Kenya Smallholder Agriculture Carbon Finance Project

Amos Wekesa

amos.wekesa@viafp.org

Outline

• Project description: Size, location and ER Value

• Methodology: Sustainable Agriculture Land Management

• Monitoring plan

• Conclusion

Where and How do we work?

Background

Land degradation The organic matter content of many soils in East Africa has been depleted

Institutionalization: Project Participants

• Project proponent: Vi agro forestry

• Project developer: Unique Forestry Consultants Ltd.

• Technical advisors:JOANNEUM RESEARCH

• Finance : World Bank, sida and self

• Stakeholders: MOA, KARI, ICRAF, KEFRI, CBOs etc

Public policy

• Voluntary Carbon Standard rules

– Validation and Approvals of methodology

• World bank safeguard policies

– ERPA

– Environmental and social protection

• National government policies

– Project approvals

– Secured land tenure and carbon rights

Project purpose

• Advisory/extension services

• Restoring agricultural production, adopting farm enterprise approach and reducing climate change vulnerability– Target cropland management

– Livestock management

– High carbon sequestration Agro forestry options that increase food or incomes as well

0%

5%

10%

15%

20%

25%

30%

35%

Practice of no tillage

Removal of Residues

Use of crop residues for direct mulching

Burning of residues

Distribute raw manure to the field

Composted manure to the field

Use of cover crops

Terracing of fields

Water harvesting structures

Adoption of SALM practices Kitale

Current practice Future adoption

Matthias Seebauer 2010

Project Area: Piloted in Western Kenya

Western Kenya smallholder agriculture carbon project

• Key project features:

• Western Kenya, with 6 Divisions 3 each in Kisumu and Kitale (project region: 116,000ha, adoption area: 45,000ha, with 60,000 farmers)

• Project developer: SCC – VI (Swedish Cooperative Centre – Viagroforestry)

• Project roll out plan: 9 years

• Average ex-ante estimated SOC sequestration rate: 1.37 tCO2 /ha/yr

• Total estimated emission reductions over 20 years (2009 – 2029) is about 1.2 million

• Transactable VCUs about 618,000 (considering 60 % leakage and non-permanence buffer)

• Assumed transaction value (US$4/tCO2): US$2.48 m

• Status of the project:

• Methodology submitted to VCS

• ERPA signed

• Implementation activities started in 2009

Methodology

• Methodology is called: Adoption of sustainable agricultural land management (SALM)

• To be approved by Voluntary Carbon Standard

• The methodology is aimed to estimate and monitor greenhouse gas emissions of project activities that reduce emissions in agriculture by applying sustainable land management practices (SALM)

• Carbon pools – Above ground

– Below ground

– Soil organic carbon

Transaction costs

Planned Cost Amount (U$)

Preparation 50, 000

Establishment 50, 000

Operation 1, 026, 000

Others 172, 000

Total 1046,000

Carbon payments and co-benefits totals projects values and benefits

BioCarbon fund (WB)

Unique Forestry

programme office

Project office

-PM

- DPM

Field Operation

-Head unit

-M & E

Zone 1

- Zone coordinator

Environment Climate

change

-Head

-Energy & SLM/seed

Administration-Head

- accountant

-Casher & HR

Field staffs per

location

Farmer Enterprise

Development

-Head unit

- finance coord. &

-- capacity Building

Organizational structure

- 28 field staffs

- 6 zonal coordinators

- 6 financial field staffs

How are we implementing? SIDA/VI Planterar/LVB/Farmers

ICRAF

CAMCO

KARI, Local Gk AND MOA

KEFRI/Kenya Seed/Moi Uni

NEMA

Participatory extension

Provision

Agricultural mitigation potential in Kenya

: Commodity

Smallholder

Mixed

cropping

system

Maize

Bio

fuels

Coffee Tea

Sugar

Land (m ha) 3 1.6 0.9 0.15 0.15 0.15

GHG

mitigation

activities

SALM:

Agronomy

Nutrient mgmt

Water mgmt

Agroforestry

Set aside land

Residue

mgmt

Jatropha

/Croton

1) Fuel

switch

2) AR

1) Shade

trees,

multiple

cropping

2)

Mulching

3)

Fertilizer

use

efficiency

Inter

cropping

no option

in Kenya

Inter-

1) No/

burning

of

residues

2)

Mulching

systems

3)

Fertilizer

related

emissions

Existing

Extension

services

0 0 0 + ++ +

Tech. GHG

mitigation

potential in t

CO e/ha/y.

CO2

2 – 5 0.5 1 – 12

2.5 –

5.0

3 – 8 ----- 7.8 in 3

years

14 in 10

years

20 in 20

years

Economic

mitigation

potential

++ ? ? ++ 0 +

Emissions and Removals in Agricultural Land Management

Emissions Removals CO2

�Biomass removal �Land clearing

�Tree cutting

�Soils �Fossil fuel use

Carbon

Sequestration

�Trees

�Improved soil management

CH4

�Manure

�Biomass burning �Fossil fuel use

N2O

�Manure �Fertilizer use

�N-fixing species

�Biomass burning �Fossil fuel use

SALM technology SALM sub-category Adaptation

potential

Mitigation potential Sited literature

Agronomic practices Improved crop varieties, Cover

crops and green manure,

Multiple cropping, crop

rotations, intercropping

High yields 0.51-1.45 tCO2-eq/ha/yr Follet 2001; Barthés et al 2004 and Freibauer et

al 2004 ;

Nutrient management Mulching, Improved fallow,

Manure management,

Composting, Improving fertilizer

use efficiency

Soil fertility

improved

0.02-1.42 tCO2-eq/ha/yr Also reduced N2O Willey et al. 2007;

ICRAF 2003;

Paustian et al. 2004; Pattey et al. 2005 ;

Smith et al 2007 and IPCC 2007;

Tillage and Residue

Management

Reduced tillage, Residue

management

Soil protected -0.44-1.89 tCO2-eq/ha/yr Willey et al. 2007

Smith et al. 2008

Water management Water harvesting structures,

Terracing

Soil protected -0.55-2.82 tCO2-eq/ha/yr Follet 2001, Lal 2004a ; Monteny et al. 2006

Agro forestry Woodlots, boundary, Dispersed

interplanting, fruit orchards

Wood products,

soil protected

-0.44-1.89 tCO2-eq/ha/yr CIFOR 2000, Sampson and Scholes 2000

Roshetko et al. 2008, Gou & Gifford 2002, Paul

et al. 2003 ; Oelbermann et al. 2004; Mutuo et al.

2005; Montagnini et al. 2004

Restoration and

rehabilitation of Degraded

Land

Set-aside land Soil restored and

protected

1.17-9.51 tCO2-eq/ha/yr Follet 2001, Ogle et al. 2004, Falloon et al. 2004,

Lal 2004a ; Scholes et al. 1996

Livestock management Improving pasture and fodder

Quality Upgrading

Food and income,

soil protected

0.0002-0.01 tCO2-eq/ha/yr

(for East Africa)

Leng 1991, McGrabb et al. 1998, Alcock &

Hegarty 2005; Boadi et al. 2004; Rice &

Owensby 2001, Liebig et al. 2005

Sustainable agricultural land management activities

Roll out and carbon creditting potential

1.4 Tons of CO2/ha

0.75Hectares/farmer

www.v-c.org/methodology_salm.html

Monitoring

Monitoring method Activities monitored

Activity Based monitoring Agriculture practices Production (yields)

Cover crops

Residues

Manure

Fertilizer use Amount of fertilizer applied

Biomass burning Amount of residues burnt

Fossil fuel use Litters/kgs of petrol/diesel/gas

used

Soil organic carbon Model long-term Δ of soil

organic carbon

Trees Measure Δ tree biomass

Livelihood monitoring Livelihood status of a farmer Type of shelter

Water supply

Savings

Food sufficiency

Family Education levels

Social farm structure

Income and expenses

Environmental and social

management monitoring

Pesticides IPM activities

Farmer Group monitoring Group contracts and payments Recording all group activities

and grievances

Activity & Productivity Monitoring Survey

Project

Year 1 Year 2 Year 3 Year 4 Year 5 Year 10 Year 15 Year 20

?

?

Carbon sequestration

10% Re-sampling

Uncertainty analysis

Input

Input

Project region

Mo

nit

ori

ng

Bas

elin

e a

sses

smen

t

Soil Carbon Model (RothC, Century, etc)

VerificationModel

outputs

Baseline

IPCC Tier 1 data

Research data

?

?

?

?

?

?? ?

10% Re-sampling

Methodology: Activity Baseline and carbon monitoring approach

Soil Organic Carbon Component

• Roth C model

to be used to Model long-term Δ soil

organic carbon

– Clay content, weather

– plant residues, manure, soil cover

Linking ABMS data to Google earth maps

Implementation status

• Methodology submitted to Voluntary Carbon Standard, validation ongoing: www.v-c-s.org/methodology_salm.html

• Project validation as soon as methodology approved

• ERPA signature was done in Hague 5th November 2010

• SALM practices disseminated and adopted by 18,800 farmers, i.e. role out plan for 2009 - 2010 implemented covering 16,000 ha

SALM practicesImproved fallow

conclusion

• The project aims to improve staple food production and providing advisory services to farmers

• Combined benefits: carbon assets and co-benefits

Thanks