Transcript this file - Carbon Finance at the World Bank

BioCarbon Fund Overview
BioCF Project Training Seminar
Washington, DC
September 12, 2005
Harnessing the carbon market to sustain
ecosystems and alleviate poverty
World Bank Carbon Finance Products
Total funds pledged: ~ US$940 million
Prototype Carbon Fund. $180 million (closed).
Multi-shareholder. Multi-purpose.
Netherlands Clean Development Facility. ~ $172 million.
Netherlands Ministry of Environment. CDM energy & infrastructure projects.
Community Development Carbon Fund. $128.6 million (closed).
Multi-shareholder. Small-scale CDM energy projects.
BioCarbon Fund. $53.8 million (Tranche Two open).
Multi-shareholder. JI and CDM LULUCF projects.
Italian Carbon Fund. $80 million (open to Italian participation).
Italian Multi-shareholder. Multipurpose.
Netherlands
ECF
Netherlands European Carbon Facility. ~ $40 million with IFC.
Netherlands Ministry of Economic Affairs. JI projects.
Spanish Carbon Fund. ~ $220 million (open to Spanish participation).
Spanish Multi-shareholder. Multipurpose.
Danish Carbon Fund. ~ $64 million (open to Danish participation).
Danish Multi-shareholder. Multipurpose.
BioCarbon Fund: Rationales
 Improved land use is part of the
solution to climate change
(deforestation causes 20% of CO2
emissions)
 Open carbon market to rural
communities (excluded if CDM
restricted to energy & infrastructure)
 Inform debate (so far too
ideological, not enough based on facts)
 Create synergies among
Conventions (money channeled
through UNFCCC can foster sister
conventions)
UNCCD
Goals
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Atmospheric: Reduce GHG concentrations
over baseline
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Cost-effective: Buy low-cost climate
change mitigation opportunities
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Social: Improve livelihoods (employment,
income, know-how)
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Environmental: Conserve biodiversity,
rehabilitate land
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Adaptation: Increase social and ecological
resilience of local communities
Two Windows
First Window
Second Window
Kyoto-compatible
Explore “beyond Kyoto”
CDM: Afforestation
/Reforestation + Biofuels
CDM: Forest management,
revegetation, agricultural
land management
Carbon credits to meet
Kyoto obligations
No carbon credits
Tranches and Windows
First Window
Second Window
Tranche One (operational)
Land Restoration Tranche (to be opened)
Marine Tranche?
Portfolio – First Window
 In-fill planting for forest
restoration
 Community forestry
 Agroforestry
 Biofuels
Portfolio – Second Window
 Forest
restoration &
conservation
 Reduced
tillage
 Revegetation
Project Portfolio
 ~ 140 Project Idea Notes received
 BioCarbon Fund Tranche One needs ~ 20
projects
 22 leading candidates under preparation
(Carbon Finance Documents)
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~ 13 Mt CO2e by 2017 (including Windows 1 & 2)
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Enough for a fund of ~ $85 million (including all
costs)!
22 Leading Projects
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Albania Assisted Natural Regeneration
Brazil Reforestation around Hydro Basins
China Pearl River Watershed Management
Colombia San Nicolas Agroforestry
Colombia Silvopastoral Rehabilitation
Congo Bateke Fuelwood and timber Plantation
Costa Rica Coopeagri
Dominican Republic Rio Blanco Reforestation
East Africa Small Group and Tree Planting
Ethiopia Humbo Assisted Regeneration
Honduras Pico Bonito
India Improving Rural Livelihhod
Kenya Green Belt Movement
Madagascar Biodiversity Corridor
Mali Acacia Plantations
Mexico Seawater Agroforestry
Nicaragua Precious Woods
Niger Acacia Community Plantations
Philippines Watershed Rehabilitation
Trinidad and Tobago Nariva Wetland Restoration
Uganda Nile Basin Reforestation
Ukraine Chernobyl Reforestation
Geographic breakdown
Eastern Europe
10%
East Asia
4%
Latin Am erica
29%
Caribbean
6%
Subsaharan Africa
47%
South Asia
4%
Project types
Silvopastoral
3%
Com m unity
reforestation
18%
Assisted
regeneration
10%
Avoided
deforestation
6%
Fuelw ood
plantations
7%
Agroforestry
11%
Com m ercial
plantations
20%
Sustainable
agriculture
1%
Environm ental
plantings
24%
Portfolio Development
ERPAs signed
9
LoIs signed
17
LoIs issued
22
CFDs cleared
$0
$10
$20
$30
$40
$50
$60
Investors
 Tranche One operational since May 2004
 14 Participants: $53.8 million
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Okinawa Electric; Government of Canada; Government of
Italy; Tokyo Electric; Eco-Carbone; Agence Française de
Développement; Government of Spain; Government of
Luxembourg; Idemitsu Kosan; Sumitomo Joint Elec. Power
Co.; Sumitomo Chemicals; Japan Petroleum Exploration;
Japan Iron and Steel Federation; Suntory
 Tranche One closed on August 31, 2005
 Tranche Two open for contributions
How the Fund Works
Technology
$
Finance
Industrialized
Governments
and
Companies
Technology
$
Finance
EITs and
Developing
Countries
CO2 Equivalent
CO2 Equivalent
Emission Reductions
Emission Reductions
Governance
 International Bank for Reconstruction and
Development is Trustee of the BioCF; BioCF
does not have legal entity
 Fund Manager + Fund Management Unit
 Participants (investors) represented by a
Participants’ Committee approving projects,
budgets, and giving general guidance
 Fund Management Committee = 5 Bank
managers screening projects
 Host Country Committee for all Carbon Funds
BioCF Website
 Website used intensively to communicate with
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Participants, project sponsors and public
Contains a description of each cleared project
Contains a FAQs section on the BioCarbon Fund
Will contain a discussion of some of the LULUCF
specific issues, as they arise in the various projects
(additionality, leakage, permanence, social and
environmental benefits and risks)
Contains a page on “Useful LULUCF Resources,”
which links to other organizations, market
information, methodological and regulatory
aspects, etc.