Training for Conducting Carbon Balance Appraisals of AFOLU projects and policies FAO-CCAFS International Workshop Reducing the costs of GHG estimates in Agriculture 12 November 2014 EX-ACT TEAM: LOUIS BOCKEL, MARTIAL BERNOUX, UWE GREWER, LAURE SOPHIE SCHIETTECATTE, ECONOMICS OF SUSTAINABLE AGRICULTURE SYSTEMS (ESAS) I. Agenda and Objectives ECONOMICS OF SUSTAINABLE AGRICULTURE SYSTEMS (ESAS) AGRICULTURAL DEVELOPMENT ECONOMICS DIVISION (ESA) Training Objectives By the end of the training, participants will have used the EX-ACT tool and will be able to: • Explain the concept of a carbon balance • Apply the EX-ACT tool for a simple application • Analyze and utilize EX-ACT results The EX-Ante Carbon balance Tool www.fao.org/tc/exact What is EX-ACT? An Excel-based calculator, used to: • Quantify the amount of GHG released or sequestered from agricultural activities • Assist in identifying practices with beneficial impacts The EX-Ante Carbon balance Tool www.fao.org/tc/exact Role of EX-ACT team • Technical development of the EX-ACT tool • Conduct GHG appraisals and economic analysis of development projects & agricultural policies • Disseminate and provide training on the EX-ACT tool in the context of Climate-Smart Agriculture The EX-Ante Carbon balance Tool www.fao.org/tc/exact Training Overview 9.00-10.30 • Opening (15 mn) • Presentation of EX-Act Carbon balance Tool and some applications (35 mn) • Hands-on application of EX-ACT (40 mn) o Entering data in EX-ACT o Practical exercise: Forest reserve in Brazil o Practical exercise: Indonesia Palm oil plantation The EX-Ante Carbon balance Tool www.fao.org/tc/exact II. World Bank and IFI’s: Towards a harmonized approach to project level GHG accounting ECONOMICS OF SUSTAINABLE AGRICULTURE SYSTEMS (ESAS) AGRICULTURAL DEVELOPMENT ECONOMICS DIVISION (ESA) International Financial Institution Framework for a Harmonised Approach to GHG Accounting • IFI engaged o World Bank (WB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), Agence Française de développement (AfD), … • Screening o IFIs shall screen each proposed direct investment project for likely significant GHG emissions. o IFIs will undertake GHG accounting for all direct investments consistent with the screening criteria. • Methodology o IFIs shall undertake the GHG accounting of a project based on established methodologies for ex-ante GHG accounting The EX-Ante Carbon balance Tool www.fao.org/tc/exact Harmonised Approach to GHG Accounting • Net emissions compared to baseline scenario o Reference scenario may be either a “without project” scenario or an “alternative scenario” • Reporting o At a minimum, each IFI shall report annually on the aggregate net GHG emissions for screened mitigation projects, estimated to arise from the previous year’s approved or signed investments The EX-Ante Carbon balance Tool www.fao.org/tc/exact III. Climate change, GHG Appraisal and Climate-Smart Agriculture (CSA) ECONOMICS OF SUSTAINABLE AGRICULTURE SYSTEMS (ESAS) AGRICULTURAL DEVELOPMENT ECONOMICS DIVISION (ESA) AGRICULTURE’S CONTRIBUTION TO GHG EMISSIONS CLIMATE CHANGE AND AGRICULTURE: MAIN CONCEPTS AND IMPACTS Main mitigation options 70 % of agriculture mitigation potential In developing countries Mitigation possible through changes in agricultural technologies and management practices CO2 CH4, N2O  rate of deforestation and forest degradation,  adoption of improved cropland management practices (reduced tillage, integrated nutrient and water management) RESOURCE USE EFFICIENCY improved animal production and management of livestock waste, more efficient management of irrigation water on rice paddies, improved nutrient management 1 ha of avoided 1 ha plantation, deforestation degraded land to tropical from tropical rain forest to rain plantation degraded lands EX-Ante Carbon balance Tool -42,7 tThe eq-CO -18,8 t eq-CO2/ha/year 2/ha/year www.fao.org/tc/exact 1 ha grasslands from severely degraded to improved grasslands -1,7 à -3,8 t eqCO2/ha/year Sequestering carbon conservation farming practices, improved forest management practices, afforestation and reforestation, agro-forestry, improved grasslands management, restoration of degraded land 1 ha from degraded land to annual crops -1,2 t eqCO2/ha/year Concepts: Mitigation & Adaptation Mitigation I attack the problem Adaptation Strategies can and should be implemented jointly I act in response to the impacts of the problem Risk management Decrease GHG sources Decrease sources Increase sinks of GHG The EX-Ante Carbon balance Tool EX-ACT Training, World Bank 2014 www.fao.org/tc/exact Increase sinks Strenghtening institutions Trainings Investments in rural economy Main differences between adaptation and mitigation Mitigation Causes of climate change Objectives Effects of climate change Global Longer-term effect Especially motivated with countries less vulnerable to CC Time scale Equity Shorter-term effect Especially focussed on vulnerable countries Spatial scale Local Adaptation  Same final common target: Sustainable development The EX-Ante Carbon balance Tool EX-ACT Training, World Bank 2014 www.fao.org/tc/exact Links between Adaptation and Mitigation Agriculture Adaptation Targets Double target activities Agriculture Mitigation Targets L&W conservation measures Enriched carbon in soils Adequate irrigation Reduced CH4 emissions Land use management rehabilitated land in watersheds Diversify rural income and strengthen economic resilience PES to farmers Reduced deforestation and slash and burn practices Increase protection against disaster (Disaster risk The EX-Ante Carbon balance Tool www.fao.org/tc/exact management, insurance) Community oriented public works reforested areas improved pasture management Cropping systems resilient to drought and water stress Reduce flood recurrence and improve resilience to natural disasters CSA among other concepts of `green‘ agriculture From farm-based to comprehensive development concepts Macro Climate smart agriculture Agroecology Sustainable land management Organic farming Conservation agriculture Micro Farming technics Value chain The EX-Ante Carbon balance Tool EX-ACT Training, World Bank 2014 www.fao.org/tc/exact Area - based management Multi-function planning and policies EX-ACT TEAM: LOUIS BOCKEL (FAO): [email protected] MARTIAL BERNOUX (IRD): [email protected] UWE GREWER (FAO): [email protected] WWW.FAO.ORG/TC/EXACT EMAIL: [email protected] CLIMATE CHANGE AND AGRICULTURE: MAIN CONCEPTS AND IMPACTS