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    山西碳匯項目概要文件

    發(fā)布人:碳匯林 發(fā)布時間:2010-2-12 本文類別:站內(nèi)公告 - 站內(nèi)公告

    PROJECT IDEA NOTE
     
     
     
    Project name
     
    Afforestation for Watershed Management on Shibi Mountains, Shanxi, China
    Date submitted
    March 30,  2005
     
     
    A.        Project description, type, location and schedule
     
    General description
    A.1 Project description and proposed activities
     
    The proposed project is situated at stony hills in Jiaocheng County of Shanxi Province, China, bordered with Jiaochengshan National Parks. The project area consists of stony steep valleys with mesa-buttes distributed between. The project areas are mostly bared stony land and barren land as well as a few abandoned croplands. Soil erosion is exceptional severe with erosion modulus up to 1000-2000 t/km2 on hill slopes and 500-1000 t/km2 on mesa-buttes. Due to unfavorable climate, poor soil conditions and lack of additional income, the local people live below the national poverty level, and in recent years most of them moved outside the area under the integrate arrangement of local government for poverty alleviation.
    The park linked to the project sites is an important habitat of wildlife and flora. There are over 150 species of birds, 80 species of animals, over 1000 species of insect and around 500 plant species. 21 species of animals belongs to rare and endangered wildlife under national protection. Brown eared pheasant (Crossoptilon mantrchuicum) is called as “the Provincial Bird of Shanxi”.
    There are 16 cultural relics in the project areas. Xuanzhong Temple, built in 1300 years ago, is regarded as the origin of Jintuzhong Branch of Chinese Buddhism and the origin of Japanese Buddhism.
    Additionally, coking industry is the economic backbone of Shanxi Province. However, coking has resulted in serious air pollution. The air pollution load as a result of coking in Shanxi accounts for 30 percent of the national total, with per GDP air pollution load up to 4.6 times of the national average.
    The overall goal of the project is to control soil erosion, raise cultural value, improve local air quality and enhance the viability of the livelihoods of both people and native biodiversity, while mitigating emissions of greenhouse gases, by afforestation activities. The specific objectives include:
    (1)      To sequester CO2 through afforestation/reforestation in small watersheds of stony hills.
    (2)      To improve soil erosion and water loss control.
    (3)      To enhance biodiversity conservation by increasing the buffer areas of national parks.
    (4)      To enhance the viability of local communities.
    (5)      To develop and demonstrate technical models for watershed management in semi-moist stony hills.
    (6)      To improve local air conditions
     
    To achieve the project objectives, the following activities are proposed:
    (1)     Establishing 2,800 ha of multiple-functional forests on shade slopes in Jiaocheng County of Shanxi Province. Species and model to be planted is Pinus bungeana mixed with Acer  truncatum.
    (2)     Establishing 4,200 ha of watershed conservation forests on sunny slopes in Jiaocheng County of Shanxi Province. Species and model to be planted is Platycladus  orientalis mixed with Quercus  liaotungensis
    (3)     Testing carbon purchase transactions and accumulate experience in practical and technical measures for afforestation/reforestation CDM projects;
    (4)     Monitoring and assessing the project’s environmental and social-economic impacts;
    (5)     Developing, testing and disseminating the best practice in watershed management in semi-arid stony hills.
     
    Without the additional income from the carbon transaction, afforestation in the project areas is not economically feasible. This is why most local farmers were moved outside the area in recent years under a poverty-alleviation action of local government. With the CER sales and additional income from managing the afforested lands as multiple-use plantations, the project can be economic viable and provide benefits to local communities that range from direct income supplements to broader social and environmental benefits.
     
    Planting activities (7,000 ha) will last three years, starting in 2007. Tree species to be used have been determined by interviewing national and provincial foresters and the national park linked, in consideration of carbon sequestration, biodiversity enhancement, soil erosion control and the economic value associated. Tree species will be planted in mixed species arrangements to minimize risks (fire, insect and disease) and maximize environmental and social benefits.  For example, due to the fire resistance of broadleaf species and their added environmental benefits (such as biodiversity conservation, soil erosion control), Pinus bungeana and Platycladus  orientalis will be planted on the less accessible upper part of the slopes; conversely, fire-resistant broadleaf species will be planted in more accessible place and along ridges to form firebreak belt.  The most up-to-date technologies and silvicultural models will be adopted in this project.
     
    Based on the preliminary review and consultation with individual households and communities in the project areas, a shareholding arrangements between local farmers and the Relord company will be developed, in which Local farmers provide lands as equity in return for a stake in profits, and the company invest in planting, provide technical inputs, and manage the plantation stands. Income from forest products and CER transactions will be allocated based on shares according to the contractual arrangements. In addition, local farmers have the priority to be employed by the company for the planting and management activities of the forests to be planted, and this would generate additional income for local farmers.
     
           Further interviews and consultations with farmers will be carried out in the next stage of project preparation by the social development expert team. The project production arrangements will respond to the desires of the farmers. 
     
    A.2 Technology to be employed
     
    The main technology that will be employed under this project is afforestation through direct planting with low site disturbance in degraded lands. Good practice guidance and successful regional, national and international technologies and experiences achieved in past years in forest restoration and watershed management will also be adopted, including water-holding site preparation practices.
     
    Overall ploughing will not be employed during site preparation so as to prevent soil erosion and to protect existing carbon stocks. Revetments will be built at lower slope side of planting holes to hold soil and rain water for trees. Collapsed terraces previously built for cropping will be rebuilt. Seedlings will be generated by local farmers or the Relord company, or purchased from local nurseries. Seed for seedlings are collected from local and/or regional parent tree gardens and seed orchards. No machinery will be used in site preparation, planting, weeding and thinning. However, machinery will be used for the transportation of seedlings.
     
    To improve survival and early tree growth, Pt-mycorhiza fertilizer developed by Chinese Academy of Forestry will be applied.
     
    The local forestry department/agencies, i.e., Shanxi Forestry Administration, Jiaocheng Forestry Bureaus, Shanxi Forestry Survey and Design Institute, and Shanxi Forestry Research Institute as well as Chinese Academy of Forestry will provide technical consultation and guidance. 
     
    The project design document (PDD), monitoring methodology (MM or NMM), baseline methodology (MB or NMB) and monitoring plan will be prepared and implemented based on IPCC Good Practice Guidance for Land Use, Land Use Change and Forestry, consistent with the decisions of COP meetings related to CDM afforestation/reforestation project activities, and other methodologies related to GHG estimation, measuring and monitoring.
    Proponent submitting the project
    A.3 Name
     
    Taiyuan Relord Enterprise Development Group Co., Ltd., China
    A.4 Organizational category
    (choose one or more)
    a.     Government
    b.     Government agency
    c.      Municipality
    d.     Private company
    e.      Non-Governmental Organization
     
    A.5 Other function(s) of the project developer in the project
    (choose one or more)
     
    a.         Sponsor
    b.         Operational Entity under the CDM
    c.         Intermediary
    d.         Technical advisor
    A.6 Summary of relevant experience
     
    (1)            The Taiyuan Relord Enterprise Development Group Co (the company) has business on eco-agricultural development, food development, bio-tech development, forestry development and pharmaceuticals. In last several years, it has established over 100 hectare of Chinese Jujube on local fertile sites and purchased and managed several local nurseries. It has accumulated rich experiences on seedling breeding, tree planting and management.
    (2)             The Chinese Academy of Forestry (CAF) will be the national technical advisor for the project preparation and carbon stock change monitoring and reporting. Global change and forestry issues are among the key research areas for the CAF, involving the impacts of climate change on forests and adaptation strategies, greenhouse gas emission inventory in land use, land-use change and forestry sector, policy consulting on climate change issues in the forestry sector, technical and policy aspects of the CDM, etc.
     
    CAF staff have also been the lead authors or coordinating lead author of many IPCC technical reports, such as lead author of IPCC second, third and fourth assessment report, lead authors of IPCC-LULUCF good practice guidance, coordinating lead author of the IPCC-LULUCF  definitions and GHGs emission methodology of human-induced forest degradation and devegetation, and the IPCC 2006 guidelines for national greenhouse gas inventories. Through these activities, the Climate Change and Forest Issues group in the CAF has accumulated techniques and experiences in carbon accounting, measuring and monitoring.
     
    A.7 Address
    5 floor, West Building V-7, Taiyuan Advanced Industrial Development Area, Taiyuan 030006, China
    A.8 Contact person
    Mr. Zhixin Xue
     
    A.9 Telephone / fax
     
    Tel: +86-351-7028036    Fax: +86-351-7025708
    A.10 E-mail and web address
     
     
    Sponsor(s) financing the project
    (List and provide the following information for each project sponsor)
    A.11 Name
     
     Taiyuan Relord Enterprise Development Group Co., Ltd
     Local farmers
    A.12 Organizational category
    (choose one or more)
    a.         Government
    b.         Government agency
    c.         Municipality
    d.         Private company
    e.         Non-Governmental Organization
     
    A.13 Address
    (include web address)
     
    5 floor, West Building V-7, Taiyuan Advanced Industrial Development Area, Taiyuan 030006, China
     
    A.14 Main activities
    Eco-agricultural development, food development, bio-tech development, forestry development and pharmaceuticals, etc.
     
    A.15 Summary of the financials of the project sponsor
    (total assets, revenues, profit, etc.).
     
     
    The Taiyuan Relord Enterprise Development Group Co., Ltd, was found in 1995 with a registered capital of 50 million yuan. In 2004 it own a total asset of 238 million yuan, a debt of 101 million yuan and an annual profit up to 31 million yuan. They were 197, 74 and 13 million yuan in the year 2003 respectively.
     
     
    Type of project
    A.16 Greenhouse gases targeted
     CO2 / CH4 / N2O
     
    A.17 Type of activities
    Sequestration / Conservation
     
    A.18 Field of activities
     
     
    Rehabilitation of degraded lands to forest
    Landscape rehabilitation.
    Location of the project
    A.19 Country
     
    China
    A.20 Nearest city
     
    Jiaocheng County, Shanxi Province
    A.21 Precise location.
     
         The proposed project sites are located within 11 villages of Hongxiang Township, Jiaocheng County of Shanxi Province. It is directly linked to Jiaochengshan National Parks. The involved 11 villages and their geographical positions are as follow:
    (1)     Yaoertou village: 11.5 km western away from the county town, 112o03’E and 37 o32’N. Linked to Xuanzhongshi Temple
    (2)     Huangya village: 17.5 km western away from the county town, 112o00’E and 37 o32’N.
    (3)     Gedongpo  village: 19 km western away from the county town, 112o01’E and 37 o33’N.
    (4)     Fanjiazhuang Village: 20 km western away from the county town, 112o02’E and 37 o33’N.
    (5)     Xizhuang Village: 14.5 km western away from the county town, 112o01’E and 37 o34’N.
    (6)     Xiling Village: 14.5 km western away from the county town, 112o01’E and 37 o34’N.
    (7)     Luoziling Village: 24 km northwestern away from the county town, 112o02’E and 37 o35’N.
    (8)     Touzhu Village: 22 km northwestern away from the county town, 112o02’E and 37 o35’N.
    (9)     Peijiashan Village: 15.5 km northwestern away from the county town, 112o04’E and 37 o35’N.
    (10) Huaiwuan Village: 6 km western away from the county town, 112o05’E and 37 o32’N.
    (11) Shengjiazhuang Village: 14 km northwestern away from the county town, 112o03’E and 37 o34’N.
     
    Expected schedule
    A.22 Earliest project start date
    (Year in which the project will be operational)
     
    FY 2007
     
    A.23 Year of the first expected CER / ERU / lCER / tCER / RMU / VER delivery
     
    2006 / 2007 / 2009
     
    Its is assumed that the first certification will be carried out in the year 2012, six years after planting, when carbon stock changes in biomass will be discernible.
    A.24 Project lifetime
    (Number of years)
     
    20 years renewable
    Starting in 2007
    A.25 Current status or phase of the project
    a.                   Identification and pre-selection phase
    b.                   Opportunity study finished
    c.                    Pre-feasibility study finished
    d.                   Feasibility study finished
    e.                    Negotiations phase
    f.                    Contracting phase
     
    A.26 Current status of the acceptance of the project by the Host Country (choose one)
    a.         Letter of No Objection is available
    b.         Letter of Endorsement is under discussion or available
    c.         Letter of Approval is under discussion or available
     
    A.27 Position of the Host Country on the project (Are carbon sinks encouraged as CDM/JI activities? Describe the legal relationship between the Project Sponsor and the Owner of the future Emission Reductions? If the Project Sponsor intends to sells the Emission Reductions, is the Sponsor allowed to do so legally? Has the Host Country endorsed the project? If not, when will it do so? Is there a risk the Host Country will not endorse the project?)
     
    The Chinese government signed the Kyoto Protocol on May 29, 1998 and approved it on August 30, 2002. Therefore China is eligible to participate in the Clean Development Mechanism (CDM) process.
     
    To effectively promote and govern CDM project activities in China, the Chinese government issued the Interim Measures for Operation and Management of CDM Projects on May 31, 2004. These measures stipulate permission requirements, institutional arrangement for project management and implementation, project procedures and other related issues for CDM project activities. These interim measures took effect on June 30, 2004.  Based on the interim measures, the Chinese Government allows any sponsor to apply, invest and implement a CDM project activity as long as it meets basic requirements stipulated in the interim measures.
     
    The State Forestry Administration (SFA) is interested in exploring the use of carbon as a finance mechanism for forest restoration on degraded lands and for watershed management. In early 2004 the Carbon Sink Office (CSO) was established under the SFA aiming to encourage and effectively motivate CDM forestry activities in China. A series of training courses and workshops have been conducted and further actions are already under design. Policy and regulations to govern the forestry CDM project activities are also imminent. The DNA, China Climate Changing Coordination Office and the Ministry of Finance have also expressed their support to the project.
     
     
    A.28 Position of the Host Country with regard to the Kyoto Protocol
    (choose one)
    The Host Country
    a.         Is a Party to the Kyoto Protocol (i.e. has ratified or otherwise acceded to the Kyoto Protocol)
    b.         Has signed the Kyoto Protocol and demonstrated a clear interest in becoming a Party in due time
    c.         Has not signed the Kyoto Protocol
     
     
    B.   Expected environmental and social benefits and risks
     
    Environmental benefits and risks
    B.1 Baseline scenario
    (Please describe the most likely scenario in the absence of the proposed project and explain why the project leads to more carbon being sequestered than would otherwise occur. What would the future look like without the proposed project? Different scenarios may be envisaged, including the continuation of a current activity (“business-as-usual”), implementation of the proposed project activity and many others.)
     
    The sites to be planted were un-forested land over a hundred year ago. In 1960s and 1970s, part of lands was cultivated as cropland, taking about 35%. Due to lack of protection of forest vegetation, steep slope and over-grazing, the project areas have been steadily degrading over the last decades, and the local farmers have been living far below the poverty level due to the very low productivity of the cropland. Since 1990s, local government has been conducting a poverty alleviation programme in which local farmers are moved outside the area and local government allocates new lands and provides new residence and livelihood for them. Currently most of local farmers have moved and a few left are moving outside. Therefore all croplands will become abandoned soon.
     
    Currently barren lands within the project boundary are occupied by grass. Grass is also growing in abandoned cropland. However trees are not likely to growth naturally due to atrocious site conditions. Although both national and regional governments have set an overall development goal for forestry development, meeting the goal depends largely on the availability of sufficient funds and technical know-how. Government funds have not been available for afforestation in this region for many years and as project sites are severely degraded, with severe soil erosion, water loss, drought and stony soil, planting is costly and young trees are very difficult to survive, as a result, planting activities are not commercially attractive. Some trees are scattering beside abandoned cropland and farmer’s houses, but both the crown coverage of trees and land size are far below the threshold of forest definition, and they are aged and their biomass stock is not likely to increase too much. Therefore, without the proposed project activities afforestation is not likely occurring and carbon stocks are not expected to increase, and may even decrease further as the lands continue to steadily degrade.
     
    For purposes of calculating the net anthropogenic greenhouse gas removals by sinks of the project, we use existing changes in carbon stocks in the carbon pools within the project boundary as our baseline approach. The project areas are still undergoing a net decrease in carbon due to continued soil erosion (even if grasses are growing on lands). 
     
    In order to be conservative, we choose to account living biomass pool even though soil carbon stock may be likely to reduce, and assume the baseline of the living biomass pool to be constant, even though living biomass in the project areas will continue to be reduced based on current changes, e.g., the baseline net greenhouse gas removals by sinks is assumed to be zero.
     
    Since the baseline carbon stocks are quite low and there are almost no existing trees, planted trees would sequester a large extra amount of carbon from the atmosphere over and above the baseline scenario.
     
     
    B.2 Estimate of carbon sequestered or conserved
    (in metric tonnes of CO2 equivalent – tCO2e. Please attach spreadsheet.) Please base estimates on the difference between the proposed project activity and the baseline scenario identified in B.1.
     
    Up to and including 2012:  237,180 tCO2e
    Up to a period of 7 years: 287,848 tCO2
    Up to a period of 10 years:  435,351 tCO2e
    Up to a period of 14 years: 621,524 tCO2e
    Up to a period of 20 years: 878,284 tCO2e
    Up to a period of 30 years: 1,246,224 tCO2e
    Up to a period of 40 years: 1,539,170 tCO2e
     
    The estimates in this document include carbon stored in living stems, branches, leaves and roots. We assume soil carbon stock will not decrease since planting tree on barren land and abandoned cropland will not result in reduction of carbon stock in soils. Dead organic matter is also unlikely to decrease.
     
    Local growth data for the degraded lands are used to estimate the biomass stock change achieved by the project activities. These data were derived from local forestry inventories data.  Carbon stock changes in living biomass as a result of thinning are accounted accordingly. Harvesting will not occur until over 60 year-old.
     
    Growth data (standing volume per hectare, figure below) are converted                                into biomass through wood density of stemwood (WD, t dm/m3) and Biomass Expansion Factors (BEF) that expand stem biomass to whole tree biomass. Both WD and BEF are based on data used for LULUCF GHGs inventory in China’s initial national communications on the subject. As BEFs usually decrease with the increase of stand age, current age-independent BEFs tend to underestimate carbon of young stands, so our estimation is conservative. Biomass equations will be developed after the start of the project so as to monitor the actual biomass stock changes. The Figure below shows calculated biomass stock changes per hectare for different species.
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

    Since the planting will be carried out in three age cohorts from 2007 to 2009, carbon sequestration for each species planted in different years was calculated separately, and was added up at the end. Furthermore, there will be no drainage, fertilization, machinery running and/or other activities within the project boundary that will cause the increase in greenhouse gas emissions, hence the living biomass stock change is equal to actual net greenhouse gas removals by sinks.
     
    The leakage is expected to be very small or nil (refer to B4 below).
     
    The net anthropogenic greenhouse gas removals by sinks is the actual net greenhouse gas removals by sinks minus the baseline net greenhouse gas removals by sinks minus leakage. The net anthropogenic greenhouse gas removals by sinks expected to be achieved and their changes during the project are shown in the Figure below. Please see attached Excel file (Carbon Sequestration Estimation) for details.
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

    B.3 Existing vegetation and land use
     
     
    How much land has a tree cover of
    < 10%:   100%
    10-30%: 0%
    > 30%:   0%
     
    The 7000 ha of project sites fall within 11 villages of Hongxiang Township, Jiaocheng County of Shanxi Province. These sites to be planted were un-forested land over a hundred year ago. In 1960s and 1970s, part of lands was cultivated as cropland. However, due to the very low productivity of the cropland and lack of alternative income, the local farmers have been living far below the poverty level. Currently most of local farmers have moved outside the areas under the poverty alleviation programme of local government and a few left are still moving. Therefore all croplands will become abandoned soon, taking up 35 percent.
    Currently barren lands within the project boundary are occupied by grass. Grass is also growing in abandoned cropland. There are scattering trees growing beside abandoned cropland and farmer’s house, but the crown coverage and land size is far below the threshold of forests. The land cover map in 1991 was as follow.
     
     
    Land cover map in 1991 (to be added later on)
     

    Abandoned cropland
    Trees scattering beside a few abandoned cropland
     

     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

       
    B.4 Leakage (Do the activities planned under the project cause leakage, i.e. greenhouse emissions outside the project and baseline boundary? E.g., will agricultural or pastoral activities be displaced from the project sites to other locations? Please also say if the current level of LULUCF activities in the country would be reduced by the project coming on-line due to a process of resource reallocation?)
     
    The purpose of the current project, inter alia, is to restore un-productive degraded lands and abandoned cropland. The total absence of funding for afforestation activities in project areas and the general prohibition on logging natural forests underline the fact that the project will not contribute to any reduction in afforestation activities or increase in deforestation activities elsewhere.
     
    Furthermore, the proposed lands to be used for afforestation are un-productive barren lands and abandoned cropland, and are not used as agricultural production. All local farmers are removed outside the areas by local government. As a result of the project activities, local farming activities will not need to be displaced to land outside the project boundary.
     
    Seedlings are will be bred and/or purchase from local nurseries. The transportation of seedlings will result in greenhouse gas emission,  and this will be monitored during the implementation of the project activities.
     
    Site preparation, planting, weeding, thinning, harvesting and other related activities will be carried out by local people and vehicles and machinery will not be used. Therefore, increased carbon emissions and related leakage from these activities will not likely occur.
     
    Market leakage is also assumed to be minimal to nonexistent because there is a severe shortage of timber in the region. In fact, the project might have positive effects even outside the project boundary, as the additional wood production will help to reduce pressure on ecosystems nearby. The good practices and techniques developed and adopted in this project will be extended to other regions to generate spillover effects.
     
    B.5 Local environmental benefits and risks (Please also refer to Annex 4 on environmental benefits and risks.)
     
    Environmental Benefits:
     
    Through establishing 7000 ha of forests, the proposed activities will provide the following additional local environmental effects.
     
    l       Enhancing biodiversity by:
    ü                  Increasing the effective size of protected forests (forest park habitats with important wildlife and flora), enhancing the survival of many species in the long-term, and will help improve the status of currently unprotected species.
    ü                  Generating increased income for local communities from the project activities. This will reduce their tendency to degrade biodiversity through practices such as poaching, forest fires and illegal logging and NTFP collection in the forest park.
    l       Controlling soil erosion
    l       Improving air conditions
    l       Reducing air pollution through providing sustainable firewood for local communities to replace coal.
    l       Improving watershed management and contributing to ecosystem improvement through demonstration and extension of the project experience to other areas.
     
    Environmental Risks:
     
    All the species selected for the project planting are native to local. However, because of the afforestation activities planned under the project, there are risks from disease, pests and fire, among other things. The project design will identify these risks, and work to manage them appropriately through the use of best practice and the latest innovative technologies.
     
    B.6 Consistency between the project and the environmental priorities of the Host Country
     
    The Chinese Government has paid great attention to eco-environmental development. Since the 1980s, China has successively issued forestry-related laws and regulations, including laws for combating desertification, for preventing forest fires and for controlling plant disease. China has also been actively involved in a series of international actions and has formulated and implemented the China Forestry Action Plan in the 21st Century, China Biodiversity Conservation Action Plan, China Wetland Conservation Action Plan and so on. In last 5 years, the State Forestry Administration has initiated six key forestry programs to support the forestry development strategy.
     
    Shanxi is one of China’s key regions for biodiversity conservation and watershed management in China. In response to the national and regional strategy, the 2010 Shanxi Forestry Development Outline has been formulated by the local government. The objective of proposed project is consistent with both national and provincial forestry development strategies.
     
    Socio-economic benefits and risks
    B.7 How will the project improve the welfare of the community involved in it or surrounding it? What are the direct effects, which can be attributed to the project and which would not have occurred in a comparable situation without that project?
    (e.g., employment creation, poverty alleviation, foreign exchange savings). Indicate the number of communities and the number of people that will benefit from this project. Please also refer to Annex 5 on community benefits and risks.
     
    Socio-economic benefits:
     
    The local people will directly participate in the afforestation activities such as site preparation, planting, weeding, thinning, harvesting, etc. and benefit from the project. It is expected that farmers from 11 villages will benefit from the proposed project. The main socio-economic benefits of the project include:
     
    (1)             The project activities will create about 2,751,000 person/day employment opportunities for the local farmers;
    (2)             At least 70 permanent employment positions will be provided for local farmers.
    (3)             About 3,500 local farmers from around 700 households will benefits from the proposed project.
    (4)             It is expected that the income of local farmers will be doubled within 10 years after the start of the project, through CER transaction and selling forest products generated by the project;
    (5)             Forests established under the project would provide sustainable fuelwood to the local communities.
    (6)             Improving scenery of cultural relics and promoting tourism.
     
    B.8 Are there other effects?
    (e.g., training/education due to the introduction of new technologies and products, replication in the country or the region)
     
    A vital component of the project is capacity building; without training and other technical assistance there would certainly be a risk of poor performance in some project activities. The project includes strengthening of local capacity by:
     
    (1) Developing, testing and disseminating local best practice; introducing improved silvicultural and forest management technologies; disseminating extension materials; and providing training and technical assistance to the project beneficiaries.
     
    (2) Establishing legal structures to aide in the sale of CERs; and testing carbon purchase transactions to accumulate practical experience and technical knowledge on reforestation-related CER programs.
     
     
     
     
    C. Finance 
     
    Project costs
    C.1 Preparation costs (feasibility studies, monitoring plan, PDD, etc.)
     
    US$ 0.20 million
    C.2 Establishment costs (site and soil preparation, seedlings, planting, weeding until planting is completed)
     
    US$ 4.93 million
    This is the cost of plantation establishment, which includes the cost of site and soil preparation, seedling, planting, and weeding within the first three years after planting. Since the planting activities will last three years, the plantation  establishment period will be five years (2007-2011).
    C.3 Operating costs (from planting onwards and for the duration of the project)
     
    US$ 3.27 million for 20 years
        This operation cost includes the cost for tree stand maintenance, and thinning during the project period (20 years) following the establishment period.
    C.4 Other costs (explain)
     
    US$ 0.50 million
       US$ 0.10 million for carbon accounting, carbon stock change and social environmental impacts monitoring, biomass equation development
    US$ 0.15 million for workshops, training, demonstration, planting design, validation and registration, etc
    US$ 0.25 million for equipment, project management, etc.
     
    C.5 Total project costs
     
    US$ 8.90 million
    Sources of finance to be sought or already identified
    C.5 Equity (Include names)
     
    US$ 4.48 million
        The company
    C.6 Debt – Long-term
    (Include names of lenders)
     
    US$ 2.42 million
        Local business bank
    C.7 Debt – Short term
    (Include names of lenders)
     
    C.8 Not identified
     
     
     
    C.9 Sought in upfront payment
     
    US$ 2.00 million
     Used for the establishment of forests
    C.10 Sources of carbon finance
    (Has this project been submitted to other carbon buyers? If so, say which ones?)
     
    N/A
    C.11 Indicative CER / ERU / lCER / tCER / RMU / VER price (subject to negotiation and financial due diligence)
     
    About 8.0 US$ per tCER or lCER. ( final price will be determined during the contract negotiation stage).
    C.12 Emission Reductions Value
    (= price per tCO2e * number of tCO2e)
     
     
       Until 2012
     
    US$ 1,897,440for 237,180 t CO2e
       For 7 years (2013)
     
    US$ 2,302,784 for 287,848 t CO2e
       For 10 years (2016)
     
    US$ 3,482,808 for 435,351 t CO2e
       For 14 years (2020)
     
    US$ 4,972,192 for 621,524 t CO2e
       For 20 years (2026)
     
    US$ 7,026,272 for 878,284 t CO2e
       For 30 years (2036)
     
    US$ 9,969,792 for 1,246,224 t CO2e
       For 40 years (2046)
     
    US$ 12,313,360 for 1,539,170 t CO2e
    C.13 Financial analysis
    (If available for the proposed CDM / JI activity, provide the financial internal rate of return (FIRR) for the project with and without the CER / ERU / lCER / tCER / RMU / VER revenues. Provide the financial rate of return at the expected CER / ERU / lCER / tCER / RMU / VER price above and also at US$4/tCO2e. Assume 20 years of carbon payments even though the BioCF will not be able to pay beyond 2017. Please attach financial analysis spreadsheet using format referred to in Annex 2.)
     
    FIRR without carbon: 5.33%
     
    FIRR with carbon: 18.96% for a price of8US$ per unit of CER
     
     
     
     

    Annex 1: LULUCF Project Categories
     
     

    Code

    Afforestation and reforestation[1]

    1
    Rehabilitation of degraded lands (e.g. Imperata grasslands) to
    1a
    forest
    1b
    Agroforestry
    2
    Reforestation of degraded temperate grasslands or arid lands by tree planting
    3
    Establishing tree/shade crops over existing crops (e.g. coffee)
    4
    Plantations for wood products
    4a
    Small scale landholder driven
    4b
    Commercial scale
    5
    Landscape rehabilitation through planting corridors etc
    6
    Fuel wood plantings at a commercial scale

     

    Forest Management

    7
    Improved forest management via fertilizer, in-plantings etc
    8
    Improved fire management
    9
    Reduced impact logging
    10
    Alternatives to fuel wood for forest/environmental protection

     

    Cropland management

    11
    Reduced till agriculture
    12
    Other sustainable agriculture

     

    Grazing land management

    13
    Revegetation of semi-arid and arid lands with shrubs or grasses
    14
    Improved livestock management leading to vegetation and soil recovery
    15
    Bio-fuels: Use of biological residue to produce energy
    16
    Other
     
     
     


    [1] This is the only class of activities accepted under the CDM for the first commitment period

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