Demonstrating reduction of GHG emissions

from deforestation and forest degradation in

the Paraná Atlantic and Chaco-Pantanal
ecosystems
 Project aim
• Global need for:
– conservation of natural forests
– securing biodiversity and community
benefits
– reduction of GHG emissions

• A global mechanism for addressing

climate change is in place: REDD

Project aim: Field testing and

practical demonstration of REDD

Æ to open the way for its wider use

Æ To promote REDD as a practical
means of addressing climate change
 About Paraguay
Area (km2) 406.752
Languages Spanish and
Guaraní
Currency Guaraní
Population (July 08 est.)
6,831,306
Nominal Gross Domestic 13.424
Product – GDP (MM USD)
Capital Asunción
Economically Active 2.735.646
Population - EAP
Unemployment 11,1% of the
EAP

Three main ‘Eco-regions’

-Dry Chaco
-Humid Chaco
-Atlantic Forest
 Land tenure in Paraguay

• Large private estates dominate:

– For ranching, especially Chaco;
– For mechanised agriculture (soya), in the
Atlantic Forest region.
– By law, a minimum of 25% of all forest
must be conserved on large properties.

• Land redistributed to small-holders

under agrarian reform programme. No
legal requirement to conserve forest.

• Land is also granted to indigenous

people, for traditional activity with no
land-use restriction.

• Indigenous have constitutional right to

traditional use (primarily hunter-
gathering) of all lands in their historic
territory.
 Habitat destruction in Paraguay
• Deforestation

• Burning of land for cattle pasture

• Mining and other development

• Conversion to agriculture
(mechanised agriculture especially
soya in the Eastern Region)
 2 important areas under threat in Paraguay:

San Rafael (Atlantic Rainforest)

and the Chaco Pantanal
Chaco Pantanal
Project area
• Exceptionally High Conservation
value

• Important to indigenous people

• Highly threatened

San Rafael
 Climate change
•Prevention of climate change
now impossible

• Need to slow down and reverse

rise in atmospheric CO2

• Take action to buy global

community time
• Increased GHG
emissions are primary • Emissions reductions
driver of climate change

• Environmental and • Offsetting unavoidable

economical impacts emissions
now inevitable
• Offsetting, biodiversity
• Communities and protection and community
habitats under threat benefits go hand in hand
 Reduced Emissions from
Deforestation and Degradation
(REDD)
• Forests store carbon
as they grow

• Deforestation and
forest degradation
are 2nd most
important source of
global emissions

• Forest protection is a
relatively fast way to
reduce emissions
 REDD
• Measures for REDD as an
international initiative
discussed at COP 15

• How to implement REDD:

– Regulation of “Compliance
market”?
– Quantification of benefits?
– Implications for indigenous
communities?

• Paraguay is a pilot “quick

start” nation for REDD
 Voluntary REDD initiatives
• Existing market in:

• validated REDD projects using

Voluntary Carbon Standard
(VCS)

• validated REDD projects with

benefits for climate change,
biodiversity and communities
using Climate Community and
Biodiversity Alliance (CCBA)

• Voluntary policy commitments:

• Corporate Social Responsibility

• Ethical and good environmental
practices
 Project design for voluntary
offsetting
• Estimations of:
– Carbon pools
– Emissions sources
– Predicted land use changes
– Leakage

• Analysis of Baseline scenario (no project)

carbon stock changes

• Analysis of Project scenario (with project)

carbon stock changes

• Net GHG emissions reductions: difference

between baseline and project scenario
carbon stocks minus leakage
 Voluntary offsetting project
validation
REAL
MEASURABLE
• Voluntary Carbon PERMANENT
Standard: guidelines for Offsets are ADDITIONAL
creation and management of VERIFIED by ACCREDITED
Voluntary Carbon Units VALIDATOR
(VCUs). UNIQUE

• Minimize climate change

• Support sustainable
• Climate, Community and Projects development
Biodiversity Alliance:
• Conserve biodiversity

Following 14 criteria +
optional Gold criteria

Rainforest Alliance chosen as validator to certify the project for

satisfaction of VCS and CCBA criteria
 CSR and Carbon neutrality

• International shipping services

• Oil and gas exploration and production

• Fisheries protection

• Strong Corporate Social

Responsibility policy (CSR)

• Decision to become “carbon neutral”

• Energy efficiency programme

developed

• Residual 40,000 tCO2e p.a. to

offset
 Project origins

• SPO to offset their

emissions through REDD
using CSR budget

• WLT expertise in developing

voluntary offsetting projects
that ensure community and
biodiversity benefits

• Guyra Paraguay – WLT

local project partner expert
in conservation activities
and project implementation
in Paraguay
CSR Necessary forest protection: REDD mechanism :
Carbon neutrality biodiversity and communities addressing climate
change

Funding Project management Technical support

And implementation

PROJECT: Protection of sufficient forest demonstrably

threatened with clearance to prevent the emission of
800,000 tCO2e (VCUs) over a 20 year period.

Certified VCUs Benefits for

• Biodiversity CONSERVATION PROJECT
(1VCU=1 tCO2e)
• Communities MODEL FOR REPLICATION
for SPO carbon
• Climate and PROMOTION OF REDD
neutrality
 Project underlying principles
• Field testing and practical
demonstration of REDD

• Emissions reduction benefit of

high quality through VCS
validation

• Social, biodiversity and

environmental benefits ensured
through CCBA validation

• VCUs transferred to SPO

• Project design over 20 years

allows for expansion and
replication beyond project
lifetime
 Two components
• San Rafael – 1182 ha - La Amistad small-holder community

• The Chaco Pantanal – 12 000 ha – Alto Paraguay,

Municipality of Bahia Negra
 San Rafael- La Amistad
Project strategy and objectives
STRATEGY:

Project development in La Amistad campesino community with

potential for future expansion of project in San Rafael working with the
indigenous Guarani

Incentivise forest retention Safeguard biodiversity Generate sustainable funds

in La Amistad through a and generate social for conservation management
Payments for Ecosystem benefits in San Rafael
Services scheme

High cost and high risk rating for low VCU delivery but a positioning move
 San Rafael – location
• One of two most
important last relics of
Atlantic rainforest in
Paraguay

• Upper Parana Atlantic

Forest

• Intention of
establishment as a
National Park since 1992
 San Rafael - La Amistad – Project
Site
• 1182 ha strip of land

• Purchased under Agrarian

Reform, owned by INDERT
(National Institute of Rural and
Land Development)

• Reassigned to campesinos in
1997

• Dominated by moist semi-

evergreen primary forest
 1930
1990
1965---2004
1900 1940
1975

Loss of the
Atlantic
Forest B ra sil
Bra sil
B ra sil

Only 7% of 330 million

acres remaining Pa ra g ua y

Parag uay
Less than 2% under Pa ra g ua y

protected status

o o
ic ic
n t not
A r g e n t in a

l á ltái c
AArrggeennttin
inaa

A tl áAnt
no A n ot
é ac éoa
O céOa n
N

c
N

O
50 0 50 100 Km

50 050 500 100

50 100
Km Km
 San Rafael - Biodiversity
• One of last relics of the
Atlantic rainforest

• Exceptionally high HCVs

• Key Biodiversity Area

• First Important Bird Area in

Paraguay

• High levels of endemism

• Important site for threatened

and endemic Atlantic
rainforest birds and reptiles

• 11 endangered mammal
species
 Communities in San Rafael

• Private landowners
(conservation
managers, private
land-owners, agro-
businesses)

• Small-holder
campesinos: La
Amistad

• Indigenous Guarani
 La Amistad community
• Small-holder community
Guyra Paraguay Reserve – San Rafael
• Only campesino community in the
forest block

• Primarily occupied in subsistence

agriculture

• Small local market for cotton,

maize and sesame

• Most occupiers own some forest

land for construction
timber/firewood/game

• Poor crop yields/isolation

• Poor accessibility to water and La Amistad settlement

health facilities
 The Mbya Guarani

• Indigenous to San Rafael

• Traditional lifestyle:
subsistence agriculture
supplemented by hunting

• Basic material needs met by

the forest

• Forest loss is of cultural

concern
San Rafael – Land-use changes
San Rafael:
- Agricultural expansion for
soya on Eastern side
- Small-holder settlements on
Southern and Western flank
- Deforestation and forest
degradation

La Amistad:
- Conversion of primary
forest for agriculture –
329 ha between 1997-2009
 La Amistad – Carbon Stocks
• Above and below-ground
woody biomass, necromass,
leaf litter and soils

• Estimated using data and

growth increments for San
Rafael from Parra et al,
2004, Leiva, 2009, Leiva &
Silva 2008

• 1997-2009: Estimated net

emission of 286,000 tCO2
(i.e. 23,800 tCO2e p.a.)
 Baseline (no project) scenario
• Most likely: campesino land invasion
throughout San Rafael

• Carbon emissions over next 20 years

assuming historical clearance rates
continue:

– Estimated emissions of 240,000

tCO2e for La Amistad (standing
forest would be cleared within 10
years)
– Estimated emissions of 7.1 million
tCO2e for San Rafael

• High threat for biodiversity and

ecosystem services through habitat
loss, fragmentation and degradation

• Continued social conflict in San

Rafael
Project activities: First operational
PES scheme in Paraguay
• Competitive revenue for community as an
alternative to cotton (US$ 170/ha/yr )

• 25% of revenue stream directly to the

community

• Land to remain forested to become

permanent high quality forest community
reserve

• Reforestation and natural regeneration

included (leakage mitigation activity- US$
65/ha/yr -Afforestation, Reforestation,
Revegetation – ARR, not REDD)

• Community members involved in

monitoring and measuring carbon benefits
and ensuring resource protection/leakage
mitigation

• Extension officer to organise training

 Project activities: Sustainable
resource management and Trust
Fund
• Expert advice:
– To enhance productivity from
agriculture and other
enterprises
– For sustainable community
forest management planning

• Trust fund:
ensuring reliable funding beyond
the project life for replication of
project design in San Rafael
Benefits – With project scenario

• Climate benefits: 219,100 tCO2e (197,190 tCO2

net of the 10% risk buffer), through forest retention
within 10 years

• Biodiversity: Safeguarding of HCVs, improved

conservation management in San Rafael as a whole

• Community: Revenue streams, training and technical

support, improved access to clean water supply, food
security and confidence in sustainable management
practises

True benefits : potential expansion to actions in the

main San Rafael forest block
 San Rafael project activities and
outcomes:
Net GHG emissions
PES scheme for forest retention reductions: 219,100 tCO2e
within 10 years

Support for sustainable community Biodiversity benefits

forest management initiative
Community benefits
Trust fund
Climate benefits

MODEL FOR REPLICATION: 20-year project life

to consolidate conservation management regime
in San Rafael, with full participation of all
stakeholders
Chaco Pantanal - Project strategy
and objectives
STRATEGY

Project development in 12000 hectares of forest in the Chaco

Pantanal with potential for future expansion of project in the Chaco
working with the indigenous Ayoreo and Ishir

Secure 12000 ha of Safeguard biodiversity Generate sustainable funds

forested land threatened and generate social for conservation management
with clearance to sequester
carbon benefits in the Chaco as a whole

A positioning move for expansion of project into the Chaco

 Chaco Pantanal –Location and
Project site
• Unique variety of wildlife and one Project site
of the last areas of wilderness in
the world

• Mosaic of vegetation types:

– Xerophytic semideciduous
woodland.
– Transitional mesoxerophytic
woodland.
– Quebracho forests closer to Rio
Paraguay
– Non forest vegetation

• 12,000 ha of forested land within

Chaco Biosphere Reserve

• Transition zone between the dry

forests of the Chaco and Pantanal
 Chaco Pantanal - Biodiversity
• Three major ecoregions transition
zone

• Extremely high biodiversity with

High Conservation Values

• Exceptionally high values in Bahia

Negra

• High levels of endemism

 Communities in the Chaco
Pantanal
• Lowest population density in
Paraguay

• No paved roads and low levels

of access to basic services

• Ranchers (larger land

holders+ staff)

• Bahia Negra (only

settlement)

• Ayoreo (Indigenous of dry

Chaco)

• Ishir (indigenous of the

periphery of Rio Paraguay)
 Indigenous communities: Ayoreo

• Indigenous of dry Chaco

• Small number in voluntary isolation

• Use of a part of the reference area

• Around 2000 living in Paraguay

largely in poverty

• Recovery of territory and cultural

heritage are strong issues

• Land transactions without

reference to their interests are of
serious concern
 Indigenous communities: Ishir

• Indigenous of the periphery of

Rio Paraguay

• In the reference area: population

of around 1400

• Small-holder farming, fishing,

hunting, artisanal goods

• Traditional use of natural

woodland and access is a deep-
felt cultural need

• Guyra Paraguay already have

positive relations with the Ishir
 Chaco Pantanal – land use
changes
• Rising beef pricesÆ recently
extensive clearance and shift to
the North East (project area)

• 6.4 million ha into the agricultural

domain in the 1991-2008 period

• At times, the rate of loss has

reached 1000 ha/day

• Project area contains important

development area for ranching
(water availability)
 Chaco Pantanal – carbon stocks
• Data from three studies FAO
permanent plot array, Vera,
2007, Lauterer 2004.

• Estimated emissions of c. 80
million tCO2e due to
deforestation of xerophytic
formations in ref area
between 2002 and 2009

• Clearance in same period in

Quebracho forests very low:
emissions of the order of
68,000 tCO2e
Chaco Pantanal - Baseline scenario
• Most likely: continuing rise in beef and land
prices + infrastructure

• Clearance of available land completed by

2025

• Carbon emissions: conservative estimate of

emissions of 1, 060,000 tCO2e

• Fragmentation of one of the last great areas

of wilderness in South america
Æloss of ecological integrity and invasion by
exotic species

• Short term economic benefits for

Paraguayan economy but unequal
distribution of benefits and long term
negative effects

• Loss of ancestral territories of cultural

significance to the Ayoreo and the Ishir
 Chaco Pantanal: Project activities
• Land transaction

– Identification of project site

– Dedication of the area to

conservation management as
private protected area

– Ownership passed to Guyra

Paraguay (GP) and Ishir
community of Bahia Negra

– Agreement of co-management
between Ishir and GP
maintaining forest cover and
quality

– After 20 years: area passed to

IshirÆ community managed
reserve
 Chaco Pantanal: Project activities
• Community benefits

– Regular income stream to the Ishir

on land for improving quality of life

– Capacity building for conservation

management by the Ishir

– Permanent staff member for site

management and training

– An operational budget

• Trust fund
To underpin the management of the
protected areas covered by the SEAM-
GP-WLT tripartite agreement
 Benefits – With project scenario
• Climate benefits: sequestration of 885,500 tCO2e through retention
of forest

• Biodiversity: Safeguarding of HVCs, securing of an important

conservation target (Quebracho forests) inadequately represented in
the protected area network in the Chaco

• Community: Reliable revenue stream, regained control of ancestral

territory, maintenance of cultural identity, capacity building in
conservation management and economic opportunities

• Increased communication with indigenous communities

Extended project benefits achieved in potential

expansion to rest of the Chaco, multiplying benefits
for climate, biodiversity and communities
Chaco Pantanal project activities
and outcomes:
Securing of 12 000 ha of Net GHG emissions
Quebracho forest reductions: 885,500
tCO2e over 20 years
Revenue stream for Ishir community
Biodiversity benefits

Capacity building for Ishir Community benefits

Trust fund Climate benefits

REDD demonstration and MODEL FOR REPLICATION :

20-year project life to consolidate conservation
management regime in the Chaco with full participation
of all stakeholders
 Leakage

• Leakage occurs if the

project shifts the
problem to a different
site

• Leakage is handled
by discounting
carbon benefits
accordingly
 Risks and mitigation: La Amistad
• Overall low risk
Risks Mitigation

Unclear land title •Community and INDERT consultation

Dispute potential •Community participation in estimating

•Leakage deductions leakage deductions
•Reticence to participate •Voluntary uptake of project should rise
as community confidence grows in time

Climate change impacts possible •Monitoring programme

from 2030 •Adjustment of VCU delivery
calculations

Land invasion in San Rafael •Threat reduced by project

implementation in La Amistad
•No effect of VCU delivery in La Amistad
 Risks and mitigation: Chaco
Pantanal
• Overall low risk
Risks Mitigation

Conservation management •20 years capacity building during

capacity of Ishir community project
•initial responsibility for land
management is given to the
riparian area- important to them
•Final transfer conditional on Ishir
having developed conservation
management capability
Government appropriation •No means of eliminating this risk
•Support of project by SEAM
• Principle of private property and
Government appropriation entails
adequate compensation
Overall Conclusions and outcomes
• 1.03 million tCO2e sequestered
at a total cost of US$5.8 million

• Significant contribution to
biodiversity conservation in two
areas of recognised global
importance

• Enhanced in country expertise and

experience of REDD

• Contribute to the objectives of

indigenous peoples

• Offer a means of securing long-

term financing to ensure
permanence of these benefits
(Trust fund)
Overall conclusions and outcomes
• A demonstration of the
potential of REDD to combine a
wide spread of interests to the
common good:
– corporate responsibility
– climate change
– biodiversity conservation
– improved economic conditions in
the rural milieu
– promotion of indigenous interests

• A flexible framework for:

– adaptation to the post-
Copenhagen policy environment
– Replication through voluntary
schemes regardless of
international debate