Climate Mitigation and Carbon Finance: Global Initiavities & Challenges

by A K Sahoo

ISBN: 9789351244332
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Imprint : NIPA
Year : 2021
Price : Rs. 5320.00
Biblio : 190 pages,23cm

Author Profile

A.K. Sahoo: Assistant Professor, College of Forestry and CCPI, NAIP on Carbon Finance, Directorate of Research, Orissa University of Agriculture & Technology, Bhubaneswar-751 003 (Orissa)

About The Book

The Clean Development Mechanism (CDM), a framework created by the Kyoto Protocol, was an attempt to link the carbon market and sustainable development objectives in developing countries. Consequently, sequestered carbon is now a globally traded commodity with a huge potential to provide economic returns to land manager. Unlike traditional development models based on deferred and diffused benefit streams, the new carbon-market model offers an opportunity to directly link land management and natural resource conservation with specific and immediate market incentives. Analysis shows that carbon markets can serve a catalytic function in stimulating increased tree planting and improved forest management, thus helping to realize the multiple benefits of forestry and agro-forestry systems. In recent years opportunities for participation in carbon credit trading markets have been growing. The Chicago Climate Exchange (CCX) now boasts more than six million trades per month. A recent summary of the “State and Trends of the Carbon Market 2006” prepared for the World Bank’s BioCarbon Fund, reports a rapid increase in corporate participation in the carbon market. This book focuses on the concept of CDM and other forestry based Carbon finance mechanisms introduced by UNFCCC and its impact on carbon markets. It also presents a brief analysis of the growth of carbon market in India, its present status and prospects in future. It provides a detailed account of Afforestation and Reforestation CDM Projects including the A/R Project Designed Document by UNFCCC in a simplified yet compact manner for better understanding of the procedure as a reference guide.

Table of Contents

"Foreword Preface Acronyms and Abbreviations I. CDM Afforestation and Reforestation Project 1.1 Policy Background 1.2 The Kyoto Protocol 1.3 Clean Development Mechanism (CDM) 1.3.1 Afforestation and Reforestation Projects under the CDM 1.3.2 Relevant Afforestation and Reforestation Activities under the CDM 1.3.3 CDM Afforestation and Reforestation Project Rules and Conditions 1.3.3.1 Approachfor addressing non-permanence 1.3.3.2 Leakage 1.3.3.3 Baseline 1.3.3.4 Additionality 1.3.3.5 Land eligibility 1.3.4 Definition of Forest 1.3.5 Added Value to Projects II. A Sequential Approach to Develop CDM Afforestation and Reforestation Project 2.1 Overview of the CDM Project Cycle 2.2 Critical Steps for Project Approval 2.3 Project Design and Development 2.3.1 Steps in Identification and Preparation of the Project Project Idea Step 1 Goals of Project Activity Step 2 Project Idea Note (PIN) or Project Proposal Project Development Step 3 Project Financing Sources Step 4 Project Management Structure Step 5 Local, Regional and National Requirements for Project Development Step 6 “Letter of No Objection” from the Designated National Authority Step 7 Appropriate Methodology Step 8 Project Location Step 9 Designated Operational Entity (DOE) Preparation of Project Design Document Step 10 tCERs or lCERs Step 11 Project Duration Step 12 Project Boundary Step 13 Additionality Tool Step 14 Land Eligibility Tool Step 15 Baseline Assessment and Estimation of Carbon Sequestration Step 16 Leakage Mitigation Plan Step 17 Environmental And Socio-economic Impacts Analysis and Stakeholder Consultations Step 18 Risk and Plan Mitigation Analysis Step 19 Tree-Planting Plan Step 20 Project Design Document Preparation Step 21 Contract with Designated Operational Entity Step 22 Letter of Approval from Designated National Authority of Host Country Step 23 Project Implementation 2.4 Validation, Registration and Certification 2.4.1 Validation and Registration 2.4.2 Verification and Certification III. The Global Carbon Market and Financing of Afforestation/Reforestation Projects 3.1 Overview of the Global Carbon Market in Pre-Kyoto Protocol Phase 3.2 Kyoto Protocol and the Flexible Mechanisms 3.3 Non-Kyoto Protocol Markets 3.4 Markets Status for Afforestation/Reforestation CDM Activities 3.4.1 Background 3.4.2 Current Market Status for LULUCF Credits 3.5 Financing Afforestation/Reforestation CDM Projects 3.5.1 Costs to CDM Projects 3.5.2 Buyers Objectives 3.5.3 Form of Payment 3.5.4 Current Buyers 3.5.5 Funding for Project Development 3.6 Risks and Uncertainties 3.6.1 Risks to Project Developer 3.6.2 Risks to CER Purchaser 3.6.3 Risk Mitigation Mechanisms IV. India’s Response to the Carbon Market : Policy and Challenges 4.1 Status and Trends 4.2 Response Analysis 4.3 Carbon Market Barriers in India : Policy and Challenges 4.3.1 Uncertainty in the Second Commitment Period of the Kyoto Protocol 4.3.2 Lack of Concerted Strategy 4.3.3 Lack of Methodologies 4.3.4 Lack of Incentives to Reduce Emissions in the Public Sector 4.3.5 Lack of Aggregation for SMEs 4.3.6 Relative Absence of Financial Sector 4.3.7 Lack of Price Transparency 4.3.8 Lack of Designated Operational Entities (DOEs) 4.3.9 Lack of Capacity V. Conclusion Annexure Project Design Document (PDD) Format for CDM A/R Project activities References Index"