peatland rewetting for carbon credits – experience from belarus
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DESCRIPTION
Presentation by Zbig Karpowicz at VNN peatland workshop, Leeds 19th January 2012TRANSCRIPT
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Carbon Investment Opportunity: Belarus Peatland Rewetting Project
Elnya Raised Bog – the largest Belarusian natural peatland
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- Belarus is the country of peatlands
- Peatlands cover 14.2% of the territory of Belarus (2,9 mio ha)
Why Belarus?
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• From 2012 onwards
• Additional area rewetted 2012-2015 – 9 440 ha
• Rewetted area managed: 18 020 ha
• TOTAL emission reductions 2011-2028 – 871000
tCO2e
• Finances using mechanisms of voluntary carbon
market
• Total project size: 4,5 mio euro
BPR project – key features
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Map showing the location of Project sites
‘Old’ Project sites – 9 sites rewetted with KfW funds in 2008- 2011
‘New’ Project
Sites – 5 sites to be rewetted with HLG funds starting 2012
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Rewetting cycle
1. Selection of
degraded
peatland
3. Design
documents for
construction
works
2. Scientific
justification for
peatland
restoration
5. RESTORED
PEATLAND
4. Construction
works
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Current scenario description
From the proposed options the following "medium scenario“ foresees the following:
Additional area rewetted 2011-2015 – 9 440 ha Additional area rewetted 2016-2020 – 0 ha Emission reductions 2011 -2015 – 260 000 tCO2e Emission reductions 2016 – 2020 – 365 000 tCO2e Emission reductions 2021-2028 – 246 000 tCO2e TOTAL reductions 2011-2028 – 871 000 tCO2e
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National Carbon Project Cycle
Conclusion of Initial
Memorandum of Understanding (MoU)* between Ministry of Environmental Protection and HLG/KfW
Conclusion of
Emission Reduction Purchase Agreement (ERPA) between Project Entity and HLG/KfW
• Submission of a Project Idea Note (PIN) to the Ministry for Environmental Protection for a Letter of Endorsement.
• Submission of full
Project Design Document (PDD) to the Ministry. Issuance a Letter of Approval
* Initial MoU becomes MoU after Letter of Approval is issued
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Implementation Indicators
Preparation, Q3 2011-Q4 2011
• scientific justification
developed and approved
Physical
Contractual Q4 2011-Q3 2012
• Contracts with Design
companies signed Q1 2012
• Design documents approved
Q2 2012
• Contracts with Construction
companies signed Q2 2012
Carbon, Q3 2011 – Q4 2015
• Letter of Endorsement (PIN)
issued by the Ministry of
Environment Q3 2011
• Letter of Approval (PDD) issued
by the Ministry of Environment Q4
2011
• PDD registered in VCS Q3 2012
• Positive Validation results Q3
2012
• Positive Verification results Q2
2015
Physical Q2-Q4 2012
• Construction works
performed/Rewetting
occurred
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Carbon rights and contracts
According to Belarusian legislation (Presidential
Decree #625 and Provision of the Council of
Ministers #466)
– Project Entity (organization implementing emission
reduction project) has the right to the sell emission
reductions based on ERPA
– Ministry for the Environment based on confirmation
from independent verifying organization and MoU
transfers VERs to the buyer
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Project entity in Belarus: Limited company with foreign investments
APB-BirdLife Belarus (APB) - largest environmental NGO in Belarus - partner and/or implementing agency for all main peatland related projects in BY
- 28 staff and over 150 service contracts, 1.3 mio euro / year
National centre for Biological Resources of National Academy of Sciences of Belarus (NPC) - leading national authority on biodiversity - amalgamation of 4 academic institutes (Botany, Zoology, Forest, Botanical Gardens) - long-term partner in peatland restoration/conservation projects - over 300 staff, over 2 mio euro / year
Foreign Investor / Highly preferential - the participation of HLG would properly positions of the Entity within carbon cycle - foreign investment company is the preference for APB and NPC
Partners:
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International carbon standards: Double verification process
• World’s leading voluntary carbon standard
• 2011 – amended to allow Peatland Rewetting and Conservation Projects (PRC) – in frames of KfW funded project • Approved monitoring and baseline methodology is under development - in frames of KfW funded project completion in early 2012
- Voluntary Standard applied in addition to VCS - Ascertains that projects:
• minimize climate change • support sustainable development • conserve biodiversity
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International Carbon Project Cycle
Starts after finalization of national carbon cycle and receipt a Letter of Approval from the Ministry of Environment
• Registration of the project
(PDD) and verification – i.e. the process of auditing the emission reductions achieved.
• Registration involves the
preparation of a validation report and its submission (together with other relevant documentation) to the VCS Registry Operator.
• Verification involves the
preparation and submission of a verification report. Once this is approved, the VCS Registry Operator will issue VCUs
Procedure
VCS PD Valid. & Verif.
Additionality Test
Methodology existing/new
Validation report
Verificationreport
Certificationstatement
Proof of title
VCS registrySerial No.
VCU Issuance
Project developer Validator & Verifier
VCS Association(Board and Secretariat)
Registry Operator(s)
appointsaccredits
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Financial flows and ER estimation assumptions
• Project starts 2011 with first advance payment in Q2-Q3 of
2011
• All rewetting works are finalized at the beginning of 2014
• Generation of ERs from the ‘new’ rewetted sites starts
2014
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Project development beyond 2028
How much will be available:
• Balance at the Project end
(2028): c. 1 mio USD
Where the funds are to be directed:
• National regulation (Decree 466):
all income from carbon trade is to
be directed to further GHG
emission reductions activities
Project arrangements: MoU/ERPA will stipulate that surplus funds to be
directed to peatlands restoration/conservation
Beyond project decision – Project Entity Board will decide which sites to
be further rewetted or managed