Rubber plantations offer opportunities for carbon trading business
Dr. N. YOGARATNAM, Consultant/ National Institute of
Plantation Management
For over a decade, evidence has been growing that accumulation of
green house gasses in the upper atmosphere is leading to changes in
climate, particularly in temperature.
Average global surface temperature increased by 0.6 +/- 0.2 degrees C
over the 20th centaury and is projected to rise by 0.3 - 2.5 degrees C
in the next 50 years and 1.4 - 5.8 degrees C in the next century.
Global warming changes the earth’s atmospheric circulation and is
linked to changes in patterns of precipitation and the frequency and
intensity of extreme climate events. The economic and ecological
consequences of global warming will vary by region, but in the tropics,
it will likely to threaten production of crops and may even become a
major cause of species extinction.
Decrease emissions
Under the Kyoto protocol of the United Nations Framework convention
on climate change, signatory countries must decrease emissions of CO2 to
the atmosphere, or increase rates of removal and storage.
The Protocol’s Clean Development Mechanism (CDM) allows a country
that emits C above agreed-upon limits to purchase C offsets from an
entity that uses biological means to absorb or reduce greenhouse
emissions.
The CDM is currently offered for afforestation and reforestation
projects, but it is expected that in the future it will be extended to C
sequestration in agricultural soils. Markets for soil and plant C
sequestration are also developing outside of the protocol in addition to
those promoted by CDM.
The interest in C sequestration and trading as mechanism for both
environmental protection and poverty alleviation in developing countries
has increased considerably in the last decade.
It is anticipated that the Clean Development Mechanism offered by
Kyoto Protocol could result in enhanced productivity and income as well
as local conservation of natural resources in the developing world. This
is of relevance to Sri Lanka.
Under a C trading arrangement, natural resource users who adopt and /
or reintroduce land management technologies that store additional C in
soils and vegetation compared to existing practices would be eligible to
receive payments for the C those practices sequester. Two types of
payments are anticipated namely payments for C capture and C Storage.
Rubber based agroforestry involves complex and diversified cropping
system that combines the growing of rubber and other agricultural crops
in one area.
A desirable rubber based cropping system would give a good economic
yield while protecting the environment, conserving soil, water and
nutrients.
Perennial tree crops as in the case of forest trees, are known to
function as natural “ Sponges” for absorbing corbondioxide from the
atmosphere. Carbon sequestration is achieved through the uptake of
carbondioxide from the atmosphere and its conversion into cellulose and
organic matter.
The rubber tree Heva brasiliensis was first introduced as a crop for
plantation agriculture several years ago from the wilderness of the
Amazon Jungles. Hence, one can expect Hevea to behave as a typical
tropical rain forest tree that would at least function as efficient as
forest trees in C sequestration.
Moreover, technological practices that are known slow down soil C
oxidation and increase C fixation and storage are also being adopted in
rubber plantations. Such strategies include improved soil and water
conservation practices such as leguminous cover cropping, application of
organic manure, mulching, inter-cropping etc., which are known to have
helped in the increased enrichment of soil organic C by about 30 to 50%
from about 1.9% C to 2.39% C in the lower depth of soils and to 2.9 C%
in the top soil.
Carbon accumulation within the mature Hevea ecosystem in the early
years of maturity comprises mainly the carbon locked up within the
mature tree through increase in dry matter accumulation, from within the
interrow leguminous cover system and associated litter, decomposing
Hevea leaf litter and branch material arising from self pruning and in
shed reproductive parts including mature seed and fruit components and
within the fertile top soil region.
Annual leaf fall which includes falling branches twigs and fruit is
estimated to be around 3.7 to 7.7 ton/ha.
Malaysian estimates indicates that mean annual leaf litter fall for a
mature Hevea rubber ecosystem which included falling branches, twiges
and fruits to be around 3.7 to 7.7 ton/ha.
Some preliminary studies done in Sri Lanka on biomass accumulation
and carbon sequestration in rubber plantations from year 1 to year 33
when the trees are due for uprooting, indicates that total biomass
accumulated in a tree at the age of 33 years is 1.8 mt which amounts is
963 Mt per hectare. This value is made up of biomass accumulated in
fruits, leaves and fallen branches and trees uprooted at the end of the
trees economic life span of 33 years.
The amount of Carbon sequestered in one hectare of a 33 year old
stand is 596 Mt, the major portion coming from the trunks and branches.
The total amount of carbon sequestered in one hectare of rubber
plantation made up of tree biomass, latex produced and contribution from
leguminous cover crops amount to 680 MT.
The possible credit revenue entitlement per hectare at the end of 33
years at the rate of U$ 12 per MT is about U$ 8160 which is
approximately equivalent to one million Sri Lankan rupees.
Consideration of additional soil C sequestration in the same land
will provide additional financial benefits.
These indicate that the economic potential for soil and plant Carbon
sequestration and trading in rubber plantation appears to be vast and
justifies further exploration.
Institutional arrangement
Although technologies are available for the determination of carbon
sequestration in soils and plant samples, development of more simpler,
rapid and cost effective systems for both the technical potential to
store soil organic carbon (SOC) and the economic returns to growers who
adopt practices that sequester carbon in soils and rubber plants would
be an impetus for rubber growers to consider carbon trading business.
The C market system although appears to provide ample opportunities
for buyers and sellers of C stock as a profit earning business, in
practice however, C markets are very complex because they presuppose the
existence and integration of many conditions at multiple levels.
Prerequisites include the technical capacity to enhance C storage in
crop production systems, the capacity for rubber growers and other
resource users to collectively adopt and maintain land resource
practices that sequester C, the ability for dealers or brokers to
monitor C stocks at the field level, the institutional capacity to
aggregate C credits at levels large enough for dealers to consider worth
while and the financial mechanisms for incentive payment to reach
growers.
Hence, while C payments may contribute to increasing grower incomes
and promoting productivity enhancement practices, they may also expose
resource users to additional tension and risks.
Given its reliance on complex global agreements, contractual
commitments and possibly subsidy programmes, C trading will not be able
to function without governments firm backing. State’s support will be
instrumental in funding technology development and transfer, providing
extension services, offering subsidies and incentives, regulating
certification processes etc.
Because technical economic and institutional conditions are not yet
in place to make C sequestration as a successful business venture, it is
more practical for resource limited rubber industry to pursue C
sequestration initially as “ long-term pilot projects” in partnership
with global carbon trading professionals / ventures.
Ultimately, it will be the synergy of land management practices,
measuring and monitoring methods, scaling up procedures and
institutional mechanism that will generate and deliver a “marketable
product”.
Therefore, more applied research and practical experience are needed
to better understand the uncertainties entailed in C sequestration and
trading and to devise approaches that minimise risks and costs, create
efficiencies and promote participation. |