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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: Rio Condor Carbon Sequestration Project

2. Host country: Chile

  1. Brief project description:
    • The Río Cóndor Carbon Sequestration Project is reducing carbon emissions from a 272,880 hectare forest management project in Tierra del Fuego, Chile. The land is owned and managed by Forestal Savia Ltda., a Chilean company. CFix, L.L.C., a Washington State Limited Liability Company, is managing the carbon offset opportunity in partnership with Fundación Chile, a Chilean non-profit organization focused on technology transfer, new business development and sustainable development in Chile.

      The Project will achieve additional carbon storage by preserving old growth forests that would have been converted into young, managed stands in the baseline scenario. Sustainable forest management will continue on the lands not protected by the carbon project. In the future, the project will reduce emissions by preserving sphagnum bogs that are found on the property and that are vulnerable to third-party concessionaires.

      The forest preservation measures will result in approximately 15,469,278 million metric tonnes of avoided CO2 emissions over the 60-year life of the project. Emission reductions over the life of the project will increase by 20,247,390 tonnes to 35,716,668 tonnes when the bog component is incorporated into the project.

      All measures are dependant on the eventual sale of carbon offset credits at a price that justifies the forgone revenues associated with limiting harvest. Furthermore, Forestal Savia, Fundación Chile, and CFix reserve the right to alter the carbon project in the future.

  • 4. Participants:

Name of Organization or Individual Country

Forestal Savia

Chile

Fundación Chile

Chile

CFix LLC

U.S.A.

SGS International Certification Systems (Carbon Offset Verification Division)

The Netherlands

Item

Organization

Name of organization (original language)

Fundación Chile

Function(s) within the AIJ project activities

Project design, government relations, strategic planning

Street

Avenida Parque Antonio Rabat Sur 6155

City

Santiago

Country

Chile

World Wide Web-URL address

www.fundch.cl

Administrative Officer Responsible for the Project

Surname

Bitran

First name, middle name

Eduardo

Job title

Director General

Direct telephone

56-2-241-9362

Direct fax

56-2-241-9386

Direct e-mail

ebitran@fundch.cl

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

Surname

Morales

First name, middle name

Eduardo

Job title

Jefe de Proyectos (Project Manager)

Direct telephone

56-2-2400488

Direct fax

56-2-2419385

Direct e-mail

emorales@fundch.cl

Item

Organization

Name of organization (original language)

Forestal Savia

Function(s) within the AIJ project activities

Project development, project administration

Street

21 de Mayo 1668

City

Punta Arenas

Country

Chile

Telephone

56-61-241434

Fax

56-61-224078

E-mail

saviaefb@entelchile.net

Administrative Officer Responsible for the Project

Surname

Fahrenkrog

First name, middle name

Edmundo

Job title

General Manager

Direct telephone

56-61-241-434

Direct fax

56-61-224-078

Direct e-mail

saviaefb@entelchile.net

Item

Organization

Name of organization (original language)

CFix LLC

Function(s) within the AIJ project activities

Project development, Project administration

Street

4350 Cordata Parkway

City

Bellingham

State

Washington

Post code

98226

Country

U.S.A.

Administrative Officer Responsible for the Project

Surname

Wheeler

First name, middle name

Keith

Job title

President

Direct telephone

(802) 985-0789

Direct fax

(802) 985-3163

Direct e-mail

keith@concord.org

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

Surname

Jack

First name, middle name

Darby

Job title

Project Manager

Direct telephone

(360) 715-7281

Direct fax

(360) 676-4465

Direct e-mail

dwj@trilliumcorp.com

Item

Organization

Name of organization (original language)

SGS International Certification Services

Department

Carbon Offset Verification Service

Function(s) within the AIJ project activities

Verification

Street

Mallekijk 18

City

Spijkkenisse

Country

The Netherlands

World Wide Web-URL address

www.sgsgroup.com

Administrative Officer Responsible for the Project

Surname

Aalders

First name, middle name

Edwin

Job title

Senior Project Manager

Direct telephone

31-0-181-69-33-33

Direct fax

31-0-181-69-35-72

Direct e-mail

Edwin_Alders@sgsgroup.com

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

Surname

Philips

First name, middle name

Gareth

Job title

Lead Assessor

Direct telephone

+44 (1224) 793600

Direct e-mail

Gareth_Phillips@sgsgroup.com

  • 5. Description of AIJ project activities
Item
Type of Project

Sector(s)

Land Use Change and Forestry

Primary activity(ies)

Preservation of threatened old growth forests and sphagnum bogs

Project Location

Country

Chile

Exact location (city, state, region)

Tierra del Fuego, XII Region. The nearest communities are Porvenir, the capital of Chilean Tierra del Fuego, (population c. 5000), and the Timaukel Cooperative (population 250). Porvenir is about 250 km northwest by gravel road from the Project headquarters at Vicuña.

Key Dates and Current Stage of Project

Project starting date (month/year)

January 1998

Project ending date (month/year)

January 2058

Project lifetime (years)

60

Current stage of project

In progress

General Project Description and Technical Data

Objectives

The Carbon Sequestration Project reduces emissions of carbon and protects biological diversity by preserving old growth forests that would otherwise be converted to young, managed forest. Furthermore, the project will in the future seek to reduce emissions of carbon by protecting threatened sphagnum bogs.

The carbon project is an integral part of a sustainable forest management project being developed by Forestal Savia. The overarching vision that drives the integrated forestry-carbon project is to use the forest ecosystem in ways that are ecologically sustainable, economically viable and socially beneficial.

Project Site

The property consists of 272,878 hectares of land, of which 150,716 hectares are forested. The Project is divided into two areas, a western and an eastern section, separated by another ownership and three lakes. The western and southern edges have extensive boundaries along the Whiteside Channel and Admiralty Sound. The eastern boundary of the property abuts the border of Argentina.

The Project area is located between the cold steppes (grasslands) and the rugged, glaciated mountains that respectively occupy the northern and southern halves of Tierra del Fuego. Topography in the Project area is mountainous, with moderate slopes and broad flat valley bottoms. Since the Project area is located at 54 degrees south latitude, the maritime climate is cool to cold, wet and windy (Arroyo et al. 1996). Mean annual temperatures are 2.5 to 3.0° C and monthly temperatures vary from means around –4.0° C in July to about 9° C in January. Annual precipitation declines from about 1000 mm in the west to 500 mm in the east.

Landscapes in the Project area are typically mosaics of forested and non-forested ecosystems. In the west, patchworks of forest and turba (sphagnum bogs and associated wetlands) are common; forests are typically mixtures of Nothofagus pumilio (lenga) and Nothofagus betuloides (coigue). In the east, forest is interspersed with moist grasslands, and turba predominates; forests are typically composed solely of lenga. A third tree species, Nothofagus antartica (ñirre) occurs throughout the Project area at the ecotones between forest and non-forest vegetation. Nowhere does this species reach commercial size.

Nearly all the forests within the Project area are well developed, old growth forests, which have no previous history of logging or other human disturbance. Stands are well developed structurally with dominant trees typically attaining heights of 20 to 25 meters and diameters of 1.0 meters. These forest stands are in a very stable or equilibrium condition. Wind is the natural disturbance agent of the forests in the Project area and regularly creates small openings or gaps in the forest canopy. Seedlings of lenga already present in the understory respond to the increased light to grow to larger sizes—a process referred to as gap-phase reproduction.

The lenga forests are noted for their simple composition and structure. The most conspicuous features of these stands are the abundant boles of live mature and old trees, recent gaps filled with dense patches of seedlings, and abundant logs and other woody debris on the forest floor. A low ground layer dominated by herbs, grasses, and lenga seedlings is typically the only plant understory.

Some human disturbance of the landscape has occurred. A small percentage of the forest—primarily in areas immediately adjacent to the coast or sheep ranches—was logged in the first half of this century. Selective logging of individual trees was the most common method, and there is still evidence of these activities in the form of blazed trees and cut logs. Fires of human origin have also killed forests in some areas. Nothofagus forests in general—and lenga forests in particular—are not well adapted to fire and fail to regenerate in its wake. This failure is probably due to the fact that natural fires seldom occur in the region. Most of the fires probably occurred in the middle of the century. North American beaver, introduced to Tierra del Fuego in 1946, have dammed streams and flooded some areas of riparian forest.

Principle Activities

The baseline or reference scenario for the project is that the entire forest area would be transformed from old growth stands to young even aged managed stands, in a manner designed to ensure sustainable yield and to comply fully with all Chilean laws and regulations. Greenhouse gas benefits come from three principle activities:

  • 1. The creation of approximately 133,000 hectares of voluntary preservation areas that will protect, among other things, 35,000 hectares of mature commercial grade forest. At present, only the portion of the reserves that protects commercial grade forest that would have been harvested in the baseline scenario is eligible for emission reduction credit. The reserves will also protect threatened sphagnum peat bogs, which may warrant credit in the future. Control all reserve lands will be transferred in perpetuity to qualified conservation organization via a conservation easement or legal equivalent.

    2. 20% aggregate retention (i.e., 20% of the area harvested will be retained in small patches of unaltered forest).

    3. Voluntary buffers that exceed legally required buffers will protect an additional 8250 hectares of commercial forest.

In the future, greenhouse gas benefits may also be created by preserving sphagnum bogs found on the Forestal Savia property that are currently vulnerable to exploitation by third parties.

Monitoring and Verification

Monitoring will be carried out by CFix and Forestal Savia, and will focus on two broad areas. First, Forestal Savia will carry out periodic (3-5 year) comprehensive surveys of the Río Cóndor property to determine changes in forest area and condition. At present aerial photography is the preferred technology for this work, but satellite imaging may be used in the future. Second, Forestal Savia is carrying out a detailed harvesting experiment that will provide statistically robust time series data on the effects of harvesting on carbon storage in biomass and necromass (necromass is defined as course woody debris—a significant carbon pool in the Río Cóndor forests).

Landscape-level and stand-level data will be verified by SGS International Certification Services. SGS will also visit harvest sites to insure that the harvesting that does occur is done is in accordance with the terms of the carbon offset project. Finally, SGS will monitor externalities that may arise as a result of the project (e.g., leakage and social impacts). SGS will ultimately issue periodic certificates that verify that the expected carbon offset has actually occurred.

  • 6. Cost

    • (a) Explanation of methodology for calculating cost data

Methodology for Calculating Cost Data

CFix, Fundación Chile and Forestal Savia consider cost data to be confidential business information. The largest cost by far is, however, the opportunity cost associated with forgoing the right to harvest tens of thousands of hectares of old growth lenga forest.

  • 7. Monitoring and verification of AIJ project activities and results

Item Please Complete

Parties that will be monitoring project activities

Forestal Savia, with assistance from CFix

Party that will be externally verifying project results

SGS International Certification Services

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

October 1998

Types of data that will be collected

Landscape level data:

  • Area harvest per year and volume removed from harvest units
  • Every 3-5 years: comprehensive remote sensing survey to detect other changes in the extent or condition of the forest present on the entire ownership.

Stand level data:

  • Harvesting experiment to track variables used in carbon model in representative stands (carbon stocks in biomass and necromass; growth and decay; biomass removal at harvest; mortality, etc.).
  • Data will be gathered in harvested and unharvested stands. Plots were carefully chosen so as to isolate the effects of harvesting (as opposed to the effects of variation between sites).

SGS will monitor other harvesting activities in the region and indicators of the social impacts of the project.

Finally, Forestal Savia is collecting a wide range of data regarding the environmental impacts of the forestry operations (e.g., stream sediment load, population dynamics of a range of organisms) as well as data on abiotic factors such as temperature, precipitation and wind.

Description of Monitoring and Verification Activities and Schedule for Implementation

Monitoring will occur as described above. Forestal Savia will carry out the monitoring activities with technical support from CFix LLC. SGS will conduct verification visits, initially every year (most likely in January) and eventually every three years. Data collection for stand-level monitoring will occur every year; remote sensing will occur every three to five years, as appropriate. If major disturbances are detected, a remote sensing assessment will be carried out immediately.

  • B. Governmental approval

Item Please Complete

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 complies fully with national and regional development and environmental goals. The integrated forest management and carbon sequestration project will provide employment for Chileans in the region while managing the forest in a way that will ensure the long-term viability of local ecosystems.

Chile’s desire to foster economic development in the region is demonstrated by the Navarino Law (Ley Nº 18.392 Del 14.01.85), which provides significant economic incentives for investments on the island of Tierra del Fuego, including tax exemptions and a subsidy equivalent to 20% of sales of goods and services created on the island.

At the same time, Chile has a strong commitment to sustainable development. For instance, Chile is a signatory of the Convention on Biological Diversity, which requires nations to integrate conservation and the sustainable use of biodiversity. The conservation measures that underpin the carbon offset project and the forest management activities that will still occur comply fully with Chile’s obligations under the Convention on Biological Diversity.

Finally, a significant percentage of the proceeds from a future sale of emission reduction credits will be used to fund ecotourism projects that will be jointly developed by Fundación Chile and Forestal Savia.

  • D. Environmental, social/cultural, and economic impacts of the AIJ project
Non-Greenhouse-Gas Environmental Impacts of the Project

The Río Cóndor Carbon Sequestration Project will have significant positive nongreenhouse gas environmental impacts, in comparison with the Projected Baseline.

Reserve Lands

The reserve lands will preserve for all time approximately 133,000 hectares of biologically rich land in one of the world’s most remote ecosystems, including over 62,000 hectares of commercial grade old-growth forest that would have been converted to young, managed stands in the baseline scenario. The property is comprised of a complex mosaic of vegetation types. The preservation of such a large, intact array of ecosystems represents a globally significant step towards the conservation of biological diversity.

Though important in its own right, this reserve is even more significant in the context of Chile’s threatened native forests. Of the 3,400,346 hectares of lenga forest identified in a comprehensive survey of vegetation in Chile, about 16%, or 566,531 hectares, are currently protected. Most other lenga forests are in private hands and vulnerable to unsustainable logging and land-use change. Furthermore, most of the lenga forests in protected areas are not part of a mosaic of forest and wetland, as is the case in Tierra del Fuego.

Retention

Aggregate retention on commercial forestry lands will help conserve biological diversity. Aggregate retention entails leaving small sections of unharvested forest, totaling 10% of the harvested area. The exact distribution will vary with the landscape, but in general the principle is to leave two tenths of each hectare harvested. This conserves biological diversity and ecosystem functions in four ways:

First, retention helps to maintain viable populations of a large array of organisms, and through them processes, that may have been locally eradicated under baseline harvest practices, by:

  • Maintaining habitat;
  • Mitigating harsh microclimates (i.e., maintain forest climate);
  • Maintaining diversity of below-ground ecosystems, which depend heavily on energy flows from above-ground organisms; and
  • Providing a "seed source" for lichens, fungi, and other slow-dispersing organisms.

Second, retention retains structural diversity, which is in turn an important factor in protecting biological diversity. Aggregate retention creates islands of forest with all the characteristics of an old-growth forest.

Third, by maintaining patches of forest, retention increases connectivity throughout the matrix of managed lands—an important factor in the preservation of genetic diversity.

Fourth, retention helps mitigate the edge effects that can diminish the effectiveness of other, larger reserves.

Increased Buffers

The increased buffers will further protect rivers and streams from sediment associated with logging activities.

Social/Cultural Impacts of the Project

The carbon offset project will not have significant social or cultural impacts (though see the following box).

Economic Impacts of the Project

The carbon offset project will entail a reduction in the scale of the forestry project, and may therefore result in less employment in the region in the short-term. In the medium- and long-term, however, any loss of employment associated with the carbon project will be offset by new opportunities in tourism created by the carbon Project. Furthermore, the carbon project is part of a larger shift in thinking about how to manage the Río Cóndor forests. Part of the emerging strategy is to add value to the wood in Chile—a step that will create significant employment opportunities.

  • E. Greenhouse gas impacts of the AIJ project

    1. Scenario description

Item Please Complete for Each Site
Site Designation

Site number (order of presentation in this report)

1 of 1

Site name/designation

Río Cóndor

Project sector

Land use change and forestry

Reference Scenario

Primary activity(ies)

Conversion of old growth forest to young, managed forest

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 Projected Baseline assumes that all forest lands found on Forestal Savia’s ownership would have been transformed into a managed even aged stands over the next 110 years in a manner that fully complies with Chilean law and that ensures sustainable yield. This scenario is based on three considerations: a) allowable practices under Chilean law; b) prevailing practices on comparable lands in the region; and c) the initial forestry plans developed by the company prior to the inception of the carbon project.

Specifically, the baseline scenario entails an average annual harvest of approximately 1200 hectares of forest over the 110 year cutting cycle, bringing the total area under management to approximately 134,698 hectares (this is a net figure and excludes legally required watershed protection measures; calculated using Forestal Savia’s GIS). It is assumed that this management would have been done in full accord with Chilean law and in a manner that would ensure sustainability.

In the future, the baseline scenario will be expanded to include the fact that the sphagnum bogs found on the property are coming under development pressure.

Predicted Project Scenario

Primary activity(ies)

Sustainable forest management and forest preservation

Description:

Forest management activities will continue, but the area under sustainable management will be reduced in three ways:

  • Approximately 35,000 hectares of permanent preserves
  • 20% aggregate retention
  • 8,250 hectares of voluntary reserves.

This scenario entails an average annual harvest of approximately 650 hectares over the 110 year cutting cycle, bringing the total area under management to 72,427 hectares (i.e., over 62,000 hectares will be protected under the carbon project that would have been harvested in the baseline project).

In the future, the predicted project scenario will include the sphagnum bog protection measures that are currently being developed by CFix.

Actual Project

Primary activity(ies)

Land use change and forestry

Description:

This is the first report.

  • 2. GHG emission/sequestration calculation methodology

GHG Emission/Sequestration Calculation Methodology

Site number

1 of 1

Project sector

Land use change and forestry

Description of Calculation Methodology for the Reference Scenario

The methodology used to calculate carbon emissions in the baseline scenario has two components. The first component is a "per hectare model" that predicts the change in carbon stores in a given hectare as the result of harvest. The model tracks carbon stored in biomass and in necromass and takes into account the following parameters: original carbon stocks; carbon removed at harvest and in subsequent silvicultural interventions; growth; decay; and mortality. Emissions are calculated to be the difference between average storage capacity in the old growth forest and average storage capacity in the managed forest. Four variations of the per-hectare model were developed for each of four forest strata and the entire forest area was stratified based on density (i.e., stems per hectare).

The per hectare models were developed primarily by Dr. Mark Harmon of Oregon State University. Data for the original carbon stocks is from statistically robust inventories carried out by Forestal Savia and by CFix. Estimates of the amount of carbon removed at harvest come from observations of yields from initial harvesting. Growth data is based on extensive studies carried out in similar forests throughout southern Chile and was compiled by Professor Patricio Nuñez of Universidad de la Frontera in Temuco, Chile. Decay data is from a statistically robust peer reviewed study done in similar forests on the Argentine side of the island of Tierra del Fuego (Frangi, J.L., L.L Richter, M.D. Barrera, and M. Aloggia. 1997. Decomposition of Nothofagus fallen woody debris in forests of Tierra del Fuego, Argentina. Canadian Journal of Forest Resources 27:1095-1102.). Mortality was estimated by Drs. Jerry Franklin, Mark Harmon, and Juan Armesto, all of whom are well regarded forest ecologists with extensive experience in the Río Cóndor forests. Conversion factors used to convert biomass and necromass to carbon are based on widely accepted values. All modeling was reviewed by Dr. Sandra Brown of Winrock International and by SGS.

The second component of the calculation methodology is a computer program that estimates the sustainable yield that can be obtained from a given area. The user enters the area of each strata to be managed, and the forest characteristics and management prescriptions for each strata (including stocking and growth rates, timing and intensity of thinnings, etc.). The program uses an iteration algorithm to find the maximum amount of material that can be removed on a sustainable basis and in accordance with the management prescriptions for each strata. Only areas that can actually be harvested are included (i.e., the total forest area less buffers, carbon reserves, and other protection areas). In the case of the baseline scenario, it was assumed that 134,968 hectares would be available for management (this is a net figure; buffers and other watershed protection measures are not included). This figure was calculated using the Forestal Savia GIS database, and is based on extensive remote sensing and ground-truthing work.

The baseline emissions for each year are simply the product of the change in average storage capacity in each strata and the area of each strata that would have been harvest.

Description of Calculation Methodology for the Project Scenario

The calculation methodology for the Project Scenario is identical to that described above. It is assumed that the same management prescriptions would have been used in both scenarios. The only difference is therefore the area available for management that is input into the harvest simulator. In the project scenario, it is assumed that 72,427 hectares are available for management. Thus, the total preservation attributable to the carbon project is just over 62,000 hectares.

Description of Calculation Methodology for the Actual Project

Predictions from the per hectare model are being compared with observed changes in harvested plots.

  • 3. GHG emission/sequestration data
    • (a) Reporting of GHG emissions/sequestration

Image
Projected Net Greenhouse Gas Benefits: All Project Sites (Continued)

(Tonnes, Full Molecular Weight Basis)

Reference Scenario Emissions Project Scenario Emissions Net GHG Benefits

(Reference Scenario - Project Scenario)

Cumulative GHG Benefits

(Reference Scenario - Project Scenario)

Year CO2 CH4 N2O CO2 CH4 N2O CO2 CH4 N2O CO2-

Equivalent

CO2 CH4 N2O
26

158,496

85,075

73,420

0

0

73,420

73,420

0

0

27

158,496

85,075

73,420

0

0

73,420

146,840

0

0

28

158,496

85,075

73,420

0

0

73,420

220,261

0

0

29

158,496

85,075

73,420

0

0

73,420

293,681

0

0

30

158,496

85,075

73,420

0

0

73,420

367,101

0

0

31

702,809

377,245

325,564

0

0

325,564

692,665

0

0

32

702,809

377,245

325,564

0

0

325,564

1,018,229

0

0

33

702,809

377,245

325,564

0

0

325,564

1,343,793

0

0

34

702,809

377,245

325,564

0

0

325,564

1,669,357

0

0

35

702,809

377,245

325,564

0

0

325,564

1,994,920

0

0

36

747,915

401,456

346,458

0

0

346,458

2,341,379

0

0

37

747,915

401,456

346,458

0

0

346,458

2,687,837

0

0

38

747,915

401,456

346,458

0

0

346,458

3,034,296

0

0

39

747,915

401,456

346,458

0

0

346,458

3,380,754

0

0

40

747,915

401,456

346,458

0

0

346,458

3,727,213

0

0

41

756,553

406,093

350,460

0

0

350,460

4,077,673

0

0

42

756,553

406,093

350,460

0

0

350,460

4,428,132

0

0

43

756,553

406,093

350,460

0

0

350,460

4,778,592

0

0

44

756,553

406,093

350,460

0

0

350,460

5,129,052

0

0

45

756,553

406,093

350,460

0

0

350,460

5,479,512

0

0

46

380,075

204,012

176,063

0

0

176,063

5,655,575

0

0

47

380,075

204,012

176,063

0

0

176,063

5,831,638

0

0

48

380,075

204,012

176,063

0

0

176,063

6,007,702

0

0

49

380,075

204,012

176,063

0

0

176,063

6,183,765

0

0

50

380,075

204,012

176,063

0

0

176,063

6,359,828

0

0

51

79,042

42,427

36,615

0

0

36,615

6,396,443

0

0

52

79,042

42,427

36,615

0

0

36,615

6,433,057

0

0

53

79,042

42,427

36,615

0

0

36,615

6,469,672

0

0

54

79,042

42,427

36,615

0

0

36,615

6,506,287

0

0

55

79,042

42,427

36,615

0

0

36,615

6,542,901

0

0

56

119,793

64,301

55,492

0

0

55,492

6,598,393

0

0

57

119,793

64,301

55,492

0

0

55,492

6,653,886

0

0

58

119,793

64,301

55,492

0

0

55,492

6,709,378

0

0

59

119,793

64,301

55,492

0

0

55,492

6,764,870

0

0

60

119,793

64,301

55,492

0

0

55,492

6,820,362

0

0

Total

32,380,349

0

0

16,911,071

0

0

15,469,278

0

0

15,469,278

6,359,828

0

0

  • (b) Additional information on GHG emissions/sequestration

Indirect or Secondary GHG Impacts (Positive and Negative)

The Project will cause numerous indirect reductions in GHG emissions that are not being claimed by the Project Proponents.

  • 1. Roots, soil and litter (no credit is being claimed for avoided emissions from the decay of roots and of organic material in the soil and litter).

2. Roads (more roads would have been built in the baseline scenario).

3. Reduced emissions from hauling and skidding.

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

The Río Cóndor Carbon Sequestration Project is relatively risk-free. The forest ecosystem that stores the carbon is more stable than most temperate forest ecosystems, and is not subject to large-scale disturbances (e.g., wind, fire or drought). In particular, the risk of fire is now due to the cold, wet climate and natural barriers to fire such as mountains, rivers and sphagnum bogs. No evidence of large-scale fire exists on the island.

Wind is by far the most common disturbance agent on the island, but usually is limited to small (<1 hectare) events [Reburtus, A.J., T. Kitxberger, T.T. Veblen, and L.M Roovers. 1997. Blowdown history and landscape patterns in the Andes of Tierra del Fuego, Argentina. Ecology 78(3):678-693]. This disturbance regime is built into the models that estimate per-hectare carbon stores. Larger windfall events are very rare and would not result in a major carbon emission due to the slow decay rate of the down material and the strong regeneration that is characteristic of lenga forests.

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

Forestal Savia is working to minimize the risk of fire associated with harvesting by installing spark suppressors on all internal combustion equipment and by training staff.

Furthermore, SGS International Certification Systems has applied a risk assessment process to the Río Cóndor Carbon Sequestration Project. Their assessment considered a comprehensive list of natural, economic, and political risks. As a result CFix will place approximately 15% of the total credits created by the project in a reserve; SGS will certify that the remaining credits are "virtually risk free."

  • F. Funding of the AIJ project

    1. Identification of funding sources

    • (a) Funding sources for project development

Funding Source Country of Funding Source Amount ($US) Percent of Total Funding (%)

CFix LLC, Fundación Chile and Forestal Savia

Chile and the U.S.A. 100%

Total

100
  • (b) Funding sources for project implementation
Funding Source Country of Funding Source Amount ($US) Percent of Total Funding (%) Is This Funding Assured? (Y/N)

CFix LLC, Fundación Chile and Forestal Savia

Chile and the U.S.A. 100% Contingent on sale of carbon credits

Total

100
  • 2. Assessment of additional funding needs:

Current or Planned Activities to Obtain Additional Funding

Ultimately, the financial viability of the carbon offset project hinges on CFix’s ability to sell carbon offset projects. Proceeds from the sale of the carbon credits will offset the foregone earnings associated with not harvesting the lands that make up the carbon project. If a carbon sale does not occur then most of lands now preserved by the carbon project will be harvested.

  • G. Contribution to capacity building and technology transfer

Contribution to Capacity Building and Technology Transfer

The capacity building and technology transfer benefits stemming from the Río Cóndor Project fall into two categories. First, the forest management component of the project is bringing a host of new technologies and practices to Chile:

  • New insights into the structure and function of the lenga ecosystem and new ways of thinking about how to these insights into management prescriptions.
  • New technologies for generating and using forest inventories and for developing sustainable harvest models.
  • State of the art low-impact road building techniques
  • New harvesting, skidding and sawmilling systems
  • New remanufacturing and marketing strategies for finished products.

The carbon project per se is also bringing new technologies and practices to Chile:

  • CFix has worked to involve local scientists and foresters in the data gathering and carbon dynamic modeling. CFix brought five Chilean scientists to the United States for a carbon modeling workshop with North American scientists.
  • CFix has also been working in close partnership with Fundación Chile, which is now taking the lead in developing five additional carbon offset projects (including two which have been submitted to USIJI: Sociedad Inversora Forestal and Imobliario Las Delicias).
  • H. Recent developments, technical difficulties, and obstacles encountered
Recent Project Developments

Project operations began in October 1999, and USIJI approved the proposal on March 29, 2000, subject to agreement with CONAMA on the baseline scenario.

In January 2000 SGS International Certification Systems completed their final assessment of the Río Cóndor Carbon Sequestration Project. They are currently completing an internal review process and should be issuing a certificate of project design along with a schedule of projected emission offsets in July 2000.

CFix and Fundación Chile have been interacting regularly with CONAMA, the Chilean government entity that evaluates carbon offset projects, regarding the Río Cóndor baseline. After careful analysis, CONAMA has concluded that the proposed Río Cóndor baseline scenario is correct.

Technical Difficulties and Other Obstacles Encountered
  • I. Additional information

Additional Information

N/A

J. Annex

  • 1. Host country acceptance of the AIJ project

  • 2. Letters of approval of this AIJ project report:

    • See attached letter of concurrence.

    K. Addendum for USIJI Secretariat Only

    1. Lead contact for project reporting

Item

Please Complete If Applicable
Organization

Name

Darby Jack

Organization (English)

CFix

Telephone

(360) 676-9400

Fax

(360) 676-4465

E-mail

dwj@trilliumcorp.com

  • 2. Milestones

Milestone Date Initiated (if applicable) (month/year) Date Completed (if applicable) (month/year)

Substantive discussions regarding project

March 1995

Pre-feasibility study

Feasibility study

July 1998 August 1998

Project development (including construction and/or setting up on-site offices, purchase of lands, etc.)

Lands were purchased in August 1993. Carbon project development began in July 1998 Continuing

Project operations (including starting management practices, distributing information, training, purchase of operating equipment, etc.)

October 1999

Sequestration or reduction of GHG emissions

October 1999

Project financing obtained

Final financing will not be secured until GHG emissions reduction credits are sold

Other (please specify)

  • 3. Assignment of GHG emission reductions
    • (a) Methodology for allocating GHG emission reductions.

Methodology for Allocating GHG Emission Reductions

All emissions reductions are assigned to CFix. Proceeds from the sale of emissions reductions will be divided between CFix, Forestal Savia and Fundación Chile according to a mutually agreed-upon formula.

  • (b) Final assignment of GHG emission reductions

Participant Percentage of the Total Emission Reduction Assigned to This Participant

CFix

100

Total

100
  • 4. Baseline GHG emission scenario (prior 12 months)

Period Baseline Emissions (metric tonnes)
From (month/year) To (month/year) CO2 CH4 N2O Other (Specify) CO2-Equivalent
1/97 1/98 0 0 0 0 0
Methodology for Calculating Baseline Emission/Sequestration Estimates

No net emissions occurred from the property in the year prior to the commencement of the project because no significant human activity occurred during that period. The carbon project achieves emissions reductions by reducing the area harvested as part of the Río Cóndor forestry project, which began harvesting operations in October 1999.


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