a hedge hog thinks…
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A Hedge Hog Thinks…. Two of the greatest threats to global peace and prosperity…. climate change and rural poverty in the developing world …can be managed with a single intervention: a greener, more carbon intensive forestry and agriculture. - PowerPoint PPT PresentationTRANSCRIPT
A Hedge Hog Thinks…A Hedge Hog Thinks…A Hedge Hog Thinks…A Hedge Hog Thinks…
Two of the greatest threats to global peace and prosperity….
– climate change and rural poverty in the developing world
…can be managed with a single intervention:
– a greener, more carbon intensive forestry and agriculture.
Carbon2MarketsValue chains from carbon credits and agro-forestry products
MSU PartnersMSU PartnersMSU PartnersMSU Partners
What is carbon2markets?What is carbon2markets?What is carbon2markets?What is carbon2markets?
An example of an active Ecosystem Services marketplace: carbon financial markets
Leveraging twotwo ecosystem services &products to the market:
• Carbon sequestration in soils and vegetation• Natural products and their biochemicalDerivatives for products
Working now in the tropics on Agroforestry systems in Africa and Asia:
– Shea– Neem– Jatropha
Markets Require Carbon Accounting Markets Require Carbon Accounting Systems and ProtocolsSystems and Protocols
Markets Require Carbon Accounting Markets Require Carbon Accounting Systems and ProtocolsSystems and Protocols
• Carbon buyers need assurance that they are buying real carbon sequestration
• Carbon sellers need to know how to account and report the carbon they have
• Market growth is constrained by the lack of effective protocols
• Markets are looking for effective, rigorous and challenge-proof accounting systems
One of the primary issues in carbon markets is the need for assurances. Emerging technologies provides this assurance.
Opportunity spaceOpportunity spaceOpportunity spaceOpportunity space
• Protocols for bio-sequestration offsets will be increasingly in demand as the easy off sets get taken
• Protocols are either too simplistic (CCX) or too convoluted (CDM)
• Transaction costs are huge, sometimes more costly than the credit value: boots on the ground problem.
• Credits are only one dimension of the industry need: certification, verification, assessment and evaluation…
• Deforestation is the 800 lb gorilla
Stakeholer opportunitiesStakeholer opportunitiesStakeholer opportunitiesStakeholer opportunities
• Two markets Compulsory market, driven by Kyoto treaty type and legislative elsewhere (future US) Voluntary market, driven by companies wanting to reduce carbon risk
• Two mechanisms Trading credits through a formal exchange (e.g. ECX, CCX, MCX) Corporate direct investment in sequestration projects
Carbon RiskCarbon RiskCarbon RiskCarbon Risk
Shareholder Pressure– Shareholder resolutions (40+ in 2007) call for action
on climate change Corporate Social Responsibility
– Concrete demonstration of corporate actions Legal Pressure
– Companies can be directly liable for damages from climate change,
Insurance Pressure– Concerns about growing losses, pressuring corporate
action before policies are issued Regulatory Pressure
– More than 20 states and 1000 cities in the US are legislating caps equal to or more stringent than Kyoto
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Carbon Emissions
A B C
Target
2008 emissions levelsink
ProductsProductsProductsProducts
• Carbon measurement, monitoring and reporting
• Carbon verification• Carbon project aggregation• Land carbon registry services• Land carbon transaction layers• Land carbon forecast and market
assessment• Project and portfolio carbon impact and
evaluation• Deforestation monitoring
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Vision
Global Environmental Services
(Climate change, natural resources, biodiversity)
Technology Convergence
(Earth observation (EO) systems, Global Positioning Systems, web-enabled
Geographic Information Systems, location-based services, large mass data storage)
APPLIED TO:
to apply emerging technologies to measure and monitor land use changes to provide accurate environmental and carbon risk information.
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Three Core Applications• Carbon Accounting for LULUCF offsets
– Baseline, ex ante calculations, measurements, monitoring, reporting
– Project based, scalable to millions of hectares– Reduces transaction costs
• Carbon Monitoring and Evaluation, Carbon Risk Assessment– Project or portfolio based– Reporting on land use project’s carbon impact– Regular and global application and reporting
• Tropical Forest Monitoring: Deforestation Measurement– Fine spatial resolution, national to continental scale– Supports REDD and related needs
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The TRFIC Technology Suite
Integrates all of these essential components through key components•Ground measurement and calibration•Site characterization and planning•Carbon and Nitrogen accounting & modeling•Access to web based spatial information
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Earth Observation System
Satellite Database Data Analysis
Carbon ModelsCarbon Accounts
WWW
MarketsBuyers
Carbon Sellers
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Key Elements of the Measurement
• Ground measurements provide calibration and detailed sample frame analysis
• Remote sensing takes the ground samples to extrapolate spatially to the landscape
• Remote sensing characterizes spatial heterogeneity and land use
• Spectral analysis provides rapid soil carbon measurement
• GIS provides the data base framework for organizing spatial data
• Carbon and nitrogen models provide ex ante calculations and detailed accounting
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4. Modeler: linking space mapping to C and N accounting models and databases
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5. Carbon and Nitrogen Portal
C/N PortalC/N Portal centralizes projectcentralizes project information information
and allowsand allows users to access andusers to access and manage their manage their
carboncarbon accounts fromaccounts from anywhere. anywhere.
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Region east of Kingaroy, north of Nanango
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Zoom in at high resolution
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Region east of Kingaroy, north of Nanango. Small blue dots are waypopints. White is non forest/trees. Carbon sequestration range: 4-8 tCO2e per ha per yr (light to dark)
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Rural Poverty ThreatRural Poverty Threat
A billion people live in extreme poverty surviving A billion people live in extreme poverty surviving on less than $1 per day as subsistence farmerson less than $1 per day as subsistence farmers.
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Carbon markets can reduce Carbon markets can reduce povertypoverty
A billion people live in extreme poverty surviving A billion people live in extreme poverty surviving on less than $1 per day as subsistenceon less than $1 per day as subsistence farmersfarmers
Carbon is now a Carbon is now a commoditycommodity that can be grown on farms that can be grown on farmsInternationally carbon markets can be leveraged as a Internationally carbon markets can be leveraged as a poverty reduction toolpoverty reduction tool
Poor rural farmers in developing countries can Poor rural farmers in developing countries can promote conservation practices and benefit from promote conservation practices and benefit from carbon salescarbon sales
Multiple benefits: climate and povertyMultiple benefits: climate and poverty
.
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Example Multiple Benefit Projects
Restoration planting
Biofuels
Community ForestryAgroforestry
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Shea Nut Over Cassava, Corn
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Chicago Climate Exchange
• World’s first and North America’s only voluntary, legally binding greenhouse gas emission reduction and trading system.
• Opened for trading in December 2004.
• 500,000 trades in October 2005; 3 million trades to-date
• Companies now trading:– Ford Motor Company– IBM– Dow Corning– Motorola– University of Iowa,
Minnesota
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Small holders involved: Shea nut
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Viet NamViet Nam
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Laos PDRLaos PDR
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ThailandThailand
37Inpang Community harvest celebration Jan. 2008
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• Inpang Network – Carbon TrainingJay Samek Michigan State Univ.
August 11, 2007
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Natural Para Rubber Plantation on Degraded LandNatural Para Rubber Plantation on Degraded Land
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Para Rubber Para Rubber Inter-cropped Inter-cropped with Sala fruitwith Sala fruit
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Mixed natural and product species community forestMixed natural and product species community forest
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Natural forest assisted re-generationNatural forest assisted re-generation
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Indigo dying
48Mix catalyst: Methanol & NaOH
Oil mixed w/catalystTransestrification
WashingJatropha oil and bio-diesel processing equipment
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Simplified Traditional West African Farming System (cont.)
• Total system income:
240 USD/ha/yr Cereal+ 36 USD/ha/yr Shea Oil+ 24 USD/ha/yr Jatropha Oil+350 USD/ha/yr Neem Oil+ 78 USD/ha/yr Carbon = 728 USD/ha/yr (gross income)
x 2.4 ha (per capita average) = 1747 USD
Nearly double the average annual income for thoseliving at the “ethical poverty” level of $2.40/day
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