Assessment of land use and land use change and forestry (LULUCF) as CDM projects in Brazil

E C O L O G I C A L E C O N O M I C S 6 0 ( 2 0 0 6 ) 2 6 0 ndash 2 7 0

ava i l ab l e a t wwwsc i enced i rec t com

wwwe l sev i e r com l oca te eco l econ

ANALYSIS

Assessment of land use and land use change and forestry(LULUCF) as CDM projects in Brazil

Marcos Alexandre Teixeira Marcus Luke Murray 1 MG Carvalho 1

Instituto Superior Teacutecnico-IST-AV Rovisco Pais1049-001 Lisbon Portugal

A R T I C L E I N F O

Corresponding author Fax +351 21 847 5545E-mail addr ess mteixeira navieristutlptURLs httpna vieristutlptsusten ergy

httpna vieristutlptsusten ergy (MG Carv1 Fax +351 21 847 5545

0921-8009$ - see front matter copy 2006 Elsevdoi101016 jecolecon2005 12003

A B S T R A C T

Article historyReceived 11 July 2005Received in revised form16 December 2005Accepted 19 December 2005Available online 7 February 2006

Brazil is an active player in the CDM business even playing host to the first CDM project everregistered Although the majority of the CDM actions which have been developed to date inBrazil are in the energy sector an analysis of Brazils emissions profile demonstrates thatthe energy sector does not have a significant share of the countrys emissions Rather that25 and 56 of the emissions stem fromAgriculture and Land Use activities respectively Inthe light of this profile this paper re-evaluates Brazils national Green House Gas (GHG)matrix and attempts to highlight the potential of the Land Use and Land Use Change andForestry (LULUCF) CDM projects An analysis of potential actions for improved penetrationof LULUCF projects is presented alongside key recommendations for future actions Thispaper outlines how and why LULUCF projects can become the cornerstone of sustainabledevelopment policy in the North and North East region of Brazil two of the main lessdeveloped regions in the country totalling 62 of the countrys land mass A focus is madeon three AR projects recently development in Brazil Through these case studies anattempt is made to outline potential guidelines for future actions This paper demonstratesthat AR projects have a significant potential impact on local and rural development in Braziltoday They have the potential to promote the sustainable use of forestry and soil resourcesFrom the analysis it is clear that satisfying local community needs and commitments is anecessary prerequisite to achieving a situation where the risks associated with the issuingof the CERs (Certified Emission Reductions) could be better managed and also in line withenhanced support from the national authorities (as part of local development plans) Thepaper concludes that Brazil has significant potential to develop LULUCF CDM projects andthat these projects can promote sustainable development through direct impact on thesustainable livelihoods of local communities over the long-term It is recommended in linewith Brazils current emission profile that to realise this potential it is necessary to design anew relationship model between the key players involved in the CDM process governmentagents local stakeholders national academia and private parties Further it is necessary forthe Federal Government to foster the LULUCF projects Supporting actions include definingclear policies that minimise risk andor reduce perceived risk and the promotion of multi-stakeholder involvement in the CDM project development process

copy 2006 Elsevier BV All rights reserved

KeywordsCDMLULUCFBrazilEmissions mitigation potential

(MA Teixeira)(MA Teixeira) httpnavierist utlptsustenergy (ML Murray)alho)

ier BV All rights reserved

261E C O L O G I C A L E C O N O M I C S 6 0 ( 2 0 0 6 ) 2 6 0 ndash 2 7 0

1 Introduction

When Climate Change was first discussed at theWorld Forum(WCED mdash World Commission on Environment and Develop-ment 1987) it was clear to all that although extremelyimportant the issue was poorly understood from a globalperspective and scale Today there is general consensusamong the scientific community that the phenomenon ofanthropogenic induced climate change is real and significantGlobal efforts now focus onmitigating and adapting to climatechange However there is no consensus as to the optimumstrategy for addressing climate change One of the mainanswers became in the form of the United Nations FrameworkConvention on Climate Change (UNFCCC) which was createdto support the reduction of global Green House Gas (GHG)emissions

This paper focuses on one of the three flexiblemechanismsestablished by the UNFCC to assist Annex I countries toachieve their GHG emission reduction obligations namely theClean Development Mechanism (CDM) Expressed simply theCDM enables Annex I countries to invest in climate mitigationprojects in non- Annex I countries and earn emissionreduction credits in the Annex I from where the project wasfunded and originated

The conceptual framework behind the CDM focuses onoptimising GHG emission reduction efforts through the mostcost-effective solutions where possible through the use ofldquobetterrdquo technologies and even through the creation of awholenew market in terms of CERs (Certified Emission Reductions)and or new technologies

The rules and regulations for CDM were established atannual meetings hosted by the United Nations called theConference of the Parties (COP) This process is on-going withmany issues remaining under discussion and debate Onekey issue that continues to be discussed by the signatories atthe COP meetings is the effectiveness of the CDM as a tool toaddress the sustainable development of small or communi-ties at local level As one first wave of initiatives the SmallScale CDM projects lacked the critical mass to support theburden of their fixed costs (even with the simplifiedmethodologies)

The second wave of most promising CDM projectsconsisted of those that focused on the transfer of appro-priated technology to developing countries However theseprojects have been experiencing difficulties due to theburden of proving their ldquoadditionalityrdquo as the UNFCCCitself had defined Non-Annex 1 countries typically lack thestate of the art technologies and necessary associatedinfrastructure to achieve major industrial growth over thelong-term that promotes sustainable development (Rusnok2004)

This paper focuses on Brazil as a non-Annex 1 countryattempting to highlight the problems and potential solu-tions that CDM attempts to deal with and can bring intothe climate change debate The analysis starts with anassessment of the current national emission profile andgoes further to explore the potential opportunities forCDM projects specifically concentrating on LULUCFpotentials

2 Results

21 Brazil GHG emissions profile

Since the beginning Brazil remains at the forefront of thedevelopment of the CDM framework in the UNFCCC where ithas been since the start of the process Brazil has adopted asignificant leading role among the developing countriespromoting the principle of common but differentiated respon-sibilities in the challenge of addressing climate change

In 1992 at the United Nations Conference on SustainableDevelopment hosted in Rio de Janeiro the government ofBrazil was the first national body to sign the Convention onClimate Change Further commitments to the Kyoto Protocolhave since been reinforced by the approval of the first CDMprojects in Brazil These are as a direct result of a determinedand conscientious effort from government private compa-nies academia and civil society The first national inventorywas published in Brazils ldquoInitial National Communicationrdquo tothe UNFCCC (Nov 2004) by the Science and TechnologyMinister (MCT mdash Minister of Science and TechnologyGeneralCoordination on Global Climate Change 2004) as part of theCDM commitments process

The national inventory summarizes the Brazilian govern-ments efforts towards promoting the implementation of CDMprojects and is a key reference on the topic The nationalinventory also acts as an official inventory of Brazils GHGemissions One important issue is that this inventory clearlyoutlines that the highest levels of GHG emissions are notassociated with the energy sector (unlike global normsespecially those experienced in Europe) rather with areasthat have not previously been addressed by the UNFCCCinitiatives the forestry and the agricultural sectors

The Brazil national inventory lists up to 15 million tonnesof CO2 equivalent (based on 1994 data compared to a CO2

equivalent non-official calculation) and the main sector thatcontributes to these emissions is not the energy sector as isseen in developed or Annex I countries rather the Land UseChange and Forestry sector mdash this information can be viewedgraphically in Fig 1

Upon more detailed review the breakdown of Brazilsemissions reveals an interesting profile 81 are not fromenergy related sectors rather due to agriculture (25) andLand Use Change and Forestry activities (56) Clearly this is avery different emission profile from that previously consid-ered in the CDM projects market standard national profile

LandUse Change and Forestry ismade up of four categories(MCT mdash Minister of Science and TechnologyGeneral Coordi-nation on Global Climate Change 2004)

a) change in forests and other woody biomass stocksb) forest conversion to other usesc) abandoned land management andd) CO2 emissions and CO2 removals from underground soil

Also highlighting the difference between Brazil and theother countries it has a strong renewables sector in thenations energy mix (see Fig 2) Unlike the majority ofcountries that are heavily dependent on fossil fuels in Brazil

Emission by Sector in Brazil

Industry1

Solvent0

Agriculture25

Land Use Change and

Forestry56

Waste1

Energy17

Fig 1 ndashDistribution of Brazil GHG emissions by sector(personal compilation)

262 E C O L O G I C A L E C O N O M I C S 6 0 ( 2 0 0 6 ) 2 6 0 ndash 2 7 0

42 of energy supply comes from hydro and biomass (mainlysugar cane and charcoal) Compare this to a world average ofclose to 14 of total energy supply from renewables Underfurther scrutiny it is important to point out that from 42 oftotal energy supply Brazil produces 75 of total electricityproduction With such a small percentage of Brazils GHGemissions coming from the energy sector there is very littlescope for developing effective CDM projects in the energysector (MME 2003)

With this awareness and after assessing the currentemissions profile the author decided to search for aninnovative approach to better understand the needs andopportunities for CDM Project in Brazil It is thought this willbe more in line with the LULUCF sector projects than withenergy related projects

Domestic Energy Supply in 2002 Brazil

Biomass27

Oil and Refined Products

42

Natural Gas8

Coal7

Uranium2

Hydraulic and Electricity

14

Fig 2 ndashEnergy matrix for Brazil (MME 2003)

3 CDM projects and sustainable developmentgoals

One important aspect is that CDM projects are tools designedto achieve a more sustainable form of development They arealso drivers for achieving better social and economical indexesand healthier relations between local communities and theenvironment Achieving these sustainable development goalswith business as usual is a difficult challenge The complexrules of building up registering and certifying a CDM projectmake this even more difficult Within the Brazilian regionaldisparities promoting sustainable development could also beunderstood at decreasing the gap in development indicesbetween the South and Southeast regions and the otherregions of the country

Moving the focus for development away from the southand central west regions is partially inline with Brazilsemissions profile Firstly in adopting this change in geo-graphical focus for CDM project implementation the mainfocus of investments shifts from the South and Southeastregions (ie Curitiba Rio Grande do Sul Satildeo Paulo and Rio deJaneiro states) to other areas Such an action will bring with itmore equitable development benefits for the populations (ie

North and Northeast regions) Secondly by moving the targetimplementation CDM areas to areas where the highest rates ofdeforestation and land use change are occurring a concretechance to achieve a direct impact on the countrys emissionprofile is created

Regarding the effects of the climate change phenomenaitself as noted by academic and climate science specialiststhere are some reflexes of the global warming process that arealready taking place for what is clear that some environmentsare more sensitive than others and per se would act as athermometer of the changes already in motion This is shownby the shrinking of the Sahara desert the melting of theGreenland ice sheet the changes on the North Atlanticcurrent the effects on the Monsoon and also direct impactson the Sustainability of the Amazon forest as the climatechange could lead to decrease in the rainfall (Sample 2004)From where the CDM projects should also be in line with theadaptation actions to the reflex of the climate changephenomena besides targeting the GHG emissions

According to the evidence presented above there are clearlya number of parameters that advocate that it would be betterto move the focus of CDM projects in Brazil to the North andNortheast regions of the country However the currentsituation in Brazil is that the majority of CDM projects areconcentrated in South and Southeast regions The CDMprojects in Brazil also focus on energy related projects thathave very limited potential to address the issues of sustain-able development for local communities Table 1 shows thecurrent CDM projects in Brazil grouped by project type

Upon analysis of Table 1 one clear conclusion is that theopportunity to make better use of the Kyoto Flexible Mecha-nism as an effective tool to enhance the sustainability of theless developed andmore vulnerable areas in Brazil is not beingmaximised The current CDM projects are also not being usedeffectively to alter the countrys emissions profile This is asimilar state of affairs as in other parts of theworld where keyaspects on the political repercussions of themarket options inthe CDM projects has lead several organizations (such asWWF) (Salter 2004) to call for a re-evaluation of attitudestowards CDM

It is important to start to look more seriously at the otherpossible CDM potential projects in the other suggested twoBrazilian regions that may provide an alternative to the

Table 1 ndash Distribution of CDM projects in Brazil per type ofproject

Type of CDM Project Number of projects of the total

Biomass energy 38 42Hydro 15 17Agriculturea 16 18EE industry 3 3Fossil fuel switch 4 4Landfill gas 12 13Fugitive emissions 1 1N20 1 1Total 90 100

Source UNEP Risoslash Centre (2005)a All related to AWMS (Advanced Waste Management System) inits majority manure treatment on confined cattle raising facilitiesin the states of South Central and Southeast regions


current situation It is suggested that to start a valorisation ofthe CDM initiatives in these two regions that besidesgenerating CER can also address sustainable developmentand climate change mitigation One type of project in Brazilcapable of achieving this are the LULUCF (Land use and LandUse Change and Forestation) project types

4 Main challenges for LULUCF CDM project

There are many challenges imposed on CDM projects In thecase of LULUCF projects one of the main challenges is tosecure a sustainable development model that can lead to longlasting effects on the way-of-life for the population at locallevel Is it possible to design a new relationship with theenvironment that will lead to a less carbon intensive level ofactivities and possible economic and social growth at thesame time All this at the same time is incorporating thenecessary adaptation to the imminent changes imposed byclimate change today

The Brazilian government is aware of this challenge andhas started a series of strategic studies focusing the climatechange issue (NAE mdash Nuacutecleo de Assuntos Estrateacutegicos daPresidecircncia da Repuacuteblica 2005) These studiesmake a series ofrecommendations The following have been highlighted

ndash Need to elaborate on the ldquoNational Map on the Vulnerabilityand Threats related to the Climate Changerdquo

ndash Need to acknowledge that the country is poorly prepared inthe field of climate change and the degree of knowledge onthe subject is insufficient especially in the agriculturalsector In general the national research and developmentsector is aware of the relevance of climate change issues tothe sustainable development of the country

ndash The National government wants the international commu-nity to recognise that the country is not prepared to assumelimits to the emissions as they would have a direct impacton the relation between capital and internal product andthe availability of capital is a critical issue in the internalmarket with unbearable consequences in the job andpersonal incomes

ndash The theoretical estimated potential for CDM projects in theForestry and in Brazil is enormous More then half of it

(57) is concentrated on Forestry projects But 94 of thisforestry potential is yet in a theoretical study stage noteven considered in the short or medium terms actionplans

ndash Many of the current CDM initiatives are focused in theenergy sector (such as the POINFA and PROCEL pro-grammes) There is also some confusion in defining suitableparameters for the calculation of the baseline

Keeping in mind Brazils emission profile the nationalstrategy to reduce GHG emissions and the need to achievesustainable development targets must urgently address theissue of land use and land use change

One of the main environmental impacts of a forest carbonproject is the decrease in the GHG emissions this ismeasured in terms of the amount of carbon sequesteredUnder CDM the level of carbon sequestered is the investorsprime motivation as the project justification must include adetailed presentation of net carbon additionality Yet it isfundamental that designated national authorities (DNAs)when approving CDM projects must screen the projects inorder to ensure that they have the dual capacity to offer bothcarbon sequestration and sustainable development benefitsFurther these benefits exist in a complementary andconsistent fashion enhancing the credibility of this newmarket

Each CDM project is reviewed by the relevant DNA toevaluate environmental social and economic impacts andpotential contribution towards the local sustainable develop-ment Each project will also be assessed in relation toachieving the national long term emissions reductionsscenario Both of these tasks should fall under the responsi-bility of the DNA In Brazil the selection process used by theDNA currently does not allow for different treatment forenergy sector based CDM projects than for LULUCF projectseven though the countrys emissions profile clearly indicatesthat a greater impact can be made with a preference forforestry and agricultural focused projects

Forestry and land use projects can be classified into threemain categories (May et al 2003)

ndash Commercial projects mdash these prioritise the generation ofCERs for commercial reasons They arendash led by national andor international enterprisesndash may be implemented directly by trans-national corpora-

tions with intensive emissionsndash or by a national industrial sector such as the lumber

industry or the biomass energy sector to obtain CERs andor enhance sector competitiveness

ndash Conservation projects mdash these prioritise secondaryenvironmental benefits such as local forest and biodi-versity conservation It is important to note that thisproject type was undermined by Marrakech COP CDMprojects that would avoid deforestation as a basis forCERs were removed from the process for the duration ofthe first commitment period (2008ndash2012) These projectsarendash normally mediated and implemented by NGOs often

also they are associated with international investorcorporations


ndash they seek CERs and the related impact in the companiespublic image

ndash Development projects mdash these prioritise social objectivesalongside environmental objectives Many project devel-opers have established partnerships with trans-nationalorganisations seeking CERs offering the investors an imageof social responsibility as project financiers These projectsndash give priority to the needs of local communities whileconserving the local environment

Also this same study proposed a series of criteria andindicators for their assessment in reviewing CDM projects(May et al 2003) Going beyond classification scientists haveprovided a series of criteria and indicators as a guide fordiscussion among interested groups and government officialsin the hope of providing a basis for the incorporation of localsustainable development concerns more explicitly in projectreview procedures (see Table 2) (May et al 2003)

Also during the project design phase there are manyadditional constraints imposed to create a suitable LULUCFCDM project these include (CDM-Executive Board 2005)

1 To accept and encompass the definition of forest mdash as aminimum area of land of 005ndash10 hectares with tree crown

Table 2 ndash Evaluation criteria for the analysis of a LULUCFCDM Project (May et al 2003)

Component Criteria

Social Project budget shows evidence of financialcommitment to the social componentSmallholders in communities surroundingproject participate directly in the projectsldquocore businessrdquo (carbon sequestration)Land tenure concentration in project area isnot exacerbated by project activitiesNet employment is generated by the projectEmployment quality for communityparticipants is improved by the projectNet income is generated by the projectamong local participantsKnowledge and learning are generated anddisseminated based on project activitiesCommunity members have participateddirectly in project designForest management has been subject toprior certification

Environmental A net increase in terrestrial carbon storage isanticipated due to the projectLocal biodiversity will be maintained andorenhanced by the projectBiodiversity effects of the project will bemonitoredProject impacts on water resources will bemonitoredSoil monitoringEnvironmental education

Economic The project will have a favourable effect onthe national balance of paymentsThe project will have a favourable incomemultiplier effect in the regional market andlocal communitiesThe project is cost-effective and competitivewith other climate abatement initiatives

cover of more than 10ndash30 with trees with the potential toreach a minimum height of 2ndash5 m

2 Assess the leakage in the project mdash as the increase inGHG emissions outside the boundary of a project activityie if the project reduced access to land food fuel andtimber resources without offering alternatives may resultin carbon leakage as people find needed supplieselsewhere

3 Access the status of the 5 Carbon pools above-groundbiomass belowground biomass litter dead wood and soilorganic carbon Not only in Baseline calculations but also inthe monitoring phase

4 Indicate if the project activity is related to aforestation orreforestation based on the past history of the area whereaforestation mdash no Kyoto forest land cover for last fifty (50)years and reforestation activitiesmdash no Kyoto forest since orbefore 31st December 1989

5 Define the Baseline methodology based on identificationof alternative land use types similar to emission reduc-tions projects as existing or historical land us mosteconomical land use alternative or most likely land usetype

6 Decide the project crediting period for the AR projectactivity for the purpose of issuance of temporary CERs(tCERs) mdash baseline of a maximum of 20 years which thencan be revised and renewed up to two times Thus up tothree consecutive crediting periods summing up to amaximum of 60 years or long-term CERs (lCERs) mdash non-renewable baseline of a maximum of 30 years on the onehand

The aspects to be covered in analysing the potential for thedevelopment of LULUCF CDM projects are extensive It is clearthat these projects need to include the participation of therelevant local and governmental stakeholders An analysis ofthree of the case studies presented in this paper demonstratesthat these stakeholders are not properly involved in theproject development process There is evidence (Yu 2004) thatmany projects do contribute towards sustainable develop-ment however often the main weakness of CDM projectscomes from the fact thatmany are attached to other prioritiesand that the inclusion of additional evaluation criteria will notmake them more sustainable If the projects are evaluatedwith such criteria then lessons can be learned promoting thedesirable development for the countryregion This suggeststhat development projects (those that prioritise both socialand environmental objectives) should be encouraged Theyshould be developed with the active participation of and in apartnership with local communities and governmentalagents

This approach involving a merging of the localregional and national interests into the sustainable devel-opment process and the definition of suitable LULUCFprojects via effective multi-stakeholder participation couldbe quickly adopted into the CDM project developmentprocess Clearly all partners should approve the process byconsensus such that the potential issues and problemscan be identified and respected by the stakeholders Thisprocess would give Brazil a powerful tool for capturingsynergies in the development for CDM projects Such a


potential methodology is described by Swart et al (2003) itis based on a twin point analysis

ndash First mdash recognise that GHG emissions and anthropogenicinduced global warming are determined by general devel-opment pathways and by specific climate mitigationpolicies This leads us to start thinking of future options ina more holistic way rather than just focusing on individualenergy supply technology demand or adaptation measuresThe critical aspect is to place climate policy in the broadercontext of technological and socio-economic policy devel-opment rather than just being one among the many itemsof those policies

ndash Second mdash recognition of the linkages and potential syner-gies and trade-offs in each concrete policy option As theoptions were inventoried it became clear that they arefocused in a certain issue within a specific sector Howeverfor a full economic appraisal it is necessary to take intoaccount the indirect impacts on climate (including mitiga-tion and adaptation) development targets and social goalsPolicy options must not be guided by sector-specific resultsbut instead encompass the full spectrum of potentialimpacts

5 On going activities in Brazil

Here by three of the initiatives that have been carried out inthe filed of forestry projects are resumed addressing some ofits particularities associated with the objectives assumed for aCDM LULUCF andor AR project

51 The Plantar Project

The Plantar Project is an example of a typical commercialproject The projects justification for CDM eligibility is basedon the companys continued utilisation of charcoal as areducer for pig iron manufacture rather than to convert touse of mineral coke a tendency common among othersegments of Brazils charcoal-based iron industry Plantar isa reforestation company incorporated in the late 1960s Itsrevenues in 2001 were about R$ 1365 M (approx US$ 75 M)from forest services metallurgy and sale of charcoal andseedlings The project is situated in the central Cerrado regionof the southeast Brazilian state of Minas Gerais this has longbeen a source of charcoal to the metallurgical industries ofMinas Gerais

Project documents predict that Plantar could generate1288 million metric tonnes (M t) of CO2 emissions reductionequivalents over a 28-year time horizon seven yearscorrespond to reforestation and growth and 21 yearscorrespond to charcoal utilisation as an iron ore reducer bythe industry These carbon credits would be generatedthrough three project components a) 79 M t CO2 fromindustrial activity (net emissions by substitution of mineralcoke by charcoal) b) 044 M t CO2 from improvement ofcharcoal kilns (methane emissions reductions) c) 454 M tCO2 from reforesting 23100 hectares with eucalyptus andassisting in regeneration of 478 hectares of nativevegetation

Part of the credits to be generated was negotiated with thePrototype Carbon Fund mdash PCF whose purchase commitmentguaranteed a loan to Plantar by the Dutch Rabobank to financepart of the forest plantation The agreement between Plantarand PCF includes sale of 15 M t of CO2 credits correspondingto about 12 of the total CERs expected by the project Thenegotiated price was US$ 350 per ton of CO2 (about US$ 1285tC) determined by PCF estimates resulting in potential creditstotalling US$ 525 M

Plantar project socio-environmental benefits and localdevelopment potential

ndash The primary social benefit of the project would be themaintenance of 1270 direct jobs which could be lost shouldthe company close down This scenario that the companypredictedwould shortly occur if carbon financewere denieddue to the absence of alternative sources of capital to permitinvestment in forest assets

ndash The project has serious flaws with regards to localsustainable development particularly in relation to theequity criterion Given the role of forestry in the regionand Plantars substantial technical know-how in hightechnology clone seedling production there appears toexist considerable potential to secure local developmentbenefits through outgrowing under the forest farmerscheme This could include the possibility for extendingcarbon credits to include such farmers No such foresttechnology diffusion or social inclusion efforts wereproposed by the company which restricted its relationswith the local community to a modest environmentaleducation programme and certified ldquochild friendlyrdquo statusin respect of child labour laws

ndash The necessity for the purchase of large land areas for forestcarbon accumulation could encourage a new process oftenure concentration bringing harmful social consequencesif schemes such as the out grower approach are not includedin the projects

ndash Plantars pre-existent plantation certification assured inves-tors that the company is meeting all applicable environ-mental and labour laws as well as permitting it to launch aldquogreen pig ironrdquo label associated with its chain-of-custodycertification from plantation to industry Prior certificationaccording to these criteria however does not necessarilyassure social sustainability

ndash The CDM can guarantee and reinforce the economicsustainability of biomass based energy alternatives Thisproject which juxtaposes the utilisation of forest biomassagainst fossil fuel exploitation is a good example of thispotential role for CDM

52 The PeugeotONFIPN Project

The Peugeot carbon sink Project has a primarily commercialobjective It seeks to create an environment friendly image asa market strategy to counteract the negative environmentalperception of the emissions-intensive automotive manufac-turing industry The fact that the investment is self-fulfillingand that the project does not intend to claim carbon creditsallows the developers a substantial margin of freedom todecide on project activities

2 wwwecologicaorgbr


The project is located in northwest Mato Grosso state inthe so-called ldquoArc of Deforestationrdquo of the Amazon basinReforestation began concomitant to the inauguration ofPeugeots industrial facility in Rio de Janeiro in 2000 Theproject is implemented by ONFmdash Office National des Forecircts agovernment institution that tends to the public forests inFrance in partnership with Instituto Proacute-Natura (IPN) a socio-environmental NGO which has had a long-term presence inthe project region

The publicity impact desired by the investor led to theestablishment of an overly ambitious target ndash establishment of10 million native trees in three years on 5000 ha ndash in anenvironment culturally and ecologically unfamiliar to theexecutor As a result of this overly ambitious target the projectfaced a number of hurdles during its initial phase whichforced it to change course The principal barriers to successfulimplementation were due to a low survival rate of seedlingsplanted in vigorous brachiaria grass and the repercussions ofattempts made by the executors to surmount this hurdle byadopting aerial spraying with the herbicide Roundup Thistogether with accusations of biopiracy against the executordeeply affecting the project forced its executors to changetheir approach and to adopt a more accommodating positionregarding the relations with Brazilian public institutions

The process of internal re-evaluation resulted in a numberof changes (i) substituting the use of herbicides with manualweeding (ii) reduction of reforestation targets from 5000 ha to2000 ha (iii) restoration of permanent protection areas in linewith the states rural land use licensing system (iv) creation ofa Scientific Advisory Committee with the participation ofregional universities and government institutions (v) substi-tution of foreign equipment and expertise with local inputs(vi) enhancement of local integration through an environ-mental education program and seedling distribution to localfarmers

Peugeot project socio-environmental benefits and localdevelopment potential can be summarised as

ndash In terms of carbon benefit with the establishment of morerealistic targets the initial estimation of 2 M t C to besequestered over 40 years has now been reduced to 500000t of Carbon over 100 years However this reduced targethas not undermined the positive image associated with itscar manufacturer The area reforested is quite considerablein an area of agriculture frontier and rapid deforestationwhere experience with native forest recuperation is veryweak In this sense the project has attracted considerableattention and reaction in attitudes of local landownersThe potential for technology adoption would only beeffective when combined with other social integrationefforts such as extension assistance environmental edu-cation and financial support to sustainable land usepractice

ndash In terms of social benefits the project has created jobopportunities in tree planting and maintenance incomegeneration through seed purchase and service tax levied bythe local government However these benefits have beenmost significant only during the projects implementationphase In the maintenance phase beginning in 2003employment and local tax revenues have fallen off quickly

The large-scale nursery established to expand carbon forestplantings in the region was de-activated

ndash A forestry extension activity of seedling distribution ofmultifunctional trees to smallholders is being undertaken inpartnership with IPN in line with the institutions role indisseminating agro forestry practices in the region Alongwith modest donations for hospital facilities and theenvironmental education programme aimed at local school-children this component has promoted some measure ofintegration of the project with local communities andsurrounding land reform beneficiaries

ndash Involvement of local farmers in carbon schemes would be amore effective means than large-scale demonstrationplantations to encourage sustainable land use practicesProject findings indicate that regional programmes inprogress of implementation such as Proambiente canleverage such involvement Learning from Peugeot hasbeen timely and valuable

53 The Bananal Project

The Bananal Project is essentially experimental Its subliminalaim is to learn how to format competitive carbon projects andopen up future opportunities As an experimental project itseeks to make no claim for tradable carbon credits whichgives a margin of freedom to the developer to adapt itsactivities The project was originally financed by AES BarryFoundation a philanthropy linked to a British gas utilitycompany and implemented by Instituto Ecoloacutegica2 a regionalsocio-environmental NGO based in Palmas Tocantins state(IE mdash Instituto Ecoloacutegica 1997)

The project is located in an ecological transition zonecovering three important Brazilian biomes the Amazon forestsavannah bush land and the marshland The location of theproject can be seen in Fig 3 The project has introduced the socalled ldquosocial carbonrdquo meaning carbon generated with apriority focus on social aspects for which reason it isconsidered a carbon project of developmental type Theforestry component is divided into three activities protectionof 200000 ha of standingmature forest regeneration of 60000ha of degraded Cerrado woods land and the planting of 3000ha of agro forestry practices with an estimated gain of 25M t C

The project as originally conceivedwould strengthen forestconservation within parks of the Ilha do Bananal as its centralcomponent to be managed in partnership with the respectiveFederal and State Government agencies responsible Howeverthese partnerships did not materialize for a number ofreasons during the course of the project This restricted theproject outputs to the social and research components

Bananal project socio-environmental benefits and localdevelopment potential

ndash The research component focuses basically on the develop-ment of carbon monitoring methodologies and studies ofregional biodiversity Monitoring of the deforestation rate inthe project intervention areas is foreseen throughout theprojects horizon Due to the substantially reduced forestactivities the amount of carbon sequestered by project

Fig 3 ndashGeneral position of Babanal Island in Brazilianterritory (httpwwwgeogucsbedu~riverssabananal-webwetlandshtml)


related activities must be cut sharply However the conceptof using carbon funds to support official agencies to protectand restore conservation units could be fruitfully carriedforward by other projects The key issue for baselineassessment is to consider deforestation as a reference foractions that may reduce its rate over a broader area insubsequent years

ndash The projects social component focused on environmentaleducation to school students and community memberssupport to income generation activities distribution ofseedlings and establishment of agroforestry systems Theprimary project stakeholders for these elements are landreform beneficiaries community members and indigenousgroups The project expects that raising environmentalawareness may also contribute to carbon benefits both byincreasing tree planting and by reducing deforestation

ndash The project pioneered the introduction in Brazil of theSustainable Livelihood Approach to assess intervention onlocal communities with their participation The project itselfdid not generate significant employment Efforts are under-way to support sustainable income generation activities but

Mean rate gross def

0

5000

10000

15000

20000

25000

30000

35000

778

888

89

899

090

91

919

292

93

939

4

Def

lore

stat

ion

Rat

e[k

m2

year

]

Fig 4 ndashMean rates of gross deforestation in Amazon Area

the net results of such efforts for income and employmentwill require long-term support and assessment Theirimpact on regional carbon stocks is indirect and difficult tomeasure

ndash Lessons learned suggest that partnerships with govern-ment agencies need to be formalized and budgets clearlydefined to avoid political discontinuity endangeringresults Although the Kyoto Protocol does not allow creditunder the CDM for avoided deforestation in agriculturalfrontiers such as the Amazon region complementaryincentives such as forest valuation by the carbon marketare urgently needed to guide proper land use Governmentenvironmental agencies may thereby strengthen theircapacity to protect unique biomes and rural developmentagencies may thus induce landowners to restore manda-tory permanent reserves or establish sustainable produc-tion systems

6 Profile of the north and northeast regionsand its relations with the Kyoto issues

In order to better explain the relationship between the Brazilemissions profile and the issues analysed here some of thekey characteristics related to the north and northeast regionsof the country are detailed in the following section to furthersupport the ideas presented in this paper

61 North region

The North region represents almost 45 of the countrysterritory (3831694 km2) It encompasses the region of theAmazon Forest and is constituted by the following statesAcre Amapaacute Amazonas Paraacute Rondonia Roraima andTocantins The consequences of climate change for this regionare represented by an increase in sea level leading to a biggerpenetration of the tides into the rivers Flooding of theadjacent areas with possible sedimentation of the river bedthe impact also will rise from the increased erosion on the seacliffs and destruction of mangroves (MCT mdash Minister ofScience and TechnologyGeneral Coordination on GlobalClimate Change 2004) Another important aspect is thatclimate change will bring high levels of stress on the

orestation in Amazon Area

949

595

96

969

797

98

989

999

00

000

101

02

020

3

Year

(INPE mdash Instituto de Pesquisas Aeroespaciais 2004)

Fig 5 ndashMain areas in Brazil that are likely to undergothe desertification process (MCT mdash Minister of Science andTechnologyGeneral Coordination on Global Climate Change2004)


environment and a significant number of species are likely todisappear (MMA 2005)

Estimation on the level of deforestation in the Amazonregion was done based on Satellite images data analysis andthe results in terms of mean gross rate of deforestation in theregion can be seen in the Fig 4 These data can now beobtained in a real time basis due the development of asurveillance system based in Satellite image processing thePRODES and DETER projects (INPE mdash Instituto de PesquisasAeroespaciais 2004)

62 Northeast region

It represents only 17 of the territory (1447528 km2) with thefollowing states Alagoas Bahia Cearaacute Maranhatildeo ParaiacutebaPernanbuco Piauiacute Rio grande do Norte and Sergipe Theimpacts of climate change will be more serious in severalcoastal cities such as Recife Aracaju and Maceioacute where theurbanization has expanded to low areas of coastal plains alsowhere drainage problems associated with floods in Maranhatildeostate and Salvador city are to be expected Some impact on therivers flows and possible increase on the sedimentationprocess in the river bed (that leads to the sea) is likely andalso a possible decrease in the level of rain fall would enhancethe desertification pressure on the continent

According to MCT mdash Minister of Science and TechnologyGeneral Coordination on Global Climate Change (2004) asignificant area of the region is threatened with the deserti-fication process as shown in Fig 5

7 Discussions

Getting back to the country emissions profile and the need todevelop actions that are in line with the need to improve the

relations of mankind and the environment in the most fragileand endangered environments in Brazil it is necessary to seekfor an action plant capable to imprint a new form ofrelationship in terms of sustainable use of the naturalresources and a decrease in the pressure of the depletion ofthe natural resources It is clear that promoting the CDMLULUCF AR projects is one of the possible strategic actions topromote forest and preservation actions

When encompassing the requirements of a correct designof a AR PDD (Project Design Document) many of the criteriaanalysed force the proponents not only to understand thedesign of LULUCF CDM projects as drivers of a new model forthe land use but also as part of a deep understanding of thepast history of the local area and people that lives there In thiscase they would need to certify the accomplishment of set offorestry development project criteria (defined in a mutualstakeholders consultation process) Understanding the habitsof the local population would avoid many undesirable out-comes and barriers for the CDM Project as the leakage effectand yet have the necessary statistical and numerical data tobuild a consistent database on all carbon pools (methodologyon how the carbon storage is accounted in AR projects) pasthistory of the area (with official documentation and ormakinguse of remote sensing tools) in a historical perspectivedocumented in a sufficient lime line to support the aforesta-tion and or forestation criteria as defined by the UNFCCC andthe needs for the registration and certification process

In defining the project activity it is necessary to under-stand the current and potential future trends in the arearegions economical activities so that they can be properlyframed in the calculations for the baseline and the method-ologies for crediting and certification activities

All these must be done in order to take part in an LULUCFAR project activity and per se incur the level of additionalcosts required to develop submit and register the projectunder the CDM

Perhaps this set of actions might be considered asunproductive in terms of promoting the necessary change inthe Brazils emissions profile as it does not tackles directly theGHG emissions reductions However the fact that those localissues are encompassed in the design of the AR projects (thatis not an issue for the international community as it is rathera national process) is necessary to the Brazilian society tounderstand the need to change and the tools options andpotentials to be explored in pursuing the necessary changes toface the challenges imposed by the climate changephenomena

Are the CDM LULUCF AR projects suitable tools to addressthe necessary changes and in what why Do the case studiespresented here show that there is a common path or even acentral national policy that could be implemented If thePlantar Project could have proven its additionality Whatwould have been if the PeugeotONFIPN Project were only abit more focused on being a carbon focused project and nothaving its core in the management of a companies imageaction disassociated with the local communities

Also what would have been the outcome for the Babanalproject if right at the beginning the project could have countwith a better carbon pool statistical databaseWould all theseactivities had a different outcome


Should this additional support necessary come from theBrazilian government in the form of clear climate relatedpolicy and stronger support for research institutions Brazillikes to present itself as having a strongly regulated marketThe reality of thismarket is that due to the frequent instabilityand uncertainty in the country investors tend to wait beforeinvesting Often they wait for a better definition of the federalregulation in accordance to the investment environment (thatwould includes clear rules regarding the Kyoto Protocol) Thisbehaviour is normally adopted to avoid unexpected surprisesand unforeseen obstacles and events affecting this privateinvestment

In that sense for the future implementation of LULUCFCDM projects as cost objective tools to decrease the globalemissions as they were originally designed it is unforeseenthat purely market oriented tools would be significant todiverge the actual path of investments been needed thereinforcement of other instruments as national policiesregulatory actions and even scientific supporting studies

The need to adopt a comprehensive government led toclimate change policy in Brazil which is very strong Thismustconstitute a common framework between several governmentinstitutions involved in the Management of the CDM actions(Environmental Minister DNA Agricultural Minister Scienceand Technology etc) on their development plans and policiestowards promoting sustainable development

It is important to understand that the internationaldemand for emissions reductions and its relations withdemand for CDM projects is a market orientated toll and asa result the market will always naturally go for the lowest costand lowest risk options which aremainly represented in CDMby the energy based projects In terms of CDM potentialsLULUCF based projects Brazil is an important host and has asignificant role to play as it has significant potential forLULUCF projects estimated at approx 556 Mt CO2 per year asCERs in Brazil (NAE mdash Nuacutecleo de Assuntos Estrateacutegicos daPresidecircncia da Repuacuteblica 2005) In terms of global potentialBrazil represents the third most important host for sinkprojects (15 10 Mt CO2 per year) preceded by China (37)and Indonesia (25) (Niles et al 2001)

Further it is important to recognise that forestry projectswhile conceptually similar to sustainable management (asopposed to simple resource depletion) will tend to havereduced profitability This is due to the need to pursuecomplementary benefits that foster the adoption of a moresustainable use of resources (Pearce et al 2003)

Brazil offers one of the biggest world potential for sinkprojects (under the LULUCF modality) However undertakingthese projects requires a suitable set of conditions (socialenvironmental and governmental) than to create the optimumconditions Brazil also needs LULUCF projects to be developedin order to achieve better long lasting effect in terms of carbonemissions mitigation and also climate change adaptation

8 Conclusions

In climate change mitigation which is the achievement of themaximum number or CERs at the minimum cost energybased projects are the most potential (when looking just into

the project boundaries as they do lead to a more significantemission reductions) However under the scope of countriessustainable development goals this assumption is not correctThe LULUCF projects have greater potential to tackle local andrural development promote the sustainable use of forestryand soil resources while still decreasing the anthropogenicemission of GHG

So it is possible to say that for specific areas of the countrywhere the local needs and local governments commitmentsare made the CDM projects based on the Land Use and LandUse Change and Forestry can and should be used to work in apartnership with the government and local stakeholders tomake a positive impact on the sustainable development ofsensitive regions of the globe under the stress of the climatechange

On the other hand although positioning the country as asuitable target for CDM investments is an important issue fora non-annex 1 country that yet does not have an imposedlimitation to its emissions is also important to develop a set ofactions direct target on reducing its emissions

This would be based not only addressing correctly itsemissions profile but in line with a strategic national plan torespond to future possible imposed emissions reductions Onepossible collateral effect would also be a clear demonstrationto the international community and its commitments andthat efforts have been taken to attract investments in CDMprojects by reducing risks and removing barriers at the sametime that increase the International perception of been aninteresting target country for CDM projects

Considering themix of Brazils emissions where 56 of theemissions are due forestry and land use and 25 in theagricultural sectors there is no doubt that LULUCF CDMprojects must be pursued And that while there are somegovernment initiatives being implemented by the Ministry ofScience and Technology and the Ministry of Environmentthere is not an adequate sense of urgency

LULUCF CDM projects need to play a significant role inBrazils emissions reduction portfolio As the Federal govern-ment has indicated that these projects represent more thanhalf of the countrys CDMpotential (MCTmdashMinister of Scienceand TechnologyGeneral Coordination on Global ClimateChange 2004) and yet these projects are not currentlyreceiving a similar proportion of the attention As a resultthere is a noticeable lack of coherence on emission profile andthe climate policy This observation demonstrates the exis-tence of a dual position in the Brazilian case where in theenergy sector contrary to the rest of the world the countryhas a very Kyoto friendly situation while in other sectors thereis little knowledge on the possible impacts (quantification)nor potential remediation and mitigation actions andstrategies

There appear to be two separate issues the energy profileand the emissions profile An acknowledgment of thedifferences between these two would create a basis to avoidfuture emissions caps in future negotiations This dual realitydemonstrates that with regards to climate policy Brazilssituation is mixed As a result for emissions limits to beimposed this would be only in the areas where a minimumlevel of development is already achieved (industrial andenergy sectors for example) and not where a lot of work is


yet to be developed as in the fields of land use agriculture andforestry

The Brazilian government should act towards supportingLULUCF projects by anymeans necessary using tools such as

ndash Elaboration and public dissemination of a map of areassuitable for LULUCF projects based on satellite imageanalysis Those areas must correspond to the forestationand aforestation criteria of the Kyoto Protocol (aforestationmdash no Kyoto forest land cover for last fifty years andreforestation activities mdash no Kyoto Forest since or before31st December 1989)

ndash Specific regulatory framework mandate to facilitate thesustainable timber use in LULUCF areas

ndash Quota system in the CDM projects approved in the countryby the DNA forcing the market to developed more LULUCFprojects rather than only energy focused ones

ndash Improvement of the technological base of the projects underdevelopment with strengthening the bounds betweengovernment agents scientific academia and local stake-holders associations in the development of the projects

ndash Establish a task force within the several stakeholders inpursuing a definition of a specific policy targeting CDMprojects in the area of Land use that would encompassfederal regulation to avoid project barriers to projects thatare in line with a suitable model of development

Acknowledgments

The authors would like to acknowledge the importance of thefunding provided by the European Commission within thescope of the OPET Latin America Program managed by theEESDWe would also like to thank the collaboration of all localstakeholders especially the interesting discussions with MrAlexandre B Strapasson from the MMA-Brazil and thededication of the entire project consortium

R E F E R E N C E S

CDM ndash Executive Board Guidelines for Completing CDM-AR-PDDCDM-AR-NMB and CDM-AR-NMM Version 02 page 1 2005

IE mdash Instituto Ecoloacutegica 1997 The Bananal Island CarbonSequestration Project Brazil Technical Proposal EcoloacutegicaPalmas

INPE ndash Instituto de Pesquisas Aeroespaciais Coordenaccedilatildeo Geral deObservaccedilatildeo da Terra-Relatoacuterio Anual 2004 Issue 11 ndash 31January 2004 INPE Brasiacutelia 2004 Available at httpwwwobtinpebrrelatorio_obt_2004pdf

May Peter H (Coord) and Boyd Emily Veiga Fernando ChangManyu Local Sustainable Development Effects of ForestCarbon Projects in Brazil and Bolivia a view from the fieldShell Foundation and IIED ndash International Institute for Envi-ronment and Development Rio de Janeiro October 2003Available at httpwwwiiedorg

MCT mdash Minister of Science and TechnologyGeneral Coordinationon Global Climate Change 2004 Brazils Initial NationalCommunication to the United Nations Framework Conventionon Climate Change MCT Brasilia Available at httpwwwmctgovbrclimainglescomunictextocomunachtm

MMA 2005 INFORMMA mdash Informativo do Ministeacuterio do MeioAmbiente (in Portuguese) MMA Brasiacutelia Special issues Proto-colo de Quioto 16 February

MME 2003 BEM mdash Balanccedilo Energetico Nacional (in Portuguese)Mines and Energy Minister Brasiacutelia Available at WWW MMEgovbr

NAE mdash Nuacutecleo de Assuntos Estrateacutegicos da Presidecircncia daRepuacuteblica 2005 Cadernos NAE ndeg 3 Brasiacutelia NAE Sec de Comde Governo e Gestatildeo Estrategica vols 1 and 2 February

Niles J Brown S Pretty J A Ball y J Fay 2001 Potential carbonmitigation and income in developing countries from changesin use andmanagement of agricultural and forest lands EssexUniversity of Essex Centre for Environment and SocietyOccasional Paper April 2001

Pearce David Putz Francis E Vanclay Jerome K 2003 Sustain-able forestry in the tropics panacea or folly Forest Ecology andManagement vol 172 pp 229ndash247

Rusnok David 2004 Where the conditions are right CarbonFinance issue 11 October 14ndash15

Salter Liam 2004 A Clean Energy Future The Role of the CDM inPromoting Renewable Energy in Developing Countries WWFInternational 11 pp Available at httpwwwpandaorgdownloadsclimate_changeliamsalterfullpapercorrectedpdf

Sample Ian 2004 Pressure points The Guardian ThursdayOctober 14

Swart Rob Robinson John Cohenc Stewart 2003 Climate changeand sustainable development expanding the options ClimatePolicy 3S1 S19ndashS40

WCED mdash World Commission on Environment and Development1987 Our Common Future University Press Oxford

UNEP Risoslash Centre 2005 CDM projects in the pipeline ElectronicFile downloaded from httpwwwcd4cdmorgPublicationsCDMPipelinexls at 14-11-2005

Yu Chang Man Yu Forestry Carbon Sequestration in Brazil mdash Socialeconomical and policy dimensions (in Portuguese) PhD thesisCuritiba UFPR January 2004


1 Introduction

When Climate Change was first discussed at theWorld Forum(WCED mdash World Commission on Environment and Develop-ment 1987) it was clear to all that although extremelyimportant the issue was poorly understood from a globalperspective and scale Today there is general consensusamong the scientific community that the phenomenon ofanthropogenic induced climate change is real and significantGlobal efforts now focus onmitigating and adapting to climatechange However there is no consensus as to the optimumstrategy for addressing climate change One of the mainanswers became in the form of the United Nations FrameworkConvention on Climate Change (UNFCCC) which was createdto support the reduction of global Green House Gas (GHG)emissions

This paper focuses on one of the three flexiblemechanismsestablished by the UNFCC to assist Annex I countries toachieve their GHG emission reduction obligations namely theClean Development Mechanism (CDM) Expressed simply theCDM enables Annex I countries to invest in climate mitigationprojects in non- Annex I countries and earn emissionreduction credits in the Annex I from where the project wasfunded and originated

The conceptual framework behind the CDM focuses onoptimising GHG emission reduction efforts through the mostcost-effective solutions where possible through the use ofldquobetterrdquo technologies and even through the creation of awholenew market in terms of CERs (Certified Emission Reductions)and or new technologies

The rules and regulations for CDM were established atannual meetings hosted by the United Nations called theConference of the Parties (COP) This process is on-going withmany issues remaining under discussion and debate Onekey issue that continues to be discussed by the signatories atthe COP meetings is the effectiveness of the CDM as a tool toaddress the sustainable development of small or communi-ties at local level As one first wave of initiatives the SmallScale CDM projects lacked the critical mass to support theburden of their fixed costs (even with the simplifiedmethodologies)

The second wave of most promising CDM projectsconsisted of those that focused on the transfer of appro-priated technology to developing countries However theseprojects have been experiencing difficulties due to theburden of proving their ldquoadditionalityrdquo as the UNFCCCitself had defined Non-Annex 1 countries typically lack thestate of the art technologies and necessary associatedinfrastructure to achieve major industrial growth over thelong-term that promotes sustainable development (Rusnok2004)

This paper focuses on Brazil as a non-Annex 1 countryattempting to highlight the problems and potential solu-tions that CDM attempts to deal with and can bring intothe climate change debate The analysis starts with anassessment of the current national emission profile andgoes further to explore the potential opportunities forCDM projects specifically concentrating on LULUCFpotentials

2 Results

21 Brazil GHG emissions profile

Since the beginning Brazil remains at the forefront of thedevelopment of the CDM framework in the UNFCCC where ithas been since the start of the process Brazil has adopted asignificant leading role among the developing countriespromoting the principle of common but differentiated respon-sibilities in the challenge of addressing climate change

In 1992 at the United Nations Conference on SustainableDevelopment hosted in Rio de Janeiro the government ofBrazil was the first national body to sign the Convention onClimate Change Further commitments to the Kyoto Protocolhave since been reinforced by the approval of the first CDMprojects in Brazil These are as a direct result of a determinedand conscientious effort from government private compa-nies academia and civil society The first national inventorywas published in Brazils ldquoInitial National Communicationrdquo tothe UNFCCC (Nov 2004) by the Science and TechnologyMinister (MCT mdash Minister of Science and TechnologyGeneralCoordination on Global Climate Change 2004) as part of theCDM commitments process

The national inventory summarizes the Brazilian govern-ments efforts towards promoting the implementation of CDMprojects and is a key reference on the topic The nationalinventory also acts as an official inventory of Brazils GHGemissions One important issue is that this inventory clearlyoutlines that the highest levels of GHG emissions are notassociated with the energy sector (unlike global normsespecially those experienced in Europe) rather with areasthat have not previously been addressed by the UNFCCCinitiatives the forestry and the agricultural sectors

The Brazil national inventory lists up to 15 million tonnesof CO2 equivalent (based on 1994 data compared to a CO2

equivalent non-official calculation) and the main sector thatcontributes to these emissions is not the energy sector as isseen in developed or Annex I countries rather the Land UseChange and Forestry sector mdash this information can be viewedgraphically in Fig 1

Upon more detailed review the breakdown of Brazilsemissions reveals an interesting profile 81 are not fromenergy related sectors rather due to agriculture (25) andLand Use Change and Forestry activities (56) Clearly this is avery different emission profile from that previously consid-ered in the CDM projects market standard national profile

LandUse Change and Forestry ismade up of four categories(MCT mdash Minister of Science and TechnologyGeneral Coordi-nation on Global Climate Change 2004)

a) change in forests and other woody biomass stocksb) forest conversion to other usesc) abandoned land management andd) CO2 emissions and CO2 removals from underground soil

Also highlighting the difference between Brazil and theother countries it has a strong renewables sector in thenations energy mix (see Fig 2) Unlike the majority ofcountries that are heavily dependent on fossil fuels in Brazil


Industry1

Solvent0

Agriculture25

Land Use Change and

Forestry56

Waste1

Energy17






Biomass27


42

Natural Gas8

Coal7

Uranium2


14









































Component Criteria






























2 wwwecologicaorgbr






















Mean rate gross def

0

5000

10000

15000

20000

25000

30000

35000

778

888

89

899

090

91

919

292

93

939

4

Def

lore

stat

ion

Rat

e[k

m2

year

]






61 North region



949

595

96

969

797

98

989

999

00

000

101

02

020

3

Year






62 Northeast region



7 Discussions
















8 Conclusions

















Acknowledgments


R E F E R E N C E S



















Industry1

Solvent0

Agriculture25

Land Use Change and

Forestry56

Waste1

Energy17






Biomass27


42

Natural Gas8

Coal7

Uranium2


14









































Component Criteria






























2 wwwecologicaorgbr






















Mean rate gross def

0

5000

10000

15000

20000

25000

30000

35000

778

888

89

899

090

91

919

292

93

939

4

Def

lore

stat

ion

Rat

e[k

m2

year

]






61 North region



949

595

96

969

797

98

989

999

00

000

101

02

020

3

Year






62 Northeast region



7 Discussions
















8 Conclusions

















Acknowledgments


R E F E R E N C E S

















































Component Criteria






























2 wwwecologicaorgbr






















Mean rate gross def

0

5000

10000

15000

20000

25000

30000

35000

778

888

89

899

090

91

919

292

93

939

4

Def

lore

stat

ion

Rat

e[k

m2

year

]






61 North region



949

595

96

969

797

98

989

999

00

000

101

02

020

3

Year






62 Northeast region



7 Discussions
















8 Conclusions

















Acknowledgments


R E F E R E N C E S




































2 wwwecologicaorgbr






















Mean rate gross def

0

5000

10000

15000

20000

25000

30000

35000

778

888

89

899

090

91

919

292

93

939

4

Def

lore

stat

ion

Rat

e[k

m2

year

]






61 North region



949

595

96

969

797

98

989

999

00

000

101

02

020

3

Year






62 Northeast region



7 Discussions
















8 Conclusions

















Acknowledgments


R E F E R E N C E S























Mean rate gross def

0

5000

10000

15000

20000

25000

30000

35000

778

888

89

899

090

91

919

292

93

939

4

Def

lore

stat

ion

Rat

e[k

m2

year

]






61 North region



949

595

96

969

797

98

989

999

00

000

101

02

020

3

Year






62 Northeast region



7 Discussions
















8 Conclusions

















Acknowledgments


R E F E R E N C E S






















62 Northeast region



7 Discussions
















8 Conclusions

















Acknowledgments


R E F E R E N C E S

























8 Conclusions

















Acknowledgments


R E F E R E N C E S


























Acknowledgments


R E F E R E N C E S


















Assessment of land use and land use change and forestry (LULUCF) as CDM projects in Brazil

Documents

Transcript of Assessment of land use and land use change and forestry (LULUCF) as CDM projects in Brazil