Transcript Markets to Advance Conservation Mission

Community MARKETS for Conservation – Markets to Advance
Conservation Mission
Increased
tourism
revenues
Reduced
wildlife/NR
management
costs
Increased
food security
Reduced
rural poverty
Increased
security for
national parks
& national
forests
Improved
ecosystem
services
Market Development
Production Support:
COMACO Impact
Product
development and
processing
Distribution and
advertising
CTC
trade support
Wildlife-based
commodities
Business
plans
CTC support
COMACO
trading center
Trade &
Conservation
Marketing & sales
Increased
tourism
investment
Community
Producers: organized
around Trading Depots
CTC support
Land use
plans
Forest-based
commodities
Agricultural
commodities
CTC extension
support
COMACO Business Analysis Performed in May 2007 on Community
Trading Centers: Lundazi and Mfuwe
 WCS Conservation Efforts, WFP Contracts and COMACO
leverage one another’s activities and share expenses
 Getting Started – Significant Costs Associated with
Establishing CTCs
 Lundazi: $1.2M+
 Mfuwe: $400K+
 Conclusions in May 2007
 Agro Processing – Necessity of Higher Value Add
 Market Development – Existing and New Markets
2007 COMACO Financial Data – 3.31.08 Year End
 First Full Year of Consistent Sales with Established Products
 Sales Outlets have been developed with supermarket chains
(Shoprite & Spara) and NGOs (Peanut Butter & HEPS)
 Net Sales of 851,133,010 kwacha
 Rice is best selling product in 2007 = 72% of Sales
 Development of Soy Based Product line – HEPS (18% of Sales),
Yummy Soy
 Bottom Line: 2007 resulted in 349,458,678 kwacha operating loss
– not inclusive of D&A
Climate Change Reality
 Global Warming is happening – The Debate is Over
 GHG at highest levels in at least 800,000
years - Study published in journal Nature
 Carbon Dioxide levels estimated to be at
380 ppm and increasing
 What Does This Mean?
 Poorest of Poor Most Vulnerable to Effects of Climate Change
 I Didn’t Cause this Mess…
 How are WE Going to Fix the Problem?
 Adaptation & Mitigation Needed Now!
 “Job is not to punish the polluter but to get rid of
pollution” -Richard Sandor (CCX Founder)
Market Mechanisms for Climate Change
 Challenge or Opportunity? – ‘It Depends’
 Incentives for Cleaner Development
 Intersect with Development Priorities
 Significant Need for Financial, Knowledge and Technology
Transfers on Mass Scale (Design, Implementation, Dissemination)
 Need for Commercially Viable Emission Reducing Innovations
 Know-How to Implement Technology or Knowledge
 Favorable Regulation and Policy for all Transfers
 Local Capacity is Necessary – Developers, Verifiers, etc
Mandatory vs. Voluntary Markets
Market Programs
Market
Size
Trading Prices
Participation
Requirements
Mandatory Carbon
Markets (Kyoto
Protocol/CDM)
Large $63+ Billion
in 2007
Variable – recently
$35+US/CER
Rigorous
approval and
verification
process
Voluntary Carbon
Markets
Small but
growing
rapidly
Significantly less than
Mandatory – recently
$6+US/VER
Variable/ Less
stringent
 Its All About ‘ADDITIONALITY’
 Mandatory 2007 Offset Market: 73% China, 5% Africa
 Kyoto Protocol / Voluntary Markets a Work In Progress
 US Legislation – Federal or State Approach
 Post 2012 Kyoto Negotiations
Kyoto Protocol Market (Mandatory Market) Offset Credit Creation Process
COMACO and Climate Change
 Opportunity Exists for Smallholder through Co-Benefit Projects
 Project Must Include Measurable & ADDITIONAL Steps to
Generate Emission Reductions
 Must be Verifiable and Monitored
 Fiscal Management
 Applicability of COMACO’s Model & Infrastructure
 Ability to Provide Technology, Knowledge, Innovation Transfer
 Organization of Producer Groups can be Leveraged to Generate
Credits & Disburse Payments
 Tie to COMACO Compliance Activities – Project Development &
On-Going Monitoring
COMACO and Climate Change
 November 2007 - Research Identified COMACO Opportunity
for Accessing Carbon Markets (Triple Benefit)
 Develop coordinated reforestation with agro-forestry project through
COMACO producer groups – basis will be hectares of reforested land
 Soil carbon capture opportunities through conservation farming of
individual COMACO farmers – basis will be acres under CF
 Potential for Production Fuel Switching (Small Scale), Electric Fences,
biogas, Off-Grid Renewable Energy
Climate Change and SANREM Research
 Adaptation: Improved Seed Stock, Soil Carbon
Management, Irrigation, Watersheds, Migration, Energy,
‘Coping Strategies’
 Ownership Rights – Who Owns Stream of Carbon Credits
 Implementation and Sustainability of SANREM Research
 Technology & Knowledge Transfers
 Financial Incentives
 Pilots for Promising Technology
 “So What, Then What” – Use Science and Technology
Researched by SANREM to Generate Scalable Co-Benefit
Methodologies for Emission and Poverty Reduction
COMACO and Markets
Questions?
Contact:
John Fay
Emerging Markets Group
Email: [email protected]
Tel: +86 136 6115 5366