Opportunities for Carbon trading from rubber plantations
Dr N Yogaratnam
Combating global climate change had a long journey, beginning from
1979 when the first World Climate Conference took place and the last one
at Durban in South Africa in November/ December 2011.
Durban Accord: ‘will curb all big emitters’
The package of accords extends the Kyoto Protocol, agrees on the
format of a fund to help poor countries tackle climate change and maps
out a path to a legally binding agreement on emissions reductions
CLIMATE negotiators agreed on a pact yesterday that would for the
first time force all the biggest polluters to take action on greenhouse
gas emissions, but critics said it was not aggressive enough to slow
global warming.
The package of accords in Durban at the COP-17 talks extends the
Kyoto Protocol, the only global pact that enforces carbon cuts; agrees
on the format of a fund to help poor countries tackle climate change;
and maps out a path to a legally binding agreement on emissions
reductions.
But many developing countries at risk of being swamped by rising
ocean levels and extreme weather said the deal marked the lowest common
denominator possible and lacked the ambition needed to ensure their
survival.
Delegates agreed to start work next year on a new, legally binding
treaty to cut greenhouse gases, to be decided by 2015 and to come into
force by 2020.
The process for doing so, called the Durban Platform for Enhanced
Action, would “develop a new protocol, another legal instrument or
agreed outcome with legal force”, applicable under the United Nations
(UN) climate convention.
That phrasing, agreed upon at a last-ditch huddle between the
European Union, India, China and the US, was used by all parties to
claim victory. UK Energy and Climate Secretary Chris Huhne said the
result was “a great success for European diplomacy”.
But UN climate chief Christiana Figueres acknowledged that the final
wording on the legal form of a future deal was ambiguous: “What that
means has yet to be decided.”
“Polluters won, people lost,” Greenpeace International executive
director Kumi Naidoo said.
However, Canada has announced that it is formally withdrawing from
the Kyoto accord on climate change. “The Kyoto Protocol does not
represent the path forward for Canada,” Kent, the Canadian Environment
minister told a news conference in the foyer of the House of Commons,
after his return from an international climate-change summit in Durban,
South Africa.
“It’s now clear that Kyoto is not the path forward for a global
solution to climate change. If anything, it’s an impediment.“We are
invoking Canada’s legal right to formally withdraw from Kyoto.”
Background
For over a decade, evidence has been growing that accumulation of
green house gases in the upper atmosphere is leading to changes in
climate, particularly in temperature. The average global surface
temperature increased by 0.6 ± 0.2 0C over the 20th century and is
projected to rise by 0.3 – 2.5 0C in the next 50 years and 1.4 – 5.8 0C
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.
Kyoto protocol
Under the Kyoto protocol of the United Nations Framework convention
on climate change, signatory countries must decrease emissions of carbon
dioxide 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 CDM 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.
Pilot Project
The project should focus on the CDM potential resulting from the
possible introduction of new processes, technologies and practices that
may result in additional reductions in greenhouse gases (GHG) in the
rubber commodity sector, such as recent genetic engineering developments
that promise more wood and latex in rubber trees. Since rubber trees are
grown over long periods of time (20-30 years) as managed forests, the
possibility of sequestering more carbon resulting from new genetic
technology and forestry practices, for example, is at the onset a
possibility worth exploring. The effect would be greater carbon
sequestration in existing managed forests.
The introduction of bagasse energy technologies in some early CDM
pilot projects in the sugar sector also points to other possibilities
that may also exist in the rubber sector. Since, rubber production
involves relatively inefficient use of large amounts of energy in its
production, from the use of firewood in smallholdings to coal-fired
energy plants in large plantations, energy-efficient technology can be
applied.
The combination of both CDM possibilities - rubber plantations as
carbon sinks and the introduction of more energy-efficient technology in
rubber production - may present some innovative means of reducing the
high transaction costs of CDM projects. The project should investigate
both perspectives as well as the legal and institutional issues and
barriers relevant to the eligibility of potential CDM projects in the
rubber sector.
Given the continued decline in real prices of rubber in the world
market, it is worth exploring if CDM can be an additional incentive for
investment in the rubber sector. CDM investment projects have great
potential to promote sustainable development in the volatile rubber
sector.
Rubber based cropping systems
Rubber based agroforestry involve 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 carbondioxide 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.
Carbon trading
Malaysian estimates indicates that mean annual leaf litter fall for a
mature Hevea rubber ecosystem which included falling branches, twigs 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. 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.
Institutional arrangement
The C market system appears to provide ample opportunities for buyers
and sellers of C stock as a profit earning business but 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 government’s 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.
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 minimize risks
and costs, create efficiencies and promote participation.
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.
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