1. Title of project: Commercial Reforestation in the Chiriquí Province
2. Host country: Panama
3. Brief project description:
This project will reforest 500 hectares (ha) of currently degraded lands in the Chiriquí Province in
the western region of Panama. The project area will be planted with teak ( Tectona grandis ), established
as a certified teak plantation, and managed in a sustainable manner as a source of high quality hardwood.
The project is estimated to result in net sequestration of approximately 16,000 tonnes (t) of carbon
through tree growth and production of durable wood products over a 25-year lifetime.
4. Participants:
Name of Organization or Individual
Country
CAOBO, Inc.
Panama
Fundación NATURA
Panama
Center for Clean Air Policy
U.S.A.
Item
Organization
Name of organization (original language)
or
Name of individual if unaffiliated with any organization
The project will reforest 500 ha of currently degraded lands in the Chiriquí Province in the
western region of Panama. The project area will be planted with teak ( Tectona grandis ) at a
density of 1,235 trees per ha. After site preparation and planting, the land will be established
and maintained as a certified teak plantation and managed in a sustainable manner as a source of
high quality hardwood. The site will be thinned approximately every six years until the project
lifetime expires, at which time the trees will be harvested and processed. The processed wood will
be sold commercially to wholesalers and end-use customers for furniture and case goods production.
The non-commercial and slash debris will be sold to local people for firewood, thus replacing the
current supply of firewood, which is primarily harvested in a non-sustainable way. It is expected
that the plantation will be replanted at the end of the 25 year harvest cycle.
Estimated GHG benefits of the project (15,720 t C) are based on the estimated amount of woody
biomass carbon that is harvested and stored indefinitely in durable wood products.
6. Cost
(a) Explanation of methodology for calculating cost data
Methodology for Calculating Cost Data
The capital cost to purchase the land, and establish, maintain, and operate the plantation for the
first seven years is US $3,700,000. After year seven, the plantation is expected to be
self-sufficient through the sale of harvested wood.
(b) Cost data-Project development
This information is not yet available.
(c) Cost data-Project implementation
Annual implementation cost data is not yet available.
7. Monitoring and verification of AIJ project activities and results
Item
Party(ies) that will be monitoring project activities
CAOBO
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
Tree characteristics including height and diameter; soil characteristics including carbon and
nitrogen content
Description of Monitoring and Verification Activities and Schedule for Implementation
Annual inventories of the characteristics of trees on the plantation will be conducted on a regular
basis. Representative samples will be used to estimate tree characteristics for the entire
population. Information from the inventories will be part of a database that will include the
height and diameter of every tree on the plantation. These data can be used to calculate the volume
of wood on the plantation, the major determining factor in calculating the amount of GHG
sequestered.
In addition, representative soil samples will periodically be taken to monitor soil conditions. The
samples will be analyzed for carbon and nitrogen contents.
CAOBO and the Center for Clean Air Policy agree to allow external verification by USIJI or other
interested parties, so long as those parties are approved by the aforementioned participants.
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 will (1) alleviate pressure on rainforests by providing an alternative source of
fuelwood and (2) create jobs outside of traditional agriculture, thereby complimenting the
Panamanian government's efforts to improve the economy. In addition, the project will assist
the government of Panama in promoting Reforestation Law No. 24, which provides incentives to
reforest previously deforested and degraded lands in a sustainable manner.
Finally, Panama will be able to export teak wood to countries that have depleted their indigenous
supply and are now importers, which will generate revenue for the economy.
D. Environmental, social/cultural, and economic impacts of the AIJ project
Non-Greenhouse-Gas Environmental Impacts of the Project
If the project is successful, it may lead to the establishment of additional sustainably-managed
plantations, and potentially relieve pressure on existing forests from slash and burn agriculture
and fuelwood harvest. Also, the plantation will provide habitat for animals, most likely birds.
Finally, the project will help prevent soil erosion in a country where a significant percentage of
soil is degraded as a result of misuse.
Social/Cultural Impacts of the Project
The project will demonstrate that reforestation and sustainable development can effectively change
traditional land-use practices by providing alternatives to semi-nomadic farming.
Economic Impacts of the Project
The project will create 30 permanent and 100 temporary jobs in an area without many job
opportunities. Employees will receive training and education necessary to manage the plantation in
an efficient and sustainable manner. The project also will generate income for the company to be
passed on to investors as dividends.
E. Greenhouse gas impacts of the AIJ project
1. Scenario description
Item
Site Designation
Site number (order of presentation in this report)
1 of 1
Site name/designation
Chiriquí Province
Project sector
Land-use change and forestry
Reference Scenario
Primary activity(ies)
Cattle-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 site is located in the Chiriquí Province of the western region of the Republic of
Panama. The 500 ha site is adjacent to the PanAmerican Highway, close to the border with Costa
Rica, and is bifurcated by an important local river. The site was previously deforested and
converted to pasture for cattle-grazing. It is now semi-abandoned, low-yield pasture, with a mix of
tall grasses and shrubs. The site has some trees, mostly along the borders of each pasture and
along the river banks. Without the project, the site is expected to remain in this state
indefinitely.
Predicted Project Scenario
Primary activity(ies)
Reforestation
Description:
The project will reforest the 500 ha site with 1,235 teak trees per ha. After site preparation and
planting, the land will be established and maintained as a certified teak plantation and managed in
a sustainable manner as a source of high quality hardwood. The site will be thinned approximately
every six years until the project lifetime expires, at which time the trees will be harvested and
processed. The processed wood will be sold commercially to wholesalers and end-use customers for
furniture and case goods production. The non-commercial and slash debris will be sold to the local
people for firewood, thus replacing the current supply of firewood, which is primarily harvested in
a non-sustainable way.
It is anticipated that the plantation will be replanted after the final harvest.
Description of Calculation Methodology for the Reference Scenario
Carbon stocks are assumed to remain constant in the reference scenario. Thus, annual net emissions
are anticipated to be zero throughout the project lifetime.
Description of Calculation Methodology for the Project Scenario
The total estimated net sequestration achieved by the teak plantation over its 25 year lifetime is
15,720 t C, which is achieved through the growth and subsequent long-term carbon storage in durable
forestry products such as furniture, construction material, and boats.
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
Annual estimates are not yet available. Cumulative GHG benefits of the project are anticipated to be 57,640
t CO2.
(b) Additional information on GHG emissions/sequestration
Indirect or Secondary GHG Impacts (Positive and Negative)
The project will provide an alternative to traditional and illegal logging practices and slash and
burn agriculture, resulting in reduced GHG emissions from these activities.
Carbon dioxide emissions will result from the decomposition of grasses and shrubs that have been
removed to prepare the site for the plantation. However, the trees currently on the site (which
store the bulk of the carbon) have not been removed.
Processing the wood at local sawmills, which are diesel-fueled, will result in CO2
emissions. However, prior to the second harvest, CAOBO will consider biomass-fired equipment to
burn the wastewood resulting from its operations. In this way, a closed carbon cycle would be
created, thus preventing further CO2 emissions.
Once the teak is harvested, CO2 emissions will result from the transportation of the
processed wood to the end-user. These emissions are not expected to be significant because the wood
is only harvested every six years and will be transported to the end-user via ship.
Factors That Could Cause the Future Loss or Reversal of GHG Benefits
The project is designed such that, after 25 years, the 500 hectare site will be harvested and the
wood sold for use in long-term furniture applications. The carbon sequestered could be lost,
however, if the wood is processed in a manner that does not ensure the longevity of carbon
storage.
Damage to or loss of the trees before the final harvest can affect the projected GHG benefits of
the project. Factors that could have such an effect include fire, insects, disease, and flooding.
Strategy for Reducing the Risk of Future Loss or Reversal of GHG Benefits
The site will be managed in such a way as to prevent catastrophic loss of trees and their
associated GHG benefits. An insurance policy has been purchased to protect against such risks. In
the event of catastrophic loss, any money recovered through the insurance policy will be used to
replant trees.
Although teak trees are resistant to fire after the first three years, firebreaks and gallery
forests will be maintained throughout the plantation to further reduce the risk. In Panama, there
are no known natural enemies of the teak tree; regardless, gallery forests will serve as physical
barriers to disease and provide effective biological control of insects by providing miniature
biospheres for their predators. Finally, the entire plantation is enclosed in a fence that will
provide additional security against outside intrusion.
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
This information is not yet available.
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
The project will employ advanced techniques in nursery management and planting. In addition, the
developer is considering the use of "friendly" bacteria and fungi to reduce the need for
artificial fertilizers. Results will be passed on to INRENARE and NATURA. In addition, technical
aspects of calculating the GHG benefits of the project will be shared with INRENARE and
NATURA.
The project may serve as a model for future efforts to reforest Panama's degraded lands. CAOBO
will work closely with Panama's JI office to share data and assist in the development of new
projects. This would help to change traditional, non-sustainable land-use practices and alleviate
pressure on remaining forests in Panama.
Finally, this project will serve as an example of sustainable management of forests, which will
assist the Panamanian government in promoting Reforestation Law No. 24.
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 Agencyof the DesignatedNational Authority
Date of Approval(day/month/year)
Panama/Commercial Reforestation in the Chiriquí Province
Licda. Mirei E. Endara S., Director-General, National Institute of Renewable Natural Resources
