Forest Protocol Forest Protocol Protocol Update Effort Protocol - - PDF document

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Forest Protocol Forest Protocol Protocol Update Effort Protocol - - PDF document

Forest Protocol Forest Protocol Protocol Update Effort Protocol Update Effort Goals and Objectives Goals and Objectives CAR adopted the Forest Protocols in 2005 CAR Board directed staff in 2007 to: Initiate a stakeholder process


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Forest Protocol Forest Protocol

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Protocol Update Effort Protocol Update Effort Goals and Objectives Goals and Objectives

CAR adopted the Forest Protocols in 2005

  • CAR Board directed staff in 2007 to:
  • Initiate a stakeholder process to develop

additional approaches and reduce barriers for participation

  • for public lands
  • for private commercial forests not associated with a

land trust

  • for private non-timber forests (oak woodlands)
  • Improve protocol clarity, accuracy,

conservatism, environmental integrity, and cost effectiveness

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Protocol Update Effort Protocol Update Effort Goals and Objectives Goals and Objectives

  • Update process also an opportunity

to:

  • Reflect advances in science and methodology
  • Improve guidance for calculations
  • Improve the efficiency and cost-effectiveness of

methods

  • Develop applications for entire United States
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Forest Protocol Workgroup Forest Protocol Workgroup

  • Group size chosen to foster dialogue

and be effective

  • Comprised of:
  • Private landowners, large and small
  • Public landowners
  • Environmental organizations
  • Scientists/Academics
  • Regulators
  • Verifiers
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Public Process Public Process

  • Work Group Meetings
  • Every 3 weeks in day-long sessions
  • Meetings open to public observers
  • Public Review and Comment
  • Three separate drafts (12/08, 4/09, and 6/09)
  • Two specific issue documents (HWP – 2/09 and PIA – 6/09)
  • Four public workshops (7/08,12/08,

2/09, 4/09, 8/09)

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New Climate Action Reserve New Climate Action Reserve standard brings US forests into the standard brings US forests into the carbon market carbon market Forest Project Protocol Version 3.0 September 1, 2009

Results Results

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What is a Carbon Offset What is a Carbon Offset Project? Project?

  • A carbon project is a focused activity that

has a climate benefit

  • A forest project either increases

sequestration or decreases emissions

  • A project must be:
  • Additional
  • Measurable
  • Verifiable
  • Above Business as Usual
  • Permanent
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Key Components of Offset Key Components of Offset Projects Projects

  • Additional
  • project is yield a real climate benefit, above and beyond

‘business as usual’

  • Measurable
  • A project must be able to correctly calculate the benefit it is

providing to ensure that it is real.

  • Verifiable
  • Project stocks can be verified as accurate
  • Business as Usual
  • What would have happened in the absence of the project
  • Permanent
  • The project reductions must be equivalent (to the

atmosphere) to the emissions the project is offsetting

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The CAR Forest Protocol The CAR Forest Protocol

  • Accounting Guidance for the Key

Components

  • Also Addresses:
  • Eligibility Requirements
  • GHG Assessment Boundaries
  • Quantification
  • Co-benefits
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CAR Forest Project Types CAR Forest Project Types

  • Improved Forest Management
  • Activities that increase forest-based sequestration

and/or decrease emissions

  • Reforestation
  • Less than 10% canopy cover for at least 10 years,
  • r following a significant natural disturbance that

has removed at least 20% of the trees

  • Avoided Conversion
  • Removing a significant conversion threat to non-

forest use and dedicating the forest to continued forest cover.

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Crediting and Additionality Crediting and Additionality

  • 100- year crediting period
  • All projects must exceed all legal

requirements, including any requirements to:

  • Reforest
  • Buffer watercourses
  • Protect for endangered species
  • Manage under a binding deed restriction or

conservation easement

  • Voluntary agreements that can be

rescinded are not considered legal requirements

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Improved Forest Management Improved Forest Management Baseline Baseline

  • Project-level modeling conducted to

determine a baseline that:

  • Exceeds legal requirements
  • Is financially viable
  • Does not follow a period of rapid depletion
  • Does not decline below regional measures
  • f ‘Common Practice’
  • Protocols provide standardized guidance

for modeling

  • Project stocks above baseline are credited
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Improved Forest Management Improved Forest Management Baseline Baseline

Standing Live Carbon Initial Project Inventory Baseline, provided there are no legal encumbrances to harvest to the FIA average and it makes economic sense to do so Average Inventory of Standing Live Carbon, derived from FIA data for assessment area Project Activity Reductions

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Improved Forest Management Improved Forest Management Baseline Baseline

Standing Live Carbon Initial Project Inventory Average Inventory of Standing Live Carbon, derived from FIA data for assessment area Baseline, provided that growth exceeds legal requirements Reductions

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Public Lands Forest Public Lands Forest Management Baseline Management Baseline

  • Quantification of baseline using an historic

(10-year) review of:

  • Retention standards
  • Rotations
  • Other practices determined by statute,

regulation, policy, and budgets

  • The review provides the basis for forward
  • modeling. Project stocks above forward-

projected baseline are additional

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Baseline for Avoided Baseline for Avoided Conversion Conversion

  • Baseline is based on likely effects of

conversion as substantiated by an appraisal and similar regional practices

  • Other required criteria include:
  • Suitability of project area for conversion
  • Legal permissibility of conversion
  • Assessment of risk of conversion as

determined by disparity in value from appraisal

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Reforestation Baseline Reforestation Baseline

  • Baseline is simulated future

characterization of carbon stocks if cover >10%, or narrative description if <10%

  • Project allowed if project land base has

undergone significant natural disturbance and the landowner is not required by law to reforest

  • Economic evaluation required to determine

that reforestation activity would not have

  • therwise happened
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Risk Risk-

  • management:

management: Leakage Leakage

  • Each project type has its own worksheet

that assesses the risk of leakage and provides a corresponding leakage risk factor

  • This risk factor or leakage percent must

be assessed annually and deducted from the calculations of net carbon sequestration or avoided emissions

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Environmental Integrity Environmental Integrity

  • Projects required to:
  • Live trees be maintained or increased over

project life

  • Manage for diverse native trees with

multiple age classes

  • Even age harvesting limited to 40-acre units
  • No more than 40% of project area can be in

age classes less than 20 years

  • Demonstration of long-term sustainability
  • Manage for structural elements
  • Requirements for lying and standing dead

wood

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Managing for Permanence Managing for Permanence

  • Permanence defined in protocol as ‘out of

atmosphere for at least 100 years’

  • Long Term Monitoring and Verification
  • Identifies impermanence or reversals
  • Reversals (2 types) must be compensated
  • Unavoidable: fire, pests, disease, wind, etc.
  • Avoidable: over-harvesting, financial failure,

project termination

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Managing for Permanence Managing for Permanence

  • Unavoidable Reversals compensated from

Buffer Pool administered by Reserve

  • All projects contribute to pool based on risk
  • Risk (financial) reduced with qualified

conservation easement or deed restriction or public ownership

  • Avoidable Reversals compensated by

Forest Owner

  • Surrenders CRTs (project or purchased)

equal to CRTs reversed

  • All compensation of reversals must be from

forest CRTs

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Managing for Permanence Managing for Permanence

  • Project Implementation Agreement
  • Adherence to the protocol enforced by

requiring forest owners to enter into a long- term contract with the Reserve

  • Specifies remedies in the case of an

“avoidable” (intentional) reversal

  • Specifies that projects must retire CRTs

equivalent (with penalties in some cases) to the total amount issued in the event of project termination

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Managing for Permanence Managing for Permanence

  • PIA Enforcement and Longevity Secured

Through Requirement that:

  • counterparty seek assignment of PIA to

subsequent forest owner

  • recording of notice of PIA on title to inform

potential purchasers

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Monitoring and Verification Monitoring and Verification

  • Initial 3rd party verification includes site

visit

  • Subsequent annual monitoring reports can be

verified.

  • Periodic (6-years) site verification
  • Verified stocks above baseline are

awarded CRTs

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Contacts Contacts

John Nickerson Climate Action Reserve Dogwood Springs Forestry john@climateactionreserve.org 707-468-8529 Joel Levin Climate Action Reserve joel@climateactionreserve.org 213-891-6927