Involving the market

ProClimate

ProClimate – 10 Dec 20-13

Current situation:Commercial agriculture started after WOII, after 70 years it has resulted in: •Strong growth in world food output•Expansion of (small holder ) agriculture towards fragile ecosystem hotspots•20-25% of agricultural land in state of degradation•Agriculture causes 30% of global GHG emissions, of which 50% caused by deforestation/land conversion/land degradation)

Future: Increasing population to 9 billion in 2050More demand for food cropsAnnual global growth in demand of 1,5-2%

ProClimate – 10 Dec 20-13

Coffee and cocoa agro-forestry -> part of the solution?

Coffee: Originate from forest areas, Arabica coffee Ethiopian highlands, Robusta coffee Uganda forest regions,

Cocoa: Originate Amazon basin, from there has been taken to rain forest areas.

Both “trees” combine well with shade trees as this is there natural habitat.

But farm establishment and production expansion has caused land conversion (deforestation) globally and production is under pressure in many regions:

climate reality: coffee

ProClimate – 10 Dec 20-13

Coffee and cocoa regions are under pressure?

Present yourself to your neighbour and in case you have been to producer regions or deal with farmers/suppliers in your work please share your observations, what is happening in producer regions:

where ?what have you observed?•yields ?•farm management?•water resources?•income levels?•feedback from farmers?•landscape changes?

ProClimate – 10 Dec 20-13

Coffee and cocoa regions are suffering from Climate Change and farming systems need to adapt, Proclimate identified three levels:

Farm level: Climate adaptation / Climate Smart Agriculture Landscape level: Restoring degraded land (reforestation / agro-forestry)Regional level: Reduce pressure on bio-diversity hotspots

These interventions have an adaptation and GHG mitigation effect: •Carbon stored in soils (mulching/compost/green cover)•Carbon stored in trees (below and above ground)•Less GHG emissions better use of fertilizers, farm residue recycling

ProClimate – 10 Dec 20-13

Coffee and cocoa Climate Adaptation and GHG mitigation are part of :

1. Voluntary standards: C4 Climate add-onRFA Climate Friendly moduleUTZ Climate Care

2. Carbon projects:Afforestation Reforestation projectsAgro-forestry projectsClimate Smart Agriculture projects (in development)

3. LCA/footprint approach:Assessment of a product from cradle to grave -> carbon, water

Proclimate portfolio

Proclimate mainly used the carbon project approach because:

•Long term projects (20 years)•Value creation for farmers•Carbon markets (GHG mitigation) used as financing mechanism•Carbon sold within (insetting) or outside value chain•Mitigation finances adaptation, productivity improvement, resilience, reduce cost of production

The Cost-Benefit – 3 stages

Our current activities

Central Peru:

Introduction of shade trees in small holder cocoa plantations

Carbon cerification

Kenya:

Landscape level: Introduction of shade trees in small holder coffee plantations

Carbon certification unsure

Uganda:

Introduction of shade trees in small holder coffee plantations

8 million trees, 20.000 cookstoves

Indonesia:

Feasibility for farm level: Farm renovation with 5.000 small holder coffee producers

Nicaragua:Landscape level: small holder reforestation and agro-forestry (cocoa)200 Ha, 96 farmersCarbon certification

Tanzania:

Landscape level: Reducing GHG emissions from coffee production

Initial 15.000 producers 7500 Ha

Northern Peru:

Landscape level: Farmer community reforestation224 Ha10 communitiesCarbon cerification

Northern Peru:

Farm level: Rice to cocoa conversion250 Ha150 farmers

Carbon project CSA

Central Peru:

Farm level: Introduction of shade trees in small holder coffee plantations

Carbon certification

Proclimate project Kenya

Multiple partners, producer coops, trader, NGO’s.

The GiiNii app

Key lessons from ProClimate

The business case for farm renovation/landscape restoration is there, but:

Local technical partner needed

Compliance with carbon certification in smallholder systems challenging

Restoration takes time – Bridge funding / patience needed

Long-term commitment from trader, roaster, bank needed

Carbon market highly dynamic

Carbon is a hard sell to a broad audience

Businesses see the value to restore their origins but is not there main focus

Challenges for the future

In the case you discussed with your neighbour how would a farm renovation landscape restoration program look like, would it fit within:

1) Voluntary standards? • the 4C climate module, • RFA climate friendly code, • UTZ Climate Care

2) Carbon project approach? 3) LCA/Footprint assessment and GHG reduction strategy?

Questions are: Who are your partners?What would be the time frame, costs/benefits?What is in it for whom? What is the scale, how many farmers, Ha etc?How will you be able to “sell” it, within the company, outside the company? What concrete steps can you take and what do you need?