Case Study: Opportunities
for Carbon Forestry
Activities in France
2 degrees Webminar – 09th of June 2010
Carbon Management Working Group
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CDC Climat,
the newest subsidiary of Caisse des Dépôts
3 fields of expertise
Market infrastructures
Trustworthy financial services: VCS register for voluntary offset, REI (registry backoffice), Seringas (national registry software), GCP (carbon asset back-office, in the
project stages)
Carbon market operators : BlueNext exchange (40%)
Investments in carbon assets
Carbon funds : European Carbon Fund, Post-2012 Carbon Fund, Fonds Capital
Carbone Maroc
Domestic projects
Broker: Sagacarbon (wholly owned subsidiary)
Research
Three areas: European Union Emissions Trading Scheme – Role of regional authorities
– Project based mechanisms
Expertise, conferences and publications
2
Objectives
► Understand
the context:
Forestry projects in Annex 1 countries
► Evaluate
the potential in
France:
Types of projects? How
much carbon in the medium term?
► Is
it feasible though? :
Challenges and perspectives
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“Kyoto” balance of the French Forest in 2008
► No-loose
target for reforestation/deforestation
► Ceiling for forest management
Net sink
(83 971,21 ktCO eq)
2
Net sink
(1,242 ktCO eq)
2
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What happened to forestry JI in France?
►
JI principle: the state must surrender “Kyoto” units (AAUs)
■
The case of New Zealand
•
•
•
■
3.3 positive balance
Land-use changes included in the ETS:
allocation to forest owners, offset credits for reforestation
3.4 accounting not elected
The case of France
•
•
3.3 balance close to zero, state of uncertainty
3.4 accounting elected
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Current valuation of Forest carbon in France
4 mitigation levels, 2 are currently valued, one partly
Forest Carbon
Stock
Forest: 2 400 Mm3 of standing wood
Annual growth: 103 Mm3
Total annual harvest: 67,7 Mm3
Self-consumption
22 Mm3 (firewood)
Wood products
carbon stock
Energy
2,8 Mm3
Commercialised harvest
37,7 Mm3
Industry
12,2 Mm3
(paper and boards)
Dead wood and losses
8 Mm3
Timber
22,7 Mm3
(building and woodworks)
Material
substitution
Energy
substitution
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2 out of 4 effets could be valued in the voluntary markets…
Markets and beneficiaries (the case of France)
Mitigation
effect
Relevant market
Who currently has the
incentive?
Energy
substitution
Compliance
Energy producer
Product
substitution
Compliance
Final user
(eg. construction)
Wood product
sequestration
Voluntary
None
Forest
sequestration
Voluntary or compliance
None
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Potential voluntary standards
Additionality
Permanence
•A/R, IFM, LLWP
• A/R, IFM, LLWP
•Ex-post credits
• Buffer approach
• Certification of the •20 % buffer
retirement of AUs
from the national
accounts
•Performance
Criterion
•Ex-post credits
Double counting
• A/R only
• Standard
negotiates with the
DNA to deal with DC
•Ex-post and
ex-antecredits
• Forestry projects
• Not crediting
• Other benefits:
Biodiversity and
communitary
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Feasible? Under which standard?
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How much carbon in 25 years?
Project level
Certifiable in VCM
FS+ LLWP=
84 tCO2/ha =
3,4 tCO2/ha/year
Certifiable in VCM
LLWP=
3,1 MtCO2 = 120 ktCO2/year
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How much carbon in 25 years?
National level
30 000 ha/year
36 MtCO2e in 25
ans
21 300 ha/year
20 MtCO2e in 25
ans
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Challenges ahead…
►
Change prospects
■
■
■
►
Distribution of existing carbon value
Valuing carbon stocks (forest and wood products) on voluntary
markets
Valuing carbon stocks on compliance markets
Challenges on voluntary markets
■
■
■
■
■
Double-counting
Methodology development and validation
Tools to assist forestry owners in project development
Additionality
Stakeholder organisation – Establishment of department/regional
project pools
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Club Carbone Forêt-Bois
Carbon Forest & Wood Club
(CFWC)
Corporate and public
sponsors
Research and
development teams
Federation of research efforts on forest carbon in Annex 1
countries
Analysis of
existing
mechanisms
Learning by doing
Development of
economic tools
→ Past projects
→ methodologies
→ Pilot projects
→ other
mechanisms
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►Q
&A
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Thank you for your attention
The full report is available at:
http://www.cdcclimat.com/IMG/pdf/20_Etude_Clim
at_EN_Getting_carbon_value_out_of_the_forest_a
nd_wood_sector.pdf
To know more about the Carbon Forest & Wood Club
http://www.cdcclimat.com/Club-Carbone-ForetBois-The-Forest.html?lang=en
Contact:
Mariana Deheza, [email protected]
www.cdcclimat.com
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