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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)
 

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

List of Projects

  • A. Description of the AIJ project

    1. Title of project: Noel Kempff Mercado Climate Action Project

    2. Host country: Bolivia

    3. Brief project description:

    • The Noel Kempff Mercado Climate Action Project is a forest protection and sustainable management project located in eastern Bolivia. The project has expanded the existing Noel Kempff Mercado National Park, and will reduce future GHG emissions within both the existing Park and the Park expansion area, by eliminating legal and illegal logging activities (Component A). The project also will sequester carbon over time through the long-term protection and regeneration of the Park expansion area’s already logged mahogany, oak, cedar, and palm forests, and through a mix of income-generating activities designed to support long-term preservation (Component B). Finally, GHG mitigation will also result from leakage prevention activities (Component C). Although GHG emission reductions and carbon sequestration are anticipated to occur within both the existing Park and the Park expansion area, the project will only claim GHG benefits associated with activities within the Park expansion area.

    4. Participants:

Name of Organization or Individual Country

Government of Bolivia (GOB)

Bolivia

Fundación Amigos de la Naturaleza (FAN)

Bolivia

The Nature Conservancy (TNC)

U.S.A.

American Electric Power System (AEP)

U.S.A.

PacifiCorp

U.S.A.

BP Amoco

U.K.
Item
Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

Gobierno de Bolivia

Name of organization (English)

Government of Bolivia

Acronym (original language)

GDB

Acronym (English)

GOB

Department

Ministry of Sustainable Development and Planning

Function(s) within the AIJ project activities

Project Board Member

Street

City

La Paz

State

Post code

Country

Bolivia

Telephone

Fax

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

MacLean

First name, middle name

Ronald

Job title

Minister of Sustainable Development and Planning

Direct telephone

Direct fax

Direct e-mail

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

Surname

Roca Hurtado

First name, middle name

Neisa

Job title

Vice Minister of Environment, Natural Resources and Forest Development

Direct telephone

Direct fax

Direct e-mail

Item
Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

The Nature Conservancy

Name of organization (English)

The Nature Conservancy

Acronym (original language)

TNC

Acronym (English)

TNC

Department

Function(s) within the AIJ project activities

Project development, technical assistance, funds management, project board member

Street

4245 North Fairfax Drive

City

Arlington

State

Virginia

Post code

22203-1606

Country

USA

Telephone

703-841-5300

Fax

703-841-4880

E-mail

World Wide Web-URL address

http://www.tnc.org

Administrative Officer Responsible for the Project

Surname

Coda

First name, middle name

Mike

Job title

Director, Climate Change Program

Direct telephone

Direct fax

Direct e-mail

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

Surname

Fistenberg

First name, middle name

Eric

Job title

Project Manager

Direct telephone

703-841-2038

Direct fax

703-841-4880

Direct e-mail

efirstenberg@tnc.org

Item
Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

American Electric Power System

Name of organization (English)

American Electric Power System

Acronym (original language)

AEP

Acronym (English)

AEP

Department

Function(s) within the AIJ project activities

Financing, project board member

Street

1 Riverside Plaza

City

Columbus

State

Ohio

Post code

43215-2373

Country

U.S.A.

Telephone

Fax

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Draper, Jr.

First name, middle name

E. Linn

Job title

Chairman of the Board, President and Chief Executive Officer of American Electric Power Company, Inc. and American Electric Power Service Corporation

Direct telephone

Direct fax

Direct e-mail

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

Surname

Pruett

First name, middle name

Jay

Job title

Manager, Environmental Stewardship

Direct telephone

214-777-1175

Direct fax

214-777-1380

Direct e-mail

japruett@aep.com

Item
Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

PacifiCorp

Name of organization (English)

PacifiCorp

Acronym (original language)

None

Acronym (English)

None

Department

Function(s) within the AIJ project activities

Financing, project board member

Street

825 NE Multnomah, Suite 2000

City

Portland

State

Oregon

Post code

97322-2155

Country

Telephone

Fax

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Edmonds.

First name, middle name

Bill

Job title

Direct telephone

503-813-5291

Direct fax

503-813-5272

Direct e-mail

bill.Edmonds@pacificorp.com

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

Surname

(Same as above)

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

BP Amoco

Name of organization (English)

BP Amoco

Acronym (original language)

Acronym (English)

Department

Function(s) within the AIJ project activities

Financing, project board member

Street

801 Warrenville Road

City

Lisie

State

Illinois

Post code

60532

Country

U.S.A.

Telephone

Fax

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Kraisinger

First name, middle name

Donna

Job title

Director, External Relations, HSE, North America

Direct telephone

213-486-2351

Direct fax

213-486-6402

Direct e-mail

kraisidl@bp.com

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, reforestation, park expansion, and sustainable forest product enterprise development

Project Location

Country

Bolivia

Exact location (city, state, region)

Province of Velasco, the eastern-most province of the Department of Santa Cruz

Key Dates and Current Stage of Project

Project starting date (month/year)

January 1997

Project ending date (month/year)

December 2026

Project lifetime (years)

30

Current stage of project

In progress

General Project Description and Technical Data

The project has three GHG mitigation components.

Component A of the project will involve the following activities: 1) completing the process of indemnifying and retiring logging concessions on 634,287 hectares (ha)(a) of tropical forest located adjacent to the Noel Kempff Mercado National Park, 2) expanding the boundaries of the Park by 842,095 ha, which includes the 634,287 ha of newly indemnified concession area, 3) establishing a short-term protection plan for the Park expansion area, and 4) establishing the legal framework necessary for implementation of Component B.

Component B of the project will preserve and protect the carbon sequestered on the 1,523,466 ha of the expanded Park over 30 years. To ensure the long-term protection of the expanded Park, the project will establish a mix of income generating activities, including: 1) establishing a Park protection endowment fund, 2) generating profit from a new genetic resources enterprise, and 3) constructing the infrastructure necessary to support a model eco-tourism program within the Park.

Component C of the project will mitigate GHG emissions in secondary areas beyond the boundaries of the expanded Park. This Component is designed to ensure that the net GHG mitigation achieved through Component A and B activities are protected from significant leakages. This Component will provide alternative, environmentally sustainable economic opportunities for the local population, and technical assistance to the indemnified concessionaires to implement sustainable forest management practices.

In addition to the GHG mitigation components discussed above, the project involves some general measures, which fall under Component G of the project. This Component will establish a comprehensive and verifiable GHG monitoring, record keeping, and reporting regime for the project. In addition, Component G will designate a portion of overall project funds to cover the administrative costs incurred by the Government of Bolivia to review and oversee project activities over the lifetime of the project.

Although GHG emission reductions and carbon sequestration are anticipated to occur within both the existing Park and the Park expansion area, the project will only claim GHG benefits associated with activities within the Park expansion area.

(a) This estimate is different from the original estimate of 639,056 ha provided in the project proposal and indicated in the report submitted to the UNFCCC in 1997.

  • 6. Cost
    • (a) Explanation of methodology for calculating cost data
Methodology for Calculating Cost Data

Project start-up costs were estimated to be US$9.5 million at the beginning of the project, with a portion of these up-front costs dedicated to establishing long-term funding mechanisms for the project. Total project costs were estimated to be significantly greater than US$9.5 million over the 30-year life of the project, and are to be covered by the long-term funding mechanisms.

Start-up cost estimates were based on a variety of factors, including the following:

Indemnification: Value of remaining harvestable timber on the concessions that were terminated, and the value of infrastructure (e.g., bridges, roads, sawmills, etc.) developed and paid for by the former concessionaires.

Short-term management and protection: Budget estimates for 5 years of park management and infrastructure improvements were based on FAN’s previous years of experience in park management, and the budget was determined considering only the costs to manage the expansion area of the park under the assumption that FAN would continue to receive or obtain from other sources the funding to manage the original area of the park.

Endowment Fund: The capital amount to establish a park endowment was determined to ensure an estimated minimum of US$75,000 per year to support the park in perpetuity.

Ecotourism Development: Estimates were made to finalize needed infrastructure to ensure adequate facilities that could generate revenues for the park.

FAN R&D and Natural Resources Enterprise: US$1.2 million in investments was split evenly between R&D and capitalization of a new Bolivian company. The R&D effort supports basic research on the park and Bolivian species, and searches for potentially commercial products to be marketed by the company. The new company, Canopy Botanicals, was capitalized with US$600,000 and is able to seek additional capital if necessary.

Leakage Prevention with Communities and Ex-Concessionaires: About 10% of the project budget is dedicated to mitigating potential greenhouse gas leakages, and was budgeted to support a community program for 5 years.

GHG Monitoring: Nearly 20% of the total start-up project budget was dedicated to GHG monitoring, based on the commitment to prove that carbon benefits from this type of forest project are measurable, credible, and verifiable. The budget was developed assuming intensive monitoring activities using both in-country and international experts in years 1,3,5, and then every 5 years after that over 30 years. The entire project-monitoring budget was included in the start-up US$9.5 million cost estimate.

JI Institutional Development: Funds were allocated to the Government of Bolivia to ensure they had the capacity to manage such projects, and to support other general efforts to protect biodiversity in Bolivia.

TNC Project Administrative Costs: Budget includes costs of direct project administration for 3-5 years only. Administrative costs of the Project Manager organization (FAN) are embedded in the components managed directly by FAN.

  • (b) Cost data–Project development

    Project development costs surpassed US$320,000 over a period of approximately 1.5 years.

    (c) Cost data–Project implementation

    Project start-up costs were recalculated and raised to a total of US$9.6 million in 1998, with the Conservancy and FAN committing to raising US$2.6 million (US$100,000 more than originally planned) for the project.

    Total project costs for 30 years are currently being projected, but are estimated to reach up to US$15 million, with funding coming from the endowment, Canopy Botanicals, and ecotourism revenues.

    In addition, American Electric Power and Electric Power Research Institute are funding a complementary project for US$500,000 over 3 years to conduct research on the use of aerial videography for carbon monitoring in Noel Kempff.

    Total annual implementation costs to date, including establishment of endowment, Canopy Botanicals, and completion of ecotourism infrastructure, have been:

  1. US$2,671,141
  2. US$2,608,547
  3. US$1,140,019
Itemized Project Implementation Costs Image

7. Monitoring and verification of AIJ project activities and results

Item

Party(ies) that will be monitoring project activities

FAN and the Project Implementation Team (to be appointed by the participants).

Party(ies) that will be externally verifying project results

The Government of Bolivia will verify that they are not in agreement with results, specifically with carbon-offset claims. In March 2000, The Nature Conservancy convened a panel of external experts (Technical Advisory Panel) to critically review and comment on the technical monitoring aspects of the project, and their comments and recommendations are currently being compiled and incorporated into project monitoring plans and activities. The Technical Advisory Panel is a first step towards external verification by a third party.

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

April 1997

Types of data that will be collected

Carbon (C) changes in primary terrestrial pools (aboveground biomass and necromass, belowground biomass, soils, and the forest floor); tree population structure and growth; changes in land cover, land-use, and land management; natural disturbances; climate; changes in relevant laws and policies; and socioeconomic trends and impacts on C sources and sinks.

Description of Monitoring and Verification Activities and Schedule for Implementation

The comprehensive draft monitoring and verification plan was developed by May 1997 and implementation began in 1997 with fieldwork and analysis to establish the baseline. The monitoring and verification plan includes specifications for: 1) monitoring forest biomass and carbon content of other forest components; 2) monitoring of secondary impact parameters; 3) establishing and maintaining monitoring plots; 4) conducting quality assurance tests and quality control procedures; and 5) developing a summary of the equations that will be used to convert raw data to CO2-equivalent units.

Monitoring tasks will include: 1) routinely tracking the data elements for C contents, flux rates, and secondary impacts at three locations within the project area; 2) verifying the assumptions made to establish the project reference case emissions and secondary impacts projections, and correcting or improving assumptions, as needed; and 3) comparing the documented changes in total C and secondary impacts at the three monitoring locations and making necessary adjustments to the reference case.

  • 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 all aspects of the project have been designed to conform with the conservation goals of the Bolivian Government, as well as Bolivia’s Popular Participation and Forestry Laws. Moreover, Component G of the project will provide funding to assist the Bolivian Government in strengthening its AIJ institutional capacity to further the country’s sustainable development goals and the GHG mitigation objectives of the UNFCCC.

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

The project will protect biodiversity and wildlife habitat, improve water and air quality, and stabilize the soil in the expanded Noel Kempff Mercado National Park.

Social/Cultural Impacts of the Project

In addition to involving the local communities in Park protection and eco-tourism activities, the project will introduce a community development program designed to improve the local standards of living. This program will be implemented in coordination with the local government. The project will ensure that the expanded Park does not become a development magnet that will increase the local population to unsustainable levels. Project developers will also work with the local communities to: secure community property rights; implement sustainable uses of community land; strengthen community organizations; improve basic health and education services; and establish environmental education programs.

The project will also help to protect important Guarasug’we cultural vestiges (e.g., ceremonial items used in burials) located in the northeastern corner of the Park expansion area. These vestiges have significant anthropological value to the local cultural heritage. Although the Guarasug’we people are considered culturally extinct, elements of their culture are still present in the area.

Economic Impacts of the Project

The project will provide new sustainable employment opportunities for the local population in Park protection, construction, transportation, agroforestry and eco-tourism micro enterprise formation, and the commercialization of genetic resources. For example, the project has established a new venture, Canopy Botanicals, SRL, to commercialize green products. In addition to generating income for the Park, Canopy Botanicals will provide local employment opportunities. Similarly, development of the Park’s eco-tourism infrastructure, and training in tourism business development will provide opportunities to establish eco-tourism micro-enterprises and will assist the local population in gaining access to investment capital.

  • E. Greenhouse gas impacts of the AIJ project

    1. Scenario description

Item
Site Designation

Site number (order of presentation in this report)

1 of 3

Site name/designation

Component A, Park Expansion Area

Project sector

Land-use change and forestry

Reference Scenario

Primary activity(ies)

Logging, timber stock depletion

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 project developers assume that without the project, 296,099 hectares (ha) of accessible commercial forest lands within the Park expansion area would be harvested in 29,610 ha blocks each year over a 10 year period. After all blocks have been cut, the proposal assumes that logging activities would return to the first block, where trees that have reached the legally extractable class would be harvested. In the original project proposal and in the report submitted to the UNFCCC in 1997, the project developers assumed that by 2005, harvest intensity would decrease as all timber stocks are depleted. Developers now anticipate that harvesting activities will decrease from 2007 and onward, as only younger trees with the minimum-harvesting diameter are removed.

Predicted Project Scenario

Primary activity(ies)

Short-term forest preservation and Park expansion

Description:

Component A of the project is anticipated to complete the process of indemnifying and retiring logging concessions on 634,287 ha of tropical forest located adjacent to the Noel Kempff Mercado National Park. This estimate is different from the original estimate of 639,056 ha provided in the project proposal and reported in the report submitted to the UNFCCC in 1997. In addition, this Component is expected to expand the boundaries of the Park by 842,095 ha to include: 1) the 634,287 ha of newly indemnified concession area, 2) a previously indemnified concession area, 3) two conservation reserves, and 4) a private land holding. Through the cessation of logging activities on the 296,099 ha of accessible commercial forestlands within the Park expansion area, Component A is projected to mitigate GHG emissions that would have occurred in the reference scenario. A short-term protection plan for the Park expansion area is expected to assure that the GHG mitigation achieved through the indemnification and Park expansion are preserved (a long-term conservation and management regime is expected to be established under Component B).

Actual Project

Primary activity(ies)

Short-term forest preservation and Park expansion

Description:

The project has retired logging concessions within the 296,099 ha of accessible commercial forestlands within the Park expansion area. In addition, a short-term protection plan has been initiated to prevent burning and clearing of forest within the expansion area for agricultural use.

Item
Site Designation

Site number (order of presentation in this report)

2 of 3

Site name/designation

Component B, Park Expansion Area

Project sector

Land-use change and forestry

Reference Scenario

Primary activity(ies)

Burning of depleted forest area, conversion to agricultural lands

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

Yes

No

This is the first project report.

Description:

In the absence of the project, the project developers assume that by 2007, the timber stocks available on the 296,099 ha of accessible commercial forestlands within the Park expansion would be nearly depleted. Despite lower birth rates, increased migration into the area will fuel increases in the population surrounding the Park. Population growth coupled with reductions in harvesting opportunity would lead to gradual small farmer penetration and burning and clearing of forests within the expansion area for colonization, followed by larger scale mechanized agriculture and cattle ranching. Already, 375 ha of forestland within the area have been cleared for agricultural use.

Predicted Project Scenario

Primary activity(ies)

Long-term forest preservation

Description:

Component B of the project is expected to preserve and protect the carbon sequestered on the 1,523,466 ha of the expanded Park over a period of 30 years. To ensure the long-term protection of the expanded Park, the project will establish a mix of income generating activities to finance the long-term protection of the expanded Park. These activities are projected to generate GHG benefits by: 1) averting conversion of land from forests to agriculture, and 2) assuring the long-term protection of existing carbon stocks within the Park.

Although the project measures may allow the carbon stored in both forest cover and soil to increase overtime, the direction and magnitude of these changes are presently unknown. Thus, the project developers assume that the carbon stocks within the expanded Park are currently in a state of equilibrium and GHG benefits associated with potential carbon stock increases are not measured.

Actual Project

Primary activity(ies)

Long-term forest preservation

Description:

The project has retired all logging concessions on the 296,099 ha of accessible commercial forestlands with the Park Expansion area. FAN is working to establish a mix of income generating activities to finance the long-term protection of the expanded Park.

Item
Site Designation

Site number (order of presentation in this report)

3 of 3

Site name/designation

Component C, Sustainable Community Development and Leakage Prevention

Project sector

Land-use change and forestry

Reference Scenario

Primary activity(ies)

Non-sustainable logging and slash and burn agriculture

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

Yes

No

This is the first project report.

Description:

Without the project, the project developers assume that some members of the community living within and beyond the Expanded Park boundaries would continued to be employed by timber companies, which have been identified for indemnification as part of Component A of the project. The project developers assume that others within the local community would continue to be involved in non-sustainable slash-and-burn agriculture and the extraction of heart-of-palm within the Park.

Predicted Project Scenario

Primary activity(ies)

Technical assistance and training

Description:

Component C of the project is anticipated to reduce increases of GHG emissions within and beyond the boundaries of the expanded Park. This Component is designed to ensure that the net GHG mitigation achieved through Component A and B activities are protected from significant leakages. Component C activities include: 1) providing short-term assistance to help local communities that now depend on logging to transition to alternative, environmentally-sustainable economic activities; 2) creating opportunities for micro-enterprise development; and 3) providing technical assistance to the indemnified concessionaires to implement sustainable forest management practices.

Actual Project

Primary activity(ies)

Technical assistance and training

Description:

Of the four logging concessions retired by the project, three of the concessionaires have gone bankrupt. Projects funds paid to these concessionaires to cease logging activities on the project area were used to pay off concessionaires’ debts rather than to relocate logging activities to other areas. FAN is monitoring the activities of the concessionaire that is still in operation and plans to provide technical assistance to the concessionaire in sustainable forest management.

  • 2. GHG emission/sequestration calculation methodology
GHG Emission/Sequestration Calculation Methodology

Site number

1 of 3

Project sector

Land-use change and forestry

Description of Calculation Methodology for the Reference Scenario

The project developers assume that without the project, 296,099 ha of accessible commercial forestlands within the Park expansion area would be harvested in 29,610 ha blocks each year over the next 10 years. To develop the reference scenario emission estimates for Component A, the project developers first estimated carbon stocks at the Component A project site. Estimates of carbon stored in above- and belowground biomass within the Component A project area are based on a baseline inventory conducted in 1997 using data collected from 625 permanent plots and a general biomass equation for moist tropical forests (Brown, 1997). The density of above- and belowground biomass was then multiplied by the standard carbon-to-biomass ratio of 0.5 t C / 1 t dm to convert to tonnes of carbon.

The baseline inventory report estimates total biomass in forest types most likely to be logged commercially to be 250 t C/ha. The inventory report assumes 5.7 t C/ha of timber will be extracted during logging. The estimate of biomass extraction is based on data on remaining exploitable land with commercially attractive timber types in the Expansion area (296,099 ha) and reported extraction rates (Halloy, S. 1994, Flores and Miranda 1994).

In addition to the 5.7 t C/ha lost due to timber extraction, it is assumed that carbon will be lost as biomass is destroyed during the extraction process. The estimate of biomass destroyed in the logging process, 2.8 t C/ha per tonne of timber extracted, was developed from permanent plots established in a recently logged area adjacent to the expansion zone. Thus, total biomass carbon lost during logging is estimated to be 21.6 t C/ha (=5.7 t C/ha + (5.7 t C/ha * 2.8 t C/ha). Rather than take into account the potential for carbon storage in the harvested biomass, and the slow release of carbon over time as the destroyed and harvested biomass decay, the project developers assume that the biomass carbon immediately oxidizes.

The project developers assume that the 296,099 ha of accessible commercial forestlands would be harvested in 29,610 ha blocks each year over the next 10 years. After all blocks have been cut, it is assumed that logging activities would return to the first block, where trees that have reached the legally extractable class would be harvested. By 2007, the project developers assume that harvest intensity would decrease as all timber stocks are depleted. Harvesting activities from 2007 and onward would involve only the removal of younger trees with the minimum-harvesting diameter.

To estimate the annual biomass carbon losses associated with logging activities, the project developers multiplied the annual estimate of biomass carbon lost per hectare (this amount is highest between 1997 and 2007 due to a greater logging intensity) by the annual amount of hectares logged. Assuming that 50% of the biomass carbon extracted is recovered at the sawmill and stored in long-lived products, the project developers estimate carbon losses associated with reference case logging activity in the Park expansion area over the 30 year project lifetime to be 11,879,804 t C or 43,559,281 t CO2.

Description of Calculation Methodology for the Project Scenario

The project is anticipated to generate carbon benefits by ceasing logging activities in the Park expansion area (Component A).

Although the project measures may allow the carbon stored in both forest cover and soil to increase over time, the magnitude of these changes is presently unknown. Thus, the project developers assume that the carbon stocks at the project site are currently in a state of equilibrium and GHG benefits associated with potential carbon stock increases are not measured. This is a conservative assumption that results in an underestimate of benefits.

The quantity of carbon stored as a result of the project is estimated as the difference between what would have been lost in the reference scenario, and current carbon stocks. Thus, net project GHG benefits over the 30-year project lifetime are anticipated to be equal to the emissions that were estimated to occur in the reference scenario, which as indicated are 11,879,804 t C or 43,559,281 t CO2.

Description of Calculation Methodology for the Actual Project

A GHG inventory was conducted on the project site over a six-month period between May and October 1997. The data gathered during this inventory was used to improve the GHG calculations described above. Subsequent inventories are planned for future years during the same season.

GHG Emission/Sequestration Calculation Methodology

Site number

2 of 3

Project sector

Land-use change and forestry

Description of Calculation Methodology for the Reference Scenario

Once timber stocks are depleted on the 296,099 ha of accessible commercial forest lands, the developers anticipate gradual small farmer penetration and burning and clearing of forests within the expansion area for colonization, followed by larger-scale mechanized agriculture and cattle ranching. Already, 375 ha of forestland within the area have been cleared for agricultural use. The project developers estimated carbon losses in each major pool (i.e., aboveground biomass, necromass, soil) due conversion of 13,915 ha of the project to agricultural lands.

Based on population growth data, the project developers estimated the number of hectares cleared annually for agricultural uses. In addition, the project developers estimated that 203 t C/ha would be lost due to land conversion. This estimate is based on the assumption that, due to land conversion of the logged areas, 100% of carbon stored in aboveground biomass (183 t C/ha), 50% of soil carbon (17 t C/ha), and 90% of necromass (3 t C/ha), will be lost.

To calculate annual carbon losses due to land conversion, the project developers multiplied 203 t C/ha by the number of hectares estimated to be cleared in a given year. Over the 30-year project lifetime, the project developers estimate that 2,824,745 t C or 10,357,398 t CO2 would be emitted as the logged project area was converted to agricultural land.

In the absence of the project, the project developers assume that by 2007, the timber stocks available on the 296,099 ha of accessible commercial forestlands within the Park expansion would be nearly depleted. Population growth coupled with reductions in harvesting opportunity would lead to gradual small farmer penetration and burning and clearing of forests within the expansion area for colonization and agricultural use.

The developers estimate the amount of N2O-C equivalent emitted as the depleted forest area is burned and converted to agricultural lands based on the assumption that 183 t C/ha of aboveground biomass will be lost due to burning. Of this 183 t C/ha emitted, the developers assume that 28 t N20-C equivalent / ha is released. To calculate annual N2O emissions due to land forest burning, the project developers multiplied 28 t N20-C equivalent / ha by the number of hectares estimated to be burned in a given year. Over the 30-year project lifetime, the project developers estimate 389,620 t N2O-C equivalent or 1,428,607 t N2O-CO2 equivalent would be emitted due to burning of the logged project area.

Based on the above calculations, the project developers estimate total emissions associated with burning and clearing of forests within the expansion area, followed by larger scale mechanized agriculture and cattle ranching, to be 3,214,365 t C, or 11,786,005 t CO2.

The proposal does not estimate NOx, CO, or CH4 emissions released as the depleted forest area is burned and converted to agricultural lands in the reference scenario.

Description of Calculation Methodology for the Project Scenario

The project is expected to preserve and protect the carbon sequestered on the 1,523,466 ha of the expanded Park over a period of 30 years (Component B). Although the project measures may allow the carbon stored in both forest cover and soil to increase over time, the magnitude of these changes is presently unknown. Thus, the project developers assume that the carbon stocks within the expanded Park are currently in a state of equilibrium and GHG benefits associated with potential carbon stock increases are not measured. This is a conservative assumption that results in an underestimate of benefits.

The quantity of carbon stored as a result of the project measures is estimated as the difference between what would have been lost in the reference scenario, and current carbon stocks. Thus, net project GHG benefits are anticipated to be equal to the emissions that were estimated to occur in the reference scenario¾ 3,214,365 t C, or 11,786,005 t CO2.

Description of Calculation Methodology for the Actual Project

A GHG inventory was conducted on the project site over a six-month period between May and October, 1997. The data gathered during this inventory was used to improve the GHG calculations described above. Subsequent inventories are planned for future years during the same season.

GHG Emission/Sequestration Calculation Methodology

Site number

3 of 3

Project sector

Land-use change and forestry

Description of Calculation Methodology for the Reference Scenario

This information is not yet available.

Description of Calculation Methodology for the Project Scenario

This information is not yet available.

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 still under development. Cumulative GHG benefits associated with the project are anticipated to be 15,094,169 t C-equivalent or 55,345,286 t CO2-equivalent. This estimate is based on 53,916,679 t CO2 and 4,608 t N2O (equivalent to 1,428,607 t CO2).

      (b) Additional information on GHG emissions/sequestration

Indirect or Secondary GHG Impacts (Positive and Negative)

Increases in GHG emissions in secondary areas (adjacent forest reserve and communities west of the Park) are expected to occur over time. These increases are not likely to be directly related to the implementation of the project measures, but instead are expected to result from the expansion of agricultural activities towards the Park borders, and the expansion of regional timber activities.

However, the project may indirectly affect GHG emissions in the secondary areas if indemnified concessionaires use the proceeds of the Component A indemnification to expand their operations elsewhere. The potential for such an impact is limited due to legal and zoning constraints within the Department of Santa Cruz. In addition, implementation of Component C of the project, which will provide technical assistance to the indemnified concessionaires to implement sustainable forest management practices, may reduce these secondary emissions.

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

With the exception of natural disaster, the principle factors that would cause the direct loss of GHG benefits achieved by the project stem from human activity within the Park boundaries.

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

FAN will implement a Park management regime to mitigate project risks associated with anthropogenic impacts and natural occurrences. Under this management regime, FAN will conduct the following measures to minimize these risks: maintenance and protection of standing biomass, fire control, Park access control, fire management and ranger training, and management training for operators of permitted activities.

In addition, Component C of the project is designed to reduce increases of GHG emissions within and beyond the boundaries of the expanded Park. The activities conducted under Component C are discussed in Section A.5. and E.1 of this document.

  • F. Funding of the AIJ project

    1. Identification of funding sources

    • (a) Funding sources for project development

      Project development was funded primarily by American Electric Power and exceeded $320,000 over 1.5 years.

      (b) Funding sources for project implementation

Funding Source Country of Funding Source

Amount

($US)

Percent of Total Funding

(%)

Is This Funding Assured? (Y/N)

TNC/FAN

U.S./Bolivia 2,600,000 27 Y

Industry Partners

U.S. 7,000,000 73 Y

Total

9,600,000 100
  • 2. Assessment of additional funding needs
Current or Planned Activities to Obtain Additional Funding

The project is fully funded and all project funds are assured.

  • G. Contribution to capacity building and technology transfer
Contribution to Capacity Building and Technology Transfer

Component G of the project will contribute to institutional capacity building by providing funds to the Government of Bolivia to cover costs associated with project review, approval, and oversight over the project lifetime. By covering these costs, the project will assist the Government in obtaining accurate AIJ pilot phase information required to successfully implement an AIJ program beyond the pilot phase.

In addition, FAN’s research and development work will contribute to Bolivia’s implementation of a new environmentally sound national approach to germplasm protection and sustainable utilization. FAN’s work will yield knowledge and expertise that can be transferred to institutions and local and national producers through existing technology transfer institutions, such as the Bolivian Sustainable Forestry Project (BOLFOR), and through the Park’s management activities and community programs.

  • H. Recent developments, technical difficulties, and obstacles encountered
Recent Project Developments

Kenneth MacDicken, from Winrock International, visited Santa Cruz and the Noel Kempff Park Expansion Area between April 20 and May 11, 1997 and conducted the following activities: 1) provided training in forest carbon monitoring techniques and global positioning system receiver use to FAN and other staff who will be involved in project monitoring; 2) collected and analyzed data for the reference scenario; 3) collected map and vegetation type data for use in designing the monitoring plan; 4) delivered carbon monitoring equipment purchased in the U.S. to FAN; and 5) identified initial plot locations using the vegetation map and known road locations.

In addition, Winrock International technical staff conducted a carbon stock inventory over a six-month period between May and October, 1997. The data collected during this inventory was used to update the GHG estimates provided in this report.

In 1999, a more thorough carbon inventory was conducted in reference case plots in order to collect data on actual logging impacts in a nearby logging concession. This inventory is critical to estimate what logging impacts in the project area would have been without the project, and to track how logging impacts change over time in the reference case plots. Additional work was also done to develop and access better information needed to construct 30-year projections of the without-project scenario, such as how concessionaires might have responded to recent forestry legislation in the project area.

In March 2000, an external Technical Advisory Panel, consisting of the following individuals, was convened by The Nature Conservancy expressly to review the carbon benefits analyses being undertaken in two AIJ pilot projects in which the Conservancy is a participant, the Noel Kempff Climate Action Project in Bolivia and the Rio Bravo Carbon Sequestration Project in Belize:

  • Marco Boscolo, Harvard University
  • Elizabeth Losos, Smithsonian Tropical Research Institute
  • John Nittler, BOLFOR
  • R. Neil Sampson, The Sampson Group

Pedro Maura-Costa, EcoSecurities (written comments only)

Also participating were Ken MacDicken, Center for Forest Research (CIFOR); Sandra Brown, Matt Delaney, Mark Powell, and John Kadyszewksi, Winrock International; Oscar Paz Rada and David Choque Cruz, Bolivian Ministry of Sustainable Development and Planning; Myrna Hall, State University of New Yory; Vincent Palacio and Darell Novelo, Programme for Belize; Richard Vaca, Fundacion Amigos de la Naturaleza; Bill Stanley, Tia Nelson, Mike Coda, Eric Firstenberg and Margo Burnham, The Nature Conservancy.

Work planned for 2001 focuses on refining various quantitative analyses needed to improve baselines for the averted logging component and for the averted land conversion component and developing methods for tracking and estimating leakage for both the averted land conversion and averted logging components.

No carbon inventory data will be collected in 2001. Supplemental carbon inventory data collection will occur in 2002 or later.

Technical Difficulties and Other Obstacles Encountered

Data collected in 1999, and recent changes in the Bolivia forestry law and forestry practices in Bolivia, have triggered the carbon monitoring team to revisit how the reference case (without-project scenario) should be projected and tracked over time. Efforts will be focused on this issue in the coming two years.

  • 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)

Bolivia/The Noel Kempff Mercado Climate Action Project

Dr. Antonio Aranibar Quiroga, Minister, Ministry of Foreign Affairs

14 November 1996

  • 2. Letters of approval of this AIJ project report
    • See attached letter of concurrence.