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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)


 
USIJI Uniform Reporting Document:
Activities Implemented Jointly Under the Pilot Phase

List of Projects

A. Description of the AIJ project

1. Title of project: Project CARFIX: Sustainable Forest Management

2. Host country: Costa Rica

3. Brief project description:

Project CARFIX is a forestry project located in central Costa Rica. This project aims to stabilize the existing natural forest and create additional forest cover in the Central Volcanic Conservation Area (ACCVC), which constitutes a 290,187-hectare (ha) buffer zone surrounding the World Biosphere Reserve of Braulio Carrillo National Park. The greenhouse gas (GHG) benefits of the project accrue from conservation of existing carbon stocks and increased carbon sequestration on 108,265 ha of forest land.

Note: Although the information contained in this report is based on the USIJI project proposal and other material provided by the project developer, the developer has not yet reviewed this document.

4. Participants:

Name of Organization or Individual

Country

Fundación para el Desarrollo de la Cordillera Volcánica Central (FUNDECOR)

Costa Rica

Ministry of the Environment and Energy (MINAE); Area de Conservación Cordillera Volcanica Central (ACCVC)

Costa Rica

Wachovia Timberland Investment Management

U.S.A.

Item

Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

Fundación para el Desarrollo de la Cordillera Volcánica Central

Name of organization (English)

Foundation for the Development of the Central Volcanic Mountain Range

Acronym (original language)

FUNDECOR

Acronym (English)

(Same as above)

Department

Function(s) within the AIJ project activities

Project development, project administration

Street

P.O. Box 549-2150

City

Moravia, San José

State

Post code

Country

Costa Rica

Telephone

Fax

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Tattenbach

First name, middle name

Franz

Job title

Executive Director

Direct telephone

506-297-1065

Direct fax

506-238-8259

Direct e-mail

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

Ministerio de Ambiente y Energía-formerly Ministerio de Recursos Naturales, Energía y Minas

Name of organization (English)

Ministry of the Environment and Energy-formerly Ministry of Natural Resources, Energy and Mines

Acronym (original language)

MINAE, formerly MIRENEM

Acronym (English)

(Same as above)

Department

Area de Conservación Cordillera Volcanica Central (ACCVC) (Central Volcanic Conservation Area)

Function(s) within the AIJ project activities

Government regulation/oversight

Street

City

San José

State

Post code

Country

Costa Rica

Telephone

Fax

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Valerio

First name, middle name

Ricardo

Job title

Director, ACCVC-SINAC

Direct telephone

506-290-8202

Direct fax

506-232-5324

Direct e-mail

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

Wachovia Timberland Investment Management

Name of organization (English)

(Same as above)

Acronym (original language)

None

Acronym (English)

(Same as above)

Department

Function(s) within the AIJ project activities

Financing

Street

191 Peach Tree St., NE

City

Atlanta

State

Georgia

Post code

30303

Country

U.S.A.

Telephone

404-332-6381

Fax

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

5. Description of AIJ project activities

Item

Type of Project

Sector(s)

Land-use change and forestry

Primary activity(ies)

Forest preservation, forest regeneration, reforestation, silviculture, sustainable harvesting, reduced impact logging

Project Location

Country

Costa Rica

Exact location (city, state, region)

Within the Central Volcanic Conservation Area (ACCVC), a buffer zone surrounding the World Biosphere Reserve of Braulio Carrillo National Park in central Costa Rica

Key Dates and Current Stage of Project

Project starting date (month/year)

January 1996

Project ending date (month/year)

December 2020

Project lifetime (years)

25

Current stage of project

In progress

General Project Description and Technical Data


Project CARFIX aims to stabilize existing forested areas and expand forest cover in the ACCVC through reforestation, sustainable management of natural forest, and natural forest regeneration. Through these actions, the project is expected to conserve existing carbon sinks and increase carbon sequestration. The project will cover 71,551 ha in the national park land (NPARK) located within the ACCVC, and an additional 36,705 ha in the remainder of the ACCVC, which comprises (1) 20,502 ha of natural forest (NFMGT), (2) 10,670 ha of abandoned pasture land (SFREG), and (3) 5,533 ha of marginal pasture land (REFOR).

In NPARK, the project intends to protect carbon sinks by protecting against illegal logging and land use and by purchasing private land in-holdings. In the buffer zone, the project intends to sequester carbon through (1) the implementation of sustainable forestry practices in NFMGT, (2) natural forest regeneration in SFREG, and (3) reforestation in REFOR. Sustainable harvesting will take place on NFMGT, SFREG, and REFOR land. Critical to these efforts are the implementation of intensive outreach and education programs to encourage landowners and farmers to adopt sustainable forestry practices, and the provision of monetary incentives to make sustainable forestry more profitable than cattle production and traditional logging. This project is expected to involve 1,878 individual farmers, private forest owners, and community organizations.

6. Cost

(a) Explanation of methodology for calculating cost data

Methodology for Calculating Cost Data


There are both costs and revenues associated with this project. The principal project costs include (1) implementation costs covering identification of landowners, development of a plan for land management or reforestation, determination of topography and land ownership (titles), plantation establishment, and infrastructure development; (2) monitoring costs covering supervision of land utilization, subsequent management, measurement of biomass growth, protection and supervision of project land, and Green Seal certification; and (3) administrative costs. The protection and supervision of project land are expected to be managed by participating landowners, and therefore do not represent a cost to the project developers. The project revenues consist of sales of harvested timber and incentives from the Costa Rican government. Carbon offsets will be sold to generate additional income.

The project developers modeled the costs and revenues of the project on an annual basis by defining key parameters as follows: (1) an estimation of 750 ha to be managed per engineer per year, (2) administrative costs of 10%, (3) an estimate of 0.50 kg carbon per kg biomass, (4) an estimate of 450 kg dry biomass per cubic meter of timber, (5) an estimate of 360 pulgadas madereras ticas (PMT) per cubic meter of timber, (6) an estimate of US$0.09 per PMT for timber from primary and secondary forest and $US0.125 per PMT for timber from plantations, (7) a value of US$10 per metric tonne (t) of carbon, (8) an exchange rate of 160 colones per U.S. dollar, (9) an annual devaluation rate of 10%, and (10) an annual discount rate of 5%. Additional parameters were defined separately for each major component of the project.

The net project costs are calculated as the difference between total costs and total revenues. Over the 25 years of the project's lifetime, the developers expect the project to generate net revenues of $32,782,465, including funds from the sale of carbon offsets. (Numbers as shown in the following tables may not sum to totals due to rounding.)

(b) Cost data-Project development

This information is not yet available.

(c) Cost data-Project implementation

Annual implementation cost information is not yet available.

Itemized Project Development Costs

Image

7. Monitoring and verification of AIJ project activities and results

Item

Party(ies) that will be monitoring project activities

This information is not yet available.

Party(ies) that will be externally verifying project results

This information is not yet available.

Date when the monitoring plan became (or will become) operational (month/year)

This information is not yet available.

Types of data that will be collected

Deforestation, biomass growth rates

Description of Monitoring and Verification Activities and Schedule for Implementation


FUNDECOR will be responsible for triennial monitoring of deforestation using remote sensing imagery, annual measurements of forest growth, and two inspections per year of private lands in the project area. Growth of natural forests will be monitored using a sample size of 1 ha for every 100 ha. In the case of reforested lands, the sample size will be doubled. LANDSAT imagery and field measures will be used to update baselines and modify project projections.

External audits will also be conducted by independent bodies.

B. Governmental approval

Item

Please check one of the following.

This report is a first report.

or

This report is an intermediate report.

or

This report is a final report.

Please check one of the following:

This report is a joint report. Letter(s) of approval of this report from the designated national authority of the other Party(ies) involved in the activity is(are) attached in Section J, Annex.

or

This report is a separate report.

Additional comments (if any):

C. Compatibility with, and supportiveness of, national economic development and socioeconomic and environmental priorities and strategies

Compatibility with Economic Development and Socioeconomic and Environmental Priorities


The project developers indicate that this project is consistent with the Statement of Intent signed by Costa Rica and the United States for Bilateral Sustainable Development, Cooperation and Joint Implementation of Measures to Reduce Emissions of Greenhouse Gases Between the Government of the Republic of Costa Rica and the Government of the United States of America.

In addition, Costa Rica's Minister of Natural Resources, Energy and Mines stated in his letter indicating host country acceptance of the project that this project "...is consistent with existing Costa Rican investment laws and regulations."

D. Environmental, social/cultural, and economic impacts of the AIJ project

Non-Greenhouse-Gas Environmental Impacts of the Project


Project CARFIX will help reduce soil erosion, water degradation, and loss of biodiversity. The expanded forest cover in the buffer zone will serve as biological corridors between parks and will aid in protecting the endangered wildlife populations in the project area.

Social/Cultural Impacts of the Project


This information is not yet available.

Economic Impacts of the Project


Over its lifetime, the project is expected to generate net revenues of $32,782,465, a portion of which will provide a steady source of income to local landowners, who currently eke out a marginal existence from agriculture. This project will also help develop Costa Rica's ecotourism and wood products industries. The results of the project are expected to encourage those landowners who are not included in the project to adopt sustainable forestry practices rather than to allow their lands to be cleared by private loggers.

E. Greenhouse gas impacts of the AIJ project

1. Scenario description

Item

Site Designation

Site number (order of presentation in this report)

1 of 4

Site name/designation

National parks (NPARK)

Project sector

Land-use change and forestry

Reference Scenario

Primary activity(ies)

Illegal logging on national park land, deforestation on private in-holdings

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

The NPARK land consists of 71,551 ha of mature natural forest that are officially designated as national park lands within the ACCVC but some of which are still privately owned. In the reference case, carbon emissions arise from illegal logging and land-use conversion by the private forest owners. The project developers report that in the reference scenario, the annual deforestation rates are estimated to range from 2.8% to 4.1% during the lifetime of the project.

Predicted Project Scenario

Primary activity(ies)

Forest preservation

Description:

Under the project scenario, the deforestation of NPARK land is prevented as a result of increased monitoring against illegal logging and land use, and the transfer of land ownership from private citizens to the government (i.e., national park authorities). Because the NPARK land consists of mature forest, the project developers assume that there is no net growth of biomass on this land during the course of the project, and no net change in carbon stocks.

Actual Project

Primary activity(ies)

This information is not yet available.

Description:

This information is not yet available.

Item

Site Description

Site number (order of presentation in this report)

2 of 4

Site name/designation

Natural forest in the buffer zone (NFMGT)

Project sector

Land-use change and forestry

Reference Scenario

Primary activity(ies)

Deforestation, conversion to agricultural land

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

The NFMGT land consists of 20,502 ha of natural forest that lie within the buffer zone but have not been designated as national park land. Under the reference scenario, the NFMGT land is expected to be deforested and converted to agricultural land at a rate of 6% per year.

Predicted Project Scenario

Primary activity(ies)

Forest preservation, sustainable harvesting, reduced impact logging

Description:

During the first five years of the project, the NFMGT land will be phased into a zero-deforestation situation in the following sequence: 4,494 ha in 1996, and 4,002 ha in each subsequent year for four years. The project developers assume that under sustainable forest management practices, the natural forests in NFMGT will grow at the rate of 1 m3/ha-yr. The carbon benefits result from avoided deforestation and biomass growth. Thirty percent of the NFMGT land will be totally protected from harvesting. The remaining 70% will be harvested three times during the lifetime of the project (years 1, 11, and 20). The project developers plan to enforce conservative low-impact logging and selective harvesting techniques. The project developers expect that 100% of the biomass harvested will be sold in various markets for use as timber, artisan products, and energy production. The revenues from the harvests will be distributed to the participating landowners, farmers, and investors. Participating landowners and farmers will receive additional financial incentives to encourage continued participation in the project, and will receive an annual income generated by the carbon offsets resulting from biomass growth on the land.

Actual Project

Primary activity(ies)

This information is not yet available.

Description:

This information is not yet available.

Item

Site Designation

Site number (order of presentation in this report)

3 of 4

Site name/designation

Secondary forests (SFREG)

Project sector

Land-use change and forestry

Reference Scenario

Primary activity(ies)

Pasture abandonment

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

The SFREG land consists of 10,670 ha of abandoned pasture land within the buffer zone. In the absence of the project, no net biomass growth or change in carbon stocks is expected to occur on this land.

Predicted Project Scenario

Primary activity(ies)

Natural forest regeneration, sustainable harvesting, reduced impact logging

Description:

During the first five years of the project, SFREG land will be phased into the project at a rate of 2,686 ha in 1996 and 1,996 ha in each subsequent year for four years. Under the project scenario, the growth of secondary forest on the abandoned pasture will be encouraged, generating carbon benefits. The growth rate varies over a 20-year period. As with NFMGT land, 30 percent of the SFREG land will be protected and the remaining 70 percent will be harvested once during the lifetime of the project (year 20). The project developers plan to enforce conservative low-impact logging and selective harvesting techniques. An estimated 62.5% of the harvested biomass will be sold to the hardwood timber industry. The revenues from the harvest will be distributed to the participating landowners, farmers, and investors. Participating landowners and farmers will receive additional financial incentives to encourage continued participation in the project, and will receive an annual income generated by the carbon offsets resulting from biomass growth on the land.

Actual Project

Primary activity(ies)

This information is not yet available.

Description:

This information is not yet available.

Item

Site Designation

Site number (order of presentation in this report)

4 of 4

Site name/designation

Forest plantation (REFOR)

Project sector

Land-use change and forestry

Reference Scenario

Primary activity(ies)

Cattle production (grazing)

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

The REFOR land consists of 5,533 ha within the buffer zone that are marginally used for cattle production. In the absence of the project, no net biomass growth or change in carbon stocks is expected to occur on this land.

Predicted Project Scenario

Primary activity(ies)

Reforestation, sustainable harvesting, reduced impact logging

Description:

The REFOR land will be phased into the project at a rate of 1,389 ha in 1996, and 1,036 ha in each subsequent year for four years. The REFOR land will be reforested and converted into a plantation, generating carbon benefits through biomass growth. The growth rate varies over a 20-year period. The REFOR land will be harvested twice during the project lifetime (years 12 and 20). An estimated 67% of the harvested biomass will be sold. The revenues from the harvest will be distributed to the participating landowners, farmers, and investors. Participating landowners and farmers will receive an annual income generated by the carbon offsets resulting from biomass growth on the land.

Actual Project

Primary activity(ies)

This information is not yet available.

Description:

This information is not yet available.

2. GHG emission/sequestration calculation methodology

GHG Emission/Sequestration Calculation Methodology

Site number

1 of 4

Project sector

Land-use change and forestry

Description of Calculation Methodology for the Reference Scenario


In NPARK, the emissions in the reference case arise from illegal logging and land-use conversion by the private forest owners. The annual rate of deforestation within the national parks is calculated based on a model of critical areas developed by FUNDECOR. This model takes into account various attributes of the park lands, including proximity to a road, population density, slope, proximity to a recent logging operation, and proximity to a land redistribution program. Based on the predicted changes in carbon stocks presented in the project proposal, the annual deforestation rates are estimated to range between 2.8% to 4.1% during the life of the project.

Based on scientific information obtained by the developers, the above- and belowground biomass stock on 1 ha of the natural forest is estimated to be 441.5 t (wet weight). It is estimated that the forest biomass contains 45% dry matter, of which 50% is carbon. Thus, 1 ha of natural forest contains 99.4 t of C/ha (= 441.5 t/ha * 45% dry matter * 50% C). To obtain annual emission estimates for NPARK land, the total number of hectares (71,551 ha) is multiplied by the biomass carbon content (99.4 t C/ha) and the annual deforestation rate based on the FUNDECOR model. To convert t C to t CO2, the tonnes of annual carbon emissions are multiplied by the ratio of 44 t CO2/12 t C. (Numbers as shown in the following tables may not sum to totals due to rounding.)

Description of Calculation Methodology for the Project Scenario


Because NPARK land is considered to be mature forest, there is no net change in biomass stocks during the course of the project. Therefore, the annual carbon emission estimate for the NPARK project scenario is zero.

Description of Calculation Methodology for the Actual Project


This information is not yet available.

GHG Emission/Sequestration Calculation Methodology

Site number

2 of 4

Project sector

Land-use change and forestry

Description of Calculation Methodology for the Reference Scenario


In the case of NFMGT, the emissions in the reference case arise from land-use conversion from natural forest to pastures. No net biomass growth is assumed to occur in NFMGT forest. With the use of satellite imagery (LANDSAT) and GIS, the average annual rate of deforestation in NFMGT was estimated to be 6% between 1986 and 1992. In the absence of project activities, deforestation is expected to continue at the same rate through the end of 2020. To obtain annual emission estimates for NFMGT land, the total number of hectares (20,502 ha) is multiplied by the biomass carbon content (99.4 t C/ha) and the annual deforestation rate (6%). To convert t C to t CO2, the tonnes of annual carbon emissions are multiplied by the ratio of 44 t CO2/12 t C. (Numbers as shown in the following tables may not sum to totals due to rounding.)

Description of Calculation Methodology for the Project Scenario


In the NFMGT project scenario, net annual carbon emissions are calculated as the difference between (1) emissions generated by the deforestation that is phased out during the first five years of the project as well as by the sustainable harvesting of timber on NFMGT land, and (2) carbon sequestration resulting from tree growth after harvesting. This complex calculation depends on a number of factors, including the (1) variable rate of enrollment of farmers in the project (which determines the deforestation rate), (2) the assumption that 1 m3 of wood contains 450 kg dry biomass, 50% of which is carbon, (3) the assumption that 1 ha of natural forest contains 26 t C of commercial wood, (4) the assumption that sustainable harvesting will occur on 70% of the forest area in years 1, 11, and 20 of the project, and (5) the assumption that trees will grow at a rate of 1 m3/ha-yr following sustainable harvesting. To convert t C to t CO2, the tonnes of annual carbon emissions/sequestration are multiplied by the ratio of 44 t CO2/12 t C. (Numbers as shown in the following tables may not sum to totals due to rounding.)

Description of Calculation Methodology for the Actual Project


This information is not yet available.

GHG Emission/Sequestration Calculation Methodology

Site number

3 of 4

Project sector

Land-use change and forestry

Description of Calculation Methodology for the Reference Scenario


In the reference case, SFREG land consists of abandoned pastures. The proposal indicates that the net change in carbon stocks on this site is assumed to be zero.

Description of Calculation Methodology for the Project Scenario


In the project scenario for SFREG, carbon sequestration arises from tree growth, and the growth rate varies according to the age of the forest. The carbon sequestration estimates of the forest biomass are based on the total volume of commercial timber, which is estimated to be 62.5% of the forest biomass. Annual carbon sequestration is calculated based on the assumptions that 70% of the commercial timber will be harvested at age 20 and that the carbon content of forest biomass is 225 kg C/m3 of wood. To convert t C to t CO2, the tonnes of annual carbon sequestration are multiplied by the ratio of 44 t CO2/12 t C. (Numbers as shown in the following tables may not sum to totals due to rounding.)

Description of Calculation Methodology for the Actual Project


This information is not yet available.

GHG Emission/Sequestration Calculation Methodology

Site number

4 of 4

Project sector

Land-use change and forestry

Description of Calculation Methodology for the Reference Scenario


In the reference case, REFOR consists of land marginally used for cattle production. The proposal indicates that the net change in carbon stocks on this site is assumed to be zero.

Description of Calculation Methodology for the Project Scenario


In the REFOR project scenario, carbon sequestration arises from tree growth, and the growth rate varies according to the age of the forest. Annual carbon sequestration is calculated based on the assumptions that (1) 100% of the plantation biomass consists of trees, (2) the volume of tree trunk biomass to total biomass is 66.6%, and (3) the forest will be harvested twice (years 12 and 20) during the lifetime of the project. To convert t C to t CO2, the tonnes of annual carbon sequestration are multiplied by the ratio of 44 t CO2/12 t C. (Numbers as shown in the following tables may not sum to totals due to rounding.)

Description of Calculation Methodology for the Actual Project


This information is not yet available.

3. GHG emission/sequestration data

(a) Reporting of GHG emissions/sequestration

Image

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(b) Additional information on GHG emissions/sequestration

Indirect or Secondary GHG Impacts (Positive and Negative)


This information is not yet available.

Factors That Could Cause the Future Loss or Reversal of GHG Benefits


One of the major obstacles to sustainable forestry in the area is the inability to realize an adequate yearly income. If adequate and stable income cannot be realized in the future years, landowners will not be motivated to preserve the forests and may resort to logging, which would cause carbon sequestration to be lost in the future years.

Strategy for Reducing the Risk of Future Loss or Reversal of GHG Benefits


Strong technical direction will be provided to ensure complete adherence to sustainable forestry practices throughout the project lifetime. In addition, combined with incentives from the Costa Rican government and income from future forest yields, the funds from carbon fixation will ensure that farmers and private landholders have sufficient annual income to provide a competitive alternative to land uses that lead to deforestation. Therefore, the project developers anticipate that after 25 years of sustainable forestry in the buffer zone, the market will support the activities established and no loss of sequestered carbon will occur.

F. Funding of the AIJ project

1. Identification of funding sources

(a) Funding sources for project development

This information is not yet available.

(b) Funding sources for project implementation

Funding Source

Country of Funding Source

Amount ($US)

Percent of Total Funding (%)

Is This Funding Assured? (Y/N)

Costa Rican government

Costa Rica

3,800,000

FUNDECOR

Costa Rica

Utility companies

U.S.A.

12,600,000

Wachovian Timberland Investment Fund

U.S.A.

5,000,000

Total

100

2. Assessment of additional funding needs

Current or Planned Activities to Obtain Additional Funding


This information is not yet available.

G. Contribution to capacity building and technology transfer

Contribution to Capacity Building and Technology Transfer


Because the project involves education and outreach activities, information about proper silviculture techniques will be passed on to as many as 1,878 individual farmers and community organizations. The techniques employed here can be applied to other regions around the country.

H. Recent developments, technical difficulties, and obstacles encountered

Recent Project Developments


This information is not yet available.

Technical Difficulties and Other Obstacles Encountered


This information is not yet available.

I. Additional information

Additional Information


None.

J. Annex

1. Host country acceptance of the AIJ project

Country/Project Title

Name, Title, and Government Agency of the Designated National Authority

Date of Approval(day/month/year)

Costa Rica/Project CARFIX: Sustainable Forest Management

René Castro S., Minister, Ministry of Natural Resources, Energy and Mines

3 November 1994

2. Letters of approval of this AIJ project report

See attached concurrence form.


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