various aspects of carbon project development and implementers of promising project initiatives. Specific objectives of the clinic are:

o    To address the specific challenges faced by new, existing and potential carbon projects involving communities in forest management through direct interaction with experts in carbon project development.
o    To expose projects to peers in the region dealing with similar issues as well as technical resource persons and potential project investors.
o    To identify projects for potential incubator support

The Incubator provides early-stage technical and business support to local partners implementing projects with strong community and biodiversity benefits, potential for innovation, learning and policy impact.

Interested project developers/participants should send brief summaries (not more than two pages) about their projects to  snamirembe@forest-trends.org no later than March 1, 2010. In order to give meaningful in-depth diagnosis and technical advice to (potential) forest-carbon projects within the region, only 8 projects will be selected. Selected projects will be informed by March 23rd, 2010


For more information contact: Sara Namirembe,  Coordinator, East and Southern Africa Katoomba Incubator; E-mail: snamirembe@forest-trends.org    Tel  +256 701 780 024

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New PES Related News from the Region

SOUTH AFRICA PLANS TO INTRODUCE CARBON TAX IN MARCH 2010

Adopted from Reuters Online News: 13th January 2010


South Africa's National Treasury will press on with plans to introduce a new tax on vehicles designed to curb carbon dioxide emissions. The new tax, mooted last February, is part of government efforts to limit greenhouse gas emissions as well as increase tax revenues that have declined sharply as Africa's economy grappled with its first recession in 17 years, which it exited in Q3 2009.

The National Association of Automobile Manufacturers (NAAMSA) says it accepts the new tax in principle, but worry that its early timing could hinder recovery prospects for struggling automakers. Carmakers BMW, Ford, General Motors, Daimler, Nissan Motor Co. Ltd, Toyota Motor Corp. and Volkswagen all have manufacturing plants in South Africa.

  – For the full story visit

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THE MALI ACACIA SENEGAL PLANTATION CARBON PROJECT

The Mali Acacia Senegal Plantation project is reforesting around 6,000 ha of Acacia Senegal, a species endemic to the whole African Sahel, over a 6-year period (2006 – 2011) in the northern region of Nara. Acacia Senegal is superbly adapted to harsh ecological conditions and produces several environmental benefits. Besides producing gum, it allows the rehabilitation of degraded areas that have become unfit for agriculture. 


The project will build on a pilot project developed in the same type of environment in Niger, which also developed adapted technology. Out of the 6,000 ha, 3,000 ha will be developed on private land owned by Déguessi Groupe, a Malian private producer and importer/exporter of agricultural products, and the other 3,000 ha will be developed by local communities on communal land under a partnership agreement with Déguessi Groupe. Déguessi Groupe is the project developer and “carbon aggregator”, having signed sub-project agreements with local communities for the commercialization of the Emission Reductions produced on their lands. It will develop and manage cost-effective modern nurseries, contribute to farmers' training and assistance for planting trees, maintaining plantations, and Arabic gum harvesting. The project will also re-introduce agricultural activities through intercropping with groundnuts and cowpeas. The project will respond to the disappearance of Mali natural dry forests provoked by clearing way beyond regeneration capacity to meet the growing demand of firewood and cattle grazing. This deforestation has particularly affected gum-producing Acacia Senegal.


The project is expected to sequester around 300,000 tons of CO2e by 2017 and 800,000 tons of CO2e by 2035. The restoration of a tree cover will also benefit local biodiversity. Hundreds of farming families are expected to receive social benefits from the project through additional revenues generated by Arabic gum, grains and forage, combined with Credit Emission Reductions (CERs). Their sale will be coordinated by Déguessi Groupe and will provide the necessary additional income to realize the project. Déguessi Groupe will purchase Arabic gum from participating farmers and IER, and redistribute the proceeds of CERs sale to them. The project will be implemented on desert land, which makes any leakage very unlikely, and the strong benefits brought to the population, along with other specific measures to fight fires, will significantly reduce the risk of non-permanence of the plantations.


Deguessi Groupe be supported by  the International Center for Research in Agro-forestry (ICRAF) and the International Crop Research Institute for Semi-Arid Tropics (ICRISAT). The project will also work in close collaboration with the Agricultural Diversification and Competitiveness Program (ADCP) financed by the World Bank. This program aims to foster better production conditions for agricultural goods in Mali, covering all steps in the production cycle from initial R&D and the development of good practices, to commodity sales and access to domestic as well as international markets. It will support more particularly the setting up (over the first five years) of a unit dedicated to the implementation of the CDM operations plan, while financing part of the establishment of the community plantations.
The proposed project is highly replicable in the whole Sahelian belt of Sub-Saharan Africa. It is itself inspired from another similar project in Niger that is also included in the World Bank BioCarbon Fund portfolio.

  – For more on the project visit

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Other Related News

REDD PLUS GETS $3.5BN INITIAL FUNDING

Australia, France, Japan, Norway, the United Kingdom, and the United States collectively agreed in the context of an ambitious and comprehensive outcome in Copenhagen to dedicate USD3.5bn as initial public finance towards slowing, halting and eventually reversing deforestation in developing countries. In a joint statement they said “…. We collectively dedicate USD3.5 billion of fast-start climate change financing for ‘REDD+’ over the 2010 to 2012 period. We regard this as an initial investment in developing countries that put forward ambitious REDD+ plans and that achieve forest emission reductions according to their respective capabilities. We collectively commit to scaling up our finance thereafter in line with opportunities and the delivery of results. We invite other donors to join us in this effort to make early action on REDD+ a reality.”

  – For the full story visit

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WEST AFRICAN DEVELOPMENT BANK PROPOSES CARBON INITIATIVE

The West African Development Bank (BOAD) has highlighted in a new report the Bank’s plan to become a catalyst of the carbon market in West Africa, by promoting and financing Clean Development Mechanism (CDM) projects, in collaboration with the West-African Economic and Monetary Union (UEMOA), as well as with the UN Development Programme (UNDP), the UN Environment Programme (UNEP) and the World Bank.


Within the proposed Carbon Initiative, the Bank aims to: support the creation or strengthening of institutional, legal and regulatory capacities of the UEMOA States; consolidate technical capacities of development stakeholders in the region; mobilize financing for the development of CDM projects and the carbon market in the UEMOA; and develop a portfolio of national and regional projects eligible to the CDM.


Among the recommendations contained in the report, the BOAD signals its intention to obtain observer status before the UNFCCC, become an executive agency of the Global Environment Facility (GEF) as well as of other existing or future financing mechanisms under the UNFCCC, and elicit attention for the creation of a Regional Carbon Fund within the BOAD to manage financing for CDM projects.

  – For the full story visit

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KOREA-AFRICA GREEN GROWTH PARTNERSHIP

The second South Korea-Africa Forum, which convened in Seoul, Republic of Korea, from 23-25 November 2009, discussed a “Korea-Africa green growth partnership,” which entails Korea-Africa cooperation for low-carbon green growth; green new deal policy; and climate change and environment. During the meeting, Abdoulie Janneh, UN Under-Secretary General and Executive Secretary of the UN Economic Commission for Africa (UNECA), urged the Republic of Korea to support Africa in the climate change negotiations, especially with regard to adaptation. Janneh underscored the need for technology development, diffusion and transfer, as well as for reform of existing financial mechanisms for adaptation and mitigation. He specifically recommended broadening the coverage of the Clean Development Mechanism (CDM) to increase potential benefits to Africa and the Republic of Korea

  – For the full story visit

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AFRICAN CLIMATE POLICY CENTRE GETS SUPPORT FROM SWEDEN

The Government of Sweden has signed an agreement with the UN Economic Commission for Africa (UNECA), committing 60 million Swedish Kronor to support the UNECA’s African Climate Policy Centre (ACPC).The ACPC was established under the Climate Information for Development in Africa Programme (ClimDev-Africa), a joint initiative of the African Union Commission (AUC), the UNECA and the African Development Bank (AfDB). The Programme was established in response to the urgent challenge that climate variability and change pose to Africa’s sustainable development objectives, and has a mandate to develop region-wide systems for monitoring, predicting and responding to climate events.


Jens Odlander, the Swedish Ambassador to Ethiopia, said Sweden was pleased that Africa’s three regional institutions were working together on climate change and expressed the hope that ClimDev-Africa and the ACPC would help alleviate the negative effects of climate change for millions of children, women and men in the region

  – For the full story visit

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UNDP MDG CARBON FACILITY NEWSLETTER HIGHLIGHTS ACHIEVEMENTS IN CARBON FINANCING IN DEVELOPING COUNTRIES

In its first newsletter, The UN Development Programme (UNDP) MDG Carbon Facility (MDGCF) reviews the Facility’s results in four areas, namely policy change, capacity development, new market instruments and project development services. 


The newsletter highlights a few projects supported by the MDGCF. For example, the Rwanda Natural Energy Project has involved installing water treatment plants in rural Rwanda at locations centered near government-owned domicile schools, including photovoltaic driven filtration and ultraviolet disinfection systems to provide water for drinking, food preparation and personal hygiene. The Uzbekistan Gas Leak Repair Project has reduced the amount of methane leakage from compressor stations by designing and operating a system of directed leak inspection, repair and monitoring. The Ukraine Lugansk Landfill Gas and Use Project involves the installation of a landfill gas collection system, as well as extraction of fossil fuels and waste utilization. Finally, the Honduras Biogas recovery project involves the installation of a wastewater treatment system, which includes covered lagoons and a biogas recovery system.


The MDG Carbon Facility is the UNDP’s platform for activities in carbon finance, which aim to expand access to carbon financing to developing countries.

  – For more details on the projects and the facility's work visit

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Upcoming Events

ECOLOGICAL SOCIETY FOR EASTERN AFRICA 3RD CONFERENCE

MAY 19-20, 2010

NAIROBI, KENYA
2ND ANNOUNCEMENT AND CALL FOR PAPERS


ESEA will be holding its annual scientific conference, with the theme Climate Change and Natural Resource Use in Eastern Africa: Impacts, Adaptation and Mitigation, to be held in Nairobi Kenya on 19th -20th May 2010.


The sub-themes include: -


o    Impacts of climate change on natural ecosystems
o    ·Impacts of climate change on human health and environmental systems  
o    Climate change adaptation programs: best practices in Eastern Africa
o    Mitigation - Climate change mitigation policies and practices
o    Communication - Effective communication of climate change information to the public.


  Papers are due by 15th March 2010


For further information concerning the conference please address all inquiries to conference@ecsea.org

  – For more information visit

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FIRST EVER MARINE KATOOMBA MEETING; FEBRUARY 9-10, 2010

This first-ever Marine Katoomba Meeting capitalizes on ever-expanding interest in finding innovative solutions to conserve our valuable marine ecosystem services.

  – For more information and to register visit

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SECOND ALL-AFRICA CARBON FORUM

3-5 MARCH, NAIROBI, KENYA


The Second all-Africa Carbon Forum will include a conference, trade fair and capacity development to demonstrate the potential for clean development mechanism (CDM) projects in Africa

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Resources & Tools

NEW VERSION OF REDD+ SOCIAL & ENVIRONMENTAL STANDARDS. COMMENTS INVITED!

A new draft version of the REDD+ Social & Environmental Standards is available in English, French, Portuguese and comments are invited until 15 March 2010 which is the end of the second 60-day public comment period. This version of the standards derives from multi-stakeholder workshops held in Nepal, Tanzania, Ecuador and Denmark during 2009 and public comments received during the first public comment period from 2 October to 30 November 2009.   


These standards are being developed for use by governments, NGOs, financing agencies and other stakeholders to design and implement REDD+ programs that respect the rights of Indigenous Peoples and local communities and generate significant social and biodiversity co-benefits. They are being designed to work for the new global REDD+ regime expected to emerge out of ongoing climate change negotiations, that is for government-led programs implemented at national or state/provincial/regional level and for all forms of fund-based or market-based financing. 


 The standards are being developed through an inclusive process engaging governments, non-governmental organizations and other civil society organizations, Indigenous Peoples organizations, international policy and research institutions and the private sector. A Standards Committee representing a balance of interested parties and facilitated by the Climate, Community & Biodiversity Alliance (CCBA) and CARE International is overseeing the standards development. More information about the process for standards development is available at the website mentioned above.


For more information contact Joanna Durbin, Climate, Community & Biodiversity Alliance (CCBA), jdurbin@climate-standards.org and Phil Franks, CARE International, phil@ci.or.ke


  – To view or submit comments visit

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NEW VCS AFOLU METHODOLOGY POSTED FOR PUBLIC CONSULTATION

The following Agriculture, Forestry and Other Land Use methodology is being assessed under the Voluntary Carbon Standard double approval process, and as part of this process has been posted on the VCS website for a 30-day public comment period:


Improved Forest Management - Logged to Protected Forest Methodology, GreenCollar Climate Solutions:


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

  – To view or comment visit

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CBD LAUNCHES GUIDE ON BIODIVERSITY AND REDD

The Convention on Biological Diversity (CBD) and the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) launched a guide titled “Biodiversity and Livelihoods: REDD Benefits,” which provides an array of tools and examples for how synergies in the implementation of the UNFCCC and the CBD can be achieved through reducing emissions from deforestation and forest degradation in developing countries (REDD).


The guide highlights that while REDD is foremost a mitigation strategy, it can also provide significant adaptation benefits for societies, and calls for ecosystem-based adaptation measures that provide multiple benefits. It further highlights the role of indigenous and local communities, as well as community and small and medium forest enterprises, as partners and beneficiaries of REDD efforts. It suggests that forest conservation should be the management objective of REDD activities in primary forests, while sustainable forest management (SFM) and forest restoration should be applied in modified natural forests.

  – Available online at

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SASUMUA: LINKING A LANDSCAPE AND INSTITUTIONAL MOSAIC TO CLIMATE CHANGE IN KENYA


  – Available online at

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New Publications

STATE OF THE FOREST CARBON MARKETS 2009

By The Katoomba Group's Ecosystem Marketplace 


The Katoomba Group’s Ecosystem Marketplace spent the past year speaking with more than 100 market participants – 65 of whom develop forest protection and restoration projects, primarily in rainforest nations, and 37 of whom act as intermediaries. These participants accounted for 230 projects generating credits across 40 countries over the past 20 years.  The result is State of the Forest Carbon Markets 2009: Taking Root & Branching Out, which was released this month with support from the World Bank BioCarbon Fund, Biological Capital, Ecosystem Restoration Associates, and Baker McKenzie, as well as funding from the United States Agency for International Development (USAID), the David and Lucile Packard Foundation, the Norwegian Agency for Development Cooperation, the United Kingdom’s Department for International Development and the Surdna Foundation

Rapid Growth and Recent Change

Respondents documented the impact of carbon finance on more than two million hectares of forests over the past 20 years. That impact has resulted in the capture of nearly 70 million tonnes of carbon (MtCO2) in trees – although the bulk of this can be attributed to one massive project in the early 1990s that captured 47 MtCO2. 

The findings also indicate substantial shifts in growth patterns over the past three years, during which these markets have matured substantially. 

From 2007 through the first half of 2009 alone, forest carbon markets have funneled roughly $100 million into forestry conservation projects around the world, transacting 20.8 million MtCO2 in the process. In dollar terms, this period represents 67% of the market value of all forest carbon offsets, due to higher volumes and prices associated with emerging interest in the voluntary carbon markets overall, along with maturing standards and infrastructure. 

During this same period, the dominant source of forest carbon credits in the developing world appears to have shifted from Latin America to Africa, although globally North America appears to have been the top region for sourcing carbon credits in 2008, generating 42% of the volume transacted that year, followed by Africa and Latin America with 26% and 21% respectively. 

The survey results signal robust and growing belief in the ability of ecosystem markets to help reverse climate change. These findings were compiled before the December Copenhagen Accord, which explicitly stated the need to develop mechanisms that will reward sustainable land-use practices that capture carbon in trees.

Prices on the Rise

Overall, prices for forest carbon credits ranged from $0.65/ tCO2 to more than $50/ tCO2. Over time, the volume-weighted average price was $7.88/ tCO2. The compliance markets have commanded the highest prices overall, with a volume-weighted price average of $10.24/ tCO2 over time, followed by the voluntary OTC market at $8.44/ tCO2 and the CCX at $3.03/ tCO2. 

In 2008, the voluntary OTC market took the lead at $7.12/ tCO2, but was surpassed in June 2009, by the compliance market, which had reached the highest volume-weighted price average across markets and over time at $12.31/ tCO2.

OTC Still King

OTC projects made up 90% of the total number of projects, with an additional 6% under the Chicago Climate Exchange (CCX). Only 4% of projects transacting credits (including ex-ante sales) were from regulated markets; half of these were from NSW GGAS and half from Kyoto-related afforestation/reforestation projects. The total historical market value tracked through the first half of 2009 was $149.2 million, of which $137.6 million arose from the voluntary market and $11.6 million from the regulated market.  




Summary compiled by Steve Zwick, Managing Editor of the Ecosystem Marketplace. SZwick@ecosystemmarketplace.com

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NEWSLETTERS

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

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