Transcript this file - Carbon Finance at the World Bank

The Climate, Community &
Biodiversity Standards
When, why and how to use CCB Standards
Joanna Durbin
Director, Climate, Community & Biodiversity Alliance
Land-based Options for Mitigating Climate Change
Reducing carbon emissions by:
Preventing or reducing deforestation or
other carbon-rich natural habitat
conversion
Improving soil management & reduced
nitrogen fertilizer use
Increasing carbon uptake through:
Reforestation, afforestation and forest
restoration
Improved forest management
Integration of trees into agricultural
systems (agro-forestry)
Land-based carbon activities have great potential
impact on people and biodiversity
Negative
Clearance of natural ecosystems
Threats to endangered species
Reduced water regulation/quality
Loss of natural pollination
Exclusion from land and
resources
 Non-respect of customary
tenure/rights
 New influences (immigration,
revenues, power) can degrade
traditions and cause social
conflicts
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Land-based carbon activities have great potential
impact on people and biodiversity
Positive
 Watershed & soil protection
 Agricultural productivity
enhancement
 Employment or new livelihoods
 Revenue sharing
 Biodiversity conservation
 Continued use of forest products
 Maintenance of traditional
livelihoods and culture
The Climate, Community & Biodiversity Alliance
Alliance Members
Advisors
Mission: To catalyze the creation of
a robust, global carbon market for
land-based activities that
simultaneously benefit the global
climate, local communities and
biodiversity
Project design and implementation is key
Baselines & Additionality
 careful site selection
Measurement & Monitoring
 apply best practices
Offsite impacts (leakage)
 build in sustainable
livelihoods
Permanence
 long-term management,
community incentives, buffers
Negative tradeoffs
 design for multiple-benefits
Two-Year International Stakeholder Process
• Public and expert comments
• Field testing
- Tanzania - Peru
- Bolivia
- Ecuador
- Indonesia - Scotland
• Independent peer review
– ICRAF
– CATIE
– CIFOR
• First Edition released May 2005
• Translated into Chinese, French
and Spanish
• Further revisions are planned
CCB Standards are project design standards
-CCB Standards are applied up front
-Identify and validate high quality project design
-Encourage sensitive and integrated design to
generate positive social and biodiversity impact
-Stimulate investment in project development and
ex-ante carbon
-AND attract investors interested in multiple
benefits
-Stimulate investor preference/potential price
premium
-Attract co-funding for community and biodiversity
benefits eg from Govts, overseas development
assistance, NGOs,
CCBS build confidence in forest carbon
Baselines & Additionality
How can high quality project design and
multiple-benefits reassure an investor?
Additionality – many multiple-benefit
projects are not entirely commercially driven
thus would not make economic sense without
carbon funding
 Leakage – building sustainable livelihoods
around project site reduces risks of shifting
destructive practices elsewhere, off-site
impacts must be defined and monitored
 Permanence – ecological stability &
community incentives increase prospects for
durability, and buffers can be employed as
insurance against loss
CCBS demonstrate community and biodiversity benefits
Baselines & Additionality
 community and biodiversity impacts are
clarified - Baselines, methodologies, expected
impacts and monitoring plans
Why would investors be interested in
additional benefits?
 Avoid negative social/environmental impacts
 Community incentives and sustainable
landscapes can help reduce risks to carbon of
permanence and leakage
 Marketing ‘story’
 Multiple objectives for corporate social
responsibility to appeal to
consumers/staff/regulators,
 Can improve credentials to enable greater
access or license to operate
The Climate, Community & Biodiversity Standards
• Independent 3rd party validation
Generalcriteria
Criteria
General
G1. Original Conditions at Project Site
Required
G2. Baseline Projections
Required
G3. Project Design & Goals
Required
G4. Management Capacity
Required
G5. Land Tenure
Required
G6. Legal Status
Required
G7. Adaptive Management for Sustainability
1 point
G8. Knowledge Dissemination
1 point
Climatecriteria
Criteria
Climate
C1. Net Positive Climate Impacts
Required
C2. Offsite Climate Impacts (“Leakage”)
Required
C3. Climate Impact Monitoring
Required
C4. Adapting to Climate Change & Variability
1 point
C5. Carbon Benefits Withheld from Reg. Markets
1 point
Climate
CriteriaClimate Impacts
C1.
Net Positive
Required
Concept
The project must generate net positive impacts on atmospheric concentrations of
greenhouse gases (GHGs) within the project boundaries and over the project
lifetime.
Indicators
1) Use the methodologies of the Intergovernmental Panel on Climate Change’s
Good Practice Guidance (IPCC GPG) to estimate the net change in carbon
stocks due to the project activities. The net change is equal to carbon stock
changes with the project minus carbon stock changes without the project (the
latter having been estimated in G2). Alternatively, any methodology approved
by the CDM Executive Board may be used. This estimate must be based on
clearly defined and defendable assumptions about how project activities will
alter carbon stocks and non-CO2 GHG emissions over the duration of the
project or the project accounting period.
2) Factor in the non-CO2 gases CH4 and N2O to the net change calculations
(above) if they are likely to account for more than 15% (in terms of CO2
equivalents) of the project’s overall GHG impact.
3) Demonstrate that the net climate impact of the project (including changes in
carbon stocks, and non-CO2 gases where appropriate) will give a positive
result in terms of overall GHG benefits delivered.
Communitycriteria
Criteria
Community
CM1. Net Positive Community Impacts
Required
CM2. Offsite Community Impacts
Required
CM3. Community Impact Monitoring
Required
CM4. Capacity Building
1 point
CM5. Best Practices in Community Involvement
1 point
Community
Criteria
CM3.
Community
Impact Monitoring
Required
Concept
The project proponents must have an initial monitoring plan to quantify and
document changes in social and economic wellbeing resulting from the
project activities (within and outside the project boundaries). The
monitoring plan should indicate which measurements will likely be taken
and which sampling strategy will be used to determine how the project
affects social and economic wellbeing. Since developing a full
community-monitoring plan can be costly, it is accepted that some of the
plan details may not be fully defined at the design stage, when projects
are being evaluated by the CCB Standards. This will especially be true
for small-scale projects.
Indicators
1) Have an initial plan for how they will select community variables to
be monitored, and the frequency of monitoring. Potential variables
include income, health, roads, schools, food security, education and
inequality. Community variables at risk of being negatively impacted
by project activities should be monitored.
Biodiversitycriteria
Criteria
Biodiversity
B1. Net Positive Biodiversity Impacts
Required
B2. Offsite Biodiversity Impacts
Required
B3. Biodiversity Impact Monitoring
Required
B4. Native Species Use
1 point
B5. Water & Soil Resource Enhancement
1 point
The CCB Standards - validation procedure
1. Internal desk review
2. Contract 3rd party validator (CDM or
FSC accredited) and provide docs
3. PDD and supporting docs posted to
CCBA website for 21 day public
comment period
4. Validator site visit
5. Audit report – may require changes
to PDD or further documentation
6. Improved PDD/documents submitted
as required
7. Validator issues statement of
compliance and level (approved,
silver or gold)
The CCB Standards – progress on adoption
Project Development:
– Two projects validated: Tengchong and Panama
– Five posted for public comment; Tanzania, India,
UK, Indonesia, Nicaragua
– Around 80 projects planning to use CCBS
– Represents estimated vast majority AFOLU under
devpt
– CCBS covers all AFOLU: A/R, AD, and forest
management
– Useful for voluntary and regulatory markets
Demand:
– Major portfolio investors: World Bank BioCF,
EcoSecurities
– Carbon retailers (e.g., Carbon Neutral Company,
The CarbonFund, 3 degrees, 3C)
– Major corporations + carbon tenders: Dell, Mariott,
Ricoh,
– 54% prefer CCB projects, 40% willing to pay
premium
– $1-2/tonne premium
– $5-15/tonne CO2 equivalent
– Currently greater demand than supply for CCB
carbon
Timeline for application of CCB Standards
CCBS
CCBS
5 years
Project Design Phase
Carbon
verification
standard
Project Implementation
~5-10 years for restoration,
~1-5 years for RED before
sufficient carbon benefits on
ground to verify
CCBS Validation enables ex-ante carbon
sales and up front investment to implement project
Enables ex-post
carbon sales
Verifies that project has been
implemented according to
design, verifies monitoring
reports of carbon, community
and biodiversity benefits,
validates adaptation of project
design
Description
Project types –
includes landbased?
Carbon
verification
Environmental
and social
benefits
Geographical
reach
CCBS
Multiple-benefit project
design standard
All land-based
projects
No
Yes
Global
VCS
Carbon verification
standard for voluntary
market
All types carbon
offset
Yes
No
Global
Gold
Standard
Multiple-benefit project
design standard
Energy only
In
development
Yes
Global
CDM
Kyoto-compliant
scheme
Includes A/R
Yes - VERs
No
Developing
countries
CCX
Internal system for CCX
offset projects
Includes A/R and
AD
Yes
?
Global
Plan Vivo
Project development
support for multiplebenefit
Communitybased agroforestry
Yes
Yes
Global (3
projects to
date)
Greenhouse
Friendly
Certification for offsets
and carbon neutral
All land-based
projects
Yes
No
Australia
CCAR
A registry protocol
Forestry
Yes
No
California
VER+
Certification for offsets,
carbon neutral
All land-based
projects
Yes
No
Global
Social
Carbon
Methodology and
certification for multiplebenefit land-based
project
All land-based
projects
In
development
Yes (more social)
South America
and Portugal
to date
The Climate, Community & Biodiversity Standards
• Promote excellence and innovation in project design
• Identify projects that simultaneously address climate change,
support local communities and conserve biodiversity
• Provide investors with risk management tool
• Enhance the credibility of carbon forestry sector
• Facilitate bundling and stacking of PES
More information available from…
www.climate-standards.org
Joanna Durbin
Director, CCBA
Email: [email protected]
Cell: + 1 703 623 4441