LM: In the pipeline: Redd projects in asia: November 03, 2008

IN THE PIPELINE: REDD PROJECTS IN ASIA

Under the UN-backed Reduced Emissions from Deforestation and Degradation (Redd) process, rich nations would meet some of their emissions reduction targets by buying carbon credits from developing nations, whose forests soak up vast amounts of planet-warming carbon dioxide (CO2). Following are some of the Redd projects under way or announced in Asia, aimed at a formal integration of the process into the Kyoto Protocol’s successor from 2013.

ULU Masen forest, northern Aceh

Covers 750,000ha as designated carbon forests. Project involves law enforcement, reforestation and community funding and development to reduce deforestation by 85% and prevent an estimated 3.4 mt of CO2 being emitted annually, or a total of 100 mt over the project’s 30-year life. First Redd project to earn the internationally recognized Climate, Community and Biodiversity standard. Project involves Aceh government, Carbon Conservation of Australia, Merrill Lynch and International non-profit NGO Fauna and Flora International. Merrill has signed a multi-million dollar agreement to buy voluntary carbon credits in a deal running from 2008-13.

FFI and Macquarie Group

Fauna and Flora International and Australia’s Macquarie Group have signed a deal to invest in six Redd projects globally, three of them in Indonesia. Two are in West Kalimantan, on Borneo island, for which memorandums of understanding (MOUs) have been signed with the local government and the third is in Papua province on New Guinea island. The other three projects are in Cambodia, Liberia and Ecuador.

New Forests and Papua

International forestry investment firm New Forests and the government of Indonesia’s Papua province have pledged to protect 200,000 ha. Initial estimates suggest the project could save up to 40 mt of CO2 being emitted over 15-20 years. A large portion of verified emission reductions (VERs), estimated to sell for between $4 and $10 a tonne, are to be placed in a perpetual endowment fund for local communities in and around the preserved tracts of forest. Australia-Indonesia Forest Partnership Australia and Indonesia last year signed the Kalimantan Forests and Climate Partnership, with total investment targeted at A$100 million. The Australian government has pledged A$30 million to the scheme over four years and the project aims to protect 50,000ha of forest and flood and replant at least 50,000ha of drained and cleared peat swamp. The project is aimed to help both countries learn how to design and carry out Redd schemes.

World Bank Forest Scheme

The bank’s forest carbon partnership facility aims to gather $300 million in contributions from rich nations to help at least a dozen developing countries, such as Vietnam, Costa Rica and Madagascar, prepare for Redd schemes. The programme aims to help nations figure out credible estimates of their national forest carbon stocks as well as offer technical aid to design individual Redd projects.

UN-Redd Programme

The UN is running a separate Redd programme to help developing nations get ready for the scheme. So far, $35 million has been committed.