Training for Conducting Carbon Balance Appraisals of AFOLU projects and policies

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Training for Conducting Carbon Balance Appraisals of AFOLU projects and policies FAO-CCAFS International Workshop Reducing the costs of GHG estimates in Agriculture 12 November 2014 EX-ACT TEAM: LOUIS BOCKEL, MARTIAL BERNOUX, UWE GREWER, LAURE SOPHIE SCHIETTECATTE, ECONOMICS OF SUSTAINABLE AGRICULTURE SYSTEMS (ESAS)

I. Agenda and Objectives ECONOMICS OF SUSTAINABLE AGRICULTURE SYSTEMS (ESAS) AGRICULTURAL DEVELOPMENT ECONOMICS DIVISION (ESA)

Training Objectives By the end of the training, participants will have used the EX-ACT tool and will be able to: Explain the concept of a carbon balance Apply the EX-ACT tool for a simple application Analyze and utilize EX-ACT results

What is EX-ACT? An Excel-based calculator, used to: Quantify the amount of GHG released or sequestered from agricultural activities Assist in identifying practices with beneficial impacts

Role of EX-ACT team Technical development of the EX-ACT tool Conduct GHG appraisals and economic analysis of development projects & agricultural policies Disseminate and provide training on the EX-ACT tool in the context of Climate-Smart Agriculture

Training Overview Opening (15 mn) 9.00-10.30 Presentation of EX-Act Carbon balance Tool and some applications (35 mn) Hands-on application of EX-ACT (40 mn) o Entering data in EX-ACT o Practical exercise: Forest reserve in Brazil o Practical exercise: Indonesia Palm oil plantation

II. World Bank and IFI s: Towards a harmonized approach to project level GHG accounting ECONOMICS OF SUSTAINABLE AGRICULTURE SYSTEMS (ESAS) AGRICULTURAL DEVELOPMENT ECONOMICS DIVISION (ESA)

International Financial Institution Framework for a Harmonised Approach to GHG Accounting IFI engaged o World Bank (WB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), Agence Française de développement (AfD), Screening o IFIs shall screen each proposed direct investment project for likely significant GHG emissions. o IFIs will undertake GHG accounting for all direct investments consistent with the screening criteria. Methodology o IFIs shall undertake the GHG accounting of a project based on established methodologies for ex-ante GHG accounting

Harmonised Approach to GHG Accounting Net emissions compared to baseline scenario o Reference scenario may be either a without project scenario or an alternative scenario Reporting o At a minimum, each IFI shall report annually on the aggregate net GHG emissions for screened mitigation projects, estimated to arise from the previous year s approved or signed investments

III. Climate change, GHG Appraisal and Climate-Smart Agriculture (CSA) ECONOMICS OF SUSTAINABLE AGRICULTURE SYSTEMS (ESAS) AGRICULTURAL DEVELOPMENT ECONOMICS DIVISION (ESA)

AGRICULTURE S CONTRIBUTION TO GHG EMISSIONS CLIMATE CHANGE AND AGRICULTURE: MAIN CONCEPTS AND IMPACTS

Main mitigation options 70 % of agriculture mitigation potential In developing countries Mitigation possible through changes in agricultural technologies and management practices CO 2 rate of deforestation and forest degradation, adoption of improved cropland management practices (reduced tillage, integrated nutrient and water management) CH 4, N 2 O RESOURCE USE EFFICIENCY improved animal production and management of livestock waste, more efficient management of irrigation water on rice paddies, improved nutrient management Sequestering carbon conservation farming practices, improved forest management practices, afforestation and reforestation, agro-forestry, improved grasslands management, restoration of degraded land 1 ha of avoided deforestation from tropical rain forest to degraded lands -42,7 t eq-co 2 /ha/year 1 ha plantation, degraded land to tropical rain plantation -18,8 t eq-co 2 /ha/year 1 ha grasslands from severely degraded to improved grasslands -1,7 à -3,8 t eq- CO 2 /ha/year 1 ha from degraded land to annual crops -1,2 t eq- CO 2 /ha/year

Concepts: Mitigation & Adaptation Mitigation Adaptation I attack the problem Strategies can and should be implemented jointly I act in response to the impacts of the problem Risk management Decrease GHG sources Decrease sources Increase sinks Strenghtening institutions Trainings Increase sinks of GHG Investments in rural economy EX-ACT Training, World Bank 2014

Main differences between adaptation and mitigation Mitigation Causes of climate change Global Longer-term effect Especially motivated with countries less vulnerable to CC Objectives Spatial scale Time scale Equity Effects of climate change Local Shorter-term effect Especially focussed on vulnerable countries Adaptation Same final common target: Sustainable development EX-ACT Training, World Bank 2014

Links between Adaptation and Mitigation Agriculture Adaptation Targets Cropping systems resilient to drought and water stress Reduce flood recurrence and improve resilience to natural disasters Diversify rural income and strengthen economic resilience Increase protection against disaster The EX-Ante (Disaster Carbon balance risk Tool management, insurance) Double target activities L&W conservation measures Adequate irrigation Land use management PES to farmers Community oriented public works Agriculture Mitigation Targets Enriched carbon in soils Reduced CH4 emissions rehabilitated land in watersheds Reduced deforestation and slash and burn practices reforested areas improved pasture management

CSA among other concepts of `green agriculture From farm-based to comprehensive development concepts Macro Climate smart agriculture Agroecology Organic farming Sustainable land management Micro Conservation agriculture Farming technics Value chain Area - based management Multi-function planning and policies EX-ACT Training, World Bank 2014

EX-ACT TEAM: LOUIS BOCKEL (FAO): louis.bockel@fao.org MARTIAL BERNOUX (IRD): martial.bernoux@ird.org UWE GREWER (FAO): uwe.grewer@fao.org WWW.FAO.ORG/TC/EXACT EMAIL: EX-ACT@FAO.ORG CLIMATE CHANGE AND AGRICULTURE: MAIN CONCEPTS AND IMPACTS