| European
Tropical Forest Research Network |
TOWARDS SOCIALLY AND ENVIRONMENTALLY FRIENDLY CARBON: LEARNING FROM PILOT PROJECTS IN BOLIVIA AND BRAZIL
By Peter H. May, Emily Boyd, Fernando Veiga and Manyu Chang
The potential for regulatory measures to succeed in abating deforestation and protecting the environmental services that forests provide, such as carbon sequestration, have been limited. In response, innovative approaches to conservation and carbon sequestration are emerging among civil society and producer organisations in many parts of Latin America. Yet, the use of markets for global environmental services and their role in generating local sustainable development benefits remains a contentious issue, with little in-depth micro-level research into the impacts of market incentives on small or marginalised communities.
The Clean Development
Mechanism
Carbon sequestration projects aim to generate carbon credits based on Article
12 of the Clean Development Mechanism (CDM) of the Kyoto Protocol benefiting
their executors, their financiers, as well as global society. The CDM is one
of the Protocol's so-called flexibility mechanisms. Article 12 foresees that
an Annex 1 country (developed countries and economies in transition) can acquire
carbon credits generated through projects developed in non-Annex 1 countries
(developing countries) to abate part of their greenhouse gas emissions reductions
commitments ratified in the Kyoto Protocol. A key tenet to the CDM is that projects
must contribute to the sustainable development of host countries according to
national sustainable development criteria. In Brazil and Bolivia, as in most
developing nations, these criteria are still being defined. However, discussions
on defining these criteria are already taking place within government institutions,
with some participation by academic groups and non-governmental organisations.
Four case studies
We set up a research project aimed at exploring the extent to which carbon sequestration
projects may actually contribute to national sustainable development as suggested
by global policy and with a view to suggesting avenues for project design and
implementation to pro-actively enhance local benefits. More specifically, the
study aims to assess the socio-economic and environmental impacts of three of
the principal pilot carbon sequestration projects underway in Brazil (Plantar,
Peugeot and Bananal) and one (Noel Kempff) in Bolivia. Two of the four projects
evaluated are predominantly commercial, yet have different commercial objectives
in the context of their respective sectors. The Plantar project aims to make
the pig iron sector viable through international carbon credits, whereas the
Peugeot project aims primarily to seek a way to counteract the negative environmental
image of the high CO2 emitting automotive manufacturing industry. The Bananal
project has more of an experimental character in its 'social carbon' profile,
seeking to anchor local socio-environmental development with carbon generation.
The Noel Kempff project in Bolivia stands out in its approach to carbon retention
in the tropical forest by buying back logging concessions and by promoting alternative
activities to forest encroachment by local communities. This project is one
of the oldest, largest and well-known existing forest carbon projects.
Metamorphosis
A common feature shared by all pilot carbon projects in Brazil and by the Noel
Kempff project in Bolivia, is the fact that although all began with defined
objectives, they have metamorphosed both in terms of their specific objectives
and operational features. In other words, they go through a process of adaptation
as the climate regime regulations evolve internationally and as they learn by
doing things locally. As early starters, they often run the risk of being left
out of the categories defined as valid by the negotiators to the Conference
of Parties for carbon credits and some are pure learning experiences.
Lessons learnt
It became clear from the study that stakeholder participation should be enhanced
when designing, implementing and evaluating outcomes of projects. In the four
projects reviewed, participation by local community members was found to be
limited. It is necessary to seek stakeholders' opinions objectively and to ensure
that the project concept be transparent to all since its inception. Social assessment
should be pursued through participatory processes which may significantly affect
the potential that local social development is generated by CDM projects.
From the point of view of social inclusion through support towards local development by projects, a key issue is the degree of participation by surrounding residents in the 'core business' of the commercial projects, i.e. the generation of carbon credits. Even if such participation is marginal to project objectives, it may come to have a more important effect on local development than that resulting from indirect economic spin-offs of project actions. For the communities, taking part more effectively as a project partner can produce many socio-economic benefits, not least of which is income generation and/or access to credit from the direct sale of environmental services as well as the stimulation of local capacity to undertake new projects.
Forest carbon projects, like some agricultural commodities, depend on a reasonable minimum area to guarantee profitability. Due to the considerable transaction costs, particularly those incurred in negotiating contracts, carbon monitoring, carbon credit commercialisation and technical assistance for the implantation of technical operations, large areas are typically necessary to amortise these costs. From a social perspective, this requirement would contribute to a new source of rural land concentration. In this sense, the carbon market would repeat the same process that occurred with other agricultural commodities in Brazil, such as coffee, sugarcane and eucalyptus. One way to avoid this reconcentration process is to involve local community members from the outset as partners in the undertaking, through outgrower activities, similar to contract plantations used in many forest enterprises the world over.
Further information:
Prof. Dr Peter H. May - project coordinator: pmay@pronatura.org.br
Emily Boyd: e.boyd@uea.ac.uk
Fernando Veiga: f.veiga@zaz.com.br
Manyu Chang: manyu@avalon.sul.com.br