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Reports of New Mechanisms Feasibility Studies: FY2011

Title of Feasibility Study (FS)New Mechanism Feasibility Study for REDD+ in Acre State, Brazil
FYFY 2011
Main Implementing EntityMarubeni Corporation
FS PartnersAcre state government, ITTO, Funbio (Brazilian Biodiversity Fund), Ludovino Lopes, Hdom, Cargill International SA, ERM Japan Ltd,
Location of Project ActivityBrazil
Category of Project ActivityREDD+
Summary of FS ReportPDF (1.1MB)
Description of Project/ ActivityWe aim to reduce CO2 emissions through REDD+ by working together with our counterparts in Acre, Brazil such as the Acre state government, ITTO (International Tropical Timber Organization), local NGOs and research institutes. Specifically, we will build a mechanism of economic incentives for conducting countermeasures to deforestation and forest degradation by distributing funds including those transferred via carbon emission credits from developed countries among stakeholders in developing countries. Under this mechanism, we aim to reduce CO2 emissions through the so-called REDD+ activities such as forest fire countermeasures, illegal logging prevention through forest security, community livelihood improvement, sustainable forest management, and reforestation. As for setting a reference scenario in REDD+, according to the Acre state government's targets for reducing deforestation, we are assuming a reduction of 164 million tons in CO2 emissions during the 15-year period from 2005 to 2020, although these are only reference figures and a further review will be needed in future. On a project level, we are assuming a reduction of CO2 emissions in the order of hundreds of thousands to millions of tons per year, although this will also depend on the target area.
Reference Scenario and Project/ Activity BoundarySurrounding the project site, we have designated 4.48 million hectors as our reference area where the past deforestation rates and vegetation distributions are similar. We have also designated leakage management areas next to the project area. In the leakage management area, we will conduct active monitoring as well as take preventative measures to minimize the leakage. These management will be conducted in the around the high population areas and regions with road and river accesses.
Monitoring Methods and PlanThe state of Acre's UCEGEO will provide necessary satellite images and data for monitoring on annual basis. Permanent plots will be established where allometric methodologies are employed. These data will construct changes the carbon stock.
GHG Emissions and ReductionsMaximum GHG reductions will be around 2.0 million tCO2e per year and on an average 1.7 million tCO2e per year during the 30 year period. Without REDD+ activities we estimate that there are about 3.0 million tCO2e of emissions annually under reference scenario.
MRV System for GHG ReductionsMRV will be conducted on internationally accepted standards, such as ISO14062-2. Following principals will be adhered; relevance, completeness, consistency, accuracy, transparency and conservativeness. Independent and reputable body will audit and verify the data and reports.
Analysis of Environmental, Socioeconomic and other Impacts (including Securement of Environmental Integrity)- Potential forest logging in other regions including leakage
- Potentially changing natural forests to single forests or artificial forests with a small number of species
Financial PlanningThe currently assumed initial investment amount until PDD design and project validation is between about 0.6 and 1.0 million dollars. We assume that setting up REDD+ projects as business investment schemes is usually difficult from a business profitability perspective, and so we will make a further analysis of the situation regarding local land ownership and concessions before also considering a REDD+ project setup scheme with the cooperation of public institutions and private land owners. Moreover, because REDD+ projects have a high level of uncertainty including system risk which makes borrowing difficult, we envisage equity investments or loans.
Introduction of Japanese TechnologyAcre state government hopes to review the satellite technology and data supply of the Japanese-run "Daichi" advanced land observing satellite (ALOS). A proposal should be made to utilize ALOS 2, the successor to Daichi, due for launch in the future. There is also a need for a data utilization method.
(i.e. Improvement of Local Environmental Problems)
The co-benefits of the REDD+ projects include the improvement of the lifestyles of local residents due to credit income and protection of biodiversity by forest preservation.
Contribution to Sustainable Development in Host CountryREDD+ projects directly support the National Policies of Amazon Deforestation set out in December, 2008 by the Brazilian federal government. It can also contribute to the national strategy on biodiversity. Furthermore, it contributes to SISA and, by increasing the income of local residents and encouraging the transition to sustainable economic development, contributes to increasing their standard of living.

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