East and Southern Africa Katoomba Group
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September 3, 2008

FROM THE EDITOR

Dear Katoomba Members,

Welcome to the September 2008 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 markets and payments for ecosystem services (PES) in the East and Southern Africa region and 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

 

TABLE OF CONTENTS

1. ESA Katoomba News

2. New PES Related News from the Region

3. News from Across the Ocean

4. Other Related News

5. Upcoming Events

6. Resources & Tools

7. New Publications

ESA Katoomba News

EAST AND SOUTHERN AFRICA KATOOMBA GROUP REGIONAL MEETING TO TAKE PLACE IN TANZANIA

On September 16th 2008, over 200  actors interested in markets and payments for ecosystem services  (PES), including potential buyers, sellers, and intermediaries from Africa  and the rest of the world will meet in Tanzania at the 2008 East and Southern Africa Katoomba Group meeting. This year’s  Africa Katoomba conference will explore pathways forward for Reduced Emissions  from Deforestation and Degradation   (REDD), as well as markets and payments for watershed services (PWS).  The meeting will also offer hands-on capacity building combined with  strategy discussions about scaling PES up in the region.


The meeting offers a  unique opportunity to further develop: 

  1. REDD readiness strategies including discussions  around stakeholder engagement, pilot demonstration sites, capacity building /  training needs, and research agendas (to consider potential socio-economic  impacts and other issues); and
  2.  
  3. Payment for Watershed Services schemes in  Tanzania as well as throughout the region, by exploring current projects and  experience from around the world where PWS agreements are operational.

To  inform the discussions, the East and Southern Africa Katoomba Group will present  the results from its 2008 regional PES assessment. This assessment is one  component of a longer process that aims to chart a course for expanding the  number and reach of PES projects throughout East and Southern Africa that will  contribute both to conservation and rural economic development.

  – For more information go to the meeting website
  – or contact Alice Ruhweza

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GLOBAL KATOOMBA MEETING, WASHINGTON, DC JUNE 9-10, 2008

The Global Katoomba  Group meeting; Developing an  Infrastructure Fund for the Planet was held in Washington, DC on June 9-10,  2008. The meeting explored how ecosystem service payments and markets in  carbon, water and biodiversity are quickly becoming a key solution to the  urgent environmental problems of climate change, fresh water pollution,  biodiversity loss, soil erosion, and destruction of our coastal and marine  systems.


Moderated sessions  among policy makers, major financial institutions, business leaders, the  environmental community and indigenous groups from within the region and around  the world discussed the current state of ecosystem markets and their many  challenges, and pointed to some creative solutions. These discussions, in  addition to breakout sessions, shed some light on bridging the gap between  large-scale investment interest and local capacity for projects, the right balance  between the marketplace and regulation, the role for land conversion and the  ecosystem services in relation to escalating energy and food demand, and the  gap between the beneficiaries of these services (often affluent urban dwellers  and businesses) and the low-income rural producers.


The final panel  session explored how to develop an infrastructure fund for the planet both  metaphorically and concretely. How much investment will it take to protect the  planet's natural infrastructure - our forests, our coral reefs, sea grasses and  mangroves, our rivers and wetlands, our biological diversity? The nascent area  of environmental investment has enormous scope, demonstrated by the 65 billion  dollar, three-year young carbon market. But today these ecosystem services are  dwarfed by capital flows into infrastructure and development, agribusiness and  energy projects, all drawing down this natural capital. What are the emerging  opportunities and pathways to channel much-needed investment into our natural  infrastructure? How do we measure the risk of the low-income communities that  will suffer disproportionately from the impacts of climate change? How do we  measure the long-term profits of a healthier planet to society?

This meeting was  Katoomba's first major public event in Washington, DC. Katoomba's goal is to  create an ongoing effort to stimulate and nurture ecosystem market development,  and to ensure that capacity is built so these new markets deliver real  conservation outcomes and benefits to local communities and developing  countries.

  – For additional information, including presentations by speakers, please visit the http://www.katoombagroup.org/~katoomba/event_details.php?id=20
  – A private workshop on water issues and designing alternative water quality trading mechanisms followed the global meeting. Presentations from this forum can be found at http://www.katoombagroup.org/~katoomba/event_details.php?id=20
  – The online water market discussion forum can be viewed at http://www.katoombagroup.org/water/

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New PES Related News from the Region

KENYA ELECTRICITY GENERATING COMPANY S NINE CDM PROJECTS EXPECTED TO RAISE US$ 5 MILLION A YEAR

Africa's electricity producers can raise additional  funds for much-needed investment by developing clean energy that allows them to  sell emission credits, according to Eddie Njoroge, head of the Union of  Producers, Transporters and Distributors of Electric Power in Africa, (also Managing Director of Kenya Electricity  Generating Company). Mr. Njoroge told Reuters this was one of the options  open to utilities that have to make the necessary investments to meet rising  demand.


"There is a realisation that clean energy is  the way forward and if you have got clean projects, there is no reason why you  cannot claim some credits," he said at a union meeting in Kenya.


"We need to have innovative ways of financing  the projects. I think we need to look at listing infrastructure bonds, export  credit agencies and leveraging on our balance sheets."


Njoroge said firms like KenGen were turning  towards clean energy to raise funds. KenGen, which produces 80 percent of east  Africa's biggest economy's electricity needs, has nine clean development  mechanism projects which it hopes will raise $5 million a year.


"The projects are all in the process of  being assessed by the executive board of the Kyoto protocol," said  Njoroge, adding that modes of generating clean energy are cheaper as they do  not require diesel power like thermal generation.


Africa needs to spend an estimated $560  billion by 2030 to generate an additional 260,000 megawatts (MW) of power,  experts say.  Njoroge said African firms have no choice but  to find ways of raising the required funds to invest in the projects that are  vital to the attainment of economic growth targets.


"The amount required is huge, but what is  the option? If we don't have that money, Africa will not develop."

  – For more on this story, click here.

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AFRICA PRIVATE SECTOR STARTS TO TAKE ACTION ON CLIMATE CHANGE

Source: Reuters: 14  Aug 2008; By Daniel Wallis and Duncan Miriri


With global warming expected to hit Africa hard,  some companies in the "forgotten continent" are taking action  themselves to fight climate change.


"The environment is not being taken very  seriously in most of the emerging markets, because we haven't started feeling  the pressure yet," Adan Mohamed, chief executive of Barclays Bank Kenya,  told Reuters.


"But it has got to be addressed and it is up to  us corporates to lead that."


Poverty in Africa, where nearly three quarters of  people rely on agriculture, means it is the part of the world least able to  adapt to the severe weather changes expected to be triggered by global warming,  experts say. Tens of millions face water and food shortages, they say, as well  as impacts ranging for disease to rising seas.


Kenyan firms including national flag carrier  Kenya Airways, brewer East African Breweries and others are now actively  studying ways to "green" their operations to help lessen the blow.  Kenya Airways plants thousands of seedlings on hills under it flight paths, and  in Nairobi, diners can eat in the leafy garden of Azalea, a carbon-free  restaurant – http://www.carbonzerofederation.com/company/362/AzaleaRestaurant


Even a popular Nairobi radio station, Capital FM,  has got in on the trend, raising public awareness by paying $2,000 to an  offsetting company to become a carbon free enterprise.


It all points to changing attitudes towards  environmental protection in some of the world's poorest counties.


South Africa, the continent's largest economy, now  has a handful of CDM projects. Sasol, the world's biggest maker of fuel from  coal, is pioneering a plan to sell carbon credits by converting a greenhouse  gas into nitrogen and oxygen, also earning it income. Based at two plants in  South Africa, the project will convert nitrous oxide and is aimed at cutting  emissions equivalent to about 1 million tonnes of carbon dioxide a year. One  tonne of nitrous oxide has the greenhouse gas impact of 310 tonnes of carbon  dioxide, the main gas blamed for warming.


Some 90 percent of South Africa's electricity is  produced from coal-fired plants. But carbon capture and storage (CCS) equipment  is now mandatory for all new power stations. No power plant yet operates  anywhere in the world with CCS equipment attached, and only a handful of  countries including the United States, Britain, Canada and Norway, have pledged  public money to test the technology on a commercial scale.


But there is still a long way to go. Many nations  are still focused on the challenges of developing basic energy infrastructure  to eliminate the need to run costly generators. The emergence of firms offering  conscience-salving carbon offsets seems a long way off.


Desire Kouadio N'Goran, an official at Ivory Coast's  Environment Ministry, said his government was encouraging the use of solar  energy and more efficient stoves, as well as public transport to cut vehicle  emissions.


But Mohamed, the Barclays Kenya chief executive,  said times were changing, and that African business had to plan long term. He  said his bank only lent to environmentally sustainable projects, but declined  to give details.


"People are trading carbon units  globally," he said. "There's no reason that can't cross over to  emerging markets."


Even as Africa prepares to take advantage of this opportunity, there are  other challenges within the system itself. Data from  Point Carbon database shows, Developers of hydro projects hoping to get carbon credits under the clean  development mechanism (CDM) have to wait a month and a half longer for projects  to get registered compared to the average waiting times.

  – Read the full story at Rueters
  – Read more at PointCarbon

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GHANA HOSTS UNITED NATIONS CLIMATE TALKS

Source: Reuters News ; 25 August 2008, By Alister Doyle,


The United Nations climate talks are taking place in Accra, Ghana. The talks are focusing largely on ways to encourage tropical developing nations to slow the rate of deforestation and debating whether industries such as steel, aluminium or cement should have international benchmarks for efficiency.


The Aug. 21-27 talks are also defining the building blocks of a new U.N. global warming pact meant to be agreed by the end of 2009. The Accra meeting is the third session this year under a plan to agree a broad new climate treaty by the end of 2009 to succeed the Kyoto Protocol, which sets greenhouse gas targets for just 37 developed nations.


Accra is not meant to end with any firm agreements.


The talks are said to be making progress.


"The chances that a new U.N. scheme to slow deforestation will go ahead, in my mind, are much higher," Machado told Reuters. He said that there was an "overwhelming consensus" on the importance of the project.


Cash to slow deforestation is widely seen as an incentive to get poor nations to start slowing their rising emissions of greenhouse gases, mainly from burning fossil fuels.


Emily Brickell, forest campaigner with the WWF environmental group, said it might cost between $20 to $30 billion a year to set up a system to safeguard tropical forests, perhaps using a mixture of carbon markets or donor funds.


The talks are also seeking to bridge differences over whether to impose sectoral targets for industries, an idea championed this year by Japan.


Some developing nations, smarting from the collapse of world trade talks last month, fear such benchmarks could be a backdoor way to impose trade barriers on their less efficient producers of metals or cement.


But Japan clearly stated during the talks that it did not favour imposing common international standards. "What I saw and heard in our debates on sectoral actions and approaches was a very fruitful debate," Machado said. "It clarified the issue."


  – For more on the talks see http://www.reutersinteractive.com/Carbon/104768

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ONE OF THE MOST SUCCESSFUL USAID SUPORTED CBNRM PROGRAMS IN NAMIBIA COMES TO AN END

The Conservancy movement in Namibia  has its origins in the CBNRM programs of the 1980’s, when local communities saw  the need to preserve and sustainably manage the fast dwindling wildlife in Northwest Namibia. From the humble beginnings of the  Community Game Guard system led by local chiefs and NGO’s, it blossomed into  the mass communal conservancy wave of today, spurred on by international  assistance and the growth of tourism.   Critically, the government of Namibia (GON) created the enabling  environment for this movement to flourish into a national rural development  program by approving in 1996 the Nature Conservation Amendment Act.  The amendment of the 1975 Act meant that  communal villagers now had the same rights as freehold farmers to use, manage  and benefit from wildlife and tourism.   This encouraged the creation of partnerships between rural communities,  NGOs, the private sector and the Government.


Thus from the initial 4 communal conservancies gazetted in 1998, there  were 29 by 2003 (23 percent of communal land), and 50 as of September  2007.  In addition, the notable increase  in areas under conservation and natural resource management, as well wildlife  resources, reflects an important success of the conservancy movement.  However, as the conservancies’ wealth has  increased, so have the challenges to manage it.   Some are already self-sustaining, but others still require technical and  financial support before they can become sustainably independent.


USAID invested in Namibia’ CBNRM program through the Living in a Finite Environment (LIFE) Project.  In 1993, USAID awarded the World Wildlife  Fund (WWF) a 5-year cooperative agreement worth USD 13.7 million to implement  LIFE in collaboration with the MET.  The  latter two added about USD 3 million of matching funds, for a project total of  USD 16.8 million.  Due to LIFE’s success,  it was extended to LIFE 2 (USD 15 million) and finally LIFE Plus (USD 11  million) through June 2008, for a total of 15 years and roughly USD 40 million.  The Government of Namibia (GON) and donor  partners matched this amount for the duration of the project.


The Namibian CBNRM policy went further than any other Southern Africa  country in giving rights over wildlife and tourism directly to  communities.  That played a significant  part in the popularity and success of the program.  The road ahead will be interesting as the  CBNRM program seeks other sources of funding.   It will sure be a test of the sustainability of a number of  conservancies.

  – For the full report visit http://pdf.usaid.gov/pdf_docs/PDACD872.pdf

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News from Across the Ocean

CHILE TAPS VOLUNTARY MARKET FOR ENERGY EFFICIENCY PROJECT

Source: Point Carbon.com


Amid a domestic energy crunch, Chile will tap the voluntary market  instead of the UN's clean development mechanism (CDM) to generate revenue from  carbon credit sales from an energy efficiency project. Sources close to the  planned auction of credits, set to take place in September, said approximately  40,000 tonnes a year would be offered over a six-year period for the project to  replace 1.5 million incandescent light bulbs in low-income households with  energy-efficient compact fluorescent lamps (CFLs).


The Chilean government initially sought last year to register the project  under the CDM, expecting to earn $1.4 million from the sale of certified  emission reductions (CERs). But with oil prices soaring and natural gas  supplies dwindling, Chile opted for a faster, simpler alternative in the  voluntary market instead, said Andres Romero, director of Chile's Country  Programme for Energy Efficiency (PPEE, after its Spanish acronym), which is  organising the light bulb swap.


Chile imports virtually all its petroleum and natural gas and has been  badly hit in recent months by soaring crude oil prices and severe cuts in the  amount of natural gas provided by neighbouring Argentina, its only supplier.


"The CDM required compliance with conditions that, due to the energy  crisis that hit Chile in early 2008, were not viable," Romero told Point  Carbon.


The main obstacle for accessing the Kyoto mechanism was that it required  installing special metres in participating homes and taking readings before the  bulb swap began, then compare them with post-change readings in order to get a  precise estimate of credits accrued. The more flexible voluntary market allows  the swap to begin before measuring devices were installed. Romero said at this  point it is impossible to determine how much money the auction will generate or  speculate whether it will be more or less than the original $1.4 million sought  under the United Nations Framework Convention on Climate Change system.


"We will soon begin the bid process and it wouldn't be proper to  discuss our revenue expectations before it concludes," Romero said.


A source at the Washington-based Inter-American Development Bank (IDB),  which is helping Chile develop the bid, said credits, called voluntary emission  reductions (VERs), "can go anywhere from $3 to $30." The winning  bidder will be the one offering to pay the PPEE the highest guaranteed price  per tonne at the September auction. It will also be required to disburse up  front a non-returnable fee of $200,000, the IDB official said.


Romero said the PPEE and the IDB "took pains to implement a  high-quality project, so we're confident we will get the best offers" and  attract all major market players.


There is no single standard in the fast-growing voluntary market to  measure and verify emissions reductions, and bidders will be allowed to make  their own decisions on that point. The IDB official said the prospectus  "requires that one of a handful of well-recognised standards be  picked."


Since the swap was launched in March, the PPEE has handed out 650,000 CFLs,  which represent total monthly savings of 5 GWh, or the equivalent of the energy  consumption of nearly 40,000 households per month. The cost of handing out free  of charge 1.5 million CFLs to 750,000 households and dispose of an equal amount  of incandescent bulbs has been estimated at $5 million.


After the program is completed, the PPEE expects a total 138 GWh a year  will be saved, equivalent to annual savings of $34.4 million.


CFLs are rarely used in Chile, where according to the latest available  figures, for 2004, only 3 per cent of all imported electric bulbs were of the  compact, energy efficient kind.

  – Read the article in Point Carbon

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THE DOW CHEMICAL COMPANY SUPPORTS THE NATURE CONSERVANCY TO PRESERVE AND RESTORE BRAZIL'S ATLANTIC FOREST

Source: CSRwire.com


The Dow Chemical Company has pledged USD $1.5 Million through its charitable foundation to The Nature Conservancy  for the reforestation of the highly degraded Brazil Atlantic Frest whose  freshwater services are critical to the health and well-being of millions of people in Brazil.

The Conservancy is partnering with the Sao Paulo State Water Supply  (SABESP), the Environmental Agency of Sao Paulo (SMA-SP), the Piracia  Municipality, and various local partners to restore 865 acres surrounding the  Cachoeira reservoir, one of six reservoirs of the Cantareira Water System. The  System, which is the primary source of water for nearly nine million people in  São Paulo metropolitan area, is part of the Piracicaba-Capivari-Jundiai (PCJ),  a major watershed in Brazil. Goals of the reforestation project include  sequestering carbon to mitigate climate change, and ultimately selling  certified carbon credits to support ongoing reforestation in the Atlantic  Forest. The ultimate goal is to join efforts to reforest all the degraded  riparian areas and protect the existent forest remnants of the Cantareira  system.


More than 80 native species will be planted from October to March from  2008 through 2011, involving local communities through reforestation activities  that are expected to also generate alternative sources of income for them. This  initiative is part of the Plant a Billion Trees Campaign, launched this year by  The Nature Conservancy, to accomplish an ambitious plan to protect and restore  30 million acres of the forest by 2015, with a wide range of partners.


Located in Brazil, Paraguay and Argentina, the Atlantic Forest  encompasses Latin America's largest population centers, including Sao Paulo and  Rio de Janeiro. After years of deforestation to accommodate rapid development,  only a fragmented seven percent of the original Atlantic Forest remains today  in well preserved conditions, making it one of the most endangered ecosystems  on Earth. Yet it harbors one of the greatest repositories of biodiversity on  the planet, with more than 20,000 known species of plants alone. According to  the New York Botanical Garden, 458 species of trees were identified on a single  hectare (about 2.5 acres), in Brazil's northeast coast, which are more tree  species than are found on the entire U.S. eastern seaboard. The uniqueness of  the area is reflected in high endemism rates across the board for flora and  fauna. Half of the Atlantic Forest tree species and three-quarters of its other  plants are found nowhere else on Earth. In addition, the Atlantic Forest is the  source of drinking water for 70 percent of Brazil's population - more than 130  million people. The most acute risk to the survival of the Atlantic Forest's  biodiversity is the very fragmented state of forest remnants and their  ecological isolation from one another.


The Cantareira System, located in the headwaters of the PCJ watershed, is  one of the largest water supply systems in the world. It produces 33,000 liters-of-water  per second that flow from a 563,400 acre area distributed across 12 Brazilian  municipalities. Loss of forest cover across the Atlantic Forest has contributed  to erosion, the presence of large amounts of suspended sediments and pollutants  in rivers and streams from fertilizer, pesticides and other contaminants.

  – For more on this story, see CSRWire

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Other Related News

FOURTEEN DEVELOPING COUNTRIES TO BENEFIT FROM FOREST CARBON PARTNERSHIP FACILITY

Fourteen countries have been selected as the first developing  country members of an innovative partnership and international financing  mechanism to combat tropical deforestation and climate change. The 14  developing countries include six in Africa (the Democratic Republic of Congo,  Gabon, Ghana, Kenya, Liberia, Madagascar); five in Latin America (Bolivia,  Costa Rica, Guyana, Mexico, Panama); and three in Asia (Nepal, Lao PDR, and  Vietnam).  They will receive initial  funding from the Forest Carbon Partnership Facility (FCPF), an innovative  approach to financing efforts to combat climate change.


The FCPF aims to reduce deforestation and forest  degradation by compensating developing countries for greenhouse gas emission  reductions.  The partnership, approved by  the World Bank Board of Executive Directors on September 25, 2007, became  functionally operational on June 25, 2008.   The 14 tropical and sub-tropical countries will receive grant support as  they build their capacity for REDD and tap into future systems of positive  incentives for REDD. The grant money being provided to the first 14 developing  countries in the FCPF will help them to prepare for future systems of positive  incentives for REDD, in particular by establishing emissions reference levels,  adopting REDD strategies, and designing monitoring systems.  Developing countries have expressed a strong  interest in participating in the FCPF and it is expected that more countries  will receive support in the coming months.


Nine industrialized countries will also participate in  the partnership .These are Australia,  Finland, France (the French Development Agency), Japan, Norway,  Spain, Switzerland, the United   Kingdom and the United States.  Together, they have committed to contribute  about US$82 million to the FCPF.  More  contributions from the public and private sector are expected in the coming months.

  – For more go to this page

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FIRST FRUIT IN NEGOTIATING CARBON PAYMENTS IN THE PHILLIPINES

The Kalahan Educational Foundation (KEF) has finally  signed an agreement with the Mitsubishi UFJ Securities (MUS) Co., Ltd. Through  the ICRAF-RUPES Project, KEF (an indigenous community-based led organization)  is developing a carbon sequestration project in at least 900 hectares of the  Ikalahan Ancestral Domain in Nueva Vizcaya.


Under the agreement, MUS provides consultancy  services on issues relating to the creation and acquisition of Certified  Emission Reductions (CERs) and other matters related to the Clean Development  Mechanism as well as on the generation of Emission Reductions.


Unlike with the other consulting services, aside  from shouldering the upfront costs of CDM registration process, MUS offered an  option to purchase the generated CERs and ERs from the project at 8$USD per  tonne with payment to be made upon delivery of the CERs 12 months upon the  execution of the agreement.


ICRAF-Philippines is actively involved in enhancing  the capacity of KEF to negotiate payments for their carbon sequestration and  assisting KEF in preparing information and documents necessary for the CDM  registration. Currently, the community has started planting indigenous seedlings  to the target areas. KEF is also preparing for non-Kyoto market.


Preparation of the project idea note and baseline  information of Kalahan carbon project was made possible through the financial  assistance of the International Fund for  Agricultural Development (IFAD).

  – For more information, click here...

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CARBON FUNDS GROW IN 2008 BUT SLOWED BY UNCERTAINTY

Source: Reuters, 21 August 2008


The global carbon fund market, which invests in  emissions offset credits from clean energy projects in developing countries,  has risen by 63 percent to nearly $13 billion so far in 2008, according to  environmental market analysts. Although strong, the carbon fund market's growth  was outpaced by the overall carbon emissions market which, according to the  World Bank, more than doubled between 2006 and 2007 to $64 billion,  Environmental Finance magazine said in its 2008/09 Carbon Funds Directory.


"Looming uncertainty over the shape of the  global carbon markets after 2012 (and) the effects of the credit crunch ... are  contributing to a slowing down of new capital joining the carbon market,"  Environmental Finance said in a statement.


The global carbon markets are poised to double in  value again to more than $100 billion in 2008, according to market observers.


The number of carbon funds has grown by 33 percent  so far in 2008, up from 56 funds managing $7.9 billion in assets in 2007,  Environmental Finance said. There are now 80 carbon funds under management  globally, including private funds, government-run credit purchase vehicles or  buyers' pools. Most buy only the offset credits issued under the Kyoto  Protocol's Clean Development Mechanism (CDM) to clean-energy projects like wind  farms and hydro dams in developing countries. The funds then sell these credits  for profit to companies and governments from rich nations that use them to meet  emissions targets. Government-run credit purchase vehicles buy offset credits  to help meet national greenhouse gas obligations under the Kyoto Protocol.


The largest corporate-run carbon funds by capital  secured, as identified by Environmental Finance, include Climate Change  Capital's Carbon Fund ($1 billion in assets), the Greenhouse Gas-Credit  Aggregation Pool (managed by Natsource, $825.8 million in assets), the China  Methane Recovery Fund (managed by MTM Capital Partners, $635.3 million in  assets) and Trading Emissions' carbon fund ($619.7 million in assets).


The largest non-corporate funds or government-run  credit purchase vehicles include the Umbrella Carbon Facility (managed by the  World Bank, $1.23 billion in assets), the Norwegian Carbon Tender (managed by  the Norwegian government, $800 million in assets) and the Kyoto Mechanism  Credit Acquisition Programme (managed by the Japanese government, $761.9  million in assets).


The entire CDM market also doubled to $13 billion in  2007, the World Bank said.


While the global credit crunch is squeezing the availability  of the capital required for higher growth in carbon funds, worries surrounding  ongoing negotiations to strike a new agreement to succeed the Kyoto Protocol  are also casting uncertainty over the future of the global carbon markets. With  the Kyoto Protocol's first commitment period expiring after 2012, the fate of  the CDM is at risk. This is leading to a slowdown in the number of projects  being submitted for registration by the UN's climate change secretariat, and  this may affect the long-term supply of offset credits relied on by the carbon  funds market. As a result, shares in CDM project developers like UK-based  EcoSecurities have plummeted in the past year.


  Market participants are also watching the  upcoming U.S. presidential election, which should shed light on the direction  the heaviest-polluting developed nation will take on emissions trading,  Environmental Finance said. Both presidential candidates have said they are in  favour of introducing so-called cap-and-trade schemes, a prerequisite for the  emergence of a national carbon emissions market.

  – For more on this story go to www.wbdsd.org

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LANDMARK FLORIDA EVERGLADES DEAL EXPECTED

Source: BBC News


US conservationists are hailing a landmark agreement under which the  state of Florida will buy a huge tract of land from a major sugar company. The  US Sugar Corp has tentatively agreed to close down and sell the 800sq km of  land it owns in the Everglades to Florida for $1.75bn (£890m).


The Everglades is network of swamps and rivers covering 6,000sq km and is  one of America's most unusual ecosystems. Conservationists have struggled for  years to preserve its waters. Sugar cane production has been one of the  industries blamed for its pollution. The US Sugar Corporation is America's  largest producer of sugar cane. The deal with Florida would result in the  company's closure but return a huge portion of the Everglades to the state. If  the deal goes through, it will enable officials to build a network of  reservoirs and marshes, a move one conservationist has called the "missing  link" in the preservation of the Everglades.


But for the sugar cane industry it is a blow. Cheap imports have led to  the closure of dozens of mills and if the deal goes through, almost 2,000  workers will lose their jobs.


For the last eight years the state of Florida has poured billions of  dollars into cleaning up the Everglades, but the progress has been slow. It is  hoped officials will sign an agreement in September; a move that  conservationists say spells a new chapter in the history of the Everglades.

  – For more on this story visit the BBC website

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Upcoming Events

5-14 OCTOBER 2008 - THE IUCN WORLD CONSERVATION CONGRESS; BARCELONA, SPAIN

More than 8,000 leaders from government, the public sector, non-governmental organizations, business, UN agencies and social organizations will discuss debate and decide solutions for the world’s most pressing environment and development issues. The Congress starts with the four-day Forum run by IUCN members and partners discussing cutting edge ideas, thinking and practice. The Forum leads into the four-day IUCN Members’ Assembly, a unique global environmental parliament of governments and NGOs.

  – For more visit the event website

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17-19 NOVEMBER 2008 - CARBON MARKETS AFRICA, TABLE BAY HOTEL, CAPE TOWN, SOUTH AFRICA

Carbon Markets  Africa looks to build on the success of last year providing delegates  up-to-date thinking from an expert panel of speakers and allowing ample time  for networking and discussion on areas crucial to CDM and the Voluntary Market  in Africa. Expert speakers already confirmed include:

  • Johan van den  Berg, Chief Executive Officer, CDM Africa Climate Solutions 
  • Emily Tyler,  Senior Associate, Climate Change Division, Genesis-Analytics 
  • Dean Cooper,  Managing Director, Parallax and PACE 
  • Sebastian von  Wolff, Regional Manager Africa, OneCarbon International 
  • Amit Oza,  Emissions Broker, TFS Green 
  • Leslie  Durschinger, Founder and Managing Director, Terra Global 
  • Robbie Louw,  Director, Promethium, South Africa 
  • Belynda Petrie,  Chief Executive Officer, OneWorld Sustainable Investments

Learn from practical  case studies by:

  • Ciska Terblanche,  CDM Specialist, ANGLO AMERICAN 
  • Rudi Kriste,  General Manager Business Development, Omnia Fetilizer 
  • John Parkin,  Deputy Head Plant and Engineering, eThekwini Municipality 
  • Johan Myburgh,  Process Development Manager, Sappi Kraft

  – For more information see www.greenpowerconferences.com/carbonmarkets

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28-30 JANUARY - CONFERENCE ON CONSERVATION SCIENCE AND POLICY, ACCRA, GHANA

The  Society for Conservation Biology Africa Section announces a conference on  conservation science and policy to be held in Accra, Ghana from January 28 30,  2009. The theme of the conference is "From Conservation Science to Policy  in Africa."


Starting  in September 2008, there will be calls for the submission of abstracts for  paper and poster presentations, workshops, and symposia.


Policy  issues have become central to conservation biology in Africa, and also  attaining the Millennium Development Goal 7, to ensure environmental  sustainability [i.e. Integrate the principles of sustainable development into  country policies and programmes; reverse loss of environmental resources &  reduce biodiversity loss, achieving, by 2010, a significant reduction in the  rate of loss].  Additionally,  conservation in practice offers opportunities for the livelihoods of vast  numbers of poor people in landscapes that support an impressive array of  biodiversity.


However,  the gap between scientists and policymakers has undermined the potential of  conservation to support economic growth and development on the African  continent, which this meeting will potentially contribute to. These and other  issues led to this conference by the Africa Section, Society for Conservation  Biology.

  – Check the SCB website for updates on the meeting www.conbio.org/Sections/Africa
  – You can also email scbafrica2009@ymail.com for more information.

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Resources & Tools

ACCOUNTING FOR MOSAIC DEFORESTATION- A NEW TOOL FOR REDD

The World Bank has developed a new methodology to estimate reductions of greenhouse gas emissions from mosaic deforestation- defined as spread out deforestation on accessible forests as characterized in patchy forested landscapes. This new methodology will allow for more rigorous carbon accounting in humanized landscapes (where most of these patchy landscapes are located) and provides an important tool to support the implementation of stringent REDD standards

  – For more details visit http://carbonfinance.org/Router.cfm?Page=DocLib&CatalogID=41513

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NEW WEBSITE ON PAYMENTS FOR ENVIRONMENTAL SERVICES FROM AGRICULTURAL LANDSCAPES- PESAL

The Agriculture Development Economics Division  of FAO has launched a new  website  dedicated to Payments for Environmental Services in Agricultural Landscapes  (PESAL). It provides an overview of the rationale and potential of payments for  environmental services  to improve  incentives for sustainable natural resource management in agriculture, and  offers a synopsis of the process for the design and implementation of  such schemes, with pro-poor options inbuilt  in each section .   The website includes  the following: 

     
  • About  PES - an overview of current PES schemes
  • The Role  of Agriculture - information on the potential of agriculture to provide ES
  • Ecosystem  Service Markets - an assessment of the demand for ES from agriculture
  • Setting  up a PES Scheme - guidelines on how to set up a PES scheme that can potentially  also contribute to reducing rural poverty
  • Materials  - information to facilitate links between practitioners, prospective providers  and buyers and capacity-building materials

  – The PESAL project was funded by the FAO Netherlands Partnership Programme.

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DATABASE AND MAP OF THE DIVERSITY OF LIFE IN THE WORLDS FRESHWATER SCOSYSTEMS

More than more than  200 leading conservation scientists have created a comprehensive map and  database of the diversity of life in the world's freshwater ecosystems. A First  for Freshwater!... and it took them over 10 years to do it. Why? Freshwater  habitats support more than 100,000 species and provide humans with critical  services such as drinking water and fisheries. Yet--until now—there were no  data on global freshwater biodiversity synthesized in a way that was useful to  conservation. The Freshwater Ecoregions of the World (FEOW) project, a collaboration  between WWF and The Nature Conservancy, changes all of that.

  – Explore the 426 ecoregions of the map and discover this extensive and easily searchable resource here

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New Publications

BREAKING THE CLIMATE DEADLOCK - CARBON MARKETS REVIEW

Tony Blair & The Climate Group
5 August 2008


Carbon trading markets emerging in developed countries are unlikely to  succeed in reducing greenhouse gas emissions to required targets in their  current form, according to a report co-authored by former UK Prime Minister  Tony Blair. The report also says the UN’s project-by-project approach to  emissions reductions in developing countries under the CDM is too little and  too slow to meet the challenge of curbing emissions growth in these often  fast-growing nations.


“The ‘sum of the parts’ of the carbon markets today may not deliver the  deep cuts in emissions that are required,” the report states. “Many domestic  emissions trading schemes have self-protection features that mean they are not  as open or international as the architects of Kyoto had in mind, or as many  experts in the field would recommend.” Schemes must be better integrated with  globally consistent rules and trading instruments, the authors say. They also  recommend new international reduction measures targeting key emitting sectors  across developing economies, the so-called sectoral approach, to complement the  CDM.

The report also warns that, no matter how successfully emissions trading  schemes are implemented and integrated, carbon pricing won’t throw up all the  technologies and strategies that will be needed to fight climate change. More  targeted measures will be needed to deliver a full sustainable development  agenda.


The report’s recommendations make calls for leaders this year to agree  on, or strongly signal, long term targets to 2050 and a credible trajectory to  achieving them, and by the end of 2009 agree mid-term targets for  industrialised countries and the mechanisms to achieve them.


The Review of  Carbon Markets is one of a series of 14 briefing papers published under the  ‘Breaking the Climate Deadlock’ initiative of Blair’s and NGO, The Climate  Group. The papers add more detail to a document put out in advance of the  recent G8 summit in Japan where Blair outlined ten core areas of climate change  response for progress.

  – For the full paper click here...

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HOW TO INCLUDE TERRESTRIAL CARBON IN DEVELOPING NATIONS IN THE OVERALL CLIMATE CHANGE SOLUTION

The Terrestial Carbon Group


Avoiding dangerous climate change requires a multifaceted response.  Terrestrial carbon (including trees, soil, and peat) is a critical untapped  element that could provide up to 25% of that response. Deforestation and the  degradation of forests and peatlands in the tropics of developing nations  currently cause the vast majority of terrestrial carbon emissions.


The objective of the Terrestrial Carbon Group is for terrestrial carbon  to be effectively included in the international response to climate change.  This paper provides guiding principles to do so in support of:


(a) ongoing global negotiations on reducing emissions from deforestation  and degradation (REDD) under the United Nations Framework Convention on Climate  Change and Kyoto Protocol; and


(b) emerging national, bi-lateral, and multi-national efforts to maintain  and enhance terrestrial carbon. Both market and non-market approaches to  terrestrial carbon and climate change are necessary. Within that context, the  Terrestrial Carbon Group proposes a system to credibly include terrestrial  carbon in developing nations in the international response to climate change  using carbon markets. The Terrestrial Carbon Group works with governments, the  private sector, civil society and academics around the world. We welcome  dialogue and collaboration, and look forward to hearing from you.


To download the  full paper and for further details, please visit the website: www.terrestrialcarbon.org  The Terrestrial Carbon Group welcomes your  comments and suggestions. The paper will also be available in Bahasa Indonesia,  French, Mandarin, Portuguese, and Spanish.

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REDD BRIEFING PAPER ON POLICY APPROACHES

As consensus on methodological issues related to Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD) is growing. On 4 pages, the German Development Institute discusses and recommends options for both a REDD finance and transfer system.

  – To read this paper, click here...

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NEWSLETTERS

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

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