NGO
Another Way (Stichting Bakens
Verzet), 1018 AM
01. E-course : Diploma in Integrated Development (Dip. Int.Dev.)
Edition
01: 15 January, 2011
Edition
05 : 03 March, 2011
Study points
: 05 points out of 18
Minimum study
time : 125 hours out of 504
The study
points are awarded upon passing the consolidated exam for
Section C : The Model.
[Study points 03 out of
18]
[Minimum study time: 85 hours
out of 504]
The study
points are awarded upon passing the consolidated exam for
Section C : The Model.
Sect. 5 : Kyoto Treaty : Analysis
of possibilities for finance. (Additional)
03. Potential areas of application of CDM
mechanisms to integrated development projects.
04. Small-scale CDM activities.
06. Selection of the CDM methodologies
for the applications listed in section 03.
08. Notes specific to the role of bamboo in afforestation and reforestation (AR)
projects.
09. CDM funding indications for
the selected applications and methodologies.
SECTION 10. GRAPHS AND CONCLUSIONS.
“A key
feature of a green economy is that it seeks to provide diverse opportunities
for economic development and poverty alleviation without liquidating or eroding
a country’s natural assets. This is particularly necessary in low-income countries, where ecosystem goods and services are
a large component of the livelihoods of poor rural communities and ecosystems
and their services provide a safety net against natural disasters and economic shocks. ” .” (Towards a Green Economy : Pathways to Sustainable Development and Poverty –
A Synthesis for Policy Makers, United Nations Environment Programme (UNEP, www.unep.org/greeneconomy,
March 2011, p. 17).
The initial
financial requirements of respectively Euro 3.750.000 (non-pastoralist areas)
and Euro 5.600.000 (pastoralist areas) must be deposited up-front to cover
project execution over the two-year period foreseen for that purpose. This
initial capital can be reimbursed over the following years through funds
provided by the sale of certified emission reduction (CER)
units issued under the Clean Development Mechanism (CDM)
system set up under the Kyoto Protocol.
This is
possible through the application of batches of small-scale Clean Development
Mechanisms (CDM) methodologies common to all
individual integrated development projects and based on Programmes of
Activities (PoA) organised in two layers.
The
first level Programme of Activities (PoA) is the mother
PoA. For the integrated development of, say, West
Africa (excluding
The
second level comprises a batch of 13 Programmes of Activities (PoAs) each using a specific CDM
methodology. Each of the 2500 individual integrated projects may choose to
apply any one, any combination, or all of the 13 second level PoAs in accordance with the local requirements there. For
instance, one project area may apply methodology AR AMS-003, Version 1 for the reforestation of wetlands, another may
choose to apply AR-AMS-0005 (Version 2, 8 April 2009)
in an area with low inherent potential to support living biomass, while a third
project area with both wet and very dry areas may choose to apply both
methodologies.
There
are two main sectors for
intervention under the CDM mechanism. The
first one is CDM funding through reduction of CO2
emissions in project areas through the use of improved cooking stoves, more
efficient lighting systems and switches from non-renewable biomass to renewable
biomass and similar. The second one is CDM funding
through increase of CO2 sinks through various afforestation
and reforestation projects.
A
preliminary analysis shows that the potential total average gross CDM income over 50 years for each integrated development
project could be about Euro 28.000.000 (gross). This is a cautious
non-scientific initial approximation. It is subject to the deduction of
at least 10% to cover administration and validation costs. It is expressed in
present day Euros and based on CO2/tonne values on 14th November
2009 (about € 14 per tonne CO2). It is, therefore, not discounted over 10-20
year periods according to traditional cost-benefit calculation practices. It
assumes annual validation by the CDM Designated
Operational Entity (DOE), while various CDM
methodologies currently prescribe different validation periods. It also assumes
enough water and labour is available to start the various afforestation/reforestation
projects more or less contemporaneously. If this is not so, they may need to be
phased.
A first
level (mother) PoA with 2.500 applications
representing 2.500 individual integrated development project areas (125.000.000
people) could generate up to € 70.000.000.000 of (gross) CDM
funding. This would eliminate poverty in the areas concerned and surpass all of
the millennium development goals there except those relating to vaccinations
and curative medicines.
Click
here to see a general overview of expected gross CDM income
for each Programme of
Activity (Total
per project area about € 28.000.000).
Click
here to view a general graph showing annual
distribution of expected gross CDM income for each
individual integrated development project area .
(Total per project area about € 28.000.000).
The
graph is intended to show that, whatever happens and however the calculations are
made, each individual integrated development project can repay its initial capital cost investments
over just a few years of operation.
The
first lot of gross CDM income, which is attributable to
the second year of activities, is about Euro 550.000. This could mature for
sale of CER units at the end of the third year. The second lot of
gross CDM
income, which is attributable to the third year of activities, is about Euro
1.150.000. This could mature for sale of CER units at
the end of the fourth year. The third lot of gross CDM
income, which is attributable to the fourth year of activities, is about Euro
1.600.000. This could mature for payment at the end of the fifth year. The
fourth instalment of gross CDM income, which is
attributable to the fifth year of activities, is +/- Euro 1.600.000. This could
mature for payment at the end of the sixth year. The fifth instalment of gross CDM income, which is attributable to the sixth year of
activities, is Euro 1.300.000 which would mature for payment at the end of the
seventh year. … and so on. Only
application 02 (afforesttion/reforestation of natural
reserves) and 03 (settlements, afforestation/reforestation first part) extend beyond 21
years. Application 06, Mangroves for
wetlands, would extend for 30 years but is not included in the indicative
baseline calculation.
Indicative
incomes are gross of DOE validation and administration costs. An allowance of
at least 15% should therefore be made to cover these costs. So the net figures
from the preceding paragraph are:
Total
expected net CDM income per project Euro 24.00.000
Expected
net CDM income relative to the first project
year € 0.
Expected
net CDM income relative to second year +/- € 450.000
Expected
net CDM income relative to third year +/-
€
950.000
Expected
net CDM income relative to fourth year +/- € 1.350.000.
Expected
net CDM income relative to fifth year +/- € 1.400.000.
Expected
net CDM income relative to sixth year
+/-
€ 1.100.000.
These
indicative CDM incomes are subject to substantial
change where, because of limitations in water supply and/or labour, activities
have to be phased in. In that case the general total does not change, but the
rate of repayment would be lower and the repayment spread over a longer period.
Not all
of the potential CDM funding capacity has been
absorbed. It has been assumed that more projects will use application 07 AR-AMS-0005 (Version 2, 8 April 2009) for very dry areas with Jatropha,
than application AR AMS-003, Version 1 for wetlands with mangroves,
which give a much higher CDM return. Use of methodology
AMS-III-R for methane
recovery has been rated at zero until advice on the energy applications it
could replace is received. The use of methodology AMS-III-AJ
for the recycling of plastics and other materials has been rated at zero until
information on the quantities of materials typically available for recycling is
received. This aspect is discussed in
more detail in section 01. Introduction.
How rapidly the initial capital input of
integrated development projects is repaid is a political issue. A
sub-regional project owner such as the UEMOA may make
a call on 100% of CDM funds as they come in, or may
accept for example of repayment of 50%, allowing the remaining 50% to be
distributed amongst the populations in the project areas or any other
combination of the two. Partial distribution of funds to the populations
provide them encouragement and a great stimulus. Rapid re-entry of funds on the
other hand provides revolving finance for new integrated development projects
and more rapid execution of all projects included in the regional development
plan in question.
Subject
to the above comments, expected net CDM incomes
projects in non-pastoralist areas with an initial capital input of Euro
3.750.000 would in principle enable repayment of the initial capital input fully repaid during the sixth year of activities, on the basis
of CDM income from the first five years. In
non-pastoralist areas with an initial capital input of Euro 5.600.000 the
initial capital input could in principle be fully repaid at the end of the eighth year of activities, on
the basis of CDM income from the first seven years.
Once
the initial capital for a given integrated development project has been repaid,
all remaining CDM income is paid from time to time to
the project’s Cooperative for the On-going Administration of the Project
Structures (of which all adults in the project area are members) and either
equally distributed amongst the members or used to cover extensions to project
structures.
The
full amount of the initial
project capital necessary for the execution of each integrated
development project must
always be paid up front.
The
proposed programme of CDM applications provides many
major benefits to the local populations as well as funds to pay for their
integrated development projects. Food safety is greatly increased through the
supply of fruit and nuts and hedgerows for protecting crops in semi-arid and
arid areas. The bamboo plantations provide food in the form of bamboo shoots,
material for uncountable productive activities, and biomass for the production
of mini-briquettes for cooking purposes. Moringa
trees provide “spinach leaves” for food, edible oils for cooking, and moringa paste for water purification purposes. The Jatropha produces limited amounts of bio-fuel to drive local
generators and equipment. All CDM activities improve
the quality of the environment and maintain bio-diversity. All these benefits
are all in addition to those already listed in the report on costs and benefits
which is part of the Model for Integrated Development Projects.
Graphs:
Graphs
showing details of the expected gross CDM income
application by application for the second year of
operation, the third year of
operation, the fourth year of
operation, the fifth year of operation,
the sixth year of operation, the seventh year of operation, the eighth year of operation and the ninth year of operation. Similar
graphs for other years can be supplied on request.
Graphs
showing expected gross CDM income year by year for
application 01. CO2 savings through the reduced use of
non-renewable biomass for cooking purposes through the introduction
of improved stoves (methodology AMS-II-G.(Version
2)), application 02. Demonstration project for the recovery of forest
lands and natural parks and reserves using traditional species
(methodology AR-AMS-0004 version 2, 11 June, 2009 ) ; application
03 Afforestation activities in settlements as
defined for the distributed planting of fruit trees and nut trees and similar, ( Methodology AR-AMS-0002 (version 2, 17 October 2008);
application 04. Small-scale agro-forestry activities – such as
distributed bamboo plantations on grasslands and croplands
(Methodology AR-AMS-0001); application 05 Small-scale agro-forestry activities – distributed
demonstration plantations for practical purposes for local use, including but
not limited to Moringa plantations on
marginal lands (Methodology AR-AMS-0004 , version 2, 11 June, 2009);application 06. Demonstration afforestation
and/or reforestation (AR) projects on wetlands using
traditional species (Methodology AR AMS-003, Version 1),application 07
Demonstration afforestation and/or
reforestation projects using Jatropha on
lands having low inherent potential to support living biomass (Methodology AR-AMS-0005 (Version 2, 8 April 2009), application 08. Use of renewable biomass instead of non-renewable
biomass with improved cook stoves (Methodology AMS 1.E Small-scale Switch from non-renewable biomass
for thermal applications by the user), application 09, Recycling of human waste to avoid the
use of industrial fertilisers (No currently available methodology); application
10 : Methane recovery from animal waste for cooking and lighting purposes
especially in pastoralist areas (Methodology AMS-III-R
); application 11. Replacement of kerosene
lamps, incandescent light bulbs, and of the use of throw-away
batteries by renewable energy sources (wind, solar and/or renewable bio-mass
including but not limited to plant oil, gasification of biomass (Methodology AMS-III-AR); application
12. Replacement
of non-renewable electrical, diesel- and battery-driven sources for mechanical equipment such as pumps and mills and, where
applicable, pubic lighting systems (methodology AMS-I-A); and 13. Local recycling
and recovery of materials from solid wastes, including but not limited to
plastics (methodology AMS-III-AJ.)
Table 1
shows the plan of Mother PoA and sub-PoAs. For the development of
Table 1 : The two Programme of Activities (PoA) levels.
Year of operation |
Sub-PoA |
01 |
02 |
03 |
04 |
05 |
06 |
07 |
08 |
09 |
10 |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
21 |
22 |
Mother PoA |
01.
CO2 savings reduced use of non-renewable biomass for cooking purposes through
the introduction of improved stoves. AMS-II-G.(Version 2) (50 years) |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
02.
Demonstration projects for the recovery of forest lands and natural parks and
reserves. AR-AMS-0004
, version 2. (50 years) |
|
|
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
|
03.
Afforestation activities in settlements as
defined Distributed planting of fruit
and nut trees and similar. AR-AMS-0002 (version 2) |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
|
04.
Small-scale agro-forestry activities – such as distributed bamboo plantations
on grasslands and croplands. AR-AMS-0001 |
|
x |
x |
x |
x |
x |
x |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
05
Small-scale agro-forestry activities – distributed demonstration Moringa plantations on marginal lands, AR-AMS-0004 , version 2. |
|
x |
x |
x |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06.
Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species. AR AMS-003, Version 1. (30 years) |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
|
07 Demonstration Jatropha
projects on lands having low inherent potential to support living
biomass. AR-AMS-0005 (Version 2, 8 April 2009) |
|
x |
x |
x |
x |
x |
x |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08.
Use of renewable biomass instead of non-renewable biomass with improved cook
stoves. AMS 1.E . |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
|
09.
Recycling of human waste to avoid the use of industrial fertilisers
. No existing methodology available. |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
|
10.
Methane recovery from animal waste for cooking and lighting purposes
especially in pastoralist areas. AMS-III-R (Reserve pending applications) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.
Replacement of kerosene lamps etc (wind, solar and/or renewable bio-mass
including plant oil, gasification of biomass). Methodology AMS-III-AR |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
|
12.
Replacement of non-renewable electrical, diesel- and battery-driven sources
for mechanical equipment AMS-I-A |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
|
13. Local recycling and recovery
of materials from solid wastes, including but not limited to plastics. AMS-III-AJ.
(Reserve pending applications) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exam Block 8 : [4 hours]
Consolidated exam :
Section C. [6 hours].
◄ Eighth block : Section. 5 : Kyoto Treaty : Analysis
of possibilities for finance.
◄ Eighth block : Economic Aspects.
◄ Main index for the Diploma
in Integrated Development (Dip. Int. Dev.)
"Money is not the key that opens the gates of the market but the
bolt that bars them."
Gesell, Silvio, The Natural Economic Order,
revised English edition, Peter Owen,
“Poverty is created scarcity”
Wahu Kaara,
point 8 of the Global Call to Action Against Poverty, 58th annual
NGO Conference, United Nations,
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