greening the kenya tea industry and the road to durban ... the kenya tea industry and ......

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  • Greening the Kenya Tea Industry and

    the Road to Durban - COP 17

  • 1 1

    Background of KTDA and tea production in Kenya

    Currently KTDA is the largest tea management agency in the world

    managing 65 tea factories in the smallholder tea sub-sector in Kenya - and

    controlling 60% of the Ksh 100 billion annual tea industry budget

    Tea industry growth in Kenya:

    - Tea introduced to Kenya in Limuru in 1903.

    - Commercial farming started in 1924.

    - Smallholder tea cultivation started in 1950s.

    - First small holder tea factory established in Nyeri in 1957 (Ragati TF).

    - Special Crops Development Authority established in 1960.

    - KTDA (Authority) was formed in 1964 as a Government parastatal to

    foster development of tea among smallholders tea growers in Kenya.

  • 2 2

    World tea production in 2010

    China

    33.7%

    India

    23.8%

    Kenya

    9.8%

    Sri lanka

    8.1%

    Vietnam

    3.9%

    Turkey

    3.6%

    Indonesia

    3.2%

    Others

    2.4%

    Japan

    2.3%

    Argentina

    2.5%

    Bagladesh

    1.5%

    Malawi

    1.3%Uganda

    1.4%

    Tanzania

    0.8%

    Rwanda

    0.5% Myanmar

    0.5% Iran

    0.4%

    Taiwan

    0.4%

  • 3 3

    Percentage expenditure of the Ksh 60 billion annual budget Note: Around Ksh 3 billion spend annually on both furnace and electricity

    2011

    75%

    2%

    4%

    1%

    1%

    2%

    4%

    2%

    4%

    1%

    2%

    2% labour

    furnace

    electricity

    fuel

    Leaf coll

    Packing

    Admin

    Mgt fees

    Financial

    Depreciation

    Selling exps

    G/Leaf paymt

  • 4 4

    Percentage world tea exports in 2010

    Others

    1%Other Africa

    7%

    Argentina

    6%

    Malawi

    3%

    Kenya

    25%

    Indonesia

    5%

    Vietnam

    6%

    Other Asia

    1%

    China

    18%

    Sri Lanka

    20%

    India

    11%

    India

    Sri Lanka

    China

    Indonesia

    Vietnam

    Other Asia

    Kenya

    Malawi

    Other Africa

    Argentina

    Others

  • 5 5

    Kenya tea export destinations - 2010

    INDIA

    1%

    YEMEN

    3%

    POLAND

    1%

    IRELAND

    1%

    IRAN

    1%

    DJIBOUTI

    1%

    KAZAKHSTAN

    3%

    U.A.E

    4%RUSSIA

    4%SUDAN

    5%

    OTHERS

    5%

    PAKISTAN

    22%

    EGYPT

    21%

    UK

    14%

    AFGHANISTAN

    14%

  • 6 6

    Grid power and carbon emissions Note - more than 3yrs old

    0.94 0.91 0.91

    0.87 0.83 0.81

    0.78

    0.57 0.56 0.53 0.51

    0.47 0.47

    0.35 0.34

    0.26

    0.21

    0.09 0.07 0.06 0.01 0.01 0 0 0

    Grid Emission Factors (kgCO2/kWh, tCO2/MWh)

  • 7 7

    How carbon projects generates carbon credits

    Gre

    en

    ho

    use g

    as e

    mis

    sio

    ns

    Historical Trend

    Project start

    Carbon credits (CERs)

    represent the difference

    between the baseline and

    actual emissions

    Time

  • 8 8

    Potential carbon projects

    Wind power Solar Run-of-river hydro Transport

    Forestry Landfill

    Sewage / wastewater

    Agro-forestry

  • 9

    9

    Carbon project eligible GHGs

    Green House Gas Global Warming Potential

    Carbon Dioxide (CO2)

    1

    Methane (CH4)

    21

    Nitrous Oxide (N2O)

    310

    Perfluorocarbons (PFCs)

    9,200

    Hydrofluorocarbons (HFCs)

    11,700

    Sulphur Hexafluoride (SF6)

    23,900

  • 10 10

    The role of the Clean Development Mechanism (CDM)

    Developed

    countries can

    reduce emissions

    anywhere in the

    world

    They can count

    these reductions

    towards their own

    targets

    CDM allows

    developed countries

    to generate carbon

    credits (Certified

    Emission

    Reductions, CERs)

    in developing

    countries

    Advantages for developed

    countries:

    relatively low-cost &

    politically acceptable

    Advantages for developing

    countries:

    inward investment,

    environmental & technology

    benefits

  • 11 11

    CDM projects out look - Africa is struggling

    4 countries (China, India, Brazil and South

    Korea) account for 70% of CDM projects and

    80% of CERs through to 2012

    Sub-Saharan Africa accounts for 2% of

    registered projects and 5% of CERs through

    to 2012

    88 non-Annex 1 countries have yet to benefit

    from any registered CDM project activity

  • 12 12

    What in Conference of Parties (COP)?

    Internationally, the global response to climate change is guided

    by the United Nations Framework Convention on Climate Change

    (UNFCCC) through the COP framework. COP meetings are held

    every year (...around Dec). The last was held in Cancun, Mexico.

    This year, the meeting will be held D

    Kenyas aspiration in the COP framework is to engage in the

    UNFCCC process with a view of securing a binding, multi-lateral

    international agreement that is, Inclusive, fair and effective - with

    a view of balancing priority between adaptation and mitigation

    responses; with an appropriate development - climate response

    balance recognizing development needs of developing countries

  • 13 13

    Thank You!