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EX-ANTE CARBON BALANCE TOOL PRESENTATION OF THE TOOL AND SOME - - PowerPoint PPT Presentation

EX-ANTE CARBON BALANCE TOOL PRESENTATION OF THE TOOL AND SOME APPLICATIONS JUNE 2020 EX-ACT FAO Regional Office for Africa Team LOUIS BOCKEL PADMINI GOPAL OUTLINE Presentation of the tool Role of the tool Why using EX-ACT?


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SLIDE 1

EX-ANTE CARBON BALANCE TOOL

PRESENTATION OF THE TOOL AND SOME APPLICATIONS JUNE 2020

EX-ACT – FAO Regional Office for Africa Team LOUIS BOCKEL PADMINI GOPAL

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SLIDE 2

OUTLINE

Presentation of the tool

 Role of the tool  Why using EX-ACT?  The structure and logic of the tool  Outputs

 EX-ACT Applications

 Worldwide visibility  Some examples in diverse countries

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SLIDE 3

BRIEF REASON & BACKGROUND OF TOOL DEVELOPMENT

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SLIDE 4

Partnership FAO Investment Center TCI Policy Support Service TCS

  • Ag. Economics Division ESA

IRD (French Development Research Institute) World Bank

GIZ, IFAD, AFD (France), ADB, SEI (Sweden), ADEME (France)

 EX-ACT is a FAO tool to estimate the mitigation impact of agricultural and forestry projects External partnership  it supports decision-making for agriculture and forestry planning, policies and investment projects

A PARTNERSHIP

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SLIDE 5

Agriculture forestry And other land use

Threatened by climate change Responsible for 1/3 of total GHG emissions Huge potential to cost-effectively mitigate

The main GHG emission sources/removals and processes in managed ecosystems (After IPCC Volume 4 Chapter. 1 Introduction) HWP=Harvested wood products

Decrease sources Increase sinks

3 accounted GHG : CO2, CH4, N20 Mitigation

70 % of agriculture mitigation potential In developing countries

AGRICULTURE & CLIMATE CHANGE

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SLIDE 6

Need for a simple tool that helps project designers to integrate climate mitigation concerns as part of AFOLU* policy and project planning. In particular: Lack of operational tools Tools under UNFCCC/KP UNFCCC/KP Tools = Flowchart + Equations + Default values

*AFOLU: agriculture, forestry and land use

THE NEED OF A NEW SIMPLE TOOL

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SLIDE 7

Lack of tools to screen the entire agricultural sector

THE NEED OF A NEW SIMPLE TOOL

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SLIDE 8

Need for an acceptable method which: measures C-balance impact in ex-ante appraisals, complements usual economic analysis, and fits within the time constraints of formulation process. Simple Practical Cost effective Upgradable

  • vertime

Information that :

  • scientists can quantify/use,
  • farmers/project developers

can understand/use Up-scaling (Able to extrapolate to region, watershed and community level)

Transparency

THE NEED OF A NEW SIMPLE TOOL

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SLIDE 9

2008 2009 2010 Concept note Tool design Pilot desk and field cases: Tanzania, Brazil, Eritrea, Madagascar, China EX-ACT v1

  • Tech. Guidelines

User guides Peer review EX-ACT v2 Web site A simple tool to provide rapid ex-ante estimations of the impact of agriculture and forestry development projects on GHG emissions and carbon sequestration, using available data (cost-effective) and fitting within standard project formulation or evaluation format. TCS TCI ESA

HISTORY

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SLIDE 10

2008 2009 2010 2011 One tool, several potential uses

Identifying externalities Anticipating GHG and carbon impacts of agriculture and forestry activities in a development context Strengthening value chains Help to get additional funding Support policy decision-making

Capacity building

Scaling up and interaction

….HISTORY

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SLIDE 11

INTRODUCTION OF THE EX-ANTE CARBON BALANCE TOOL

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WHAT IS EXACTLY EX-ACT?

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

An Excel based tool to quantify the amount of GHGs

released or sequestered from activities in the AFOLU sector

Requires activity data on agricultural practices,

resource use and land use change

Calculates estimated GHG impacts in tonne of CO2-e

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SLIDE 13

MAIN LOGIC OF EX-ACT

The EX-Ante Carbon balance T

  • ol (EX-ACT): Logic and Application

Takes into account activities that impact GHG fluxes (emissions and sinks)

Deforestation, A-Re/forestation, forest degradation, Restoration of grasslands, livestock, cultivation of annual crops, cultivation of perennial crops, fertilization of crops, installation of building, installation of irrigation systems...

CO2, CH4, N2O

  • r stock changes from and to different carbon pools

above-ground biomass, below-ground biomass, soil, litter and dead wood

GHG EMISSIONS CARBON STOCK CHANGES Positive result : There are more emissions  Negative result: There are less emissions 

MITIGATION !

Carbon balance in t of eq-CO2 Takes into account activities that impact GHG fluxes (emissions and sinks)

  • r stock changes from and to different carbon pools
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WHAT IS EXACTLY EX-ACT? EX-ACT leads policy officers & project designers to elaborate two different development scenarios for the AFOLU sector:

 A “business-as-usual” scenario -> in absence of any

intervention

 A “policy/project scenario” -> strengthening

targeted & sustainable development

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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SLIDE 15

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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Gross and Net balance in CO2-e ha-1 yr-1

1 Description

Results

8 major categories

  • 2. Land Use Change

Deforestatio n Reforestation Other

  • 3. Crop production

Annual crops Perennial crops Irrigated rice

  • 4. Pasture and Livestock

Pastures Livestock

  • 5. Degradation

Forest Organic soils

  • 7. Investment and infrastructure

Inputs Energy Construction

  • 6. Coastal wetlands
  • 8. Fisheries & Aquaculture

Fisheries Aquaculture

Soil Climate

Localization Default agroecological zones and EF and coefficients

Matrix of change

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SLIDE 17
  • Different areas of land uses and land use changes in ha
  • Management practices (residue burning, improved agronomic practice, nutrient

management, organic management, tillage management)

  • Quantities of inputs used
  • For livestock, evolution of herd
  • Energy consumption
  • Investments in infrastructure

Activities foreseen … that may impact on mitigation (GHG reduction/releases) What is the current situation ? What would happen in the future if the project is not implemented ? What is expected in the future if the project is implemented ?

A FIRST LOOK AT MAIN DATA NEEDS

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THE STRUCTURE AND LOGIC

Time (years)

Implementation phase

With project Without project

Capitalization phase

Difference used to compute the final C balance in tonne CO2 equivalent

Variable considered (ha of land use, number of cattle heads,…)

x0 x1 x2

3 different dynamics of change (adoption) of practices

Benefits of the project

t0 t1 t2

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SLIDE 19

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

DYNAMICS OF CHANGE

The implementation phase defines in EX-ACT the period

from start to finalization of project activities

Any activity may be implemented with a different pace over

time

Absolute Change (x1-x0)

t0 t1 “Immediate” “Linear” “Exponential” t0 t1 t0 t1

Time (years) Default option in Tier 1 3 different dynamics of change (adoption) of practice

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AN EXAMPLE...

Future without project 7 000 ha of deforestation 1 000 ha of afforestation 1 000 ha annual crops (conventional tillage, burning) 1 000 ha establishment of perennial crops 1 500 cattle under conventional practices

More or less GHG’s released ?

Future with project 2 500 ha of deforestation 2 000 ha of afforestation 1 000 ha annual crops (residue mulching, organic manure) 1 500 ha establishment of perennial crops 500 cattle with improved feeding practices

The Gross Results of a specific scenario are defined as the overall impact from all GHGs expressed in CO2 equivalents that were emitted or sequestered due to its implementation. The Carbon-Balance is defined as the marginal difference in Gross Results between the project scenario and the business-as-usual scenario.

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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SLIDE 21

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

GROSS RESULTS

Component of Gross fluxes Gross fluxes the project Without With tCO2eq tCO2eq Land Use Changes Deforestation 70,000 25,000 Afforestation

  • 10,000
  • 20,000

Other Agriculture Annual 10,000

  • 5,000

Perennial

  • 10,000
  • 15,000

Rice Grassland & Livestocks Grassland Livestock 15,000 5,000 Degradation 5,000

  • 10,000

Inputs & Investments Total 80,000

  • 20,000

 Emissions:

100 000 t 30 000 t

 Sequestration:

  • 20 000 t -50 000 t

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

GROSS RESULTS

30

  • 50
  • 20

100

  • 20

80 EMISSIONS SEQUESTRATION TOTAL t CO2-eq with without

+ =

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

THE CARBON BALANCE

Component of Gross fluxes Gross fluxes the project Balance Without With tCO2eq tCO2eq Land Use Changes Deforestation 70,000 25,000

  • 45,000

Afforestation

  • 10,000
  • 20,000
  • 10,000

Other Agriculture Annual 10,000

  • 5,000
  • 15,000

Perennial

  • 10,000
  • 15,000
  • 5,000

Rice Grassland & Livestocks Grassland Livestock 15,000 5,000

  • 10,000

Degradation 5,000

  • 10,000
  • 15,000

Inputs & Investments Total 80,000

  • 20,000
  • 100,000

_ = +

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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THE CARBON BALANCE

  • 20

80

  • 100
  • 120
  • 100
  • 80
  • 60
  • 40
  • 20

20 40 60 80 100 with without C balance T CO2-EQ

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

THE METHODOLOGY BEHIND THE TOOL

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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Other Coefficients

The methodology behind the tool

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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 Default emission factors are provided as first option and reference, but...

2.1. Deforestation

Available Ecological zone 1.Tropical rain forest - 2.Tropical moist deciduous forest - 3.Tropical dry forest - 4.Tropical shrubland You have indicated that your are using the following types of vegetation Forest Zone 1 Use this part only if you want to refine analysis with Tier 2 coefficients All values are in t of carbon per ha (tC/ha) (default values are provided for your information only, while EX-ACT will use Tier 2 values automatically wherever specified) Type of vegetation (that will be deforested) Above-ground Below-ground Litter Dead wood Soil C Default Tier 2 Default Tier 2 Default Tier 2 Default Tier 2 Default Tier 2 Forest - Zone 1 141.0 52.2 3.7 0.0 60.0 Forest - Zone 2 103.4 24.8 3.7 0.0 60.0 Forest - Zone 3 98.7 27.6 3.7 0.0 60.0 Forest - Zone 4 37.6 15.0 3.7 0.0 60.0 Plantation - Zone 1 70.5 26.1 3.7 0.0 60.0 Plantation - Zone 2 56.4 11.3 3.7 0.0 60.0 Plantation - Zone 3 28.2 7.9 3.7 0.0 60.0 Plantation - Zone 4 14.1 5.6 3.7 0.0 60.0

Back

Available AEZ Use this part only if you want to refine analysis with Tier 2 coefficients (default values are provided for your information only, while EX-ACT will use Tier 2 values automatically wherever specified) Systems Rates of soil C sequestration Residues/Biomass available for burning Annual systems from (or to) other LUC Default Tier 2 Default Annual after Deforestation 10 Converted to A/R 10 Annual after non-forest LU 10 Converted to OLUC 10 Annual systems remaining annual systems Trad Cotton 10 Impr Cotton 1.54 10 Trad Cassava 10 Impr Cassava 0.33 10 Rainfed Rice 0.29 10 description 6 10 description 7 10 description 8 10 description 9 10 description 10 10 (t CO2/ha/yr) Tier 2 (t Dry Matter per ha)

Back

You can always use your own coefficients when available!

The methodology behind the tool

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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SELECTED APPLICATIONS OF EX-ACT

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THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

CURRENT USE OF THE TOOL: EXAMPLES OF EX-ACT TRAININGS

About 60 countries which benefited from training workshops

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

CURRENT USE OF THE TOOL: EXAMPLES OF EX-ACT APPRAISALS

More than 70 countries with EX-ACT project or policy appraisals

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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SLIDE 31

BRAZIL Santa Catarina rural competitiveness & Rio de Janeiro sustainable rural dev. MADAGASCAR 4 studies (140 000 small-farming families)

  • Irrigation and watershed management prog.
  • Support development in Menabe and Malaky
  • Rural Income Promotion Programme
  • Upper Mandrare Basin Dev. Prog

ETHIOPIA Agricultural Growth Proj. (AGP) – 2 Mi fam. RWANDA Land husbandry, Water harvesting and Hillside irrigation (LWH) proj. &Kirehe Community-based Watershed Management Proj. (KWAMP) – 8,000 families UGANDA Agriculture Technology and Agribusiness Advisory Services project (ATAAS) – 2 Mi families TANZANIA Accelerated Food Security Project – 2.5 Mi families

  • Rep. Dem. CONGO

Agriculture Rehabilitation and Recovery Support Project (ARRSP) – 0.1 Mi families BURKINA FASO Cashew nuts value chain – 15,000 families

EX-Act applied at landscape levels for developing country, smallholder contexts All these studies are available on the dedicated website

CARE Int. Hillside Conservation Agriculture Project (HICAP) KENYA East Africa Dairy Dev.t project (EADD) NIGER Community prog. of action - resilience to CC (PACRC) RUSSIA Forest Fire Emergency Response Project WWF Bikin Forest Conservation Project (BFCP) VIETNAM Low Carbon Ag. Support Project (LCASP)

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One tool, several potentials

Forest Management Projects

 www.fao.org/tc/exact

Sustainable Land Management Watershed Development Food Security and Sustainable Intensification Conservation Projects Land Rehabilitation

APPLICATIONS OF THE EX-ACT TOOL

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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AVERAGE PROCESS OF AN EX-ACT APPRAISAL

 Contact to EX-ACT team during the project design process  Initial EX-ACT appraisal based on preliminary project document  Intensive interaction between EX-ACT team and project designers

 Elaboration and correction of preliminary developed project and baseline

scenarios

 Discussion of potential improvements of project and policy actions for

targeted mitigation benefits

 Delivery of final EX-ACT analysis  Set up of monitoring system:

 Entirely based on activity data vs involving field measurements/verification

THE EX-ANTE CARBON BALANCE TOOL (EX-ACT): LOGIC AND APPLICATION

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SLIDE 34

One tool, several potentials Food security and agriculture intensification project

Putting forward :

  • Importance of

realistic adoption rates

  • Externalities of

projects SOME EXAMPLES FROM DIVERSE COUNTRIES TANZANIA

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SLIDE 35

SOME EXAMPLES FROM DIVERSE COUNTRIES -TANZANIA

Objective: Increase agricultural production and productivity Targets: 2.5 millions rice and maize farmers 3 main project activities:

  • improved agronomic practices (improved seeds)
  • improved nutrient management
  • stop of burning crop residues

Duration of carbon balance appraisal: 7+13 years

t CO2-e

Maize

Irrigation Irrigated rice Inputs

T

  • tal

Carbon balance

  • 12.616.561

235 2.607.667 4.187.055 -5.821.604

Carbon balance ha-1

  • 5,5

Carbon balance ha-1 y-1

  • 0,28

t CO2-e

Maize

Irrigation Irrigated rice Inputs

T

  • tal

Carbon blance (CB)

  • 8.353.397

235 2.607.667 4.187.055 -1.558.440

Carbon balance ha-1

  • 1,5

Carbon balance ha-1 y-1

  • 0,07

Accelerated Food Security Project in the United Republic of Tanzania Scenario 1: Very high adoption rates Scenario 2: Moderately high adoption rates

conventionnel improved 1: agronomic+nutrient+no tillage+no burning Improved 2 : nutrient+no burning Improved 3: nutrient

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One tool, several potentials Project on sustainable land mgmt & hillside irrigation

Putting forward :

  • Benefits of land and

water conservation structures SOME EXAMPLES FROM DIVERSE COUNTRIES - RWANDA

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SLIDE 37

Land husbandry, water harvesting and hillside irrigation (LWH) project Objective: Increase productivity and commercialization of hillside agriculture in targeted areas (Nyanza, Gatsibo, Karongi, Bugasera) Duration of carbon balance appraisal: 10+10 years Project activities: Land use changes Land and water conservation structures

  • Building of bench terraces
  • Plantation of trees (fruits, fodder, and other)
  • Agroforestry
  • Forage plantations
  • Building of dams and reservoirs

Result in t of CO2- eq Net effect over 20 years

  • 0.3 Mio

Unitary mitigation potential/ha/year

  • 2.8

SOME EXAMPLES FROM DIVERSE COUNTRIES - RWANDA

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SLIDE 38

One tool, several potentials Watershed Development Project

Putting forward :

  • The mitigation

benefits of healthy watersheds

  • The role of the

Carbon market

  • Potential to

generate environmental employment SOME EXAMPLES FROM DIVERSE COUNTRIES - MADAGASCAR

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SLIDE 39

Objective: Establishing irrigated agriculture & promoting forested watersheds Duration of carbon balance appraisal: 10+10 years

T Eq- CO2 Reducing deforestatio n Forestatio n Agroforest ry Annual crops Rice crops Restoring grasslands Input s Land use change Othe r invest ment s

T

  • tal

Carbon balance

  • 628907
  • 989278
  • 183225
  • 277879
  • 48612
  • 146396

91148

  • 188444

1463

  • 2370130

Carbon Balance.ha-1

  • 21.0

Carbon Balance.an-1.ha-1

  • 1.05

Carbon price Constant price US$/ton T

  • tal

public value million US$ Project NPV million US$ IRR Without value 9.1 14.7% valued at 3.5 8.3 11.6 15.8% 2010 → 2020 from 2 to 10 20.4 13.9 16.5% 2010 → 2020 from 2 to 20 38.7 17.8 17.7%

Potential employment generation in the area of PES through regular monetary inflows from carbon payments

Irrigation and watershed management programme in Madagascar Project Carbon Balance Role of Carbon Payments

SOME EXAMPLES FROM DIVERSE COUNTRIES - MADAGASCAR

At low carbon price of US$ 3.5 Annual Equiv Carbon value per ha US$ 3.7 Carbon value per farmer US$ 14 Equiv Carbon financial rent per village US$ 1400 Equiv carbon financial rent per watershed US$ 104 000

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SLIDE 40

One tool, several potentials Rice value chain analysis

Rice in Madagascar Putting forward :

  • Importance of

adapted rice management practices

SOME EXAMPLES FROM DIVERSE COUNTRIES – MADAGASCAR

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SLIDE 41

Current annual emissions: 12.9 Million tons of CO2eq 4.8 kg of CO2eq per kg of paddy 7.2 kg of CO2eq per kg of rice Methane production of aquatic rice (67%) Deforestation effect (29%) Persistence of hilly S&B rice (tavy) Rice production in Madagascar T

  • wards an Upgrading scenario for 2003-2020

The upgraded scenario will allow to fix 5.6 million tons of CO2eq/year between 2003-2020

  • Contuniously

flooding rice management

  • Laissez aller

policy letting S&B increase by 3.1%/year

  • Switch of 300000 ha to

intermitted flooding and non flooded preseason

  • improved organic

amendment

  • Stop any increase of

S&B rice

  • Net increase of

fertilizers used => 45% due to ↘CH4 (from continuously to intermitted flooding) => 54% linked with reduction of deforestation due to tavy

SOME EXAMPLES FROM DIVERSE COUNTRIES - MADAGASCAR

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SLIDE 42

One tool, several potentials Sustainable Agriculture Putting forward :

  • Sustainable

intensification as an alternative to cropland expansion

  • Advantages of

Agroforestry

SOME EXAMPLES FROM DIVERSE COUNTRIES - UGANDA

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SLIDE 43

Objective: Increase in agricultural productivity and household incomes of participating smallholder farmers Project activities: Improving agricultural practices through extension, promoting agroforestry, preventing deforestation Duration of carbon appraisal: 5+15 years

Land expansion (through deforestation, land use change on set aside and grasslands) No land expansion = 50`% of mitigation potential No expansion Expansion of agroforestry and perennials = 12 % of mitigation potential Burning residue No burning residue Improved practises = 35 % of mitigation potential

Agriculture T echnology and Agribusiness Advisory Services project (ATAAS) in Uganda

Scenario 1

SOME EXAMPLES FROM DIVERSE COUNTRIES - UGANDA

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SLIDE 44

More pragmatic scenario: Agriculture expansion is not stopped but reduced

stopped

  • nly reduced

without deforestation WITH PROJECT SITUATION 50% on deforested lands Annual crop expansion Tree plantation Manure application yes no Millions of t eq-CO2 Defores- tation Afforestatio n/ reforestatio n Land use change Annual crops Perennial crops Final Carbon balance

Scenario 1

  • 64.0
  • 1.4
  • 12.9
  • 45.1
  • 6.6
  • 129.4

Scenario 2

  • 48.4
  • 1.4
  • 9.9
  • 26.3
  • 6.6
  • 92.2

Agriculture T echnology and Agribusiness Advisory Services project (ATAAS) in Uganda

SOME EXAMPLES FROM DIVERSE COUNTRIES - UGANDA

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SLIDE 45

One tool, several potentials Agricultural Policy

Putting forward :

  • Low carbon

development policy

  • Land use

planning SOME EXAMPLES FROM DIVERSE COUNTRIES - NIGERIA

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APPLICATIONS OF THE EX-ACTTOOL

One tool, several potentials

Watershed Development Food Security and Sustainable Intensification Forest Management Projects

 www.fao.org/tc/exact

Sustainable Land Management Conservation Projects Land Rehabilitation

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THANK YOU!

EX-ACT experts: Louis Bockel Padmini Gopal

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24/06/2010

 Return

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24/06/2010

 Return

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24/06/2010

 Return

Without Project With Project

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24/06/2010

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